TRISTATE CAPITAL HOLDINGS, INC., 10-Q filed on 11/9/2020
Quarterly Report
v3.20.2
Cover Page - shares
 9 Months Ended
Sep. 30, 2020
Oct. 31, 2020
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2020  
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   29,825,057
Amendment Flag false  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Document Fiscal Year End Date --12-31  
Entity Central Index Key 0001380846  
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  
v3.20.2
Unaudited Condensed Consolidated Statements of Financial Condition - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
ASSETS    
Cash $ 356 $ 357
Interest-earning deposits with other institutions 602,676 395,860
Federal funds sold 5,270 7,638
Cash and cash equivalents 608,302 403,855
Debt securities available-for-sale, at fair value 552,898 248,782
Debt securities held-to-maturity, at cost 254,041 196,044
Federal Home Loan Bank stock 13,284 24,324
Total investment securities 820,223 469,150
Loans and leases held-for-investment 7,654,446 6,577,559
Allowance for loan and lease losses (30,706) (14,108)
Loans and leases held-for-investment, net 7,623,740 6,563,451
Accrued interest receivable 18,282 22,326
Investment management fees receivable, net 7,627 7,560
Goodwill 41,660 41,660
Intangible assets, net of accumulated amortization of $11,903 and $10,437, respectively 22,729 24,194
Office properties and equipment, net of accumulated depreciation of $15,597 and $13,976, respectively 11,666 9,569
Operating lease right-of-use asset 21,783 22,589
Bank owned life insurance 71,342 70,044
Prepaid expenses and other assets 246,436 131,412
Total assets 9,493,790 7,765,810
Liabilities:    
Deposits 8,183,713 6,634,613
Borrowings, net 395,439 355,000
Accrued interest payable on deposits and borrowings 4,312 5,490
Deferred tax liability, net 5,577 6,931
Operating lease liability 23,341 23,644
Other accrued expenses and other liabilities 238,208 118,851
Total liabilities 8,850,590 7,144,529
Shareholders’ Equity:    
Common stock, no par value; Shares authorized - 45,000,000; Shares issued - 32,108,733 and 31,482,408, respectively; Shares outstanding - 29,828,143 and 29,355,986, respectively 295,937 295,349
Additional paid-in capital 27,523 23,095
Retained earnings 245,162 218,449
Accumulated other comprehensive income (loss), net (5,470) 1,132
Treasury stock (2,280,590 and 2,126,422 shares, respectively) (36,031) (32,823)
Total shareholders’ equity 643,200 621,281
Total liabilities and shareholders’ equity 9,493,790 7,765,810
Series A preferred stock    
Shareholders’ Equity:    
Preferred stock, no par value; Shares authorized - 150,000; Series A Shares issued and outstanding - 40,250 and 40,250, respectively, Series B Shares issued and outstanding - 80,500 and 80,500, respectively 38,468 38,468
Series B preferred stock    
Shareholders’ Equity:    
Preferred stock, no par value; Shares authorized - 150,000; Series A Shares issued and outstanding - 40,250 and 40,250, respectively, Series B Shares issued and outstanding - 80,500 and 80,500, respectively $ 77,611 $ 77,611
v3.20.2
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Accumulated amortization $ 11,903 $ 10,437
Accumulated depreciation $ 15,597 $ 13,976
Shares Authorized, Preferred Stock (in shares) 150,000 150,000
Shares Authorized, Common Stock (in shares) 45,000,000 45,000,000
Shares Issued, Common Stock (in shares) 32,108,733 31,482,408
Shares Outstanding, Common Stock (in shares) 29,828,143 29,355,986
Treasury Stock (in shares) 2,280,590 2,126,422
Series A preferred stock    
Shares Issued, Preferred Stock (in shares) 40,250 40,250
Shares Outstanding, Preferred Stock (in shares) 40,250 40,250
Series B preferred stock    
Shares Issued, Preferred Stock (in shares) 80,500 80,500
Shares Outstanding, Preferred Stock (in shares) 80,500 80,500
v3.20.2
Unaudited Condensed Consolidated Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Interest income:        
Loans and leases $ 46,256 $ 61,551 $ 152,551 $ 179,392
Investments 3,687 3,993 11,528 12,497
Interest-earning deposits 279 2,188 2,006 5,084
Total interest income 50,222 67,732 166,085 196,973
Interest expense:        
Deposits 13,898 34,114 57,095 95,602
Borrowings 2,850 1,302 7,110 7,380
Total interest expense 16,748 35,416 64,205 102,982
Net interest income 33,474 32,316 101,880 93,991
Provision (credit) for loan and lease losses 7,430 (607) 16,428 (1,696)
Net interest income after provision for loan and lease losses 26,044 32,923 85,452 95,687
Non-interest income:        
Net gain on the sale and call of debt securities 3,744 206 3,815 346
Other income 481 371 1,712 2,105
Total non-interest income 16,889 14,243 43,202 39,291
Non-interest expense:        
Compensation and employee benefits 18,524 18,707 52,539 52,467
Premises and equipment expense 1,488 1,420 4,389 3,866
Professional fees 1,596 1,305 4,175 3,706
FDIC insurance expense 3,030 994 7,760 3,462
General insurance expense 294 258 834 811
State capital shares tax expense (benefit) 366 (720) 1,115 40
Travel and entertainment expense 592 1,339 1,735 3,214
Technology and data services 2,576 2,082 7,294 6,246
Intangible amortization expense 478 502 1,466 1,506
Marketing and advertising 394 518 1,694 1,661
Other operating expenses 2,089 1,368 5,667 5,051
Total non-interest expense 31,427 27,773 88,668 82,030
Income before tax 11,506 19,393 39,986 52,948
Income tax expense 2,177 3,059 7,362 7,359
Net income 9,329 16,334 32,624 45,589
Preferred stock dividends 1,962 1,962 5,886 3,791
Net income available to common shareholders $ 7,367 $ 14,372 $ 26,738 $ 41,798
Earnings per common share:        
Basic (in usd per share) $ 0.26 $ 0.52 $ 0.95 $ 1.50
Diluted (in usd per share) $ 0.26 $ 0.50 $ 0.93 $ 1.45
Investment management fees        
Non-interest income:        
Total non-interest income $ 8,095 $ 8,902 $ 23,471 $ 27,580
Service charges on deposits        
Non-interest income:        
Total non-interest income 235 129 763 343
Swap fees        
Non-interest income:        
Total non-interest income 3,953 4,171 12,179 7,666
Commitment and other loan fees        
Non-interest income:        
Total non-interest income $ 381 $ 464 $ 1,262 $ 1,251
v3.20.2
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income $ 9,329 $ 16,334 $ 32,624 $ 45,589
Other comprehensive income (loss):        
Unrealized holding gains on debt securities, net of tax expense of $856, $272, $651 and $1,466, respectively 3,088 787 2,041 4,477
Reclassification adjustment for gains included in net income on debt securities, net of tax expense of $(904), $(32), $(909) and $(62), respectively (2,835) (101) (2,852) (198)
Unrealized holding gains (losses) on derivatives, net of tax expense (benefit) of $5, $(231), $(2,218) and $(787), respectively 27 (736) (7,040) (2,506)
Reclassification adjustment for losses (gains) included in net income on derivatives, net of tax benefit (expense) of $248, $(37), $398 and $(305), respectively 780 (120) 1,249 (972)
Other comprehensive income (loss) 1,060 (170) (6,602) 801
Total comprehensive income $ 10,389 $ 16,164 $ 26,022 $ 46,390
v3.20.2
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement of Comprehensive Income [Abstract]        
Tax expense (benefit) on unrealized holding gains (losses) on debt securities $ 856 $ 272 $ 651 $ 1,466
Tax benefit (expense) on debt securities losses (gains) reclassified from other comprehensive income (904) (32) (909) (62)
Tax expense (benefit) on unrealized holding gains (losses) on derivatives 5 (231) (2,218) (787)
Tax benefit (expense) on derivative losses (gains) reclassified from other comprehensive income $ 248 $ (37) $ 398 $ (305)
v3.20.2
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, 2018 $ 479,354 $ 38,468 $ 293,355 $ 15,364 $ 164,009 $ (1,331) $ (30,511)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 45,589       45,589    
Other comprehensive income (loss) 801         801  
Issuance of preferred stock, net of offering costs 77,596 77,596          
Preferred stock dividends (3,791)       (3,791)    
Exercise of stock options 458   833 (375)      
Purchase of treasury stock (1,991)           (1,991)
Stock-based compensation 6,491     6,491      
Ending balance at Sep. 30, 2019 604,507 116,064 294,188 21,480 205,807 (530) (32,502)
Beginning balance at Jun. 30, 2019 588,981 116,142 293,837 19,182 191,435 (360) (31,255)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 16,334       16,334    
Other comprehensive income (loss) (170)         (170)  
Issuance of preferred stock, net of offering costs (78) (78)          
Preferred stock dividends (1,962)       (1,962)    
Exercise of stock options 201   351 (150)      
Purchase of treasury stock (1,247)           (1,247)
Stock-based compensation 2,448     2,448      
Ending balance at Sep. 30, 2019 604,507 116,064 294,188 21,480 205,807 (530) (32,502)
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)
v3.20.2
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Preferred Stock    
Offering costs $ 78 $ 2,904
v3.20.2
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash flows from operating activities:    
Net income $ 32,624 $ 45,589
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and intangible amortization expense 3,087 2,711
Amortization of deferred financing costs 90 84
Provision (credit) for loan and lease losses 16,428 (1,696)
Stock-based compensation expense 7,215 6,491
Net gain on the sale or call of debt securities available-for-sale (3,762) (260)
Net gain on the call of debt securities held-to-maturity (53) (86)
Income from equity securities 0 (881)
Income from debt securities trading (239) 0
Purchase of debt securities trading (20,932) 0
Proceeds from the sale of debt securities trading 21,171 0
Net amortization of premiums and discounts on debt securities 1,555 40
Increase in investment management fees receivable, net (67) (154)
Decrease (increase) in accrued interest receivable 4,044 (1,455)
Increase (decrease) in accrued interest payable (1,178) 501
Bank owned life insurance income (1,298) (1,298)
Increase in income taxes payable 2,812 1,997
Decrease in prepaid income taxes 3,163 9,130
Deferred tax provision 724 705
Decrease in accounts payable and other accrued expenses (1,901) (9,951)
Cash received for reimbursement of leasehold improvements 2,196 0
Other, net (1,600) (2,735)
Net cash provided by operating activities 64,079 48,732
Cash flows from investing activities:    
Purchase of debt securities available-for-sale (467,245) (59,110)
Purchase of debt securities held-to-maturity (436,768) (174,614)
Proceeds from the sale of debt securities available-for-sale 120,400 4,993
Proceeds from the sale of equity securities 0 8,844
Principal repayments and maturities of debt securities available-for-sale 44,322 32,171
Principal repayments and maturities of debt securities held-to-maturity 378,367 183,585
Investment in low income housing and historic tax credits (8,160) (12,201)
Investment in small business investment companies (811) (1,043)
Net redemption of Federal Home Loan Bank stock 11,040 9,147
Net increase in loans and leases (1,076,716) (881,944)
Proceeds from the sale of other real estate owned 1,527 0
Additions to office properties and equipment (3,719) (3,843)
Net cash used in investing activities (1,437,763) (894,015)
Cash flows from financing activities:    
Net increase in deposit accounts 1,549,100 1,044,144
Net decrease in Federal Home Loan Bank advances (55,000) (35,000)
Net decrease in line of credit advances 0 (4,250)
Net proceeds from issuance of subordinated notes payable 95,349 0
Net proceeds from issuance of preferred stock 0 77,596
Repayment of subordinated debt 0 (35,000)
Net proceeds from exercise of stock options 285 458
Cancellation of stock options (2,484) 0
Payment of contingent consideration 0 (2,920)
Purchase of treasury stock, net of reissuance (3,233) (1,991)
Dividends paid on preferred stock (5,886) (3,791)
Net cash provided by financing activities 1,578,131 1,039,246
Net change in cash and cash equivalents during the period 204,447 193,963
Cash and cash equivalents at beginning of the period 403,855 189,985
Cash and cash equivalents at end of the period 608,302 383,948
Cash paid (received) during the period for:    
Interest expense 65,424 102,397
Income taxes 663 (4,473)
Other non-cash activity:    
Operating lease right-of-use asset adjustment 0 23,088
Loan foreclosures and repossessions $ 0 $ 1,492
v3.20.2
Basis of Information and Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2020
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 regionally located middle-market businesses and financial services providers and the private banking needs of high-net-worth individuals nation-wide. The Bank has two wholly owned subsidiaries: TSC Equipment Finance LLC (“TSC Equipment Finance”), established to hold and manage loans and leases of our equipment finance business, and Meadowood Asset Management, LLC (“Meadowood”), established to hold and manage other real estate owned by the bank and/or foreclosed properties for the Bank.

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

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

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

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

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

CONSOLIDATION
Our consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank, Chartwell and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly owned subsidiaries, TSC Equipment Finance and Meadowood, after elimination of inter-company accounts and transactions. The unaudited condensed consolidated financial statements of the Company presented herein have been prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited condensed consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the related notes for the fiscal year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2020.
CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold and short-term investments that have an original maturity of 90 days or less. 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; (2) trading, which are debt securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in non-interest income; (3) available-for-sale, which are debt securities not classified as either held-to-maturity or trading securities and reported at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss), on an after-tax basis; or (4) equity securities, which are reported at fair value, with unrealized gains and losses included in non-interest income.

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

FEDERAL HOME LOAN BANK STOCK
The Company is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company’s intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company’s holdings in the FHLB stock were recoverable at par value as of September 30, 2020 and December 31, 2019. Cash and stock dividends are reported as interest income on investments in the consolidated statements of income.

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

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

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

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

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

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

In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan and lease portfolio as of September 30, 2020 and December 31, 2019. Management’s judgment takes into consideration general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available to it in making such determinations, and that the present allowance for loan and lease losses is adequate, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance. In addition, as an integral part of their periodic examination, certain regulatory agencies review the adequacy of the Bank’s allowance for loan and lease losses and may direct the Bank to make additions to the allowance based on their judgments about information available to them at the time of their examination.

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

In management’s opinion, a loan or lease is impaired, based upon current information and events, when it is probable that the loan or lease will not be repaid according to its original contractual terms, including both principal and interest, or if a loan is designated as a TDR. Management performs individual assessments of impaired loans and leases to determine the existence of loss exposure based upon a discounted cash flows method or where a loan is collateral dependent, based upon the fair value of the collateral less estimated selling costs. During the nine months ended September 30, 2020, certain loan modifications were done in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. Accordingly, these loans and leases were not categorized as TDRs.

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

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

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

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

Investment management fees receivable represent amounts due for contractual investment management services provided to the Company’s clients, primarily institutional investors, mutual funds and individual investors. Management performs credit evaluations of its customers’ financial condition when it is deemed to be necessary and does not require collateral. The Company provides an allowance for uncollectible accounts based on specifically identified receivables. Bad debt expense is recorded to other non-interest expense on the consolidated statements of income and the allowance for uncollectible accounts is recorded to investment management fees receivable, net on the consolidated statements of financial position. Investment management fees receivable are considered delinquent when payment is not received within contractual terms and are charged off against the allowance for uncollectible accounts when management determines that recovery is unlikely and the Company ceases its collection efforts. There was no bad debt expense recorded for the nine months ended September 30, 2020, and 2019 and no allowance for uncollectible accounts as of September 30, 2020 and December 31, 2019.

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

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

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

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

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

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

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

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

EARNINGS PER COMMON SHARE
Earnings per common share (“EPS”) is computed using the two-class method, where net income is reduced by dividends declared on our preferred stock to derive net income available to common shareholders. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and the vesting of restricted stock awards granted utilizing the treasury stock method.
STOCK-BASED COMPENSATION
The Company accounts for its stock-based compensation awards based on estimated fair values of stock-based awards made to employees and directors. Compensation cost for all stock-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in compensation and employee benefits expense in the consolidated statements of income and recorded as a component of additional paid-in capital. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.

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

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

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

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

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

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

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

Income tax effects in accumulated other comprehensive income (loss) are released as investments are sold or matured and as liabilities are extinguished.
TREASURY STOCK
The repurchase of the Company’s common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings.

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

During the nine months ended September 30, 2020, the Company made changes to certain Non-Interest Expense line items appearing on the Unaudited Condensed Consolidated Statement of Income to better align with and provide additional clarity on how management views the business. All prior periods have been adjusted to conform the changes and provide comparability to the new presentation.

Marketing and Advertising, which was previously a component of Other Operating Expenses, is now presented separately.

Technology and Data Services is also presented separately and includes data processing expense, data and information services and certain software costs. These costs were previously included in Premises and Equipment.

Telephone expense, which was previously reported as Other Operating Expense, is now presented in Premises and Equipment Expense. Finally Premises and Occupancy Costs was renamed to Premise and Equipment Expense.
v3.20.2
Investment Securities
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
Debt securities available-for-sale and held-to-maturity were comprised of the following:
September 30, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$175,369 $1,375 $607 $176,137 
Trust preferred securities18,192 — 466 17,726 
Agency collateralized mortgage obligations22,929 34 9 22,954 
Agency mortgage-backed securities325,374 2,117 667 326,824 
Agency debentures8,436 821 — 9,257 
Total debt securities available-for-sale550,300 4,347 1,749 552,898 
Debt securities held-to-maturity:
Corporate bonds23,674 455 32 24,097 
Agency debentures79,143 1,049 18 80,174 
Municipal bonds7,741 84 — 7,825 
Residential mortgage-backed securities139,161 160 293 139,028 
Agency mortgage-backed securities4,322 830 — 5,152 
Total debt securities held-to-maturity254,041 2,578 343 256,276 
Total debt securities$804,341 $6,925 $2,092 $809,174 
December 31, 2019
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$172,704 $2,821 $107 $175,418 
Trust preferred securities18,092 216 48 18,260 
Agency collateralized mortgage obligations27,262 11 80 27,193 
Agency mortgage-backed securities18,058 451 — 18,509 
Agency debentures8,961 441 — 9,402 
Total debt securities available-for-sale245,077 3,940 235 248,782 
Debt securities held-to-maturity:
Corporate bonds24,678 619 — 25,297 
Agency debentures149,912 628 935 149,605 
Municipal bonds17,094 144 — 17,238 
Agency mortgage-backed securities4,360 255 — 4,615 
Total debt securities held-to-maturity196,044 1,646 935 196,755 
Total debt securities$441,121 $5,586 $1,170 $445,537 

Interest income on investment securities was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2020201920202019
Taxable interest income$3,436 $3,521 $10,437 $11,034 
Non-taxable interest income55 90 192 295 
Dividend income196 382 899 1,168 
Total interest income on investment securities$3,687 $3,993 $11,528 $12,497 
As of September 30, 2020, the contractual maturities of the debt securities were:
September 30, 2020
Available-for-SaleHeld-to-Maturity
(Dollars in thousands)Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Due in less than one year$31,732 $31,915 $2,142 $2,164 
Due from one to five years71,226 72,002 14,114 14,433 
Due from five to ten years100,560 100,069 86,052 86,322 
Due after ten years346,782 348,912 151,733 153,357 
Total debt securities$550,300 $552,898 $254,041 $256,276 

The $348.9 million fair value of debt securities available-for-sale with a contractual maturity due after 10 years as of September 30, 2020, included $32.7 million, or 9.4%, that are floating-rate securities. The $86.1 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to 10 years as of September 30, 2020, included $14.3 million that have call provisions within the next five years that would either mature, if called, or become floating-rate securities after the call date.

