x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Commonwealth of Massachusetts
|
04-2976299
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification Number)
|
|
|
Ten Post Office Square
Boston, Massachusetts
|
02109
|
(Address of principal executive offices)
|
(Zip Code)
|
|
|
Registrant’s telephone number, including area code: (617) 912-1900
|
Common Stock, Par Value $1.00 Per Share
|
84,240,520
|
(class)
|
(outstanding)
|
PART I—FINANCIAL INFORMATION
|
|||
Item 1
|
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Item 2
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Results of Operations
|
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Item 3
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Item 4
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PART II—OTHER INFORMATION
|
|||
Item 1
|
|
||
Item 1A
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|
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Item 2
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|
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Item 3
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Item 4
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Item 5
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Item 6
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Certifications
|
|
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|||||||
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
(In thousands, except share and per share data)
|
||||||
Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
110,440
|
|
|
$
|
106,557
|
|
Investment securities available-for-sale (amortized cost of $1,196,635 and $1,283,161 at September 30, 2017 and December 31, 2016, respectively)
|
1,189,827
|
|
|
1,264,132
|
|
||
Investment securities held-to-maturity (fair value of $83,878 and $92,604 at September 30, 2017 and December 31, 2016, respectively)
|
84,090
|
|
|
93,079
|
|
||
Stock in Federal Home Loan Bank and Federal Reserve Bank
|
61,714
|
|
|
44,077
|
|
||
Loans held for sale
|
1,957
|
|
|
3,464
|
|
||
Total loans
|
6,413,201
|
|
|
6,114,354
|
|
||
Less: Allowance for loan losses
|
74,873
|
|
|
78,077
|
|
||
Net loans
|
6,338,328
|
|
|
6,036,277
|
|
||
Other real estate owned (“OREO”)
|
—
|
|
|
1,690
|
|
||
Premises and equipment, net
|
36,546
|
|
|
31,827
|
|
||
Goodwill
|
142,554
|
|
|
142,554
|
|
||
Intangible assets, net
|
22,447
|
|
|
26,725
|
|
||
Fees receivable
|
12,560
|
|
|
13,400
|
|
||
Accrued interest receivable
|
21,823
|
|
|
20,479
|
|
||
Deferred income taxes, net
|
46,088
|
|
|
55,460
|
|
||
Other assets
|
201,024
|
|
|
130,753
|
|
||
Total assets
|
$
|
8,269,398
|
|
|
$
|
7,970,474
|
|
Liabilities:
|
|
|
|
||||
Deposits
|
$
|
6,262,347
|
|
|
$
|
6,085,146
|
|
Securities sold under agreements to repurchase
|
59,903
|
|
|
59,624
|
|
||
Federal funds purchased
|
70,000
|
|
|
80,000
|
|
||
Federal Home Loan Bank borrowings
|
812,773
|
|
|
734,205
|
|
||
Junior subordinated debentures
|
106,363
|
|
|
106,363
|
|
||
Other liabilities
|
127,069
|
|
|
119,683
|
|
||
Total liabilities
|
7,438,455
|
|
|
7,185,021
|
|
||
Redeemable Noncontrolling Interests
|
15,882
|
|
|
16,972
|
|
||
Shareholders’ Equity:
|
|
|
|
||||
Preferred stock, $1.00 par value; authorized: 2,000,000 shares;
Series D, 6.95% Non-Cumulative Perpetual, issued and outstanding: 50,000 shares at September 30, 2017 and December 31, 2016; liquidation preference: $1,000 per share
|
47,753
|
|
|
47,753
|
|
||
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 84,082,250 shares at September 30, 2017 and 83,731,769 shares at December 31, 2016
|
84,082
|
|
|
83,732
|
|
||
Additional paid-in capital
|
606,802
|
|
|
597,454
|
|
||
Retained earnings
|
76,455
|
|
|
47,929
|
|
||
Accumulated other comprehensive income/ (loss)
|
(4,823
|
)
|
|
(12,548
|
)
|
||
Total Company’s shareholders’ equity
|
810,269
|
|
|
764,320
|
|
||
Noncontrolling interests
|
4,792
|
|
|
4,161
|
|
||
Total shareholders’ equity
|
815,061
|
|
|
768,481
|
|
||
Total liabilities, redeemable noncontrolling interests and shareholders’ equity
|
$
|
8,269,398
|
|
|
$
|
7,970,474
|
|
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
|||||||||||||||
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In thousands, except share and per share data)
|
||||||||||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
58,096
|
|
|
$
|
50,074
|
|
|
$
|
169,468
|
|
|
$
|
149,851
|
|
Taxable investment securities
|
1,569
|
|
|
1,537
|
|
|
4,831
|
|
|
4,638
|
|
||||
Non-taxable investment securities
|
1,664
|
|
|
1,444
|
|
|
4,925
|
|
|
4,234
|
|
||||
Mortgage-backed securities
|
3,267
|
|
|
3,079
|
|
|
10,266
|
|
|
9,126
|
|
||||
Federal funds sold and other
|
916
|
|
|
469
|
|
|
2,347
|
|
|
1,381
|
|
||||
Total interest and dividend income
|
65,512
|
|
|
56,603
|
|
|
191,837
|
|
|
169,230
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
5,356
|
|
|
4,163
|
|
|
14,836
|
|
|
12,420
|
|
||||
Federal Home Loan Bank borrowings
|
2,657
|
|
|
1,929
|
|
|
7,257
|
|
|
6,021
|
|
||||
Junior subordinated debentures
|
761
|
|
|
591
|
|
|
2,148
|
|
|
1,753
|
|
||||
Repurchase agreements and other short-term borrowings
|
111
|
|
|
49
|
|
|
182
|
|
|
117
|
|
||||
Total interest expense
|
8,885
|
|
|
6,732
|
|
|
24,423
|
|
|
20,311
|
|
||||
Net interest income
|
56,627
|
|
|
49,871
|
|
|
167,414
|
|
|
148,919
|
|
||||
Provision/ (credit) for loan losses
|
(432
|
)
|
|
(138
|
)
|
|
(6,727
|
)
|
|
(5,806
|
)
|
||||
Net interest income after provision/ (credit) for loan losses
|
57,059
|
|
|
50,009
|
|
|
174,141
|
|
|
154,725
|
|
||||
Fees and other income:
|
|
|
|
|
|
|
|
||||||||
Investment management fees
|
11,274
|
|
|
10,717
|
|
|
33,194
|
|
|
32,002
|
|
||||
Wealth advisory fees
|
13,279
|
|
|
12,750
|
|
|
39,063
|
|
|
38,013
|
|
||||
Wealth management and trust fees
|
11,619
|
|
|
10,826
|
|
|
33,606
|
|
|
32,950
|
|
||||
Other banking fee income
|
2,726
|
|
|
3,447
|
|
|
6,384
|
|
|
9,662
|
|
||||
Gain on sale of loans, net
|
169
|
|
|
156
|
|
|
366
|
|
|
562
|
|
||||
Gain/ (loss) on sale of investments, net
|
230
|
|
|
273
|
|
|
486
|
|
|
519
|
|
||||
Gain/ (loss) on OREO, net
|
—
|
|
|
137
|
|
|
(46
|
)
|
|
417
|
|
||||
Other
|
970
|
|
|
1,706
|
|
|
1,738
|
|
|
704
|
|
||||
Total fees and other income
|
40,267
|
|
|
40,012
|
|
|
114,791
|
|
|
114,829
|
|
||||
Operating expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
45,168
|
|
|
40,924
|
|
|
134,486
|
|
|
124,098
|
|
||||
Occupancy and equipment
|
11,283
|
|
|
9,521
|
|
|
32,711
|
|
|
29,036
|
|
||||
Professional services
|
3,308
|
|
|
2,290
|
|
|
9,728
|
|
|
8,820
|
|
||||
Marketing and business development
|
2,216
|
|
|
1,623
|
|
|
5,847
|
|
|
5,604
|
|
||||
Contract services and data processing
|
1,608
|
|
|
1,865
|
|
|
4,829
|
|
|
5,281
|
|
||||
Amortization of intangibles
|
1,426
|
|
|
1,568
|
|
|
4,278
|
|
|
4,740
|
|
||||
FDIC insurance
|
647
|
|
|
722
|
|
|
2,292
|
|
|
2,757
|
|
||||
Restructuring
|
—
|
|
|
—
|
|
|
—
|
|
|
2,017
|
|
||||
Other
|
3,690
|
|
|
3,157
|
|
|
11,776
|
|
|
10,757
|
|
||||
Total operating expense
|
69,346
|
|
|
61,670
|
|
|
205,947
|
|
|
193,110
|
|
||||
Income before income taxes
|
27,980
|
|
|
28,351
|
|
|
82,985
|
|
|
76,444
|
|
||||
Income tax expense
|
8,289
|
|
|
8,652
|
|
|
24,805
|
|
|
23,716
|
|
||||
Net income from continuing operations
|
19,691
|
|
|
19,699
|
|
|
58,180
|
|
|
52,728
|
|
||||
Net income from discontinued operations
|
1,186
|
|
|
1,047
|
|
|
3,881
|
|
|
4,357
|
|
||||
Net income before attribution to noncontrolling interests
|
20,877
|
|
|
20,746
|
|
|
62,061
|
|
|
57,085
|
|
||||
(Continued)
|
|
|
|
|
|
|
|
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
|||||||||||||||
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Less: Net income attributable to noncontrolling interests
|
1,074
|
|
|
1,110
|
|
|
3,190
|
|
|
3,010
|
|
||||
Net income attributable to the Company
|
$
|
19,803
|
|
|
$
|
19,636
|
|
|
$
|
58,871
|
|
|
$
|
54,075
|
|
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders
|
$
|
(1,146
|
)
|
|
$
|
(1,006
|
)
|
|
$
|
(2,889
|
)
|
|
$
|
(2,265
|
)
|
Net income attributable to common shareholders for earnings per share calculation
|
$
|
18,657
|
|
|
$
|
18,630
|
|
|
$
|
55,982
|
|
|
$
|
51,810
|
|
Basic earnings per share attributable to common shareholders:
|
|
|
|
|
|
|
|
||||||||
From continuing operations:
|
$
|
0.21
|
|
|
$
|
0.22
|
|
|
$
|
0.63
|
|
|
$
|
0.58
|
|
From discontinued operations:
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
Total attributable to common shareholders:
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.68
|
|
|
$
|
0.64
|
|
Weighted average basic common shares outstanding
|
82,556,225
|
|
|
81,301,499
|
|
|
82,270,849
|
|
|
81,280,014
|
|
||||
Diluted earnings per share attributable to common shareholders:
|
|
|
|
|
|
|
|
||||||||
From continuing operations:
|
$
|
0.21
|
|
|
$
|
0.21
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
From discontinued operations:
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
Total attributable to common shareholders:
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
0.66
|
|
|
$
|
0.62
|
|
Weighted average diluted common shares outstanding
|
84,888,311
|
|
|
83,562,283
|
|
|
84,741,172
|
|
|
83,430,480
|
|
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
|
|||||||||||||||
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In thousands)
|
||||||||||||||
Net income attributable to the Company
|
$
|
19,803
|
|
|
$
|
19,636
|
|
|
$
|
58,871
|
|
|
$
|
54,075
|
|
Other comprehensive income/ (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized gain/ (loss) on securities available-for-sale
|
1,114
|
|
|
(2,976
|
)
|
|
7,588
|
|
|
12,322
|
|
||||
Reclassification adjustment for net realized (gain)/ loss included in net income
|
(141
|
)
|
|
(172
|
)
|
|
(293
|
)
|
|
(330
|
)
|
||||
Net unrealized gain/ (loss) on securities available-for-sale
|
973
|
|
|
(3,148
|
)
|
|
7,295
|
|
|
11,992
|
|
||||
Unrealized gain/ (loss) on cash flow hedges
|
70
|
|
|
379
|
|
|
(140
|
)
|
|
(1,119
|
)
|
||||
Reclassification adjustment for net realized (gain)/ loss included in net income
|
172
|
|
|
249
|
|
|
558
|
|
|
761
|
|
||||
Net unrealized gain/ (loss) on cash flow hedges
|
242
|
|
|
628
|
|
|
418
|
|
|
(358
|
)
|
||||
Net unrealized gain/ (loss) on other
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Other comprehensive income/ (loss), net of tax
|
1,215
|
|
|
(2,520
|
)
|
|
7,725
|
|
|
11,634
|
|
||||
Total comprehensive income attributable to the Company, net
|
$
|
21,018
|
|
|
$
|
17,116
|
|
|
$
|
66,596
|
|
|
$
|
65,709
|
|
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
|
|||||||||||||||||||||||||||
|
Preferred
Stock
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income/
(Loss)
|
|
Non-
controlling
Interests
|
|
Total
|
||||||||||||||
|
(In thousands, except share data)
|
||||||||||||||||||||||||||
Balance, December 31, 2015
|
$
|
47,753
|
|
|
$
|
83,411
|
|
|
$
|
600,670
|
|
|
$
|
12,886
|
|
|
$
|
(1,500
|
)
|
|
$
|
3,393
|
|
|
$
|
746,613
|
|
Net income attributable to the Company
|
—
|
|
|
—
|
|
|
—
|
|
|
54,075
|
|
|
—
|
|
|
—
|
|
|
54,075
|
|
|||||||
Other comprehensive income/ (loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,634
|
|
|
—
|
|
|
11,634
|
|
|||||||
Dividends paid to common shareholders:
$0.30 per share |
—
|
|
|
—
|
|
|
—
|
|
|
(24,940
|
)
|
|
—
|
|
|
—
|
|
|
(24,940
|
)
|
|||||||
Dividends paid to preferred shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,606
|
)
|
|
—
|
|
|
—
|
|
|
(2,606
|
)
|
|||||||
Net change in noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
389
|
|
|
389
|
|
|||||||
Repurchase of 684,442 shares of common stock
|
—
|
|
|
(684
|
)
|
|
(7,336
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,020
|
)
|
|||||||
Net proceeds from issuance of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
165,934 shares of common stock
|
—
|
|
|
166
|
|
|
1,413
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,579
|
|
|||||||
591,234 shares of incentive stock grants, net of 326,834 shares canceled or forfeited and 63,235 shares withheld for employee taxes
|
—
|
|
|
201
|
|
|
(939
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(738
|
)
|
|||||||
Amortization of stock compensation and employee stock purchase plan
|
—
|
|
|
—
|
|
|
2,186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,186
|
|
|||||||
Stock options exercised
|
—
|
|
|
101
|
|
|
688
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
789
|
|
|||||||
Tax benefit/ (deficiency) from certain stock compensation awards
|
—
|
|
|
—
|
|
|
(728
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(728
|
)
|
|||||||
Other equity adjustments
|
—
|
|
|
—
|
|
|
1,255
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,255
|
|
|||||||
Balance at September 30, 2016
|
$
|
47,753
|
|
|
$
|
83,195
|
|
|
$
|
597,209
|
|
|
$
|
39,415
|
|
|
$
|
10,134
|
|
|
$
|
3,782
|
|
|
$
|
781,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, December 31, 2016
|
$
|
47,753
|
|
|
$
|
83,732
|
|
|
$
|
597,454
|
|
|
$
|
47,929
|
|
|
$
|
(12,548
|
)
|
|
$
|
4,161
|
|
|
$
|
768,481
|
|
Net income attributable to the Company
|
—
|
|
|
—
|
|
|
—
|
|
|
58,871
|
|
|
—
|
|
|
—
|
|
|
58,871
|
|
|||||||
Other comprehensive income/ (loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,725
|
|
|
—
|
|
|
7,725
|
|
|||||||
Dividends paid to common shareholders:
$0.33 per share |
—
|
|
|
—
|
|
|
—
|
|
|
(27,739
|
)
|
|
—
|
|
|
—
|
|
|
(27,739
|
)
|
|||||||
Dividends paid to preferred shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,606
|
)
|
|
—
|
|
|
—
|
|
|
(2,606
|
)
|
|||||||
Net change in noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
631
|
|
|
631
|
|
|||||||
Net proceeds from issuance of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
140,284 shares of common stock
|
—
|
|
|
140
|
|
|
1,461
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,601
|
|
|||||||
90,848 incentive stock grant shares canceled or forfeited and 62,087 shares withheld for employee taxes
|
—
|
|
|
(153
|
)
|
|
(816
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(969
|
)
|
|||||||
Exercise of warrants
|
—
|
|
|
261
|
|
|
1,618
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,879
|
|
|||||||
Amortization of stock compensation and employee stock purchase plan
|
—
|
|
|
—
|
|
|
6,183
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,183
|
|
|||||||
Stock options exercised
|
—
|
|
|
102
|
|
|
725
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
827
|
|
|||||||
Other equity adjustments
|
—
|
|
|
—
|
|
|
177
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177
|
|
|||||||
Balance at September 30, 2017
|
$
|
47,753
|
|
|
$
|
84,082
|
|
|
$
|
606,802
|
|
|
$
|
76,455
|
|
|
$
|
(4,823
|
)
|
|
$
|
4,792
|
|
|
$
|
815,061
|
|
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|||||||
|
Nine months ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income attributable to the Company
|
$
|
58,871
|
|
|
$
|
54,075
|
|
Adjustments to arrive at net income from continuing operations
|
|
|
|
||||
Net income attributable to noncontrolling interests
|
3,190
|
|
|
3,010
|
|
||
Less: Net income from discontinued operations
|
(3,881
|
)
|
|
(4,357
|
)
|
||
Net income from continuing operations
|
58,180
|
|
|
52,728
|
|
||
Adjustments to reconcile net income from continuing operations to net cash provided by/ (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
15,835
|
|
|
16,997
|
|
||
Net income attributable to noncontrolling interests
|
(3,190
|
)
|
|
(3,010
|
)
|
||
Stock compensation, net of cancellations
|
6,183
|
|
|
2,186
|
|
||
Provision/ (credit) for loan losses
|
