TRISTATE CAPITAL HOLDINGS, INC., 10-Q filed on 11/5/2021
Quarterly Report
v3.21.2
Cover Page - shares
 9 Months Ended
Sep. 30, 2021
Oct. 31, 2021
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2021  
Document Transition Report false  
Entity File Number 001-35913  
Entity Registrant Name TRISTATE CAPITAL HOLDINGS, INC.  
Entity Incorporation, State or Country Code PA  
Entity Tax Identification Number 20-4929029  
Entity Address, Address Line One One Oxford Centre  
Entity Address, Address Line Two 301 Grant Street, Suite 2700  
Entity Address, City or Town Pittsburgh,  
Entity Address, State or Province PA  
City Area Code (412)  
Local Phone Number 304-0304  
Entity Address, Postal Zip Code 15219  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   33,154,343
Entity Central Index Key 0001380846  
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Document Fiscal Year End Date --12-31  
Common Stock    
Entity Information [Line Items]    
Title of 12(b) Security Common Stock, no par value  
Trading Symbol TSC  
Security Exchange Name NASDAQ  
Series A depositary share    
Entity Information [Line Items]    
Title of 12(b) Security Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock  
Trading Symbol TSCAP  
Security Exchange Name NASDAQ  
Series B depositary share    
Entity Information [Line Items]    
Title of 12(b) Security Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock  
Trading Symbol TSCBP  
Security Exchange Name NASDAQ  
v3.21.2
Unaudited Condensed Consolidated Statements of Financial Condition - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
ASSETS    
Cash $ 341 $ 341
Interest-earning deposits with other institutions 462,239 429,639
Federal funds sold 7,352 5,462
Cash and cash equivalents 469,932 435,442
Debt securities available-for-sale, at fair value 555,609 617,570
Debt securities held-to-maturity, at amortized cost, net 857,202 211,691
Equity securities, at fair value 5,000 0
Federal Home Loan Bank stock 11,802 13,284
Total investment securities 1,429,613 842,545
Loans and leases held-for-investment 9,869,011 8,237,418
Allowance for credit losses on loans and leases (32,363) (34,630)
Loans and leases held-for-investment, net 9,836,648 8,202,788
Accrued interest receivable 21,872 18,783
Investment management fees receivable, net 8,908 7,935
Goodwill 41,660 41,660
Intangible assets, net of accumulated amortization of $13,814 and $12,381, respectively 20,818 22,251
Office properties and equipment, net of accumulated depreciation of $18,681 and $16,241, respectively 16,293 12,369
Operating lease right-of-use asset 35,109 21,294
Bank owned life insurance 98,308 71,787
Prepaid expenses and other assets 179,707 219,962
Total assets 12,158,868 9,896,816
Liabilities:    
Deposits 10,756,141 8,489,089
Borrowings, net 355,654 400,493
Accrued interest payable on deposits and borrowings 3,145 3,057
Deferred tax liability, net 6,772 5,676
Operating lease liability 36,694 22,958
Other accrued expenses and other liabilities 186,424 218,398
Total liabilities 11,344,830 9,139,671
Shareholders’ Equity:    
Common stock voting, no par value; Shares authorized - 51,653,347; Shares issued -35,553,711 and 34,919,572, respectively; Shares outstanding - 33,154,343 and 32,620,150, respectively 332,323 331,098
Additional paid-in capital 41,295 33,824
Retained earnings 299,817 254,054
Accumulated other comprehensive loss, net (1,535) (2,697)
Treasury stock (2,399,368 and 2,299,422 shares, respectively) (38,305) (36,277)
Total shareholders’ equity 814,038 757,145
Total liabilities and shareholders’ equity 12,158,868 9,896,816
Series A preferred stock    
Shareholders’ Equity:    
Preferred stock, no par value 38,468 38,468
Series B preferred stock    
Shareholders’ Equity:    
Preferred stock, no par value 77,611 77,611
Series C preferred stock    
Shareholders’ Equity:    
Preferred stock, no par value 64,364 61,064
Nonvoting Common Stock    
Shareholders’ Equity:    
Common stock voting, no par value; Shares authorized - 51,653,347; Shares issued -35,553,711 and 34,919,572, respectively; Shares outstanding - 33,154,343 and 32,620,150, respectively $ 0 $ 0
v3.21.2
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Accumulated amortization $ 13,814 $ 12,381
Accumulated depreciation $ 18,681 $ 16,241
Shares Authorized, Common Stock (in shares) 51,653,347 51,653,347
Shares Issued, Common Stock (in shares) 35,553,711 34,919,572
Shares Outstanding, Common Stock (in shares) 33,154,343 32,620,150
Treasury Stock (in shares) 2,399,368 2,299,422
Series A preferred stock    
Shares Authorized, Preferred Stock (in shares) 150,000 150,000
Shares Issued, Preferred Stock (in shares) 40,250 40,250
Shares Outstanding, Preferred Stock (in shares) 40,250 40,250
Series B preferred stock    
Shares Issued, Preferred Stock (in shares) 80,500 80,500
Shares Outstanding, Preferred Stock (in shares) 80,500 80,500
Series C preferred stock    
Shares Issued, Preferred Stock (in shares) 672 650
Shares Outstanding, Preferred Stock (in shares) 672 650
Nonvoting Common Stock    
Shares Authorized, Common Stock (in shares) 6,653,347 6,653,347
Shares Issued, Common Stock (in shares) 0 0
v3.21.2
Unaudited Condensed Consolidated Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Interest income:        
Loans and leases $ 55,071 $ 46,256 $ 155,959 $ 152,551
Investments 4,477 3,687 10,860 11,528
Interest-earning deposits 157 279 433 2,006
Total interest income 59,705 50,222 167,252 166,085
Interest expense:        
Deposits 10,480 13,898 31,340 57,095
Borrowings 2,558 2,850 7,677 7,110
Total interest expense 13,038 16,748 39,017 64,205
Net interest income (loss) 46,667 33,474 128,235 101,880
Provision for credit losses 0 7,430 320 16,428
Net interest income after provision for credit losses 46,667 26,044 127,915 85,452
Non-interest income:        
Net gain on the sale and call of debt securities 33 3,744 130 3,815
Bank owned life insurance income 613 441 1,522 1,298
Other income (loss) (28) 40 855 414
Total non-interest income 14,230 16,889 42,725 43,202
Non-interest expense:        
Compensation and employee benefits 21,701 18,524 62,559 52,539
Premises and equipment expense 1,520 1,488 4,099 4,389
Professional fees 2,310 1,596 5,758 4,175
FDIC insurance expense 1,375 3,030 3,625 7,760
General insurance expense 363 294 1,002 834
State capital shares tax expense 790 366 2,217 1,115
Travel and entertainment expense 755 592 1,835 1,735
Technology and data services 4,274 2,576 11,061 7,294
Intangible amortization expense 477 478 1,433 1,466
Marketing and advertising 984 394 2,566 1,694
Other operating expenses 3,459 2,089 7,556 5,667
Total non-interest expense 38,008 31,427 103,711 88,668
Income (loss) before tax 22,889 11,506 66,929 39,986
Income tax expense 2,873 2,177 11,933 7,362
Net income 20,016 9,329 54,996 32,624
Preferred stock dividends 3,097 1,962 9,233 5,886
Net income available to common shareholders $ 16,919 $ 7,367 $ 45,763 $ 26,738
Earnings per common share:        
Basic (in usd per share) $ 0.46 $ 0.26 $ 1.24 $ 0.95
Diluted (in usd per share) $ 0.44 $ 0.26 $ 1.20 $ 0.93
Investment management fees        
Non-interest income:        
Total non-interest income $ 9,436 $ 8,095 $ 27,887 $ 23,471
Service charges on deposits        
Non-interest income:        
Total non-interest income 377 235 1,018 763
Swap fees        
Non-interest income:        
Total non-interest income 3,059 3,953 9,683 12,179
Commitment and other loan fees        
Non-interest income:        
Total non-interest income $ 740 $ 381 $ 1,630 $ 1,262
v3.21.2
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Comprehensive Income [Abstract]        
Net income $ 20,016 $ 9,329 $ 54,996 $ 32,624
Other comprehensive income (loss):        
Unrealized holding gains (losses) on debt securities, net of tax expense (benefit) of $(482), $856, $(651) and $651, respectively (1,528) 3,088 (2,061) 2,041
Reclassification adjustment for gains included in net income on debt securities, net of tax expense of $(1), $(904), $(25) and $(909), respectively (4) (2,835) (78) (2,852)
Unrealized holding gains (losses) on derivatives, net of tax expense (benefit) of $(18), $5, $448 and $(2,218), respectively (56) 27 1,316 (7,040)
Reclassification adjustment for losses included in net income on derivatives, net of tax benefit of $218, $248, $631 and $398, respectively 685 780 1,985 1,249
Other comprehensive income (loss), net of tax (903) 1,060 1,162 (6,602)
Total comprehensive income $ 19,113 $ 10,389 $ 56,158 $ 26,022
v3.21.2
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Comprehensive Income [Abstract]        
Tax expense (benefit) on unrealized holding gains (losses) on debt securities $ (482) $ 856 $ (651) $ 651
Tax benefit (expense) on debt securities losses (gains) reclassified from other comprehensive income (1) (904) (25) (909)
Tax expense (benefit) on unrealized holding gains (losses) on derivatives (18) 5 448 (2,218)
Tax benefit (expense) on derivative losses (gains) reclassified from other comprehensive income $ 218 $ 248 $ 631 $ 398
v3.21.2
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Total
Preferred Stock
Common Stock
Additional Paid-in-Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss), Net
Treasury Stock
Beginning balance at Dec. 31, 2019 $ 621,281 $ 116,079 $ 295,349 $ 23,095 $ 218,449 $ 1,132 $ (32,823)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 32,624       32,624    
Other comprehensive income (loss) (6,602)         (6,602)  
Preferred stock dividends (5,886)       (5,886)    
Exercise of stock options 285   588 (303)      
Purchase of treasury stock (3,343)           (3,343)
Treasury stock reissuance 110       (25)   135
Cancellation of stock options (2,484)     (2,484)      
Stock-based compensation 7,215     7,215      
Ending balance at Sep. 30, 2020 643,200 116,079 295,937 27,523 245,162 (5,470) (36,031)
Beginning balance at Jun. 30, 2020 632,830 116,079 295,820 25,088 237,795 (6,530) (35,422)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 9,329       9,329    
Other comprehensive income (loss) 1,060         1,060  
Preferred stock dividends (1,962)       (1,962)    
Exercise of stock options 74   117 (43)      
Purchase of treasury stock (609)           (609)
Stock-based compensation 2,478     2,478      
Ending balance at Sep. 30, 2020 643,200 116,079 295,937 27,523 245,162 (5,470) (36,031)
Beginning balance at Dec. 31, 2020 757,145 177,143 331,098 33,824 254,054 (2,697) (36,277)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 54,996       54,996    
Other comprehensive income (loss) 1,162         1,162  
Preferred stock dividends (5,933) 3,300     (9,233)    
Exercise of stock options 495   1,225 (730)      
Purchase of treasury stock (2,028)           (2,028)
Stock-based compensation 8,201     8,201      
Ending balance at Sep. 30, 2021 814,038 180,443 332,323 41,295 299,817 (1,535) (38,305)
Beginning balance at Jun. 30, 2021 794,568 179,343 332,307 38,496 282,898 (632) (37,844)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 20,016       20,016    
Other comprehensive income (loss) (903)         (903)  
Preferred stock dividends (1,997) 1,100     (3,097)    
Exercise of stock options 7   16 (9)      
Purchase of treasury stock (461)           (461)
Stock-based compensation 2,808     2,808      
Ending balance at Sep. 30, 2021 $ 814,038 $ 180,443 $ 332,323 $ 41,295 $ 299,817 $ (1,535) $ (38,305)
v3.21.2
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Cash flows from operating activities:            
Net income $ 20,016   $ 9,329 $ 54,996 $ 32,624  
Adjustments to reconcile net income to net cash provided by operating activities:            
Depreciation and intangible amortization expense       3,873 3,087  
Amortization of deferred financing costs       161 90  
Impairment on historic tax credit investments       2,830 145  
Provision for credit losses 0   7,430 320 16,428  
Stock-based compensation expense       8,201 7,215  
Net gain on the sale and call of debt securities       (130) (3,815)  
Income from debt securities trading       (105) (239)  
Purchase of debt securities trading       (9,440) (20,932)  
Proceeds from the sale of debt securities trading       9,545 21,171  
Net amortization of premiums and discounts on debt securities       9,556 1,555  
Increase in investment management fees receivable, net       (973) (67)  
Decrease (increase) in accrued interest receivable       (3,089) 4,044  
Increase (decrease) in accrued interest payable       88 (1,178)  
Bank owned life insurance income (613)   (441) (1,522) (1,298)  
Increase in income taxes payable       5,716 2,812  
Decrease in prepaid income taxes       1,186 3,163  
Deferred tax provision       693 724  
Increase (decrease) in accounts payable and other accrued expenses       1,923 (1,901)  
Cash received for reimbursement of leasehold improvements       0 2,196  
Other, net       (2,471) (1,600)  
Net cash provided by operating activities       81,358 64,224  
Cash flows from investing activities:            
Purchase of debt securities available-for-sale       (581,985) (467,245)  
Purchase of debt securities held-to-maturity       (481,630) (436,768)  
Purchase of equity securities       (5,000) 0  
Proceeds from the sale of debt securities available-for-sale 47,001   64,363 121,711 120,400  
Principal repayments and maturities of debt securities available-for-sale       51,804 44,322  
Principal repayments and maturities of debt securities held-to-maturity       308,028 378,367  
Purchase of bank owned life insurance       (25,000) 0  
Investment in low-income housing and historic tax credits       (8,425) (8,305)  
Investment in small business investment companies       (2,144) (811)  
Net redemption of Federal Home Loan Bank stock       1,482 11,040  
Net increase in loans and leases, net       (1,637,222) (1,076,716)  
Proceeds from loan sales       2,939 0  
Proceeds from the sale of other real estate owned       351 1,527  
Additions to office properties and equipment       (6,363) (3,719)  
Net cash used in investing activities       (2,261,454) (1,437,908)  
Cash flows from financing activities:            
Net increase in deposit accounts       2,267,052 1,549,100  
Net decrease in Federal Home Loan Bank advances       (50,000) (55,000)  
Net increase in line of credit advances       5,000 0  
Net proceeds from issuance of subordinated notes payable       0 95,349  
Net proceeds from exercise of stock options       495 285  
Cancellation of stock options       0 (2,484)  
Purchase of treasury stock, net of reissuance       (2,028) (3,233)  
Dividends paid on preferred stock       (5,933) (5,886)  
Net cash provided by financing activities       2,214,586 1,578,131  
Net change in cash and cash equivalents during the period       34,490 204,447  
Cash and cash equivalents at beginning of the period   $ 435,442   435,442 403,855 $ 403,855
Cash and cash equivalents at end of the period $ 469,932   $ 608,302 469,932 608,302 $ 435,442
Cash paid during the period for:            
Interest expense       38,768 65,424  
Income taxes       4,308 663  
Other non-cash activity:            
Operating lease right-of-use asset       13,737 0  
Unsettled purchase of debt securities available-for-sale       13,616 0  
Transfer of debt securities available-for-sale to held-to-maturity   $ 480,800   480,769 0  
Series C dividend distributable       $ 3,300 $ 0  
v3.21.2
Basis of Information and Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
BASIS OF INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATION
TriState Capital Holdings, Inc. (“we,” “us,” “our,” the “holding company,” the “parent company,” or the “Company”) is a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended. The Company has three wholly owned subsidiaries: TriState Capital Bank, a Pennsylvania-chartered state bank (the “Bank”); Chartwell Investment Partners, LLC, a registered investment adviser (“Chartwell”); and Chartwell TSC Securities Corp., a registered broker-dealer (“CTSC Securities”).

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

Chartwell provides investment management services primarily to institutional investors, mutual funds and individual investors. CTSC Securities supports marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual funds advised and/or administered by Chartwell.

The Company and the Bank are subject to regulatory examination and supervision by the Federal Deposit Insurance Corporation (“FDIC”), the Pennsylvania Department of Banking and Securities and the Board of Governors of the Federal Reserve System (“Federal Reserve”). In addition, if the Bank’s consolidated total assets exceed $10 billion for four consecutive quarters, the Company and the Bank will become subject to the regulatory examination and supervision of the Consumer Financial Protection Bureau (“CFPB”) with respect to certain consumer protection laws. The Bank’s quarter-end consolidated assets exceeded $10 billion for three consecutive quarters as of September 30, 2021. Chartwell is a registered investment adviser regulated by the U.S. Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and the Financial Industry Regulatory Authority, Inc. (“FINRA”).

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

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 credit losses on loans and leases, valuation of goodwill and other intangible assets and their evaluation for impairment, fair value measurements and deferred income taxes and their related recoverability, each of which is discussed later in this section.

CONSOLIDATION
Our consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank, Chartwell and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly owned subsidiaries, TSC Equipment Finance and Meadowood, after elimination of inter-company accounts and transactions. The unaudited condensed consolidated financial statements of the Company presented herein have been prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited condensed consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the related notes for the fiscal year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2021.
CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold and short-term investments that have an original maturity of 90 days or less. Under agreements with certain of its derivative counterparties, the Company is required to maintain minimum cash collateral posting thresholds with such counterparties. The cash subject to these agreements is considered restricted for these purposes.

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

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

Management evaluates available-for-sale debt securities in an unrealized loss position quarterly for expected credit losses. Management first determines whether it intends to sell or if it is more likely than not that it will be required to sell the impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements, and securities portfolio management. If the Company intends to sell an available-for-sale security with a fair value below amortized cost or if it is more likely than not that it will be required to sell such a security before recovery, the security’s amortized cost is written down to fair value through current period earnings. For available-for-sale debt securities that the Company does not intend to sell or it is more likely than not that it will not be required to sell before recovery, a provision for credit losses is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. Management considers the extent to which fair value is less than amortized cost, credit ratings and other factors related to the security in assessing whether credit loss exists. The Company measures credit loss by comparing the present value of cash flows expected to be collected to the amortized cost of the security. An allowance for credit losses is measured by the difference that the present value of cash flows expected to be collected is less than the amortized cost, limited by the amount that the fair value is less than the amortized cost. The remaining difference between the security’s fair value and amortized cost (that is, the decline in fair value not attributable to credit losses) is recognized in other comprehensive income (loss), in the consolidated statements of comprehensive income and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis. Changes in the allowance for credit losses are recorded as provision for credit losses. Losses are charged
against the allowance when management believes the security is uncollectible or management intends to sell or is required to sell the security.

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

FEDERAL HOME LOAN BANK STOCK
The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company’s intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company’s holdings in the FHLB stock were recoverable at par value as of September 30, 2021 and December 31, 2020. Cash and stock dividends are reported as interest income on investments in the consolidated statements of income.

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

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

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

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

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

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES
The allowance for credit losses is a valuation account that is deducted from the amortized cost of loans and leases to present management’s best estimate of the net amount expected to be collected. Adjustments to the allowance for credit losses are established through provisions for credit losses that are recorded in the consolidated statements of income. Loans and leases are charged off against the allowance for credit losses when management believes that the principal is uncollectible. If, at a later
time, amounts are recovered with respect to loans and leases previously charged off, the recovered amount is credited to allowance for credit losses. Accrued interest receivable is excluded from the estimate of expected credit losses.

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

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

In estimating the general allowance for credit losses for loans evaluated on a collective or pool basis, management considers past events, current conditions, and reasonable and supportable economic forecasts, including historical charge-offs and subsequent recoveries. Management also considers qualitative factors that influence our credit quality, including, but not limited to, delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, and the results of internal loan reviews. Finally, management considers the impact of changes in current and forecasted local and regional economic conditions in the markets that we serve.

Management bases the computation of the general allowance for credit losses on two factors: the primary factor and the secondary factor. The primary factor is based on the inherent risk identified by management within each of the Company’s three loan portfolios based on the historical loss experience of each loan portfolio. Management has developed a methodology that is applied to each of the three primary loan portfolios: C&I loans and leases, CRE loans and private banking loans (other than those secured by cash, marketable securities and/or cash value life insurance).

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

The allowance for credit losses represents management’s current estimate of expected credit losses in the loan and lease portfolio. Expected credit losses are estimated over the contractual term of the loans, which includes extension or renewal options that are not unconditionally cancellable by the Company and are adjusted for expected prepayments when appropriate. Management’s judgment takes into consideration past events, current conditions and reasonable and supportable economic forecasts including general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available in making such determinations, and that the present allowance for credit losses represents management’s best estimate of current expected credit losses, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance.

The lifetime loss rates are estimated by analyzing a combination of internal and external data related to historical performance of each loan pool over a complete economic cycle. Loss rates are based on historical averages for each loan pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables such as gross domestic product (“GDP”), unemployment rates, corporate bond credit spreads and commercial property values, which management considers to be both reasonable and supportable. The single, forward-looking forecast of these macroeconomic variables is applied over the remaining life of the loan pools. The development of the reasonable and supportable forecast incorporates an assumption that each macroeconomic variable will revert to a long-term expectation starting in years two to four of the forecast and largely completing within the first five years of the forecast.

The secondary factor is intended to capture additional risks related to events and circumstances that management believes have an impact on the performance of the loan portfolio that are not considered as part of the primary factor. Although this factor is more
subjective in nature, the methodology focuses on internal and external trends in pre-specified categories, or risk factors, and applies a quantitative percentage that drives the secondary factor. Nine risk factors have been identified and each risk factor is assigned an allowance level based on management’s judgment as to the expected impact of each risk factor on each loan portfolio and is monitored on a quarterly basis. As the trend in any risk factor changes, management evaluates the need for a corresponding change to occur in the allowance associated with each respective risk factor to provide the most appropriate estimate of allowance for credit losses on loans and leases.

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

Results for the nine months ended September 30, 2021 are presented under the current expected credit loss (“CECL”) methodology, in accordance with ASC Topic 326, while prior period amounts continue to be reported in accordance with 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.

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. The Company has not experienced any losses on receivables for investment management fees for the nine months ended September 30, 2021 and 2020. The Company had no allowance for credit losses on investment management fees as of September 30, 2021 and December 31, 2020.

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

Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company assesses whether the carrying value of these assets exceeds its fair value. If the carrying value exceeds the fair value of the assets, an impairment loss is recorded in an amount equal to any such excess and the assets are reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as its trade names, client lists and non-compete agreements are amortized over their estimated useful lives. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to 25 years. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount of such assets may not be recoverable.
OFFICE PROPERTIES AND EQUIPMENT
Office properties and equipment are stated at cost less accumulated depreciation. Office properties include furniture, fixtures and leasehold improvements. Equipment includes computer equipment and internal use software. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to 10 years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life of the assets are capitalized and depreciated to non-interest expense over the estimated remaining life of the asset.

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

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

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

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

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

EARNINGS PER COMMON SHARE
Earnings per common share (“EPS”) is computed using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities, according to dividends and participation rights in undistributed earnings. Under this method, net earnings is reduced by the amount of dividends declared in the current period for common shareholders and participating security holders. The remaining earnings or “undistributed earnings” are allocated between common stock and participating securities to the extent that each security may share in earnings as if all the earnings for the period had been distributed.

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

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

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

The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. The Company generates swap fee income through these transactions. These derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company generally eliminates its interest rate exposure resulting from such transactions, and these derivatives are not designated as hedging instruments. Swap fees are based on the notional amount and weighted maturity of each individual transaction and are collected and recorded to non-interest income in the consolidated statements of income when the transaction is executed.

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

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

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

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gains and the non-credit component of unrealized losses on the Company’s debt securities available-for-sale are included in accumulated other comprehensive income (loss), net of applicable income taxes. Also included in accumulated other comprehensive income (loss) is the remaining unamortized balance of the unrealized holding gains (non-credit losses), net of applicable income taxes, that existed on the transfer date for debt securities reclassified into the held-to-maturity category from the available-for-sale category.
Unrealized holding gains (losses) on the effective portion of the Company’s cash flow hedge derivatives are included in accumulated other comprehensive income (loss), net of applicable income taxes, which will be reclassified to interest expense as interest payments are made on the Company’s debt.

