ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Pennsylvania
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20-4929029
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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One Oxford Centre
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301 Grant Street, Suite 2700
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Pittsburgh, Pennsylvania 15219
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(Address of principal executive offices)
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(Zip Code)
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(412) 304-0304
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(Registrant’s telephone number, including area code)
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Large accelerated filer
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¨
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Accelerated filer
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ý
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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(Do not check if a smaller reporting company)
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Emerging growth company
|
ý
|
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(Dollars in thousands)
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March 31,
2017 |
December 31,
2016 |
||||
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|
||||
ASSETS
|
|
|
||||
|
|
|
||||
Cash
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$
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183
|
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$
|
183
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|
Interest-earning deposits with other institutions
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108,490
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|
96,244
|
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Federal funds sold
|
3,828
|
|
7,567
|
|
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Cash and cash equivalents
|
112,501
|
|
103,994
|
|
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Investment securities available-for-sale, at fair value (cost:
$160,234
and
$175,158
, respectively)
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160,254
|
|
174,892
|
|
||
Investment securities held-to-maturity, at cost (fair value:
$62,312
and
$54,498
, respectively)
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61,371
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|
53,940
|
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Federal Home Loan Bank stock
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13,241
|
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9,641
|
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Total investment securities
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234,866
|
|
238,473
|
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Loans held-for-investment
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3,537,090
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3,401,054
|
|
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Allowance for loan losses
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(16,185
|
)
|
(18,762
|
)
|
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Loans held-for-investment, net
|
3,520,905
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|
3,382,292
|
|
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Accrued interest receivable
|
10,375
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|
9,614
|
|
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Investment management fees receivable, net
|
7,725
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|
7,749
|
|
||
Goodwill and other intangibles, net
|
66,746
|
|
67,209
|
|
||
Office properties and equipment, net
|
5,312
|
|
5,471
|
|
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Bank owned life insurance
|
65,265
|
|
64,815
|
|
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Deferred tax asset, net
|
6,816
|
|
7,204
|
|
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Prepaid expenses and other assets
|
44,526
|
|
43,636
|
|
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Total assets
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$
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4,075,037
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$
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3,930,457
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LIABILITIES AND SHAREHOLDERS’ EQUITY
|
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Liabilities:
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Deposits
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$
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3,317,880
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$
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3,286,779
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Borrowings, net
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349,561
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|
239,510
|
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Accrued interest payable on deposits and borrowings
|
1,421
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1,867
|
|
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Other accrued expenses and other liabilities
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46,516
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|
50,494
|
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Total liabilities
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3,715,378
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3,578,650
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Shareholders’ Equity:
|
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|
||||
Preferred stock, no par value; Shares authorized -
150,000
; Shares issued -
none
|
—
|
|
—
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Common stock, no par value; Shares authorized -
45,000,000
;
Shares issued - 30,151,558 and 29,790,383 , respectively; Shares outstanding - 28,731,963 and 28,415,654 , respectively |
286,334
|
|
285,480
|
|
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Additional paid-in capital
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7,117
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|
6,782
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|
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Retained earnings
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81,236
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|
73,744
|
|
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Accumulated other comprehensive income, net
|
1,042
|
|
830
|
|
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Treasury stock (
1,419,595
and
1,374,729
shares, respectively)
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(16,070
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)
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(15,029
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)
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Total shareholders’ equity
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359,659
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|
351,807
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Total liabilities and shareholders’ equity
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$
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4,075,037
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$
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3,930,457
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Three Months Ended March 31,
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|||||
(Dollars in thousands, except per share data)
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2017
|
2016
|
||||
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|
|
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Interest income:
|
|
|
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Loans
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$
|
27,019
|
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$
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21,977
|
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Investments
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1,470
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|
1,245
|
|
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Interest-earning deposits
|
248
|
|
138
|
|
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Total interest income
|
28,737
|
|
23,360
|
|
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|
|
|
||||
Interest expense:
|
|
|
||||
Deposits
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6,713
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4,138
|
|
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Borrowings
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1,108
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|
845
|
|
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Total interest expense
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7,821
|
|
4,983
|
|
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Net interest income
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20,916
|
|
18,377
|
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Provision for loan losses
|
243
|
|
122
|
|
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Net interest income after provision for loan losses
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20,673