(6,727
|
)
|
|
(5,806
|
)
|
||
Loans originated for sale
|
(38,099
|
)
|
|
(61,768
|
)
|
||
Proceeds from sale of loans held for sale
|
39,972
|
|
|
65,086
|
|
||
Deferred income tax expense/ (benefit)
|
4,141
|
|
|
3,721
|
|
||
Net decrease/ (increase) in other operating activities
|
(9,407
|
)
|
|
(2,134
|
)
|
||
Net cash provided by/ (used in) operating activities of continuing operations
|
66,888
|
|
|
68,000
|
|
||
Net cash provided by/ (used in) operating activities of discontinued operations
|
3,881
|
|
|
4,357
|
|
||
Net cash provided by/ (used in) operating activities
|
70,769
|
|
|
72,357
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Available-for-sale investment securities:
|
|
|
|
||||
Purchases
|
(138,623
|
)
|
|
(323,271
|
)
|
||
Sales
|
119,238
|
|
|
41,961
|
|
||
Maturities, calls, redemptions, and principal payments
|
100,065
|
|
|
131,245
|
|
||
Held-to-maturity investment securities:
|
|
|
|
||||
Purchases
|
(14,945
|
)
|
|
—
|
|
||
Maturities and principal payments
|
23,541
|
|
|
16,907
|
|
||
(Investments)/ distributions in trusts, net
|
(747
|
)
|
|
(539
|
)
|
||
Purchase of additional Bank Owned Life Insurance (“BOLI”)
|
(50,000
|
)
|
|
—
|
|
||
(Purchase)/ redemption of Federal Home Loan Bank and Federal Reserve Bank stock
|
(17,637
|
)
|
|
(903
|
)
|
||
Net (increase)/ decrease in portfolio loans
|
(298,304
|
)
|
|
(156,688
|
)
|
||
Proceeds from recoveries of loans previously charged-off
|
4,082
|
|
|
8,347
|
|
||
Proceeds from sale of OREO
|
1,644
|
|
|
1,337
|
|
||
Capital expenditures, net of sale proceeds
|
(10,769
|
)
|
|
(7,099
|
)
|
||
Net cash provided by/ (used in) investing activities of continuing operations
|
(282,455
|
)
|
|
(288,703
|
)
|
||
Net cash provided by/ (used in) investing activities
|
(282,455
|
)
|
|
(288,703
|
)
|
||
(Continued)
|
|
|
|
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|||||||
|
Nine months ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Net increase/ (decrease) in deposits
|
177,201
|
|
|
(122,406
|
)
|
||
Net increase/ (decrease) in securities sold under agreements to repurchase
|
279
|
|
|
19,251
|
|
||
Net increase/ (decrease) in federal funds purchased
|
(10,000
|
)
|
|
125,000
|
|
||
Net increase/ (decrease) in short-term Federal Home Loan Bank borrowings
|
110,000
|
|
|
95,000
|
|
||
Advances of long-term Federal Home Loan Bank borrowings
|
50,110
|
|
|
67,179
|
|
||
Repayments of long-term Federal Home Loan Bank borrowings
|
(81,542
|
)
|
|
(100,822
|
)
|
||
Dividends paid to common shareholders
|
(27,739
|
)
|
|
(24,940
|
)
|
||
Dividends paid to preferred shareholders
|
(2,606
|
)
|
|
(2,606
|
)
|
||
Proceeds from warrant exercises
|
1,879
|
|
|
—
|
|
||
Repurchase of common stock
|
—
|
|
|
(8,020
|
)
|
||
Tax benefit/ (deficiency) from certain stock compensation awards
|
—
|
|
|
(728
|
)
|
||
Proceeds from stock option exercises
|
827
|
|
|
789
|
|
||
Proceeds from issuance of common stock, net
|
632
|
|
|
841
|
|
||
Distributions paid to noncontrolling interests
|
(3,197
|
)
|
|
(2,905
|
)
|
||
Other equity adjustments
|
(275
|
)
|
|
(350
|
)
|
||
Net cash provided by/ (used in) financing activities of continuing operations
|
215,569
|
|
|
45,283
|
|
||
Net cash provided by/ (used in) financing activities
|
215,569
|
|
|
45,283
|
|
||
Net increase/ (decrease) in cash and cash equivalents
|
3,883
|
|
|
(171,063
|
)
|
||
Cash and cash equivalents at beginning of year
|
106,557
|
|
|
238,694
|
|
||
Cash and cash equivalents at end of period
|
$
|
110,440
|
|
|
$
|
67,631
|
|
Supplementary schedule of non-cash investing and financing activities:
|
|
|
|
||||
Cash paid for interest
|
$
|
23,681
|
|
|
$
|
20,489
|
|
Cash paid for income taxes, (net of refunds received)
|
32,051
|
|
|
27,554
|
|
||
Change in unrealized gain/ (loss) on available-for-sale securities, net of tax
|
7,295
|
|
|
11,992
|
|
||
Change in unrealized gain/ (loss) on cash flow hedges, net of tax
|
418
|
|
|
(358
|
)
|
||
Change in unrealized gain/ (loss) on other, net of tax
|
12
|
|
|
—
|
|
||
Non-cash transactions:
|
|
|
|
||||
Loans transferred into other real estate owned from loan portfolio
|
—
|
|
|
1,944
|
|
||
Loans charged-off
|
(559
|
)
|
|
(3,372
|
)
|
||
Premises and equipment transferred into/ (out of) other assets held for sale
|
—
|
|
|
891
|
|
||
Deposits transferred into/ (out of) held for sale
|
—
|
|
|
105,788
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
(In thousands, except share and per share data)
|
|
||||||||||||||
Basic earnings per share - Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations
|
$
|
19,691
|
|
|
$
|
19,699
|
|
|
$
|
58,180
|
|
|
$
|
52,728
|
|
Less: Net income attributable to noncontrolling interests
|
1,074
|
|
|
1,110
|
|
|
3,190
|
|
|
3,010
|
|
||||
Net income from continuing operations attributable to the Company
|
18,617
|
|
|
18,589
|
|
|
54,990
|
|
|
49,718
|
|
||||
Decrease/ (increase) in noncontrolling interests’ redemption values (1)
|
(278
|
)
|
|
(138
|
)
|
|
(283
|
)
|
|
341
|
|
||||
Dividends on preferred stock
|
(868
|
)
|
|
(868
|
)
|
|
(2,606
|
)
|
|
(2,606
|
)
|
||||
Total adjustments to income attributable to common shareholders
|
(1,146
|
)
|
|
(1,006
|
)
|
|
(2,889
|
)
|
|
(2,265
|
)
|
||||
Net income from continuing operations attributable to common shareholders, treasury stock method
|
17,471
|
|
|
17,583
|
|
|
52,101
|
|
|
47,453
|
|
||||
Net income from discontinued operations
|
1,186
|
|
|
1,047
|
|
|
3,881
|
|
|
4,357
|
|
||||
Net income attributable to common shareholders, treasury stock method
|
$
|
18,657
|
|
|
$
|
18,630
|
|
|
$
|
55,982
|
|
|
$
|
51,810
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share - Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average basic common shares outstanding
|
82,556,225
|
|
|
81,301,499
|
|
|
82,270,849
|
|
|
81,280,014
|
|
||||
Per share data - Basic earnings per share from:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.21
|
|
|
$
|
0.22
|
|
|
$
|
0.63
|
|
|
$
|
0.58
|
|
Discontinued operations
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
Total attributable to common shareholders
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
0.68
|
|
|
$
|
0.64
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
(In thousands, except share and per share data)
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share - Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations attributable to common shareholders, after assumed dilution
|
$
|
17,471
|
|
|
$
|
17,583
|
|
|
$
|
52,101
|
|
|
$
|
47,453
|
|
Net income from discontinued operations
|
1,186
|
|
|
1,047
|
|
|
3,881
|
|
|
4,357
|
|
||||
Net income attributable to common shareholders, after assumed dilution
|
$
|
18,657
|
|
|
$
|
18,630
|
|
|
$
|
55,982
|
|
|
$
|
51,810
|
|
Diluted earnings per share - Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average basic common shares outstanding
|
82,556,225
|
|
|
81,301,499
|
|
|
82,270,849
|
|
|
81,280,014
|
|
||||
Dilutive effect of:
|
|
|
|
|
|
|
|
||||||||
Stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (2)
|
1,233,888
|
|
|
956,446
|
|
|
1,333,830
|
|
|
959,917
|
|
||||
Warrants to purchase common stock (2)
|
1,098,198
|
|
|
1,304,338
|
|
|
1,136,493
|
|
|
1,190,549
|
|
||||
Dilutive common shares
|
2,332,086
|
|
|
2,260,784
|
|
|
2,470,323
|
|
|
2,150,466
|
|
||||
Weighted average diluted common shares outstanding (2)
|
84,888,311
|
|
|
83,562,283
|
|
|
84,741,172
|
|
|
83,430,480
|
|
||||
Per share data - Diluted earnings per share from:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.21
|
|
|
$
|
0.21
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
Discontinued operations
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
Total attributable to common shareholders
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
0.66
|
|
|
$
|
0.62
|
|
Dividends per share declared and paid on common stock
|
$
|
0.11
|
|
|
$
|
0.10
|
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
(1)
|
See Part II. Item 8. “Financial Statements and Supplementary Data—Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2016
for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480,
Distinguishing Liabilities from Equity
(“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009.
|
(2)
|
The diluted EPS computations for
the three and nine months ended September 30, 2017 and 2016
do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows:
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):
|
(In thousands)
|
||||||||||
Potential common shares from:
|
|
|
|
|
|
|
|
||||
Stock options
|
48
|
|
|
224
|
|
|
74
|
|
|
285
|
|
Total shares excluded due to exercise price exceeding the average market price of common shares during the period
|
48
|
|
|
224
|
|
|
74
|
|
|
285
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Private Banking
|
(In thousands)
|
||||||||||||||
Net interest income
|
$
|
57,295
|
|
|
$
|
50,419
|
|
|
$
|
169,334
|
|
|
$
|
150,553
|
|
Fees and other income
|
3,720
|
|
|
5,528
|
|
|
8,182
|
|
|
11,132
|
|
||||
Total revenues
|
61,015
|
|
|
55,947
|
|
|
177,516
|
|
|
161,685
|
|
||||
Provision/ (credit) for loan losses
|
(432
|
)
|
|
(138
|
)
|
|
(6,727
|
)
|
|
(5,806
|
)
|
||||
Operating expense
|
38,482
|
|
|
30,439
|
|
|
110,444
|
|
|
93,808
|
|
||||
Income before income taxes
|
22,965
|
|
|
25,646
|
|
|
73,799
|
|
|
73,683
|
|
||||
Income tax expense
|
6,634
|
|
|
8,226
|
|
|
22,112
|
|
|
23,638
|
|
||||
Net income from continuing operations
|
16,331
|
|
|
17,420
|
|
|
51,687
|
|
|
50,045
|
|
||||
Net income attributable to the Company
|
$
|
16,331
|
|
|
$
|
17,420
|
|
|
$
|
51,687
|
|
|
$
|
50,045
|
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
8,113,836
|
|
|
$
|
7,512,884
|
|
|
$
|
8,113,836
|
|
|
$
|
7,512,884
|
|
Depreciation
|
$
|
1,431
|
|
|
$
|
1,094
|
|
|
$
|
4,145
|
|
|
$
|
3,365
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Wealth Management and Trust
|
(In thousands)
|
||||||||||||||
Fees and other income
|
$
|
11,739
|
|
|
$
|
10,921
|
|
|
$
|
33,934
|
|
|
$
|
33,277
|
|
Operating expense (1)
|
11,752
|
|
|
12,307
|
|
|
37,562
|
|
|
41,897
|
|
||||
Income/ (loss) before income taxes
|
(13
|
)
|
|
(1,386
|
)
|
|
(3,628
|
)
|
|
(8,620
|
)
|
||||
Income tax expense/ (benefit)
|
(125
|
)
|
|
(538
|
)
|
|
(1,530
|
)
|
|
(3,448
|
)
|
||||
Net income/ (loss) from continuing operations
|
112
|
|
|
(848
|
)
|
|
(2,098
|
)
|
|
(5,172
|
)
|
||||
Net income/ (loss) attributable to the Company
|
$
|
112
|
|
|
$
|
(848
|
)
|
|
$
|
(2,098
|
)
|
|
$
|
(5,172
|
)
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
73,511
|
|
|
$
|
86,349
|
|
|
$
|
73,511
|
|
|
$
|
86,349
|
|
Amortization of intangibles
|
$
|
727
|
|
|
$
|
745
|
|
|
$
|
2,181
|
|
|
$
|
2,235
|
|
Depreciation
|
$
|
330
|
|
|
$
|
317
|
|
|
$
|
1,008
|
|
|
$
|
818
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Investment Management
|
(In thousands)
|
||||||||||||||
Net interest income
|
$
|
8
|
|
|
$
|
4
|
|
|
$
|
16
|
|
|
$
|
12
|
|
Fees and other income
|
11,280
|
|
|
10,717
|
|
|
33,230
|
|
|
32,023
|
|
||||
Total revenues
|
11,288
|
|
|
10,721
|
|
|
33,246
|
|
|
32,035
|
|
||||
Operating expense
|
8,407
|
|
|
7,986
|
|
|
25,107
|
|
|
23,904
|
|
||||
Income before income taxes
|
2,881
|
|
|
2,735
|
|
|
8,139
|
|
|
8,131
|
|
||||
Income tax expense
|
981
|
|
|
898
|
|
|
2,719
|
|
|
2,675
|
|
||||
Net income from continuing operations
|
1,900
|
|
|
1,837
|
|
|
5,420
|
|
|
5,456
|
|
||||
Noncontrolling interests
|
451
|
|
|
507
|
|
|
1,425
|
|
|
1,453
|
|
||||
Net income attributable to the Company
|
$
|
1,449
|
|
|
$
|
1,330
|
|
|
$
|
3,995
|
|
|
$
|
4,003
|
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
93,910
|
|
|
$
|
93,669
|
|
|
$
|
93,910
|
|
|
$
|
93,669
|
|
Amortization of intangibles
|
$
|
650
|
|
|
$
|
650
|
|
|
$
|
1,951
|
|
|
$
|
1,951
|
|
Depreciation
|
$
|
62
|
|
|
$
|
68
|
|
|
$
|
189
|
|
|
$
|
215
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Wealth Advisory
|
(In thousands)
|
||||||||||||||
Net interest income
|
$
|
36
|
|
|
$
|
4
|
|
|
$
|
82
|
|
|
$
|
10
|
|
Fees and other income
|
13,299
|
|
|
12,778
|
|
|
39,122
|
|
|
38,099
|
|
||||
Total revenues
|
13,335
|
|
|
12,782
|
|
|
39,204
|
|
|
38,109
|
|
||||
Operating expense
|
9,174
|
|
|
8,975
|
|
|
27,560
|
|
|
27,839
|
|
||||
Income before income taxes
|
4,161
|
|
|
3,807
|
|
|
11,644
|
|
|
10,270
|
|
||||
Income tax expense
|
1,562
|
|
|
1,398
|
|
|
4,360
|
|
|
3,812
|
|
||||
Net income from continuing operations
|
2,599
|
|
|
2,409
|
|
|
7,284
|
|
|
6,458
|
|
||||
Noncontrolling interests
|
623
|
|
|
603
|
|
|
1,765
|
|
|
1,557
|
|
||||
Net income attributable to the Company
|
$
|
1,976
|
|
|
$
|
1,806
|
|
|
$
|
5,519
|
|
|
$
|
4,901
|
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
77,289
|
|
|
$
|
79,133
|
|
|
$
|
77,289
|
|
|
$
|
79,133
|
|
Amortization of intangibles
|
$
|
49
|
|
|
$
|
173
|
|
|
$
|
146
|
|
|
$
|
554
|
|
Depreciation
|
$
|
237
|
|
|
$
|
219
|
|
|
$
|
698
|
|
|
$
|
653
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Holding Company and Eliminations
|
(In thousands)
|
||||||||||||||
Net interest income
|
$
|
(711
|
)
|
|
$
|
(556
|
)
|
|
$
|
(2,018
|
)
|
|
$
|
(1,656
|
)
|
Fees and other income
|
229
|
|
|
68
|
|
|
323
|
|
|
298
|
|
||||
Total revenues
|
(482
|
)
|
|
(488
|
)
|
|
(1,695
|
)
|
|
(1,358
|
)
|
||||
Operating expense
|
1,531
|
|
|
1,963
|
|
|
5,274
|
|
|
5,662
|
|
||||
Income/ (loss) before income taxes
|
(2,013
|
)
|
|
(2,451
|
)
|
|
(6,969
|
)
|
|
(7,020
|
)
|
||||
Income tax expense/ (benefit)
|
(763
|
)
|
|
(1,332
|
)
|
|
(2,856
|
)
|
|
(2,961
|
)
|
||||
Net income/ (loss) from continuing operations
|
(1,250
|
)
|
|
(1,119
|
)
|
|
(4,113
|
)
|
|
(4,059
|
)
|
||||
Discontinued operations
|
1,186
|
|
|
1,047
|
|
|
3,881
|
|
|
4,357
|
|
||||
Net income/ (loss) attributable to the Company
|
$
|
(64
|
)
|
|
$
|
(72
|
)
|
|
$
|
(232
|
)
|
|
$
|
298
|
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
(89,148
|
)
|
|
$
|
(90,485
|
)
|
|
$
|
(89,148
|
)
|
|
$
|
(90,485
|
)
|
Depreciation
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Total Company
|
(In thousands)
|
||||||||||||||
Net interest income
|
$
|
56,627
|
|
|
$
|
49,871
|
|
|
$
|
167,414
|
|
|
$
|
148,919
|
|
Fees and other income
|
40,267
|
|
|
40,012
|
|
|
114,791
|
|
|
114,829
|
|
||||
Total revenues
|
96,894
|
|
|
89,883
|
|
|
282,205
|
|
|
263,748
|
|
||||
Provision/ (credit) for loan losses
|
(432
|
)
|
|
(138
|
)
|
|
(6,727
|
)
|
|
(5,806
|
)
|
||||
Operating expense
|
69,346
|
|
|
61,670
|
|
|
205,947
|
|
|
193,110
|
|
||||
Income before income taxes
|
27,980
|
|
|
28,351
|
|
|
82,985
|
|
|
76,444
|
|
||||
Income tax expense
|
8,289
|
|
|
8,652
|
|
|
24,805
|
|
|
23,716
|
|
||||
Net income from continuing operations
|
19,691
|
|
|
19,699
|
|
|
58,180
|
|
|
52,728
|
|
||||
Noncontrolling interests
|
1,074
|
|
|
1,110
|
|
|
3,190
|
|
|
3,010
|
|
||||
Discontinued operations
|
1,186
|
|
|
1,047
|
|
|
3,881
|
|
|
4,357
|
|
||||
Net income attributable to the Company
|
$
|
19,803
|
|
|
$
|
19,636
|
|
|
$
|
58,871
|
|
|
$
|
54,075
|
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
8,269,398
|
|
|
$
|
7,681,550
|
|
|
$
|
8,269,398
|
|
|
$
|
7,681,550
|
|
Amortization of intangibles
|
$
|
1,426
|
|
|
$
|
1,568
|
|
|
$
|
4,278
|
|
|
$
|
4,740
|
|
Depreciation
|
$
|
2,060
|
|
|
$
|
1,706
|
|
|
$
|
6,040
|
|
|
$
|
5,080
|
|
(1)
|
Operating expense related to the Wealth Management and Trust segment includes
no
restructuring expense for the three and nine months ended
September 30, 2017
. There was
no
restructuring expense for the three months ended
September 30, 2016
and
$2.0 million
of restructuring expense for the nine months ended
September 30, 2016
.