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

Proceeds from the sale and call of 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)20202019202020192020201920202019
Proceeds from sales$64,363 $— $— $— $120,400 $4,993 $— $— 
Proceeds from calls— 9,435 118,745 63,529 3,580 13,517 366,503 180,824 
Total proceeds$64,363 $9,435 $118,745 $63,529 $123,980 $18,510 $366,503 $180,824 
Gross realized gains$3,740 $134 $4 $72 $3,762 $260 $53 $86 
Gross realized losses— — — — — — — — 
Net realized gains$3,740 $134 $4 $72 $3,762 $260 $53 $86 

Debt securities available-for-sale of $2.4 million as of September 30, 2020, were held in safekeeping at the FHLB and were included in the calculation of borrowing capacity. Additionally, there were $28.8 million of debt securities held-to-maturity that were pledged as collateral for certain deposit relationships.
The following tables show the fair value and gross unrealized losses on temporarily impaired debt securities available-for-sale and held-to-maturity, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2020 and December 31, 2019, respectively:
September 30, 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$29,771 $172 $19,565 $435 $49,336 $607 
Trust preferred securities17,726 466 — — 17,726 466 
Agency collateralized mortgage obligations— — 10,279 9 10,279 9 
Agency mortgage-backed securities155,074 667 — — 155,074 667 
Total debt securities available-for-sale202,571 1,305 29,844 444 232,415 1,749 
Debt securities held-to-maturity:
Corporate bonds5,968 32 — — 5,968 32 
Agency debentures20,032 18 — — 20,032 18 
Residential mortgage-backed securities75,405 293 — — 75,405 293 
Agency mortgage-backed securities— — — — — — 
Total debt securities held-to-maturity101,405 343 — — 101,405 343 
Total temporarily impaired debt securities (1)
$303,976 $1,648 $29,844 $444 $333,820 $2,092 
(1)The number of investment positions with unrealized losses totaled 29 for available-for-sale securities and 10 for held-to-maturity securities.
December 31, 2019
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
Corporate bonds$4,942 $58 $19,951 $49 $24,893 $107 
Trust preferred securities— — 4,417 48 4,417 48 
Agency collateralized mortgage obligations22,117 66 2,544 14 24,661 80 
Total debt securities available-for-sale27,059 124 26,912 111 53,971 235 
Debt securities held-to-maturity:
Agency debentures87,879 935 — — 87,879 935 
Total debt securities held-to-maturity87,879 935 — — 87,879 935 
Total temporarily impaired debt securities (1)
$114,938 $1,059 $26,912 $111 $141,850 $1,170 
(1)The number of investment positions with unrealized losses totaled 86 for available-for-sale securities and 53 for held-to-maturity securities.

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

There were no outstanding debt securities classified as trading as of September 30, 2020 and December 31, 2019.

There was $13.3 million and $24.3 million in FHLB stock outstanding as of September 30, 2020 and December 31, 2019, respectively.
v3.20.2
Loans and Leases
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
LOANS AND LEASES LOANS AND LEASESThe Company generates loans through the private banking and middle-market banking channels. The private banking channel primarily includes loans made to high-net-worth individuals, trusts and businesses that are typically secured by cash, marketable
securities and/or cash value life insurance. The middle-market banking channel consists of our C&I loan and lease portfolio and CRE loan portfolio, which serve middle-market businesses and real estate developers in our primary markets and certain financial services companies with whom we have multiple relationship components.

Loans and leases held-for-investment were comprised of the following:
September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$4,449,714 $1,133,478 $2,062,290 $7,645,482 
Deferred loan costs (fees)9,053 4,810 (4,899)8,964 
Loans and leases held-for-investment, net of deferred fees and costs4,458,767 1,138,288 2,057,391 7,654,446 
Allowance for loan and lease losses(2,210)(7,772)(20,724)(30,706)
Loans and leases held-for-investment, net$4,456,557 $1,130,516 $2,036,667 $7,623,740 
December 31, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$3,688,779 $1,080,767 $1,801,375 $6,570,921 
Deferred loan costs (fees)6,623 4,942 (4,927)6,638 
Loans and leases held-for-investment, net of deferred fees and costs3,695,402 1,085,709 1,796,448 6,577,559 
Allowance for loan and lease losses(1,973)(5,262)(6,873)(14,108)
Loans and leases held-for-investment, net$3,693,429 $1,080,447 $1,789,575 $6,563,451 

The Company’s customers have unused loan commitments or other line of credit availability based on the value of eligible collateral or other terms and conditions under their loan agreements. Often these commitments or other line of credit availability are not fully utilized and therefore the total amount does not necessarily represent future cash requirements. The amount of unfunded commitments or other line of credit availability, including standby letters of credit, as of September 30, 2020 and December 31, 2019, was $6.25 billion and $4.91 billion, respectively. These unfunded commitments included $5.09 billion and $3.87 billion of commitments that were due on demand with no stated maturity as of September 30, 2020 and December 31, 2019, respectively. The interest rate for each commitment and demand line of credit is established at origination and may be based on the prevailing index rate market conditions at the time of funding. The reserve for losses on unfunded commitments was $1.4 million and $645,000 as of September 30, 2020 and December 31, 2019, respectively, which includes reserves for probable losses on unfunded loan commitments, including standby letters of credit and also risk participations.

The total unfunded commitments above included loans in the process of origination totaling approximately $61.4 million and $20.7 million as of September 30, 2020 and December 31, 2019, respectively, which extend over varying periods of time.

The Company issues standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. The Company would be required to perform under a standby letter of credit when drawn upon by the guaranteed party in the case of non-performance by the Company’s customer. Collateral may be obtained based on management’s credit assessment of the customer. The amount of unfunded commitments related to standby letters of credit as of September 30, 2020 and December 31, 2019, included in the total unfunded commitments above, was $73.1 million and $72.8 million, respectively. Should the Company be obligated to perform under any standby letters of credit, the Company will seek repayment from the customer for amounts paid. During the nine months ended September 30, 2020 and 2019, there were draws on letters of credit totaling $49,000 and $135,000, respectively, which were repaid by the borrowers. Most of these commitments are expected to expire without being drawn upon and the total amount does not necessarily represent future cash requirements. The potential liability for losses on standby letters of credit was included in the reserve for losses on unfunded commitments.

The Company has entered into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution counterparties should the customers fail to perform on their interest rate derivative contracts. The potential liability for outstanding obligations was included in the reserve for losses on unfunded commitments.
v3.20.2
Allowance for Loan and Lease Losses
 9 Months Ended
Sep. 30, 2020
Allowance for Loan and Lease Losses [Abstract]  
ALLOWANCE FOR LOAN AND LEASE LOSSES ALLOWANCE FOR LOAN AND LEASE LOSSES
Our allowance for loan and lease losses represents our estimate of probable loan and lease losses inherent in the portfolio at a specific point in time. This estimate includes losses associated with specifically identified loans and leases, as well as estimated probable credit losses inherent in the remainder of the loan and lease portfolio. Additions are made to the allowance through both periodic provisions recorded in the consolidated statements of income and recoveries of losses previously incurred. Reductions to the allowance occur as loans and leases are charged off or when the credit history of any of the Company’s three loan portfolios (private banking loans, C&I loans and leases, and CRE loans) improves. Management evaluates the adequacy of the allowance quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions. This evaluation is subjective and requires material estimates that may change over time. In addition, management evaluates the overall methodology for the allowance for loan and lease losses on an annual basis. The calculation of the allowance for loan and lease losses takes into consideration the inherent risk identified within each of the Company’s three loan portfolios. In addition, management considers the historical loss experience of each loan portfolio to ensure that the allowance for loan and lease losses is sufficient to cover probable losses inherent in such loan portfolios. Refer to Note 1, Summary of Significant Accounting Policies, to our unaudited condensed consolidated financial statements for more details on the Company’s allowance for loan and lease losses policy.

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

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

The underlying collateral is the most important indicator of risk for this loan portfolio. The overall lower risk profile of this portfolio is driven by loans secured by cash, marketable securities and/or cash value life insurance, which were 98.2% and 97.4% of total private banking loans as of September 30, 2020 and December 31, 2019, respectively.

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

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

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

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

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

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

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

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

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

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

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

The following tables present the recorded investment in loans by credit quality indicator:
September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Pass$4,458,228 $1,121,372 $2,036,007 $7,615,607 
Special mention— 16,458 4,639 21,097 
Substandard539 458 16,745 17,742 
Loans and leases held-for-investment$4,458,767 $1,138,288 $2,057,391 $7,654,446 
December 31, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Pass$3,691,866 $1,069,932 $1,780,768 $6,542,566 
Special mention— 15,777 14,284 30,061 
Substandard3,536 — 1,396 4,932 
Loans and leases held-for-investment$3,695,402 $1,085,709 $1,796,448 $6,577,559 

Changes in the allowance for loan and lease losses were as follows for the three months ended September 30, 2020 and 2019:
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 loan and lease losses59 226 7,145 7,430 
Charge-offs— — — — 
Recoveries— — — — 
Balance, end of period$2,210 $7,772 $20,724 $30,706 
Three Months Ended September 30, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,140 $5,911 $5,965 $14,016 
Provision (credit) for loan and lease losses(177)(672)242 (607)
Charge-offs(112)— — (112)
Recoveries— 77 — 77 
Balance, end of period$1,851 $5,316 $6,207 $13,374 

Changes in the allowance for loan and lease losses were as follows for the nine months ended September 30, 2020 and 2019:
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 loan and lease 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 
Nine Months Ended September 30, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$1,942 $5,764 $5,502 $13,208 
Provision (credit) for loan and lease losses21 (2,422)705 (1,696)
Charge-offs(112)— — (112)
Recoveries— 1,974 — 1,974 
Balance, end of period$1,851 $5,316 $6,207 $13,374 

The following tables present the age analysis of past due loans and leases segregated by class:
September 30, 2020
(Dollars in thousands)30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More Past Due Total Past DueCurrentTotal
Private banking$— $— $— $— $4,458,767 $4,458,767 
Commercial and industrial— — 458 458 1,137,830 1,138,288 
Commercial real estate— — 6,296 6,296 2,051,095 2,057,391 
Loans and leases held-for-investment$— $— $6,754 $6,754 $7,647,692 $7,654,446 
December 31, 2019
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due90 Days or More Past Due Total Past DueCurrentTotal
Private banking$261 $— $184 $445 $3,694,957 $3,695,402 
Commercial and industrial— — — — 1,085,709 1,085,709 
Commercial real estate— — — — 1,796,448 1,796,448 
Loans and leases held-for-investment$261 $— $184 $445 $6,577,114 $6,577,559 

Non-Performing and Impaired Loans

Management monitors the delinquency status of the Company’s loan portfolio on a monthly basis. Loans are considered non-performing when interest and principal are 90 days or more past due or management has determined that it is probable the borrower is unable to meet payments as they become due. The risk of loss is generally highest for non-performing loans.
Management determines loans to be impaired when, based upon current information and events, it is probable that the loan will not be repaid according to the original contractual terms of the loan agreement, including both principal and interest, or if a loan is designated as a TDR. Refer to Note 1, Summary of Significant Accounting Policies, to our unaudited condensed consolidated financial statements for the Company’s policy on evaluating loans for impairment and interest income.

The following tables present the Company’s investment in loans considered to be impaired and related information on those impaired loans:
As of and for the Nine Months Ended September 30, 2020
(Dollars in thousands)Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial458 457 103 458 — 
Commercial real estate6,296 6,317 1,417 6,300 — 
Total with a related allowance recorded6,754 6,774 1,520 6,758 — 
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 estate6,296 6,317 1,417 6,300 — 
Total$6,754 $6,774 $1,520 $6,758 $— 
As of and for the Twelve Months Ended December 31, 2019
(Dollars in thousands)Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$171 $193 $171 $171 $— 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total with a related allowance recorded171 193 171 171 — 
Without a related allowance recorded:
Private banking13 13 — 13 — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded13 13 — 13 — 
Total:
Private banking184 206 171 184 — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total$184 $206 $171 $184 $— 

Impaired loans as of September 30, 2020 and December 31, 2019, were $6.8 million and $184,000, respectively. There was no interest income recognized on impaired loans that were also on non-accrual status for the nine months ended September 30, 2020, and the twelve months ended December 31, 2019. As of September 30, 2020 and December 31, 2019, there were no loans 90 days or more past due and still accruing interest income.
Impaired loans are evaluated using a discounted cash flow method or based on the fair value of the collateral less estimated selling costs. Based on those evaluations there were specific reserves totaling $1.5 million and $171,000 as of September 30, 2020 and December 31, 2019, respectively.

The following tables present the allowance for loan and lease losses and recorded investment in loans by class:
September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment$— $103 $1,417 $1,520 
Collectively evaluated for impairment2,210 7,669 19,307 29,186 
Total allowance for loan and lease losses$2,210 $7,772 $20,724 $30,706 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $458 $6,296 $6,754 
Collectively evaluated for impairment4,458,767 1,137,830 2,051,095 7,647,692 
Loans and leases held-for-investment$4,458,767 $1,138,288 $2,057,391 $7,654,446 
December 31, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment$171 $— $— $171 
Collectively evaluated for impairment1,802 5,262 6,873 13,937 
Total allowance for loan and lease losses$1,973 $5,262 $6,873 $14,108 
Loans and leases held-for-investment:
Individually evaluated for impairment$184 $— $— $184 
Collectively evaluated for impairment3,695,218 1,085,709 1,796,448 6,577,375 
Loans and leases held-for-investment$3,695,402 $1,085,709 $1,796,448 $6,577,559 

Troubled Debt Restructuring

The aggregate recorded investment of impaired loans with terms modified through a TDR was $0 and $171,000 as of September 30, 2020 and December 31, 2019, respectively, which were also on non-accrual. There were no unused commitments on loans designated as TDRs as of September 30, 2020 and December 31, 2019.

The modifications made to restructured loans typically consist of an extension of the payment terms or the deferral of principal payments. There were no loans modified as TDRs within 12 months of the corresponding balance sheet date with a payment default during the three and nine months ended September 30, 2020 and 2019.

There were no loans newly designated as TDRs during the three and nine months ended September 30, 2020 and 2019.

Other Real Estate Owned

As of September 30, 2020 and December 31, 2019, the balance of the OREO was $2.7 million and $4.3 million, respectively. During the nine months ended September 30, 2020, a property was sold from OREO for $1.5 million with a net gain of $65,000. There were no residential mortgage loans in the process of foreclosure as of September 30, 2020.
v3.20.2
Deposits
 9 Months Ended
Sep. 30, 2020
Deposits [Abstract]  
DEPOSITS DEPOSITS
As of September 30, 2020 and December 31, 2019, deposits were comprised of the following:
Interest Rate
Range		Weighted Average
Interest Rate		Balance
(Dollars in thousands)September 30,
2020		September 30,
2020		December 31,
2019		September 30,
2020		December 31,
2019
Demand and savings accounts:
Noninterest-bearing checking accounts———$439,878 $356,102 
Interest-bearing checking accounts0.05 to 1.70%0.44%1.57%3,024,007 1,398,264 
Money market deposit accounts0.10 to 3.25%0.73%1.84%3,662,860 3,426,745 
Total demand and savings accounts7,126,745 5,181,111 
Certificates of deposit0.06 to 3.22%1.10%2.24%1,056,968 1,453,502 
Total deposits$8,183,713 $6,634,613 
Weighted average rate on interest-bearing accounts0.67%1.87%

As of September 30, 2020 and December 31, 2019, the Bank had total brokered deposits of $528.7 million and $766.6 million, respectively. Reciprocal deposits through Certificate of Deposit Account Registry Service® (“CDARS®”) and Insured Cash Sweep® (“ICS®”) totaled $1.71 billion and $857.9 million as of September 30, 2020 and December 31, 2019, respectively, and were considered non-brokered.

As of September 30, 2020 and December 31, 2019, certificates of deposit with balances of $100,000 or more, excluding brokered and reciprocal deposits, totaled $506.9 million and $551.5 million, respectively. As of September 30, 2020 and December 31, 2019, certificates of deposit with balances of $250,000 or more, excluding brokered and reciprocal deposits, totaled $160.4 million and $233.5 million.

The contractual maturity of certificates of deposit was as follows:
(Dollars in thousands)September 30,
2020		December 31,
2019
12 months or less$946,117 $1,244,838 
12 months to 24 months101,019 168,437 
24 months to 36 months9,832 40,227 
Total$1,056,968 $1,453,502 

Interest expense on deposits was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2020201920202019
Interest-bearing checking accounts$3,280 $5,795 $11,213 $15,303 
Money market deposit accounts6,944 18,870 28,975 53,608 
Certificates of deposit3,674 9,449 16,907 26,691 
Total interest expense on deposits$13,898 $34,114 $57,095 $95,602 
v3.20.2
Borrowings
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
As of September 30, 2020 and December 31, 2019, borrowings were comprised of the following:
September 30, 2020December 31, 2019
(Dollars in thousands)Interest RateEnding BalanceMaturity DateInterest RateEnding BalanceMaturity Date
FHLB borrowings:
FHLB line of credit—%$— 1.81%$55,000 5/1/2020
Issued 7/8/20200.46%50,000 10/8/2020—%— 
Issued 9/1/20200.40%150,000 12/1/2020—%— 
Issued 9/2/20200.40%50,000 12/2/2020—%— 
Issued 9/21/20200.39%50,000 12/21/2020—%— 
Issued 12/12/2019—%— 1.85%100,000 1/13/2020
Issued 12/2/2019—%— 1.91%150,000 3/2/2020
Issued 10/8/2019—%— 2.00%50,000 1/8/2020
Subordinated notes payable (net of debt issuance costs of $1,948 and $0, respectively)5.75%95,439 5/15/2030—%— 
Total borrowings, net$395,439 $355,000 

During the three months ended June 30, 2020, the Company completed a private placement of subordinated notes payable, 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 qualify under federal regulatory rules as Tier 2 capital for the holding company.

The Bank’s FHLB borrowing capacity is based on the collateral value of certain securities held in safekeeping at the FHLB and loans pledged to the FHLB. The Bank submits a quarterly Qualifying Collateral Report (“QCR”) to the FHLB to update the value of the loans pledged. As of September 30, 2020, the Bank’s borrowing capacity is based on the information provided in the June 30, 2020, QCR filing. As of September 30, 2020, the Bank had securities held in safekeeping at the FHLB with a fair value of $2.4 million, combined with pledged loans of $1.28 billion, for a gross borrowing capacity of $914.3 million, of which $300.0 million was outstanding in advances. As of December 31, 2019, there was $355.0 million outstanding in advances from the FHLB. When the Bank borrows from the FHLB, interest is charged at the FHLB’s posted rates at the time of the borrowing.