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18,255
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|
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Non-interest income:
|
|
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Investment management fees
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9,340
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|
7,019
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|
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Service charges
|
94
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|
136
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|
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Net gain (loss) on the sale and call of investment securities
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(2
|
)
|
1
|
|
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Swap fees
|
1,099
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|
1,240
|
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Commitment and other fees
|
408
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|
502
|
|
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Other income
|
470
|
|
17
|
|
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Total non-interest income
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11,409
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|
8,915
|
|
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Non-interest expense:
|
|
|
||||
Compensation and employee benefits
|
13,893
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|
11,933
|
|
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Premises and occupancy costs
|
1,266
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|
1,129
|
|
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Professional fees
|
851
|
|
801
|
|
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FDIC insurance expense
|
953
|
|
522
|
|
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General insurance expense
|
301
|
|
245
|
|
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State capital shares tax
|
352
|
|
329
|
|
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Travel and entertainment expense
|
615
|
|
577
|
|
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Intangible amortization expense
|
463
|
|
390
|
|
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Other operating expenses
|
2,464
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|
2,080
|
|
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Total non-interest expense
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21,158
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|
18,006
|
|
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Income before tax
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10,924
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|
9,164
|
|
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Income tax expense
|
3,432
|
|
3,321
|
|
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Net income
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$
|
7,492
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$
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5,843
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|
|
|
|
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Earnings per common share:
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|
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Basic
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$
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0.27
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$
|
0.21
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Diluted
|
$
|
0.26
|
|
$
|
0.21
|
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Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
|
|
|
||||
Net income
|
$
|
7,492
|
|
$
|
5,843
|
|
|
|
|
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Other comprehensive income (loss):
|
|
|
||||
|
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|
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Unrealized holding gains (losses) on investment securities, net of tax expense (benefit) of
$115
and
$(327)
|
183
|
|
(650
|
)
|
||
|
|
|
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Reclassification adjustment for losses (gains) included in net income on investment securities, net of tax benefit (expense) of
$1
and
$0
|
1
|
|
(1
|
)
|
||
|
|
|
||||
Unrealized holding gains on derivatives, net of tax expense of
$31
and
$0
|
55
|
|
—
|
|
||
|
|
|
||||
Reclassification adjustment for gains included in net income on derivatives, net of tax expense of
$(15)
and
$0
|
(27
|
)
|
—
|
|
||
|
|
|
||||
Other comprehensive income (loss)
|
212
|
|
(651
|
)
|
||
|
|
|
||||
Total comprehensive income
|
$
|
7,704
|
|
$
|
5,192
|
|
(Dollars in thousands)
|
Common
Stock |
Additional
Paid-in-Capital |
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss), net
|
Treasury Stock
|
Total Shareholders' Equity
|
||||||||||||
Balance, December 31, 2015
|
$
|
281,412
|
|
$
|
10,809
|
|
$
|
45,103
|
|
$
|
(1,443
|
)
|
$
|
(9,904
|
)
|
$
|
325,977
|
|
Net income
|
—
|
|
—
|
|
5,843
|
|
—
|
|
—
|
|
5,843
|
|
||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
(651
|
)
|
—
|
|
(651
|
)
|
||||||
Exercise of stock options
|
32
|
|
(12
|
)
|
—
|
|
—
|
|
—
|
|
20
|
|
||||||
Purchase of treasury stock
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,742
|
)
|
(1,742
|
)
|
||||||
Stock-based compensation
|
—
|
|
795
|
|
—
|
|
—
|
|
—
|
|
795
|
|
||||||
Balance, March 31, 2016
|
$
|
281,444
|
|
$
|
11,592
|
|
$
|
50,946
|
|
$
|
(2,094
|
)
|
$
|
(11,646
|
)
|
$
|
330,242
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2016
|
$
|
285,480
|
|
$
|
6,782
|
|
$
|
73,744
|
|
$
|
830
|
|
$
|
(15,029
|
)
|
$
|
351,807
|
|
Net income
|
—
|
|
—
|
|
7,492
|
|
—
|
|
—
|
|
7,492
|
|
||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
212
|
|
—
|
|
212
|
|
||||||
Exercise of stock options
|
854
|
|
(519
|
)
|
—
|
|
—
|
|
—
|
|
335
|
|
||||||
Purchase of treasury stock
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,041
|
)
|
(1,041
|
)
|
||||||
Stock-based compensation
|
—
|
|
854
|
|
—
|
|
—
|
|
—
|
|
854
|
|
||||||
Balance, March 31, 2017
|
$
|
286,334
|
|
$
|
7,117
|
|
$
|
81,236
|
|
$
|
1,042
|
|
$
|
(16,070
|
)
|
$
|
359,659
|
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
Cash Flows from Operating Activities:
|
|
|
||||
Net income
|
$
|
7,492
|
|
$
|
5,843
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
||||
Depreciation and intangible amortization expense
|
848
|
|
707
|
|
||
Amortization of deferred financing costs
|
51
|
|
51
|
|
||
Provision for loan losses
|
243
|
|
122
|
|
||
Net gain on the sale of loans
|
(17
|
)
|
—
|
|
||
Stock-based compensation expense
|
854
|
|
795
|
|
||
Net loss (gain) on the sale or call of investment securities available-for-sale
|
2
|
|
(1
|
)
|
||
Net amortization of premiums and discounts
|
201
|
|
219
|
|
||
Decrease in investment management fees receivable, net
|
24
|
|
123
|
|
||
Increase in accrued interest receivable
|
(761
|
)
|
(848
|
)
|
||
Decrease in accrued interest payable
|
(446
|
)
|
(500
|
)
|
||
Bank owned life insurance income
|
(450
|
)
|
(441
|
)
|
||
Increase (decrease) in income taxes payable
|
4
|
|
(353
|
)
|
||
Decrease (increase) in prepaid income taxes
|
2,972
|
|
(284
|
)
|
||
Deferred tax provision
|
257
|
|
224
|
|
||
Decrease in accounts payable and other accrued expenses
|
(9,582
|
)
|
(10,071
|
)
|
||
Other, net
|
(400
|
)
|
(1,252
|
)
|
||
Net cash provided by (used in) operating activities
|
1,292
|
|
(5,666
|
)
|
||
Cash Flows from Investing Activities:
|
|
|
||||
Purchase of investment securities available-for-sale
|
(7,776
|
)
|
(22,289
|
)
|
||
Purchase of investment securities held-to-maturity
|
(4,967
|
)
|
—
|
|
||
Proceeds from the sale of investment securities available-for-sale
|
—
|
|
681
|
|
||
Principal repayments and maturities of investment securities available-for-sale
|
22,547
|
|
2,228
|
|
||
Investment in low income housing tax credit
|
(84
|
)
|
—
|
|
||
Investment in small business investment company
|
(235
|
)
|
—
|
|
||
Net purchase of Federal Home Loan Bank stock
|
(3,600
|
)
|
(800
|
)
|
||
Net increase in loans
|
(145,706
|
)
|
(56,064
|
)
|
||
Proceeds from loan sales
|
6,867
|
|
1,196
|
|
||
Additions to office properties and equipment
|
(226
|
)
|
(110
|
)
|
||
Net cash used in investing activities
|
(133,180
|
)
|
(75,158
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
||||
Net increase in deposit accounts
|
31,101
|
|
66,363
|
|
||
Net increase in Federal Home Loan Bank advances
|
110,000
|
|
30,000
|
|
||
Net proceeds from exercise of stock options
|
335
|
|
20
|
|
||
Purchase of treasury stock
|
(1,041
|
)
|
(1,742
|
)
|
||
Net cash provided by financing activities
|
140,395
|
|
94,641
|
|
||
Net change in cash and cash equivalents during the period
|
8,507
|
|
13,817
|
|
||
Cash and cash equivalents at beginning of the period
|
103,994
|
|
96,676
|
|
||
Cash and cash equivalents at end of the period
|
$
|
112,501
|
|
$
|
110,493
|
|
|
|
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
Supplemental Disclosure of Cash Flow Information:
|
|
|
||||
Cash paid during the period for:
|
|
|
||||
Interest
|
$
|
8,217
|
|
$
|
5,433
|
|
Income taxes
|
$
|
199
|
|
$
|
3,734
|
|
Other non-cash activity:
|
|
|
||||
Unsettled purchase of investment securities held-to-maturity
|
$
|
2,500
|
|
$
|
—
|
|
|
|
|
|
|
•
|
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2 – Observable inputs such as quoted prices for similar assets and liabilities in active markets, quoted prices for similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.