|
|
Amortized
Cost
|
|
Unrealized
|
|
Fair
Value
|
||||||||||
Gains
|
|
Losses
|
|
||||||||||||
(In thousands)
|
|||||||||||||||
As of September 30, 2017
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities at fair value:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
35,129
|
|
|
$
|
24
|
|
|
$
|
(590
|
)
|
|
$
|
34,563
|
|
Government-sponsored entities
|
305,210
|
|
|
789
|
|
|
(1,143
|
)
|
|
304,856
|
|
||||
Municipal bonds
|
301,436
|
|
|
4,900
|
|
|
(1,829
|
)
|
|
304,507
|
|
||||
Mortgage-backed securities (1)
|
539,064
|
|
|
739
|
|
|
(10,180
|
)
|
|
529,623
|
|
||||
Other
|
15,796
|
|
|
485
|
|
|
(3
|
)
|
|
16,278
|
|
||||
Total
|
$
|
1,196,635
|
|
|
$
|
6,937
|
|
|
$
|
(13,745
|
)
|
|
$
|
1,189,827
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities at amortized cost:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
4,996
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,996
|
|
Mortgage-backed securities (1)
|
79,094
|
|
|
89
|
|
|
(301
|
)
|
|
78,882
|
|
||||
Total
|
$
|
84,090
|
|
|
$
|
89
|
|
|
$
|
(301
|
)
|
|
$
|
83,878
|
|
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities at fair value:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
40,704
|
|
|
$
|
86
|
|
|
$
|
(854
|
)
|
|
$
|
39,936
|
|
Government-sponsored entities
|
337,865
|
|
|
1,058
|
|
|
(2,259
|
)
|
|
336,664
|
|
||||
Municipal bonds
|
296,271
|
|
|
2,116
|
|
|
(4,990
|
)
|
|
293,397
|
|
||||
Mortgage-backed securities (1)
|
584,960
|
|
|
928
|
|
|
(15,561
|
)
|
|
570,327
|
|
||||
Other
|
23,361
|
|
|
447
|
|
|
—
|
|
|
23,808
|
|
||||
Total
|
$
|
1,283,161
|
|
|
$
|
4,635
|
|
|
$
|
(23,664
|
)
|
|
$
|
1,264,132
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities at amortized cost:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities (1)
|
$
|
93,079
|
|
|
$
|
1
|
|
|
$
|
(476
|
)
|
|
$
|
92,604
|
|
Total
|
$
|
93,079
|
|
|
$
|
1
|
|
|
$
|
(476
|
)
|
|
$
|
92,604
|
|
(1)
|
All mortgage-backed securities are guaranteed by U.S. government agencies or government-sponsored entities.
|
|
Available-for-sale Securities
|
||||||
Amortized
cost
|
|
Fair
value
|
|||||
(In thousands)
|
|||||||
Within one year
|
$
|
60,984
|
|
|
$
|
61,511
|
|
After one, but within five years
|
342,959
|
|
|
344,253
|
|
||
After five, but within ten years
|
321,379
|
|
|
315,209
|
|
||
Greater than ten years
|
471,313
|
|
|
468,854
|
|
||
Total
|
$
|
1,196,635
|
|
|
$
|
1,189,827
|
|
|
Held-to-maturity Securities
|
||||||
Amortized
cost
|
|
Fair
value
|
|||||
(In thousands)
|
|||||||
Within one year
|
$
|
4,996
|
|
|
$
|
4,996
|
|
After one, but within five years
|
—
|
|
|
—
|
|
||
After five, but within ten years
|
13,418
|
|
|
13,409
|
|
||
Greater than ten years
|
65,676
|
|
|
65,473
|
|
||
Total
|
$
|
84,090
|
|
|
$
|
83,878
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
(In thousands)
|
|||||||||||||||
Proceeds from sales and calls
|
$
|
16,207
|
|
|
$
|
12,829
|
|
|
$
|
119,238
|
|
|
$
|
41,961
|
|
Realized gains
|
235
|
|
|
273
|
|
|
509
|
|
|
520
|
|
||||
Realized losses
|
(5
|
)
|
|
—
|
|
|
(23
|
)
|
|
(1
|
)
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
|||||||||||||||||||||
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
|
# of
securities
|
|||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Available-for-sale securities
|
(In thousands)
|
|||||||||||||||||||||||||
U.S. government and agencies
|
$
|
14,883
|
|
|
$
|
(129
|
)
|
|
$
|
9,690
|
|
|
$
|
(461
|
)
|
|
$
|
24,573
|
|
|
$
|
(590
|
)
|
|
4
|
|
Government-sponsored entities
|
101,977
|
|
|
(818
|
)
|
|
10,351
|
|
|
(325
|
)
|
|
112,328
|
|
|
(1,143
|
)
|
|
16
|
|
||||||
Municipal bonds
|
42,281
|
|
|
(399
|
)
|
|
40,093
|
|
|
(1,430
|
)
|
|
82,374
|
|
|
(1,829
|
)
|
|
45
|
|
||||||
Mortgage-backed securities (1)
|
265,098
|
|
|
(3,376
|
)
|
|
219,521
|
|
|
(6,804
|
)
|
|
484,619
|
|
|
(10,180
|
)
|
|
99
|
|
||||||
Other
|
21
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
21
|
|
|
(3
|
)
|
|
2
|
|
||||||
Total
|
$
|
424,260
|
|
|
$
|
(4,725
|
)
|
|
$
|
279,655
|
|
|
$
|
(9,020
|
)
|
|
$
|
703,915
|
|
|
$
|
(13,745
|
)
|
|
166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Mortgage-backed securities (1)
|
$
|
54,384
|
|
|
$
|
(239
|
)
|
|
$
|
4,008
|
|
|
$
|
(62
|
)
|
|
$
|
58,392
|
|
|
$
|
(301
|
)
|
|
11
|
|
Total
|
$
|
54,384
|
|
|
$
|
(239
|
)
|
|
$
|
4,008
|
|
|
$
|
(62
|
)
|
|
$
|
58,392
|
|
|
$
|
(301
|
)
|
|
11
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
|||||||||||||||||||||
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
|
# of
securities
|
|||||||||||||
|
(In thousands, except number of securities)
|
|||||||||||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. government and agencies
|
$
|
19,094
|
|
|
$
|
(838
|
)
|
|
$
|
643
|
|
|
$
|
(16
|
)
|
|
$
|
19,737
|
|
|
$
|
(854
|
)
|
|
4
|
|
Government-sponsored entities
|
125,412
|
|
|
(2,259
|
)
|
|
—
|
|
|
—
|
|
|
125,412
|
|
|
(2,259
|
)
|
|
18
|
|
||||||
Municipal bonds
|
182,395
|
|
|
(4,957
|
)
|
|
2,720
|
|
|
(33
|
)
|
|
185,115
|
|
|
(4,990
|
)
|
|
109
|
|
||||||
Mortgage-backed securities (1)
|
492,008
|
|
|
(13,988
|
)
|
|
41,544
|
|
|
(1,573
|
)
|
|
533,552
|
|
|
(15,561
|
)
|
|
99
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
818,909
|
|
|
$
|
(22,042
|
)
|
|
$
|
44,907
|
|
|
$
|
(1,622
|
)
|
|
$
|
863,816
|
|
|
$
|
(23,664
|
)
|
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Mortgage-backed securities (1)
|
$
|
87,483
|
|
|
$
|
(476
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
87,483
|
|
|
$
|
(476
|
)
|
|
15
|
|
Total
|
$
|
87,483
|
|
|
$
|
(476
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
87,483
|
|
|
$
|
(476
|
)
|
|
15
|
|
(1)
|
All mortgage-backed securities are guaranteed by U.S. government agencies or government-sponsored entities.
|
|
As of September 30, 2017
|
|
Fair value measurements at reporting date using:
|
||||||||||||
Quoted prices in
active markets
for identical
assets (Level 1)
|
|
Significant
other
observable
inputs (Level 2)
|
|
Significant
unobservable
inputs (Level 3)
|
|||||||||||
(In thousands)
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
34,563
|
|
|
$
|
34,358
|
|
|
$
|
205
|
|
|
$
|
—
|
|
Government-sponsored entities
|
304,856
|
|
|
—
|
|
|
304,856
|
|
|
—
|
|
||||
Municipal bonds
|
304,507
|
|
|
—
|
|
|
304,507
|
|
|
—
|
|
||||
Mortgage-backed securities
|
529,623
|
|
|
—
|
|
|
529,623
|
|
|
—
|
|
||||
Other
|
16,278
|
|
|
16,278
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale securities
|
1,189,827
|
|
|
50,636
|
|
|
1,139,191
|
|
|
—
|
|
||||
Derivatives - interest rate customer swaps
|
15,314
|
|
|
—
|
|
|
15,314
|
|
|
—
|
|
||||
Derivatives - interest rate swaps
|
39
|
|
|
—
|
|
|
39
|
|
|
—
|
|
||||
Derivatives - risk participation agreement
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Other investments
|
6,857
|
|
|
6,857
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives - interest rate customer swaps
|
$
|
15,536
|
|
|
$
|
—
|
|
|
$
|
15,536
|
|
|
$
|
—
|
|
Derivatives - interest rate swaps
|
360
|
|
|
—
|
|
|
360
|
|
|
—
|
|
||||
Derivatives - risk participation agreement
|
137
|
|
|
—
|
|
|
137
|
|
|
—
|
|
||||
Other liabilities
|
6,857
|
|
|
6,857
|
|
|
—
|
|
|
—
|
|
|
|
|
Fair value measurements at reporting date using:
|
||||||||||||
As of December 31, 2016
|
|
Quoted prices in
active markets
for identical
assets (Level 1)
|
|
Significant
other
observable
inputs (Level 2)
|
|
Significant
unobservable
inputs (Level 3)
|
|||||||||
(In thousands)
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
39,936
|
|
|
$
|
39,293
|
|
|
$
|
643
|
|
|
$
|
—
|
|
Government-sponsored entities
|
336,664
|
|
|
—
|
|
|
336,664
|
|
|
—
|
|
||||
Municipal bonds
|
293,397
|
|
|
—
|
|
|
293,397
|
|
|
—
|
|
||||
Mortgage-backed securities
|
570,327
|
|
|
—
|
|
|
570,327
|
|
|
—
|
|
||||
Other
|
23,808
|
|
|
23,808
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale securities
|
1,264,132
|
|
|
63,101
|
|
|
1,201,031
|
|
|
—
|
|
||||
Derivatives - interest rate customer swaps
|
17,032
|
|
|
—
|
|
|
17,032
|
|
|
—
|
|
||||
Derivatives - risk participation agreement
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||
Other investments
|
6,110
|
|
|
6,110
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives - interest rate customer swaps
|
$
|
16,560
|
|
|
$
|
—
|
|
|
$
|
16,560
|
|
|
$
|
—
|
|
Derivatives - interest rate swaps
|
1,040
|
|
|
—
|
|
|
1,040
|
|
|
—
|
|
||||
Derivatives - risk participation agreement
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Other liabilities
|
6,110
|
|
|
6,110
|
|
|
—
|
|
|
—
|
|
|
As of September 30, 2017
|
|
Fair value measurements at reporting date using:
|
|
Gain (losses) from fair value changes
|
||||||||||||||||||
Quoted prices in
active markets
for identical
assets (Level 1)
|
|
Significant
other
observable
inputs (Level 2)
|
|
Significant
unobservable
inputs (Level 3)
|
|
Three months ended September 30, 2017
|
|
Nine months ended September 30, 2017
|
|||||||||||||||
(In thousands)
|
|||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired loans (1)
|
$
|
1,978
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,978
|
|
|
$
|
(255
|
)
|
|
$
|
(474
|
)
|
(1)
|
Collateral-dependent impaired loans held at
September 30, 2017
that had write-downs in fair value or whose specific reserve changed during the first
nine months
of
2017
.
|
|
As of September 30, 2016
|
|
Fair value measurements at reporting date using:
|
|
Gain (losses) from fair value changes
|
||||||||||||||||||
Quoted prices in
active markets
for identical
assets (Level 1)
|
|
Significant
other
observable
inputs (Level 2)
|
|
Significant
unobservable
inputs (Level 3)
|
|
Three months ended September 30, 2016
|
|
Nine months ended September 30, 2016
|
|||||||||||||||
(In thousands)
|
|||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired loans (1)
|
$
|
11,936
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,936
|
|
|
$
|
(418
|
)
|
|
$
|
(2,098
|
)
|
(1)
|
Collateral-dependent impaired loans held at
September 30, 2016
that had write-downs in fair value or whose specific reserve changed during the first
nine months
of
2016
.