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

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

RECENT ACCOUNTING DEVELOPMENTS
In July 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-5, Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments. The amendments are effective for fiscal years beginning after December 15, 2021, for all entities, and for interim periods within those fiscal years for public business entities and interim periods within fiscal years beginning after December 15, 2022, for all other entities. The amendments in this update address stakeholders’ concerns by amending the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3; and (2) the lessor would have otherwise recognized a day-one loss. The Company is currently evaluating the impact of adopting ASU 2021-05 on its consolidated financial statements.

In April 2021, the FASB issued ASU 2021-04, which included Topic 260: Earnings Per Share. This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options ("warrants") due to a lack of explicit guidance in the FASB Codification. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements.

In January 2021, the FASB issued ASU 2021-01 - Reference Rate Reform (Topic 848): Scope. This ASU clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. The amendments in this ASU are elective and apply to all entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in this ASU are effective immediately for all entities. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements, but the Company will consider this guidance as contracts are transitioned from LIBOR to another reference rate.

RECLASSIFICATION
Certain items previously reported have been reclassified to conform with the current year’s reporting presentation and are considered immaterial.
v3.21.2
Investment Securities
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
Debt securities available-for-sale and held-to-maturity were comprised of the following as of September 30, 2021:
September 30, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$135,711 $1,509 $199 $— $137,021 
Non-agency residential mortgage-backed securities244,744 1 1,057 — 243,688 
Trust preferred securities18,335 445 2 — 18,778 
Agency collateralized mortgage obligations17,495 63 — — 17,558 
Agency mortgage-backed securities125,982 38 915 — 125,105 
Agency debentures7,600 688 — — 8,288 
Municipal bonds5,197 — 26 — 5,171 
Total debt securities available-for-sale$555,064 $2,744 $2,199 $— $555,609 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
September 30, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
Corporate bonds$28,168 $925 $23 29,070 $46 
Agency debentures37,199 659 228 37,630 — 
Municipal bonds1,270 2 — 1,272 — 
Non-agency residential mortgage-backed securities205,661 52 1,781 203,932 — 
Agency mortgage-backed securities545,877 638 7,108 539,407 — 
U.S. treasury notes39,073 — 564 38,509 — 
Total debt securities held-to-maturity$857,248 $2,276 $9,704 $849,820 $46 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.

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

Debt securities available-for-sale and held-to-maturity were comprised of the following as of December 31, 2020:
December 31, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$157,452 $1,538 $526 — $158,464 
Trust preferred securities18,228 57 198 — 18,087 
Agency collateralized mortgage obligations22,058 36 5 — 22,089 
Agency mortgage-backed securities406,741 3,595 209 — 410,127 
Agency debentures8,013 790 — — 8,803 
Total debt securities available-for-sale$612,492 $6,016 $938 — $617,570 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
December 31, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
Corporate bonds$28,672 $566 $1 $29,237 $79 
Agency debentures48,130 1,051 — 49,181 — 
Municipal bonds6,577 45 — 6,622 — 
Non-agency residential mortgage-backed securities124,152 237 217 124,172 70 
Agency mortgage-backed securities4,309 778 — 5,087 — 
Total debt securities held-to-maturity$211,840 $2,677 $218 $214,299 $149 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.

Interest income on investment securities was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
Taxable interest income$4,305 $3,436 $10,295 $10,437 
Non-taxable interest income35 55 92 192 
Dividend income137 196 473 899 
Total interest income on investment securities$4,477 $3,687 $10,860 $11,528 

As of September 30, 2021, the contractual maturities of the debt securities were:
September 30, 2021
Available-for-SaleHeld-to-Maturity
(Dollars in thousands)Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Due in less than one year$27,500 $27,584 $860 $861 
Due from one to five years60,246 61,285 15,578 16,075 
Due from five to ten years57,461 57,911 98,522 98,665 
Due after ten years409,857 408,829 742,288 734,219 
Total debt securities$555,064 $555,609 $857,248 $849,820 

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

Proceeds from the sale and call of debt securities available-for-sale and held-to-maturity and related gross realized gains and losses were:
Available-for-SaleHeld-to-MaturityAvailable-for-SaleHeld-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)20212020202120202021202020212020
Proceeds from sales$47,001 $64,363 $— $— $121,711 $120,400 $— $— 
Proceeds from calls— — 101,202 118,745 13,000 3,580 144,757 366,503 
Total proceeds$47,001 $64,363 $101,202 $118,745 $134,711 $123,980 $144,757 $366,503 
Gross realized gains$25 $3,740 $27 $4 $123 $3,762 $27 $53 
Gross realized losses— — 19 — 1 — 19 — 
Net realized gains$25 $3,740 $8 $4 $122 $3,762 $8 $53 

There were $38.5 million of debt securities held-to-maturity that were pledged as collateral for certain deposit relationships as of September 30, 2021.
Changes in the allowance for credit losses on held-to-maturity securities were as follows for the three and nine months ended September 30, 2021:

Three Months Ended September 30, 2021
(Dollars in thousands)Corporate
Bonds		Non-agency SecuritizationsMunicipal
Bonds		Agency Debentures and SecuritizationsU.S. Treasury NotesTotal
Balance, beginning of period$47 $23 $— $— $— $70 
Provision (credit) for credit losses(1)(23)— — — (24)
Charge-offs— — — — — — 
Recoveries— — — — — — 
Balance, end of period$46 $— $— $— $— $46 

Nine Months Ended September 30, 2021
(Dollars in thousands)Corporate
Bonds		Non-agency SecuritizationsMunicipal
Bonds		Agency Debentures and SecuritizationsU.S. Treasury NotesTotal
Balance, beginning of period$79 $70 $— $— $— $149 
Provision (credit) for credit losses(33)(70)— — — (103)
Charge-offs— — — — — — 
Recoveries— — — — — — 
Balance, end of period$46 $— $— $— $— $46 

The following tables show the fair value and gross unrealized losses on debt securities available-for-sale, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2021 and December 31, 2020:
September 30, 2021
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
Corporate bonds$9,518 $84 $9,886 $115 $19,404 $199 
Non-agency residential mortgage-backed securities170,302 1,057 — — 170,302 1,057 
Trust preferred securities— — 2,373 2 2,373 2 
Agency mortgage-backed securities123,874 915 — — 123,874 915 
Municipal bonds5,171 26 — — 5,171 26 
Temporarily impaired debt securities available-for-sale (1)
$308,865 $2,082 $12,259 $117 $321,124 $2,199 
(1)The number of investment positions with unrealized losses totaled 22 for available-for-sale securities.

December 31, 2020
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
Corporate bonds$28,796 $277 $9,751 $249 $38,547 $526 
Trust preferred securities13,313 198 — — 13,313 198 
Agency collateralized mortgage obligations— — 9,863 5 9,863 5 
Agency mortgage-backed securities89,931 209 — — 89,931 209 
Temporarily impaired debt securities available-for-sale (1)
$132,040 $684 $19,614 $254 $151,654 $938 
(1)The number of investment positions with unrealized losses totaled 33 for available-for-sale securities.
The changes in the fair values of our agency collateralized mortgage obligations and agency mortgage-backed securities are primarily the result of interest rate fluctuations. These agency securities are either explicitly or implicitly guaranteed by the U.S. government, highly rated, and have a long history of no credit losses. To assess for credit losses on debt securities available-for-sale in unrealized loss position, management evaluates the underlying issuer’s financial performance and the related credit rating information through a review of publicly available financial statements and other publicly available information. The most recent assessment for credit losses did not identify any issues related to the ultimate repayment of principal and interest on these debt securities. In addition, the Company has the ability and intent to hold debt securities in an unrealized loss position until recovery of their amortized cost. Based on this, no allowance for credit losses has been recognized on debt securities available-for-sale in an unrealized loss position.

The Company monitors the credit quality of debt securities held-to-maturity including credit ratings quarterly. The following tables present the amortized costs basis of debt securities held-to-maturity by Moody’s bond credit rating.
September 30, 2021
(Dollars in thousands)AaaAaABaaBaTotal
Debt securities held-to-maturity:
Corporate bonds$— $— $— $28,168 $— $28,168 
Agency debentures37,199 — — — — 37,199 
Municipal bonds— 480 790 — — 1,270 
Non-agency residential mortgage-backed securities205,661 — — — — 205,661 
Agency mortgage-backed securities545,877 — — — — 545,877 
U.S. treasury notes39,073 — — — — 39,073 
Total debt securities held-to-maturity$827,810 $480 $790 $28,168 $— $857,248 

Accrued interest receivable of $1.6 million and $697,000 on debt securities held-to-maturity as of September 30, 2021 and December 31, 2020, respectively, was excluded from the amortized cost used in the calculation of allowance for credit losses. The Company had no debt securities held-to-maturity that were past due as of September 30, 2021.

There were no outstanding debt securities classified as trading as of September 30, 2021 and December 31, 2020.

Equity securities consisted of mutual funds investing in short-duration, investment grade corporate bonds. The investments in these securities were $5.0 million and $0 as of September 30, 2021 and December 31, 2020, respectively.

There was $11.8 million and $13.3 million in FHLB stock outstanding as of September 30, 2021 and December 31, 2020, respectively.
v3.21.2
Loans and Leases
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
LOANS AND LEASES 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 the Company’s C&I loan and lease portfolio and CRE loan portfolio, which serve middle-market businesses and real estate developers in our primary markets.

Loans and leases held-for-investment were comprised of the following:
September 30, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$6,190,874 $1,336,331 $2,329,762 $9,856,967 
Net deferred loan costs (fees)13,135 4,486 (5,577)12,044 
Loans and leases held-for-investment, net of deferred fees and costs6,204,009 1,340,817 2,324,185 9,869,011 
Allowance for credit losses on loans and leases(2,156)(10,796)(19,411)(32,363)
Loans and leases held-for-investment, net$6,201,853 $1,330,021 $2,304,774 $9,836,648 
December 31, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$4,797,881 $1,269,248 $2,160,784 $8,227,913 
Net deferred loan costs (fees)9,919 4,904 (5,318)9,505 
Loans and leases held-for-investment, net of deferred fees and costs4,807,800 1,274,152 2,155,466 8,237,418 
Allowance for credit losses on loans and leases(2,047)(5,254)(27,329)(34,630)
Loans and leases held-for-investment, net$4,805,753 $1,268,898 $2,128,137 $8,202,788 

The Company’s customers have unused loan commitments based on the availability of eligible collateral or other terms and conditions under their loan agreements. Included in unused loan commitments are unused availability under demand loans for our private banking lines secured by cash, marketable securities and/or cash value life insurance, as well as commitments to fund loans secured by residential properties, commercial real estate, construction loans, business lines of credit and other unused commitments of loans in various stages of funding. Not all commitments will fund or fully fund as customers often only draw on a portion of their available credit. The amount of unfunded commitments, including standby letters of credit, as of September 30, 2021 and December 31, 2020, was $9.45 billion and $6.73 billion, respectively. The interest rate for each commitment is based on the prevailing market conditions at the time of funding. The total unfunded commitments above included loans in the process of origination totaling approximately $93.8 million and $39.6 million as of September 30, 2021 and December 31, 2020, 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, 2021 and December 31, 2020, included in the total unfunded commitments above, was $63.1 million and $82.0 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, 2021 and 2020, there were draws on letters of credit totaling $3.5 million and $49,000, respectively, which were repaid by the borrowers. Most of these commitments are expected to expire without being drawn upon and the total amount does not necessarily represent future cash requirements.

The allowance for credit losses on off-balance-sheet credit exposures was $3.1 million and $3.4 million as of September 30, 2021 and December 31, 2020, respectively, which includes allowance for credit losses on unfunded loan commitments and standby letters of credit. The Company recorded a credit to provision on off-balance sheet exposures as liabilities of $303,000 and provision expense of $765,000 for the nine months ended September 30, 2021 and 2020, respectively.
v3.21.2
Allowance for Credit Losses on Loans and Leases
 9 Months Ended
Sep. 30, 2021
Allowance for Credit Losses and Leases [Abstract]  
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES
Our allowance for credit losses represents our current estimate of expected credit losses in the portfolio at a specific point in time. This estimate includes credit losses associated with loans and leases evaluated on a collective or pool basis, as well as expected credit losses of the individually evaluated loans and leases that do not share similar risk characteristics. Management evaluates the adequacy of the allowance at least quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions, and economic forecasts over a reasonable and supportable period of time. This evaluation is subjective and requires material estimates that may change over time. The calculation of the allowance for credit losses on loans and leases takes into consideration the inherent risk identified within each of the Company’s three primary loan portfolios. The lifetime loss rates are estimated by analyzing a combination of internal and external data related to historical performance of each loan pool over a complete economic cycle. Results for the nine months ended September 30, 2021, are presented under CECL methodology while prior period amounts continue to be reported in accordance with previously applicable GAAP. Refer to Note 1, Summary of Significant Accounting Policies, to our unaudited condensed consolidated financial statements for more details on the Company’s policy on allowance for credit losses on loans and leases.

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

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

This portfolio also has some loans that are secured by residential real estate or other financial assets and 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 98.7% and 98.6% of total private banking loans as of September 30, 2021 and December 31, 2020, respectively.

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

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

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

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

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

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

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

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

Special Mention – A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in our credit position at some future date. Economic and market conditions beyond the customer’s control may in the future necessitate this classification.
Substandard – A substandard loan is not adequately protected by the net worth and/or paying capacity of the obligor or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

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

The following table presents the amortized cost of loans by portfolio, risk rating and year of origination:

As of September 30, 2021
(Dollars in thousands)20212020201920182017Prior
Revolving
Loans (1)
Total
Private Banking:
Pass$23,269 $58,664 $31,480 $54,348 $7,195 $52,441 $5,976,612 $6,204,009 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total private banking loans23,269 58,664 31,480 54,348 7,195 52,441 5,976,612 6,204,009 
Commercial and Industrial:
Pass129,138 185,460 177,496 47,837 40,650 26,281 709,469 1,316,331 
Special mention— 2,088 1,780 — — 193 11,800 15,861 
Substandard— — — — — — — — 
Doubtful— 750 — 7,875 — — — 8,625 
Total commercial and industrial loans129,138 188,298 179,276 55,712 40,650 26,474 721,269 1,340,817 
Commercial Real Estate:
Pass359,655 537,743 511,049 363,399 198,938 275,371 59,056 2,305,211 
Special mention— 526 — 628 — 5,303 — 6,457 
Substandard— 262 5,395 — — 6,860 — 12,517 
Doubtful— — — — — — — — 
Total commercial real estate loans359,655 538,531 516,444 364,027 198,938 287,534 59,056 2,324,185 
Loans and leases held-for-investment$512,062 $785,493 $727,200 $474,087 $246,783 $366,449 $6,756,937 $9,869,011 
(1)The Company had no revolving loans which were converted to term loans included in loans and leases held-for-investment as of September 30, 2021.
As of December 31, 2020
(Dollars in thousands)20202019201820172016Prior
Revolving
Loans (1)
Total
Private Banking:
Pass$64,829 $44,210 $57,081 $7,736 $12,040 $55,092 $4,566,296 $4,807,284 
Special mention— — — — — — — — 
Substandard— 516 — — — — — 516 
Doubtful— — — — — — — — 
Total private banking loans64,829 44,726 57,081 7,736 12,040 55,092 4,566,296 4,807,800 
Commercial and Industrial:
Pass216,459 223,189 88,212 44,575 9,383 20,709 651,900 1,254,427 
Special mention1,795 — 5,416 — — — 3,431 10,642 
Substandard750 — 7,875 — — — 458 9,083 
Doubtful— — — — — — — — 
Total commercial and industrial loans219,004 223,189 101,503 44,575 9,383 20,709 655,789 1,274,152 
Commercial Real Estate:
Pass514,920 617,120 435,708 202,001 181,108 134,700 38,802 2,124,359 
Special mention446 5,395 4,308 — 1,186 145 — 11,480 
Substandard91 — 6,296 2,926 7,054 3,260 — 19,627 
Doubtful— — — — — — — — 
Total commercial real estate loans515,457 622,515 446,312 204,927 189,348 138,105 38,802 2,155,466 
Loans and leases held-for-investment$799,290 $890,430 $604,896 $257,238 $210,771 $213,906 $5,260,887 $8,237,418 
(1)The Company had no revolving loans which were converted to term loans included in loans and leases held-for-investment as of December 31, 2020.

Accrued interest receivable of $18.4 million and $16.4 million on loans and leases as of September 30, 2021 and December 31, 2020, respectively, was excluded from the amortized cost used in the calculation of allowance for credit losses.

Changes in the allowance for credit losses on loans and leases were as follows for the three and nine months ended September 30, 2021 and 2020:

Three Months Ended September 30, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,107 $8,969 $21,501 $32,577 
Provision (credit) for credit losses49 1,949 (1,974)24 
Charge-offs— (122)(116)(238)
Recoveries— — — — 
Balance, end of period$2,156 $10,796 $19,411 $32,363 
Three Months Ended September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,151 $7,546 $13,579 $23,276 
Provision for credit losses59 226 7,145 7,430 
Charge-offs— — — — 
Recoveries— — — — 
Balance, end of period$2,210 $7,772 $20,724 $30,706 
Nine Months Ended September 30, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,047 $5,254 $27,329 $34,630 
Provision (credit) for credit losses109 5,750 (5,436)423 
Charge-offs— (321)(2,482)(2,803)
Recoveries— 113 — 113 
Balance, end of period$2,156 $10,796 $19,411 $32,363 
Nine Months Ended September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$1,973 $5,262 $6,873 $14,108 
Provision for credit losses408 2,169 13,851 16,428 
Charge-offs(171)— — (171)
Recoveries— 341 — 341 
Balance, end of period$2,210 $7,772 $20,724 $30,706 

The following tables present the age analysis of past due loans and leases segregated by class:
September 30, 2021
(Dollars in thousands)30-59 Days
 Past Due		60-89 Days
 Past Due		90 Days or More Past Due Total Past DueCurrentTotal
Private banking$299 $2,398 $— $2,697 $6,201,312 $6,204,009 
Commercial and industrial— — 8,625 8,625 1,332,192 1,340,817 
Commercial real estate— — — — 2,324,185 2,324,185 
Loans and leases held-for-investment$299 $2,398 $8,625 $11,322 $9,857,689 $9,869,011 
December 31, 2020
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due90 Days or More Past Due Total Past DueCurrentTotal
Private banking$250 $— $— $250 $4,807,550 $4,807,800 
Commercial and industrial— — 458 458 1,273,694 1,274,152 
Commercial real estate2,926 — 6,296 9,222 2,146,244 2,155,466 
Loans and leases held-for-investment$3,176 $— $6,754 $9,930 $8,227,488 $8,237,418 

Individually Evaluated Loans

Management monitors the delinquency status of the Company’s loan portfolio on a monthly basis. Loans are considered non-performing when interest and principal are 90 days or more past due or management has determined that it is probable the borrower is unable to meet payments as they become due. The risk of loss is generally highest for non-performing loans.
The following tables present the Company’s amortized cost of individually evaluated loans and related information on those loans as of and for the nine months ended September 30, 2021 and as of and for the twelve months ended December 31, 2020:
As of and for the Nine Months Ended September 30, 2021
(Dollars in thousands)Amortized
Cost		Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial8,625 8,625 6,900 8,625 — 
Commercial real estate— — — — — 
Total with a related allowance recorded8,625 8,625 6,900 8,625 — 
Without a related allowance recorded:
Private banking— — — — — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded— — — — — 
Total:
Private banking— — — — — 
Commercial and industrial8,625 8,625 6,900 8,625 — 
Commercial real estate— — — — — 
Total$8,625 $8,625 $6,900 $8,625 $— 
As of and for the Twelve Months Ended December 31, 2020
(Dollars in thousands)Amortized
Cost		Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial458 457 103 458 — 
Commercial real estate9,222 9,251 1,885 9,222 — 
Total with a related allowance recorded9,680 9,708 1,988 9,680 — 
Without a related allowance recorded:
Private banking— — — — — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded— — — — — 
Total:
Private banking— — — — — 
Commercial and industrial458 457 103 458 — 
Commercial real estate9,222 9,251 1,885 9,222 — 
Total$9,680 $9,708 $1,988 $9,680 $— 

Individually evaluated loans were $8.6 million and $9.7 million as of September 30, 2021 and December 31, 2020, respectively. There was no interest income recognized on individually evaluated loans that were also on non-accrual status for the nine months ended September 30, 2021, and the twelve months ended December 31, 2020. As of September 30, 2021 and December 31, 2020, there were no loans 90 days or more past due and still accruing interest income.

The Company estimates allowance for credit losses individually for loans that do not share similar risk characteristics, including non-accrual loans and loans designated as TDRs, using a discounted cash flow method or based on the fair value of the collateral less estimated selling costs. Based on those evaluations, there were specific reserves totaling $6.9 million and $2.0 million as of September 30, 2021 and December 31, 2020, respectively. Refer to Note 1, Summary of Significant Accounting Policies, to our unaudited condensed consolidated financial statements for the Company’s policy on evaluating loans for expected credit losses and interest income.
The following tables present the allowance for credit losses on loans and leases and amortized costs of individually evaluated loans:
September 30, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for credit losses on loans and leases:
Individually evaluated for impairment$— $6,900 $— $6,900 
Collectively evaluated for impairment2,156 3,896 19,411 25,463 
Total allowance for credit losses on loans and leases$2,156 $10,796 $19,411 $32,363 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $8,625 $— $8,625 
Collectively evaluated for impairment6,204,009 1,332,192 2,324,185 9,860,386 
Loans and leases held-for-investment$6,204,009 $1,340,817 $2,324,185 $9,869,011 
December 31, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for credit losses on loans and leases:
Individually evaluated for impairment$— $103 $1,885 $1,988 
Collectively evaluated for impairment2,047 5,151 25,444 32,642 
Total allowance for credit losses on loans and leases$2,047 $5,254 $27,329 $34,630 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $458 $9,222 $9,680 
Collectively evaluated for impairment4,807,800 1,273,694 2,146,244 8,227,738 
Loans and leases held-for-investment$4,807,800 $1,274,152 $2,155,466 $8,237,418 

Troubled Debt Restructuring

The aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring was $0 and $2.9 million as of September 30, 2021 and December 31, 2020, respectively, which were also on non-accrual status. There were no unused commitments on loans designated as TDRs as of September 30, 2021 and December 31, 2020, respectively.

The modifications made to restructured loans typically consist of an extension of the payment terms or the deferral of principal payments. There were no loans modified as TDRs within 12 months of the corresponding balance sheet date with payment defaults during the nine months ended September 30, 2021 and 2020.

There were no loans newly designated as TDRs during the three months ended September 30, 2021. The financial effects of our modifications made to loans newly designated as TDRs during the nine months ended September 30, 2021, were as follows:

Nine Months Ended September 30, 2021
(Dollars in thousands)CountRecorded Investment at the time of ModificationCurrent Recorded InvestmentAllowance for Credit Losses on Loans and Leases at the time of ModificationCurrent Allowance for Credit Losses on Loans and Leases
Commercial Real Estate:
Extended term, deferred principal2$4,454 $— $445 $— 
Total2$4,454 $— $445 $— 

There were no loans newly designated as TDRs during the three and nine months ended September 30, 2020.