The Bank maintains an unsecured line of credit of $10.0 million with M&T Bank and an unsecured line of credit of $20.0 million with Texas Capital Bank. As of September 30, 2020 and December 31, 2019, there were no outstanding borrowings under these lines of credit and they are available to the Bank at the lenders’ discretion. In addition, the Bank maintains an $8.0 million unsecured line of credit with PNC Bank for private label credit card facilities for certain existing commercial clients of the Bank, of which $2.6 million in notional value of credit cards have been issued. The clients of the Bank are responsible for repaying any balances due on these credit cards directly to PNC, however if the customer fails to repay PNC, the Bank could be required to satisfy the obligation to PNC and initiate collection from our customer as part of the existing credit facility of that customer.

The holding company maintains an unsecured line of credit with Texas Capital Bank. As of September 30, 2020 and December 31, 2019, the unsecured line was $75.0 million with no outstanding balance. In October 2020, this line of credit was reduced to $50.0 million.

Interest expense on borrowings was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2020201920202019
FHLB borrowings$1,392 $1,302 $4,711 $6,222 
Line of credit borrowings— — 261 68 
Subordinated notes payable1,458 — 2,138 1,090 
Total interest expense on borrowings$2,850 $1,302 $7,110 $7,380 
v3.20.2
Stock Transactions
 9 Months Ended
Sep. 30, 2020
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]  
STOCK TRANSACTIONS STOCK TRANSACTIONSIn May 2019, the Company completed the issuance and sale of a registered, underwritten public offering of 3,220,000 depositary shares, each representing a 1/40th interest in a share of its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual
Preferred Stock, no par value (the “Series B Preferred Stock”), with a liquidation preference of $1,000 per share (equivalent to $25 per depository share). The Company received net proceeds of $77.6 million from the sale of 80,500 shares of its Series B Preferred Stock (equivalent to 3,220,000 depositary shares), after deducting underwriting discounts, commissions and direct offering expenses. The preferred stock provides Tier 1 capital for the holding company under federal regulatory capital rules.

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

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

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

During the nine months ended September 30, 2020, the Company paid dividends of $2.0 million on its Series A Preferred Stock and $3.8 million on its Series B Preferred Stock. During the nine months ended September 30, 2019, the Company paid dividends of $2.0 million on its Series A Preferred Stock and $1.8 million on its Series B Preferred Stock.

Under authorization by the Board, the Company is permitted to repurchase its common stock up to prescribed amounts, of which $9.8 million remained available as of September 30, 2020. The Board also authorized the Company to utilize some of the share repurchase program authorizations to cancel certain options to purchase shares of its common stock granted by the Company. During the nine months ended September 30, 2020, the Company repurchased 40,000 shares for approximately $670,000, at an average cost of $16.76 per share, which are held as treasury stock. During the nine months ended September 30, 2019, the Company repurchased 90,000 shares for approximately $1.8 million, at an average cost of $20.21 per share, which 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. The Company also reissued 8,500 shares of treasury stock for approximately $135,000 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, 201840,250 28,878,674 2,014,910 
Issuance of preferred stock80,500 — — 
Issuance of restricted common stock— 550,453 — 
Forfeitures of restricted common stock— (74,355)— 
Exercise of stock options— 40,580 — 
Purchase of treasury stock through open market transactions— (90,000)90,000 
Increase in treasury stock related to equity awards— (8,382)8,382 
Balance, September 30, 2019120,750 29,296,970 2,113,292 
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 through open market transactions— (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 
v3.20.2
Regulatory Capital
 9 Months Ended
Sep. 30, 2020
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”), Tier 1 and Total risk-based capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). As of September 30, 2020 and December 31, 2019, TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they were subjected.

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

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 - a common equity tier 1 risk-based capital ratio of 2.5% or more, in addition to the minimum 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.
The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of September 30, 2020 and December 31, 2019:
September 30, 2020
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$716,731 12.85 %$446,355 8.00 % N/AN/A
Bank$692,957 12.46 %$444,791 8.00 %$555,989 10.00 %
Tier 1 risk-based capital ratio
Company$589,176 10.56 %$334,766 6.00 % N/AN/A
Bank$660,841 11.89 %$333,593 6.00 %$444,791 8.00 %
Common equity tier 1 risk-based capital ratio
Company$473,097 8.48 %$251,075 4.50 % N/AN/A
Bank$660,841 11.89 %$250,195 4.50 %$361,393 6.50 %
Tier 1 leverage ratio
Company$589,176 6.23 %$378,310 4.00 % N/AN/A
Bank$660,841 7.00 %$377,750 4.00 %$472,187 5.00 %
December 31, 2019
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$572,221 12.05 %$379,911 8.00 % N/AN/A
Bank$547,532 11.57 %$378,623 8.00 %$473,279 10.00 %
Tier 1 risk-based capital ratio
Company$558,068 11.75 %$284,933 6.00 % N/AN/A
Bank$532,779 11.26 %$283,967 6.00 %$378,623 8.00 %
Common equity tier 1 risk-based capital ratio
Company$442,385 9.32 %$213,700 4.50 % N/AN/A
Bank$532,779 11.26 %$212,975 4.50 %$307,631 6.50 %
Tier 1 leverage ratio
Company$558,068 7.54 %$296,038 4.00 % N/AN/A
Bank$532,779 7.22 %$295,277 4.00 %$369,097 5.00 %
v3.20.2
Earnings Per Common Share
 9 Months Ended
Sep. 30, 2020
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 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands, except per share data)2020201920202019
Net income available to common shareholders$7,367 $14,372 $26,738 $41,798 
Weighted average common shares outstanding:
Basic28,286,250 27,863,767 28,230,180 27,861,515 
Restricted stock - dilutive303,138 600,985 313,726 569,260 
Stock options - dilutive85,055 313,919 135,377 328,633 
Diluted28,674,443 28,778,671 28,679,283 28,759,408 
Earnings per common share:
Basic$0.26 $0.52 $0.95 $1.50 
Diluted$0.26 $0.50 $0.93 $1.45 
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Anti-dilutive shares (1)
791,262 9,000 566,498 13,000 
(1)Includes stock options and/or restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive.
v3.20.2
Derivatives and Hedging Activity
 9 Months Ended
Sep. 30, 2020
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 while at the same time the Company enters into an offsetting derivative transaction in order to eliminate its interest rate risk exposure resulting from such transactions.

FAIR VALUES OF DERIVATIVE INSTRUMENTS ON THE STATEMENTS OF FINANCIAL CONDITION

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated statements of financial condition as of September 30, 2020 and December 31, 2019:
Asset DerivativesLiability Derivatives
as of September 30, 2020as of September 30, 2020
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$— Other liabilities$10,239 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets166,153 Other liabilities166,241 
TotalOther assets$166,153 Other liabilities$176,480 
Asset DerivativesLiability Derivatives
as of December 31, 2019as of December 31, 2019
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$— Other liabilities$2,184 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets55,241 Other liabilities55,289 
TotalOther assets$55,241 Other liabilities$57,473 

The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of September 30, 2020 and December 31, 2019:
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, 2020$166,153 $— $166,153 $— $— $166,153 
December 31, 2019$55,241 $— $55,241 $(850)$— $54,391 
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, 2020$176,480 $— $176,480 $— $(176,480)$— 
December 31, 2019$57,473 $— $57,473 $(850)$(55,753)$870 

CASH FLOW HEDGES OF INTEREST RATE RISK

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

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s cash flow hedge derivatives did not have any hedge ineffectiveness recognized in earnings during the nine months ended September 30, 2020.
Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of September 30, 2020, were as follows:
(Dollars in thousands)Notional
Amount
Effective
Rate (1)
Estimated Increase/
(Decrease) to Interest
Expense in the Next
Twelve Months		Maturity
Date		Remaining Term
(in Months)
Interest rate products:
Issued 1/8/2018$50,000 2.21%$271 1/8/20213
Issued 5/30/201950,000 2.05%926 6/1/202220
Issued 5/30/201950,000 2.03%919 6/1/202332
Issued 5/30/201950,000 2.04%925 6/1/202444
Issued 3/2/202050,000 0.98%387 3/2/202553
Issued 3/20/202050,000 0.60%196 3/20/202554
Total$300,000 $3,624 
(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)2020201920202019
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$(1,028)$156 $32 $(967)

Nine Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2020201920202019
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$(1,647)$1,277 $(9,258)$(3,293)

NON-DESIGNATED HEDGES

The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and primarily result from a service the Company provides to certain customers. The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. Those derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company eliminates its interest rate exposure resulting from such transactions. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of September 30, 2020, the Company had interest rate derivative transactions with an aggregate notional amount of $3.52 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)2020201920202019
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$14 $(17)$(51)$(59)
Equity productsNon-interest income— (32)— (109)
Total$14 $(49)$(51)$(168)

CREDIT-RISK-RELATED CONTINGENT FEATURES

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

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

As of September 30, 2020, the termination value of derivatives for which the Company had master netting arrangements with the counterparty and in a net liability position was $176.5 million, including accrued interest. As of September 30, 2020, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $181.2 million which is considered restricted cash. If the Company had breached any of these provisions as of September 30, 2020, it could have been required to settle its obligations under the agreements at their termination value.
v3.20.2
Disclosures About Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2020
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, 2020 and December 31, 2019:
September 30, 2020
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $176,137 $— $176,137 
Trust preferred securities— 17,726 — 17,726 
Agency collateralized mortgage obligations— 22,954 — 22,954 
Agency mortgage-backed securities— 326,824 — 326,824 
Agency debentures— 9,257 — 9,257 
Interest rate swaps— 166,153 — 166,153 
Total financial assets— 719,051 — 719,051 
Financial liabilities:
Interest rate swaps— 176,480 — 176,480 
Total financial liabilities$— $176,480 $— $176,480 
December 31, 2019
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $175,418 $— $175,418 
Trust preferred securities— 18,260 — 18,260 
Agency collateralized mortgage obligations— 27,193 — 27,193 
Agency mortgage-backed securities— 18,509 — 18,509 
Agency debentures— 9,402 — 9,402 
Interest rate swaps— 55,241 — 55,241 
Total financial assets— 304,023 — 304,023 
Financial liabilities:
Interest rate swaps— 57,473 — 57,473 
Total financial liabilities$— $57,473 $— $57,473 

INVESTMENT SECURITIES
Generally, debt securities are valued using pricing for similar securities, recently executed transactions, and other pricing models utilizing observable inputs and therefore are classified as Level 2.

INTEREST RATE SWAPS
The fair value of interest rate swaps is estimated using inputs that are observable or that can be corroborated by observable market data and therefore are classified as Level 2. These fair value estimations include primarily market observable inputs such as the forward LIBOR swap curve or its ongoing replacement.
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, 2020 and December 31, 2019:
September 30, 2020
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $5,234 $5,234 
Other real estate owned— — 2,724 2,724 
Total assets$— $— $7,958 $7,958 
December 31, 2019
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $13 $13 
Other real estate owned— — 4,250 4,250 
Total assets$— $— $4,263 $4,263 

As of September 30, 2020 and December 31, 2019, the Company recorded $1.5 million and $171,000, respectively, of specific reserves to allowance for loan and lease losses as a result of adjusting the fair value of impaired loans.

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

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

The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of September 30, 2020 and December 31, 2019:
September 30, 2020
(Dollars in thousands)Fair Value
Valuation Techniques (1)
Significant Unobservable InputsWeighted Average Discount Rate
Loans measured for impairment, net$5,234 CollateralAppraisal value and discount due to salability conditions34%
Other real estate owned$2,724 CollateralAppraisal value and discount due to salability conditions20%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.
December 31, 2019
(Dollars in thousands)Fair Value
Valuation Techniques (1)
Significant Unobservable InputsWeighted Average Multiple/
Discount Rate
Loans measured for impairment, net$13 CollateralAppraisal value and discount due to salability conditions—%
Other real estate owned$4,250 CollateralAppraisal value and discount due to salability conditions17%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table summarizes of the carrying amounts and estimated fair values of financial instruments:
September 30, 2020December 31, 2019
(Dollars in thousands)Fair Value
Level		Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Financial assets:
Cash and cash equivalents1$608,302 $608,302 $403,855 $403,855 
Debt securities available-for-sale2552,898 552,898 248,782 248,782 
Debt securities held-to-maturity2254,041 256,276 196,044 196,755 
Federal Home Loan Bank stock213,284 13,284 24,324 24,324 
Loans and leases held-for-investment, net37,623,740 7,643,405 6,563,451 6,548,432 
Accrued interest receivable218,282 18,282 22,326 22,326 
Investment management fees receivable, net27,627 7,627 7,560 7,560 
Bank owned life insurance271,342 71,342 70,044 70,044 
Other real estate owned32,724 2,724 4,250 4,250 
Interest rate swaps2166,153 166,153 55,241 55,241 
Financial liabilities:
Deposits2$8,183,713 $8,208,159 $6,634,613 $6,648,546 
Borrowings, net2395,439 397,624 355,000 355,003 
Interest rate swaps2176,480 176,480 57,473 57,473 

During the nine months ended September 30, 2020 and 2019, there were no transfers between fair value Levels 1, 2 or 3.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments as of September 30, 2020 and December 31, 2019:
CASH AND CASH EQUIVALENTS
The carrying amount approximates fair value.

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

FEDERAL HOME LOAN BANK STOCK
The carrying value of our FHLB stock, which is carried at cost, approximates fair value.

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

ACCRUED INTEREST RECEIVABLE
The carrying amount approximates fair value.

INVESTMENT MANAGEMENT FEES RECEIVABLE
The carrying amount approximates fair value.

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

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

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

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

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

OFF-BALANCE SHEET INSTRUMENTS
Fair values for the Company’s off-balance sheet instruments, which consist of unfunded lending commitments, demand lines of credit, 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.
v3.20.2
Changes in Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2020
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,
20202019
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$1,692 $(8,222)$(6,530)$1,230 $(1,590)$(360)
Change in unrealized holding gains (losses)3,088 27 3,115 787 (736)51 
Losses (gains) reclassified from other comprehensive income(2,835)780 (2,055)(101)(120)(221)
Net other comprehensive income (loss)253 807 1,060 686 (856)(170)
Balance, end of period$1,945 $(7,415)$(5,470)$1,916 $(2,446)$(530)
Nine Months Ended September 30,
20202019
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$2,756 $(1,624)$1,132 $(2,363)$1,032 $(1,331)
Change in unrealized holding gains (losses)2,041 (7,040)(4,999)4,477 (2,506)1,971 
Losses (gains) reclassified from other comprehensive income(2,852)1,249 (1,603)(198)(972)(1,170)
Net other comprehensive income (loss)(811)(5,791)(6,602)4,279 (3,478)801 
Balance, end of period$1,945 $(7,415)$(5,470)$1,916 $(2,446)$(530)
v3.20.2
Contingent Liabilities
 9 Months Ended
Sep. 30, 2020
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.
v3.20.2
Segments
 9 Months Ended
Sep. 30, 2020
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,
2020		December 31,
2019
Assets:
Bank$9,414,706 $7,686,981 
Investment management81,582 83,295 
Parent and other(2,498)(4,466)
Total assets$9,493,790 $7,765,810 
Three Months Ended September 30, 2020Three Months Ended September 30, 2019
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$50,222 $— $— $50,222 $67,720 $— $12 $67,732 
Interest expense15,297 — 1,451 16,748 35,455 — (39)35,416 
Net interest income (loss)34,925 — (1,451)33,474 32,265 — 51 32,316 
Provision (credit) for loan and lease losses7,430 — — 7,430 (607)— — (607)
Net interest income (loss) after provision for loan and lease losses27,495 — (1,451)26,044 32,872 — 51 32,923 
Non-interest income:
Investment management fees— 8,293 (198)8,095 — 9,016 (114)8,902 
Net gain on the sale and call of debt securities3,744 — — 3,744 206 — — 206 
Other non-interest income5,027 23 — 5,050 5,113 (9)31 5,135 
Total non-interest income (loss)8,771 8,316 (198)16,889 5,319 9,007 (83)14,243 
Non-interest expense:
Intangible amortization expense— 478 — 478 — 502 — 502 
Other non-interest expense23,462 6,868 619 30,949 18,949 8,186 136 27,271 
Total non-interest expense23,462 7,346 619 31,427 18,949 8,688 136 27,773 
Income (loss) before tax12,804 970 (2,268)11,506 19,242 319 (168)19,393 
Income tax expense (benefit)2,357 251 (431)2,177 3,142 3 (86)3,059 
Net income (loss)$10,447 $719 $(1,837)$9,329 $16,100 $316 $(82)$16,334 
Nine Months Ended September 30, 2020Nine Months Ended September 30, 2019
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$166,085 $— $— $166,085 $196,862 $— $111 $196,973 
Interest expense61,844 — 2,361 64,205 101,891 — 1,091 102,982 
Net interest income (loss)104,241 — (2,361)101,880 94,971 — (980)93,991 
Provision (credit) for loan and lease losses16,428 — — 16,428 (1,696)— — (1,696)
Net interest income (loss) after provision for loan and lease losses87,813 — (2,361)85,452 96,667 — (980)95,687 
Non-interest income:
Investment management fees— 23,955 (484)23,471 — 27,912 (332)27,580 
Net gain on the sale and call of debt securities3,815 — — 3,815 346 — — 346 
Other non-interest income15,893 23 — 15,916 10,467 17 881 11,365 
Total non-interest income (loss)19,708 23,978 (484)43,202 10,813 27,929 549 39,291 
Non-interest expense:
Intangible amortization expense— 1,466 — 1,466 — 1,506 — 1,506 
Other non-interest expense64,462 20,498 2,242 87,202 56,872 23,174 478 80,524 
Total non-interest expense64,462 21,964 2,242 88,668 56,872 24,680 478 82,030 
Income (loss) before tax43,059 2,014 (5,087)39,986 50,608 3,249 (909)52,948 
Income tax expense (benefit)7,878 381 (897)7,362 6,825 830 (296)7,359 
Net income (loss)$35,181 $1,633 $(4,190)$32,624 $43,783 $2,419 $(613)$45,589 
v3.20.2
Subsequent Events
 9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
On October 10, 2020, the Company entered into an Investment Agreement with T-VIII PubOpps LP (“T-VIII PubOpps”), an affiliate of investment funds managed by Stone Point Capital LLC. The Company agreed to issue and sell in a private placement to T-VIII PubOpps (i) 2,770,083 shares of common stock for $40.0 million, (ii) 650 shares of Series C Perpetual Non-Cumulative Convertible Preferred Stock (the “Series C Preferred Stock”) for $65.0 million, and (iii) warrants to purchase up to 922,438 shares of a future series of non-voting common stock or, in certain cases subject to certain voting ownership restrictions, voting common stock at an exercise price of $17.50 per share. The Series C Preferred Stock will have a liquidation preference of $100,000 per share, will pay a quarterly dividend at an annualized rate of 6.75% and, subject to shareholder approval, will be convertible into 4,727,273 shares of common stock of a future series of non-voting common stock or, in certain cases subject to certain voting ownership restrictions, voting common stock. A total of 8,419,794 shares of common stock referenced above will be issued or convertible and included in the computation of earnings per share as contemplated by the transaction. The Company expects to receive gross proceeds of $105.0 million, and up to an additional $16.1 million if the warrants are exercised in full. The closing of the transaction is conditioned on customary closing conditions, including the Pennsylvania Department of Banking and Securities approving the transaction or confirming that no such approval is required. The Company expects to complete the transaction in the fourth quarter of 2020.