|
|
As of September 30, 2017
|
||||||||||
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable
Input
|
|
Range of
Inputs
Utilized
|
|
Weighted
Average of
Inputs
Utilized
|
||
|
(In thousands)
|
|
|
||||||||
Impaired Loans
|
$
|
1,978
|
|
|
Appraisals of Collateral
|
|
Discount for costs to sell
|
|
0% - 7%
|
|
4%
|
Appraisal adjustments
|
|
0% - 51%
|
|
17%
|
|
As of September 30, 2016
|
||||||||||
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable
Input
|
|
Range of
Inputs
Utilized
|
|
Weighted
Average of
Inputs
Utilized
|
||
|
(In thousands)
|
|
|
||||||||
Impaired Loans
|
$
|
11,936
|
|
|
Appraisals of Collateral
|
|
Discount for costs to sell
|
|
5% - 78%
|
|
5%
|
Appraisal adjustments
|
|
0% - 20%
|
|
16%
|
|
As of September 30, 2017
|
||||||||||||||||||
Book Value
|
|
Fair Value
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Significant
other
observable
inputs (Level 2)
|
|
Significant
unobservable
inputs (Level 3)
|
|||||||||||
(In thousands)
|
|||||||||||||||||||
FINANCIAL ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
110,440
|
|
|
$
|
110,440
|
|
|
$
|
110,440
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities held-to-maturity
|
84,090
|
|
|
83,878
|
|
|
4,996
|
|
|
78,882
|
|
|
—
|
|
|||||
Loans held for sale
|
1,957
|
|
|
2,013
|
|
|
—
|
|
|
2,013
|
|
|
—
|
|
|||||
Loans, net
|
6,338,328
|
|
|
6,340,308
|
|
|
—
|
|
|
—
|
|
|
6,340,308
|
|
|||||
Other financial assets
|
96,097
|
|
|
96,097
|
|
|
—
|
|
|
96,097
|
|
|
—
|
|
|||||
FINANCIAL LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
6,262,347
|
|
|
6,262,234
|
|
|
—
|
|
|
6,262,234
|
|
|
—
|
|
|||||
Securities sold under agreements to repurchase
|
59,903
|
|
|
59,903
|
|
|
—
|
|
|
59,903
|
|
|
—
|
|
|||||
Federal funds purchased
|
70,000
|
|
|
70,000
|
|
|
—
|
|
|
70,000
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
812,773
|
|
|
813,535
|
|
|
—
|
|
|
813,535
|
|
|
—
|
|
|||||
Junior subordinated debentures
|
106,363
|
|
|
96,363
|
|
|
—
|
|
|
—
|
|
|
96,363
|
|
|||||
Other financial liabilities
|
2,684
|
|
|
2,684
|
|
|
—
|
|
|
2,684
|
|
|
—
|
|
|
As of December 31, 2016
|
||||||||||||||||||
Book Value
|
|
Fair Value
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Significant
other
observable
inputs (Level 2)
|
|
Significant
unobservable
inputs (Level 3)
|
|||||||||||
(In thousands)
|
|||||||||||||||||||
FINANCIAL ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
106,557
|
|
|
$
|
106,557
|
|
|
$
|
106,557
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities held-to-maturity
|
93,079
|
|
|
92,604
|
|
|
—
|
|
|
92,604
|
|
|
—
|
|
|||||
Loans held for sale
|
3,464
|
|
|
3,428
|
|
|
—
|
|
|
3,428
|
|
|
—
|
|
|||||
Loans, net
|
6,036,277
|
|
|
6,021,611
|
|
|
—
|
|
|
—
|
|
|
6,021,611
|
|
|||||
Other financial assets
|
77,956
|
|
|
77,956
|
|
|
—
|
|
|
77,956
|
|
|
—
|
|
|||||
FINANCIAL LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
6,085,146
|
|
|
6,084,765
|
|
|
—
|
|
|
6,084,765
|
|
|
—
|
|
|||||
Securities sold under agreements to repurchase
|
59,624
|
|
|
59,624
|
|
|
—
|
|
|
59,624
|
|
|
—
|
|
|||||
Federal funds purchased
|
80,000
|
|
|
80,000
|
|
|
—
|
|
|
80,000
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
734,205
|
|
|
734,941
|
|
|
—
|
|
|
734,941
|
|
|
—
|
|
|||||
Junior subordinated debentures
|
106,363
|
|
|
96,363
|
|
|
—
|
|
|
—
|
|
|
96,363
|
|
|||||
Other financial liabilities
|
1,942
|
|
|
1,942
|
|
|
—
|
|
|
1,942
|
|
|
—
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
(In thousands)
|
||||||
Commercial and industrial
|
$
|
618,256
|
|
|
$
|
611,370
|
|
Commercial tax exempt
|
431,350
|
|
|
398,604
|
|
||
Total commercial and industrial
|
1,049,606
|
|
|
1,009,974
|
|
||
Commercial real estate
|
2,363,159
|
|
|
2,302,244
|
|
||
Construction and land
|
118,291
|
|
|
104,839
|
|
||
Residential
|
2,600,788
|
|
|
2,379,861
|
|
||
Home equity
|
107,227
|
|
|
118,817
|
|
||
Consumer and other
|
174,130
|
|
|
198,619
|
|
||
Total
|
$
|
6,413,201
|
|
|
$
|
6,114,354
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
(In thousands)
|
||||||
Commercial and industrial
|
$
|
968
|
|
|
$
|
572
|
|
Commercial tax exempt
|
—
|
|
|
—
|
|
||
Total commercial and industrial
|
968
|
|
|
572
|
|
||
Commercial real estate
|
2,601
|
|
|
4,583
|
|
||
Construction and land
|
206
|
|
|
179
|
|
||
Residential
|
8,765
|
|
|
10,908
|
|
||
Home equity
|
1,062
|
|
|
1,072
|
|
||
Consumer and other
|
21
|
|
|
1
|
|
||
Total
|
$
|
13,623
|
|
|
$
|
17,315
|
|
|
September 30, 2017
|
||||||||||||||||||||||||||||||||||
|
Accruing Past Due
|
|
Nonaccrual Loans
|
|
|
|
|
||||||||||||||||||||||||||||
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
Total Accruing Past Due
|
|
Current
|
|
30-89 Days Past Due
|
|
90 Days or
Greater
Past Due
|
|
Total Non-Accrual Loans
|
|
Current Accruing Loans
|
|
Total
Loans
Receivable
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
Commercial and industrial
|
$
|
945
|
|
|
$
|
14
|
|
|
$
|
959
|
|
|
$
|
400
|
|
|
$
|
350
|
|
|
$
|
218
|
|
|
$
|
968
|
|
|
$
|
616,329
|
|
|
$
|
618,256
|
|
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
431,350
|
|
|
431,350
|
|
|||||||||
Commercial real estate
|
663
|
|
|
244
|
|
|
907
|
|
|
670
|
|
|
—
|
|
|
1,931
|
|
|
2,601
|
|
|
2,359,651
|
|
|
2,363,159
|
|
|||||||||
Construction and land
|
413
|
|
|
—
|
|
|
413
|
|
|
59
|
|
|
4
|
|
|
143
|
|
|
206
|
|
|
117,672
|
|
|
118,291
|
|
|||||||||
Residential
|
—
|
|
|
226
|
|
|
226
|
|
|
5,063
|
|
|
152
|
|
|
3,550
|
|
|
8,765
|
|
|
2,591,797
|
|
|
2,600,788
|
|
|||||||||
Home equity
|
402
|
|
|
1,800
|
|
|
2,202
|
|
|
72
|
|
|
—
|
|
|
990
|
|
|
1,062
|
|
|
103,963
|
|
|
107,227
|
|
|||||||||
Consumer and other
|
568
|
|
|
17
|
|
|
585
|
|
|
13
|
|
|
—
|
|
|
8
|
|
|
21
|
|
|
173,524
|
|
|
174,130
|
|
|||||||||
Total
|
$
|
2,991
|
|
|
$
|
2,301
|
|
|
$
|
5,292
|
|
|
$
|
6,277
|
|
|
$
|
506
|
|
|
$
|
6,840
|
|
|
$
|
13,623
|
|
|
$
|
6,394,286
|
|
|
$
|
6,413,201
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||||||
|
Accruing Past Due
|
|
Nonaccrual Loans
|
|
|
|
|
||||||||||||||||||||||||||||
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
Total Accruing Past Due
|
|
Current
|
|
30-89 Days Past Due
|
|
90 Days or Greater Past Due
|
|
Total Non-Accrual Loans
|
|
Current Accruing Loans
|
|
Total Loans Receivable
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
Commercial and industrial
|
$
|
541
|
|
|
$
|
1,078
|
|
|
$
|
1,619
|
|
|
$
|
537
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
572
|
|
|
$
|
609,179
|
|
|
$
|
611,370
|
|
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
398,604
|
|
|
398,604
|
|
|||||||||
Commercial real estate
|
3,096
|
|
|
—
|
|
|
3,096
|
|
|
2,311
|
|
|
835
|
|
|
1,437
|
|
|
4,583
|
|
|
2,294,565
|
|
|
2,302,244
|
|
|||||||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
129
|
|
|
12
|
|
|
38
|
|
|
179
|
|
|
104,660
|
|
|
104,839
|
|
|||||||||
Residential
|
3,646
|
|
|
536
|
|
|
4,182
|
|
|
2,148
|
|
|
1,274
|
|
|
7,486
|
|
|
10,908
|
|
|
2,364,771
|
|
|
2,379,861
|
|
|||||||||
Home equity
|
245
|
|
|
—
|
|
|
245
|
|
|
—
|
|
|
80
|
|
|
992
|
|
|
1,072
|
|
|
117,500
|
|
|
118,817
|
|
|||||||||
Consumer and other
|
5,995
|
|
|
—
|
|
|
5,995
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
192,623
|
|
|
198,619
|
|
|||||||||
Total
|
$
|
13,523
|
|
|
$
|
1,614
|
|
|
$
|
15,137
|
|
|
$
|
5,126
|
|
|
$
|
2,201
|
|
|
$
|
9,988
|
|
|
$
|
17,315
|
|
|
$
|
6,081,902
|
|
|
$
|
6,114,354
|
|
|
September 30, 2017
|
||||||||||||||||||
|
By Loan Grade or Nonaccrual Status
|
|
|
||||||||||||||||
|
Pass
|
|
Special Mention
|
|
Accruing Substandard
|
|
Nonaccrual Loans
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Commercial and industrial
|
$
|
598,691
|
|
|
$
|
10,459
|
|
|
$
|
8,138
|
|
|
$
|
968
|
|
|
$
|
618,256
|
|
Commercial tax exempt
|
425,759
|
|
|
5,591
|
|
|
—
|
|
|
—
|
|
|
431,350
|
|
|||||
Commercial real estate
|
2,265,871
|
|
|
57,381
|
|
|
37,306
|
|
|
2,601
|
|
|
2,363,159
|
|
|||||
Construction and land
|
106,154
|
|
|
5,243
|
|
|
6,688
|
|
|
206
|
|
|
118,291
|
|
|||||
Residential
|
2,590,665
|
|
|
—
|
|
|
1,358
|
|
|
8,765
|
|
|
2,600,788
|
|
|||||
Home equity
|
106,165
|
|
|
—
|
|
|
—
|
|
|
1,062
|
|
|
107,227
|
|
|||||
Consumer and other
|
173,858
|
|
|
—
|
|
|
251
|
|
|
21
|
|
|
174,130
|
|
|||||
Total
|
$
|
6,267,163
|
|
|
$
|
78,674
|
|
|
$
|
53,741
|
|
|
$
|
13,623
|
|
|
$
|
6,413,201
|
|
|
December 31, 2016
|
||||||||||||||||||
|
By Loan Grade or Nonaccrual Status
|
|
|
||||||||||||||||
|
Pass
|
|
Special Mention
|
|
Accruing Substandard
|
|
Nonaccrual Loans
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Commercial and industrial
|
$
|
591,388
|
|
|
$
|
10,133
|
|
|
$
|
9,277
|
|
|
$
|
572
|
|
|
$
|
611,370
|
|
Commercial tax exempt
|
388,544
|
|
|
10,060
|
|
|
—
|
|
|
—
|
|
|
398,604
|
|
|||||
Commercial real estate
|
2,230,732
|
|
|
17,233
|
|
|
49,696
|
|
|
4,583
|
|
|
2,302,244
|
|
|||||
Construction and land
|
101,254
|
|
|
109
|
|
|
3,297
|
|
|
179
|
|
|
104,839
|
|
|||||
Residential
|
2,367,554
|
|
|
—
|
|
|
1,399
|
|
|
10,908
|
|
|
2,379,861
|
|
|||||
Home equity
|
117,745
|
|
|
—
|
|
|
—
|
|
|
1,072
|
|
|
118,817
|
|
|||||
Consumer and other
|
198,616
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
198,619
|
|
|||||
Total
|
$
|
5,995,833
|
|
|
$
|
37,535
|
|
|
$
|
63,671
|
|
|
$
|
17,315
|
|
|
$
|
6,114,354
|
|
|
As of and for the three and nine months ended September 30, 2017
|
||||||||||||||||||||||||||
|
Recorded Investment (1)
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
QTD Average Recorded Investment
|
|
YTD Average Recorded Investment
|
|
QTD Interest Income Recognized while Impaired
|
|
YTD Interest Income Recognized while Impaired
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
1,371
|
|
|
$
|
1,988
|
|
|
n/a
|
|
$
|
1,626
|
|
|
$
|
1,665
|
|
|
$
|
18
|
|
|
$
|
43
|
|
||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
1,301
|
|
|
—
|
|
|
80
|
|
||||||||
Commercial real estate
|
2,463
|
|
|
5,972
|
|
|
n/a
|
|
2,690
|
|
|
3,465
|
|
|
107
|
|
|
1,077
|
|
||||||||
Construction and land
|
207
|
|
|
241
|
|
|
n/a
|
|
218
|
|
|
191
|
|
|
—
|
|
|
—
|
|
||||||||
Residential
|
8,859
|
|
|
9,231
|
|
|
n/a
|
|
9,069
|
|
|
8,938
|
|
|
98
|
|
|
277
|
|
||||||||
Home equity
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer and other
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Subtotal
|
12,900
|
|
|
17,432
|
|
|
n/a
|
|
13,603
|
|
|
15,560
|
|
|
223
|
|
|
1,477
|
|
||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
598
|
|
|
598
|
|
|
$
|
242
|
|
|
149
|
|
|
60
|
|
|
1
|
|
|
1
|
|
||||||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial real estate
|
6,911
|
|
|
7,341
|
|
|
415
|
|
|
6,955
|
|
|
7,012
|
|
|
76
|
|
|
247
|
|
|||||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential
|
1,200
|
|
|
1,200
|
|
|
127
|
|
|
2,175
|
|
|
2,938
|
|
|
18
|
|
|
80
|
|
|||||||
Home equity
|
36
|
|
|
36
|
|
|
21
|
|
|
36
|
|
|
37
|
|
|
—
|
|
|
1
|
|
|||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
8,745
|
|
|
9,175
|
|
|
805
|
|
|
9,315
|
|
|
10,047
|
|
|
95
|
|
|
329
|
|
|||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
1,969
|
|
|
2,586
|
|
|
242
|
|
|
1,775
|
|
|
1,725
|
|
|
19
|
|
|
44
|
|
|||||||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,301
|
|
|
—
|
|
|
80
|
|
|||||||
Commercial real estate
|
9,374
|
|
|
13,313
|
|
|
415
|
|
|
9,645
|
|
|
10,477
|
|
|
183
|
|
|
1,324
|
|
|||||||
Construction and land
|
207
|
|
|
241
|
|
|
—
|
|
|
218
|
|
|
191
|
|
|
—
|
|
|
—
|
|
|||||||
Residential
|
10,059
|
|
|
10,431
|
|
|
127
|
|
|
11,244
|
|
|
11,876
|
|
|
116
|
|
|
357
|
|
|||||||
Home equity
|
36
|
|
|
36
|
|
|
21
|
|
|
36
|
|
|
37
|
|
|
—
|
|
|
1
|
|
|||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
$
|
21,645
|
|
|
$
|
26,607
|
|
|
$
|
805
|
|
|
$
|
22,918
|
|
|
$
|
25,607
|
|
|
$
|
318
|
|
|
$
|
1,806
|
|
(1)
|
Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, which was applied to principal.