Other Real Estate Owned

As of September 30, 2021 and December 31, 2020, the balance of OREO was $2.2 million and $2.7 million, respectively. The change in the OREO balance from December 31, 2020 was attributable to a $155,000 write-down on an OREO property and $351,000 in
proceeds from the sale of an OREO property. The net loss from the sale of OREO was $39,000 during the nine months ended September 30, 2021. There were no residential mortgage loans that were in the process of foreclosure as of September 30, 2021.
v3.21.2
Deposits
 9 Months Ended
Sep. 30, 2021
Deposits [Abstract]  
DEPOSITS DEPOSITS
As of September 30, 2021 and December 31, 2020, deposits were comprised of the following:
Interest Rate
Range		Weighted Average
Interest Rate		Balance
(Dollars in thousands)September 30,
2021		September 30,
2021		December 31,
2020		September 30,
2021		December 31,
2020
Demand and savings accounts:
Noninterest-bearing checking accounts———$593,342 $456,426 
Interest-bearing checking accounts
0.05 to 1.70%
0.38%0.38%4,057,005 3,068,834 
Money market deposit accounts
0.08 to 3.25%
0.41%0.56%5,220,946 3,927,797 
Total demand and savings accounts9,871,293 7,453,057 
Certificates of deposit
0.02 to 3.15%
0.41%1.08%884,848 1,036,032 
Total deposits$10,756,141 $8,489,089 
Weighted average rate on interest-bearing accounts0.40%0.56%

As of September 30, 2021 and December 31, 2020, the Bank had total brokered deposits of $1.07 billion and $753.3 million, respectively. Reciprocal deposits through Certificate of Deposit Account Registry Service® (“CDARS®”) and Insured Cash Sweep® (“ICS®”) totaled $2.09 billion and $1.72 billion as of September 30, 2021 and December 31, 2020, respectively, and were not considered brokered deposits.

As of September 30, 2021 and December 31, 2020, certificates of deposit with balances of $100,000 or more, excluding brokered and reciprocal deposits, totaled $529.5 million and $534.3 million, respectively. As of September 30, 2021 and December 31, 2020, certificates of deposit with balances of $250,000 or more, excluding brokered and reciprocal deposits, totaled $152.9 million and $159.6 million.

The contractual maturity of certificates of deposit was as follows:
(Dollars in thousands)September 30,
2021		December 31,
2020
12 months or less$756,573 $892,427 
12 months to 24 months112,316 132,443 
24 months to 36 months15,959 11,162 
Total$884,848 $1,036,032 

Interest expense on deposits was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
Interest-bearing checking accounts$3,682 $3,280 $9,689 $11,213 
Money market deposit accounts5,794 6,944 17,395 28,975 
Certificates of deposit1,004 3,674 4,256 16,907 
Total interest expense on deposits$10,480 $13,898 $31,340 $57,095 
v3.21.2
Borrowings
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
As of September 30, 2021 and December 31, 2020, borrowings were comprised of the following:
September 30, 2021December 31, 2020
(Dollars in thousands)Interest RateEnding BalanceMaturity DateInterest RateEnding BalanceMaturity Date
FHLB borrowings:
Issued 9/20/20210.26%$50,000 12/20/2021—%$— 
Issued 9/2/20210.34%50,000 12/2/2021—%— 
Issued 9/1/20210.31%150,000 12/1/2021—%— 
Issued 12/21/2020—%— 0.39%50,000 3/22/2021
Issued 12/2/2020—%— 0.33%50,000 3/2/2021
Issued 12/1/2020—%— 0.33%150,000 3/1/2021
Issued 10/8/2020—%— 0.39%50,000 1/8/2021
Line of credit borrowings4.00%10,000 2/18/20224.25%5,000 10/17/2021
Subordinated notes payable (net of debt issuance costs of $1,846 and $2,007, respectively)
5.75%95,654 5/15/20305.75%95,493 5/15/2030
Total borrowings, net$355,654 $400,493 

In 2020, the Company completed underwritten public offerings of subordinated notes due 2030, raising aggregate proceeds of $97.5 million. The subordinated notes have a term of 10 years at a fixed-to-floating rate of 5.75%. The subordinated notes constitute Tier 2 capital for the Company under federal regulatory capital rules.

The Bank’s FHLB borrowing capacity is based on the collateral value of certain securities held in safekeeping at the FHLB, if applicable, and loans pledged to the FHLB. The Bank submits a quarterly Qualifying Collateral Report (“QCR”) to the FHLB to update the value of the loans pledged. As of September 30, 2021, the Bank’s borrowing capacity is based on the information provided in its June 30, 2021 QCR filing. As of September 30, 2021, the Bank had pledged loans of $1.46 billion with the FHLB, for a gross borrowing capacity of $1.04 billion, of which $250.0 million was outstanding in advances. As of December 31, 2020, there was $300.0 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, 2021 and December 31, 2020, there were no outstanding borrowings under these lines of credit, and they are available to the Bank at the lenders’ discretion. In addition, the Bank maintains an $8.0 million unsecured line of credit with PNC Bank for private label credit card facilities for certain existing commercial clients of the Bank, of which $3.3 million in notional value of credit cards have been issued. The clients of the Bank are responsible for repaying any balances due on these credit cards directly to PNC; however, if the customer fails to repay PNC, the Bank could be required to satisfy the obligation to PNC and initiate collection from its customer as part of the existing credit facility of that customer. On August 16, 2021, the Bank entered into a standby letter of credit with PNC Bank for $643,000, which expires on August 16, 2022, for benefit of the lessor of our New York office space in lieu of a security deposit.

The Company maintains an unsecured line of credit of $75.0 million with The Huntington National Bank. As of September 30, 2021, there was $10.0 million in outstanding borrowings under this line of credit. As of December 31, 2020, the Company held an unsecured line of credit of $75.0 million with Texas Capital Bank and had $5.0 million in outstanding borrowings under this line of credit. The Company repaid these borrowings at Texas Capital Bank and subsequently terminated this line of credit on February 18, 2021.

Interest expense on borrowings was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
FHLB borrowings$1,102 $1,392 $3,256 $4,711 
Line of credit borrowings— — 55 261 
Subordinated notes payable1,456 1,458 4,366 2,138 
Total interest expense on borrowings$2,558 $2,850 $7,677 $7,110 
v3.21.2
Stock Transactions
 9 Months Ended
Sep. 30, 2021
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]  
STOCK TRANSACTIONS STOCK TRANSACTIONS
On December 30, 2020, the Company completed the private placement of securities pursuant to an Investment Agreement, dated October 10, 2020 and amended December 9, 2020, with T-VIII PubOpps LP (“T-VIII PubOpps”), an affiliate of investment funds managed by Stone Point Capital LLC. Pursuant to the Investment Agreement, the Company sold to T-VIII PubOpps (i) 2,770,083 shares of voting common stock for $40.0 million, (ii) 650 shares of Series C Preferred Stock for $65.0 million, and (iii) warrants to purchase up to 922,438 shares of voting common stock, or non-voting common stock at an exercise price of $17.50 per share. After two years, the Series C Preferred Stock is convertible into shares of non-voting common stock or, when transferred under certain limited circumstances to a holder other than an affiliate of Stone Point Capital LLC, voting common stock, at a price of 13.75 per share. The Series C Preferred Stock has a liquidation preference of $100,000 per share, and pays a quarterly dividend at an annualized rate of 6.75%. The Company received gross proceeds of $105.0 million at closing, and may receive up to an additional $16.1 million if the warrants are exercised in full. The net proceeds were recorded to shareholders’ equity at December 31, 2020, and allocated to the three equity instruments issued using the relative fair value method applied to common stock, preferred stock and the warrants issued, which were recorded to additional paid-in capital. The net proceeds constitute Tier 1 capital for the Company under federal regulatory capital rules.

During the nine months ended September 30, 2021 and 2020, the Company paid dividends of $5.9 million on its 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, no par value (the “Series A Preferred Stock”) and its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, no par value (the “Series B Preferred Stock”). During the nine months ended September 30, 2021, a stock dividend of 22 shares of the Company’s Series C Preferred Stock was paid in kind, as well as cash paid in lieu of a fractional share.

Under authorization by the Board of Directors of the Company (“Board”), the Company is permitted to repurchase its common stock up to prescribed amounts, of which $7.3 million remained available as of September 30, 2021. 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, 2021, treasury shares increased 99,946, or approximately $2.0 million, in connection with the net settlement of equity awards exercised or vested. During the nine months ended September 30, 2020, the Company repurchased 40,000 shares of common stock for approximately $670,000, at an average cost of $16.76 per share, which shares are held as treasury stock. In addition to the shares purchased in the market, treasury shares increased 126,148, or approximately $2.7 million, in connection with the net settlement of equity awards exercised or vested during the nine months ended September 30, 2020.

Under prior authorization of the Board, stock option cancellation programs were approved to allow for certain outstanding and vested stock option awards to be canceled by the option holder at a price based on the closing day’s stock price less the option exercise price. During the nine months ended September 30, 2020, there were 212,447 options canceled for approximately $2.5 million, which was recorded as a reduction to additional paid-in capital.
The tables below show the changes in the Company’s preferred and common shares outstanding during the periods indicated:
Number of
Preferred Shares Outstanding		Number of
Common Shares
Outstanding		Number of
Treasury Shares
Balance, December 31, 2019120,750 29,355,986 2,126,422 
Issuance of restricted common stock— 607,323 — 
Forfeitures of restricted common stock— (11,018)— 
Exercise of stock options— 33,500 — 
Purchase of treasury stock— (40,000)40,000 
Increase in treasury stock related to equity awards— (126,148)126,148 
Reissuance of treasury stock— 8,500 (8,500)
Balance, September 30, 2020120,750 29,828,143 2,284,070 
Balance, December 31, 2020121,400 32,620,150 2,299,422 
Issuance of restricted common stock— 595,886 — 
Forfeitures of restricted common stock— (12,047)— 
Preferred stock dividend22 — — 
Exercise of stock options— 50,300 — 
Increase in treasury stock related to equity awards— (99,946)99,946 
Balance, September 30, 2021121,422 33,154,343 2,399,368 
v3.21.2
Regulatory Capital
 9 Months Ended
Sep. 30, 2021
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
REGULATORY CAPITAL REGULATORY CAPITAL
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct 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”) capital, Tier 1 capital and Total capital (each as defined in the regulations) to risk-weighted assets (as defined in the regulations), and of Tier 1 capital to average assets (as defined in the regulations). As of September 30, 2021 and December 31, 2020, TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they were subject.

Insured depository institutions are categorized as well capitalized if they meet minimum capital ratios as set forth in the tables below. The Bank exceeded the capital ratios necessary to be well capitalized under the regulatory framework for prompt corrective action. There have been no conditions or events since the filing of the most recent Call Report for the period ending September 30, 2021 that management believes have materially changed the Bank’s capital, as presented in the tables below.

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

In 2020, U.S. federal regulatory authorities issued a final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay the impact of CECL on regulatory capital for up to two years, beginning January 1, 2020, followed by a three-year transition period. As the Company adopted CECL on December 31, 2020, the Company elected to utilize the remainder of the two-year delay of CECL’s impact on its regulatory capital, from December 31, 2020 through December 31, 2021, followed by the three-year transition period of CECL impact on regulatory capital, from January 1, 2022 through December 31, 2024.
The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of September 30, 2021 and December 31, 2020:
September 30, 2021
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$889,197 13.71 %$518,882 8.00 % N/AN/A
Bank$864,503 13.38 %$516,720 8.00 %$645,900 10.00 %
Tier 1 risk-based capital ratio
Company$764,932 11.79 %$389,162 6.00 % N/AN/A
Bank$835,892 12.94 %$387,540 6.00 %$516,720 8.00 %
Common equity tier 1 risk-based capital ratio
Company$584,489 9.01 %$291,871 4.50 % N/AN/A
Bank$835,892 12.94 %$290,655 4.50 %$419,835 6.50 %
Tier 1 leverage ratio
Company$764,932 6.61 %$462,757 4.00 % N/AN/A
Bank$835,892 7.24 %$461,884 4.00 %$577,355 5.00 %
December 31, 2020
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$833,819 14.12 %$472,267 8.00 %N/AN/A
Bank$789,273 13.41 %$470,820 8.00 %$588,525 10.00 %
Tier 1 risk-based capital ratio
Company$707,711 11.99 %$354,200 6.00 %N/AN/A
Bank$758,658 12.89 %$353,115 6.00 %$470,820 8.00 %
Common equity tier 1 risk-based capital ratio
Company$530,568 8.99 %$265,650 4.50 %N/AN/A
Bank$758,658 12.89 %$264,836 4.50 %$382,542 6.50 %
Tier 1 leverage ratio
Company$707,711 7.29 %$388,408 4.00 %N/AN/A
Bank$758,658 7.83 %$387,626 4.00 %$484,533 5.00 %
v3.21.2
Earnings Per Common Share
 9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE EARNINGS PER COMMON SHARE
The computation of basic and diluted earnings per common share for the periods presented were as follows:

Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands, except per share data)2021202020212020
Basic earnings per common share:
Net income$20,016 $9,329 $54,996 $32,624 
Less: Preferred dividends on Series A and Series B1,963 1,962 5,887 5,886 
Less: Preferred dividends on Series C1,134 — 3,346 — 
Net income available to common shareholders$16,919 $7,367 $45,763 $26,738 
Allocation of net income available:
Common shareholders$14,274 $7,367 $38,679 $26,738 
Series C convertible preferred shareholders2,225 — 5,944 — 
Warrant shareholders420 — 1,140 — 
Total$16,919 $7,367 $45,763 $26,738 
Basic weighted average common shares outstanding:
Basic common shares31,357,356 28,286,250 31,287,924 28,230,180 
Series C convertible preferred stock, as-if converted4,887,272 — 4,807,858 — 
Warrants, as-if exercised922,438 — 922,438 — 
Basic earnings per common share$0.46 $0.26 $1.24 $0.95 
Diluted earnings per common share:
Income available to common shareholders after allocation$14,274 $7,367 $38,679 $26,738 
Diluted weighted average common shares outstanding:
Basic common shares31,357,356 28,286,250 31,287,924 28,230,180 
Restricted stock - dilutive664,729 303,138 884,714 313,726 
Stock options - dilutive124,137 85,055 144,229 135,377 
Diluted common shares32,146,222 28,674,443 32,316,867 28,679,283 
Diluted earnings per common share$0.44 $0.26 $1.20 $0.93 
Three Months Ended September 30,Nine Months Ended September 30,
Anti-dilutive shares:2021202020212020
Restricted stock10,750 785,762 11,500 566,498 
Stock options— 5,500 — — 
Series C convertible preferred stock, as-if converted4,887,272 — 4,887,272 — 
Warrants, as-if exercised922,438 — 922,438 — 
Total anti-dilutive shares
5,820,460 791,262 5,821,210 566,498 

The Series C convertible preferred stock and warrants are anti-dilutive under the treasury stock method compared to the basic EPS calculation under the two-class method.
v3.21.2
Derivatives and Hedging Activity
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING ACTIVITY DERIVATIVES AND HEDGING ACTIVITY
RISK MANAGEMENT OBJECTIVE OF USING DERIVATIVES

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

FAIR VALUES OF DERIVATIVE INSTRUMENTS ON THE STATEMENTS OF FINANCIAL CONDITION

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated statements of financial condition as of September 30, 2021 and December 31, 2020:
Asset DerivativesLiability Derivatives
as of September 30, 2021as of September 30, 2021
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$276 Other liabilities$4,786 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets100,718 Other liabilities100,727 
TotalOther assets$100,994 Other liabilities$105,513 
Asset DerivativesLiability Derivatives
as of December 31, 2020as of December 31, 2020
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$— Other liabilities$9,082 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets144,333 Other liabilities144,351 
TotalOther assets$144,333 Other liabilities$153,433 

The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of September 30, 2021 and December 31, 2020:
Offsetting of Derivative Assets
Gross Amounts of Recognized AssetsGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets
presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial PositionNet Amount
(Dollars in thousands)Financial InstrumentsCash Collateral Received
September 30, 2021$100,994 $— $100,994 $(10,560)$— $90,434 
December 31, 2020$144,333 $— $144,333 $(94)$— $144,239 

Offsetting of Derivative Liabilities
Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Statement of Financial PositionNet Amounts of Liabilities
presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial PositionNet Amount
(Dollars in thousands)Financial InstrumentsCash Collateral Posted
September 30, 2021$105,513 $— $105,513 $(10,560)$(80,719)$14,234 
December 31, 2020$153,433 $— $153,433 $(94)$(150,238)$3,101 

CASH FLOW HEDGES OF INTEREST RATE RISK

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

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s cash flow hedge derivatives did not have any hedge ineffectiveness recognized in earnings during the nine months ended September 30, 2021.

Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of September 30, 2021, were as follows:
(Dollars in thousands)Notional
Amount
Effective
Rate (1)
Estimated Increase/
(Decrease) to Interest
Expense in the Next
Twelve Months		Maturity
Date		Remaining Term
(in Months)
Interest rate products:
Issued 5/30/2019$50,000 2.05%$641 6/1/20228
Issued 5/30/201950,000 2.03%942 6/1/202320
Issued 5/30/201950,000 2.04%948 6/1/202432
Issued 3/2/202050,000 0.98%410 3/2/202541
Issued 3/20/202050,000 0.60%219 3/20/202542
Total$250,000 $3,160 
(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)2021202020212020
Derivatives designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesRealized Gain (Loss) Recognized in Income on DerivativesUnrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate productsInterest expense$(903)$(1,028)$(74)$32 

Nine Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
Derivatives designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesRealized Gain (Loss) Recognized in Income on DerivativesUnrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate productsInterest expense$(2,616)$(1,647)$1,733 $(9,258)

NON-DESIGNATED HEDGES

The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate derivatives with its commercial and private banking customers to facilitate their respective risk management strategies. Those derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company generally eliminates its interest rate exposure resulting from such transactions. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of September 30, 2021, the Company had interest rate derivative transactions with an aggregate notional amount of $4.55 billion related to this program.
The table below presents the effect of the Company’s non-designated hedge instruments in the unaudited condensed consolidated statements of income:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
Derivatives not designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesAmount of Gain (Loss) Recognized in Income on DerivativesAmount of Gain (Loss) Recognized in Income on Derivatives
Interest rate productsNon-interest income$10 $14 $33 $(51)

CREDIT-RISK-RELATED CONTINGENT FEATURES

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

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

As of September 30, 2021, the termination value of derivatives for which the Company had master netting arrangements with the counterparty and in a net liability position was $81.2 million, including accrued interest. As of September 30, 2021, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $88.5 million which is considered restricted cash. If the Company had breached any of these provisions as of September 30, 2021, it could have been required to settle its obligations under the agreements at their termination value.
v3.21.2
Disclosures About Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value estimates of financial instruments are based on the present value of expected future cash flows, quoted market prices of similar financial instruments, if available, and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions and risk assumptions used. Therefore, fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realized in an immediate settlement of instruments. Accordingly, the aggregate fair value amounts presented below do not represent the underlying value of the Company.

FAIR VALUE MEASUREMENTS

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

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

•Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.
•Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing.
•Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include assumptions of a source independent of the reporting entity or the reporting entity’s own assumptions that are supported by little or no market activity or observable inputs.
The Company is responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value. The Company performs due diligence to understand the inputs used or how the data was calculated or derived 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, 2021 and December 31, 2020:
September 30, 2021
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $137,021 $— $137,021 
Non-agency residential mortgage-backed securities— 243,688 — 243,688 
Trust preferred securities— 18,778 — 18,778 
Agency collateralized mortgage obligations— 17,558 — 17,558 
Agency mortgage-backed securities— 125,105 — 125,105 
Agency debentures— 8,288 — 8,288 
Municipal bonds— 5,171 — 5,171 
Equity securities5,000 — — 5,000 
Interest rate swaps— 100,994 — 100,994 
Total financial assets5,000 656,603 — 661,603 
Financial liabilities:
Interest rate swaps— 105,513 — 105,513 
Total financial liabilities$— $105,513 $— $105,513 
December 31, 2020
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $158,464 $— $158,464 
Trust preferred securities— 18,087 — 18,087 
Agency collateralized mortgage obligations— 22,089 — 22,089 
Agency mortgage-backed securities— 410,127 — 410,127 
Agency debentures— 8,803 — 8,803 
Interest rate swaps— 144,333 — 144,333 
Total financial assets— 761,903 — 761,903 
Financial liabilities:
Interest rate swaps— 153,433 — 153,433 
Total financial liabilities$— $153,433 $— $153,433 

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

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

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

The following tables represent the balances of assets measured at fair value on a non-recurring basis as of September 30, 2021 and December 31, 2020:
September 30, 2021
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $1,725 $1,725 
Other real estate owned— — 2,178 2,178 
Total assets$— $— $3,903 $3,903 
December 31, 2020
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $7,692 $7,692 
Other real estate owned— — 2,724 2,724 
Total assets$— $— $10,416 $10,416 

As of September 30, 2021 and December 31, 2020, the Company recorded $6.9 million and $2.0 million, respectively, of specific reserves to allowance for credit losses on loans and leases as a result of adjusting the fair value of impaired loans.

INDIVIDUALLY EVALUATED LOANS
The Company evaluates individually loans that do not share similar risk characteristics, including non-accrual loans and loans designated as TDRs. Specific allowance for credit losses is measured based on a market approach, discounted cash flow of ongoing operations, discounted at the loan’s original effective interest rate, or a calculation of the fair value of the underlying collateral less estimated selling costs. Our policy is to obtain appraisals on collateral supporting individually evaluated loans on an annual basis, unless circumstances dictate a shorter time frame. Appraisals are reduced by estimated costs to sell the collateral, and, under certain circumstances, additional factors that may arise and cause us to believe our recoverable value may be less than the independent appraised value. Accordingly, individually evaluated loans are classified as Level 3.

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

The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of September 30, 2021 and December 31, 2020:
September 30, 2021
(Dollars in thousands)Fair Value
Valuation Techniques (1)(2)
Significant Unobservable InputsWeighted Average Discount Rate
Loans measured for impairment, net$1,725 CollateralLiquidation value and discount due to salability conditions80%
Other real estate owned$2,178 CollateralAppraisal value and discount due to salability conditions15%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.
(2)The collateral which is used in the valuation of these loans is commercial real estate.
December 31, 2020
(Dollars in thousands)Fair Value
Valuation Techniques (1)(2)
Significant Unobservable InputsWeighted Average
Discount Rate
Loans measured for impairment, net$7,692 CollateralAppraisal value and discount due to salability conditions23%
Other real estate owned$2,724 CollateralAppraisal value and discount due to salability conditions12%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.
(2)The collateral which is used in the valuation of these loans is commercial real estate.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table summarizes the carrying amounts and estimated fair values of financial instruments:
September 30, 2021December 31, 2020
(Dollars in thousands)Fair Value
Level		Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Financial assets:
Cash and cash equivalents1$469,932 $469,932 $435,442 $435,442 
Debt securities available-for-sale2555,609 555,609 617,570 617,570 
Debt securities held-to-maturity, net2857,202 849,820 211,691 214,299 
Equity securities15,000 5,000 — — 
Federal Home Loan Bank stock211,802 11,802 13,284 13,284 
Loans and leases held-for-investment, net39,836,648 9,815,390 8,202,788 8,199,922 
Accrued interest receivable221,872 21,872 18,783 18,783 
Investment management fees receivable, net28,908 8,908 7,935 7,935 
Bank owned life insurance298,308 98,308 71,787 71,787 
Other real estate owned32,178 2,178 2,724 2,724 
Interest rate swaps2100,994 100,994 144,333 144,333 
Financial liabilities:
Deposits2$10,756,141 $10,767,182 $8,489,089 $8,510,799 
Borrowings, net2355,654 364,201 400,493 402,714 
Interest rate swaps2105,513 105,513 153,433 153,433 

During the nine months ended September 30, 2021 and 2020, 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, 2021 and December 31, 2020:

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

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

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

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

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

OFF-BALANCE SHEET INSTRUMENTS
Fair values for the Company’s off-balance sheet instruments, which consist of lending commitments, standby letters of credit and risk participation agreements related to interest rate swap agreements, are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Management believes that the fair value of these off-balance sheet instruments is not significant.
v3.21.2
Changes in Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following tables show the changes in accumulated other comprehensive income (loss) net of tax, for the periods presented:
Three Months Ended September 30,
20212020
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$3,227 $(3,859)$(632)$1,692 $(8,222)$(6,530)
Change in unrealized holding gains (losses)(1,528)(56)(1,584)3,088 27 3,115 
Losses (gains) reclassified from other comprehensive income(4)685 681 (2,835)780 (2,055)
Net other comprehensive income (loss)(1,532)629 (903)253 807 1,060 
Balance, end of period$1,695 $(3,230)$(1,535)$1,945 $(7,415)$(5,470)

Nine Months Ended September 30,
20212020
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$3,834 $(6,531)$(2,697)$2,756 $(1,624)$1,132 
Change in unrealized holding gains (losses)(2,061)1,316 (745)2,041 (7,040)(4,999)
Losses (gains) reclassified from other comprehensive income(78)1,985 1,907 (2,852)1,249 (1,603)
Net other comprehensive income (loss)(2,139)3,301 1,162 (811)(5,791)(6,602)
Balance, end of period$1,695 $(3,230)$(1,535)$1,945 $(7,415)$(5,470)
v3.21.2
Contingent Liabilities
 9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
CONTINGENT LIABILITIES CONTINGENT LIABILITIESFrom 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.
v3.21.2
Segments
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
The Company operates two reportable segments: Bank and Investment Management.