On October 13, 2020, the Board declared a dividend payable of approximately $679,000, or $0.42 per depositary share, on the Company’s Series A Preferred Stock and a dividend payable of approximately $1.3 million, or $0.40 per depositary share, on the Company’s Series B Preferred Stock, each of which is payable on January 4, 2021, to preferred shareholders of record as of the close of business on December 15, 2020.
v3.20.2
Basis of Information and Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Nature of operation
NATURE OF OPERATION
TriState Capital Holdings, Inc. (“we,” “us,” “our,” the “holding company,” the “parent company,” or the “Company”) is a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended. The Company has three wholly owned subsidiaries: TriState Capital Bank, a Pennsylvania-chartered state bank (the “Bank”); Chartwell Investment Partners, LLC, a registered investment adviser (“Chartwell”); and Chartwell TSC Securities Corp., a registered broker/dealer (“CTSC Securities”).

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

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

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

The Bank conducts business through its main office located in Pittsburgh, Pennsylvania, as well as its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. Chartwell conducts business through its office located in Berwyn, Pennsylvania, and CTSC Securities conducts business through its office located in Pittsburgh, Pennsylvania.
Use of estimates
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of related revenues and expenses during the reporting period. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be different than those anticipated in the estimates, which could materially affect the financial results of our operations and financial condition.

Material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan and lease losses, valuation of goodwill and other intangible assets and their evaluation for impairment, and deferred income taxes and their related recoverability, each of which is discussed later in this section.
Consolidation
CONSOLIDATION
Our consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank, Chartwell and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly owned subsidiaries, TSC Equipment Finance and Meadowood, after elimination of inter-company accounts and transactions. The unaudited condensed consolidated financial statements of the Company presented herein have been prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited condensed consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the related notes for the fiscal year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2020.
Cash and cash equivalents CASH AND CASH EQUIVALENTSFor 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; (2) trading, which are debt securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in non-interest income; (3) available-for-sale, which are debt securities not classified as either held-to-maturity or trading securities and reported at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss), on an after-tax basis; or (4) equity securities, which are reported at fair value, with unrealized gains and losses included in non-interest income.

The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded to interest income on investments over the estimated life of the security utilizing the level yield method. We evaluate impaired investment securities quarterly to determine if impairments are temporary or other-than-temporary. For impaired debt and equity securities, management first determines whether it intends to sell or if it is more likely than not that it will be required to sell the impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements, and securities portfolio management. If the Company intends to sell a security with a fair value below amortized cost or if it is more likely than not that it will be required to sell such a security before recovery, an other-than-temporary impairment (“OTTI”) charge is recorded through current period earnings for the full decline in fair value below amortized cost. For debt securities that the Company does not intend to sell or it is more likely than not that it will not be required to sell before recovery, an OTTI charge is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. The remaining difference between the security’s fair value and amortized cost (that is, the decline in fair value not attributable to credit losses) is recognized in other comprehensive income (loss), in the consolidated statements of comprehensive income and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis.
Federal Home Loan Bank stock
FEDERAL HOME LOAN BANK STOCK
The Company is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company’s intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company’s holdings in the FHLB stock were recoverable at par value as of September 30, 2020 and December 31, 2019. Cash and stock dividends are reported as interest income on investments in the consolidated statements of income.
Loans and leases
LOANS AND LEASES
Loans and leases held-for-investment are stated at unpaid principal balances, net of deferred loan fees and costs. Loans held-for-sale are stated at the lower of cost or fair value. Interest income on loans is accrued at the contractual rate on the principal amount outstanding. Deferred loan fees and costs are amortized to interest income over the estimated life of the loan, taking into consideration scheduled payments and prepayments.

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

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

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

In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan and lease portfolio as of September 30, 2020 and December 31, 2019. Management’s judgment takes into consideration general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available to it in making such determinations, and that the present allowance for loan and lease losses is adequate, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance. In addition, as an integral part of their periodic examination, certain regulatory agencies review the adequacy of the Bank’s allowance for loan and lease losses and may direct the Bank to make additions to the allowance based on their judgments about information available to them at the time of their examination.

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

In management’s opinion, a loan or lease is impaired, based upon current information and events, when it is probable that the loan or lease will not be repaid according to its original contractual terms, including both principal and interest, or if a loan is designated as a TDR. Management performs individual assessments of impaired loans and leases to determine the existence of loss exposure based upon a discounted cash flows method or where a loan is collateral dependent, based upon the fair value of the collateral less estimated selling costs. During the nine months ended September 30, 2020, certain loan modifications were done in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. Accordingly, these loans and leases were not categorized as TDRs.

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

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

The Company also maintains a reserve for losses on unfunded commitments. This reserve is reflected as a component of other liabilities and, in management’s judgment, is sufficient to cover probable losses inherent in the loan commitments. Management tracks the level and trends in unused commitments and takes into consideration the same factors as those considered for purposes of the allowance for loan and lease losses on outstanding loans.
Investment management fees
INVESTMENT MANAGEMENT FEES
The Company recognizes investment management fee revenue when advisory services are performed. Fees are based on assets under management and are calculated pursuant to individual client contracts. Investment management fees are generally received on a quarterly basis. Certain incremental costs incurred to acquire some of our investment management contracts are deferred and amortized to non-interest expense over the estimated life of the contract.
Investment management fees receivable represent amounts due for contractual investment management services provided to the Company’s clients, primarily institutional investors, mutual funds and individual investors. Management performs credit evaluations of its customers’ financial condition when it is deemed to be necessary and does not require collateral. The Company provides an allowance for uncollectible accounts based on specifically identified receivables. Bad debt expense is recorded to other non-interest expense on the consolidated statements of income and the allowance for uncollectible accounts is recorded to investment management fees receivable, net on the consolidated statements of financial position. Investment management fees receivable are considered delinquent when payment is not received within contractual terms and are charged off against the allowance for uncollectible accounts when management determines that recovery is unlikely and the Company ceases its collection efforts.
Goodwill and other intangible assets
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing a goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then a goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if the fair value has fallen below carrying value.

Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company assesses whether the carrying value of these assets exceeds its fair value. If the carrying value exceeds the fair value of the asset, an impairment loss is recorded in an amount equal to any such excess and the assets are reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as its trade names, client lists and non-compete agreements are amortized over their estimated useful lives. These finite-lived intangible assets are
amortized on a straight-line basis over their estimated useful lives, which range from four to 25 years. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount may not be recoverable.
Office properties and equipment
OFFICE PROPERTIES AND EQUIPMENT
Office properties and equipment are stated at cost less accumulated depreciation. Office properties include furniture, fixtures and leasehold improvements. Equipment includes computer equipment and internal use software. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to 10 years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life are capitalized and depreciated to non-interest expense over the estimated remaining life of the asset.
Operating leases
OPERATING LEASES
The Company is a lessee in noncancellable operating leases, primarily for its office spaces and other office equipment. The Company accounts for leases in accordance with ASC Topic 842, “Leases,” and records operating leases as a right-of-use asset and an offsetting lease liability in the consolidated statements of financial condition at the present value of the unpaid lease payments. The Company generally uses its incremental borrowing rate as the discount rate for operating leases. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the right-of-use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Bank owned life insurance
BANK OWNED LIFE INSURANCE
Bank owned life insurance (“BOLI”) policies on certain officers and employees are recorded at net cash surrender value on the consolidated statements of financial condition. Upon termination of a BOLI policy, the Company receives the cash surrender value. BOLI benefits are payable to the Company upon the death of the insured. Changes in net cash surrender value are recognized as non-interest income in the consolidated statements of income.
Deposits
DEPOSITS
Deposits are stated at principal outstanding. Interest on deposits is accrued and charged to interest expense daily and is paid or credited in accordance with the terms of the respective accounts.
Borrowings
BORROWINGS
The Company records FHLB advances, line of credit borrowings and subordinated notes payable at their principal amount net of debt issuance costs. Interest expense is recognized based on the coupon rate of the obligations. Costs associated with the acquisition of subordinated notes payable are amortized to interest expense over the expected term of the borrowing.
Income taxes
INCOME TAXES
The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities with regard to a change in tax rates is recognized in income in the period that includes the enactment date. Management assesses all available evidence to determine the amount of deferred tax assets that are more likely than not to be realized. The available evidence used in connection with the assessments includes taxable income in prior periods, projected taxable income, potential tax planning strategies and projected reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change. Changes to the evidence used in the assessments could have a material adverse effect on the Company’s results of operations in the period in which they occur. The Company considers uncertain tax positions that it has taken or expects to take on a tax return. Any interest and penalties related to unrecognized tax benefits would be recognized in income tax expense in the consolidated statements of income.
Earnings per common share
EARNINGS PER COMMON SHARE
Earnings per common share (“EPS”) is computed using the two-class method, where net income is reduced by dividends declared on our preferred stock to derive net income available to common shareholders. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and the vesting of restricted stock awards granted utilizing the treasury stock method.
Stock-based compensation
STOCK-BASED COMPENSATION
The Company accounts for its stock-based compensation awards based on estimated fair values of stock-based awards made to employees and directors. Compensation cost for all stock-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in compensation and employee benefits expense in the consolidated statements of income and recorded as a component of additional paid-in capital. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.
Derivatives and hedging activities
DERIVATIVES AND HEDGING ACTIVITIES
All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities. All derivatives are recognized as either assets or liabilities on the consolidated statements of financial condition and measured at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in accumulated other comprehensive income (loss). When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income (loss) is recognized in the consolidated statements of income. The Company also has interest rate derivative positions that are not designated as hedging instruments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company is required to have minimum collateral posting thresholds with certain of its derivative counterparties which is considered restricted cash.

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

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

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

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

Income tax effects in accumulated other comprehensive income (loss) are released as investments are sold or matured and as liabilities are extinguished.
Treasury stock
TREASURY STOCK
The repurchase of the Company’s common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings.
Reclassification
RECLASSIFICATION
Certain items previously reported have been reclassified to conform with the current year’s reporting presentation and are considered immaterial.

During the nine months ended September 30, 2020, the Company made changes to certain Non-Interest Expense line items appearing on the Unaudited Condensed Consolidated Statement of Income to better align with and provide additional clarity on how management views the business. All prior periods have been adjusted to conform the changes and provide comparability to the new presentation.

Marketing and Advertising, which was previously a component of Other Operating Expenses, is now presented separately.

Technology and Data Services is also presented separately and includes data processing expense, data and information services and certain software costs. These costs were previously included in Premises and Equipment.

Telephone expense, which was previously reported as Other Operating Expense, is now presented in Premises and Equipment Expense. Finally Premises and Occupancy Costs was renamed to Premise and Equipment Expense.
v3.20.2
Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Schedule of investment securities available-for-sale
Debt securities available-for-sale and held-to-maturity were comprised of the following:
September 30, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$175,369 $1,375 $607 $176,137 
Trust preferred securities18,192 — 466 17,726 
Agency collateralized mortgage obligations22,929 34 9 22,954 
Agency mortgage-backed securities325,374 2,117 667 326,824 
Agency debentures8,436 821 — 9,257 
Total debt securities available-for-sale550,300 4,347 1,749 552,898 
Debt securities held-to-maturity:
Corporate bonds23,674 455 32 24,097 
Agency debentures79,143 1,049 18 80,174 
Municipal bonds7,741 84 — 7,825 
Residential mortgage-backed securities139,161 160 293 139,028 
Agency mortgage-backed securities4,322 830 — 5,152 
Total debt securities held-to-maturity254,041 2,578 343 256,276 
Total debt securities$804,341 $6,925 $2,092 $809,174 
December 31, 2019
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$172,704 $2,821 $107 $175,418 
Trust preferred securities18,092 216 48 18,260 
Agency collateralized mortgage obligations27,262 11 80 27,193 
Agency mortgage-backed securities18,058 451 — 18,509 
Agency debentures8,961 441 — 9,402 
Total debt securities available-for-sale245,077 3,940 235 248,782 
Debt securities held-to-maturity:
Corporate bonds24,678 619 — 25,297 
Agency debentures149,912 628 935 149,605 
Municipal bonds17,094 144 — 17,238 
Agency mortgage-backed securities4,360 255 — 4,615 
Total debt securities held-to-maturity196,044 1,646 935 196,755 
Total debt securities$441,121 $5,586 $1,170 $445,537 
Schedule of investment securities held-to-maturity
Debt securities available-for-sale and held-to-maturity were comprised of the following:
September 30, 2020
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$175,369 $1,375 $607 $176,137 
Trust preferred securities18,192 — 466 17,726 
Agency collateralized mortgage obligations22,929 34 9 22,954 
Agency mortgage-backed securities325,374 2,117 667 326,824 
Agency debentures8,436 821 — 9,257 
Total debt securities available-for-sale550,300 4,347 1,749 552,898 
Debt securities held-to-maturity:
Corporate bonds23,674 455 32 24,097 
Agency debentures79,143 1,049 18 80,174 
Municipal bonds7,741 84 — 7,825 
Residential mortgage-backed securities139,161 160 293 139,028 
Agency mortgage-backed securities4,322 830 — 5,152 
Total debt securities held-to-maturity254,041 2,578 343 256,276 
Total debt securities$804,341 $6,925 $2,092 $809,174 
December 31, 2019
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$172,704 $2,821 $107 $175,418 
Trust preferred securities18,092 216 48 18,260 
Agency collateralized mortgage obligations27,262 11 80 27,193 
Agency mortgage-backed securities18,058 451 — 18,509 
Agency debentures8,961 441 — 9,402 
Total debt securities available-for-sale245,077 3,940 235 248,782 
Debt securities held-to-maturity:
Corporate bonds24,678 619 — 25,297 
Agency debentures149,912 628 935 149,605 
Municipal bonds17,094 144 — 17,238 
Agency mortgage-backed securities4,360 255 — 4,615 
Total debt securities held-to-maturity196,044 1,646 935 196,755 
Total debt securities$441,121 $5,586 $1,170 $445,537 
Interest income on investment securities
Interest income on investment securities was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2020201920202019
Taxable interest income$3,436 $3,521 $10,437 $11,034 
Non-taxable interest income55 90 192 295 
Dividend income196 382 899 1,168 
Total interest income on investment securities$3,687 $3,993 $11,528 $12,497 
Schedule of contractual maturities of debt securities
As of September 30, 2020, the contractual maturities of the debt securities were:
September 30, 2020
Available-for-SaleHeld-to-Maturity
(Dollars in thousands)Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Due in less than one year$31,732 $31,915 $2,142 $2,164 
Due from one to five years71,226 72,002 14,114 14,433 
Due from five to ten years100,560 100,069 86,052 86,322 
Due after ten years346,782 348,912 151,733 153,357 
Total debt securities$550,300 $552,898 $254,041 $256,276 
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)20202019202020192020201920202019
Proceeds from sales$64,363 $— $— $— $120,400 $4,993 $— $— 
Proceeds from calls— 9,435 118,745 63,529 3,580 13,517 366,503 180,824 
Total proceeds$64,363 $9,435 $118,745 $63,529 $123,980 $18,510 $366,503 $180,824 
Gross realized gains$3,740 $134 $4 $72 $3,762 $260 $53 $86 
Gross realized losses— — — — — — — — 
Net realized gains$3,740 $134 $4 $72 $3,762 $260 $53 $86 
Schedule of fair value and gross unrealized losses on investment debt securities
The following tables show the fair value and gross unrealized losses on temporarily impaired debt securities available-for-sale and held-to-maturity, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2020 and December 31, 2019, respectively:
September 30, 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$29,771 $172 $19,565 $435 $49,336 $607 
Trust preferred securities17,726 466 — — 17,726 466 
Agency collateralized mortgage obligations— — 10,279 9 10,279 9 
Agency mortgage-backed securities155,074 667 — — 155,074 667 
Total debt securities available-for-sale202,571 1,305 29,844 444 232,415 1,749 
Debt securities held-to-maturity:
Corporate bonds5,968 32 — — 5,968 32 
Agency debentures20,032 18 — — 20,032 18 
Residential mortgage-backed securities75,405 293 — — 75,405 293 
Agency mortgage-backed securities— — — — — — 
Total debt securities held-to-maturity101,405 343 — — 101,405 343 
Total temporarily impaired debt securities (1)
$303,976 $1,648 $29,844 $444 $333,820 $2,092 
(1)The number of investment positions with unrealized losses totaled 29 for available-for-sale securities and 10 for held-to-maturity securities.
December 31, 2019
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
Corporate bonds$4,942 $58 $19,951 $49 $24,893 $107 
Trust preferred securities— — 4,417 48 4,417 48 
Agency collateralized mortgage obligations22,117 66 2,544 14 24,661 80 
Total debt securities available-for-sale27,059 124 26,912 111 53,971 235 
Debt securities held-to-maturity:
Agency debentures87,879 935 — — 87,879 935 
Total debt securities held-to-maturity87,879 935 — — 87,879 935 
Total temporarily impaired debt securities (1)
$114,938 $1,059 $26,912 $111 $141,850 $1,170 
(1)The number of investment positions with unrealized losses totaled 86 for available-for-sale securities and 53 for held-to-maturity securities.
v3.20.2
Loans and Leases (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of loans receivable
Loans and leases held-for-investment were comprised of the following:
September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$4,449,714 $1,133,478 $2,062,290 $7,645,482 
Deferred loan costs (fees)9,053 4,810 (4,899)8,964 
Loans and leases held-for-investment, net of deferred fees and costs4,458,767 1,138,288 2,057,391 7,654,446 
Allowance for loan and lease losses(2,210)(7,772)(20,724)(30,706)
Loans and leases held-for-investment, net$4,456,557 $1,130,516 $2,036,667 $7,623,740 
December 31, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$3,688,779 $1,080,767 $1,801,375 $6,570,921 
Deferred loan costs (fees)6,623 4,942 (4,927)6,638 
Loans and leases held-for-investment, net of deferred fees and costs3,695,402 1,085,709 1,796,448 6,577,559 
Allowance for loan and lease losses(1,973)(5,262)(6,873)(14,108)
Loans and leases held-for-investment, net$3,693,429 $1,080,447 $1,789,575 $6,563,451 
v3.20.2
Allowance for Loan and Lease Losses (Tables)
 9 Months Ended
Sep. 30, 2020
Allowance for Loan and Lease Losses [Abstract]  
Schedule of investment in loans by credit quality indicator
The following tables present the recorded investment in loans by credit quality indicator:
September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Pass$4,458,228 $1,121,372 $2,036,007 $7,615,607 
Special mention— 16,458 4,639 21,097 
Substandard539 458 16,745 17,742 
Loans and leases held-for-investment$4,458,767 $1,138,288 $2,057,391 $7,654,446 
December 31, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Pass$3,691,866 $1,069,932 $1,780,768 $6,542,566 
Special mention— 15,777 14,284 30,061 
Substandard3,536 — 1,396 4,932 
Loans and leases held-for-investment$3,695,402 $1,085,709 $1,796,448 $6,577,559 
Schedule of change in allowance for loan losses
Changes in the allowance for loan and lease losses were as follows for the three months ended September 30, 2020 and 2019:
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 loan and lease losses59 226 7,145 7,430 
Charge-offs— — — — 
Recoveries— — — — 
Balance, end of period$2,210 $7,772 $20,724 $30,706 
Three Months Ended September 30, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,140 $5,911 $5,965 $14,016 
Provision (credit) for loan and lease losses(177)(672)242 (607)
Charge-offs(112)— — (112)
Recoveries— 77 — 77 
Balance, end of period$1,851 $5,316 $6,207 $13,374 