|
|
As of and for the three and nine months ended September 30, 2016
|
||||||||||||||||||||||||||
|
Recorded Investment (1)
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
QTD Average Recorded Investment
|
|
YTD Average Recorded Investment
|
|
QTD Interest Income Recognized while Impaired
|
|
YTD Interest Income Recognized while Impaired
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
11,742
|
|
|
$
|
13,874
|
|
|
n/a
|
|
$
|
10,774
|
|
|
$
|
6,325
|
|
|
$
|
98
|
|
|
$
|
169
|
|
||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial real estate
|
5,966
|
|
|
11,148
|
|
|
n/a
|
|
7,288
|
|
|
9,672
|
|
|
332
|
|
|
874
|
|
||||||||
Construction and land
|
224
|
|
|
548
|
|
|
n/a
|
|
400
|
|
|
1,332
|
|
|
48
|
|
|
48
|
|
||||||||
Residential
|
6,472
|
|
|
6,832
|
|
|
n/a
|
|
7,345
|
|
|
7,345
|
|
|
59
|
|
|
173
|
|
||||||||
Home equity
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer and other
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Subtotal
|
24,404
|
|
|
32,402
|
|
|
n/a
|
|
25,807
|
|
|
24,674
|
|
|
537
|
|
|
1,264
|
|
||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
37
|
|
|
37
|
|
|
$
|
22
|
|
|
37
|
|
|
33
|
|
|
—
|
|
|
1
|
|
||||||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial real estate
|
7,164
|
|
|
7,593
|
|
|
593
|
|
|
7,194
|
|
|
7,259
|
|
|
79
|
|
|
237
|
|
|||||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
660
|
|
|
—
|
|
|
—
|
|
|||||||
Residential
|
6,877
|
|
|
6,877
|
|
|
701
|
|
|
5,977
|
|
|
5,994
|
|
|
36
|
|
|
115
|
|
|||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
14,078
|
|
|
14,507
|
|
|
1,316
|
|
|
13,208
|
|
|
13,946
|
|
|
115
|
|
|
353
|
|
|||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
11,779
|
|
|
13,911
|
|
|
22
|
|
|
10,811
|
|
|
6,358
|
|
|
98
|
|
|
170
|
|
|||||||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial real estate
|
13,130
|
|
|
18,741
|
|
|
593
|
|
|
14,482
|
|
|
16,931
|
|
|
411
|
|
|
1,111
|
|
|||||||
Construction and land
|
224
|
|
|
548
|
|
|
—
|
|
|
400
|
|
|
1,992
|
|
|
48
|
|
|
48
|
|
|||||||
Residential
|
13,349
|
|
|
13,709
|
|
|
701
|
|
|
13,322
|
|
|
13,339
|
|
|
95
|
|
|
288
|
|
|||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
$
|
38,482
|
|
|
$
|
46,909
|
|
|
$
|
1,316
|
|
|
$
|
39,015
|
|
|
$
|
38,620
|
|
|
$
|
652
|
|
|
$
|
1,617
|
|
(1)
|
Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, which was applied to principal.
|
|
As of and for the year ended December 31, 2016
|
||||||||||||||||||
|
Recorded Investment (1)
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
Average Recorded Investment
|
|
Interest Income Recognized while Impaired
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
1,793
|
|
|
$
|
2,155
|
|
|
n/a
|
|
$
|
5,288
|
|
|
$
|
249
|
|
||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate
|
4,488
|
|
|
9,647
|
|
|
n/a
|
|
8,520
|
|
|
1,032
|
|
||||||
Construction and land
|
179
|
|
|
507
|
|
|
n/a
|
|
1,069
|
|
|
48
|
|
||||||
Residential
|
8,134
|
|
|
8,506
|
|
|
n/a
|
|
7,446
|
|
|
211
|
|
||||||
Home equity
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
||||||
Consumer and other
|
—
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
||||||
Subtotal
|
14,594
|
|
|
20,815
|
|
|
n/a
|
|
22,323
|
|
|
1,540
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
31
|
|
|
1
|
|
||||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate
|
7,115
|
|
|
7,544
|
|
|
548
|
|
|
7,230
|
|
|
314
|
|
|||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
507
|
|
|
—
|
|
|||||
Residential
|
4,284
|
|
|
4,284
|
|
|
565
|
|
|
5,505
|
|
|
143
|
|
|||||
Home equity
|
37
|
|
|
37
|
|
|
22
|
|
|
3
|
|
|
—
|
|
|||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subtotal
|
11,436
|
|
|
11,865
|
|
|
1,135
|
|
|
13,276
|
|
|
458
|
|
|||||
Total:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
1,793
|
|
|
2,155
|
|
|
—
|
|
|
5,319
|
|
|
250
|
|
|||||
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate
|
11,603
|
|
|
17,191
|
|
|
548
|
|
|
15,750
|
|
|
1,346
|
|
|||||
Construction and land
|
179
|
|
|
507
|
|
|
—
|
|
|
1,576
|
|
|
48
|
|
|||||
Residential
|
12,418
|
|
|
12,790
|
|
|
565
|
|
|
12,951
|
|
|
354
|
|
|||||
Home equity
|
37
|
|
|
37
|
|
|
22
|
|
|
3
|
|
|
—
|
|
|||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
26,030
|
|
|
$
|
32,680
|
|
|
$
|
1,135
|
|
|
$
|
35,599
|
|
|
$
|
1,998
|
|
(1)
|
Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, which was applied to principal.
|
|
As of and for the three and nine months ended September 30, 2017
|
||||||||||||||||
|
Restructured in the current
quarter and year to date
|
|
TDRs that defaulted
that were restructured in prior twelve months |
||||||||||||||
|
# of
Loans
|
|
Pre-
modification
recorded
investment
|
|
Post-
modification
recorded
investment
|
|
# of
Loans
|
|
Post-
modification
recorded
investment
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||||
Commercial and industrial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential (1)
|
1
|
|
|
108
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
1
|
|
|
$
|
108
|
|
|
$
|
109
|
|
|
—
|
|
|
$
|
—
|
|
(1)
|
Represents the following concession: temporary rate reduction.
|
|
As of and for the three months ended September 30, 2016
|
||||||||||||||||
|
Restructured in the current quarter
|
|
TDRs that defaulted
that were
restructured in prior twelve months
|
||||||||||||||
|
# of
Loans
|
|
Pre-
modification
recorded
investment
|
|
Post-
modification
recorded
investment
|
|
# of
Loans
|
|
Post-
modification
recorded
investment
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||||
Commercial and industrial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1,276
|
|
|||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
1,276
|
|
|
As of and for the nine months ended September 30, 2016
|
||||||||||||||||
|
Restructured in the current year to date
|
|
TDRs that defaulted
that were
restructured in prior twelve months
|
||||||||||||||
|
# of
Loans
|
|
Pre-
modification
recorded
investment
|
|
Post-
modification
recorded
investment
|
|
# of
Loans
|
|
Post-
modification
recorded
investment
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||||
Commercial and industrial
|
3
|
|
|
$
|
7,384
|
|
|
$
|
7,209
|
|
|
—
|
|
|
$
|
—
|
|
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
1
|
|
|
1,276
|
|
|
1,276
|
|
|
1
|
|
|
1,276
|
|
|||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
2
|
|
|
260
|
|
|
261
|
|
|
—
|
|
|
—
|
|
|||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
6
|
|
|
$
|
8,920
|
|
|
$
|
8,746
|
|
|
1
|
|
|
$
|
1,276
|
|
|
As of and for the nine months ended September 30, 2016
|
|||||||||||||||||||||||||||||||||
|
Extension of term
|
|
Temporary rate reduction
|
|
Payment deferral
|
|
Combination of concessions (1)
|
|
Total concessions
|
|||||||||||||||||||||||||
|
# of
Loans |
|
Post-
modifi-
cation
recorded invest-
ment
|
|
# of
Loans |
|
Post-
modifi- cation recorded invest- ment |
|
# of
Loans |
|
Post-
modifi- cation recorded invest- ment |
|
# of
Loans |
|
Post-
modifi- cation recorded invest- ment |
|
# of
Loans |
|
Post-
modifi- cation recorded invest- ment |
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Commercial and industrial
|
2
|
|
|
$
|
7,209
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
7,209
|
|
Commercial tax exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1,276
|
|
|
1
|
|
|
1,276
|
|
|||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
—
|
|
|
—
|
|
|
2
|
|
|
261
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
261
|
|
|||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
Combination of concessions includes loans that have had more than one modification, including extension of term, temporary reduction of interest rate, and/or payment deferral.
|
|
As of and for the three months ended September 30,
|
|
As of and for the nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In thousands)
|
||||||||||||||
Allowance for loan losses, beginning of period:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
11,672
|
|
|
$
|
13,246
|
|
|
$
|
12,751
|
|
|
$
|
15,814
|
|
Commercial real estate
|
48,136
|
|
|
45,507
|
|
|
50,412
|
|
|
44,215
|
|
||||
Construction and land
|
3,585
|
|
|
4,740
|
|
|
3,039
|
|
|
6,322
|
|
||||
Residential
|
10,282
|
|
|
10,752
|
|
|
10,449
|
|
|
10,544
|
|
||||
Home equity
|
929
|
|
|
1,139
|
|
|
1,035
|
|
|
1,085
|
|
||||
Consumer and other
|
405
|
|
|
369
|
|
|
391
|
|
|
520
|
|
||||
Total allowance for loan losses, beginning of period
|
75,009
|
|
|
75,753
|
|
|
78,077
|
|
|
78,500
|
|
||||
Loans charged-off:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
—
|
|
|
(285
|
)
|
|
(218
|
)
|
|
(2,393
|
)
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
(400
|
)
|
||||
Residential
|
—
|
|
|
—
|
|
|
(58
|
)
|
|
(501
|
)
|
||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and other
|
(38
|
)
|
|
(52
|
)
|
|
(283
|
)
|
|
(78
|
)
|
||||
Total charge-offs
|
(38
|
)
|
|
(337
|
)
|
|
(559
|
)
|
|
(3,372
|
)
|
|
As of and for the three months ended September 30,
|
|
As of and for the nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In thousands)
|
||||||||||||||
Recoveries on loans previously charged-off:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
241
|
|
|
81
|
|
|
395
|
|
|
1,457
|
|
||||
Commercial real estate
|
76
|
|
|
1,767
|
|
|
3,605
|
|
|
5,709
|
|
||||
Construction and land
|
13
|
|
|
490
|
|
|
13
|
|
|
1,117
|
|
||||
Residential
|
—
|
|
|
49
|
|
|
47
|
|
|
53
|
|
||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and other
|
4
|
|
|
4
|
|
|
22
|
|
|
11
|
|
||||
Total recoveries
|
334
|
|
|
2,391
|
|
|
4,082
|
|
|
8,347
|
|
||||
Provision/ (credit) for loan losses:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
973
|
|
|
859
|
|
|
(42
|
)
|
|
(977
|
)
|
||||
Commercial real estate
|
(1,173
|
)
|
|
1,038
|
|
|
(6,978
|
)
|
|
(1,612
|
)
|
||||
Construction and land
|
182
|
|
|
(2,086
|
)
|
|
728
|
|
|
(3,895
|
)
|
||||
Residential
|
(431
|
)
|
|
103
|
|
|
(587
|
)
|
|
808
|
|
||||
Home equity
|
(15
|
)
|
|
(62
|
)
|
|
(121
|
)
|
|
(8
|
)
|
||||
Consumer and other
|
32
|
|
|
10
|
|
|
273
|
|
|
(122
|
)
|
||||
Total provision/(credit) for loan losses
|
(432
|
)
|
|
(138
|
)
|
|
(6,727
|
)
|
|
(5,806
|
)
|
||||
Allowance for loan losses at end of period:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
12,886
|
|
|
13,901
|
|
|
12,886
|
|
|
13,901
|
|
||||
Commercial real estate
|
47,039
|
|
|
48,312
|
|
|
47,039
|
|
|
48,312
|
|
||||
Construction and land
|
3,780
|
|
|
3,144
|
|
|
3,780
|
|
|
3,144
|
|
||||
Residential
|
9,851
|
|
|
10,904
|
|
|
9,851
|
|
|
10,904
|
|
||||
Home equity
|
914
|
|
|
1,077
|
|
|
914
|
|
|
1,077
|
|
||||
Consumer and other
|
403
|
|
|
331
|
|
|
403
|
|
|
331
|
|
||||
Total allowance for loan losses at end of period
|
$
|
74,873
|
|
|
$
|
77,669
|
|
|
$
|
74,873
|
|
|
$
|
77,669
|
|
|
September 30, 2017
|
||||||||||||||||||||||
|
Individually Evaluated
for Impairment
|
|
Collectively Evaluated
for Impairment
|
|
Total
|
||||||||||||||||||
|
Recorded investment
(loan balance)
|
|
Allowance for loan losses
|
|
Recorded investment
(loan balance)
|
|
Allowance for loan losses
|
|
Recorded investment
(loan balance)
|
|
Allowance for loan losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
1,969
|
|
|
$
|
242
|
|
|
$
|
1,047,637
|
|
|
$
|
12,644
|
|
|
$
|
1,049,606
|
|
|
$
|
12,886
|
|
Commercial real estate
|
9,374
|
|
|
415
|
|
|
2,353,785
|
|
|
46,624
|
|
|
2,363,159
|
|
|
47,039
|
|
||||||
Construction and land
|
207
|
|
|
—
|
|
|
118,084
|
|
|
3,780
|
|
|
118,291
|
|
|
3,780
|
|
||||||
Residential
|
10,059
|
|
|
127
|
|
|
2,590,729
|
|
|
9,724
|
|
|
2,600,788
|
|
|
9,851
|
|
||||||
Home equity
|
36
|
|
|
21
|
|
|
107,191
|
|
|
893
|
|
|
107,227
|
|
|
914
|
|
||||||
Consumer
|
—
|
|
|
|
|
|
174,130
|
|
|
403
|
|
|
174,130
|
|
|
403
|
|
||||||
Total
|
$
|
21,645
|
|
|
$
|
805
|
|
|
$
|
6,391,556
|
|
|
$
|
74,068
|
|
|
$
|
6,413,201
|
|
|
$
|
74,873
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Individually Evaluated
for Impairment
|
|
Collectively Evaluated
for Impairment
|
|
Total
|
||||||||||||||||||
|
Recorded investment
(loan balance)
|
|
Allowance for loan losses
|
|
Recorded investment
(loan balance)
|
|
Allowance for loan losses
|
|
Recorded investment
(loan balance)
|
|
Allowance for loan losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
1,793
|
|
|
$
|
—
|
|
|
$
|
1,008,181
|
|
|
$
|
12,751
|
|
|
$
|
1,009,974
|
|
|
$
|
12,751
|
|
Commercial real estate
|
11,603
|
|
|
548
|
|
|
2,290,641
|
|
|
49,864
|
|
|
2,302,244
|
|
|
50,412
|
|
||||||
Construction and land
|
179
|
|
|
—
|
|
|
104,660
|
|
|
3,039
|
|
|
104,839
|
|
|
3,039
|
|
||||||
Residential
|
12,418
|
|
|
565
|
|
|
2,367,443
|
|
|
9,884
|
|
|
2,379,861
|
|
|
10,449
|
|
||||||
Home equity
|
37
|
|
|
22
|
|
|
118,780
|
|
|
1,013
|
|
|
118,817
|
|
|
1,035
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
198,619
|
|
|
391
|
|
|
198,619
|
|
|
391
|
|
||||||
Total
|
$
|
26,030
|
|
|
$
|
1,135
|
|
|
$
|
6,088,324
|
|
|
$
|
76,942
|
|
|
$
|
6,114,354
|
|
|
$
|
78,077
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Asset derivatives
|
|
Liability derivatives
|
|
Asset derivatives
|
|
Liability derivatives
|
||||||||||||||||
|
Balance
sheet
location
|
|
Fair value (1)
|
|
Balance
sheet
location
|
|
Fair value (1)
|
|
Balance
sheet
location
|
|
Fair value (1)
|
|
Balance
sheet
location
|
|
Fair value (1)
|
||||||||
|
(In thousands)
|
||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate products
|
Other
assets
|
|
$
|
39
|
|
|
Other
liabilities
|
|
$
|
(360
|
)
|
|
Other
assets
|
|
$
|
—
|
|
|
Other
liabilities
|
|
$
|
(1,040
|
)
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate products
|
Other
assets
|
|
15,314
|
|
|
Other
liabilities
|
|
(15,536
|
)
|
|
Other
assets
|
|
17,032
|
|
|
Other
liabilities
|
|
(16,560
|
)
|
||||
Risk participation agreements
|
Other
assets
|
|
1
|
|
|
Other
liabilities
|
|
(137
|
)
|
|
Other
assets
|
|
15
|
|
|
Other
liabilities
|
|
(6
|
)
|
||||
Total
|
|
|
$
|
15,354
|
|
|
|
|
$
|
(16,033
|
)
|
|
|
|
$
|
17,047
|
|
|
|
|
$
|
(17,606
|
)
|
(1)
|
For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements-Note 5: Fair Value Measurements.”
|
Derivatives in cash
flow hedging
relationships
|
|
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) (1)
|
|
Location of gain or (loss) reclassified from accumulated OCI into income (effective portion)
|
|
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion)
|
||||||||||||
|
Three months ended September 30,
|
|
|
Three months ended September 30,
|
||||||||||||||
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
||||||||||
(In thousands)
|
||||||||||||||||||
Interest rate products
|
|
$
|
121
|
|
|
$
|
663
|
|
|
Interest expense
|
|
$
|
(293
|
)
|
|
$
|
(405
|
)
|
Total
|
|
$
|
121
|
|
|
$
|
663
|
|
|
|
|
$
|
(293
|
)
|
|
$
|
(405
|
)
|
(1)
|
There was an additional
$(1) thousand
loss related to the ineffective portion for the three months ended as of
September 30, 2017
and a
$(19) thousand
loss related to the ineffective portion for the three months ended as of
September 30, 2016
.