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

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

The following tables provide financial information for the two segments of the Company as of and for the periods indicated. The information provided under the caption “Parent and Other” represents general operating activity of the Company not considered to be a reportable segment, which includes parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts.
(Dollars in thousands)September 30,
2021		December 31,
2020
Assets:
Bank$12,074,984 $9,819,719 
Investment management84,822 86,150 
Parent and other(938)(9,053)
Total assets$12,158,868 $9,896,816 
Three Months Ended September 30, 2021Three Months Ended September 30, 2020
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$59,705 $— $— $59,705 $50,222 $— $— $50,222 
Interest expense11,591 — 1,447 13,038 15,297 — 1,451 16,748 
Net interest income (loss)48,114 — (1,447)46,667 34,925 — (1,451)33,474 
Provision for credit losses— — — — 7,430 — — 7,430 
Net interest income (loss) after provision for credit losses48,114 — (1,447)46,667 27,495 — (1,451)26,044 
Non-interest income:
Investment management fees— 9,780 (344)9,436 — 8,293 (198)8,095 
Net gain on the sale and call of debt securities33 — — 33 3,744 — — 3,744 
Other non-interest income (loss)4,768 (7)— 4,761 5,027 23 — 5,050 
Total non-interest income (loss)4,801 9,773 (344)14,230 8,771 8,316 (198)16,889 
Non-interest expense:
Intangible amortization expense— 477 — 477 — 478 — 478 
Other non-interest expense28,975 8,031 525 37,531 23,462 6,868 619 30,949 
Total non-interest expense28,975 8,508 525 38,008 23,462 7,346 619 31,427 
Income (loss) before tax23,940 1,265 (2,316)22,889 12,804 970 (2,268)11,506 
Income tax expense (benefit)2,719 (412)566 2,873 2,357 251 (431)2,177 
Net income (loss)$21,221 $1,677 $(2,882)$20,016 $10,447 $719 $(1,837)$9,329 
Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$167,252 $— $— $167,252 $166,085 $— $— $166,085 
Interest expense34,629 — 4,388 39,017 61,844 — 2,361 64,205 
Net interest income (loss)132,623 — (4,388)128,235 104,241 — (2,361)101,880 
Provision for credit losses320 — — 320 16,428 — — 16,428 
Net interest income (loss) after provision for credit losses132,303 — (4,388)127,915 87,813 — (2,361)85,452 
Non-interest income:
Investment management fees— 28,789 (902)27,887 — 23,955 (484)23,471 
Net gain on the sale and call of debt securities130 — — 130 3,815 — — 3,815 
Other non-interest income14,683 25 — 14,708 15,893 23 — 15,916 
Total non-interest income (loss)14,813 28,814 (902)42,725 19,708 23,978 (484)43,202 
Non-interest expense:
Intangible amortization expense— 1,433 — 1,433 — 1,466 — 1,466 
Other non-interest expense77,201 23,300 1,777 102,278 64,462 20,498 2,242 87,202 
Total non-interest expense77,201 24,733 1,777 103,711 64,462 21,964 2,242 88,668 
Income (loss) before tax69,915 4,081 (7,067)66,929 43,059 2,014 (5,087)39,986 
Income tax expense (benefit)12,013 183 (263)11,933 7,878 381 (897)7,362 
Net income (loss)$57,902 $3,898 $(6,804)$54,996 $35,181 $1,633 $(4,190)$32,624 
v3.21.2
Subsequent Events
 9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTSOn October 1, 2021, a stock dividend of 11 shares of the Company’s Series C Preferred Stock was paid in kind, as well as cash paid in lieu of a fractional share, which was declared by the Board in July 2021 and fully accrued for as of September 30, 2021.
On October 11, 2021, 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 1, 2022, to preferred shareholders of record as of the close of business on December 15, 2021. The Board also declared a dividend payable of 11 shares of the Company’s Series C Preferred Stock per share, and cash paid in lieu of a fractional share, which is payable on January 1, 2022, to preferred shareholders of record of the Series C Preferred Stock as of the close of business on December 15, 2021.

On October 20, 2021, the Company announced that it entered into a definitive agreement under which Raymond James Financial, Inc. (“Raymond James”) will acquire the outstanding shares of stock of the Company for consideration that is a combination of cash and Raymond James stock at a fixed exchange rate, valued in aggregate at approximately $1.1 billion based on the trading value of Raymond James’ stock on the announcement date. The acquisition is subject to customary closing conditions, including regulatory approvals and approval by the Company’s shareholders, and is expected to close in 2022.
v3.21.2
Basis of Information and Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Nature of operation
NATURE OF OPERATION
TriState Capital Holdings, Inc. (“we,” “us,” “our,” the “holding company,” the “parent company,” or the “Company”) is a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended. The Company has three wholly owned subsidiaries: TriState Capital Bank, a Pennsylvania-chartered state bank (the “Bank”); Chartwell Investment Partners, LLC, a registered investment adviser (“Chartwell”); and Chartwell TSC Securities Corp., a registered broker-dealer (“CTSC Securities”).

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

Chartwell provides investment management services primarily to institutional investors, mutual funds and individual investors. CTSC Securities supports marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual funds advised and/or administered by Chartwell.

The Company and the Bank are subject to regulatory examination and supervision by the Federal Deposit Insurance Corporation (“FDIC”), the Pennsylvania Department of Banking and Securities and the Board of Governors of the Federal Reserve System (“Federal Reserve”). In addition, if the Bank’s consolidated total assets exceed $10 billion for four consecutive quarters, the Company and the Bank will become subject to the regulatory examination and supervision of the Consumer Financial Protection Bureau (“CFPB”) with respect to certain consumer protection laws. The Bank’s quarter-end consolidated assets exceeded $10 billion for three consecutive quarters as of September 30, 2021. Chartwell is a registered investment adviser regulated by the U.S. Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and the Financial Industry Regulatory Authority, Inc. (“FINRA”).

The Bank conducts business through its main office located in Pittsburgh, Pennsylvania, as well as its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. Chartwell conducts business through its office located in Berwyn, Pennsylvania, and CTSC Securities conducts business through its office located in Pittsburgh, Pennsylvania.
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 credit losses on loans and leases, valuation of goodwill and other intangible assets and their evaluation for impairment, fair value measurements and deferred income taxes and their related recoverability, each of which is discussed later in this section.
Consolidation
CONSOLIDATION
Our consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank, Chartwell and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly owned subsidiaries, TSC Equipment Finance and Meadowood, after elimination of inter-company accounts and transactions. The unaudited condensed consolidated financial statements of the Company presented herein have been prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited condensed consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the related notes for the fiscal year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2021.
Cash and cash equivalents
CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold and short-term investments that have an original maturity of 90 days or less. Under agreements with certain of its derivative counterparties, the Company is required to maintain minimum cash collateral posting thresholds with such counterparties. The cash subject to these agreements is considered restricted for these purposes.
Business combinations
BUSINESS COMBINATIONS
The Company accounts for business combinations using the acquisition method of accounting. Under this method of accounting, the acquired company’s net assets are recorded at fair value as of the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Acquisition costs are expensed when incurred. The difference between the purchase price, which includes an initial measurement of any contingent earn out, and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill in the consolidated statements of financial condition. A change in the initial estimate of any contingent earn out amount is recorded to non-interest expense in the consolidated statements of income.
Investment securities
INVESTMENT SECURITIES
The Company’s investments are classified as either: (1) held-to-maturity, which are debt securities that the Company intends to hold until maturity and are reported at amortized cost, net of allowance for credit losses; (2) trading, which are debt securities bought and held principally for the purpose of selling them in the near term and 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. Management evaluates expected credit losses on held-to-maturity debt securities on a collective or pool basis, by investment category and credit rating. The Company measures credit losses by comparing the present value of cash flows expected to be collected to the amortized cost of the security that considers historical credit loss information, adjusted for current conditions and reasonable and supportable economic forecasts. The Company’s investment securities can be classified into the following pools based on similar risk characteristics: (1) U.S. government agencies, (2) state and local municipalities, (3) domestic corporations, including trust preferred securities, and (4) non-agency securitizations. The Company’s U.S. government agency securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. For the remaining pools of securities, the credit rating of the issuers, the investment’s cash flow characteristics and the underlying instruments securitizing certain bonds are the most relevant risk characteristics of the investment portfolio. The Company’s investment policy only allows for purchases of investments with investment grade credit ratings and the Company continuously monitors for changes in credit ratings. Probability of default and loss given default rates are based on historical averages for each investment pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables, such as unemployment rates and interest rate spreads, which management considers to be both reasonable and supportable. The forecast of these macroeconomic variables is applied over a period of three years and reverts to historical averages over a two-year reversion period.

Management evaluates available-for-sale debt securities in an unrealized loss position quarterly for expected credit losses. Management first determines whether it intends to sell or if it is more likely than not that it will be required to sell the impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements, and securities portfolio management. If the Company intends to sell an available-for-sale security with a fair value below amortized cost or if it is more likely than not that it will be required to sell such a security before recovery, the security’s amortized cost is written down to fair value through current period earnings. For available-for-sale debt securities that the Company does not intend to sell or it is more likely than not that it will not be required to sell before recovery, a provision for credit losses is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. Management considers the extent to which fair value is less than amortized cost, credit ratings and other factors related to the security in assessing whether credit loss exists. The Company measures credit loss by comparing the present value of cash flows expected to be collected to the amortized cost of the security. An allowance for credit losses is measured by the difference that the present value of cash flows expected to be collected is less than the amortized cost, limited by the amount that the fair value is less than the amortized cost. The remaining difference between the security’s fair value and amortized cost (that is, the decline in fair value not attributable to credit losses) is recognized in other comprehensive income (loss), in the consolidated statements of comprehensive income and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis. Changes in the allowance for credit losses are recorded as provision for credit losses. Losses are charged
against the allowance when management believes the security is uncollectible or management intends to sell or is required to sell the security.

The recognition of interest income on a debt security is discontinued when any principal or interest payment becomes 90 days past due, at which time the debt security is placed on non-accrual status. All accrued and unpaid interest on such debt security is then reversed. Accrued interest receivable is excluded from the estimate of expected credit losses.
Federal Home Loan Bank stock
FEDERAL HOME LOAN BANK STOCK
The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company’s intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company’s holdings in the FHLB stock were recoverable at par value as of September 30, 2021 and December 31, 2020. Cash and stock dividends are reported as interest income on investments in the consolidated statements of income.
Loans and leases
LOANS AND LEASES
Loans and leases held-for-investment are stated at amortized cost. Amortized cost is the unpaid principal balance, net of deferred loan fees and costs. Loans held-for-sale are stated at the lower of cost or fair value. Interest income on loans is accrued at the contractual rate on the principal amount outstanding. Deferred loan fees and costs are amortized to interest income over the estimated life of the loan, taking into consideration scheduled payments and prepayments.

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

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

The Company is a party to financial instruments with off-balance sheet risk, such as commitments to extend credit, in the normal course of business to meet the financing needs of its customers. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the lending agreement with such customer. Commitments generally have fixed expiration dates or other termination clauses (e.g., loans due on demand) and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the unfunded commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis using the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary by the Company upon extension of a commitment, is based on management’s credit evaluation of the borrower.
Other real estate owned
OTHER REAL ESTATE OWNED
Real estate owned, other than bank premises, is recorded at fair value less estimated selling costs. Fair value is determined based on an independent appraisal. Expenses related to holding the property are charged against earnings when incurred. Depreciation is not recorded on other real estate owned (“OREO”) properties.
Allowance for credit losses and leases
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES
The allowance for credit losses is a valuation account that is deducted from the amortized cost of loans and leases to present management’s best estimate of the net amount expected to be collected. Adjustments to the allowance for credit losses are established through provisions for credit losses that are recorded in the consolidated statements of income. Loans and leases are charged off against the allowance for credit losses when management believes that the principal is uncollectible. If, at a later
time, amounts are recovered with respect to loans and leases previously charged off, the recovered amount is credited to allowance for credit losses. Accrued interest receivable is excluded from the estimate of expected credit losses.

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

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

In estimating the general allowance for credit losses for loans evaluated on a collective or pool basis, management considers past events, current conditions, and reasonable and supportable economic forecasts, including historical charge-offs and subsequent recoveries. Management also considers qualitative factors that influence our credit quality, including, but not limited to, delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, and the results of internal loan reviews. Finally, management considers the impact of changes in current and forecasted local and regional economic conditions in the markets that we serve.

Management bases the computation of the general allowance for credit losses on two factors: the primary factor and the secondary factor. The primary factor is based on the inherent risk identified by management within each of the Company’s three loan portfolios based on the historical loss experience of each loan portfolio. Management has developed a methodology that is applied to each of the three primary loan portfolios: C&I loans and leases, CRE loans and private banking loans (other than those secured by cash, marketable securities and/or cash value life insurance).

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

The allowance for credit losses represents management’s current estimate of expected credit losses in the loan and lease portfolio. Expected credit losses are estimated over the contractual term of the loans, which includes extension or renewal options that are not unconditionally cancellable by the Company and are adjusted for expected prepayments when appropriate. Management’s judgment takes into consideration past events, current conditions and reasonable and supportable economic forecasts including general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available in making such determinations, and that the present allowance for credit losses represents management’s best estimate of current expected credit losses, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance.

The lifetime loss rates are estimated by analyzing a combination of internal and external data related to historical performance of each loan pool over a complete economic cycle. Loss rates are based on historical averages for each loan pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables such as gross domestic product (“GDP”), unemployment rates, corporate bond credit spreads and commercial property values, which management considers to be both reasonable and supportable. The single, forward-looking forecast of these macroeconomic variables is applied over the remaining life of the loan pools. The development of the reasonable and supportable forecast incorporates an assumption that each macroeconomic variable will revert to a long-term expectation starting in years two to four of the forecast and largely completing within the first five years of the forecast.

The secondary factor is intended to capture additional risks related to events and circumstances that management believes have an impact on the performance of the loan portfolio that are not considered as part of the primary factor. Although this factor is more
subjective in nature, the methodology focuses on internal and external trends in pre-specified categories, or risk factors, and applies a quantitative percentage that drives the secondary factor. Nine risk factors have been identified and each risk factor is assigned an allowance level based on management’s judgment as to the expected impact of each risk factor on each loan portfolio and is monitored on a quarterly basis. As the trend in any risk factor changes, management evaluates the need for a corresponding change to occur in the allowance associated with each respective risk factor to provide the most appropriate estimate of allowance for credit losses on loans and leases.

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

Results for the nine months ended September 30, 2021 are presented under the current expected credit loss (“CECL”) methodology, in accordance with ASC Topic 326, while prior period amounts continue to be reported in accordance with 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.
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.
Goodwill and other intangible assets
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value-based test. The Company reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing a goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then a goodwill impairment test is not required.

Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company assesses whether the carrying value of these assets exceeds its fair value. If the carrying value exceeds the fair value of the assets, an impairment loss is recorded in an amount equal to any such excess and the assets are reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as its trade names, client lists and non-compete agreements are amortized over their estimated useful lives. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to 25 years. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount of such assets may not be recoverable.
Office properties and equipment
OFFICE PROPERTIES AND EQUIPMENT
Office properties and equipment are stated at cost less accumulated depreciation. Office properties include furniture, fixtures and leasehold improvements. Equipment includes computer equipment and internal use software. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to 10 years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life of the assets are capitalized and depreciated to non-interest expense over the estimated remaining life of the asset.
Operating leases
OPERATING LEASES
The Company is a lessee in noncancellable operating leases, primarily for its office spaces and other office equipment. The Company records operating leases as a right-of-use asset and an offsetting lease liability in the consolidated statements of financial condition at the present value of the unpaid lease payments. The Company generally uses its incremental borrowing rate as the discount rate for operating leases. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the right-of-use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Bank owned life insurance
BANK OWNED LIFE INSURANCE
Bank owned life insurance (“BOLI”) policies on certain officers and employees are recorded at net cash surrender value on the consolidated statements of financial condition. Upon termination of a BOLI policy, the Company receives the cash surrender value. BOLI benefits are payable to the Company upon the death of the insured. Changes in net cash surrender value are recognized as non-interest income in the consolidated statements of income.
Deposits
DEPOSITS
Deposits are stated at principal outstanding. Interest on deposits is accrued and charged to interest expense daily and is paid or credited in accordance with the terms of the respective accounts.
Borrowings
BORROWINGS
The Company records FHLB advances, line of credit borrowings and subordinated notes payable at their principal amount, net of debt issuance costs. Interest expense is recognized based on the coupon rate of the obligations. Costs associated with the acquisition of subordinated notes payable are amortized to interest expense over the expected term of the borrowing.
Income taxes
INCOME TAXES
The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities with regard to a change in tax rates is recognized in income in the period that includes the enactment date. Management assesses all available evidence to determine the amount of deferred tax assets that are more likely than not to be realized. The available evidence used in connection with the assessments includes taxable income in prior periods, projected taxable income, potential tax planning strategies and projected reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change. Changes to the evidence used in the assessments could have a material adverse effect on the Company’s results of operations in the period in which they occur. The Company considers uncertain tax positions that it has taken or expects to take on a tax return. Any interest and penalties related to unrecognized tax benefits would be recognized in income tax expense in the consolidated statements of income.
Earnings per common share
EARNINGS PER COMMON SHARE
Earnings per common share (“EPS”) is computed using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities, according to dividends and participation rights in undistributed earnings. Under this method, net earnings is reduced by the amount of dividends declared in the current period for common shareholders and participating security holders. The remaining earnings or “undistributed earnings” are allocated between common stock and participating securities to the extent that each security may share in earnings as if all the earnings for the period had been distributed.

The two-class method requires the Company’s Series C perpetual non-cumulative convertible non-voting preferred stock (the “Series C Preferred Stock”) and outstanding warrants to be treated as participating classes of securities in the computation of EPS. In addition, net income is reduced by dividends declared on all series of preferred stock to derive net income available to common
shareholders. Basic EPS is computed by dividing net income allocable to common shareholders by the weighted average number of the Company’s common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and warrants, and the vesting of restricted stock awards granted utilizing the treasury stock method.
Stock-based compensation
STOCK-BASED COMPENSATION
The Company accounts for its stock-based compensation awards based on estimated fair values of stock-based awards made to employees and directors. Compensation cost for all stock-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in compensation and employee benefits expense in the consolidated statements of income and recorded as a component of additional paid-in capital. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.
Derivatives and hedging activities
DERIVATIVES AND HEDGING ACTIVITIES
All derivatives are evaluated at inception as to whether they are hedging or non-hedging activities. All derivatives are recognized as either assets or liabilities on the consolidated statements of financial condition and measured at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in accumulated other comprehensive income (loss). When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income (loss) is recognized in the consolidated statements of income. The Company also has interest rate derivative positions that are not designated as hedging instruments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company is required to have minimum collateral posting thresholds with certain of its derivative counterparties, and this collateral is considered restricted cash.

The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. The Company generates swap fee income through these transactions. These derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company generally eliminates its interest rate exposure resulting from such transactions, and these derivatives are not designated as hedging instruments. Swap fees are based on the notional amount and weighted maturity of each individual transaction and are collected and recorded to non-interest income in the consolidated statements of income when the transaction is executed.
Fair value measurement
FAIR VALUE MEASUREMENT
Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in a principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date, using assumptions market participants would use when pricing such an asset or liability. An orderly transaction assumes exposure to the market for a customary period for marketing activities prior to the measurement date and not a forced liquidation or distressed sale. Fair value measurement and disclosure guidance provides a three-level hierarchy that prioritizes the inputs of valuation techniques used to measure fair value into three broad categories:

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

Fair value must be recorded for certain assets and liabilities every reporting period on a recurring basis or, under certain circumstances, on a non-recurring basis.
Accumulated other comprehensive income (loss)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gains and the non-credit component of unrealized losses on the Company’s debt securities available-for-sale are included in accumulated other comprehensive income (loss), net of applicable income taxes. Also included in accumulated other comprehensive income (loss) is the remaining unamortized balance of the unrealized holding gains (non-credit losses), net of applicable income taxes, that existed on the transfer date for debt securities reclassified into the held-to-maturity category from the available-for-sale category.
Unrealized holding gains (losses) on the effective portion of the Company’s cash flow hedge derivatives are included in accumulated other comprehensive income (loss), net of applicable income taxes, which will be reclassified to interest expense as interest payments are made on the Company’s debt.

Income tax effects in accumulated other comprehensive income (loss) are released as investments are sold or mature and as liabilities are extinguished.
Treasury stock
TREASURY STOCK
The repurchase of the Company’s common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings.
Recent accounting developments
RECENT ACCOUNTING DEVELOPMENTS
In July 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-5, Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments. The amendments are effective for fiscal years beginning after December 15, 2021, for all entities, and for interim periods within those fiscal years for public business entities and interim periods within fiscal years beginning after December 15, 2022, for all other entities. The amendments in this update address stakeholders’ concerns by amending the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3; and (2) the lessor would have otherwise recognized a day-one loss. The Company is currently evaluating the impact of adopting ASU 2021-05 on its consolidated financial statements.

In April 2021, the FASB issued ASU 2021-04, which included Topic 260: Earnings Per Share. This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options ("warrants") due to a lack of explicit guidance in the FASB Codification. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements.