Changes in the allowance for loan and lease losses were as follows for the nine months ended September 30, 2020 and 2019:
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 loan and lease 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 
Nine Months Ended September 30, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$1,942 $5,764 $5,502 $13,208 
Provision (credit) for loan and lease losses21 (2,422)705 (1,696)
Charge-offs(112)— — (112)
Recoveries— 1,974 — 1,974 
Balance, end of period$1,851 $5,316 $6,207 $13,374 
Schedule of past due loans segregated by class of loan
The following tables present the age analysis of past due loans and leases segregated by class:
September 30, 2020
(Dollars in thousands)30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More Past Due Total Past DueCurrentTotal
Private banking$— $— $— $— $4,458,767 $4,458,767 
Commercial and industrial— — 458 458 1,137,830 1,138,288 
Commercial real estate— — 6,296 6,296 2,051,095 2,057,391 
Loans and leases held-for-investment$— $— $6,754 $6,754 $7,647,692 $7,654,446 
December 31, 2019
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due90 Days or More Past Due Total Past DueCurrentTotal
Private banking$261 $— $184 $445 $3,694,957 $3,695,402 
Commercial and industrial— — — — 1,085,709 1,085,709 
Commercial real estate— — — — 1,796,448 1,796,448 
Loans and leases held-for-investment$261 $— $184 $445 $6,577,114 $6,577,559 
Schedule of investment in loans considered to be impaired
The following tables present the Company’s investment in loans considered to be impaired and related information on those impaired loans:
As of and for the Nine Months Ended September 30, 2020
(Dollars in thousands)Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial458 457 103 458 — 
Commercial real estate6,296 6,317 1,417 6,300 — 
Total with a related allowance recorded6,754 6,774 1,520 6,758 — 
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 estate6,296 6,317 1,417 6,300 — 
Total$6,754 $6,774 $1,520 $6,758 $— 
As of and for the Twelve Months Ended December 31, 2019
(Dollars in thousands)Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$171 $193 $171 $171 $— 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total with a related allowance recorded171 193 171 171 — 
Without a related allowance recorded:
Private banking13 13 — 13 — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded13 13 — 13 — 
Total:
Private banking184 206 171 184 — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total$184 $206 $171 $184 $— 
Schedule of allowance for credit losses and investment in loans by class
The following tables present the allowance for loan and lease losses and recorded investment in loans by class:
September 30, 2020
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment$— $103 $1,417 $1,520 
Collectively evaluated for impairment2,210 7,669 19,307 29,186 
Total allowance for loan and lease losses$2,210 $7,772 $20,724 $30,706 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $458 $6,296 $6,754 
Collectively evaluated for impairment4,458,767 1,137,830 2,051,095 7,647,692 
Loans and leases held-for-investment$4,458,767 $1,138,288 $2,057,391 $7,654,446 
December 31, 2019
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment$171 $— $— $171 
Collectively evaluated for impairment1,802 5,262 6,873 13,937 
Total allowance for loan and lease losses$1,973 $5,262 $6,873 $14,108 
Loans and leases held-for-investment:
Individually evaluated for impairment$184 $— $— $184 
Collectively evaluated for impairment3,695,218 1,085,709 1,796,448 6,577,375 
Loans and leases held-for-investment$3,695,402 $1,085,709 $1,796,448 $6,577,559 
v3.20.2
Deposits (Tables)
 9 Months Ended
Sep. 30, 2020
Deposits [Abstract]  
Schedule of deposits
As of September 30, 2020 and December 31, 2019, deposits were comprised of the following:
Interest Rate
Range		Weighted Average
Interest Rate		Balance
(Dollars in thousands)September 30,
2020		September 30,
2020		December 31,
2019		September 30,
2020		December 31,
2019
Demand and savings accounts:
Noninterest-bearing checking accounts———$439,878 $356,102 
Interest-bearing checking accounts0.05 to 1.70%0.44%1.57%3,024,007 1,398,264 
Money market deposit accounts0.10 to 3.25%0.73%1.84%3,662,860 3,426,745 
Total demand and savings accounts7,126,745 5,181,111 
Certificates of deposit0.06 to 3.22%1.10%2.24%1,056,968 1,453,502 
Total deposits$8,183,713 $6,634,613 
Weighted average rate on interest-bearing accounts0.67%1.87%
Schedule of maturities of time deposits
The contractual maturity of certificates of deposit was as follows:
(Dollars in thousands)September 30,
2020		December 31,
2019
12 months or less$946,117 $1,244,838 
12 months to 24 months101,019 168,437 
24 months to 36 months9,832 40,227 
Total$1,056,968 $1,453,502 
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)2020201920202019
Interest-bearing checking accounts$3,280 $5,795 $11,213 $15,303 
Money market deposit accounts6,944 18,870 28,975 53,608 
Certificates of deposit3,674 9,449 16,907 26,691 
Total interest expense on deposits$13,898 $34,114 $57,095 $95,602 
v3.20.2
Borrowings (Tables)
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Schedule of borrowings
As of September 30, 2020 and December 31, 2019, borrowings were comprised of the following:
September 30, 2020December 31, 2019
(Dollars in thousands)Interest RateEnding BalanceMaturity DateInterest RateEnding BalanceMaturity Date
FHLB borrowings:
FHLB line of credit—%$— 1.81%$55,000 5/1/2020
Issued 7/8/20200.46%50,000 10/8/2020—%— 
Issued 9/1/20200.40%150,000 12/1/2020—%— 
Issued 9/2/20200.40%50,000 12/2/2020—%— 
Issued 9/21/20200.39%50,000 12/21/2020—%— 
Issued 12/12/2019—%— 1.85%100,000 1/13/2020
Issued 12/2/2019—%— 1.91%150,000 3/2/2020
Issued 10/8/2019—%— 2.00%50,000 1/8/2020
Subordinated notes payable (net of debt issuance costs of $1,948 and $0, respectively)5.75%95,439 5/15/2030—%— 
Total borrowings, net$395,439 $355,000 
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)2020201920202019
FHLB borrowings$1,392 $1,302 $4,711 $6,222 
Line of credit borrowings— — 261 68 
Subordinated notes payable1,458 — 2,138 1,090 
Total interest expense on borrowings$2,850 $1,302 $7,110 $7,380 
v3.20.2
Stock Transactions (Tables)
 9 Months Ended
Sep. 30, 2020
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]  
Schedule of preferred and common shares, activity
The tables below show the changes in the Company’s preferred and common shares outstanding during the periods indicated:
Number of
Preferred Shares Outstanding		Number of
Common Shares
Outstanding		Number of
Treasury Shares
Balance, December 31, 201840,250 28,878,674 2,014,910 
Issuance of preferred stock80,500 — — 
Issuance of restricted common stock— 550,453 — 
Forfeitures of restricted common stock— (74,355)— 
Exercise of stock options— 40,580 — 
Purchase of treasury stock through open market transactions— (90,000)90,000 
Increase in treasury stock related to equity awards— (8,382)8,382 
Balance, September 30, 2019120,750 29,296,970 2,113,292 
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 through open market transactions— (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 
v3.20.2
Regulatory Capital (Tables)
 9 Months Ended
Sep. 30, 2020
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Schedule of compliance with regulatory capital requirements under banking regulations
The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of September 30, 2020 and December 31, 2019:
September 30, 2020
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$716,731 12.85 %$446,355 8.00 % N/AN/A
Bank$692,957 12.46 %$444,791 8.00 %$555,989 10.00 %
Tier 1 risk-based capital ratio
Company$589,176 10.56 %$334,766 6.00 % N/AN/A
Bank$660,841 11.89 %$333,593 6.00 %$444,791 8.00 %
Common equity tier 1 risk-based capital ratio
Company$473,097 8.48 %$251,075 4.50 % N/AN/A
Bank$660,841 11.89 %$250,195 4.50 %$361,393 6.50 %
Tier 1 leverage ratio
Company$589,176 6.23 %$378,310 4.00 % N/AN/A
Bank$660,841 7.00 %$377,750 4.00 %$472,187 5.00 %
December 31, 2019
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$572,221 12.05 %$379,911 8.00 % N/AN/A
Bank$547,532 11.57 %$378,623 8.00 %$473,279 10.00 %
Tier 1 risk-based capital ratio
Company$558,068 11.75 %$284,933 6.00 % N/AN/A
Bank$532,779 11.26 %$283,967 6.00 %$378,623 8.00 %
Common equity tier 1 risk-based capital ratio
Company$442,385 9.32 %$213,700 4.50 % N/AN/A
Bank$532,779 11.26 %$212,975 4.50 %$307,631 6.50 %
Tier 1 leverage ratio
Company$558,068 7.54 %$296,038 4.00 % N/AN/A
Bank$532,779 7.22 %$295,277 4.00 %$369,097 5.00 %
v3.20.2
Earnings Per Common Share (Tables)
 9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Schedule of earnings per share, basic and diluted
The computation of basic and diluted earnings per common share for the periods presented was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands, except per share data)2020201920202019
Net income available to common shareholders$7,367 $14,372 $26,738 $41,798 
Weighted average common shares outstanding:
Basic28,286,250 27,863,767 28,230,180 27,861,515 
Restricted stock - dilutive303,138 600,985 313,726 569,260 
Stock options - dilutive85,055 313,919 135,377 328,633 
Diluted28,674,443 28,778,671 28,679,283 28,759,408 
Earnings per common share:
Basic$0.26 $0.52 $0.95 $1.50 
Diluted$0.26 $0.50 $0.93 $1.45 
Schedule of antidilutive securities excluded from computation of earnings per share
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Anti-dilutive shares (1)
791,262 9,000 566,498 13,000 
(1)Includes stock options and/or restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive.
v3.20.2
Derivatives and Hedging Activity (Tables)
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments in statement of financial position, fair value
The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated statements of financial condition as of September 30, 2020 and December 31, 2019:
Asset DerivativesLiability Derivatives
as of September 30, 2020as of September 30, 2020
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$— Other liabilities$10,239 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets166,153 Other liabilities166,241 
TotalOther assets$166,153 Other liabilities$176,480 
Asset DerivativesLiability Derivatives
as of December 31, 2019as of December 31, 2019
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$— Other liabilities$2,184 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets55,241 Other liabilities55,289 
TotalOther assets$55,241 Other liabilities$57,473 
Schedule of offsetting derivative assets
The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of September 30, 2020 and December 31, 2019:
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, 2020$166,153 $— $166,153 $— $— $166,153 
December 31, 2019$55,241 $— $55,241 $(850)$— $54,391 
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, 2020$176,480 $— $176,480 $— $(176,480)$— 
December 31, 2019$57,473 $— $57,473 $(850)$(55,753)$870 
Schedule of interest rate derivative transactions
Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of September 30, 2020, were as follows:
(Dollars in thousands)Notional
Amount
Effective
Rate (1)
Estimated Increase/
(Decrease) to Interest
Expense in the Next
Twelve Months		Maturity
Date		Remaining Term
(in Months)
Interest rate products:
Issued 1/8/2018$50,000 2.21%$271 1/8/20213
Issued 5/30/201950,000 2.05%926 6/1/202220
Issued 5/30/201950,000 2.03%919 6/1/202332
Issued 5/30/201950,000 2.04%925 6/1/202444
Issued 3/2/202050,000 0.98%387 3/2/202553
Issued 3/20/202050,000 0.60%196 3/20/202554
Total$300,000 $3,624 
(1)The effective rate is adjusted for the difference between the three-month FHLB advance rate and three-month LIBOR.
Schedule of derivative instruments, gain (loss) in statement of financial performance
The tables below present the effective portion of the Company’s cash flow hedge instruments in the unaudited condensed consolidated statements of income and accumulated other comprehensive income (loss):
Three Months Ended September 30,Three Months Ended September 30,
(Dollars in thousands)2020201920202019
Derivatives designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesRealized Gain (Loss) Recognized in Income on DerivativesUnrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate productsInterest expense$(1,028)$156 $32 $(967)