|
|
March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||
Investment securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
46,568
|
|
$
|
198
|
|
$
|
13
|
|
$
|
46,753
|
|
Trust preferred securities
|
17,743
|
|
247
|
|
45
|
|
17,945
|
|
||||
Non-agency mortgage-backed securities
|
5,750
|
|
4
|
|
—
|
|
5,754
|
|
||||
Non-agency collateralized loan obligations
|
11,109
|
|
14
|
|
28
|
|
11,095
|
|
||||
Agency collateralized mortgage obligations
|
42,565
|
|
45
|
|
228
|
|
42,382
|
|
||||
Agency mortgage-backed securities
|
23,009
|
|
241
|
|
197
|
|
23,053
|
|
||||
Agency debentures
|
4,770
|
|
57
|
|
—
|
|
4,827
|
|
||||
Equity securities
|
8,720
|
|
—
|
|
275
|
|
8,445
|
|
||||
Total investment securities available-for-sale
|
160,234
|
|
806
|
|
786
|
|
160,254
|
|
||||
Investment securities held-to-maturity:
|
|
|
|
|
||||||||
Corporate bonds
|
31,192
|
|
710
|
|
—
|
|
31,902
|
|
||||
Agency debentures
|
4,967
|
|
21
|
|
—
|
|
4,988
|
|
||||
Municipal bonds
|
25,212
|
|
218
|
|
8
|
|
25,422
|
|
||||
Total investment securities held-to-maturity
|
61,371
|
|
949
|
|
8
|
|
62,312
|
|
||||
Total
|
$
|
221,605
|
|
$
|
1,755
|
|
$
|
794
|
|
$
|
222,566
|
|
|
December 31, 2016
|
|||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||
Investment securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
53,902
|
|
$
|
164
|
|
$
|
21
|
|
$
|
54,045
|
|
Trust preferred securities
|
17,711
|
|
159
|
|
72
|
|
17,798
|
|
||||
Non-agency mortgage-backed securities
|
5,750
|
|
14
|
|
—
|
|
5,764
|
|
||||
Non-agency collateralized loan obligations
|
16,234
|
|
—
|
|
54
|
|
16,180
|
|
||||
Agency collateralized mortgage obligations
|
44,051
|
|
49
|
|
279
|
|
43,821
|
|
||||
Agency mortgage-backed securities
|
24,107
|
|
240
|
|
198
|
|
24,149
|
|
||||
Agency debentures
|
4,760
|
|
23
|
|
—
|
|
4,783
|
|
||||
Equity securities
|
8,643
|
|
—
|
|
291
|
|
8,352
|
|
||||
Total investment securities available-for-sale
|
175,158
|
|
649
|
|
915
|
|
174,892
|
|
||||
Investment securities held-to-maturity:
|
|
|
|
|
||||||||
Corporate bonds
|
28,693
|
|
596
|
|
30
|
|
29,259
|
|
||||
Municipal bonds
|
25,247
|
|
88
|
|
96
|
|
25,239
|
|
||||
Total investment securities held-to-maturity
|
53,940
|
|
684
|
|
126
|
|
54,498
|
|
||||
Total
|
$
|
229,098
|
|
$
|
1,333
|
|
$
|
1,041
|
|
$
|
229,390
|
|
|
March 31, 2017
|
||||||||||||
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Estimated
Fair Value |
|
Amortized
Cost |
Estimated
Fair Value |
||||||||
Due in one year or less
|
$
|
6,536
|
|
$
|
6,553
|
|
|
$
|
—
|
|
$
|
—
|
|
Due from one to five years
|
41,069
|
|
41,235
|
|
|
17,613
|
|
17,947
|
|
||||
Due from five to ten years
|
23,888
|
|
23,961
|
|
|
40,350
|
|
40,883
|
|
||||
Due after ten years
|
80,021
|
|
80,060
|
|
|
3,408
|
|
3,482
|
|
||||
Total debt securities
|
$
|
151,514
|
|
$
|
151,809
|
|
|
$
|
61,371
|
|
$
|
62,312
|
|
|
March 31, 2017
|
|||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
Fair value
|
Unrealized losses
|
|
Fair value
|
Unrealized losses
|
|
Fair value
|
Unrealized losses
|
||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
$
|
7,194
|
|
$
|
13
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
7,194
|
|
$
|
13
|
|
Trust preferred securities
|
—
|
|
—
|
|
|
4,513
|
|
45
|
|
|
4,513
|
|
45
|
|
||||||
Non-agency collateralized loan obligations
|
—
|
|
—
|
|
|
1,093
|
|
28
|
|
|
1,093
|
|
28
|
|
||||||
Agency collateralized mortgage obligations
|
4,337
|
|
11
|
|
|
33,603
|
|
217
|
|
|
37,940
|
|
228
|
|
||||||
Agency mortgage-backed securities
|
10,442
|
|
190
|
|
|
1,404
|
|
7
|
|
|
11,846
|
|
197
|
|
||||||
Equity securities
|
—
|
|
—
|
|
|
8,445
|
|
275
|
|
|
8,445
|
|
275
|
|
||||||
Total investment securities available-for-sale
|
21,973
|
|
214
|
|
|
49,058
|
|
572
|
|
|
71,031
|
|
786
|
|
||||||
Investment securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal bonds
|
2,690
|
|
8
|
|
|
—
|
|
—
|
|
|
2,690
|
|
8
|
|
||||||
Total investment securities held-to-maturity
|
2,690
|
|
8
|
|
|
—
|
|
—
|
|
|
2,690
|
|
8
|
|
||||||
Total temporarily impaired securities
|
$
|
24,663
|
|
$
|
222
|
|
|
$
|
49,058
|
|
$
|
572
|
|
|
$
|
73,721
|
|
$
|
794
|
|
|
December 31, 2016
|
|||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
Fair value
|
Unrealized losses
|
|
Fair value
|
Unrealized losses
|
|
Fair value
|
Unrealized losses
|
||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
$
|
10,543
|
|
$
|
21
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
10,543
|
|
$
|
21
|
|
Trust preferred securities
|
—
|
|
—
|
|
|
9,038
|
|
72
|
|
|
9,038
|
|
72
|
|
||||||
Non-agency collateralized loan obligations
|
6,191
|
|
50
|
|
|
9,990
|
|
4
|
|
|
16,181
|
|
54
|
|
||||||
Agency collateralized mortgage obligations
|
4,593
|
|
12
|
|
|
34,408
|
|
267
|
|
|
39,001