In January 2021, the FASB issued ASU 2021-01 - Reference Rate Reform (Topic 848): Scope. This ASU clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. The amendments in this ASU are elective and apply to all entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in this ASU are effective immediately for all entities. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements, but the Company will consider this guidance as contracts are transitioned from LIBOR to another reference rate.
Reclassification
RECLASSIFICATION
Certain items previously reported have been reclassified to conform with the current year’s reporting presentation and are considered immaterial.
v3.21.2
Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Schedule of investment securities available-for-sale
Debt securities available-for-sale and held-to-maturity were comprised of the following as of September 30, 2021:
September 30, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$135,711 $1,509 $199 $— $137,021 
Non-agency residential mortgage-backed securities244,744 1 1,057 — 243,688 
Trust preferred securities18,335 445 2 — 18,778 
Agency collateralized mortgage obligations17,495 63 — — 17,558 
Agency mortgage-backed securities125,982 38 915 — 125,105 
Agency debentures7,600 688 — — 8,288 
Municipal bonds5,197 — 26 — 5,171 
Total debt securities available-for-sale$555,064 $2,744 $2,199 $— $555,609 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
September 30, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
Corporate bonds$28,168 $925 $23 29,070 $46 
Agency debentures37,199 659 228 37,630 — 
Municipal bonds1,270 2 — 1,272 — 
Non-agency residential mortgage-backed securities205,661 52 1,781 203,932 — 
Agency mortgage-backed securities545,877 638 7,108 539,407 — 
U.S. treasury notes39,073 — 564 38,509 — 
Total debt securities held-to-maturity$857,248 $2,276 $9,704 $849,820 $46 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.
Debt securities available-for-sale and held-to-maturity were comprised of the following as of December 31, 2020:
December 31, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$157,452 $1,538 $526 — $158,464 
Trust preferred securities18,228 57 198 — 18,087 
Agency collateralized mortgage obligations22,058 36 5 — 22,089 
Agency mortgage-backed securities406,741 3,595 209 — 410,127 
Agency debentures8,013 790 — — 8,803 
Total debt securities available-for-sale$612,492 $6,016 $938 — $617,570 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
December 31, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
Corporate bonds$28,672 $566 $1 $29,237 $79 
Agency debentures48,130 1,051 — 49,181 — 
Municipal bonds6,577 45 — 6,622 — 
Non-agency residential mortgage-backed securities124,152 237 217 124,172 70 
Agency mortgage-backed securities4,309 778 — 5,087 — 
Total debt securities held-to-maturity$211,840 $2,677 $218 $214,299 $149 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.
Schedule of investment securities held-to-maturity
Debt securities available-for-sale and held-to-maturity were comprised of the following as of September 30, 2021:
September 30, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$135,711 $1,509 $199 $— $137,021 
Non-agency residential mortgage-backed securities244,744 1 1,057 — 243,688 
Trust preferred securities18,335 445 2 — 18,778 
Agency collateralized mortgage obligations17,495 63 — — 17,558 
Agency mortgage-backed securities125,982 38 915 — 125,105 
Agency debentures7,600 688 — — 8,288 
Municipal bonds5,197 — 26 — 5,171 
Total debt securities available-for-sale$555,064 $2,744 $2,199 $— $555,609 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
September 30, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
Corporate bonds$28,168 $925 $23 29,070 $46 
Agency debentures37,199 659 228 37,630 — 
Municipal bonds1,270 2 — 1,272 — 
Non-agency residential mortgage-backed securities205,661 52 1,781 203,932 — 
Agency mortgage-backed securities545,877 638 7,108 539,407 — 
U.S. treasury notes39,073 — 564 38,509 — 
Total debt securities held-to-maturity$857,248 $2,276 $9,704 $849,820 $46 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.
Debt securities available-for-sale and held-to-maturity were comprised of the following as of December 31, 2020:
December 31, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$157,452 $1,538 $526 — $158,464 
Trust preferred securities18,228 57 198 — 18,087 
Agency collateralized mortgage obligations22,058 36 5 — 22,089 
Agency mortgage-backed securities406,741 3,595 209 — 410,127 
Agency debentures8,013 790 — — 8,803 
Total debt securities available-for-sale$612,492 $6,016 $938 — $617,570 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
December 31, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
Corporate bonds$28,672 $566 $1 $29,237 $79 
Agency debentures48,130 1,051 — 49,181 — 
Municipal bonds6,577 45 — 6,622 — 
Non-agency residential mortgage-backed securities124,152 237 217 124,172 70 
Agency mortgage-backed securities4,309 778 — 5,087 — 
Total debt securities held-to-maturity$211,840 $2,677 $218 $214,299 $149 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.
Interest income on investment securities
Interest income on investment securities was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
Taxable interest income$4,305 $3,436 $10,295 $10,437 
Non-taxable interest income35 55 92 192 
Dividend income137 196 473 899 
Total interest income on investment securities$4,477 $3,687 $10,860 $11,528 
Schedule of contractual maturities of debt securities
As of September 30, 2021, the contractual maturities of the debt securities were:
September 30, 2021
Available-for-SaleHeld-to-Maturity
(Dollars in thousands)Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Due in less than one year$27,500 $27,584 $860 $861 
Due from one to five years60,246 61,285 15,578 16,075 
Due from five to ten years57,461 57,911 98,522 98,665 
Due after ten years409,857 408,829 742,288 734,219 
Total debt securities$555,064 $555,609 $857,248 $849,820 
Schedule of proceeds and realized gains and losses from investments securities
Proceeds from the sale and call of debt securities available-for-sale and held-to-maturity and related gross realized gains and losses were:
Available-for-SaleHeld-to-MaturityAvailable-for-SaleHeld-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)20212020202120202021202020212020
Proceeds from sales$47,001 $64,363 $— $— $121,711 $120,400 $— $— 
Proceeds from calls— — 101,202 118,745 13,000 3,580 144,757 366,503 
Total proceeds$47,001 $64,363 $101,202 $118,745 $134,711 $123,980 $144,757 $366,503 
Gross realized gains$25 $3,740 $27 $4 $123 $3,762 $27 $53 
Gross realized losses— — 19 — 1 — 19 — 
Net realized gains$25 $3,740 $8 $4 $122 $3,762 $8 $53 
Schedule of debt securities, held-to-maturity, allowance for credit loss
Changes in the allowance for credit losses on held-to-maturity securities were as follows for the three and nine months ended September 30, 2021:

Three Months Ended September 30, 2021
(Dollars in thousands)Corporate
Bonds		Non-agency SecuritizationsMunicipal
Bonds		Agency Debentures and SecuritizationsU.S. Treasury NotesTotal
Balance, beginning of period$47 $23 $— $— $— $70 
Provision (credit) for credit losses(1)(23)— — — (24)
Charge-offs— — — — — — 
Recoveries— — — — — — 
Balance, end of period$46 $— $— $— $— $46 

Nine Months Ended September 30, 2021
(Dollars in thousands)Corporate
Bonds		Non-agency SecuritizationsMunicipal
Bonds		Agency Debentures and SecuritizationsU.S. Treasury NotesTotal
Balance, beginning of period$79 $70 $— $— $— $149 
Provision (credit) for credit losses(33)(70)— — — (103)
Charge-offs— — — — — — 
Recoveries— — — — — — 
Balance, end of period$46 $— $— $— $— $46 
Schedule of fair value and gross unrealized losses on investment equity securities
The following tables show the fair value and gross unrealized losses on debt securities available-for-sale, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2021 and December 31, 2020:
September 30, 2021
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
Corporate bonds$9,518 $84 $9,886 $115 $19,404 $199 
Non-agency residential mortgage-backed securities170,302 1,057 — — 170,302 1,057 
Trust preferred securities— — 2,373 2 2,373 2 
Agency mortgage-backed securities123,874 915 — — 123,874 915 
Municipal bonds5,171 26 — — 5,171 26 
Temporarily impaired debt securities available-for-sale (1)
$308,865 $2,082 $12,259 $117 $321,124 $2,199 
(1)The number of investment positions with unrealized losses totaled 22 for available-for-sale securities.

December 31, 2020
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
Corporate bonds$28,796 $277 $9,751 $249 $38,547 $526 
Trust preferred securities13,313 198 — — 13,313 198 
Agency collateralized mortgage obligations— — 9,863 5 9,863 5 
Agency mortgage-backed securities89,931 209 — — 89,931 209 
Temporarily impaired debt securities available-for-sale (1)
$132,040 $684 $19,614 $254 $151,654 $938 
(1)The number of investment positions with unrealized losses totaled 33 for available-for-sale securities.
Schedule of debt securities, held-to-maturity, credit quality indicator
The Company monitors the credit quality of debt securities held-to-maturity including credit ratings quarterly. The following tables present the amortized costs basis of debt securities held-to-maturity by Moody’s bond credit rating.
September 30, 2021
(Dollars in thousands)AaaAaABaaBaTotal
Debt securities held-to-maturity:
Corporate bonds$— $— $— $28,168 $— $28,168 
Agency debentures37,199 — — — — 37,199 
Municipal bonds— 480 790 — — 1,270 
Non-agency residential mortgage-backed securities205,661 — — — — 205,661 
Agency mortgage-backed securities545,877 — — — — 545,877 
U.S. treasury notes39,073 — — — — 39,073 
Total debt securities held-to-maturity$827,810 $480 $790 $28,168 $— $857,248 
v3.21.2
Loans and Leases (Tables)
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Schedule of loans receivable
Loans and leases held-for-investment were comprised of the following:
September 30, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$6,190,874 $1,336,331 $2,329,762 $9,856,967 
Net deferred loan costs (fees)13,135 4,486 (5,577)12,044 
Loans and leases held-for-investment, net of deferred fees and costs6,204,009 1,340,817 2,324,185 9,869,011 
Allowance for credit losses on loans and leases(2,156)(10,796)(19,411)(32,363)
Loans and leases held-for-investment, net$6,201,853 $1,330,021 $2,304,774 $9,836,648 
December 31, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$4,797,881 $1,269,248 $2,160,784 $8,227,913 
Net deferred loan costs (fees)9,919 4,904 (5,318)9,505 
Loans and leases held-for-investment, net of deferred fees and costs4,807,800 1,274,152 2,155,466 8,237,418 
Allowance for credit losses on loans and leases(2,047)(5,254)(27,329)(34,630)
Loans and leases held-for-investment, net$4,805,753 $1,268,898 $2,128,137 $8,202,788 
v3.21.2
Allowance for Credit Losses on Loans and Leases (Tables)
 9 Months Ended
Sep. 30, 2021
Allowance for Credit Losses and Leases [Abstract]  
Schedule of loans by credit quality indicator
The following table presents the amortized cost of loans by portfolio, risk rating and year of origination:

As of September 30, 2021
(Dollars in thousands)20212020201920182017Prior
Revolving
Loans (1)
Total
Private Banking:
Pass$23,269 $58,664 $31,480 $54,348 $7,195 $52,441 $5,976,612 $6,204,009 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total private banking loans23,269 58,664 31,480 54,348 7,195 52,441 5,976,612 6,204,009 
Commercial and Industrial:
Pass129,138 185,460 177,496 47,837 40,650 26,281 709,469 1,316,331 
Special mention— 2,088 1,780 — — 193 11,800 15,861 
Substandard— — — — — — — — 
Doubtful— 750 — 7,875 — — — 8,625 
Total commercial and industrial loans129,138 188,298 179,276 55,712 40,650 26,474 721,269 1,340,817 
Commercial Real Estate:
Pass359,655 537,743 511,049 363,399 198,938 275,371 59,056 2,305,211 
Special mention— 526 — 628 — 5,303 — 6,457 
Substandard— 262 5,395 — — 6,860 — 12,517 
Doubtful— — — — — — — — 
Total commercial real estate loans359,655 538,531 516,444 364,027 198,938 287,534 59,056 2,324,185 
Loans and leases held-for-investment$512,062 $785,493 $727,200 $474,087 $246,783 $366,449 $6,756,937 $9,869,011 
(1)The Company had no revolving loans which were converted to term loans included in loans and leases held-for-investment as of September 30, 2021.
As of December 31, 2020
(Dollars in thousands)20202019201820172016Prior
Revolving
Loans (1)
Total
Private Banking:
Pass$64,829 $44,210 $57,081 $7,736 $12,040 $55,092 $4,566,296 $4,807,284 
Special mention— — — — — — — — 
Substandard— 516 — — — — — 516 
Doubtful— — — — — — — — 
Total private banking loans64,829 44,726 57,081 7,736 12,040 55,092 4,566,296 4,807,800 
Commercial and Industrial:
Pass216,459 223,189 88,212 44,575 9,383 20,709 651,900 1,254,427 
Special mention1,795 — 5,416 — — — 3,431 10,642 
Substandard750 — 7,875 — — — 458 9,083 
Doubtful— — — — — — — — 
Total commercial and industrial loans219,004 223,189 101,503 44,575 9,383 20,709 655,789 1,274,152 
Commercial Real Estate:
Pass514,920 617,120 435,708 202,001 181,108 134,700 38,802 2,124,359 
Special mention446 5,395 4,308 — 1,186 145 — 11,480 
Substandard91 — 6,296 2,926 7,054 3,260 — 19,627 
Doubtful— — — — — — — — 
Total commercial real estate loans515,457 622,515 446,312 204,927 189,348 138,105 38,802 2,155,466 
Loans and leases held-for-investment$799,290 $890,430 $604,896 $257,238 $210,771 $213,906 $5,260,887 $8,237,418 
(1)The Company had no revolving loans which were converted to term loans included in loans and leases held-for-investment as of December 31, 2020.
Schedule of changes in allowance for loan losses
Changes in the allowance for credit losses on loans and leases were as follows for the three and nine months ended September 30, 2021 and 2020:

Three Months Ended September 30, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,107 $8,969 $21,501 $32,577 
Provision (credit) for credit losses49 1,949 (1,974)24 
Charge-offs— (122)(116)(238)
Recoveries— — — — 
Balance, end of period$2,156 $10,796 $19,411 $32,363 
Three Months Ended September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,151 $7,546 $13,579 $23,276 
Provision for credit losses59 226 7,145 7,430 
Charge-offs— — — — 
Recoveries— — — — 
Balance, end of period$2,210 $7,772 $20,724 $30,706 
Nine Months Ended September 30, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,047 $5,254 $27,329 $34,630 
Provision (credit) for credit losses109 5,750 (5,436)423 
Charge-offs— (321)(2,482)(2,803)
Recoveries— 113 — 113 
Balance, end of period$2,156 $10,796 $19,411 $32,363 
Nine Months Ended September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$1,973 $5,262 $6,873 $14,108 
Provision for credit losses408 2,169 13,851 16,428 
Charge-offs(171)— — (171)
Recoveries— 341 — 341 
Balance, end of period$2,210 $7,772 $20,724 $30,706 
Schedule of past due loans by class
The following tables present the age analysis of past due loans and leases segregated by class:
September 30, 2021
(Dollars in thousands)30-59 Days
 Past Due		60-89 Days
 Past Due		90 Days or More Past Due Total Past DueCurrentTotal
Private banking$299 $2,398 $— $2,697 $6,201,312 $6,204,009 
Commercial and industrial— — 8,625 8,625 1,332,192 1,340,817 
Commercial real estate— — — — 2,324,185 2,324,185 
Loans and leases held-for-investment$299 $2,398 $8,625 $11,322 $9,857,689 $9,869,011 
December 31, 2020
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due90 Days or More Past Due Total Past DueCurrentTotal
Private banking$250 $— $— $250 $4,807,550 $4,807,800 
Commercial and industrial— — 458 458 1,273,694 1,274,152 
Commercial real estate2,926 — 6,296 9,222 2,146,244 2,155,466 
Loans and leases held-for-investment$3,176 $— $6,754 $9,930 $8,227,488 $8,237,418 
Schedule of loans considered to be impaired
The following tables present the Company’s amortized cost of individually evaluated loans and related information on those loans as of and for the nine months ended September 30, 2021 and as of and for the twelve months ended December 31, 2020:
As of and for the Nine Months Ended September 30, 2021
(Dollars in thousands)Amortized
Cost		Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial8,625 8,625 6,900 8,625 — 
Commercial real estate— — — — — 
Total with a related allowance recorded8,625 8,625 6,900 8,625 — 
Without a related allowance recorded:
Private banking— — — — — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded— — — — — 
Total:
Private banking— — — — — 
Commercial and industrial8,625 8,625 6,900 8,625 — 
Commercial real estate— — — — — 
Total$8,625 $8,625 $6,900 $8,625 $— 
As of and for the Twelve Months Ended December 31, 2020
(Dollars in thousands)Amortized
Cost		Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial458 457 103 458 — 
Commercial real estate9,222 9,251 1,885 9,222 — 
Total with a related allowance recorded9,680 9,708 1,988 9,680 — 
Without a related allowance recorded:
Private banking— — — — — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded— — — — — 
Total:
Private banking— — — — — 
Commercial and industrial458 457 103 458 — 
Commercial real estate9,222 9,251 1,885 9,222 — 
Total$9,680 $9,708 $1,988 $9,680 $— 
Schedule of allowance for credit losses and investment in loans by class
The following tables present the allowance for credit losses on loans and leases and amortized costs of individually evaluated loans:
September 30, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for credit losses on loans and leases:
Individually evaluated for impairment$— $6,900 $— $6,900 
Collectively evaluated for impairment2,156 3,896 19,411 25,463 
Total allowance for credit losses on loans and leases$2,156 $10,796 $19,411 $32,363 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $8,625 $— $8,625 
Collectively evaluated for impairment6,204,009 1,332,192 2,324,185 9,860,386 
Loans and leases held-for-investment$6,204,009 $1,340,817 $2,324,185 $9,869,011 
December 31, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for credit losses on loans and leases:
Individually evaluated for impairment$— $103 $1,885 $1,988 
Collectively evaluated for impairment2,047 5,151 25,444 32,642 
Total allowance for credit losses on loans and leases$2,047 $5,254 $27,329 $34,630 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $458 $9,222 $9,680 
Collectively evaluated for impairment4,807,800 1,273,694 2,146,244 8,227,738 
Loans and leases held-for-investment$4,807,800 $1,274,152 $2,155,466 $8,237,418 
Schedule of financial effects of modifications The financial effects of our modifications made to loans newly designated as TDRs during the nine months ended September 30, 2021, were as follows:
Nine Months Ended September 30, 2021
(Dollars in thousands)CountRecorded Investment at the time of ModificationCurrent Recorded InvestmentAllowance for Credit Losses on Loans and Leases at the time of ModificationCurrent Allowance for Credit Losses on Loans and Leases
Commercial Real Estate:
Extended term, deferred principal2$4,454 $— $445 $— 
Total2$4,454 $— $445 $— 
v3.21.2
Deposits (Tables)
 9 Months Ended
Sep. 30, 2021
Deposits [Abstract]  
Schedule of deposits
As of September 30, 2021 and December 31, 2020, deposits were comprised of the following:
Interest Rate
Range		Weighted Average
Interest Rate		Balance
(Dollars in thousands)September 30,
2021		September 30,
2021		December 31,
2020		September 30,
2021		December 31,
2020
Demand and savings accounts:
Noninterest-bearing checking accounts———$593,342 $456,426 
Interest-bearing checking accounts
0.05 to 1.70%
0.38%0.38%4,057,005 3,068,834 
Money market deposit accounts
0.08 to 3.25%
0.41%0.56%5,220,946 3,927,797 
Total demand and savings accounts9,871,293 7,453,057 
Certificates of deposit
0.02 to 3.15%
0.41%1.08%884,848 1,036,032 
Total deposits$10,756,141 $8,489,089 
Weighted average rate on interest-bearing accounts0.40%0.56%
Schedule of maturities of time deposits
The contractual maturity of certificates of deposit was as follows:
(Dollars in thousands)September 30,
2021		December 31,
2020
12 months or less$756,573 $892,427 
12 months to 24 months112,316 132,443 
24 months to 36 months15,959 11,162 
Total$884,848 $1,036,032 
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)2021202020212020
Interest-bearing checking accounts$3,682 $3,280 $9,689 $11,213 
Money market deposit accounts5,794 6,944 17,395 28,975 
Certificates of deposit1,004 3,674 4,256 16,907 
Total interest expense on deposits$10,480 $13,898 $31,340 $57,095 
v3.21.2
Borrowings (Tables)
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Schedule of borrowings
As of September 30, 2021 and December 31, 2020, borrowings were comprised of the following:
September 30, 2021December 31, 2020
(Dollars in thousands)Interest RateEnding BalanceMaturity DateInterest RateEnding BalanceMaturity Date
FHLB borrowings:
Issued 9/20/20210.26%$50,000 12/20/2021—%$— 
Issued 9/2/20210.34%50,000 12/2/2021—%— 
Issued 9/1/20210.31%150,000 12/1/2021—%— 
Issued 12/21/2020—%— 0.39%50,000 3/22/2021
Issued 12/2/2020—%— 0.33%50,000 3/2/2021
Issued 12/1/2020—%— 0.33%150,000 3/1/2021
Issued 10/8/2020—%— 0.39%50,000 1/8/2021
Line of credit borrowings4.00%10,000 2/18/20224.25%5,000 10/17/2021
Subordinated notes payable (net of debt issuance costs of $1,846 and $2,007, respectively)
5.75%95,654 5/15/20305.75%95,493 5/15/2030
Total borrowings, net$355,654 $400,493 
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)2021202020212020
FHLB borrowings$1,102 $1,392 $3,256 $4,711 
Line of credit borrowings— — 55 261 
Subordinated notes payable1,456 1,458 4,366 2,138 
Total interest expense on borrowings$2,558 $2,850 $7,677 $7,110 
v3.21.2
Stock Transactions (Tables)
 9 Months Ended
Sep. 30, 2021
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]  
Schedule of preferred and common shares, activity
The tables below show the changes in the Company’s preferred and common shares outstanding during the periods indicated:
Number of
Preferred Shares Outstanding		Number of
Common Shares
Outstanding		Number of
Treasury Shares
Balance, December 31, 2019120,750 29,355,986 2,126,422 
Issuance of restricted common stock— 607,323 — 
Forfeitures of restricted common stock— (11,018)— 
Exercise of stock options— 33,500 — 
Purchase of treasury stock— (40,000)40,000 
Increase in treasury stock related to equity awards— (126,148)126,148 
Reissuance of treasury stock— 8,500 (8,500)
Balance, September 30, 2020120,750 29,828,143 2,284,070 
Balance, December 31, 2020121,400 32,620,150 2,299,422 
Issuance of restricted common stock— 595,886 — 
Forfeitures of restricted common stock— (12,047)— 
Preferred stock dividend22 — — 
Exercise of stock options— 50,300 — 
Increase in treasury stock related to equity awards— (99,946)99,946 
Balance, September 30, 2021121,422 33,154,343 2,399,368 
v3.21.2
Regulatory Capital (Tables)
 9 Months Ended
Sep. 30, 2021
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, 2021 and December 31, 2020:
September 30, 2021
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$889,197 13.71 %$518,882 8.00 % N/AN/A
Bank$864,503 13.38 %$516,720 8.00 %$645,900 10.00 %
Tier 1 risk-based capital ratio
Company$764,932 11.79 %$389,162 6.00 % N/AN/A
Bank$835,892 12.94 %$387,540 6.00 %$516,720 8.00 %
Common equity tier 1 risk-based capital ratio
Company$584,489 9.01 %$291,871 4.50 % N/AN/A
Bank$835,892 12.94 %$290,655 4.50 %$419,835 6.50 %
Tier 1 leverage ratio
Company$764,932 6.61 %$462,757 4.00 % N/AN/A
Bank$835,892 7.24 %$461,884 4.00 %$577,355 5.00 %
December 31, 2020
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$833,819 14.12 %$472,267 8.00 %N/AN/A
Bank$789,273 13.41 %$470,820 8.00 %$588,525 10.00 %
Tier 1 risk-based capital ratio
Company$707,711 11.99 %$354,200 6.00 %N/AN/A
Bank$758,658 12.89 %$353,115 6.00 %$470,820 8.00 %
Common equity tier 1 risk-based capital ratio
Company$530,568 8.99 %$265,650 4.50 %N/AN/A
Bank$758,658 12.89 %$264,836 4.50 %$382,542 6.50 %
Tier 1 leverage ratio
Company$707,711 7.29 %$388,408 4.00 %N/AN/A
Bank$758,658 7.83 %$387,626 4.00 %$484,533 5.00 %
v3.21.2
Earnings Per Common Share (Tables)
 9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Schedule of earnings per share, basic and diluted
The computation of basic and diluted earnings per common share for the periods presented were as follows:

Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands, except per share data)2021202020212020
Basic earnings per common share:
Net income$20,016 $9,329 $54,996 $32,624 
Less: Preferred dividends on Series A and Series B1,963 1,962 5,887 5,886 
Less: Preferred dividends on Series C1,134 — 3,346 — 
Net income available to common shareholders$16,919 $7,367 $45,763 $26,738 
Allocation of net income available:
Common shareholders$14,274 $7,367 $38,679 $26,738 
Series C convertible preferred shareholders2,225 — 5,944 — 
Warrant shareholders420 — 1,140 — 
Total$16,919 $7,367 $45,763 $26,738 
Basic weighted average common shares outstanding:
Basic common shares31,357,356 28,286,250 31,287,924 28,230,180 
Series C convertible preferred stock, as-if converted4,887,272 — 4,807,858 — 
Warrants, as-if exercised922,438 — 922,438 — 
Basic earnings per common share$0.46 $0.26 $1.24 $0.95 
Diluted earnings per common share:
Income available to common shareholders after allocation$14,274 $7,367 $38,679 $26,738 
Diluted weighted average common shares outstanding:
Basic common shares31,357,356 28,286,250 31,287,924 28,230,180 
Restricted stock - dilutive664,729 303,138 884,714 313,726 
Stock options - dilutive124,137 85,055 144,229 135,377 
Diluted common shares32,146,222 28,674,443 32,316,867 28,679,283 
Diluted earnings per common share$0.44 $0.26 $1.20 $0.93 
Three Months Ended September 30,Nine Months Ended September 30,
Anti-dilutive shares:2021202020212020
Restricted stock10,750 785,762 11,500 566,498 
Stock options— 5,500 — — 
Series C convertible preferred stock, as-if converted4,887,272 — 4,887,272 — 
Warrants, as-if exercised922,438 — 922,438 — 
Total anti-dilutive shares
5,820,460 791,262 5,821,210 566,498 
Schedule of antidilutive securities excluded from computation of earnings per share
The computation of basic and diluted earnings per common share for the periods presented were as follows:

Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands, except per share data)2021202020212020
Basic earnings per common share:
Net income$20,016 $9,329 $54,996 $32,624 
Less: Preferred dividends on Series A and Series B1,963 1,962 5,887 5,886 
Less: Preferred dividends on Series C1,134 — 3,346 — 
Net income available to common shareholders$16,919 $7,367 $45,763 $26,738 
Allocation of net income available:
Common shareholders$14,274 $7,367 $38,679 $26,738 
Series C convertible preferred shareholders2,225 — 5,944 — 
Warrant shareholders420 — 1,140 — 
Total$16,919 $7,367 $45,763 $26,738 
Basic weighted average common shares outstanding:
Basic common shares31,357,356 28,286,250 31,287,924 28,230,180 
Series C convertible preferred stock, as-if converted4,887,272 — 4,807,858 — 
Warrants, as-if exercised922,438 — 922,438 — 
Basic earnings per common share$0.46 $0.26 $1.24 $0.95 
Diluted earnings per common share:
Income available to common shareholders after allocation$14,274 $7,367 $38,679 $26,738 
Diluted weighted average common shares outstanding:
Basic common shares31,357,356 28,286,250 31,287,924 28,230,180 
Restricted stock - dilutive664,729 303,138 884,714 313,726 
Stock options - dilutive124,137 85,055 144,229 135,377 
Diluted common shares32,146,222 28,674,443 32,316,867 28,679,283 
Diluted earnings per common share$0.44 $0.26 $1.20 $0.93 
Three Months Ended September 30,Nine Months Ended September 30,
Anti-dilutive shares:2021202020212020
Restricted stock10,750 785,762 11,500 566,498 
Stock options— 5,500 — — 
Series C convertible preferred stock, as-if converted4,887,272 — 4,887,272 — 
Warrants, as-if exercised922,438 — 922,438 — 
Total anti-dilutive shares
5,820,460 791,262 5,821,210 566,498 
v3.21.2
Derivatives and Hedging Activity (Tables)
 9 Months Ended
Sep. 30, 2021
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, 2021 and December 31, 2020:
Asset DerivativesLiability Derivatives
as of September 30, 2021as of September 30, 2021
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$276 Other liabilities$4,786 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets100,718 Other liabilities100,727 
TotalOther assets$100,994 Other liabilities$105,513 
Asset DerivativesLiability Derivatives
as of December 31, 2020as of December 31, 2020
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$— Other liabilities$9,082 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets144,333 Other liabilities144,351 
TotalOther assets$144,333 Other liabilities$153,433 
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, 2021 and December 31, 2020:
Offsetting of Derivative Assets
Gross Amounts of Recognized AssetsGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets
presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial PositionNet Amount
(Dollars in thousands)Financial InstrumentsCash Collateral Received
September 30, 2021$100,994 $— $100,994 $(10,560)$— $90,434 
December 31, 2020$144,333 $— $144,333 $(94)$— $144,239 
Schedule of offsetting derivative liabilities
Offsetting of Derivative Liabilities
Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Statement of Financial PositionNet Amounts of Liabilities
presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial PositionNet Amount
(Dollars in thousands)Financial InstrumentsCash Collateral Posted
September 30, 2021$105,513 $— $105,513 $(10,560)$(80,719)$14,234 
December 31, 2020$153,433 $— $153,433 $(94)$(150,238)$3,101 
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, 2021, were as follows:
(Dollars in thousands)Notional
Amount
Effective
Rate (1)
Estimated Increase/
(Decrease) to Interest
Expense in the Next
Twelve Months		Maturity
Date		Remaining Term
(in Months)
Interest rate products:
Issued 5/30/2019$50,000 2.05%$641 6/1/20228
Issued 5/30/201950,000 2.03%942 6/1/202320
Issued 5/30/201950,000 2.04%948 6/1/202432
Issued 3/2/202050,000 0.98%410 3/2/202541
Issued 3/20/202050,000 0.60%219 3/20/202542
Total$250,000 $3,160 
(1)The effective rate is adjusted for the difference between the three-month FHLB advance rate and three-month LIBOR.
Schedule of derivative instruments, gain (loss) in statement of financial performance
The tables below present the effective portion of the Company’s cash flow hedge instruments in the unaudited condensed consolidated statements of income and accumulated other comprehensive income (loss):
Three Months Ended September 30,Three Months Ended September 30,
(Dollars in thousands)2021202020212020
Derivatives designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesRealized Gain (Loss) Recognized in Income on DerivativesUnrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate productsInterest expense$(903)$(1,028)$(74)$32 

Nine Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
Derivatives designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesRealized Gain (Loss) Recognized in Income on DerivativesUnrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate productsInterest expense$(2,616)$(1,647)$1,733 $(9,258)
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)2021202020212020
Derivatives not designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesAmount of Gain (Loss) Recognized in Income on DerivativesAmount of Gain (Loss) Recognized in Income on Derivatives
Interest rate productsNon-interest income$10 $14 $33 $(51)
v3.21.2
Disclosures About Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Schedule of fair value, assets and liabilities measured on recurring basis
The following tables represent assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020:
September 30, 2021
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $137,021 $— $137,021 
Non-agency residential mortgage-backed securities— 243,688 — 243,688 
Trust preferred securities— 18,778 — 18,778 
Agency collateralized mortgage obligations— 17,558 — 17,558 
Agency mortgage-backed securities— 125,105 — 125,105 
Agency debentures— 8,288 — 8,288 
Municipal bonds— 5,171 — 5,171 
Equity securities5,000 — — 5,000 
Interest rate swaps— 100,994 — 100,994 
Total financial assets5,000 656,603 — 661,603 
Financial liabilities:
Interest rate swaps— 105,513 — 105,513 
Total financial liabilities$— $105,513 $— $105,513 
December 31, 2020
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $158,464 $— $158,464 
Trust preferred securities— 18,087 — 18,087 
Agency collateralized mortgage obligations— 22,089 — 22,089 
Agency mortgage-backed securities— 410,127 — 410,127 
Agency debentures— 8,803 — 8,803 
Interest rate swaps— 144,333 — 144,333 
Total financial assets— 761,903 — 761,903 
Financial liabilities:
Interest rate swaps— 153,433 — 153,433 
Total financial liabilities$— $153,433 $— $153,433 
Schedule of fair value measurements, nonrecurring
The following tables represent the balances of assets measured at fair value on a non-recurring basis as of September 30, 2021 and December 31, 2020:
September 30, 2021
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $1,725 $1,725 
Other real estate owned— — 2,178 2,178 
Total assets$— $— $3,903 $3,903 
December 31, 2020
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $7,692 $7,692 
Other real estate owned— — 2,724 2,724 
Total assets$— $— $10,416 $10,416 
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, 2021 and December 31, 2020:
September 30, 2021
(Dollars in thousands)Fair Value
Valuation Techniques (1)(2)
Significant Unobservable InputsWeighted Average Discount Rate
Loans measured for impairment, net$1,725 CollateralLiquidation value and discount due to salability conditions80%
Other real estate owned$2,178 CollateralAppraisal value and discount due to salability conditions15%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.
(2)The collateral which is used in the valuation of these loans is commercial real estate.
December 31, 2020
(Dollars in thousands)Fair Value
Valuation Techniques (1)(2)
Significant Unobservable InputsWeighted Average
Discount Rate
Loans measured for impairment, net$7,692 CollateralAppraisal value and discount due to salability conditions23%
Other real estate owned$2,724 CollateralAppraisal value and discount due to salability conditions12%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.
(2)The collateral which is used in the valuation of these loans is commercial real estate.
Schedule of fair and carrying value of financial assets and liabilities
The following table summarizes the carrying amounts and estimated fair values of financial instruments:
September 30, 2021December 31, 2020
(Dollars in thousands)Fair Value
Level		Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Financial assets:
Cash and cash equivalents1$469,932 $469,932 $435,442 $435,442 
Debt securities available-for-sale2555,609 555,609 617,570 617,570 
Debt securities held-to-maturity, net2857,202 849,820 211,691 214,299 
Equity securities15,000 5,000 — — 
Federal Home Loan Bank stock211,802 11,802 13,284 13,284 
Loans and leases held-for-investment, net39,836,648 9,815,390 8,202,788 8,199,922 
Accrued interest receivable221,872 21,872 18,783 18,783 
Investment management fees receivable, net28,908 8,908 7,935 7,935 
Bank owned life insurance298,308 98,308 71,787 71,787 
Other real estate owned32,178 2,178 2,724 2,724 
Interest rate swaps2100,994 100,994 144,333 144,333 
Financial liabilities:
Deposits2$10,756,141 $10,767,182 $8,489,089 $8,510,799 
Borrowings, net2355,654 364,201 400,493 402,714 
Interest rate swaps2105,513 105,513 153,433 153,433 
v3.21.2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Sep. 30, 2021
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,
20212020
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$3,227 $(3,859)$(632)$1,692 $(8,222)$(6,530)
Change in unrealized holding gains (losses)(1,528)(56)(1,584)3,088 27 3,115 
Losses (gains) reclassified from other comprehensive income(4)685 681 (2,835)780 (2,055)
Net other comprehensive income (loss)(1,532)629 (903)253 807 1,060 
Balance, end of period$1,695 $(3,230)$(1,535)$1,945 $(7,415)$(5,470)