Nine Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2020201920202019
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$(1,647)$1,277 $(9,258)$(3,293)
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)2020201920202019
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$14 $(17)$(51)$(59)
Equity productsNon-interest income— (32)— (109)
Total$14 $(49)$(51)$(168)
v3.20.2
Disclosures About Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of fair value, assets and liabilities measured on recurring basis
The following tables represent assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019:
September 30, 2020
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $176,137 $— $176,137 
Trust preferred securities— 17,726 — 17,726 
Agency collateralized mortgage obligations— 22,954 — 22,954 
Agency mortgage-backed securities— 326,824 — 326,824 
Agency debentures— 9,257 — 9,257 
Interest rate swaps— 166,153 — 166,153 
Total financial assets— 719,051 — 719,051 
Financial liabilities:
Interest rate swaps— 176,480 — 176,480 
Total financial liabilities$— $176,480 $— $176,480 
December 31, 2019
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $175,418 $— $175,418 
Trust preferred securities— 18,260 — 18,260 
Agency collateralized mortgage obligations— 27,193 — 27,193 
Agency mortgage-backed securities— 18,509 — 18,509 
Agency debentures— 9,402 — 9,402 
Interest rate swaps— 55,241 — 55,241 
Total financial assets— 304,023 — 304,023 
Financial liabilities:
Interest rate swaps— 57,473 — 57,473 
Total financial liabilities$— $57,473 $— $57,473 
Schedule of fair value measurements, nonrecurring
The following tables represent the balances of assets measured at fair value on a non-recurring basis as of September 30, 2020 and December 31, 2019:
September 30, 2020
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $5,234 $5,234 
Other real estate owned— — 2,724 2,724 
Total assets$— $— $7,958 $7,958 
December 31, 2019
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $13 $13 
Other real estate owned— — 4,250 4,250 
Total assets$— $— $4,263 $4,263 
Schedule of fair value inputs, assets, quantitative information
The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of September 30, 2020 and December 31, 2019:
September 30, 2020
(Dollars in thousands)Fair Value
Valuation Techniques (1)
Significant Unobservable InputsWeighted Average Discount Rate
Loans measured for impairment, net$5,234 CollateralAppraisal value and discount due to salability conditions34%
Other real estate owned$2,724 CollateralAppraisal value and discount due to salability conditions20%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.
December 31, 2019
(Dollars in thousands)Fair Value
Valuation Techniques (1)
Significant Unobservable InputsWeighted Average Multiple/
Discount Rate
Loans measured for impairment, net$13 CollateralAppraisal value and discount due to salability conditions—%
Other real estate owned$4,250 CollateralAppraisal value and discount due to salability conditions17%
(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.
Schedule of fair and carrying value of financial assets and liabilities
The following table summarizes of the carrying amounts and estimated fair values of financial instruments:
September 30, 2020December 31, 2019
(Dollars in thousands)Fair Value
Level		Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Financial assets:
Cash and cash equivalents1$608,302 $608,302 $403,855 $403,855 
Debt securities available-for-sale2552,898 552,898 248,782 248,782 
Debt securities held-to-maturity2254,041 256,276 196,044 196,755 
Federal Home Loan Bank stock213,284 13,284 24,324 24,324 
Loans and leases held-for-investment, net37,623,740 7,643,405 6,563,451 6,548,432 
Accrued interest receivable218,282 18,282 22,326 22,326 
Investment management fees receivable, net27,627 7,627 7,560 7,560 
Bank owned life insurance271,342 71,342 70,044 70,044 
Other real estate owned32,724 2,724 4,250 4,250 
Interest rate swaps2166,153 166,153 55,241 55,241 
Financial liabilities:
Deposits2$8,183,713 $8,208,159 $6,634,613 $6,648,546 
Borrowings, net2395,439 397,624 355,000 355,003 
Interest rate swaps2176,480 176,480 57,473 57,473 
v3.20.2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Schedule of changes in accumulated other comprehensive income (loss)
The following tables show the changes in accumulated other comprehensive income (loss) net of tax, for the periods presented:
Three Months Ended September 30,
20202019
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$1,692 $(8,222)$(6,530)$1,230 $(1,590)$(360)
Change in unrealized holding gains (losses)3,088 27 3,115 787 (736)51 
Losses (gains) reclassified from other comprehensive income(2,835)780 (2,055)(101)(120)(221)
Net other comprehensive income (loss)253 807 1,060 686 (856)(170)
Balance, end of period$1,945 $(7,415)$(5,470)$1,916 $(2,446)$(530)
Nine Months Ended September 30,
20202019
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$2,756 $(1,624)$1,132 $(2,363)$1,032 $(1,331)
Change in unrealized holding gains (losses)2,041 (7,040)(4,999)4,477 (2,506)1,971 
Losses (gains) reclassified from other comprehensive income(2,852)1,249 (1,603)(198)(972)(1,170)
Net other comprehensive income (loss)(811)(5,791)(6,602)4,279 (3,478)801 
Balance, end of period$1,945 $(7,415)$(5,470)$1,916 $(2,446)$(530)
v3.20.2
Segments (Tables)
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Schedule of segment reporting information, by segment
The following tables provide financial information for the two segments of the Company as of and for the periods indicated. The information provided under the caption “Parent and Other” represents general operating activity of the Company not considered to be a reportable segment, which includes parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts.
(Dollars in thousands)September 30,
2020		December 31,
2019
Assets:
Bank$9,414,706 $7,686,981 
Investment management81,582 83,295 
Parent and other(2,498)(4,466)
Total assets$9,493,790 $7,765,810 
Three Months Ended September 30, 2020Three Months Ended September 30, 2019
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$50,222 $— $— $50,222 $67,720 $— $12 $67,732 
Interest expense15,297 — 1,451 16,748 35,455 — (39)35,416 
Net interest income (loss)34,925 — (1,451)33,474 32,265 — 51 32,316 
Provision (credit) for loan and lease losses7,430 — — 7,430 (607)— — (607)
Net interest income (loss) after provision for loan and lease losses27,495 — (1,451)26,044 32,872 — 51 32,923 
Non-interest income:
Investment management fees— 8,293 (198)8,095 — 9,016 (114)8,902 
Net gain on the sale and call of debt securities3,744 — — 3,744 206 — — 206 
Other non-interest income5,027 23 — 5,050 5,113 (9)31 5,135 
Total non-interest income (loss)8,771 8,316 (198)16,889 5,319 9,007 (83)14,243 
Non-interest expense:
Intangible amortization expense— 478 — 478 — 502 — 502 
Other non-interest expense23,462 6,868 619 30,949 18,949 8,186 136 27,271 
Total non-interest expense23,462 7,346 619 31,427 18,949 8,688 136 27,773 
Income (loss) before tax12,804 970 (2,268)11,506 19,242 319 (168)19,393 
Income tax expense (benefit)2,357 251 (431)2,177 3,142 3 (86)3,059 
Net income (loss)$10,447 $719 $(1,837)$9,329 $16,100 $316 $(82)$16,334 
Nine Months Ended September 30, 2020Nine Months Ended September 30, 2019
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$166,085 $— $— $166,085 $196,862 $— $111 $196,973 
Interest expense61,844 — 2,361 64,205 101,891 — 1,091 102,982 
Net interest income (loss)104,241 — (2,361)101,880 94,971 — (980)93,991 
Provision (credit) for loan and lease losses16,428 — — 16,428 (1,696)— — (1,696)
Net interest income (loss) after provision for loan and lease losses87,813 — (2,361)85,452 96,667 — (980)95,687 
Non-interest income:
Investment management fees— 23,955 (484)23,471 — 27,912 (332)27,580 
Net gain on the sale and call of debt securities3,815 — — 3,815 346 — — 346 
Other non-interest income15,893 23 — 15,916 10,467 17 881 11,365 
Total non-interest income (loss)19,708 23,978 (484)43,202 10,813 27,929 549 39,291 
Non-interest expense:
Intangible amortization expense— 1,466 — 1,466 — 1,506 — 1,506 
Other non-interest expense64,462 20,498 2,242 87,202 56,872 23,174 478 80,524 
Total non-interest expense64,462 21,964 2,242 88,668 56,872 24,680 478 82,030 
Income (loss) before tax43,059 2,014 (5,087)39,986 50,608 3,249 (909)52,948 
Income tax expense (benefit)7,878 381 (897)7,362 6,825 830 (296)7,359 
Net income (loss)$35,181 $1,633 $(4,190)$32,624 $43,783 $2,419 $(613)$45,589 
v3.20.2
Basis of Information and Summary of Significant Accounting Policies - Narrative (Details)
 9 Months Ended
Sep. 30, 2020
USD ($)
subsidiary
portfolio
offices
Sep. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Significant Accounting Policies [Line Items]      
Number of wholly owned subsidiaries | subsidiary 3    
Number of loan portfolios | portfolio 3    
Bad debt expense | $ $ 0 $ 0  
Allowance for uncollectible accounts | $ $ 0   $ 0
Minimum      
Significant Accounting Policies [Line Items]      
Past due period for loans (in days) 90 days    
Consecutive period loan is current (in months) 6 months    
Estimated useful lives of intangible assets (in years) 4 years    
Estimated useful lives of office properties and equipment (in years) 3 years    
Maximum      
Significant Accounting Policies [Line Items]      
Original maturity of short-term investments (in days) 90 days    
Estimated useful lives of intangible assets (in years) 25 years    
Estimated useful lives of office properties and equipment (in years) 10 years    
Bank      
Significant Accounting Policies [Line Items]      
Number of wholly owned subsidiaries | subsidiary 2    
Number of representative offices, additional to main office | offices 4    
v3.20.2
Investment Securities - Investment Types (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Debt securities available-for-sale:    
Amortized Cost $ 550,300 $ 245,077
Gross Unrealized Appreciation 4,347 3,940
Gross Unrealized Depreciation 1,749 235
Debt securities available-for-sale 552,898 248,782
Debt securities held-to-maturity:    
Amortized Cost 254,041 196,044
Gross Unrealized Appreciation 2,578 1,646
Gross Unrealized Depreciation 343 935
Estimated Fair Value 256,276 196,755
Amortized Cost 804,341 441,121
Gross Unrealized Appreciation 6,925 5,586
Gross Unrealized Depreciation 2,092 1,170
Estimated Fair Value 809,174 445,537
Corporate bonds    
Debt securities available-for-sale:    
Amortized Cost 175,369 172,704
Gross Unrealized Appreciation 1,375 2,821
Gross Unrealized Depreciation 607 107
Debt securities available-for-sale 176,137 175,418
Debt securities held-to-maturity:    
Amortized Cost 23,674 24,678
Gross Unrealized Appreciation 455 619
Gross Unrealized Depreciation 32 0
Estimated Fair Value 24,097 25,297
Trust preferred securities    
Debt securities available-for-sale:    
Amortized Cost 18,192 18,092
Gross Unrealized Appreciation 0 216
Gross Unrealized Depreciation 466 48
Debt securities available-for-sale 17,726 18,260
Agency collateralized mortgage obligations    
Debt securities available-for-sale:    
Amortized Cost 22,929 27,262
Gross Unrealized Appreciation 34 11
Gross Unrealized Depreciation 9 80
Debt securities available-for-sale 22,954 27,193
Residential mortgage-backed securities    
Debt securities held-to-maturity:    
Amortized Cost 139,161  
Gross Unrealized Appreciation 160  
Gross Unrealized Depreciation 293  
Estimated Fair Value 139,028  
Agency mortgage-backed securities    
Debt securities available-for-sale:    
Amortized Cost 325,374 18,058
Gross Unrealized Appreciation 2,117 451
Gross Unrealized Depreciation 667 0
Debt securities available-for-sale 326,824 18,509
Debt securities held-to-maturity:    
Amortized Cost 4,322 4,360
Gross Unrealized Appreciation 830 255
Gross Unrealized Depreciation 0 0
Estimated Fair Value 5,152 4,615
Agency debentures    
Debt securities available-for-sale:    
Amortized Cost 8,436 8,961
Gross Unrealized Appreciation 821 441
Gross Unrealized Depreciation 0 0
Debt securities available-for-sale 9,257 9,402
Debt securities held-to-maturity:    
Amortized Cost 79,143 149,912
Gross Unrealized Appreciation 1,049 628
Gross Unrealized Depreciation 18 935
Estimated Fair Value 80,174 149,605
Municipal bonds    
Debt securities held-to-maturity:    
Amortized Cost 7,741 17,094
Gross Unrealized Appreciation 84 144
Gross Unrealized Depreciation 0 0
Estimated Fair Value $ 7,825 $ 17,238
v3.20.2
Investment Securities - Interest Income on Investment Securities (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]        
Taxable interest income $ 3,436 $ 3,521 $ 10,437 $ 11,034
Non-taxable interest income 55 90 192 295
Dividend income 196 382 899 1,168
Total interest income on investment securities $ 3,687 $ 3,993 $ 11,528 $ 12,497
v3.20.2
Investment Securities - Contractual Maturities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Available-for-sale Securities, Debt Maturities, Amortized Cost    
Due in less than one year $ 31,732  
Due from one to five years 71,226  
Due from five to ten years 100,560  
Due after ten years 346,782  
Amortized Cost 550,300 $ 245,077
Available-for-sale Securities, Debt Maturities, Estimated Fair Value    
Due in less than one year 31,915  
Due from one to five years 72,002  
Due from five to ten years 100,069  
Due after ten years 348,912  
Estimated Fair Value 552,898 248,782
Held-to-maturity Securities, Debt Maturities, Amortized Cost    
Due in less than one year 2,142  
Due from one to five years 14,114  
Due from five to ten years 86,052  
Due after ten years 151,733  
Amortized Cost 254,041 196,044
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value    
Due in less than one year 2,164  
Due from one to five years 14,433  
Due from five to ten years 86,322  
Due after ten years 153,357  
Estimated Fair Value $ 256,276 $ 196,755
v3.20.2
Investment Securities - Narrative (Details) - USD ($)
Sep. 30, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities with a contractual maturity due after ten years $ 348,912,000  
Floating rate available-for-sale securities with a contractual maturity due after ten years $ 32,700,000  
Percent of floating rate available-for-sale securities with a contractual maturity due after ten years 9.40%  
Held-to-maturity securities, debt maturities due from five to ten years $ 86,052,000  
Held-to-maturity securities, debt maturities due from five to ten years, callable 14,300,000  
Debt securities trading 0 $ 0
Federal Home Loan Bank stock 13,284,000 $ 24,324,000
Federal Home Loan Bank    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities available to be pledged as collateral for borrowings 2,400,000  
Held-to-maturity securities pledged as collateral $ 28,800,000  
v3.20.2
Investment Securities - Gains and Losses on Sales and Calls of Investment Securities (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]        
Proceeds from sale of available-for-sale securities $ 64,363 $ 0 $ 120,400 $ 4,993
Proceeds from call of available-for-sale securities 0 9,435 3,580 13,517
Total proceeds from sale and call of available-for-sale securities 64,363 9,435 123,980 18,510
Gross realized gains on available-for-sale securities 3,740 134 3,762 260
Gross realized losses on available-for-sale securities 0 0 0 0
Net realized gains on sale and call of available-for-sale securities 3,740 134 3,762 260
Proceeds from sale of held-to-maturity securities 0 0 0 0
Proceeds from call of held-to-maturity securities 118,745 63,529 366,503 180,824
Total proceeds from sale and call of held-to-maturity securities 118,745 63,529 366,503 180,824
Gross realized gains on held-to-maturity securities 4 72 53 86
Gross realized losses on held-to-maturity securities 0 0 0 0
Net realized gains on sale and call of held-to-maturity securities $ 4 $ 72 $ 53 $ 86
v3.20.2
Investment Securities - Unrealized Losses (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
position
Dec. 31, 2019
USD ($)
position
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months $ 202,571 $ 27,059
12 Months or More 29,844 26,912
Total 232,415 53,971
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 1,305 124
12 Months or More 444 111
Total 1,749 235
Fair value, Debt securities held-to-maturity    
Less than 12 Months 101,405 87,879
12 Months or More 0 0
Total 101,405 87,879
Unrealized losses, Debt securities held-to-maturity    
Less than 12 Months 343 935
12 Months or More 0 0
Total 343 935
Less than 12 months, fair value, total impaired securities 303,976 114,938
Less than 12 months, unrealized losses, total impaired securities 1,648 1,059
12 months or more, fair value, total impaired securities 29,844 26,912
12 months or more, unrealized losses, total impaired securities 444 111
Total, fair value, total impaired securities 333,820 141,850
Total, unrealized losses, total impaired securities $ 2,092 $ 1,170
Available-for-sale, number of positions in an unrealized loss position | position 29 86
Held-to-maturity, number of positions in an unrealized loss position | position 10 53
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months $ 29,771 $ 4,942
12 Months or More 19,565 19,951
Total 49,336 24,893
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 172 58
12 Months or More 435 49
Total 607 107
Fair value, Debt securities held-to-maturity    
Less than 12 Months 5,968  
12 Months or More 0  
Total 5,968  
Unrealized losses, Debt securities held-to-maturity    
Less than 12 Months 32  
12 Months or More 0  
Total 32  
Trust preferred securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 17,726 0
12 Months or More 0 4,417
Total 17,726 4,417
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 466 0
12 Months or More 0 48
Total 466 48
Agency collateralized mortgage obligations    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 0 22,117
12 Months or More 10,279 2,544
Total 10,279 24,661
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 0 66
12 Months or More 9 14
Total 9 80
Fair value, Debt securities held-to-maturity    
Less than 12 Months 0  
12 Months or More 0  
Total 0  
Unrealized losses, Debt securities held-to-maturity    
Less than 12 Months 0  
12 Months or More 0  
Total 0  
Agency mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 155,074  
12 Months or More 0  
Total 155,074  
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 667  
12 Months or More 0  
Total 667  
Agency debentures    
Fair value, Debt securities held-to-maturity    
Less than 12 Months 20,032 87,879
12 Months or More 0 0
Total 20,032 87,879
Unrealized losses, Debt securities held-to-maturity    
Less than 12 Months 18 935
12 Months or More 0 0
Total 18 $ 935
Residential mortgage-backed securities    
Fair value, Debt securities held-to-maturity    
Less than 12 Months 75,405  
12 Months or More 0  
Total 75,405  
Unrealized losses, Debt securities held-to-maturity    
Less than 12 Months 293  
12 Months or More 0  
Total $ 293  
v3.20.2
Loans and Leases - Loans and Leases by Class (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans and leases held-for-investment, net of deferred fees and costs $ 7,654,446   $ 6,577,559      
Allowance for loan and lease losses (30,706) $ (23,276) (14,108) $ (13,374) $ (14,016) $ (13,208)
Loans and leases held-for-investment, net 7,623,740   6,563,451      
Loans receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans and leases held-for-investment, before deferred fees and costs 7,645,482   6,570,921      
Deferred loan costs (fees) 8,964   6,638      
Loans and leases held-for-investment, net of deferred fees and costs 7,654,446   6,577,559      
Allowance for loan and lease losses (30,706)   (14,108)      
Loans and leases held-for-investment, net 7,623,740   6,563,451      
Private Banking            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans and leases held-for-investment, net of deferred fees and costs 4,458,767   3,695,402      
Allowance for loan and lease losses (2,210) (2,151) (1,973) (1,851) (2,140) (1,942)
Private Banking | Loans receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans and leases held-for-investment, before deferred fees and costs 4,449,714   3,688,779      
Deferred loan costs (fees) 9,053   6,623      
Loans and leases held-for-investment, net of deferred fees and costs 4,458,767   3,695,402      
Allowance for loan and lease losses (2,210)   (1,973)      
Loans and leases held-for-investment, net 4,456,557   3,693,429      
Commercial and Industrial            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans and leases held-for-investment, net of deferred fees and costs 1,138,288   1,085,709      
Allowance for loan and lease losses (7,772) (7,546) (5,262) (5,316) (5,911) (5,764)
Commercial and Industrial | Loans receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans and leases held-for-investment, before deferred fees and costs 1,133,478   1,080,767      
Deferred loan costs (fees) 4,810   4,942      
Loans and leases held-for-investment, net of deferred fees and costs 1,138,288   1,085,709      
Allowance for loan and lease losses (7,772)   (5,262)      
Loans and leases held-for-investment, net 1,130,516   1,080,447      
Commercial Real Estate            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans and leases held-for-investment, net of deferred fees and costs 2,057,391   1,796,448      
Allowance for loan and lease losses (20,724) $ (13,579) (6,873) $ (6,207) $ (5,965) $ (5,502)
Commercial Real Estate | Loans receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans and leases held-for-investment, before deferred fees and costs 2,062,290   1,801,375      
Deferred loan costs (fees) (4,899)   (4,927)      
Loans and leases held-for-investment, net of deferred fees and costs 2,057,391   1,796,448      
Allowance for loan and lease losses (20,724)   (6,873)      
Loans and leases held-for-investment, net $ 2,036,667   $ 1,789,575      
v3.20.2
Loans and Leases - Narrative (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unused commitments $ 6,250,000   $ 4,910,000
Unused commitments, due on demand 5,090,000   3,870,000
Reserve for losses on unfunded commitments 1,400   645
Loans in the process of origination 61,400   20,700
Standby letters of credit      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unused commitments 73,100   $ 72,800
Standby letters of credit drawn $ 49 $ 135  
v3.20.2
Allowance for Loan and Lease Losses - Narrative (Details)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
USD ($)
contract
portfolio
Sep. 30, 2019