|
Derivatives in cash
flow hedging
relationships
|
|
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) (1)
|
|
Location of gain or (loss) reclassified from accumulated OCI into income (effective portion)
|
|
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion)
|
||||||||||||
|
Nine months ended September 30,
|
|
|
Nine months ended September 30,
|
||||||||||||||
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
||||||||||
(In thousands)
|
||||||||||||||||||
Interest rate products
|
|
$
|
(237
|
)
|
|
$
|
(1,928
|
)
|
|
Interest expense
|
|
$
|
(953
|
)
|
|
$
|
(1,319
|
)
|
Total
|
|
$
|
(237
|
)
|
|
$
|
(1,928
|
)
|
|
|
|
$
|
(953
|
)
|
|
$
|
(1,319
|
)
|
(1)
|
There was an additional
$(3) thousand
loss related to the ineffective portion for the nine months ended as of
September 30, 2017
and a
$26 thousand
gain related to the ineffective portion for the nine months ended as of
September 30, 2016
.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In thousands)
|
||||||||||||||
Accumulated other comprehensive income/ (loss) on cash flow hedges, balance at beginning of period
|
$
|
(429
|
)
|
|
$
|
(2,109
|
)
|
|
$
|
(605
|
)
|
|
$
|
(1,123
|
)
|
Net change in unrealized gain/ (loss) on cash flow hedges
|
242
|
|
|
628
|
|
|
418
|
|
|
(358
|
)
|
||||
Accumulated other comprehensive income/ (loss) on cash flow hedges, balance at end of period
|
$
|
(187
|
)
|
|
$
|
(1,481
|
)
|
|
$
|
(187
|
)
|
|
$
|
(1,481
|
)
|
|
|
|
|
Amount of gain or (loss), net, recognized in income on derivatives
|
||||||||||||||
Derivatives not designated as
hedging instruments
|
|
Location of gain or (loss) recognized in income on derivatives
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||
|
|
|
|
(In thousands)
|
||||||||||||||
Interest rate products
|
|
Other income/ (expense)
|
|
$
|
(49
|
)
|
|
$
|
1,224
|
|
|
$
|
(695
|
)
|
|
$
|
(935
|
)
|
Risk participation agreements
|
|
Other income/ (expense)
|
|
5
|
|
|
(7
|
)
|
|
325
|
|
|
6
|
|
||||
Total
|
|
|
|
$
|
(44
|
)
|
|
$
|
1,217
|
|
|
$
|
(370
|
)
|
|
$
|
(929
|
)
|
|
Nine months ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(In thousands)
|
||||||
Income from continuing operations:
|
|
|
|
||||
Income before income taxes
|
$
|
82,985
|
|
|
$
|
76,444
|
|
Income tax expense
|
24,805
|
|
|
23,716
|
|
||
Net income from continuing operations
|
$
|
58,180
|
|
|
$
|
52,728
|
|
Effective tax rate, continuing operations
|
29.9
|
%
|
|
31.0
|
%
|
||
|
|
|
|
||||
Income from discontinued operations:
|
|
|
|
||||
Income before income taxes
|
$
|
6,631
|
|
|
$
|
7,432
|
|
Income tax expense
|
2,750
|
|
|
3,075
|
|
||
Net income from discontinued operations
|
$
|
3,881
|
|
|
$
|
4,357
|
|
Effective tax rate, discontinued operations
|
41.5
|
%
|
|
41.4
|
%
|
||
|
|
|
|
||||
Less: Income attributable to noncontrolling interests:
|
|
|
|
||||
Income before income taxes
|
$
|
3,190
|
|
|
$
|
3,010
|
|
Income tax expense
|
—
|
|
|
—
|
|
||
Net income attributable to noncontrolling interests
|
$
|
3,190
|
|
|
$
|
3,010
|
|
Effective tax rate, noncontrolling interests
|
—
|
%
|
|
—
|
%
|
||
|
|
|
|
||||
Income attributable to the Company
|
|
|
|
||||
Income before income taxes
|
$
|
86,426
|
|
|
$
|
80,866
|
|
Income tax expense
|
27,555
|
|
|
26,791
|
|
||
Net income attributable to the Company
|
$
|
58,871
|
|
|
$
|
54,075
|
|
Effective tax rate attributable to the Company
|
31.9
|
%
|
|
33.1
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
(In thousands)
|
||||||
Anchor
|
$
|
9,644
|
|
|
$
|
10,934
|
|
BOS
|
7,330
|
|
|
6,782
|
|
||
DGHM (1)
|
3,700
|
|
|
3,417
|
|
||
Total
|
$
|
20,674
|
|
|
$
|
21,133
|
|
Redeemable noncontrolling interests
|
$
|
15,882
|
|
|
$
|
16,972
|
|
Noncontrolling interests
|
$
|
4,792
|
|
|
$
|
4,161
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
September 30, 2017
|
|
September 30, 2017
|
||||||||||||
|
Redeemable noncontrolling interests
|
|
Noncontrolling interests
|
|
Redeemable noncontrolling interests
|
|
Noncontrolling interests
|
||||||||
|
(In thousands)
|
||||||||||||||
Noncontrolling interests at beginning of period
|
$
|
17,216
|
|
|
$
|
4,375
|
|
|
$
|
16,972
|
|
|
$
|
4,161
|
|
Net income attributable to noncontrolling interests
|
802
|
|
|
272
|
|
|
2,385
|
|
|
805
|
|
||||
Distributions
|
(869
|
)
|
|
(264
|
)
|
|
(2,414
|
)
|
|
(783
|
)
|
||||
Purchases/ (sales) of ownership interests
|
103
|
|
|
85
|
|
|
235
|
|
|
85
|
|
||||
Amortization of equity compensation
|
102
|
|
|
250
|
|
|
306
|
|
|
756
|
|
||||
Adjustments to fair value
|
(1,472
|
)
|
|
74
|
|
|
(1,602
|
)
|
|
(232
|
)
|
||||
Noncontrolling interests at end of period
|
$
|
15,882
|
|
|
$
|
4,792
|
|
|
$
|
15,882
|
|
|
$
|
4,792
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
September 30, 2016
|
|
September 30, 2016
|
||||||||||||
|
Redeemable noncontrolling interests
|
|
Noncontrolling interests
|
|
Redeemable noncontrolling interests
|
|
Noncontrolling interests
|
||||||||
|
(In thousands)
|
||||||||||||||
Noncontrolling interests at beginning of period
|
$
|
15,843
|
|
|
$
|
3,379
|
|
|
$
|
18,088
|
|
|
$
|
3,393
|
|
Net income attributable to noncontrolling interests
|
821
|
|
|
289
|
|
|
2,308
|
|
|
702
|
|
||||
Distributions
|
(809
|
)
|
|
(252
|
)
|
|
(2,213
|
)
|
|
(692
|
)
|
||||
Purchases/ (sales) of ownership interests
|
—
|
|
|
—
|
|
|
(766
|
)
|
|
(18
|
)
|
||||
Amortization of equity compensation
|
115
|
|
|
237
|
|
|
302
|
|
|
501
|
|
||||
Adjustments to fair value
|
229
|
|
|
129
|
|
|
(1,520
|
)
|
|
(104
|
)
|
||||
Noncontrolling interests at end of period
|
$
|
16,199
|
|
|
$
|
3,782
|
|
|
$
|
16,199
|
|
|
$
|
3,782
|
|
Description of component of accumulated other comprehensive income/ (loss)
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
|
Affected line item in
Statement of Operations
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||||
|
|
(In thousands)
|
|
(In thousands)
|
|
|
||||||||||||
Adjustment for realized gains/ (losses) on available-for-sale securities, net:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
|
$
|
230
|
|
|
$
|
273
|
|
|
$
|
486
|
|
|
$
|
519
|
|
|
Gain on sale of investments, net
|
Tax expense/ (benefit)
|
|
89
|
|
|
101
|
|
|
193
|
|
|
189
|
|
|
Income tax expense
|
||||
Net
|
|
$
|
141
|
|
|
$
|
172
|
|
|
$
|
293
|
|
|
$
|
330
|
|
|
Net income attributable to the Company
|
Net realized gain/ (loss) on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Hedges related to deposits:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
|
$
|
(293
|
)
|
|
$
|
(405
|
)
|
|
$
|
(953
|
)
|
|
$
|
(1,319
|
)
|
|
Interest expense on deposits
|
Pre-tax
|
|
(2
|
)
|
|
(19
|
)
|
|
(3
|
)
|
|
26
|
|
|
Other income
|
||||
Tax expense/ (benefit)
|
|
(123
|
)
|
|
(175
|
)
|
|
(398
|
)
|
|
(532
|
)
|
|
Income tax expense
|
||||
Net
|
|
$
|
(172
|
)
|
|
$
|
(249
|
)
|
|
$
|
(558
|
)
|
|
$
|
(761
|
)
|
|
Net income attributable to the Company
|
Total reclassifications for the period, net of tax
|
|
$
|
(31
|
)
|
|
$
|
(77
|
)
|
|
$
|
(265
|
)
|
|
$
|
(431
|
)
|
|
|
|
Severance Charges
|
|
Total
|
||||
|
(In thousands)
|
||||||
Accrued charges at December 31, 2016
|
$
|
1,977
|
|
|
$
|
1,977
|
|
Costs paid
|
(618
|
)
|
|
(618
|
)
|
||
Accrued charges at March 31, 2017
|
1,359
|
|
|
1,359
|
|
||
Costs paid
|
(335
|
)
|
|
(335
|
)
|
||
Accrued charges at June 30, 2017
|
1,024
|
|
|
1,024
|
|
||
Costs paid
|
(410
|
)
|
|
(410
|
)
|
||
Accrued charges at September 30, 2017
|
$
|
614
|
|
|
$
|
614
|
|
|
|
|
|
||||
|
|
|
|
||||
Accrued charges at December 31, 2015
|
$
|
3,305
|
|
|
$
|
3,305
|
|
Costs incurred
|
1,112
|
|
|
1,112
|
|
||
Costs paid
|
(849
|
)
|
|
(849
|
)
|
||
Accrued charges at March 31, 2016
|
3,568
|
|
|
3,568
|
|
||
Costs incurred
|
905
|
|
|
905
|
|
||
Costs paid
|
(1,214
|
)
|
|
(1,214
|
)
|
||
Accrued charges at June 30, 2016
|
3,259
|
|
|
3,259
|
|
||
Costs paid
|
(552
|
)
|
|
(552
|
)
|
||
Accrued charges at September 30, 2016
|
$
|
2,707
|
|
|
$
|
2,707
|
|
|
As of and for the three months ended September 30,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
|
(In thousands, except per share data)
|
|
|
|||||||||||
Total revenues
|
$
|
96,894
|
|
|
$
|
89,883
|
|
|
$
|
7,011
|
|
|
8
|
%
|
Provision/ (credit) for loan losses
|
(432
|
)
|
|
(138
|
)
|
|
(294
|
)
|
|
nm
|
|
|||
Total operating expense
|
69,346
|
|
|
61,670
|
|
|
7,676
|
|
|
12
|
%
|
|||
Net income from continuing operations
|
19,691
|
|
|
19,699
|
|
|
(8
|
)
|
|
—
|
%
|
|||
Net income attributable to noncontrolling interests
|
1,074
|
|
|
1,110
|
|
|
(36
|
)
|
|
(3
|
)%
|
|||
Net income attributable to the Company
|
19,803
|
|
|
19,636
|
|
|
167
|
|
|
1
|
%
|
|||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|||||||
From continuing operations
|
$
|
0.21
|
|
|
$
|
0.21
|
|
|
$
|
—
|
|
|
—
|
%
|
From discontinued operations
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
—
|
%
|
Total attributable to common shareholders
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|||||||
ASSETS UNDER MANAGEMENT AND ADVISORY:
|
|
|
|
|
|
|
|
|||||||
Wealth Management and Trust
|
$
|
7,703,000
|
|
|
$
|
7,334,000
|
|
|
$
|
369,000
|
|
|
5
|
%
|
Wealth Advisory
|
10,992,000
|
|
|
10,028,000
|
|
|
964,000
|
|
|
10
|
%
|
|||
Investment Managers
|
11,083,000
|
|
|
10,176,000
|
|
|
907,000
|
|
|
9
|
%
|
|||
Less: Inter-company Relationship
|
(11,000
|
)
|
|
(11,000
|
)
|
|
—
|
|
|
—
|
%
|
|||
Total Assets Under Management and Advisory
|
$
|
29,767,000
|
|
|
$
|
27,527,000
|
|
|
$
|
2,240,000
|
|
|
8
|
%
|
▪
|
Net interest income increased
14%
, to
$56.6 million
for the three months ended
September 30, 2017
, compared to
$49.9 million
for the same period of
2016
. The increase for the three months is due to higher volume and yields on loans, partially offset by higher volumes and average rates paid on interest-bearing deposits and higher volume and average rates paid on the Company’s borrowings. The net interest margin (“NIM”) was
3.02%
for the three months ended
September 30, 2017
, an increase of fourteen basis points compared to the same period in
2016
.
|
▪
|
Total fees and other income increased
1%
to
$40.3 million
for the three months ended
September 30, 2017
, compared to
$40.0 million
for the same period of
2016
. This increase was driven by a 7% increase in wealth management and trust fees, a
5%
increase in investment management fees, and a 4% increase in wealth advisory fees, partially offset by decreases in swap fee income and market value adjustments on derivatives. Total fees and other income represents 42% of total revenue for the three months ended
September 30, 2017
, compared to 45% of total revenue for the same period of
2016
.
|
▪
|
Total operating expenses increased
12%
to
$69.3 million
for the three months ended
September 30, 2017
, compared to
$61.7 million
for the same period of
2016
. Increases in salaries and employee benefits, occupancy and equipment, professional fees, and marketing and business development expenses were partially offset by decreases in amortization of intangibles and contract services and data processing expenses.