|
|
279
|
|
||||||
Agency mortgage-backed securities
|
12,292
|
|
198
|
|
|
—
|
|
—
|
|
|
12,292
|
|
198
|
|
||||||
Equity securities
|
—
|
|
—
|
|
|
8,352
|
|
291
|
|
|
8,352
|
|
291
|
|
||||||
Total investment securities available-for-sale
|
33,619
|
|
281
|
|
|
61,788
|
|
634
|
|
|
95,407
|
|
915
|
|
||||||
Investment securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
2,492
|
|
8
|
|
|
1,978
|
|
22
|
|
|
4,470
|
|
30
|
|
||||||
Municipal bonds
|
12,559
|
|
96
|
|
|
—
|
|
—
|
|
|
12,559
|
|
96
|
|
||||||
Total investment securities held-to-maturity
|
15,051
|
|
104
|
|
|
1,978
|
|
22
|
|
|
17,029
|
|
126
|
|
||||||
Total temporarily impaired securities
|
$
|
48,670
|
|
$
|
385
|
|
|
$
|
63,766
|
|
$
|
656
|
|
|
$
|
112,436
|
|
$
|
1,041
|
|
|
March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Loans held-for-investment, before deferred fees
|
$
|
1,833,733
|
|
$
|
586,039
|
|
$
|
1,117,094
|
|
$
|
3,536,866
|
|
Deferred loan costs (fees)
|
3,474
|
|
(193
|
)
|
(3,057
|
)
|
224
|
|
||||
Loans held-for-investment, net of deferred fees
|
1,837,207
|
|
585,846
|
|
1,114,037
|
|
3,537,090
|
|
||||
Allowance for loan losses
|
(1,421
|
)
|
(10,436
|
)
|
(4,328
|
)
|
(16,185
|
)
|
||||
Loans held-for-investment, net
|
$
|
1,835,786
|
|
$
|
575,410
|
|
$
|
1,109,709
|
|
$
|
3,520,905
|
|
|
December 31, 2016
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Loans held-for-investment, before deferred fees
|
$
|
1,732,578
|
|
$
|
587,791
|
|
$
|
1,080,637
|
|
$
|
3,401,006
|
|
Deferred loan costs (fees)
|
3,350
|
|
(368
|
)
|
(2,934
|
)
|
48
|
|
||||
Loans held-for-investment, net of deferred fees
|
1,735,928
|
|
587,423
|
|
1,077,703
|
|
3,401,054
|
|
||||
Allowance for loan losses
|
(1,424
|
)
|
(12,326
|
)
|
(5,012
|
)
|
(18,762
|
)
|
||||
Loans held-for-investment, net
|
$
|
1,734,504
|
|
$
|
575,097
|
|
$
|
1,072,691
|
|
$
|
3,382,292
|
|
|
March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Pass
|
$
|
1,836,728
|
|
$
|
546,353
|
|
$
|
1,114,037
|
|
$
|
3,497,118
|
|
Special mention
|
—
|
|
18,350
|
|
—
|
|
18,350
|
|
||||
Substandard
|
479
|
|
21,143
|
|
—
|
|
21,622
|
|
||||
Loans held-for-investment
|
$
|
1,837,207
|
|
$
|
585,846
|
|
$
|
1,114,037
|
|
$
|
3,537,090
|
|
|
December 31, 2016
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Pass
|
$
|
1,735,404
|
|
$
|
545,276
|
|
$
|
1,077,703
|
|
$
|
3,358,383
|
|
Special mention
|
—
|
|
18,776
|
|
—
|
|
18,776
|
|
||||
Substandard
|
524
|
|
23,371
|
|
—
|
|
23,895
|
|
||||
Loans held-for-investment
|
$
|
1,735,928
|
|
$
|
587,423
|
|
$
|
1,077,703
|
|
$
|
3,401,054
|
|
|
Three Months Ended March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Balance, beginning of period
|
$
|
1,424
|
|
$
|
12,326
|
|
$
|
5,012
|
|
$
|
18,762
|
|
Provision (credit) for loan losses
|
(3
|
)
|
930
|
|
(684
|
)
|
243
|
|
||||
Charge-offs
|
—
|
|
(2,889
|
)
|
—
|
|
(2,889
|
)
|
||||
Recoveries
|
—
|
|
69
|
|
—
|
|
69
|
|
||||
Balance, end of period
|
$
|
1,421
|
|
$
|
10,436
|
|
$
|
4,328
|
|
$
|
16,185
|
|
|
Three Months Ended March 31, 2016
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Balance, beginning of period
|
$
|
1,566
|
|
$
|
11,064
|
|
$
|
5,344
|
|
$
|
17,974
|
|
Provision (credit) for loan losses
|
(150
|
)
|
(50
|
)
|
322
|
|
122
|
|
||||
Charge-offs
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Recoveries
|
—
|
|
450
|
|
—
|
|
450
|
|
||||
Balance, end of period
|
$
|
1,416
|
|
$
|
11,464
|
|
$
|
5,666
|
|
$
|
18,546
|
|
|
March 31, 2017
|
|||||||||||||||||
(Dollars in thousands)
|
30-59 Days Past Due
|
60-89 Days Past Due
|
Loans Past Due 90 Days or More
|
Total Past Due
|
Current
|
Total
|
||||||||||||
Private banking
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,837,207
|
|
$
|
1,837,207
|
|
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
585,846
|
|
585,846
|
|
||||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
1,114,037
|
|
1,114,037
|
|
||||||
Loans held-for-investment
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,537,090
|
|
$
|
3,537,090
|
|
|
December 31, 2016
|
|||||||||||||||||
(Dollars in thousands)
|
30-59 Days Past Due
|
60-89 Days Past Due
|
Loans Past Due 90 Days or More
|
Total Past Due
|
Current
|
Total
|
||||||||||||
Private banking
|
$
|
—
|
|
$
|
—
|
|
$
|
224
|
|
$
|
224
|
|
$
|
1,735,704
|
|
$
|
1,735,928
|
|
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
587,423
|
|
587,423
|
|
||||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
1,077,703
|
|
1,077,703
|
|
||||||
Loans held-for-investment
|
$
|
—
|
|
$
|
—
|
|
$
|
224
|
|
$
|
224
|
|
$
|
3,400,830
|
|
$
|
3,401,054
|
|
|
As of and for the Three Months Ended March 31, 2017
|
||||||||||||||
(Dollars in thousands)
|
Recorded Investment
|
Unpaid Principal Balance
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||