USD ($)
contract
Sep. 30, 2020
USD ($)
portfolio
contract
Sep. 30, 2019
USD ($)
contract
Dec. 31, 2019
USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]          
Number of loan portfolios | portfolio 3   3    
Impaired loans $ 6,754,000   $ 6,754,000   $ 184,000
Interest income on impaired loans     0   0
Loans 90 days or more past due and still accruing 0   0   0
Related allowance on impaired loans 1,520,000   1,520,000   171,000
Unused commitments for loans modified as TDRs 0   0   0
Payment defaults for loans modified as TDRs $ 0 $ 0 $ 0 $ 0  
Loans newly designated as TDRs | contract 0 0 0 0  
Real estate acquired through foreclosure $ 2,700,000   $ 2,700,000   4,300,000
Proceeds from sale of property from other real estate owned     1,500,000    
Gain on sale of property from other real estate owned     65,000    
Mortgage loans in process of foreclosure 0   0    
Non-accrual loans          
Financing Receivable, Credit Quality Indicator [Line Items]          
Recorded investment 0   $ 0   171,000
Minimum          
Financing Receivable, Credit Quality Indicator [Line Items]          
Past due period for loans (in days)     90 days    
Private Banking          
Financing Receivable, Credit Quality Indicator [Line Items]          
Impaired loans 0   $ 0   184,000
Related allowance on impaired loans $ 0   $ 0   $ 171,000
Concentration risk, percentage | Cash, marketable securities or cash value life insurance collateral risk | Private Banking          
Financing Receivable, Credit Quality Indicator [Line Items]          
Percentage of private banking loans secured by cash and marketable securities     98.20%   97.40%
v3.20.2
Allowance for Loan and Lease Losses - Credit Quality Indicator (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment $ 7,654,446 $ 6,577,559
Private Banking    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 4,458,767 3,695,402
Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 1,138,288 1,085,709
Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 2,057,391 1,796,448
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 7,615,607 6,542,566
Pass | Private Banking    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 4,458,228 3,691,866
Pass | Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 1,121,372 1,069,932
Pass | Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 2,036,007 1,780,768
Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 21,097 30,061
Special mention | Private Banking    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 0 0
Special mention | Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 16,458 15,777
Special mention | Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 4,639 14,284
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 17,742 4,932
Substandard | Private Banking    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 539 3,536
Substandard | Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment 458 0
Substandard | Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases held-for-investment $ 16,745 $ 1,396
v3.20.2
Allowance for Loan and Lease Losses - Changes in Allowance (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Allowance for Loan and Lease Losses [Roll Forward]        
Balance, beginning of period $ 23,276 $ 14,016 $ 14,108 $ 13,208
Provision (credit) for loan and lease losses 7,430 (607) 16,428 (1,696)
Charge-offs 0 (112) (171) (112)
Recoveries 0 77 341 1,974
Balance, end of period 30,706 13,374 30,706 13,374
Private Banking        
Allowance for Loan and Lease Losses [Roll Forward]        
Balance, beginning of period 2,151 2,140 1,973 1,942
Provision (credit) for loan and lease losses 59 (177) 408 21
Charge-offs 0 (112) (171) (112)
Recoveries 0 0 0 0
Balance, end of period 2,210 1,851 2,210 1,851
Commercial and Industrial        
Allowance for Loan and Lease Losses [Roll Forward]        
Balance, beginning of period 7,546 5,911 5,262 5,764
Provision (credit) for loan and lease losses 226 (672) 2,169 (2,422)
Charge-offs 0 0 0 0
Recoveries 0 77 341 1,974
Balance, end of period 7,772 5,316 7,772 5,316
Commercial Real Estate        
Allowance for Loan and Lease Losses [Roll Forward]        
Balance, beginning of period 13,579 5,965 6,873 5,502
Provision (credit) for loan and lease losses 7,145 242 13,851 705
Charge-offs 0 0 0 0
Recoveries 0 0 0 0
Balance, end of period $ 20,724 $ 6,207 $ 20,724 $ 6,207
v3.20.2
Allowance for Loan and Lease Losses - Analysis of Past Due Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due $ 6,754 $ 445
Current 7,647,692 6,577,114
Loans and leases held-for-investment, net of deferred fees and costs 7,654,446 6,577,559
Private Banking    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 445
Current 4,458,767 3,694,957
Loans and leases held-for-investment, net of deferred fees and costs 4,458,767 3,695,402
Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 458 0
Current 1,137,830 1,085,709
Loans and leases held-for-investment, net of deferred fees and costs 1,138,288 1,085,709
Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 6,296 0
Current 2,051,095 1,796,448
Loans and leases held-for-investment, net of deferred fees and costs 2,057,391 1,796,448
30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 261
30-59 Days Past Due | Private Banking    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 261
30-59 Days Past Due | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 0
30-59 Days Past Due | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 0
60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 0
60-89 Days Past Due | Private Banking    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 0
60-89 Days Past Due | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 0
60-89 Days Past Due | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 0
90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 6,754 184
90 Days or More Past Due | Private Banking    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 0 184
90 Days or More Past Due | Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due 458 0
90 Days or More Past Due | Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Past Due $ 6,296 $ 0
v3.20.2
Allowance for Loan and Lease Losses - Impaired Loans (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Recorded Investment    
With a related allowance $ 6,754 $ 171
Without a related allowance 0 13
Total 6,754 184
Unpaid Principal Balance    
With a related allowance 6,774 193
Without a related allowance 0 13
Total 6,774 206
Related Allowance 1,520 171
Average Recorded Investment    
With a related allowance 6,758 171
Without a related allowance 0 13
Total 6,758 184
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Private Banking    
Recorded Investment    
With a related allowance 0 171
Without a related allowance 0 13
Total 0 184
Unpaid Principal Balance    
With a related allowance 0 193
Without a related allowance 0 13
Total 0 206
Related Allowance 0 171
Average Recorded Investment    
With a related allowance 0 171
Without a related allowance 0 13
Total 0 184
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Commercial and Industrial    
Recorded Investment    
With a related allowance 458 0
Without a related allowance 0 0
Total 458 0
Unpaid Principal Balance    
With a related allowance 457 0
Without a related allowance 0 0
Total 457 0
Related Allowance 103 0
Average Recorded Investment    
With a related allowance 458 0
Without a related allowance 0 0
Total 458 0
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Commercial Real Estate    
Recorded Investment    
With a related allowance 6,296 0
Without a related allowance 0 0
Total 6,296 0
Unpaid Principal Balance    
With a related allowance 6,317 0
Without a related allowance 0 0
Total 6,317 0
Related Allowance 1,417 0
Average Recorded Investment    
With a related allowance 6,300 0
Without a related allowance 0 0
Total 6,300 0
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total $ 0 $ 0
v3.20.2
Allowance for Loan and Lease Losses - Allowance (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Allowance for loan and lease losses:    
Individually evaluated for impairment $ 1,520 $ 171
Collectively evaluated for impairment 29,186 13,937
Total allowance for loan and lease losses 30,706 14,108
Loans and leases held-for-investment:    
Individually evaluated for impairment 6,754 184
Collectively evaluated for impairment 7,647,692 6,577,375
Loans and leases held-for-investment, net of deferred fees and costs 7,654,446 6,577,559
Private Banking    
Allowance for loan and lease losses:    
Individually evaluated for impairment 0 171
Collectively evaluated for impairment 2,210 1,802
Total allowance for loan and lease losses 2,210 1,973
Loans and leases held-for-investment:    
Individually evaluated for impairment 0 184
Collectively evaluated for impairment 4,458,767 3,695,218
Loans and leases held-for-investment, net of deferred fees and costs 4,458,767 3,695,402
Commercial and Industrial    
Allowance for loan and lease losses:    
Individually evaluated for impairment 103 0
Collectively evaluated for impairment 7,669 5,262
Total allowance for loan and lease losses 7,772 5,262
Loans and leases held-for-investment:    
Individually evaluated for impairment 458 0
Collectively evaluated for impairment 1,137,830 1,085,709
Loans and leases held-for-investment, net of deferred fees and costs 1,138,288 1,085,709
Commercial Real Estate    
Allowance for loan and lease losses:    
Individually evaluated for impairment 1,417 0
Collectively evaluated for impairment 19,307 6,873
Total allowance for loan and lease losses 20,724 6,873
Loans and leases held-for-investment:    
Individually evaluated for impairment 6,296 0
Collectively evaluated for impairment 2,051,095 1,796,448
Loans and leases held-for-investment, net of deferred fees and costs $ 2,057,391 $ 1,796,448
v3.20.2
Deposits - Schedule of Deposits by Type (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Interest Rate Range Domestic Deposit Liabilities [Abstract]    
Interest-bearing checking accounts, interest rate minimum 0.05%  
Interest-bearing checking accounts, interest rate maximum 1.70%  
Money market deposit accounts, interest rate minimum 0.10%  
Money market deposit accounts, interest rate maximum 3.25%  
Certificates of deposit, interest rate minimum 0.06%  
Certificates of deposit, interest rate maximum 3.22%  
Weighted Average Interest Rate    
Interest-bearing checking accounts 0.44% 1.57%
Money market deposit accounts 0.73% 1.84%
Certificates of deposit 1.10% 2.24%
Weighted average rate on interest-bearing accounts 0.67% 1.87%
Demand and savings accounts:    
Noninterest-bearing checking accounts $ 439,878 $ 356,102
Interest-bearing checking accounts 3,024,007 1,398,264
Money market deposit accounts 3,662,860 3,426,745
Total demand and savings accounts 7,126,745 5,181,111
Certificates of deposit 1,056,968 1,453,502
Total deposits $ 8,183,713 $ 6,634,613
v3.20.2
Deposits - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Deposits [Abstract]    
Brokered deposits $ 528.7 $ 766.6
Reciprocal non-brokered 1,710.0 857.9
Certificates of deposit, $100,000 or more, excluding brokered and reciprocal 506.9 551.5
Certificates of deposit, $250,000 or more, excluding brokered and reciprocal $ 160.4 $ 233.5
v3.20.2
Deposits - Contractual Maturities of Time Deposits (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Time Deposits, Rolling Year Maturity [Abstract]    
12 months or less $ 946,117 $ 1,244,838
12 months to 24 months 101,019 168,437
24 months to 36 months 9,832 40,227
Total $ 1,056,968 $ 1,453,502
v3.20.2
Deposits - Interest Expense on Deposits by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Interest Expense, Deposits [Abstract]        
Interest-bearing checking accounts $ 3,280 $ 5,795 $ 11,213 $ 15,303
Money market deposit accounts 6,944 18,870 28,975 53,608
Certificates of deposit 3,674 9,449 16,907 26,691
Total interest expense on deposits $ 13,898 $ 34,114 $ 57,095 $ 95,602
v3.20.2
Borrowings - Schedule of Borrowings (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Total debt $ 395,439   $ 355,000
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 $ 95,439    
Debt issuance costs $ 1,948   $ 0
Federal Home Loan Bank advances | Federal Home Loan Bank Borrowings, Issued 7/08/2020, Maturity10/08/2020      
Debt Instrument [Line Items]      
Short term debt interest rate 0.46%    
Short-term debt $ 50,000    
Federal Home Loan Bank advances | Federal Home Loan Bank Borrowings, Issued 9/01/2020, Maturity 12/1/2020      
Debt Instrument [Line Items]      
Short term debt interest rate 0.40%    
Short-term debt $ 150,000    
Federal Home Loan Bank advances | Federal Home Loan Bank Borrowings, Issued 9/02/2020, Maturity 12/2/2020      
Debt Instrument [Line Items]      
Short term debt interest rate 0.40%    
Short-term debt $ 50,000    
Federal Home Loan Bank advances | Federal Home Loan Bank Borrowings, Issued 9/21/2020, Maturity 12/21/2020      
Debt Instrument [Line Items]      
Short term debt interest rate 0.39%    
Short-term debt $ 50,000    
Federal Home Loan Bank advances | Federal Home Loan Bank Borrowings, Maturity 5/1/2020      
Debt Instrument [Line Items]      
Short term debt interest rate     1.81%
Short-term debt     $ 55,000
Federal Home Loan Bank advances | Federal Home Loan Bank Borrowings, Issued 12/12/2019, Maturity 1/13/2020      
Debt Instrument [Line Items]      
Short term debt interest rate     1.85%
Short-term debt     $ 100,000
Federal Home Loan Bank advances | Federal Home Loan Bank Borrowings, Issued 12/02/2019, Maturity 3/2/2020      
Debt Instrument [Line Items]      
Short term debt interest rate     1.91%
Short-term debt     $ 150,000
Federal Home Loan Bank advances | Federal Home Loan Bank Borrowings, Issued 10/08/2019, Maturity 1/8/2020      
Debt Instrument [Line Items]      
Short term debt interest rate     2.00%
Short-term debt     $ 50,000
v3.20.2
Borrowings - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Jun. 30, 2020
Sep. 30, 2020
Sep. 30, 2019
Oct. 31, 2020
Dec. 31, 2019
Short-term Debt [Line Items]          
Net proceeds from issuance of subordinated notes payable   $ 95,349,000 $ 0    
Line of credit borrowings          
Short-term Debt [Line Items]          
Short-term debt   0     $ 0
Federal Home Loan Bank          
Short-term Debt [Line Items]          
Pledged securities, for Federal Home Loan Bank   2,400,000      
Texas Capital Bank | Line of credit borrowings          
Short-term Debt [Line Items]          
Line of credit facility, current borrowing capacity   75,000,000.0     75,000,000.0
Texas Capital Bank | Line of credit borrowings | Subsequent Event          
Short-term Debt [Line Items]          
Line of credit facility, current borrowing capacity       $ 50,000,000.0  
Bank subsidiary | Federal Home Loan Bank advances          
Short-term Debt [Line Items]          
Short-term debt   300,000,000.0     355,000,000.0
Bank subsidiary | Federal Home Loan Bank          
Short-term Debt [Line Items]          
Pledged securities, for Federal Home Loan Bank   2,400,000      
Pledged loans receivable, for Federal Home Loan Bank   1,280,000,000      
Bank subsidiary | Federal Home Loan Bank | Line of credit borrowings          
Short-term Debt [Line Items]          
Line of credit facility, current borrowing capacity   914,300,000      
Bank subsidiary | M&T Bank | Line of credit borrowings          
Short-term Debt [Line Items]          
Line of credit facility, current borrowing capacity   10,000,000.0      
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   20,000,000.0      
Short-term debt   0     $ 0
Bank subsidiary | PNC Bank | Financial Guarantee          
Short-term Debt [Line Items]          
Credit cards issued, notional amount   2,600,000      
Bank subsidiary | PNC Bank | Line of credit borrowings          
Short-term Debt [Line Items]          
Line of credit facility, current borrowing capacity   $ 8,000,000.0      
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%      
v3.20.2
Borrowings - Interest Expense on Borrowings by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Debt Instrument [Line Items]        
Interest expense on borrowings $ 2,850 $ 1,302 $ 7,110 $ 7,380
Subordinated notes payable        
Debt Instrument [Line Items]        
Interest expense on borrowings 1,458 0 2,138 1,090
FHLB borrowings        
Debt Instrument [Line Items]        
Interest expense on borrowings 1,392 1,302 4,711 6,222
Line of credit borrowings        
Debt Instrument [Line Items]        
Interest expense on borrowings $ 0 $ 0 $ 261 $ 68
v3.20.2
Stock Transactions - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 9 Months Ended
May 31, 2019
USD ($)
$ / shares
shares
Mar. 31, 2018
USD ($)
$ / shares
shares
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2020
USD ($)
$ / shares
shares
Sep. 30, 2019
USD ($)
$ / shares
shares
Class of Stock [Line Items]            
Net proceeds from issuance of preferred stock         $ 0 $ 77,596
Dividends paid         $ 5,886 3,791
Shares repurchased (shares) | shares         126,148  
Cost of shares repurchased     $ 609 $ 1,247 $ 3,343 1,991
Cost of shares repurchased in connection with exercise, net settlement or vesting of equity awards         2,700  
Treasury stock reissuance         $ 110  
Shares canceled in period (in shares) | shares         212,447  
Payments for cancellation of stock options         $ 2,484 $ 0
Treasury Stock            
Class of Stock [Line Items]            
Shares repurchased (shares) | shares         (40,000) (90,000)
Cost of shares repurchased     609 $ 1,247 $ 3,343 $ 1,991
Reissuance of treasury stock (in shares) | shares         8,500  
Treasury stock reissuance         $ 135  
Series B depositary share            
Class of Stock [Line Items]            
Issuance of shares (in shares) | shares 3,220,000          
Conversion from depository to preferred shares 0.025          
Liquidation preference (usd per share) | $ / shares $ 25          
Series B depositary share | Public offering            
Class of Stock [Line Items]            
Issuance of shares (in shares) | shares 3,220,000          
Series B preferred stock            
Class of Stock [Line Items]            
Issuance of shares (in shares) | shares 80,500          
Dividend rate 6.375%          
Liquidation preference (usd per share) | $ / shares $ 1,000          
Net proceeds from issuance of preferred stock $ 77,600          
Basis spread 4.088%          
Dividends paid         3,800 1,800
Series A depositary share            
Class of Stock [Line Items]            
Issuance of shares (in shares) | shares   1,610,000        
Conversion from depository to preferred shares   0.025        
Liquidation preference (usd per share) | $ / shares   $ 25        
Series A depositary share | Public offering            
Class of Stock [Line Items]            
Issuance of shares (in shares) | shares   1,610,000        
Series A preferred stock            
Class of Stock [Line Items]            
Issuance of shares (in shares) | shares   40,250        
Dividend rate   6.75%        
Liquidation preference (usd per share) | $ / shares   $ 1,000        
Net proceeds from issuance of preferred stock   $ 38,500        
Basis spread   3.985%        
Dividends paid         $ 2,000 $ 2,000
Common Stock            
Class of Stock [Line Items]            
Shares repurchased (shares) | shares         40,000 90,000
Reissuance of treasury stock (in shares) | shares         (8,500)  
Common Stock | Share Repurchase Program            
Class of Stock [Line Items]            
Stock repurchase program, remaining authorized repurchase amount     $ 9,800   $ 9,800  
Shares repurchased (shares) | shares         40,000 90,000
Cost of shares repurchased         $ 670 $ 1,800
Average cost per share (usd per share) | $ / shares         $ 16.76 $ 20.21
v3.20.2
Stock Transactions - Shares Outstanding Activity (Details) - shares
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Number of Shares Outstanding [Rollforward]    
Purchase of treasury stock through open market transactions (126,148)  
Treasury Stock    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (shares) 2,126,422 2,014,910
Purchase of treasury stock through open market transactions 40,000 90,000
Increase in treasury stock related to equity awards 126,148 8,382
Reissuance of treasury stock (8,500)  
Balance, ending of period (shares) 2,284,070 2,113,292
Preferred Shares    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (shares) 120,750 40,250
Issuance of preferred stock   80,500
Balance, ending of period (shares) 120,750 120,750
Common Stock    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (shares) 29,355,986 28,878,674
Issuance of restricted common stock 607,323 550,453
Forfeitures of restricted common stock (11,018) (74,355)
Exercise of stock options 33,500 40,580
Purchase of treasury stock through open market transactions (40,000) (90,000)
Increase in treasury stock related to equity awards (126,148) (8,382)
Reissuance of treasury stock 8,500  
Balance, ending of period (shares) 29,828,143 29,296,970
v3.20.2
Regulatory Capital - Narrative (Details)
 9 Months Ended
Sep. 30, 2020
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Percentage conservation buffer required for capital adequacy to risk weighted assets, fully phased-in 2.50%
v3.20.2
Regulatory Capital - Regulatory Capital Requirements (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Dec. 31, 2019
USD ($)
Total risk-based capital (Amount)    
Total risk-based capital $ 716,731 $ 572,221
Total risk-based capital required for capital adequacy $ 446,355 $ 379,911
Total risk-based capital (Ratio)    
Total risk-based capital, ratio 0.1285 0.1205
Total risk-based capital required for capital adequacy, ratio 0.0800 0.0800
Tier 1 risk-based capital (Amount)    
Tier 1 risk-based capital $ 589,176 $ 558,068
Tier 1 risk-based capital required for capital adequacy $ 334,766 $ 284,933
Tier 1 risk-based capital (Ratio)    
Tier 1 risk-based capital, ratio 0.1056 0.1175
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 $ 473,097 $ 442,385
Common equity tier 1 risk-based capital required for capital adequacy $ 251,075 $ 213,700
Common Equity Tier One Risk Based Capital (Ratio)    
Common equity tier 1 risk-based capital, ratio 0.0848 0.0932
Common equity tier 1 risk-based capital required for capital adequacy, ratio 4.50% 4.50%
Tier 1 leverage (Amount)    
Tier 1 leverage capital $ 589,176 $ 558,068
Tier 1 leverage capital required for capital adequacy $ 378,310 $ 296,038