|
|
Three months ended September 30,
|
|
% Change
|
|
Nine months ended September 30,
|
|
% Change
|
||||||||||||||
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||
Net interest income
|
$
|
56,627
|
|
|
$
|
49,871
|
|
|
14
|
%
|
|
$
|
167,414
|
|
|
$
|
148,919
|
|
|
12
|
%
|
Fees and other income
|
40,267
|
|
|
40,012
|
|
|
1
|
%
|
|
114,791
|
|
|
114,829
|
|
|
—
|
%
|
||||
Total revenue
|
96,894
|
|
|
89,883
|
|
|
8
|
%
|
|
282,205
|
|
|
263,748
|
|
|
7
|
%
|
||||
Provision/ (credit) for loan losses
|
(432
|
)
|
|
(138
|
)
|
|
nm
|
|
|
(6,727
|
)
|
|
(5,806
|
)
|
|
16
|
%
|
||||
Operating expense
|
69,346
|
|
|
61,670
|
|
|
12
|
%
|
|
205,947
|
|
|
193,110
|
|
|
7
|
%
|
||||
Income tax expense
|
8,289
|
|
|
8,652
|
|
|
(4
|
)%
|
|
24,805
|
|
|
23,716
|
|
|
5
|
%
|
||||
Net income from continuing operations
|
19,691
|
|
|
19,699
|
|
|
—
|
%
|
|
58,180
|
|
|
52,728
|
|
|
10
|
%
|
||||
Net income from discontinued operations
|
1,186
|
|
|
1,047
|
|
|
13
|
%
|
|
3,881
|
|
|
4,357
|
|
|
(11
|
)%
|
||||
Less: Net income attributable to noncontrolling interests
|
1,074
|
|
|
1,110
|
|
|
(3
|
)%
|
|
3,190
|
|
|
3,010
|
|
|
6
|
%
|
||||
Net income attributable to the Company
|
$
|
19,803
|
|
|
$
|
19,636
|
|
|
1
|
%
|
|
$
|
58,871
|
|
|
$
|
54,075
|
|
|
9
|
%
|
|
Average Balance
|
|
Interest Income/Expense
|
|
Average Yield/Rate
|
||||||||||||||||
|
As of and for the three months ended September 30,
|
||||||||||||||||||||
AVERAGE BALANCE SHEET:
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||
AVERAGE ASSETS
|
(In thousands)
|
|
|
|
|
||||||||||||||||
Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Investments: (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable investment securities
|
$
|
353,374
|
|
|
$
|
372,852
|
|
|
$
|
1,569
|
|
|
$
|
1,537
|
|
|
1.77
|
%
|
|
1.65
|
%
|
Non-taxable investment securities (2)
|
295,727
|
|
|
271,864
|
|
|
2,559
|
|
|
2,221
|
|
|
3.46
|
%
|
|
3.27
|
%
|
||||
Mortgage-backed securities
|
631,052
|
|
|
629,748
|
|
|
3,267
|
|
|
3,079
|
|
|
2.07
|
%
|
|
1.96
|
%
|
||||
Federal funds sold and other
|
146,285
|
|
|
152,892
|
|
|
916
|
|
|
469
|
|
|
2.47
|
%
|
|
1.20
|
%
|
||||
Total Cash and Investments
|
1,426,438
|
|
|
1,427,356
|
|
|
8,311
|
|
|
7,306
|
|
|
2.33
|
%
|
|
2.05
|
%
|
||||
Loans (3):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and Industrial (2)
|
994,388
|
|
|
1,065,787
|
|
|
10,001
|
|
|
10,626
|
|
|
3.94
|
%
|
|
3.90
|
%
|
||||
Commercial Real Estate (2)
|
2,381,583
|
|
|
1,976,327
|
|
|
25,579
|
|
|
19,860
|
|
|
4.20
|
%
|
|
3.93
|
%
|
||||
Construction and Land
|
113,562
|
|
|
117,183
|
|
|
1,415
|
|
|
1,263
|
|
|
4.88
|
%
|
|
4.22
|
%
|
||||
Residential
|
2,567,044
|
|
|
2,300,392
|
|
|
20,423
|
|
|
17,812
|
|
|
3.18
|
%
|
|
3.10
|
%
|
||||
Home Equity
|
106,744
|
|
|
122,505
|
|
|
1,128
|
|
|
1,105
|
|
|
4.19
|
%
|
|
3.59
|
%
|
||||
Other Consumer
|
187,184
|
|
|
182,315
|
|
|
1,554
|
|
|
1,154
|
|
|
3.29
|
%
|
|
2.52
|
%
|
||||
Total Loans
|
6,350,505
|
|
|
5,764,509
|
|
|
60,100
|
|
|
51,820
|
|
|
3.73
|
%
|
|
3.55
|
%
|
||||
Total Earning Assets
|
7,776,943
|
|
|
7,191,865
|
|
|
68,411
|
|
|
59,126
|
|
|
3.48
|
%
|
|
3.25
|
%
|
||||
Less: Allowance for Loan Losses
|
75,166
|
|
|
76,424
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due From Banks (Non-interest Bearing)
|
42,031
|
|
|
39,301
|
|
|
|
|
|
|
|
|
|
||||||||
Other Assets
|
455,820
|
|
|
445,517
|
|
|
|
|
|
|
|
|
|
||||||||
TOTAL AVERAGE ASSETS
|
$
|
8,199,628
|
|
|
$
|
7,600,259
|
|
|
|
|
|
|
|
|
|
||||||
AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-Bearing Deposits (4):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW
|
$
|
630,282
|
|
|
$
|
551,085
|
|
|
$
|
189
|
|
|
$
|
120
|
|
|
0.12
|
%
|
|
0.09
|
%
|
Savings
|
71,900
|
|
|
76,999
|
|
|
16
|
|
|
25
|
|
|
0.09
|
%
|
|
0.13
|
%
|
||||
Money Market
|
3,065,059
|
|
|
2,922,687
|
|
|
3,436
|
|
|
2,877
|
|
|
0.44
|
%
|
|
0.39
|
%
|
||||
Certificates of Deposit
|
671,992
|
|
|
560,546
|
|
|
1,715
|
|
|
1,141
|
|
|
1.01
|
%
|
|
0.81
|
%
|
||||
Total Interest Bearing Deposits
|
4,439,233
|
|
|
4,111,317
|
|
|
5,356
|
|
|
4,163
|
|
|
0.48
|
%
|
|
0.40
|
%
|
||||
Junior Subordinated Debentures
|
106,363
|
|
|
106,363
|
|
|
761
|
|
|
591
|
|
|
2.80
|
%
|
|
2.17
|
%
|
||||
FHLB Borrowings and Other Borrowings
|
736,035
|
|
|
624,528
|
|
|
2,768
|
|
|
1,978
|
|
|
1.47
|
%
|
|
1.24
|
%
|
||||
Total Interest Bearing Liabilities
|
5,281,631
|
|
|
4,842,208
|
|
|
8,885
|
|
|
6,732
|
|
|
0.66
|
%
|
|
0.55
|
%
|
||||
Non-interest Bearing Demand Deposits (4)
|
1,966,479
|
|
|
1,824,548
|
|
|
|
|
|
|
|
|
|
||||||||
Payables and Other Liabilities
|
121,288
|
|
|
135,901
|
|
|
|
|
|
|
|
|
|
||||||||
Total Average Liabilities
|
7,369,398
|
|
|
6,802,657
|
|
|
|
|
|
|
|
|
|
||||||||
Redeemable Noncontrolling Interests
|
21,634
|
|
|
19,504
|
|
|
|
|
|
|
|
|
|
||||||||
Average Shareholders’ Equity
|
808,596
|
|
|
778,098
|
|
|
|
|
|
|
|
|
|
||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY
|
$
|
8,199,628
|
|
|
$
|
7,600,259
|
|
|
|
|
|
|
|
|
|
||||||
Net Interest Income - on a FTE Basis
|
|
|
|
|
$
|
59,526
|
|
|
$
|
52,394
|
|
|
|
|
|
||||||
FTE Adjustment (2)
|
|
|
|
|
2,899
|
|
|
2,523
|
|
|
|
|
|
||||||||
Net Interest Income (GAAP Basis)
|
|
|
|
|
$
|
56,627
|
|
|
$
|
49,871
|
|
|
|
|
|
||||||
Interest Rate Spread
|
|
|
|
|
|
|
|
|
2.82
|
%
|
|
2.70
|
%
|
||||||||
Net Interest Margin
|
|
|
|
|
|
|
|
|
3.02
|
%
|
|
2.88
|
%
|
|
Average Balance
|
|
Interest Income/Expense
|
|
Average Yield/Rate
|
||||||||||||||||
|
As of and for the nine months ended September 30,
|
||||||||||||||||||||
AVERAGE BALANCE SHEET:
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||
AVERAGE ASSETS
|
(In thousands)
|
|
|
|
|
||||||||||||||||
Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Investments: (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable investment securities
|
$
|
369,929
|
|
|
$
|
373,273
|
|
|
$
|
4,831
|
|
|
$
|
4,638
|
|
|
1.74
|
%
|
|
1.66
|
%
|
Non-taxable investment securities (2)
|
295,195
|
|
|
265,280
|
|
|
7,576
|
|
|
6,512
|
|
|
3.42
|
%
|
|
3.27
|
%
|
||||
Mortgage-backed securities
|
652,159
|
|
|
594,461
|
|
|
10,266
|
|
|
9,126
|
|
|
2.10
|
%
|
|
2.05
|
%
|
||||
Federal funds sold and other
|
169,114
|
|
|
160,114
|
|
|
2,347
|
|
|
1,381
|
|
|
1.55
|
%
|
|
1.14
|
%
|
||||
Total Cash and Investments
|
1,486,397
|
|
|
1,393,128
|
|
|
25,020
|
|
|
21,657
|
|
|
2.21
|
%
|
|
2.07
|
%
|
||||
Loans (3):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and Industrial (2)
|
988,449
|
|
|
1,072,051
|
|
|
29,077
|
|
|
32,358
|
|
|
3.88
|
%
|
|
3.97
|
%
|
||||
Commercial Real Estate (2)
|
2,354,996
|
|
|
1,915,839
|
|
|
75,556
|
|
|
59,216
|
|
|
4.23
|
%
|
|
4.06
|
%
|
||||
Construction and Land
|
115,629
|
|
|
147,548
|
|
|
4,036
|
|
|
4,367
|
|
|
4.60
|
%
|
|
3.89
|
%
|
||||
Residential
|
2,494,151
|
|
|
2,262,262
|
|
|
58,988
|
|
|
52,555
|
|
|
3.15
|
%
|
|
3.10
|
%
|
||||
Home Equity
|
111,423
|
|
|
121,849
|
|
|
3,302
|
|
|
3,260
|
|
|
3.96
|
%
|
|
3.57
|
%
|
||||
Other Consumer
|
191,550
|
|
|
172,578
|
|
|
4,500
|
|
|
3,193
|
|
|
3.14
|
%
|
|
2.47
|
%
|
||||
Total Loans
|
6,256,198
|
|
|
5,692,127
|
|
|
175,459
|
|
|
154,949
|
|
|
3.71
|
%
|
|
3.60
|
%
|
||||
Total Earning Assets
|
7,742,595
|
|
|
7,085,255
|
|
|
200,479
|
|
|
176,606
|
|
|
3.43
|
%
|
|
3.30
|
%
|
||||
Less: Allowance for Loan Losses
|
77,957
|
|
|
78,008
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due From Banks (Non-interest Bearing)
|
42,006
|
|
|
39,869
|
|
|
|
|
|
|
|
|
|
||||||||
Other Assets
|
436,373
|
|
|
432,005
|
|
|
|
|
|
|
|
|
|
||||||||
TOTAL AVERAGE ASSETS
|
$
|
8,143,017
|
|
|
$
|
7,479,121
|
|
|
|
|
|
|
|
|
|
||||||
AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-Bearing Deposits (4):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW
|
$
|
616,054
|
|
|
$
|
549,429
|
|
|
$
|
472
|
|
|
$
|
311
|
|
|
0.10
|
%
|
|
0.08
|
%
|
Savings
|
72,831
|
|
|
75,958
|
|
|
49
|
|
|
71
|
|
|
0.09
|
%
|
|
0.13
|
%
|
||||
Money Market
|
3,149,545
|
|
|
2,958,051
|
|
|
9,801
|
|
|
8,615
|
|
|
0.42
|
%
|
|
0.39
|
%
|
||||
Certificates of Deposit
|
642,820
|
|
|
566,022
|
|
|
4,514
|
|
|
3,423
|
|
|
0.94
|
%
|
|
0.81
|
%
|
||||
Total Interest-Bearing Deposits
|
4,481,250
|
|
|
4,149,460
|
|
|
14,836
|
|
|
12,420
|
|
|
0.44
|
%
|
|
0.40
|
%
|
||||
Junior Subordinated Debentures
|
106,363
|
|
|
106,363
|
|
|
2,148
|
|
|
1,753
|
|
|
2.66
|
%
|
|
2.17
|
%
|
||||
FHLB Borrowings and Other Borrowings
|
722,087
|
|
|
623,030
|
|
|
7,439
|
|
|
6,138
|
|
|
1.36
|
%
|
|
1.29
|
%
|
||||
Total Interest-Bearing Liabilities
|
5,309,700
|
|
|
4,878,853
|
|
|
24,423
|
|
|
20,311
|
|
|
0.61
|
%
|
|
0.55
|
%
|
||||
Non-interest Bearing Demand Deposits (4)
|
1,903,709
|
|
|
1,691,872
|
|
|
|
|
|
|
|
|
|
||||||||
Payables and Other Liabilities
|
115,622
|
|
|
121,601
|
|
|
|
|
|
|
|
|
|
||||||||
Total Average Liabilities
|
7,329,031
|
|
|
6,692,326
|
|
|
|
|
|
|
|
|
|
||||||||
Redeemable Noncontrolling Interests
|
21,341
|
|
|
20,225
|
|
|
|
|
|
|
|
|
|
||||||||
Average Shareholders’ Equity
|
792,645
|
|
|
766,570
|
|
|
|
|
|
|
|
|
|
||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY
|
$
|
8,143,017
|
|
|
$
|
7,479,121
|
|
|
|
|
|
|
|
|
|
||||||
Net Interest Income - on a FTE Basis
|
|
|
|
|
$
|
176,056
|
|
|
$
|
156,295
|
|
|
|
|
|
||||||
FTE Adjustment (2)
|
|
|
|
|
8,642
|
|
|
7,376
|
|
|
|
|
|
||||||||
Net Interest Income (GAAP Basis)
|
|
|
|
|
$
|
167,414
|
|
|
$
|
148,919
|
|
|
|
|
|
||||||
Interest Rate Spread
|
|
|
|
|
|
|
|
|
2.82
|
%
|
|
2.75
|
%
|
||||||||
Net Interest Margin
|
|
|
|
|
|
|
|
|
3.01
|
%
|
|
2.92
|
%
|
(1)
|
Investments classified as available-for-sale and held-to-maturity are shown in the average balance sheet at amortized cost.
|
(2)
|
Interest income on non-taxable investments and loans is presented on a FTE basis using statutory rates. The discussion following these tables reflects non-FTE data.
|
(3)
|
Includes loans held for sale and nonaccrual loans.
|
(4)
|
Includes deposits held for sale, if any.
|
|
September 30,
2017 |
|
December 31, 2016
|
|
Increase/
(decrease)
|
|
%
Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Assets:
|
|
|
|
|
|
|
|
|||||||
Total cash and investments
|
$
|
1,446,071
|
|
|
$
|
1,507,845
|
|
|
$
|
(61,774
|
)
|
|
(4
|
)%
|
Loans held for sale
|
1,957
|
|
|
3,464
|
|
|
(1,507
|
)
|
|
(44
|
)%
|
|||
Total loans
|
6,413,201
|
|
|
6,114,354
|
|
|
298,847
|
|
|
5
|
%
|
|||
Less: Allowance for loan losses
|
74,873
|
|
|
78,077
|
|
|
(3,204
|
)
|
|
(4
|
)%
|
|||
Net loans
|
6,338,328
|
|
|
6,036,277
|
|
|
302,051
|
|
|
5
|
%
|
|||
Goodwill and intangible assets, net
|
165,001
|
|
|
169,279
|
|
|
(4,278
|
)
|
|
(3
|
)%
|
|||
Total other assets
|
318,041
|
|
|
253,609
|
|
|
64,432
|
|
|
25
|
%
|
|||
Total assets
|
$
|
8,269,398
|
|
|
$
|
7,970,474
|
|
|
$
|
298,924
|
|
|
4
|
%
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|||||||
Deposits
|
$
|
6,262,347
|
|
|
$
|
6,085,146
|
|
|
$
|
177,201
|
|
|
3
|
%
|
Total borrowings
|
1,049,039
|
|
|
980,192
|
|
|
68,847
|
|
|
7
|
%
|
|||
Total other liabilities
|
127,069
|
|
|
119,683
|
|
|
7,386
|
|
|
6
|
%
|
|||
Total liabilities
|
7,438,455
|
|
|
7,185,021
|
|
|
253,434
|
|
|
4
|
%
|
|||
Redeemable Noncontrolling Interests (“RNCI”)
|
15,882
|
|
|
16,972
|
|
|
(1,090
|
)
|
|
(6
|
)%
|
|||
Total shareholders’ equity
|
815,061
|
|
|
768,481
|
|
|
46,580
|
|
|
6
|
%
|
|||
Total liabilities, RNCI and shareholders’ equity
|
$
|
8,269,398
|
|
|
$
|
7,970,474
|
|
|
$
|
298,924
|
|
|
4
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Balance
|
|
as a % of total
|
|
Balance
|
|
as a % of total
|
||||||
|
(In thousands)
|
||||||||||||
Demand deposits (noninterest-bearing)
|
$
|
1,850,833
|
|
|
30
|
%
|
|
$
|
1,753,648
|
|
|
29
|
%
|
NOW (1)
|
636,013
|
|
|
10
|
%
|
|
578,657
|
|
|
9
|
%
|
||
Savings
|
74,333
|
|
|
1
|
%
|
|
74,162
|
|
|
1
|
%
|
||
Money market (1)
|
3,009,779
|
|
|
48
|
%
|
|
3,102,048
|
|
|
51
|
%
|
||
Certificates of deposit under $100,000 (1)
|
265,402
|
|
|
4
|
%
|
|
236,001
|
|
|
4
|
%
|
||
Certificates of deposit of $100,000 or greater
|
425,987
|
|
|
7
|
%
|
|
340,630
|
|
|
6
|
%
|
||
Total deposits
|
$
|
6,262,347
|
|
|
100
|
%
|
|
$
|
6,085,146
|
|
|
100
|
%
|
(1)
|
Includes brokered deposits of $562.5 million $738.3 million at
September 30, 2017
and
December 31, 2016
, respectively.