Nine Months Ended September 30,
20212020
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$3,834 $(6,531)$(2,697)$2,756 $(1,624)$1,132 
Change in unrealized holding gains (losses)(2,061)1,316 (745)2,041 (7,040)(4,999)
Losses (gains) reclassified from other comprehensive income(78)1,985 1,907 (2,852)1,249 (1,603)
Net other comprehensive income (loss)(2,139)3,301 1,162 (811)(5,791)(6,602)
Balance, end of period$1,695 $(3,230)$(1,535)$1,945 $(7,415)$(5,470)
v3.21.2
Segments (Tables)
 9 Months Ended
Sep. 30, 2021
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,
2021		December 31,
2020
Assets:
Bank$12,074,984 $9,819,719 
Investment management84,822 86,150 
Parent and other(938)(9,053)
Total assets$12,158,868 $9,896,816 
Three Months Ended September 30, 2021Three Months Ended September 30, 2020
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$59,705 $— $— $59,705 $50,222 $— $— $50,222 
Interest expense11,591 — 1,447 13,038 15,297 — 1,451 16,748 
Net interest income (loss)48,114 — (1,447)46,667 34,925 — (1,451)33,474 
Provision for credit losses— — — — 7,430 — — 7,430 
Net interest income (loss) after provision for credit losses48,114 — (1,447)46,667 27,495 — (1,451)26,044 
Non-interest income:
Investment management fees— 9,780 (344)9,436 — 8,293 (198)8,095 
Net gain on the sale and call of debt securities33 — — 33 3,744 — — 3,744 
Other non-interest income (loss)4,768 (7)— 4,761 5,027 23 — 5,050 
Total non-interest income (loss)4,801 9,773 (344)14,230 8,771 8,316 (198)16,889 
Non-interest expense:
Intangible amortization expense— 477 — 477 — 478 — 478 
Other non-interest expense28,975 8,031 525 37,531 23,462 6,868 619 30,949 
Total non-interest expense28,975 8,508 525 38,008 23,462 7,346 619 31,427 
Income (loss) before tax23,940 1,265 (2,316)22,889 12,804 970 (2,268)11,506 
Income tax expense (benefit)2,719 (412)566 2,873 2,357 251 (431)2,177 
Net income (loss)$21,221 $1,677 $(2,882)$20,016 $10,447 $719 $(1,837)$9,329 
Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$167,252 $— $— $167,252 $166,085 $— $— $166,085 
Interest expense34,629 — 4,388 39,017 61,844 — 2,361 64,205 
Net interest income (loss)132,623 — (4,388)128,235 104,241 — (2,361)101,880 
Provision for credit losses320 — — 320 16,428 — — 16,428 
Net interest income (loss) after provision for credit losses132,303 — (4,388)127,915 87,813 — (2,361)85,452 
Non-interest income:
Investment management fees— 28,789 (902)27,887 — 23,955 (484)23,471 
Net gain on the sale and call of debt securities130 — — 130 3,815 — — 3,815 
Other non-interest income14,683 25 — 14,708 15,893 23 — 15,916 
Total non-interest income (loss)14,813 28,814 (902)42,725 19,708 23,978 (484)43,202 
Non-interest expense:
Intangible amortization expense— 1,433 — 1,433 — 1,466 — 1,466 
Other non-interest expense77,201 23,300 1,777 102,278 64,462 20,498 2,242 87,202 
Total non-interest expense77,201 24,733 1,777 103,711 64,462 21,964 2,242 88,668 
Income (loss) before tax69,915 4,081 (7,067)66,929 43,059 2,014 (5,087)39,986 
Income tax expense (benefit)12,013 183 (263)11,933 7,878 381 (897)7,362 
Net income (loss)$57,902 $3,898 $(6,804)$54,996 $35,181 $1,633 $(4,190)$32,624 
v3.21.2
Basis of Information and Summary of Significant Accounting Policies - Narrative (Details)
 9 Months Ended
Sep. 30, 2021
USD ($)
subsidiary
portfolio
office
Dec. 31, 2020
USD ($)
Significant Accounting Policies [Line Items]    
Number of wholly owned subsidiaries 3  
Past due period for loans (in days) 90 days  
Number of loan portfolios | portfolio 3  
Allowance for uncollectible accounts | $ $ 0 $ 0
Minimum    
Significant Accounting Policies [Line Items]    
Past due period for loans (in days) 90 days  
Consecutive period loan is current (in months) 6 months  
Estimated useful lives of intangible assets (in years) 4 years  
Estimated useful lives of office properties and equipment (in years) 3 years  
Maximum    
Significant Accounting Policies [Line Items]    
Original maturity of short-term investments (in days) 90 days  
Estimated useful lives of intangible assets (in years) 25 years  
Estimated useful lives of office properties and equipment (in years) 10 years  
Bank    
Significant Accounting Policies [Line Items]    
Number of wholly owned subsidiaries 2  
Number of representative offices, additional to main office | office 4  
v3.21.2
Investment Securities - Investment Types (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Debt securities available-for-sale:    
Amortized Cost $ 555,064 $ 612,492
Gross Unrealized Appreciation 2,744 6,016
Gross Unrealized Depreciation 2,199 938
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 555,609 617,570
Debt securities held-to-maturity:    
Amortized Cost 857,248 211,840
Gross Unrealized Appreciation 2,276 2,677
Gross Unrealized Depreciation 9,704 218
Estimated Fair Value 849,820 214,299
Allowance for Credit Losses 46 149
Corporate bonds    
Debt securities available-for-sale:    
Amortized Cost 135,711 157,452
Gross Unrealized Appreciation 1,509 1,538
Gross Unrealized Depreciation 199 526
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 137,021 158,464
Debt securities held-to-maturity:    
Amortized Cost 28,168 28,672
Gross Unrealized Appreciation 925 566
Gross Unrealized Depreciation 23 1
Estimated Fair Value 29,070 29,237
Allowance for Credit Losses 46 79
Non-agency residential mortgage-backed securities    
Debt securities available-for-sale:    
Amortized Cost 244,744  
Gross Unrealized Appreciation 1  
Gross Unrealized Depreciation 1,057  
Allowance for Credit Losses 0  
Debt securities available-for-sale, at fair value 243,688  
Debt securities held-to-maturity:    
Amortized Cost 205,661 124,152
Gross Unrealized Appreciation 52 237
Gross Unrealized Depreciation 1,781 217
Estimated Fair Value 203,932 124,172
Allowance for Credit Losses 0 70
Trust preferred securities    
Debt securities available-for-sale:    
Amortized Cost 18,335 18,228
Gross Unrealized Appreciation 445 57
Gross Unrealized Depreciation 2 198
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 18,778 18,087
Agency collateralized mortgage obligations    
Debt securities available-for-sale:    
Amortized Cost 17,495 22,058
Gross Unrealized Appreciation 63 36
Gross Unrealized Depreciation 0 5
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 17,558 22,089
Agency mortgage-backed securities    
Debt securities available-for-sale:    
Amortized Cost 125,982 406,741
Gross Unrealized Appreciation 38 3,595
Gross Unrealized Depreciation 915 209
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 125,105 410,127
Debt securities held-to-maturity:    
Amortized Cost 545,877 4,309
Gross Unrealized Appreciation 638 778
Gross Unrealized Depreciation 7,108 0
Estimated Fair Value 539,407 5,087
Allowance for Credit Losses 0 0
Agency debentures    
Debt securities available-for-sale:    
Amortized Cost 7,600 8,013
Gross Unrealized Appreciation 688 790
Gross Unrealized Depreciation 0 0
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 8,288 8,803
Debt securities held-to-maturity:    
Amortized Cost 37,199 48,130
Gross Unrealized Appreciation 659 1,051
Gross Unrealized Depreciation 228 0
Estimated Fair Value 37,630 49,181
Allowance for Credit Losses 0 0
Municipal bonds    
Debt securities available-for-sale:    
Amortized Cost 5,197  
Gross Unrealized Appreciation 0  
Gross Unrealized Depreciation 26  
Allowance for Credit Losses 0  
Debt securities available-for-sale, at fair value 5,171  
Debt securities held-to-maturity:    
Amortized Cost 1,270 6,577
Gross Unrealized Appreciation 2 45
Gross Unrealized Depreciation 0 0
Estimated Fair Value 1,272 6,622
Allowance for Credit Losses 0 $ 0
U.S. treasury notes    
Debt securities held-to-maturity:    
Amortized Cost 39,073  
Gross Unrealized Appreciation 0  
Gross Unrealized Depreciation 564  
Estimated Fair Value 38,509  
Allowance for Credit Losses $ 0  
v3.21.2
Investment Securities - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Mar. 31, 2021
Sep. 30, 2021
Sep. 30, 2020
Jun. 30, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]          
Transfer of debt securities available-for-sale to held-to-maturity $ 480,800,000 $ 480,769,000 $ 0    
Allowance for credit loss   46,000   $ 70,000 $ 149,000
Accrued interest receivable on debt securities held-to-maturity   1,600,000     697,000
Debt securities trading   0     0
Equity securities, at fair value   5,000,000     0
Federal Home Loan Bank stock   11,802,000     $ 13,284,000
Total Past Due          
Debt Securities, Available-for-sale [Line Items]          
Allowance for credit loss   0      
Federal Home Loan Bank          
Debt Securities, Available-for-sale [Line Items]          
Debt securities held-to-maturity pledged as collateral   $ 38,500,000      
v3.21.2
Investment Securities - Interest Income on Investment Securities (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]        
Taxable interest income $ 4,305 $ 3,436 $ 10,295 $ 10,437
Non-taxable interest income 35 55 92 192
Dividend income 137 196 473 899
Total interest income on investment securities $ 4,477 $ 3,687 $ 10,860 $ 11,528
v3.21.2
Investment Securities - Contractual Maturities (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Available-for-sale Securities, Debt Maturities, Amortized Cost    
Due in less than one year $ 27,500  
Due from one to five years 60,246  
Due from five to ten years 57,461  
Due after ten years 409,857  
Amortized Cost 555,064 $ 612,492
Available-for-sale Securities, Debt Maturities, Estimated Fair Value    
Due in less than one year 27,584  
Due from one to five years 61,285  
Due from five to ten years 57,911  
Due after ten years 408,829  
Estimated Fair Value 555,609 617,570
Held-to-maturity Securities, Debt Maturities, Amortized Cost    
Due in less than one year 860  
Due from one to five years 15,578  
Due from five to ten years 98,522  
Due after ten years 742,288  
Amortized Cost 857,248  
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value    
Due in less than one year 861  
Due from one to five years 16,075  
Due from five to ten years 98,665  
Due after ten years 734,219  
Estimated Fair Value $ 849,820 $ 214,299
v3.21.2
Investment Securities - Gains and Losses on Sales and Calls of Investment Securities (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]        
Proceeds from sale of available-for-sale securities $ 47,001 $ 64,363 $ 121,711 $ 120,400
Proceeds from call of available-for-sale securities 0 0 13,000 3,580
Total proceeds from sale and call of available-for-sale securities 47,001 64,363 134,711 123,980
Gross realized gains on available-for-sale securities 25 3,740 123 3,762
Gross realized losses on available-for-sale securities 0 0 1 0
Net realized gains on sale and call of available-for-sale securities 25 3,740 122 3,762
Proceeds from sale of held-to-maturity securities 0 0 0 0
Proceeds from call of held-to-maturity securities 101,202 118,745 144,757 366,503
Total proceeds from sale and call of held-to-maturity securities 101,202 118,745 144,757 366,503
Gross realized gains on held-to-maturity securities 27 4 27 53
Gross realized losses on held-to-maturity securities 19 0 19 0
Net realized gains on sale and call of held-to-maturity securities $ 8 $ 4 $ 8 $ 53
v3.21.2
Investment Securities - Debt Securities, Held-to-maturity, Allowance for Credit Loss (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2021
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period $ 70 $ 149
Provision (credit) for credit losses (24) (103)
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 46 46
Corporate bonds    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 47 79
Provision (credit) for credit losses (1) (33)
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 46 46
Non-agency residential mortgage-backed securities    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 23 70
Provision (credit) for credit losses (23) (70)
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 0 0
Municipal bonds    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 0 0
Provision (credit) for credit losses 0 0
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 0 0
Agency Debentures and Securitizations    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 0 0
Provision (credit) for credit losses 0 0
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 0 0
U.S. treasury notes    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 0 0
Provision (credit) for credit losses 0 0
Charge-offs 0 0
Recoveries 0 0
Balance, end of period $ 0 $ 0
v3.21.2
Investment Securities - Unrealized Losses (Details)
$ in Thousands
Sep. 30, 2021
USD ($)
position
Dec. 31, 2020
USD ($)
position
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months $ 308,865 $ 132,040
12 Months or More 12,259 19,614
Total 321,124 151,654
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 2,082 684
12 Months or More 117 254
Total $ 2,199 $ 938
Available-for-sale, number of positions in an unrealized loss position | position 22 33
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months $ 9,518 $ 28,796
12 Months or More 9,886 9,751
Total 19,404 38,547
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 84 277
12 Months or More 115 249
Total 199 526
Non-agency residential mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 170,302  
12 Months or More 0  
Total 170,302  
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 1,057  
12 Months or More 0  
Total 1,057  
Trust preferred securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 0 13,313
12 Months or More 2,373 0
Total 2,373 13,313
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 0 198
12 Months or More 2 0
Total 2 198
Agency collateralized mortgage obligations    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months   0
12 Months or More   9,863
Total   9,863
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months   0
12 Months or More   5
Total   5
Agency mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 123,874 89,931
12 Months or More 0 0
Total 123,874 89,931
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 915 209
12 Months or More 0 0
Total 915 $ 209
Municipal bonds    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 5,171  
12 Months or More 0  
Total 5,171  
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 26  
12 Months or More 0  
Total $ 26  
v3.21.2
Investment Securities - Credit Quality Indicator (Details)
$ in Thousands
Sep. 30, 2021
USD ($)
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net $ 857,248
Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 28,168
Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 37,199
Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 1,270
Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 205,661
Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 545,877
U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 39,073
Aaa  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 827,810
Aaa | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aaa | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 37,199
Aaa | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aaa | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 205,661
Aaa | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 545,877
Aaa | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 39,073
Aa  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 480
Aa | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 480
Aa | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 790
A | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 790
A | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 28,168
Baa | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 28,168
Baa | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net $ 0
v3.21.2
Loans and Leases - Loans Receivable by Class (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total $ 9,869,011 $ 8,237,418
Allowance for credit losses on loans and leases (32,363) (34,630)
Loans and leases held-for-investment, net 9,836,648 8,202,788
Loans receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and leases held-for-investment, before deferred fees and costs 9,856,967 8,227,913
Net deferred loan costs (fees) 12,044 9,505
Total 9,869,011 8,237,418
Allowance for credit losses on loans and leases (32,363) (34,630)
Loans and leases held-for-investment, net 9,836,648 8,202,788
Private Banking    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 6,204,009 4,807,800
Allowance for credit losses on loans and leases (2,156) (2,047)
Private Banking | Loans receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and leases held-for-investment, before deferred fees and costs 6,190,874 4,797,881
Net deferred loan costs (fees) 13,135 9,919
Total 6,204,009 4,807,800
Allowance for credit losses on loans and leases (2,156) (2,047)
Loans and leases held-for-investment, net 6,201,853 4,805,753
Commercial and Industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 1,340,817 1,274,152
Allowance for credit losses on loans and leases (10,796) (5,254)
Commercial and Industrial | Loans receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and leases held-for-investment, before deferred fees and costs 1,336,331 1,269,248
Net deferred loan costs (fees) 4,486 4,904
Total 1,340,817 1,274,152
Allowance for credit losses on loans and leases (10,796) (5,254)
Loans and leases held-for-investment, net 1,330,021 1,268,898
Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 2,324,185 2,155,466
Allowance for credit losses on loans and leases (19,411) (27,329)
Commercial Real Estate | Loans receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and leases held-for-investment, before deferred fees and costs 2,329,762 2,160,784
Net deferred loan costs (fees) (5,577) (5,318)
Total 2,324,185 2,155,466
Allowance for credit losses on loans and leases (19,411) (27,329)
Loans and leases held-for-investment, net $ 2,304,774 $ 2,128,137
v3.21.2
Loans and Leases - Narrative (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unfunded commitments $ 9,450,000   $ 6,730,000
Loans in the process of origination 93,800   39,600
Reserve for losses on unfunded commitments 3,100   3,400
Provision liability (303) $ (303)  
Off-balance sheet, credit loss, liability, credit loss expense (765) (765)  
Standby letters of credit      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unfunded commitments 63,100   $ 82,000
Standby letters of credit drawn during period $ 3,500 $ 49  
v3.21.2
Allowance for Credit Losses on Loans and Leases - Narrative (Details)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
position
Sep. 30, 2021
USD ($)
portfolio
loan
Sep. 30, 2020
USD ($)
position
Dec. 31, 2020
USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]        
Number of loan portfolios | portfolio   3    
Accrued interest receivable   $ 18,400,000   $ 16,400,000
Past due period for loans (in days)   90 days    
Evaluated loans   $ 8,625,000   9,680,000
Interest income on impaired loans   0   0
Loans 90 days or more past due and still accruing   0   0
Related allowance on impaired loans   6,900,000   1,988,000
Unused commitments on TDRs   0   0
Loans modified as TDRs with payment defaults   $ 0 $ 0  
Loan newly designated TRD's 0 2 0  
Real estate acquired through foreclosure   $ 2,200,000   2,700,000
Write-down on an OREO property       155,000
Proceeds from the sale of other real estate owned   351,000 $ 1,527,000  
Loss on sale of OREO   39,000    
Mortgage loans in process of foreclosure   $ 0    
Minimum        
Financing Receivable, Credit Quality Indicator [Line Items]        
Past due period for loans (in days)   90 days    
Private Banking        
Financing Receivable, Credit Quality Indicator [Line Items]        
Evaluated loans   $ 0   0
Related allowance on impaired loans   $ 0   $ 0
Private Banking | Cash and marketable securities collateral risk | Concentration risk, percentage        
Financing Receivable, Credit Quality Indicator [Line Items]        
Percentage of private banking loans secured by cash and marketable securities   98.70%   98.60%
Non-accrual        
Financing Receivable, Credit Quality Indicator [Line Items]        
Loans modified through troubled debt restructurings   $ 0   $ 2,900,000
v3.21.2
Allowance for Credit Losses on Loans and Leases - Credit Quality Indicator (Details) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]    
Total $ 9,869,011,000 $ 8,237,418,000
Revolving loans converted to term loans 0 0
Private Banking    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 23,269,000 64,829,000
Year before current fiscal year 58,664,000 44,726,000
Two years before current fiscal year 31,480,000 57,081,000
Three years before current fiscal year 54,348,000 7,736,000
Four years before current fiscal year 7,195,000 12,040,000
Prior 52,441,000 55,092,000
Revolving Loans 5,976,612,000 4,566,296,000
Total 6,204,009,000 4,807,800,000
Private Banking | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 23,269,000 64,829,000
Year before current fiscal year 58,664,000 44,210,000
Two years before current fiscal year 31,480,000 57,081,000
Three years before current fiscal year 54,348,000 7,736,000
Four years before current fiscal year 7,195,000 12,040,000
Prior 52,441,000 55,092,000
Revolving Loans 5,976,612,000 4,566,296,000
Total 6,204,009,000 4,807,284,000
Private Banking | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 0
Year before current fiscal year 0 0
Two years before current fiscal year 0 0
Three years before current fiscal year 0 0
Four years before current fiscal year 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 0
Private Banking | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 0
Year before current fiscal year 0 516,000
Two years before current fiscal year 0 0
Three years before current fiscal year 0 0
Four years before current fiscal year 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 516,000
Private Banking | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 0
Year before current fiscal year 0 0
Two years before current fiscal year 0 0
Three years before current fiscal year 0 0
Four years before current fiscal year 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 0
Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 129,138,000 219,004,000
Year before current fiscal year 188,298,000 223,189,000
Two years before current fiscal year 179,276,000 101,503,000
Three years before current fiscal year 55,712,000 44,575,000
Four years before current fiscal year 40,650,000 9,383,000
Prior 26,474,000 20,709,000
Revolving Loans 721,269,000 655,789,000
Total 1,340,817,000 1,274,152,000
Commercial and Industrial | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 129,138,000 216,459,000
Year before current fiscal year 185,460,000 223,189,000
Two years before current fiscal year 177,496,000 88,212,000
Three years before current fiscal year 47,837,000 44,575,000
Four years before current fiscal year 40,650,000 9,383,000
Prior 26,281,000 20,709,000
Revolving Loans 709,469,000 651,900,000
Total 1,316,331,000 1,254,427,000
Commercial and Industrial | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 1,795,000
Year before current fiscal year 2,088,000 0
Two years before current fiscal year 1,780,000 5,416,000
Three years before current fiscal year 0 0
Four years before current fiscal year 0 0
Prior 193,000 0
Revolving Loans 11,800,000 3,431,000
Total 15,861,000 10,642,000
Commercial and Industrial | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 750,000
Year before current fiscal year 0 0
Two years before current fiscal year 0 7,875,000
Three years before current fiscal year 0 0
Four years before current fiscal year 0 0
Prior 0 0
Revolving Loans 0 458,000
Total 0 9,083,000
Commercial and Industrial | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 0
Year before current fiscal year 750,000 0
Two years before current fiscal year 0 0
Three years before current fiscal year 7,875,000 0
Four years before current fiscal year 0 0
Prior 0 0
Revolving Loans 0 0
Total 8,625,000 0
Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 359,655,000 515,457,000
Year before current fiscal year 538,531,000 622,515,000
Two years before current fiscal year 516,444,000 446,312,000
Three years before current fiscal year 364,027,000 204,927,000
Four years before current fiscal year 198,938,000 189,348,000
Prior 287,534,000 138,105,000
Revolving Loans 59,056,000 38,802,000
Total 2,324,185,000 2,155,466,000
Commercial Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 359,655,000 514,920,000
Year before current fiscal year 537,743,000 617,120,000
Two years before current fiscal year 511,049,000 435,708,000
Three years before current fiscal year 363,399,000 202,001,000
Four years before current fiscal year 198,938,000 181,108,000
Prior 275,371,000 134,700,000
Revolving Loans 59,056,000 38,802,000
Total 2,305,211,000 2,124,359,000
Commercial Real Estate | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 446,000
Year before current fiscal year 526,000 5,395,000
Two years before current fiscal year 0 4,308,000
Three years before current fiscal year 628,000 0
Four years before current fiscal year 0 1,186,000
Prior 5,303,000 145,000
Revolving Loans 0 0
Total 6,457,000 11,480,000
Commercial Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 91,000
Year before current fiscal year 262,000 0
Two years before current fiscal year 5,395,000 6,296,000
Three years before current fiscal year 0 2,926,000
Four years before current fiscal year 0 7,054,000
Prior 6,860,000 3,260,000
Revolving Loans 0 0
Total 12,517,000 19,627,000
Commercial Real Estate | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 0 0
Year before current fiscal year 0 0
Two years before current fiscal year 0 0
Three years before current fiscal year 0 0
Four years before current fiscal year 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 0
Loans And Leases Held-For-Investment    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current year 512,062,000 799,290,000
Year before current fiscal year 785,493,000 890,430,000
Two years before current fiscal year 727,200,000 604,896,000
Three years before current fiscal year 474,087,000 257,238,000
Four years before current fiscal year 246,783,000 210,771,000
Prior 366,449,000 213,906,000
Revolving Loans 6,756,937,000 5,260,887,000
Total $ 9,869,011,000 $ 8,237,418,000
v3.21.2
Allowance for Credit Losses on Loans and Leases - Changes in Allowance (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Allowance for Loan and Lease Losses        
Balance, beginning of period $ 32,577 $ 23,276 $ 34,630 $ 14,108
Provision (credit) for credit losses 24 7,430 423 16,428
Charge-offs (238) 0 (2,803) (171)
Recoveries 0 0 113 341
Balance, end of period 32,363 30,706 32,363 30,706
Private Banking        
Allowance for Loan and Lease Losses        
Balance, beginning of period 2,107 2,151 2,047 1,973
Provision (credit) for credit losses 49 59 109 408
Charge-offs 0 0 0 (171)
Recoveries 0 0 0 0
Balance, end of period 2,156 2,210 2,156 2,210
Commercial and Industrial        
Allowance for Loan and Lease Losses        
Balance, beginning of period 8,969 7,546 5,254 5,262
Provision (credit) for credit losses 1,949 226 5,750 2,169
Charge-offs (122) 0 (321) 0
Recoveries 0 0 113 341
Balance, end of period 10,796 7,772 10,796 7,772
Commercial Real Estate        
Allowance for Loan and Lease Losses        
Balance, beginning of period 21,501 13,579 27,329 6,873
Provision (credit) for credit losses (1,974) 7,145 (5,436) 13,851
Charge-offs (116) 0 (2,482) 0
Recoveries 0 0 0 0
Balance, end of period $ 19,411 $ 20,724 $ 19,411 $ 20,724
v3.21.2
Allowance for Credit Losses on Loans and Leases - Analysis of Past Due Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment $ 9,869,011 $ 8,237,418
Total Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 11,322 9,930
30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 299 3,176
60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 2,398 0
90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 8,625 6,754
Current    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 9,857,689 8,227,488
Private Banking    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 6,204,009 4,807,800
Private Banking | Total Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 2,697 250
Private Banking | 30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 299 250
Private Banking | 60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 2,398 0
Private Banking | 90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 0
Private Banking | Current    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 6,201,312 4,807,550
Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 1,340,817 1,274,152
Commercial and Industrial | Total Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 8,625 458
Commercial and Industrial | 30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 0
Commercial and Industrial | 60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 0
Commercial and Industrial | 90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 8,625 458
Commercial and Industrial | Current    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 1,332,192 1,273,694
Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 2,324,185 2,155,466
Commercial Real Estate | Total Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 9,222
Commercial Real Estate | 30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 2,926
Commercial Real Estate | 60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 0
Commercial Real Estate | 90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 6,296
Commercial Real Estate | Current    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment $ 2,324,185 $ 2,146,244
v3.21.2
Allowance for Credit Losses on Loans and Leases - Impaired Loans (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Amortized Cost    
With a related allowance $ 8,625 $ 9,680
Without a related allowance 0 0
Total 8,625 9,680
Unpaid Principal Balance    
With a related allowance 8,625 9,708
Without a related allowance 0 0
Total 8,625 9,708
Related Allowance 6,900 1,988
Average Recorded Investment    
With a related allowance 8,625 9,680
Without a related allowance 0 0
Total 8,625 9,680
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Private banking    
Amortized Cost    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Unpaid Principal Balance    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Related Allowance 0 0
Average Recorded Investment    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Commercial and industrial    
Amortized Cost    
With a related allowance 8,625 458
Without a related allowance 0 0
Total 8,625 458
Unpaid Principal Balance    
With a related allowance 8,625 457
Without a related allowance 0 0
Total 8,625 457
Related Allowance 6,900 103
Average Recorded Investment    
With a related allowance 8,625 458
Without a related allowance 0 0
Total 8,625 458
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Commercial real estate    
Amortized Cost    
With a related allowance 0 9,222
Without a related allowance 0 0
Total 0 9,222
Unpaid Principal Balance    
With a related allowance 0 9,251
Without a related allowance 0 0
Total 0 9,251
Related Allowance 0 1,885
Average Recorded Investment    
With a related allowance 0 9,222
Without a related allowance 0 0
Total 0 9,222
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total $ 0 $ 0
v3.21.2
Allowance for Credit Losses on Loans and Leases - Allowance (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]    
Individually evaluated for impairment $ 6,900 $ 1,988
Collectively evaluated for impairment 25,463 32,642
Total allowance for credit losses on loans and leases 32,363 34,630
Loans and leases held-for-investment:    
Individually evaluated for impairment 8,625 9,680
Collectively evaluated for impairment 9,860,386 8,227,738
Total 9,869,011 8,237,418
Private Banking    
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]    
Individually evaluated for impairment 0 0
Collectively evaluated for impairment 2,156 2,047
Total allowance for credit losses on loans and leases 2,156 2,047
Loans and leases held-for-investment:    
Individually evaluated for impairment 0 0
Collectively evaluated for impairment 6,204,009 4,807,800
Total 6,204,009 4,807,800
Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]    
Individually evaluated for impairment 6,900 103
Collectively evaluated for impairment 3,896 5,151
Total allowance for credit losses on loans and leases 10,796 5,254
Loans and leases held-for-investment:    
Individually evaluated for impairment 8,625 458
Collectively evaluated for impairment 1,332,192 1,273,694
Total 1,340,817 1,274,152
Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]    
Individually evaluated for impairment 0 1,885
Collectively evaluated for impairment 19,411 25,444
Total allowance for credit losses on loans and leases 19,411 27,329
Loans and leases held-for-investment:    
Individually evaluated for impairment 0 9,222
Collectively evaluated for impairment 2,324,185 2,146,244
Total $ 2,324,185 $ 2,155,466
v3.21.2
Allowance for Credit Losses on Loans and Leases - Modifications (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
position
Sep. 30, 2021
USD ($)
loan
Sep. 30, 2020
position
Financing Receivable, Troubled Debt Restructuring [Line Items]      
Count 0 2 0
Recorded Investment at the time of Modification   $ 4,454  
Current Recorded Investment   0  
Allowance for Credit Losses on Loans and Leases at the time of Modification   445  
Current Allowance for Credit Losses on Loans and Leases   $ 0  
Commercial real estate      
Financing Receivable, Troubled Debt Restructuring [Line Items]      
Count | loan   2  
Recorded Investment at the time of Modification   $ 4,454  
Current Recorded Investment   0  