Tier 1 leverage (Ratio)    
Tier 1 leverage capital, ratio 0.0623 0.0754
Tier 1 leverage capital required for capital adequacy, ratio 0.0400 0.0400
Bank subsidiary    
Total risk-based capital (Amount)    
Total risk-based capital $ 692,957 $ 547,532
Total risk-based capital required for capital adequacy 444,791 378,623
Total risk-based capital required to be well capitalized $ 555,989 $ 473,279
Total risk-based capital (Ratio)    
Total risk-based capital, ratio 0.1246 0.1157
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 $ 660,841 $ 532,779
Tier 1 risk-based capital required for capital adequacy 333,593 283,967
Tier 1 risk-based capital required to be well capitalized $ 444,791 $ 378,623
Tier 1 risk-based capital (Ratio)    
Tier 1 risk-based capital, ratio 0.1189 0.1126
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 $ 660,841 $ 532,779
Common equity tier 1 risk-based capital required for capital adequacy 250,195 212,975
Common equity tier 1 risk-based capital required to be well capitalized $ 361,393 $ 307,631
Common Equity Tier One Risk Based Capital (Ratio)    
Common equity tier 1 risk-based capital, ratio 0.1189 0.1126
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 $ 660,841 $ 532,779
Tier 1 leverage capital required for capital adequacy 377,750 295,277
Tier 1 leverage capital required to be well capitalized $ 472,187 $ 369,097
Tier 1 leverage (Ratio)    
Tier 1 leverage capital, ratio 0.0700 0.0722
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
v3.20.2
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Earnings Per Share [Abstract]        
Net income available to common shareholders $ 7,367 $ 14,372 $ 26,738 $ 41,798
Weighted Average Number of Shares Outstanding, Diluted [Abstract]        
Basic weighted average common shares outstanding (shares) 28,286,250 27,863,767 28,230,180 27,861,515
Restricted stock - dilutive (shares) 303,138 600,985 313,726 569,260
Stock options - dilutive (shares) 85,055 313,919 135,377 328,633
Diluted weighted average common shares outstanding (shares) 28,674,443 28,778,671 28,679,283 28,759,408
Earnings per common share:        
Earnings per common share, basic (in usd per share) $ 0.26 $ 0.52 $ 0.95 $ 1.50
Earnings per common share, diluted (in usd per share) $ 0.26 $ 0.50 $ 0.93 $ 1.45
Anti-dilutive shares (shares) 791,262 9,000 566,498 13,000
v3.20.2
Derivatives and Hedging Activity - Financial Position, Fair Value (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value $ 166,153 $ 55,241
Liability derivatives, fair value 176,480 57,473
Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 166,153 55,241
Other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value 176,480 57,473
Designated as hedging instrument | Other assets | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 0 0
Designated as hedging instrument | Other liabilities | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value 10,239 2,184
Not designated as hedging instrument | Other assets | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 166,153 55,241
Not designated as hedging instrument | Other liabilities | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value $ 166,241 $ 55,289
v3.20.2
Derivatives and Hedging Activity - Offsetting of Derivative Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Assets $ 166,153 $ 55,241
Gross Amounts Offset in the Statement of Financial Position 0 0
Net Amounts of Assets presented in the Statement of Financial Position 166,153 55,241
Financial Instruments 0 (850)
Cash Collateral Received 0 0
Net Amount $ 166,153 $ 54,391
v3.20.2
Derivatives and Hedging Activity - Offsetting of Derivative Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Liabilities $ 176,480 $ 57,473
Gross Amounts Offset in the Statement of Financial Position 0 0
Net Amounts of Liabilities presented in the Statement of Financial Position 176,480 57,473
Financial Instruments 0 (850)
Cash Collateral Posted (176,480) (55,753)
Net Amount $ 0 $ 870
v3.20.2
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, 2020
USD ($)
Derivative [Line Items]  
Notional Amount $ 300,000
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months 3,624
Issued 1/8/2018, Maturity 1/8/2021  
Derivative [Line Items]  
Notional Amount $ 50,000
Effective Rate 2.21%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months $ 271
Remaining Term (in Months) 3 months
Issued 5/30/2019, Maturity 6/1/2022  
Derivative [Line Items]  
Notional Amount $ 50,000
Effective Rate 2.05%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months $ 926
Remaining Term (in Months) 20 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 $ 919
Remaining Term (in Months) 32 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 $ 925
Remaining Term (in Months) 44 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 $ 387
Remaining Term (in Months) 53 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 $ 196
Remaining Term (in Months) 54 months
v3.20.2
Derivatives and Hedging Activity - Gain (Loss) in Statement of Financial Performance (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Not designated as hedging instrument        
Derivatives, Fair Value [Line Items]        
Amount of Gain (Loss) Recognized in Income on Derivatives $ 14 $ (49) $ (51) $ (168)
Interest rate swaps | Not designated as hedging instrument | Non-interest income        
Derivatives, Fair Value [Line Items]        
Amount of Gain (Loss) Recognized in Income on Derivatives 14 (17) (51) (59)
Equity swap | Not designated as hedging instrument | Non-interest income        
Derivatives, Fair Value [Line Items]        
Amount of Gain (Loss) Recognized in Income on Derivatives 0 (32) 0 (109)
Cash flow hedging | Interest rate swaps | Designated as hedging instrument | Interest expense        
Derivatives, Fair Value [Line Items]        
Amount of Gain (Loss) Recognized in Income on Derivatives (1,028) 156 (1,647) 1,277
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives $ 32 $ (967) $ (9,258) $ (3,293)
v3.20.2
Derivatives and Hedging Activity - Narrative (Details) - Interest rate swaps
$ in Millions
Sep. 30, 2020
USD ($)
Derivatives, Fair Value [Line Items]  
Termination value of derivatives, including accrued interest, in a net liability position $ 176.5
Collateral already posted amount 181.2
Not designated as hedging instrument  
Derivatives, Fair Value [Line Items]  
Derivative, aggregate notional amount $ 3,520.0
v3.20.2
Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Financial assets:    
Debt securities available-for-sale $ 552,898 $ 248,782
Level 2    
Financial assets:    
Debt securities available-for-sale 552,898 248,782
Fair value, measurements, recurring    
Financial assets:    
Total financial assets 719,051 304,023
Financial liabilities:    
Total financial liabilities 176,480 57,473
Fair value, measurements, recurring | Level 1    
Financial assets:    
Total financial assets 0 0
Financial liabilities:    
Total financial liabilities 0 0
Fair value, measurements, recurring | Level 2    
Financial assets:    
Total financial assets 719,051 304,023
Financial liabilities:    
Total financial liabilities 176,480 57,473
Fair value, measurements, recurring | Level 3    
Financial assets:    
Total financial assets 0 0
Financial liabilities:    
Total financial liabilities 0 0
Fair value, measurements, recurring | Interest rate swaps    
Financial assets:    
Interest rate swaps 166,153 55,241
Financial liabilities:    
Interest rate swaps 176,480 57,473
Fair value, measurements, recurring | Interest rate swaps | Level 1    
Financial assets:    
Interest rate swaps 0 0
Financial liabilities:    
Interest rate swaps 0 0
Fair value, measurements, recurring | Interest rate swaps | Level 2    
Financial assets:    
Interest rate swaps 166,153 55,241
Financial liabilities:    
Interest rate swaps 176,480 57,473
Fair value, measurements, recurring | Interest rate swaps | Level 3    
Financial assets:    
Interest rate swaps 0 0
Financial liabilities:    
Interest rate swaps 0 0
Fair value, measurements, recurring | Corporate bonds    
Financial assets:    
Debt securities available-for-sale 176,137 175,418
Fair value, measurements, recurring | Corporate bonds | Level 1    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Corporate bonds | Level 2    
Financial assets:    
Debt securities available-for-sale 176,137 175,418
Fair value, measurements, recurring | Corporate bonds | Level 3    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Trust preferred securities    
Financial assets:    
Debt securities available-for-sale 17,726 18,260
Fair value, measurements, recurring | Trust preferred securities | Level 1    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Trust preferred securities | Level 2    
Financial assets:    
Debt securities available-for-sale 17,726 18,260
Fair value, measurements, recurring | Trust preferred securities | Level 3    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Agency collateralized mortgage obligations    
Financial assets:    
Debt securities available-for-sale 22,954 27,193
Fair value, measurements, recurring | Agency collateralized mortgage obligations | Level 1    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Agency collateralized mortgage obligations | Level 2    
Financial assets:    
Debt securities available-for-sale 22,954 27,193
Fair value, measurements, recurring | Agency collateralized mortgage obligations | Level 3    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Agency mortgage-backed securities    
Financial assets:    
Debt securities available-for-sale 326,824 18,509
Fair value, measurements, recurring | Agency mortgage-backed securities | Level 1    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Agency mortgage-backed securities | Level 2    
Financial assets:    
Debt securities available-for-sale 326,824 18,509
Fair value, measurements, recurring | Agency mortgage-backed securities | Level 3    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Agency debentures    
Financial assets:    
Debt securities available-for-sale 9,257 9,402
Fair value, measurements, recurring | Agency debentures | Level 1    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Agency debentures | Level 2    
Financial assets:    
Debt securities available-for-sale 9,257 9,402
Fair value, measurements, recurring | Agency debentures | Level 3    
Financial assets:    
Debt securities available-for-sale $ 0 $ 0
v3.20.2
Disclosures About Fair Value of Financial Instruments - Fair Value Measurements, Nonrecurring (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Level 3    
Financial assets:    
Other real estate owned $ 2,724 $ 4,250
Fair value, measurements, nonrecurring    
Financial assets:    
Loans measured for impairment, net 5,234 13
Other real estate owned 2,724 4,250
Total assets 7,958 4,263
Fair value, measurements, nonrecurring | Level 1    
Financial assets:    
Loans measured for impairment, net 0 0
Other real estate owned 0 0
Total assets 0 0
Fair value, measurements, nonrecurring | Level 2    
Financial assets:    
Loans measured for impairment, net 0 0
Other real estate owned 0 0
Total assets 0 0
Fair value, measurements, nonrecurring | Level 3    
Financial assets:    
Loans measured for impairment, net 5,234 13
Other real estate owned 2,724 4,250
Total assets $ 7,958 $ 4,263
v3.20.2
Disclosures About Fair Value of Financial Instruments - Narrative (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Fair Value Disclosures [Abstract]    
Specific allowance for loan losses $ 1,520 $ 171
v3.20.2
Disclosures About Fair Value of Financial Instruments - Fair Value Inputs, Assets, Quantitative Information (Details) - Collateral - Level 3
$ in Thousands
Sep. 30, 2020
USD ($)
Dec. 31, 2019
USD ($)
Loans measured for impairment, net    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value $ 5,234 $ 13
Loans measured for impairment, net | Appraisal value and discount due to salability conditions    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Loans measured for impairment, net 0.34 0
Other real estate owned    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value $ 2,724 $ 4,250
Other real estate owned | Appraisal value and discount due to salability conditions    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Other real estate owned 0.20 0.17
v3.20.2
Disclosures About Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Financial assets:    
Debt securities available-for-sale $ 552,898 $ 248,782
Debt securities held-to-maturity 256,276 196,755
Investment management fees receivable, net 7,627 7,560
Interest rate swaps 166,153 55,241
Financial liabilities:    
Derivative liability 176,480 57,473
Level 1    
Financial assets:    
Cash and cash equivalents 608,302 403,855
Level 2    
Financial assets:    
Debt securities available-for-sale 552,898 248,782
Debt securities held-to-maturity 256,276 196,755
Federal Home Loan Bank stock 13,284 24,324
Accrued interest receivable 18,282 22,326
Investment management fees receivable, net 7,627 7,560
Bank owned life insurance 71,342 70,044
Financial liabilities:    
Deposits 8,208,159 6,648,546
Borrowings, net 397,624 355,003
Level 2 | Interest rate swaps    
Financial assets:    
Interest rate swaps 166,153 55,241
Financial liabilities:    
Derivative liability 176,480 57,473
Level 3    
Financial assets:    
Loans and leases held-for-investment, net 7,643,405 6,548,432
Other real estate owned 2,724 4,250
Carrying amount | Level 1    
Financial assets:    
Cash and cash equivalents 608,302 403,855
Carrying amount | Level 2    
Financial assets:    
Debt securities available-for-sale 552,898 248,782
Debt securities held-to-maturity 254,041 196,044
Federal Home Loan Bank stock 13,284 24,324
Accrued interest receivable 18,282 22,326
Investment management fees receivable, net 7,627 7,560
Bank owned life insurance 71,342 70,044
Financial liabilities:    
Deposits 8,183,713 6,634,613
Borrowings, net 395,439 355,000
Carrying amount | Level 2 | Interest rate swaps    
Financial assets:    
Interest rate swaps 166,153 55,241
Financial liabilities:    
Derivative liability 176,480 57,473
Carrying amount | Level 3    
Financial assets:    
Loans and leases held-for-investment, net 7,623,740 6,563,451
Other real estate owned $ 2,724 $ 4,250
v3.20.2
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Accumulated Other Comprehensive Income [Roll Forward]        
Beginning balance $ 632,830 $ 588,981 $ 621,281 $ 479,354
Change in unrealized holding gains (losses) 3,115 51 (4,999) 1,971
Losses (gains) reclassified from other comprehensive income (2,055) (221) (1,603) (1,170)
Net other comprehensive income (loss) 1,060 (170) (6,602) 801
Ending balance 643,200 604,507 643,200 604,507
Debt Securities        
Accumulated Other Comprehensive Income [Roll Forward]        
Beginning balance 1,692 1,230 2,756 (2,363)
Change in unrealized holding gains (losses) 3,088 787 2,041 4,477
Losses (gains) reclassified from other comprehensive income (2,835) (101) (2,852) (198)
Net other comprehensive income (loss) 253 686 (811) 4,279
Ending balance 1,945 1,916 1,945 1,916
Derivatives        
Accumulated Other Comprehensive Income [Roll Forward]        
Beginning balance (8,222) (1,590) (1,624) 1,032
Change in unrealized holding gains (losses) 27 (736) (7,040) (2,506)
Losses (gains) reclassified from other comprehensive income 780 (120) 1,249 (972)
Net other comprehensive income (loss) 807 (856) (5,791) (3,478)
Ending balance (7,415) (2,446) (7,415) (2,446)
Total        
Accumulated Other Comprehensive Income [Roll Forward]        
Beginning balance (6,530) (360) 1,132 (1,331)
Net other comprehensive income (loss) 1,060 (170) (6,602) 801
Ending balance $ (5,470) $ (530) $ (5,470) $ (530)
v3.20.2
Segments - Schedule of Segment Reporting Information (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2020
USD ($)
segment
Sep. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Segment Reporting Information [Line Items]          
Number of reportable segments | segment     2    
Assets $ 9,493,790   $ 9,493,790   $ 7,765,810
Income statement data:          
Interest income 50,222 $ 67,732 166,085 $ 196,973  
Interest expense 16,748 35,416 64,205 102,982  
Net interest income 33,474 32,316 101,880 93,991  
Provision (credit) for loan and lease losses 7,430 (607) 16,428 (1,696)  
Net interest income after provision for loan and lease losses 26,044 32,923 85,452 95,687  
Non-interest income:          
Net gain on the sale and call of debt securities 3,744 206 3,815 346  
Other non-interest income 5,050 5,135 15,916 11,365  
Total non-interest income 16,889 14,243 43,202 39,291  
Non-interest expense:          
Intangible amortization expense 478 502 1,466 1,506  
Other non-interest expense 30,949 27,271 87,202 80,524  
Total non-interest expense 31,427 27,773 88,668 82,030  
Income before tax 11,506 19,393 39,986 52,948  
Income tax expense (benefit) 2,177 3,059 7,362 7,359  
Net income 9,329 16,334 32,624 45,589  
Investment management fees          
Non-interest income:          
Total non-interest income 8,095 8,902 23,471 27,580  
Parent and other          
Segment Reporting Information [Line Items]          
Assets (2,498)   (2,498)   (4,466)
Income statement data:          
Interest income 0 12 0 111  
Interest expense 1,451 (39) 2,361 1,091  
Net interest income (1,451) 51 (2,361) (980)  
Provision (credit) for loan and lease losses 0 0 0 0  
Net interest income after provision for loan and lease losses (1,451) 51 (2,361) (980)  
Non-interest income:          
Net gain on the sale and call of debt securities 0 0 0 0  
Other non-interest income 0 31 0 881  
Total non-interest income (198) (83) (484) 549  
Non-interest expense:          
Intangible amortization expense 0 0 0 0  
Other non-interest expense 619 136 2,242 478  
Total non-interest expense 619 136 2,242 478  
Income before tax (2,268) (168) (5,087) (909)  
Income tax expense (benefit) (431) (86) (897) (296)  
Net income (1,837) (82) (4,190) (613)  
Parent and other | Investment management fees          
Non-interest income:          
Total non-interest income (198) (114) (484) (332)  
Bank | Operating segments          
Segment Reporting Information [Line Items]          
Assets 9,414,706   9,414,706   7,686,981
Income statement data:          
Interest income 50,222 67,720 166,085 196,862  
Interest expense 15,297 35,455 61,844 101,891  
Net interest income 34,925 32,265 104,241 94,971  
Provision (credit) for loan and lease losses 7,430 (607) 16,428 (1,696)  
Net interest income after provision for loan and lease losses 27,495 32,872 87,813 96,667  
Non-interest income:          
Net gain on the sale and call of debt securities 3,744 206 3,815 346  
Other non-interest income 5,027 5,113 15,893 10,467  
Total non-interest income 8,771 5,319 19,708 10,813  
Non-interest expense:          
Intangible amortization expense 0 0 0 0  
Other non-interest expense 23,462 18,949 64,462 56,872  
Total non-interest expense 23,462 18,949 64,462 56,872  
Income before tax 12,804 19,242 43,059 50,608  
Income tax expense (benefit) 2,357 3,142 7,878 6,825  
Net income 10,447 16,100 35,181 43,783  
Bank | Operating segments | Investment management fees          
Non-interest income:          
Total non-interest income 0 0 0 0  
Investment management | Operating segments          
Segment Reporting Information [Line Items]          
Assets 81,582   81,582   $ 83,295
Income statement data:          
Interest income 0 0 0 0  
Interest expense 0 0 0 0  
Net interest income 0 0 0 0  
Provision (credit) for loan and lease losses 0 0 0 0  
Net interest income after provision for loan and lease losses 0 0 0 0  
Non-interest income:          
Net gain on the sale and call of debt securities 0 0 0 0  
Other non-interest income 23 (9) 23 17  
Total non-interest income 8,316 9,007 23,978 27,929  
Non-interest expense:          
Intangible amortization expense 478 502 1,466 1,506  
Other non-interest expense 6,868 8,186 20,498 23,174  
Total non-interest expense 7,346 8,688 21,964 24,680  
Income before tax 970 319 2,014 3,249  
Income tax expense (benefit) 251 3 381 830  
Net income 719 316 1,633 2,419  
Investment management | Operating segments | Investment management fees          
Non-interest income:          
Total non-interest income $ 8,293 $ 9,016 $ 23,955 $ 27,912  
v3.20.2
Subsequent Events (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended
Oct. 10, 2020
May 31, 2019
Mar. 31, 2018
Oct. 13, 2020
Series A preferred stock        
Subsequent Event [Line Items]        
Liquidation preference (usd per share)     $ 1,000  
Dividend rate     6.75%  
Series A preferred stock | Subsequent Event        
Subsequent Event [Line Items]        
Dividend payable       $ 679
Series A depositary share        
Subsequent Event [Line Items]        
Liquidation preference (usd per share)     $ 25  
Series A depositary share | Subsequent Event        
Subsequent Event [Line Items]        
Dividends payable (usd per share)       $ 0.42
Series B preferred stock        
Subsequent Event [Line Items]        
Liquidation preference (usd per share)   $ 1,000    
Dividend rate   6.375%    
Series B preferred stock | Subsequent Event        
Subsequent Event [Line Items]        
Dividend payable       $ 1,300
Series B depositary share        
Subsequent Event [Line Items]        
Liquidation preference (usd per share)   $ 25    
Series B depositary share | Subsequent Event        
Subsequent Event [Line Items]        
Dividends payable (usd per share)       $ 0.40
Private Placement to T-VIII PubOpps | Subsequent Event        
Subsequent Event [Line Items]        
Proceeds from warrant exercises $ 105,000      
Additional proceeds if warrants exercised in full $ 16,100      
Private Placement to T-VIII PubOpps | Common Stock | Subsequent Event        
Subsequent Event [Line Items]        
Number of shares issued in transaction (in shares) 2,770,083      
Consideration received on transaction $ 40,000      
Number of securities called by warrants (in shares) 922,438      
Exercise price of warrants (in USD per share) $ 17.50      
Shares issued upon conversion (in shares) 4,727,273      
Shares to be issued or convertible (in shares) 8,419,794      
Private Placement to T-VIII PubOpps | Series C preferred stock | Subsequent Event        
Subsequent Event [Line Items]        
Number of shares issued in transaction (in shares) 650      
Consideration received on transaction $ 65,000      
Liquidation preference (usd per share) $ 100,000      
Dividend rate 6.75%