With a related allowance recorded:
|
|
|
|
|
|
||||||||||
Private banking
|
$
|
479
|
|
$
|
629
|
|
$
|
479
|
|
$
|
496
|
|
$
|
—
|
|
Commercial and industrial
|
8,733
|
|
18,220
|
|
3,786
|
|
9,280
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total with a related allowance recorded
|
9,212
|
|
18,849
|
|
4,265
|
|
9,776
|
|
—
|
|
|||||
Without a related allowance recorded:
|
|
|
|
|
|
||||||||||
Private banking
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial and industrial
|
4,841
|
|
7,435
|
|
—
|
|
6,317
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total without a related allowance recorded
|
4,841
|
|
7,435
|
|
—
|
|
6,317
|
|
—
|
|
|||||
Total:
|
|
|
|
|
|
||||||||||
Private banking
|
479
|
|
629
|
|
479
|
|
496
|
|
—
|
|
|||||
Commercial and industrial
|
13,574
|
|
25,655
|
|
3,786
|
|
15,597
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total
|
$
|
14,053
|
|
$
|
26,284
|
|
$
|
4,265
|
|
$
|
16,093
|
|
$
|
—
|
|
|
As of and for the Twelve Months Ended December 31, 2016
|
||||||||||||||
(Dollars in thousands)
|
Recorded Investment
|
Unpaid Principal Balance
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||
With a related allowance recorded:
|
|
|
|
|
|
||||||||||
Private banking
|
$
|
517
|
|
$
|
656
|
|
$
|
517
|
|
$
|
592
|
|
$
|
—
|
|
Commercial and industrial
|
17,273
|
|
26,126
|
|
6,422
|
|
19,158
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total with a related allowance recorded
|
17,790
|
|
26,782
|
|
6,939
|
|
19,750
|
|
—
|
|
|||||
Without a related allowance recorded:
|
|
|
|
|
|
||||||||||
Private banking
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial and industrial
|
471
|
|
487
|
|
—
|
|
485
|
|
26
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total without a related allowance recorded
|
471
|
|
487
|
|
—
|
|
485
|
|
26
|
|
|||||
Total:
|
|
|
|
|
|
||||||||||
Private banking
|
517
|
|
656
|
|
517
|
|
592
|
|
—
|
|
|||||
Commercial and industrial
|
17,744
|
|
26,613
|
|
6,422
|
|
19,643
|
|
26
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total
|
$
|
18,261
|
|
$
|
27,269
|
|
$
|
6,939
|
|
$
|
20,235
|
|
$
|
26
|
|
|
March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
479
|
|
$
|
3,786
|
|
$
|
—
|
|
$
|
4,265
|
|
Collectively evaluated for impairment
|
942
|
|
6,650
|
|
4,328
|
|
11,920
|
|
||||
Total allowance for loan losses
|
$
|
1,421
|
|
$
|
10,436
|
|
$
|
4,328
|
|
$
|
16,185
|
|
Loans held-for-investment:
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
479
|
|
$
|
13,574
|
|
$
|
—
|
|
$
|
14,053
|
|
Collectively evaluated for impairment
|
1,836,728
|
|
572,272
|
|
1,114,037
|
|
3,523,037
|
|
||||
Loans held-for-investment
|
$
|
1,837,207
|
|
$
|
585,846
|
|
$
|
1,114,037
|
|
$
|
3,537,090
|
|
|
December 31, 2016
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
517
|
|
$
|
6,422
|
|
$
|
—
|
|
$
|
6,939
|
|
Collectively evaluated for impairment
|
907
|
|
5,904
|
|
5,012
|
|
11,823
|
|
||||
Total allowance for loan losses
|
$
|
1,424
|
|
$
|
12,326
|
|
$
|
5,012
|
|
$
|
18,762
|
|
Loans held-for-investment:
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
517
|
|
$
|
17,744
|
|
$
|
—
|
|
$
|
18,261
|
|
Collectively evaluated for impairment
|
1,735,411
|
|
569,679
|
|
1,077,703
|
|
3,382,793
|
|
||||
Loans held-for-investment
|
$
|
1,735,928
|
|
$
|
587,423
|
|
$
|
1,077,703
|
|
$
|
3,401,054
|
|
(Dollars in thousands)
|
March 31,
2017 |
December 31,
2016 |
||||
Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring:
|
|
|
||||
Performing loans accruing interest
|
$
|
—
|
|
$
|
471
|
|
Non-accrual loans
|
13,574
|
|
17,273
|
|
||
Total troubled debt restructurings
|
$
|
13,574
|
|
$
|
17,744
|
|
|
Interest Rate
Range as of |
|
Weighted Average
Interest Rate as of |
|
Balance as of
|
|||||||||
(Dollars in thousands)
|
March 31,
2017 |
|
March 31,
2017 |
December 31,
2016 |
|
March 31,
2017 |
December 31,
2016 |
|||||||
Demand and savings accounts:
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing checking accounts
|
—
|
|
|
—
|
|
—
|
|
|
$
|
195,840
|
|
$
|
230,226
|
|
Interest-bearing checking accounts
|
0.05 to 1.11%
|
|
|
0.88
|
%
|
0.56
|
%
|
|
273,558
|
|
218,984
|
|
||
Money market deposit accounts
|
0.10 to 1.50%
|
|
|
0.94
|
%
|
0.82
|
%
|
|
1,888,325
|
|
1,938,707
|
|
||
Total demand and savings accounts
|
|
|
|
|
|
2,357,723
|
|
2,387,917
|
|
|||||
Certificates of deposit
|
0.50 to 1.70%
|
|
|
1.03
|
%
|
0.95
|
%
|
|
960,157
|
|
898,862
|
|
||
Total deposits
|
|
|
|
|
|
$
|
3,317,880
|
|
$
|
3,286,779
|
|
|||
Average rate paid on interest-bearing accounts
|
|
|
0.96
|
%
|
0.84
|
%
|
|
|
|
(Dollars in thousands)
|
March 31,
2017 |
December 31,
2016 |
||||
12 months or less
|
$
|
831,051
|
|
$
|
751,204
|
|
12 months to 24 months
|
98,858
|
|
121,011
|
|
||