|
|
As of September 30, 2017
|
||||||||||||||||||||||||||
|
New England
|
|
San Francisco Bay Area
|
|
Southern California
|
|
Total
|
||||||||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
Commercial and industrial
|
$
|
503,322
|
|
|
8
|
%
|
|
$
|
50,686
|
|
|
1
|
%
|
|
$
|
64,248
|
|
|
1
|
%
|
|
$
|
618,256
|
|
|
9
|
%
|
Commercial tax exempt
|
320,172
|
|
|
5
|
%
|
|
99,540
|
|
|
2
|
%
|
|
11,638
|
|
|
—
|
%
|
|
431,350
|
|
|
7
|
%
|
||||
Commercial real estate
|
988,788
|
|
|
15
|
%
|
|
698,148
|
|
|
11
|
%
|
|
676,223
|
|
|
11
|
%
|
|
2,363,159
|
|
|
37
|
%
|
||||
Construction and land
|
61,635
|
|
|
1
|
%
|
|
20,893
|
|
|
—
|
%
|
|
35,763
|
|
|
1
|
%
|
|
118,291
|
|
|
2
|
%
|
||||
Residential
|
1,558,587
|
|
|
24
|
%
|
|
510,956
|
|
|
8
|
%
|
|
531,245
|
|
|
8
|
%
|
|
2,600,788
|
|
|
40
|
%
|
||||
Home equity
|
72,149
|
|
|
1
|
%
|
|
26,052
|
|
|
1
|
%
|
|
9,026
|
|
|
—
|
%
|
|
107,227
|
|
|
2
|
%
|
||||
Consumer and other
|
150,309
|
|
|
2
|
%
|
|
15,302
|
|
|
—
|
%
|
|
8,519
|
|
|
—
|
%
|
|
174,130
|
|
|
3
|
%
|
||||
Total loans (1)
|
$
|
3,654,962
|
|
|
56
|
%
|
|
$
|
1,421,577
|
|
|
23
|
%
|
|
$
|
1,336,662
|
|
|
21
|
%
|
|
$
|
6,413,201
|
|
|
100
|
%
|
|
As of December 31, 2016
|
||||||||||||||||||||||||||
|
New England
|
|
San Francisco Bay Area
|
|
Southern California
|
|
Total
|
||||||||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
Commercial and industrial
|
$
|
493,451
|
|
|
8
|
%
|
|
$
|
50,578
|
|
|
1
|
%
|
|
$
|
67,341
|
|
|
1
|
%
|
|
$
|
611,370
|
|
|
10
|
%
|
Commercial tax exempt
|
317,691
|
|
|
5
|
%
|
|
69,064
|
|
|
1
|
%
|
|
11,849
|
|
|
—
|
%
|
|
398,604
|
|
|
6
|
%
|
||||
Commercial real estate
|
1,012,284
|
|
|
17
|
%
|
|
637,042
|
|
|
10
|
%
|
|
652,918
|
|
|
11
|
%
|
|
2,302,244
|
|
|
38
|
%
|
||||
Construction and land
|
47,434
|
|
|
1
|
%
|
|
29,629
|
|
|
1
|
%
|
|
27,776
|
|
|
—
|
%
|
|
104,839
|
|
|
2
|
%
|
||||
Residential
|
1,456,592
|
|
|
24
|
%
|
|
473,102
|
|
|
8
|
%
|
|
450,167
|
|
|
7
|
%
|
|
2,379,861
|
|
|
39
|
%
|
||||
Home equity
|
87,280
|
|
|
2
|
%
|
|
25,129
|
|
|
—
|
%
|
|
6,408
|
|
|
—
|
%
|
|
118,817
|
|
|
2
|
%
|
||||
Consumer and other
|
186,680
|
|
|
3
|
%
|
|
7,517
|
|
|
—
|
%
|
|
4,422
|
|
|
—
|
%
|
|
198,619
|
|
|
3
|
%
|
||||
Total loans (1)
|
$
|
3,601,412
|
|
|
59
|
%
|
|
$
|
1,292,061
|
|
|
21
|
%
|
|
$
|
1,220,881
|
|
|
20
|
%
|
|
$
|
6,114,354
|
|
|
100
|
%
|
(1)
|
Regional percentage totals may not reconcile due to rounding.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In thousands)
|
||||||||||||||
Net loans (charged-off)/ recovered:
|
|
|
|
|
|
|
|
||||||||
New England
|
$
|
73
|
|
|
$
|
1,704
|
|
|
$
|
819
|
|
|
$
|
834
|
|
San Francisco Bay Area
|
206
|
|
|
318
|
|
|
3,097
|
|
|
4,309
|
|
||||
Southern California
|
17
|
|
|
32
|
|
|
(393
|
)
|
|
(168
|
)
|
||||
Total net loans (charged-off)/ recovered
|
$
|
296
|
|
|
$
|
2,054
|
|
|
$
|
3,523
|
|
|
$
|
4,975
|
|
|
As of and for the three months ended September 30,
|
|
As of and for the nine months ended September 30,
|
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
(In thousands)
|
|||||||||||||||
Nonaccrual loans, beginning of period
|
$
|
16,176
|
|
|
$
|
19,188
|
|
|
$
|
17,315
|
|
|
$
|
26,571
|
|
Transfers in to nonaccrual status
|
578
|
|
|
2,430
|
|
|
8,294
|
|
|
7,566
|
|
||||
Transfers out to OREO
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,944
|
)
|
||||
Transfers out to accrual status
|
(1,146
|
)
|
|
(581
|
)
|
|
(2,686
|
)
|
|
(1,855
|
)
|
||||
Charge-offs
|
(38
|
)
|
|
(337
|
)
|
|
(496
|
)
|
|
(3,102
|
)
|
||||
Paid off/ paid down
|
(1,947
|
)
|
|
(4,209
|
)
|
|
(8,804
|
)
|
|
(10,745
|
)
|
||||
Nonaccrual loans, end of period
|
$
|
13,623
|
|
|
$
|
16,491
|
|
|
$
|
13,623
|
|
|
$
|
16,491
|
|
|
September 30,
2017 |
|
December 31, 2016
|
||||
|
(In thousands)
|
||||||
Nonaccrual loans:
|
|
|
|
||||
New England
|
$
|
7,380
|
|
|
$
|
10,081
|
|
San Francisco Bay Area
|
1,494
|
|
|
2,989
|
|
||
Southern California
|
4,749
|
|
|
4,245
|
|
||
Total nonaccrual loans
|
$
|
13,623
|
|
|
$
|
17,315
|
|
Loans 30-89 days past due and accruing:
|
|
|
|
||||
New England
|
$
|
4,664
|
|
|
$
|
10,311
|
|
San Francisco Bay Area
|
430
|
|
|
591
|
|
||
Southern California
|
198
|
|
|
4,235
|
|
||
Total loans 30-89 days past due
|
$
|
5,292
|
|
|
$
|
15,137
|
|
Accruing substandard loans:
|
|
|
|
||||
New England
|
$
|
8,196
|
|
|
$
|
10,972
|
|
San Francisco Bay Area
|
11,622
|
|
|
15,890
|
|
||
Southern California
|
33,923
|
|
|
36,809
|
|
||
Total accruing substandard loans
|
$
|
53,741
|
|
|
$
|
63,671
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
(In thousands)
|
||||||
Nonaccrual loans:
|
|
|
|
||||
Commercial and industrial
|
$
|
968
|
|
|
$
|
572
|
|
Commercial real estate
|
2,601
|
|
|
4,583
|
|
||
Construction and land
|
206
|
|
|
179
|
|
||
Residential
|
8,765
|
|
|
10,908
|
|
||
Home equity
|
1,062
|
|
|
1,072
|
|
||
Consumer and other
|
21
|
|
|
1
|
|
||
Total nonaccrual loans
|
$
|
13,623
|
|
|
$
|
17,315
|
|
Loans 30-89 days past due and accruing:
|
|
|
|
||||
Commercial and industrial
|
$
|
959
|
|
|
$
|
1,619
|
|
Commercial real estate
|
907
|
|
|
3,096
|
|
||
Construction and land
|
413
|
|
|
—
|
|
||
Residential
|
226
|
|
|
4,182
|
|
||
Home equity
|
2,202
|
|
|
245
|
|
||
Consumer and other
|
585
|
|
|
5,995
|
|
||
Total loans 30-89 days past due
|
$
|
5,292
|
|
|
$
|
15,137
|
|
Accruing substandard loans:
|
|
|
|
||||
Commercial and industrial
|
$
|
8,138
|
|
|
$
|
9,277
|
|
Commercial real estate
|
37,306
|
|
|
49,696
|
|
||
Construction and land
|
6,688
|
|
|
3,297
|
|
||
Residential
|
1,358
|
|
|
1,399
|
|
||
Home equity
|
—
|
|
|
—
|
|
||
Consumer and other
|
251
|
|
|
2
|
|
||
Total accruing substandard loans
|
$
|
53,741
|
|
|
$
|
63,671
|
|
|
Actual
|
|
For capital adequacy purposes (at least)
|
|
To be well capitalized under prompt corrective action provisions (at least)
|
|
Basel III minimum capital ratio with capital conservation buffer (1)
|
||||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Ratio
|
||||||||||
|
(In thousands)
|
|
|
||||||||||||||||||||
As of September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
$
|
607,822
|
|
|
10.42
|
%
|
|
$
|
262,420
|
|
|
4.5
|
%
|
|
n/a
|
|
|
n/a
|
|
7.0
|
%
|
||
Boston Private Bank
|
695,945
|
|
|
11.98
|
|
|
261,314
|
|
|
4.5
|
|
|
$
|
377,453
|
|
|
6.5
|
%
|
|
7.0
|
|
||
Tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
757,505
|
|
|
12.99
|
|
|
349,893
|
|
|
6.0
|
|
|
n/a
|
|
|
n/a
|
|
8.5
|
|
||||
Boston Private Bank
|
695,945
|
|
|
11.98
|
|
|
348,418
|
|
|
6.0
|
|
|
464,558
|
|
|
8.0
|
|
|
8.5
|
|
|||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
830,719
|
|
|
14.25
|
|
|
466,525
|
|
|
8.0
|
|
|
n/a
|
|
|
n/a
|
|
10.5
|
|
||||
Boston Private Bank
|
768,577
|
|
|
13.24
|
|
|
464,558
|
|
|
8.0
|
|
|
580,697
|
|
|
10.0
|
|
|
10.5
|
|
|||
Tier 1 leverage capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
757,505
|
|
|
9.42
|
|
|
321,760
|
|
|
4.0
|
|
|
n/a
|
|
|
n/a
|
|
4.0
|
|
||||
Boston Private Bank
|
695,945
|
|
|
8.71
|
|
|
319,778
|
|
|
4.0
|
|
|
399,722
|
|
|
5.0
|
|
|
4.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
For capital adequacy purposes (at least)
|
|
To be well capitalized under prompt corrective action provisions (at least)
|
|
Basel III minimum capital ratio with capital conservation buffer (1)
|
||||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Ratio
|
||||||||||
|
(In thousands)
|
|
|
||||||||||||||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
$
|
571,663
|
|
|
10.00
|
%
|
|
$
|
257,222
|
|
|
4.5
|
%
|
|
n/a
|
|
|
n/a
|
|
7.0%
|
|||
Boston Private Bank
|
661,991
|
|
|
11.64
|
|
|
256,030
|
|
|
4.5
|
|
|
$
|
369,822
|
|
|
6.5
|
%
|
|
7.0
|
|||
Tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
722,674
|
|
|
12.64
|
|
|
342,962
|
|
|
6.0
|
|
|
n/a
|
|
|
n/a
|
|
8.5
|
|||||
Boston Private Bank
|
661,991
|
|
|
11.64
|
|
|
341,374
|
|
|
6.0
|
|
|
455,165
|
|
|
8.0
|
|
|
8.5
|
||||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
794,584
|
|
|
13.90
|
|
|
457,283
|
|
|
8.0
|
|
|
n/a
|
|
|
n/a
|
|
10.5
|
|||||
Boston Private Bank
|
733,214
|
|
|
12.89
|
|
|
455,165
|
|
|
8.0
|
|
|
568,956
|
|
|
10.0
|
|
|
10.5
|
||||
Tier 1 leverage capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
722,674
|
|
|
9.42
|
|
|
306,848
|
|
|
4.0
|
|
|
n/a
|
|
|
n/a
|
|
4.0
|
|||||
Boston Private Bank
|
661,991
|
|
|
8.70
|
|
|
304,510
|
|
|
4.0
|
|
|
380,637
|
|
|
5.0
|
|
|
4.0
|
(1)
|
Required capital ratios under the Basel III capital rules with the fully phased-in capital conservation buffer added to the minimum risk-based capital ratios. The fully phased-in ratios are effective for 2019, with lower requirements during the transition years 2016 through 2018.
|
|
|
|
|
|
|
|
|
Exhibit No.
|
|
Description
|
|
Incorporated by Reference
|
|
Filed or
Furnished
with this
10-Q
|
||||
Form
|
|
SEC Filing
Date
|
|
Exhibit
Number
|
|
|||||
10.1
|
|
|
|
|
|
|
|
|
Filed
|
|
10.2
|
|
|
|
|
|
|
|
|
Filed
|
|
10.3
|
|
|
|
|
|
|
|
|
Filed
|
|
10.4
|
|
|
|
|
|
|
|
|
Filed
|
|
10.5
|
|
|
|
|
|
|
|
|
Filed
|
|
31.1
|
|
|
|
|
|
|
|
|
Filed
|
|
31.2
|
|
|
|
|
|
|
|
|
Filed
|
|
32.1
|
|
|
|
|
|
|
|
|
Furnished
|
|
32.2
|
|
|
|
|
|
|
|
|
Furnished
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
Filed
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
Filed
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
|
|
|
B
OSTON
P
RIVATE
F
INANCIAL
H
OLDINGS
, I
NC
.
|
|
|
|
/s/ C
LAYTON
G. D
EUTSCH
|
November 7, 2017
|
Clayton G. Deutsch
|
|
Chief Executive Officer
|
|
|
|
/s/ D
AVID
J. K
AYE
|
November 7, 2017
|
David J. Kaye
|
|
Executive Vice President, Chief Financial
and Administrative Officer
|
Name of Grantee:
|
Clayton G. Deutsch
|
|
|
No. of Restricted Stock Units:
|
|
|
|
Grant Date:
|
|
|
|
|
|
BOSTON PRIVATE FINANCIAL
HOLDINGS, INC.
|
|
|
|
By:
|
|
|
Title:
|
|
|||
|
|
|
|
Dated:
|
|
|
|
|
|
|
Grantee’s Signature
|
|
|
|
|
|
|
|
Grantee’s name:
|
Name of Grantee:
|
Clayton G. Deutsch
|
|
|
No. of Restricted Stock Units:
|
|
|
|
Grant Date:
|
|
Number of
Restricted Stock Units Vested
|
Vesting Date
|
_____________ (100%)
|
_____________, 20__
|
Name of Grantee:
|
|
|
|
No. of Restricted Stock Units:
|
|
|
|
Grant Date:
|
|
|
|
|
|
BOSTON PRIVATE FINANCIAL
HOLDINGS, INC.
|
|
|
|
By:
|
|
|
Title:
|
|
|||
|
|
|
|
Dated:
|
|
|
|
|
|
|
Grantee’s Signature
|
|
|
|
|
|
|
|
Grantee’s name:
|
EMPLOYEE
(Print Name)
|
FOR THE COMPANY
(Print name, title & employer)
|
EMPLOYEE
(Print Name)
|
FOR THE COMPANY
(Print name, title & employer)
|
Name of Grantee:
|
|
|
|
No. of Restricted Stock Units:
|
|
|
|
Grant Date:
|
|
Number of
Restricted Stock Units Vested
|
Vesting Date
|
_____________ (100%)
|
___________, 20__
|
EMPLOYEE
(Print Name)
|
FOR THE COMPANY
(Print name, title & employer)
|
EMPLOYEE
(Print Name)
|
FOR THE COMPANY
(Print name, title & employer)
|
Name of Grantee:
|
|
|
|
No. of Restricted Stock Units:
|
|
|
|
Grant Date:
|
|
Number of
Restricted Stock Units Vested
|
Vesting Date
|
_____________ (100%)
|
_______________, 20__
|
EMPLOYEE
(Print Name)
|
FOR THE COMPANY
(Print name, title & employer)
|
EMPLOYEE
(Print Name)
|
FOR THE COMPANY
(Print name, title & employer)
|
1.
|
I have reviewed this
quarterly report on Form 10-Q
of Boston Private Financial Holdings, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ C
LAYTON
G. D
EUTSCH
|
Date: November 7, 2017
|
|
Clayton G. Deutsch
Chief Executive Officer
|
|
1.
|
I have reviewed this
quarterly report on Form 10-Q
of Boston Private Financial Holdings, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ D
AVID
J. K
AYE
|
Date: November 7, 2017
|
|
David J. Kaye
Chief Financial and Administrative Officer
|
|
|
|
|
|
|
/s/ C
LAYTON
G. D
EUTSCH
|
|
|
|
|
|
Clayton G. Deutsch
Chief Executive Officer
|
Date: November 7, 2017
|
|
|
|
|
|
|
|
|
|
/s/ D
AVID
J. K
AYE
|
|
|
|
|
|
David J. Kaye
Chief Financial and Administrative Officer
|
Date: November 7, 2017
|
|
|
|
|