Allowance for Credit Losses on Loans and Leases at the time of Modification   445  
Current Allowance for Credit Losses on Loans and Leases   $ 0  
v3.21.2
Deposits - Schedule of Deposits by Type (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Interest Rate Range Domestic Deposit Liabilities [Abstract]    
Interest-bearing checking accounts, interest rate minimum 0.05%  
Interest-bearing checking accounts, interest rate maximum 1.70%  
Money market deposit accounts, interest rate minimum 0.08%  
Money market deposit accounts, interest rate maximum 3.25%  
Certificates of deposit, interest rate minimum 0.02%  
Certificates of deposit, interest rate maximum 3.15%  
Weighted Average Interest Rate    
Interest-bearing checking accounts 0.38% 0.38%
Money market deposit accounts 0.41% 0.56%
Certificates of deposit 0.41% 1.08%
Weighted average rate on interest-bearing accounts 0.40% 0.56%
Demand and savings accounts:    
Noninterest-bearing checking accounts $ 593,342 $ 456,426
Interest-bearing checking accounts 4,057,005 3,068,834
Money market deposit accounts 5,220,946 3,927,797
Total demand and savings accounts 9,871,293 7,453,057
Certificates of deposit 884,848 1,036,032
Total deposits $ 10,756,141 $ 8,489,089
v3.21.2
Deposits - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Deposits [Abstract]    
Brokered deposits $ 1,070.0 $ 753.3
Reciprocal non-brokered 2,090.0 1,720.0
Certificates of deposit, $100,000 or more, excluding brokered and reciprocal 529.5 534.3
Certificates of deposit, $250,000 or more, excluding brokered and reciprocal $ 152.9 $ 159.6
v3.21.2
Deposits - Contractual Maturities of Time Deposits (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Time Deposits, Rolling Year Maturity [Abstract]    
12 months or less $ 756,573 $ 892,427
12 months to 24 months 112,316 132,443
24 months to 36 months 15,959 11,162
Total $ 884,848 $ 1,036,032
v3.21.2
Deposits - Interest Expense on Deposits by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Deposits [Abstract]        
Interest-bearing checking accounts $ 3,682 $ 3,280 $ 9,689 $ 11,213
Money market deposit accounts 5,794 6,944 17,395 28,975
Certificates of deposit 1,004 3,674 4,256 16,907
Total interest expense on deposits $ 10,480 $ 13,898 $ 31,340 $ 57,095
v3.21.2
Borrowings - Schedule of Borrowings (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Total debt $ 355,654 $ 400,493
Line of credit borrowings    
Debt Instrument [Line Items]    
Short term debt interest rate 4.00% 4.25%
Short-term debt $ 10,000 $ 5,000
Issued 9/20/2021 | Federal Home Loan Bank advances    
Debt Instrument [Line Items]    
Short term debt interest rate 0.26%  
Short-term debt $ 50,000  
Issued 9/2/2021 | Federal Home Loan Bank advances    
Debt Instrument [Line Items]    
Short term debt interest rate 0.34%  
Short-term debt $ 50,000  
Issued 9/1/2021 | Federal Home Loan Bank advances    
Debt Instrument [Line Items]    
Short term debt interest rate 0.31%  
Short-term debt $ 150,000  
Issued 12/21/2020 | Federal Home Loan Bank advances    
Debt Instrument [Line Items]    
Short term debt interest rate   0.39%
Short-term debt   $ 50,000
Issued 12/2/2020 | Federal Home Loan Bank advances    
Debt Instrument [Line Items]    
Short term debt interest rate   0.33%
Short-term debt   $ 50,000
Issued 12/1/2020 | Federal Home Loan Bank advances    
Debt Instrument [Line Items]    
Short term debt interest rate   0.33%
Short-term debt   $ 150,000
Issued 10/8/2020 | Federal Home Loan Bank advances    
Debt Instrument [Line Items]    
Short term debt interest rate   0.39%
Short-term debt   $ 50,000
Subordinated Notes Payable 5.75 Percent | Subordinated notes payable    
Debt Instrument [Line Items]    
Long term debt interest rate 5.75% 5.75%
Long-term debt $ 95,654 $ 95,493
Debt issuance costs $ 1,846 $ 2,007
v3.21.2
Borrowings - Narrative (Details) - USD ($)
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Aug. 16, 2021
Short-term Debt [Line Items]        
Net proceeds from issuance of subordinated notes payable $ 0 $ 95,349,000    
Line of credit borrowings        
Short-term Debt [Line Items]        
Short-term debt 10,000,000   $ 5,000,000  
Bank subsidiary | Federal Home Loan Bank advances        
Short-term Debt [Line Items]        
Short-term debt 250,000,000   300,000,000  
Bank subsidiary | Federal Home Loan Bank        
Short-term Debt [Line Items]        
Pledged loans receivable, for Federal Home Loan Bank 1,460,000,000      
Bank subsidiary | Federal Home Loan Bank | Line of credit borrowings        
Short-term Debt [Line Items]        
Line of credit facility, current borrowing capacity 1,040,000,000.00      
Bank subsidiary | M&T Bank | Line of credit borrowings        
Short-term Debt [Line Items]        
Line of credit facility, current borrowing capacity 10,000,000      
Short-term debt 0   0  
Bank subsidiary | Texas Capital Bank | Line of credit borrowings        
Short-term Debt [Line Items]        
Line of credit facility, current borrowing capacity 20,000,000   75,000,000  
Short-term debt 0   0  
Amount outstanding 10,000,000   5,000,000  
Bank subsidiary | PNC Bank | Financial Guarantee        
Short-term Debt [Line Items]        
Credit cards issued, notional amount 3,300,000      
Standby letter of credit       $ 643,000
Bank subsidiary | PNC Bank | Line of credit borrowings        
Short-term Debt [Line Items]        
Line of credit facility, current borrowing capacity $ 8,000,000      
Subordinated notes payable | Subordinated Notes Payable 5.75 Percent        
Short-term Debt [Line Items]        
Net proceeds from issuance of subordinated notes payable     $ 97,500,000  
Debt term     10 years  
Long term debt interest rate 5.75%   5.75%  
v3.21.2
Borrowings - Interest Expense on Borrowings by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Debt Instrument [Line Items]        
Interest expense on borrowings $ 2,558 $ 2,850 $ 7,677 $ 7,110
Subordinated notes payable        
Debt Instrument [Line Items]        
Interest expense on borrowings 1,456 1,458 4,366 2,138
FHLB borrowings        
Debt Instrument [Line Items]        
Interest expense on borrowings 1,102 1,392 3,256 4,711
Line of credit borrowings        
Debt Instrument [Line Items]        
Interest expense on borrowings $ 0 $ 0 $ 55 $ 261
v3.21.2
Stock Transactions - Narrative (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Oct. 10, 2020
USD ($)
$ / shares
shares
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
shares
Sep. 30, 2020
USD ($)
$ / shares
shares
Dec. 31, 2020
equity_instrument
Class of Stock [Line Items]            
Dividends paid       $ 5,933 $ 5,886  
Shares repurchased (shares) | shares       99,946 126,148  
Treasury stock, acquired cost       $ 2,000 $ 2,700  
Cost of shares repurchased   $ 461 $ 609 2,028 $ 3,343  
Canceled (in shares) | shares         212,447  
Payments for cancellation of stock options       0 $ 2,484  
Private Placement to T-VIII PubOpps            
Class of Stock [Line Items]            
Proceeds from warrant exercises $ 105,000          
Additional proceeds if warrants exercised in full $ 16,100          
Number of equity instruments issued | equity_instrument           3
Common Stock | Share repurchase program            
Class of Stock [Line Items]            
Stock repurchase program, remaining authorized repurchase amount   $ 7,300   $ 7,300    
Shares repurchased (shares) | shares         40,000  
Cost of shares repurchased         $ 670  
Average cost per share (usd per share) | $ / shares         $ 16.76  
Common Stock | Private Placement to T-VIII PubOpps            
Class of Stock [Line Items]            
Number of shares issued in transaction (in shares) | shares 2,770,083          
Consideration received on transaction $ 40,000          
Number of securities called by warrants (in shares) | shares 922,438          
Exercise price of warrants (in USD per share) | $ / shares $ 17.50          
Conversion period 2 years          
Series C preferred stock            
Class of Stock [Line Items]            
Shares issued upon conversion (USD per share) | $ / shares $ 13.75          
Stock dividends (in shares) | shares       22    
Series C preferred stock | Private Placement to T-VIII PubOpps            
Class of Stock [Line Items]            
Number of shares issued in transaction (in shares) | shares 650          
Consideration received on transaction $ 65,000          
Liquidation preference (usd per share) | $ / shares $ 100,000          
Dividend rate 6.75%          
Series A Non-Cumulative Perpetual Stock            
Class of Stock [Line Items]            
Dividends paid       $ 5,900 $ 5,900  
Fixed-to-floating rate       6.75% 6.75%  
Series B Non-Cumulative Perpetual Preferred Stock            
Class of Stock [Line Items]            
Fixed-to-floating rate       6.375% 6.375%  
v3.21.2
Stock Transactions - Shares Outstanding Activity (Details) - shares
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Number of Shares Outstanding [Rollforward]    
Preferred stock dividend 22  
Purchase of treasury stock 99,946 126,148
Preferred Shares    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (shares) 121,400 120,750
Balance, ending of period (shares) 121,422 120,750
Common Stock    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (shares) 32,620,150 29,355,986
Issuance of restricted common stock 595,886 607,323
Forfeitures of restricted common stock (12,047) (11,018)
Exercise of stock options 50,300 33,500
Purchase of treasury stock   (40,000)
Increase in treasury stock related to equity awards (99,946) (126,148)
Reissuance of treasury stock   8,500
Balance, ending of period (shares) 33,154,343 29,828,143
Treasury Stock    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (shares) 2,299,422 2,126,422
Purchase of treasury stock   40,000
Increase in treasury stock related to equity awards 99,946 126,148
Reissuance of treasury stock   (8,500)
Balance, ending of period (shares) 2,399,368 2,284,070
v3.21.2
Regulatory Capital - Narrative (Details)
 9 Months Ended
Sep. 30, 2021
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Percentage conservation buffer required for capital adequacy to risk weighted assets, fully phased-in 2.50%
v3.21.2
Regulatory Capital - Regulatory Capital Requirements (Details)
$ in Thousands
Sep. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Total risk-based capital (Amount)    
Total risk-based capital $ 889,197 $ 833,819
Total risk-based capital required for capital adequacy $ 518,882 $ 472,267
Total risk-based capital (Ratio)    
Total risk-based capital, ratio 0.1371 0.1412
Total risk-based capital required for capital adequacy, ratio 0.0800 0.0800
Tier 1 risk-based capital (Amount)    
Tier 1 risk-based capital $ 764,932 $ 707,711
Tier 1 risk-based capital required for capital adequacy $ 389,162 $ 354,200
Tier 1 risk-based capital (Ratio)    
Tier 1 risk-based capital, ratio 0.1179 0.1199
Tier 1 risk-based capital required for capital adequacy, ratio 0.0600 0.0600
Common Equity Tier One Risk Based Capital (Amount)    
Common equity tier 1 risk-based capital $ 584,489 $ 530,568
Common equity tier 1 risk-based capital required for capital adequacy $ 291,871 $ 265,650
Common Equity Tier One Risk Based Capital (Ratio)    
Common equity tier 1 risk-based capital, ratio 0.0901 0.0899
Common equity tier 1 risk-based capital required for capital adequacy, ratio 4.50% 4.50%
Tier 1 leverage (Amount)    
Tier 1 leverage capital $ 764,932 $ 707,711
Tier 1 leverage capital required for capital adequacy $ 462,757 $ 388,408
Tier 1 leverage (Ratio)    
Tier 1 leverage capital, ratio 0.0661 0.0729
Tier 1 leverage capital required for capital adequacy, ratio 0.0400 0.0400
Bank subsidiary    
Total risk-based capital (Amount)    
Total risk-based capital $ 864,503 $ 789,273
Total risk-based capital required for capital adequacy 516,720 470,820
Total risk-based capital required to be well capitalized $ 645,900 $ 588,525
Total risk-based capital (Ratio)    
Total risk-based capital, ratio 0.1338 0.1341
Total risk-based capital required for capital adequacy, ratio 0.0800 0.0800
Total risk-based capital required to be well capitalized, ratio 0.1000 0.1000
Tier 1 risk-based capital (Amount)    
Tier 1 risk-based capital $ 835,892 $ 758,658
Tier 1 risk-based capital required for capital adequacy 387,540 353,115
Tier 1 risk-based capital required to be well capitalized $ 516,720 $ 470,820
Tier 1 risk-based capital (Ratio)    
Tier 1 risk-based capital, ratio 0.1294 0.1289
Tier 1 risk-based capital required for capital adequacy, ratio 0.0600 0.0600
Tier 1 risk-based capital required to be well capitalized, ratio 0.0800 0.0800
Common Equity Tier One Risk Based Capital (Amount)    
Common equity tier 1 risk-based capital $ 835,892 $ 758,658
Common equity tier 1 risk-based capital required for capital adequacy 290,655 264,836
Common equity tier 1 risk-based capital required to be well capitalized $ 419,835 $ 382,542
Common Equity Tier One Risk Based Capital (Ratio)    
Common equity tier 1 risk-based capital, ratio 0.1294 0.1289
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 $ 835,892 $ 758,658
Tier 1 leverage capital required for capital adequacy 461,884 387,626
Tier 1 leverage capital required to be well capitalized $ 577,355 $ 484,533
Tier 1 leverage (Ratio)    
Tier 1 leverage capital, ratio 0.0724 0.0783
Tier 1 leverage capital required for capital adequacy, ratio 0.0400 0.0400
Tier 1 leverage capital required to be well capitalized, ratio 0.0500 0.0500
v3.21.2
Earnings Per Common Share - Schedule of Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]        
Net income $ 20,016 $ 9,329 $ 54,996 $ 32,624
Preferred stock dividends 3,097 1,962 9,233 5,886
Net income available to common shareholders 16,919 7,367 45,763 26,738
Allocation of net income available:        
Common shareholders 14,274 7,367 38,679 26,738
Series C convertible preferred shareholders 2,225 0 5,944 0
Warrant shareholders $ 420 $ 0 $ 1,140 $ 0
Basic weighted average common shares outstanding:        
Basic weighted average common shares outstanding (shares) 31,357,356 28,286,250 31,287,924 28,230,180
Series C convertible preferred stock, as-if converted (shares) 4,887,272 0 4,807,858 0
Warrants, as-if exercised (shares) 922,438 0 922,438 0
Basic (in usd per share) $ 0.46 $ 0.26 $ 1.24 $ 0.95
Diluted earnings per common share:        
Income available to common shareholders after allocation $ 14,274 $ 7,367 $ 38,679 $ 26,738
Basic common shares (in shares) 31,357,356 28,286,250 31,287,924 28,230,180
Restricted stock - dilutive (shares) 664,729 303,138 884,714 313,726
Stock options - dilutive (shares) 124,137 85,055 144,229 135,377
Diluted weighted average common shares outstanding (shares) 32,146,222 28,674,443 32,316,867 28,679,283
Diluted (in usd per share) $ 0.44 $ 0.26 $ 1.20 $ 0.93
Series A and B Preferred Stock        
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]        
Preferred stock dividends $ 1,963 $ 1,962 $ 5,887 $ 5,886
Series C preferred stock        
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]        
Preferred stock dividends $ 1,134 $ 0 $ 3,346 $ 0
v3.21.2
Earnings Per Common Share - Anti-Dilutive Shares (Details) - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (shares) 5,820,460 791,262 5,821,210 566,498
Restricted stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (shares) 10,750 785,762 11,500 566,498
Stock options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (shares) 0 5,500 0 0
Series C preferred stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (shares) 4,887,272 0 4,887,272 0
Warrants, as-if exercised        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive shares (shares) 922,438 0 922,438 0
v3.21.2
Derivatives and Hedging Activity - Financial Position, Fair Value (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value $ 100,994 $ 144,333
Liability derivatives, fair value 105,513 153,433
Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 100,994 144,333
Other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value 105,513 153,433
Designated as hedging instrument | Other assets | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 276 0
Designated as hedging instrument | Other liabilities | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value 4,786 9,082
Not designated as hedging instrument | Other assets | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 100,718 144,333
Not designated as hedging instrument | Other liabilities | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value $ 100,727 $ 144,351
v3.21.2
Derivatives and Hedging Activity - Offsetting of Derivative Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Assets $ 100,994 $ 144,333
Gross Amounts Offset in the Statement of Financial Position 0 0
Net Amounts of Assets presented in the Statement of Financial Position 100,994 144,333
Financial Instruments (10,560) (94)
Cash Collateral Received 0 0
Net Amount $ 90,434 $ 144,239
v3.21.2
Derivatives and Hedging Activity - Offsetting of Derivative Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Liabilities $ 105,513 $ 153,433
Gross Amounts Offset in the Statement of Financial Position 0 0
Net Amounts of Liabilities presented in the Statement of Financial Position 105,513 153,433
Financial Instruments (10,560) (94)
Cash Collateral Posted (80,719) (150,238)
Net Amount $ 14,234 $ 3,101
v3.21.2
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, 2021
USD ($)
Derivative [Line Items]  
Notional Amount $ 250,000
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months 3,160
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 $ 641
Remaining Term (in Months) 8 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 $ 942
Remaining Term (in Months) 20 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 $ 948
Remaining Term (in Months) 32 months
Issued 3/2/2020, Maturity 3/2/2025  
Derivative [Line Items]  
Notional Amount $ 50,000
Effective Rate 0.98%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months $ 410
Remaining Term (in Months) 41 months
Issued 3/20/2020, Maturity 3/20/2025  
Derivative [Line Items]  
Notional Amount $ 50,000
Effective Rate 0.60%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months $ 219
Remaining Term (in Months) 42 months
v3.21.2
Derivatives and Hedging Activity - Gain (Loss) in Statement of Financial Performance (Details) - Interest rate swaps - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Not designated as hedging instrument | Non-interest income        
Derivatives, Fair Value [Line Items]        
Amount of Gain (Loss) Recognized in Income on Derivatives $ 10 $ 14 $ 33 $ (51)
Cash flow hedging | Designated as hedging instrument | Interest expense        
Derivatives, Fair Value [Line Items]        
Amount of Gain (Loss) Recognized in Income on Derivatives (903) (1,028) (2,616) (1,647)
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives $ (74) $ 32 $ 1,733 $ (9,258)
v3.21.2
Derivatives and Hedging Activity - Narrative (Details) - Interest rate swaps
$ in Millions
Sep. 30, 2021
USD ($)
Derivatives, Fair Value [Line Items]  
Termination value of derivatives, including accrued interest, in a net liability position $ 81.2
Collateral already posted amount 88.5
Not designated as hedging instrument  
Derivatives, Fair Value [Line Items]  
Derivative, aggregate notional amount $ 4,550.0
v3.21.2
Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financial assets:    
Debt securities available-for-sale $ 555,609 $ 617,570
Equity securities 5,000 0
Level 1    
Financial assets:    
Equity securities 5,000 0
Level 2    
Financial assets:    
Debt securities available-for-sale 555,609 617,570
Fair value, measurements, recurring    
Financial assets:    
Equity securities 5,000  
Total assets 661,603 761,903
Financial liabilities:    
Total financial liabilities 105,513 153,433
Fair value, measurements, recurring | Level 1    
Financial assets:    
Equity securities 5,000  
Total assets 5,000 0
Financial liabilities:    
Total financial liabilities 0 0
Fair value, measurements, recurring | Level 2    
Financial assets:    
Equity securities 0  
Total assets 656,603 761,903
Financial liabilities:    
Total financial liabilities 105,513 153,433
Fair value, measurements, recurring | Level 3    
Financial assets:    
Equity securities 0  
Total assets 0 0
Financial liabilities:    
Total financial liabilities 0 0
Fair value, measurements, recurring | Interest rate swaps    
Financial assets:    
Interest rate swaps 100,994 144,333
Financial liabilities:    
Interest rate swaps 105,513 153,433
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 100,994 144,333
Financial liabilities:    
Interest rate swaps 105,513 153,433
Fair value, measurements, recurring | Interest rate swaps | Level 3    
Financial assets:    
Interest rate swaps 0 0
Financial liabilities:    
Interest rate swaps 0 0
Fair value, measurements, recurring | Corporate bonds    
Financial assets:    
Debt securities available-for-sale 137,021 158,464
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 137,021 158,464
Fair value, measurements, recurring | Corporate bonds | Level 3    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Non-agency residential mortgage-backed securities    
Financial assets:    
Debt securities available-for-sale 243,688  
Fair value, measurements, recurring | Non-agency residential mortgage-backed securities | Level 1    
Financial assets:    
Debt securities available-for-sale 0  
Fair value, measurements, recurring | Non-agency residential mortgage-backed securities | Level 2    
Financial assets:    
Debt securities available-for-sale 243,688  
Fair value, measurements, recurring | Non-agency residential mortgage-backed securities | Level 3    
Financial assets:    
Debt securities available-for-sale 0  
Fair value, measurements, recurring | Trust preferred securities    
Financial assets:    
Debt securities available-for-sale 18,778 18,087
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 18,778 18,087
Fair value, measurements, recurring | Trust preferred securities | Level 3    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Agency collateralized mortgage obligations    
Financial assets:    
Debt securities available-for-sale 17,558 22,089
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 17,558 22,089
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 125,105 410,127
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 125,105 410,127
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 8,288 8,803
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 8,288 8,803
Fair value, measurements, recurring | Agency debentures | Level 3    
Financial assets:    
Debt securities available-for-sale 0 $ 0
Fair value, measurements, recurring | Municipal bonds    
Financial assets:    
Debt securities available-for-sale 5,171  
Fair value, measurements, recurring | Municipal bonds | Level 1    
Financial assets:    
Debt securities available-for-sale 0  
Fair value, measurements, recurring | Municipal bonds | Level 2    
Financial assets:    
Debt securities available-for-sale 5,171  
Fair value, measurements, recurring | Municipal bonds | Level 3    
Financial assets:    
Debt securities available-for-sale $ 0  
v3.21.2
Disclosures About Fair Value of Financial Instruments - Fair Value Measurements, Nonrecurring (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Level 3    
Financial assets:    
Other real estate owned $ 2,178 $ 2,724
Fair value, measurements, nonrecurring    
Financial assets:    
Loans measured for impairment, net 1,725 7,692
Other real estate owned 2,178 2,724
Total assets 3,903 10,416
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 1,725 7,692
Other real estate owned 2,178 2,724
Total assets $ 3,903 $ 10,416
v3.21.2
Disclosures About Fair Value of Financial Instruments - Narrative (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Fair Value Disclosures [Abstract]    
Specific allowance for loan losses $ 6,900 $ 1,988
v3.21.2
Disclosures About Fair Value of Financial Instruments - Fair Value Inputs, Assets, Quantitative Information (Details) - Collateral - Level 3
$ in Thousands
Sep. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Loans measured for impairment, net    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value $ 1,725 $ 7,692
Loans measured for impairment, net | Liquidation value and discount due to salability conditions    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average Discount Rate 0.80  
Loans measured for impairment, net | Appraisal value and discount due to salability conditions    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average Discount Rate   0.23
Other real estate owned    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value $ 2,178 $ 2,724
Other real estate owned | Appraisal value and discount due to salability conditions    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Other real estate owned 0.15 0.12
v3.21.2
Disclosures About Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financial assets:    
Debt securities available-for-sale $ 555,609 $ 617,570
Debt securities held-to-maturity, net 849,820 214,299
Equity securities 5,000 0
Investment management fees receivable, net 8,908 7,935
Interest rate swaps 100,994 144,333
Financial liabilities:    
Derivative liability 105,513 153,433
Level 1    
Financial assets:    
Cash and cash equivalents 469,932 435,442
Equity securities 5,000 0
Level 2    
Financial assets:    
Debt securities available-for-sale 555,609 617,570
Debt securities held-to-maturity, net 849,820 214,299
Federal Home Loan Bank stock 11,802 13,284
Accrued interest receivable 21,872 18,783
Investment management fees receivable, net 8,908 7,935
Bank owned life insurance 98,308 71,787
Financial liabilities:    
Deposits 10,767,182 8,510,799
Borrowings, net 364,201 402,714
Level 2 | Interest rate swaps    
Financial assets:    
Interest rate swaps 100,994 144,333
Financial liabilities:    
Derivative liability 105,513 153,433
Level 3    
Financial assets:    
Loans and leases held-for-investment, net 9,815,390 8,199,922
Other real estate owned 2,178 2,724
Carrying amount | Level 1    
Financial assets:    
Cash and cash equivalents 469,932 435,442
Equity securities 5,000 0
Carrying amount | Level 2    
Financial assets:    
Debt securities available-for-sale 555,609 617,570
Debt securities held-to-maturity, net 857,202 211,691
Federal Home Loan Bank stock 11,802 13,284
Accrued interest receivable 21,872 18,783
Investment management fees receivable, net 8,908 7,935
Bank owned life insurance 98,308 71,787
Financial liabilities:    
Deposits 10,756,141 8,489,089
Borrowings, net 355,654 400,493
Carrying amount | Level 2 | Interest rate swaps    
Financial assets:    
Interest rate swaps 100,994 144,333
Financial liabilities:    
Derivative liability 105,513 153,433
Carrying amount | Level 3    
Financial assets:    
Loans and leases held-for-investment, net 9,836,648 8,202,788
Other real estate owned $ 2,178 $ 2,724
v3.21.2
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Accumulated Other Comprehensive Income [Roll Forward]        
Beginning balance $ 794,568 $ 632,830 $ 757,145 $ 621,281
Change in unrealized holding gains (losses) (1,584) 3,115 (745) (4,999)
Losses (gains) reclassified from other comprehensive income 681 (2,055) 1,907 (1,603)
Other comprehensive income (loss), net of tax (903) 1,060 1,162 (6,602)
Ending balance 814,038 643,200 814,038 643,200
Debt Securities        
Accumulated Other Comprehensive Income [Roll Forward]        
Beginning balance 3,227 1,692 3,834 2,756
Change in unrealized holding gains (losses) (1,528) 3,088 (2,061) 2,041
Losses (gains) reclassified from other comprehensive income (4) (2,835) (78) (2,852)
Other comprehensive income (loss), net of tax (1,532) 253 (2,139) (811)
Ending balance 1,695 1,945 1,695 1,945
Derivatives        
Accumulated Other Comprehensive Income [Roll Forward]        
Beginning balance (3,859) (8,222) (6,531) (1,624)
Change in unrealized holding gains (losses) (56) 27 1,316 (7,040)
Losses (gains) reclassified from other comprehensive income 685 780 1,985 1,249
Other comprehensive income (loss), net of tax 629 807 3,301 (5,791)
Ending balance (3,230) (7,415) (3,230) (7,415)
Total        
Accumulated Other Comprehensive Income [Roll Forward]        
Beginning balance (632) (6,530) (2,697) 1,132
Other comprehensive income (loss), net of tax (903) 1,060 1,162 (6,602)
Ending balance $ (1,535) $ (5,470) $ (1,535) $ (5,470)
v3.21.2
Segments - Schedule of Segment Reporting Information (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
segment
Sep. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Segment Reporting Information [Line Items]          
Number of reportable segments | segment     2    
Total assets $ 12,158,868   $ 12,158,868   $ 9,896,816
Income statement data:          
Interest income 59,705 $ 50,222 167,252 $ 166,085  
Interest expense 13,038 16,748 39,017 64,205  
Net interest income (loss) 46,667 33,474 128,235 101,880  
Provision for credit losses 0 7,430 320 16,428  
Net interest income after provision for credit losses 46,667 26,044 127,915 85,452  
Non-interest income:          
Net gain on the sale and call of debt securities 33 3,744 130 3,815  
Other non-interest income (loss) 4,761 5,050 14,708 15,916  
Total non-interest income 14,230 16,889 42,725 43,202  
Non-interest expense:          
Intangible amortization expense 477 478 1,433 1,466  
Other non-interest expense 37,531 30,949 102,278 87,202  
Total non-interest expense 38,008 31,427 103,711 88,668  
Income (loss) before tax 22,889 11,506 66,929 39,986  
Income tax expense (benefit) 2,873 2,177 11,933 7,362  
Net income 20,016 9,329 54,996 32,624  
Investment management fees          
Non-interest income:          
Total non-interest income 9,436 8,095 27,887 23,471  
Parent and other          
Segment Reporting Information [Line Items]          
Total assets (938)   (938)   (9,053)
Income statement data:          
Interest income 0 0 0 0  
Interest expense 1,447 1,451 4,388 2,361  
Net interest income (loss) (1,447) (1,451) (4,388) (2,361)  
Provision for credit losses 0 0 0 0  
Net interest income after provision for credit losses (1,447) (1,451) (4,388) (2,361)  
Non-interest income:          
Net gain on the sale and call of debt securities 0 0 0 0  
Other non-interest income (loss) 0 0 0 0  
Total non-interest income (344) (198) (902) (484)  
Non-interest expense:          
Intangible amortization expense 0 0 0 0  
Other non-interest expense 525 619 1,777 2,242  
Total non-interest expense 525 619 1,777 2,242  
Income (loss) before tax (2,316) (2,268) (7,067) (5,087)  
Income tax expense (benefit) 566 (431) (263) (897)  
Net income (2,882) (1,837) (6,804) (4,190)  
Parent and other | Investment management fees          
Non-interest income:          
Total non-interest income (344) (198) (902) (484)  
Bank | Operating segments          
Segment Reporting Information [Line Items]          
Total assets 12,074,984   12,074,984   9,819,719
Income statement data:          
Interest income 59,705 50,222 167,252 166,085  
Interest expense 11,591 15,297 34,629 61,844  
Net interest income (loss) 48,114 34,925 132,623 104,241  
Provision for credit losses 0 7,430 320 16,428  
Net interest income after provision for credit losses 48,114 27,495 132,303 87,813  
Non-interest income:          
Net gain on the sale and call of debt securities 33 3,744 130 3,815  
Other non-interest income (loss) 4,768 5,027 14,683 15,893  
Total non-interest income 4,801 8,771 14,813 19,708  
Non-interest expense:          
Intangible amortization expense 0 0 0 0  
Other non-interest expense 28,975 23,462 77,201 64,462  
Total non-interest expense 28,975 23,462 77,201 64,462  
Income (loss) before tax 23,940 12,804 69,915 43,059  
Income tax expense (benefit) 2,719 2,357 12,013 7,878  
Net income 21,221 10,447 57,902 35,181  
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]          
Total assets 84,822   84,822   $ 86,150
Income statement data:          
Interest income 0 0 0 0  
Interest expense 0 0 0 0  
Net interest income (loss) 0 0 0 0  
Provision for credit losses 0 0 0 0  
Net interest income after provision for credit 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 (loss) (7) 23 25 23  
Total non-interest income 9,773 8,316 28,814 23,978  
Non-interest expense:          
Intangible amortization expense 477 478 1,433 1,466  
Other non-interest expense 8,031 6,868 23,300 20,498  
Total non-interest expense 8,508 7,346 24,733 21,964  
Income (loss) before tax 1,265 970 4,081 2,014  
Income tax expense (benefit) (412) 251 183 381  
Net income 1,677 719 3,898 1,633  
Investment management | Operating segments | Investment management fees          
Non-interest income:          
Total non-interest income $ 9,780 $ 8,293 $ 28,789 $ 23,955  
v3.21.2
Subsequent Events (Details) - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended
Oct. 20, 2021
Oct. 11, 2021
Oct. 01, 2021
Sep. 30, 2021
Subsequent Event | Raymond James        
Subsequent Event [Line Items]        
Fair value of total consideration $ 1,100,000      
Series A preferred stock | Subsequent Event        
Subsequent Event [Line Items]        
Dividend payable   $ 679    
Series A depositary share | Subsequent Event        
Subsequent Event [Line Items]        
Dividends payable (usd per share)   $ 0.42    
Series B preferred stock | Subsequent Event        
Subsequent Event [Line Items]        
Dividend payable   $ 1,300    
Series B depositary share | Subsequent Event        
Subsequent Event [Line Items]        
Dividends payable (usd per share)   $ 0.40    
Series C preferred stock        
Subsequent Event [Line Items]        
Stock dividends (in shares)       22
Series C preferred stock | Subsequent Event        
Subsequent Event [Line Items]        
Stock dividends (in shares)   11 11