24 months to 36 months
|
29,999
|
|
26,647
|
|
||
36 months to 48 months
|
249
|
|
—
|
|
||
48 months to 60 months
|
—
|
|
—
|
|
||
Over 60 months
|
—
|
|
—
|
|
||
Total
|
$
|
960,157
|
|
$
|
898,862
|
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
Interest-bearing checking accounts
|
$
|
362
|
|
$
|
153
|
|
Money market deposit accounts
|
4,098
|
|
2,207
|
|
||
Certificates of deposit
|
2,253
|
|
1,778
|
|
||
Total interest expense on deposits
|
$
|
6,713
|
|
$
|
4,138
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||
(Dollars in thousands)
|
Interest Rate
|
Ending Balance
|
Maturity Date
|
|
Interest Rate
|
Ending Balance
|
Maturity Date
|
||||
FHLB borrowings:
|
|
|
|
|
|
|
|
||||
Issued
3/31/2017
|
1.02%
|
$
|
215,000
|
|
4/3/2017
|
|
|
$
|
—
|
|
|
Issued
3/29/2017
|
1.07%
|
100,000
|
|
6/29/2017
|
|
|
—
|
|
|
||
Issued
12/30/2016
|
|
—
|
|
|
|
0.77%
|
105,000
|
|
1/3/2017
|
||
Issued
12/29/2016
|
|
—
|
|
|
|
0.85%
|
100,000
|
|
3/29/2017
|
||
Subordinated notes payable (net of debt issuance costs of
$439
and
$490)
|
5.75%
|
34,561
|
|
7/1/2019
|
|
5.75%
|
34,510
|
|
7/1/2019
|
||
Total borrowings, net
|
|
$
|
349,561
|
|
|
|
|
$
|
239,510
|
|
|
|
March 31, 2017
|
||||||||||||||||
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To be Well Capitalized Under Prompt Corrective Action Provisions
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
Total risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
322,198
|
|
12.39
|
%
|
|
$
|
208,110
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
316,207
|
|
12.29
|
%
|
|
$
|
205,915
|
|
8.00
|
%
|
|
$
|
257,393
|
|
10.00
|
%
|
Tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
297,060
|
|
11.42
|
%
|
|
$
|
156,082
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
304,558
|
|
11.83
|
%
|
|
$
|
154,436
|
|
6.00
|
%
|
|
$
|
205,915
|
|
8.00
|
%
|
Common equity tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
297,060
|
|
11.42
|
%
|
|
$
|
117,062
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
304,558
|
|
11.83
|
%
|
|
$
|
115,827
|
|
4.50
|
%
|
|
$
|
167,306
|
|
6.50
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
297,060
|
|
7.56
|
%
|
|
$
|
157,159
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
304,558
|
|
7.80
|
%
|
|
$
|
156,093
|
|
4.00
|
%
|
|
$
|
195,116
|
|
5.00
|
%
|
|
December 31, 2016
|
||||||||||||||||
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To be Well Capitalized Under Prompt Corrective Action Provisions
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
Total risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
325,122
|
|
12.66
|
%
|
|
$
|
205,488
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
314,419
|
|
12.39
|
%
|
|
$
|
203,030
|
|
8.00
|
%
|
|
$
|
253,787
|
|
10.00
|
%
|
Tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
295,089
|
|
11.49
|
%
|
|
$
|
154,116
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
298,093
|
|
11.75
|
%
|
|
$
|
152,272
|
|
6.00
|
%
|
|
$
|
203,030
|
|
8.00
|
%
|
Common equity tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
295,089
|
|
11.49
|
%
|
|
$
|
115,587
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
298,093
|
|
11.75
|
%
|
|
$
|
114,204
|
|
4.50
|
%
|
|
$
|
164,962
|
|
6.50
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
295,089
|
|
7.90
|
%
|
|
$
|
149,369
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
298,093
|
|
8.04
|
%
|
|
$
|
148,252
|
|
4.00
|
%
|
|
$
|
185,316
|
|
5.00
|
%
|
|
Number of
Common Shares Outstanding |
|
Balance, December 31, 2015
|
28,056,195
|
|
Issuance of restricted common stock
|
394,309
|
|
Forfeitures of restricted common stock
|
(4,000
|
)
|
Exercise of stock options
|
2,500
|
|
Purchase of treasury stock
|
(148,206
|
)
|
Balance, March 31, 2016
|
28,300,798
|
|
|
|
|
Balance, December 31, 2016
|
28,415,654
|
|
Issuance of restricted common stock
|
324,675
|
|
Forfeitures of restricted common stock
|
—
|
|
Exercise of stock options
|
36,500
|
|
Purchase of treasury stock
|
(44,866
|
)
|
Balance, March 31, 2017
|
28,731,963
|
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands, except per share data)
|
2017
|
2016
|
||||
|
|
|
||||
Net income available to common shareholders
|
$
|
7,492
|
|
$
|
5,843
|
|
Weighted average common shares outstanding:
|
|
|
||||
Basic
|
27,627,285
|
|
27,679,445
|
|
||
Restricted stock - dilutive
|
551,025
|
|
114,326
|
|
||
Stock options - dilutive
|
539,196
|
|
447,579
|
|
||
Diluted
|
28,717,506
|
|
28,241,350
|
|
||
|
|
|
||||
Earnings per common share:
|
|
|
||||
Basic
|
$
|
0.27
|
|
$
|
0.21
|
|
Diluted
|
$
|
0.26
|
|
$
|
0.21
|
|
|
Three Months Ended March 31,
|
|||
|
2017
|
2016
|
||
Anti-dilutive shares
(1)
|
5,000
|
|
626,893
|
|
(1)
|
Included stock options and restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive.
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||
|
as of March 31, 2017
|
|
as of March 31, 2017
|
||||||
(Dollars in thousands)
|
Balance Sheet Location
|
Fair Value
|
|
Balance Sheet Location
|
Fair Value
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
Interest rate products
|
Other assets
|
$
|
1,837
|
|
|
Other liabilities
|
$
|
58
|
|
Derivatives
not
designated as hedging instruments:
|
|
|
|
|
|
||||
Interest rate products
|
Other assets
|
$
|
10,518
|
|
|
Other liabilities
|
$
|
10,811
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||
|
as of December 31, 2016
|
|
as of December 31, 2016
|
||||||
(Dollars in thousands)
|
Balance Sheet Location
|
Fair Value
|
|
Balance Sheet Location
|
Fair Value
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
Interest rate products
|
Other assets
|
$
|
1,793
|
|
|
Other liabilities
|
$
|
80
|
|
Derivatives
not
designated as hedging instruments:
|
|
|
|
|
|
||||
Interest rate products
|
Other assets
|
$
|
10,324
|
|
|
Other liabilities
|
$
|
10,529
|
|
|
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
|
|
2017
|
2016
|
||||
Derivatives designated as hedging instruments:
|
Location of Gain (Loss) Recognized in Income on Derivative
|
|
Amount of Gain (Loss) Recognized in Income on Derivative
|
|||||
Interest rate products
|
Interest income
|
|
$
|
(15
|
)
|
$
|
(24
|
)
|
|
Non-interest income
|
|
2
|
|
1
|
|
||
|
Interest expense
|
|
42
|
|
—
|
|
||
Total
|
|
|
$
|
29
|
|
$
|
(23
|
)
|
|
|
|
|
|
||||
Derivatives
not
designated as hedging instruments:
|
Location of Gain (Loss) Recognized in Income on Derivative
|
|
Amount of Gain (Loss) Recognized in Income on Derivative
|
|||||
Interest rate products
|
Non-interest income
|
|
$
|
(94
|
)
|
$
|
(455
|
)
|
Total
|
|
|
$
|
(94
|
)
|
$
|
(455
|
)
|
•
|
Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.
|
•
|
Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing.
|
•
|
Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include assumptions of a source independent of the reporting entity or the reporting entity’s own assumptions that are supported by little or no market activity or observable inputs.
|
|
March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total Assets /
Liabilities at Fair Value |
||||||||
Financial assets:
|
|
|
|
|
||||||||
Investment securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
—
|
|
$
|
46,753
|
|
$
|
—
|
|
$
|
46,753
|
|
Trust preferred securities
|
—
|
|
17,945
|
|
—
|
|
17,945
|
|
||||
Non-agency mortgage-backed securities
|
—
|
|
5,754
|
|
—
|
|
5,754
|
|
||||
Non-agency collateralized loan obligations
|
—
|
|
11,095
|
|
—
|
|
11,095
|
|
||||
Agency collateralized mortgage obligations
|
—
|
|
42,382
|
|
—
|
|
42,382
|
|
||||
Agency mortgage-backed securities
|
—
|
|
23,053
|
|
—
|
|
23,053
|
|
||||
Agency debentures
|
—
|
|
4,827
|
|
—
|
|
4,827
|
|
||||
Equity securities
|
8,445
|
|
—
|
|
—
|
|
8,445
|
|
||||
Interest rate swaps
|
—
|
|
12,355
|
|
—
|
|
12,355
|
|
||||
Total financial assets
|
8,445
|
|
164,164
|
|
—
|
|
172,609
|
|
||||
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
10,869
|
|
—
|
|
10,869
|
|
||||
Total financial liabilities
|
$
|
—
|
|
$
|
10,869
|
|
$
|
—
|
|
$
|
10,869
|
|
|
December 31, 2016
|
|||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total Assets /
Liabilities at Fair Value |
||||||||
Financial assets:
|
|
|
|
|
||||||||
Investment securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
—
|
|
$
|
54,045
|
|
$
|
—
|
|
$
|
54,045
|
|
Trust preferred securities
|
—
|
|
17,798
|
|
—
|
|
17,798
|
|
||||
Non-agency mortgage-backed securities
|
—
|
|
5,764
|
|
—
|
|
5,764
|
|
||||
Non-agency collateralized loan obligations
|
—
|
|
16,180
|
|
—
|
|
16,180
|
|
||||
Agency collateralized mortgage obligations
|
—
|
|
43,821
|
|
—
|
|
43,821
|
|
||||
Agency mortgage-backed securities
|
—
|
|
24,149
|
|
—
|
|
24,149
|
|
||||
Agency debentures
|
—
|
|
4,783
|
|
—
|
|
4,783
|
|
||||
Equity securities
|
8,352
|
|
—
|
|
—
|
|
8,352
|
|
||||
Interest rate swaps
|
—
|
|
12,117
|
|
—
|
|
12,117
|
|
||||
Total financial assets
|
8,352
|
|
178,657
|
|
—
|
|
187,009
|
|
||||
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
10,609
|
|
—
|
|
10,609
|
|
||||
Total financial liabilities
|
$
|
—
|
|
$
|
10,609
|
|
$
|
—
|
|
$
|
10,609
|
|
|
March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total Assets
at Fair Value |
||||||||
Loans measured for impairment, net
|
$
|
—
|
|
$
|
—
|
|
$
|
9,788
|
|
$
|
9,788
|
|
Other real estate owned
|
—
|
|
—
|
|
4,178
|
|
4,178
|
|
||||
Total assets
|
$
|
—
|
|
$
|
—
|
|
$
|
13,966
|
|
$
|
13,966
|
|
|
December 31, 2016
|
|||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total Assets
at Fair Value |
||||||||
Loans measured for impairment, net
|
$
|
—
|
|
$
|
—
|
|
$
|
10,851
|
|
$
|
10,851
|
|
Other real estate owned
|
—
|
|
—
|
|
4,178
|
|
4,178
|
|
||||
Total assets
|
$
|
—
|
|
$
|
—
|
|
$
|
15,029
|
|
$
|
15,029
|
|
|
March 31, 2017
|
|||||||||
(Dollars in thousands)
|
Fair Value
|
|
Valuation Techniques
(1)
|
|
Significant Unobservable Inputs
|
|
Weighted Average
Discount Rate |
|||
Loans measured for impairment, net
|
$
|
9,788
|
|
|
Discounted cash flow
|
|
Discount due to restructured nature of operations
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|||
Other real estate owned
|
$
|
4,178
|
|
|
Appraisal value
|
|
Discount due to salability conditions
|
|
10
|
%
|
(1)
|
Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.
|
|
December 31, 2016
|
|||||||||
(Dollars in thousands)
|
Fair Value
|
|
Valuation Techniques
(1)
|
|
Significant Unobservable Inputs
|
|
Weighted Average
Discount Rate |
|||
Loans measured for impairment, net
|
$
|
10,851
|
|
|
Discounted cash flow
|
|
Discount due to restructured nature of operations
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|||
Other real estate owned
|
$
|
4,178
|
|
|
Appraisal value
|
|
Discount due to salability conditions
|
|
10
|
%
|
(1)
|
Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||
(Dollars in thousands)
|
Fair Value
Level |
|
Carrying
Amount |
Estimated
Fair Value |
|
Carrying
Amount |
Estimated
Fair Value |
||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
1
|
|
$
|
112,501
|
|
$
|
112,501
|
|
|
$
|
103,994
|
|
$
|
103,994
|
|
Investment securities available-for-sale: debt
|
2
|
|
151,809
|
|
151,809
|
|
|
166,540
|
|
166,540
|
|
||||
Investment securities available-for-sale: equity
|
1
|
|
8,445
|
|
8,445
|
|
|
8,352
|
|
8,352
|
|
||||
Investment securities held-to-maturity
|
2
|
|
61,371
|
|
62,312
|
|
|
53,940
|
|
54,498
|
|
||||
Federal Home Loan Bank stock
|
2
|
|
13,241
|
|
13,241
|
|
|
9,641
|
|
9,641
|
|
||||
Loans held-for-investment, net
|
3
|
|
3,520,905
|
|
3,507,011
|
|
|
3,382,292
|
|
3,362,031
|
|
||||
Accrued interest receivable
|
2
|
|
10,375
|
|
10,375
|
|
|
9,614
|
|
9,614
|
|
||||
Investment management fees receivable, net
|
2
|
|
7,725
|
|
7,725
|
|
|
7,749
|
|
7,749
|
|
||||
Bank owned life insurance
|
2
|
|
65,265
|
|
65,265
|
|
|
64,815
|
|
64,815
|
|
||||
Other real estate owned
|
3
|
|
4,178
|
|
4,178
|
|
|
4,178
|
|
4,178
|
|
||||
Interest rate swaps
|
2
|
|
12,355
|
|
12,355
|
|
|
12,117
|
|
12,117
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
2
|
|
$
|
3,317,880
|
|
$
|
3,317,685
|
|
|
$
|
3,286,779
|
|
$
|
3,286,553
|
|
Borrowings, net
|
2
|
|
349,561
|
|
350,056
|
|
|
239,510
|
|
240,143
|
|
||||
Interest rate swaps
|
2
|
|
10,869
|
|
10,869
|
|
|
10,609
|
|
10,609
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||
(Dollars in thousands)
|
Investment Securities
|
Derivatives
|
Total
|
|
Investment Securities
|
Derivatives
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
(297
|
)
|
$
|
1,127
|
|
$
|
830
|
|
|
$
|
(1,443
|
)
|
$
|
—
|
|
$
|
(1,443
|
)
|
Change in unrealized holding gains (losses)
|
183
|
|
55
|
|
238
|
|
|
(650
|
)
|
—
|
|
(650
|
)
|
||||||
Losses (gains) reclassified from other comprehensive income
(1)
|
1
|
|
(27
|
)
|
(26
|
)
|
|
(1
|
)
|
—
|
|
(1
|
)
|
||||||
Net other comprehensive income (loss)
|
184
|
|
28
|
|
212
|
|
|
(651
|
)
|
—
|
|
(651
|
)
|
||||||
Balance, end of period
|
$
|
(113
|
)
|
$
|
1,155
|
|
$
|
1,042
|
|
|
$
|
(2,094
|
)
|
$
|
—
|
|
$
|
(2,094
|
)
|
(1)
|
Consisted of a net realized
loss
on investment securities of
$2,000
, net of income tax
benefit
of
$1,000
for the
three months ended March 31, 2017
; a net realized
gain
on investment securities of
$1,000
, net of income tax
expense
of
$0
for the
three months ended March 31, 2016
; and a net realized
gain
on derivatives of
$42,000
and
$0
, net of income tax
expense
of
$15,000
and
$0
for the
three months ended March 31, 2017
and
2016
, respectively.
|
•
|
The Bank segment provides commercial banking and private banking services to middle-market businesses and high-net-worth individuals through the TriState Capital Bank subsidiary.
|
•
|
The Investment Management segment provides advisory and sub-advisory investment management services to primarily institutional plan sponsors through the Chartwell Investment Partners, LLC subsidiary and also supports distribution and marketing efforts for Chartwell’s proprietary investment products through the Chartwell TSC Securities Corp. subsidiary.
Chartwell also provides securities portfolio advisory services to the Bank. Chartwell’s assets under management was
$8.19 billion
as of
March 31, 2017
, which included
2.7%
related to the Company’s securities portfolio.
|
(Dollars in thousands)
|
March 31,
2017 |
December 31,
2016 |
||||||
Assets:
|
|
|||||||
Bank
|
$
|
3,989,550
|
|
$
|
3,846,353
|
|
||
Investment management
|
79,014
|
|
85,072
|
|
||||
Parent and other
|
6,473
|
|
(968
|
)
|
||||
Total assets
|
$
|
4,075,037
|
|
$
|
3,930,457
|
|
|
Three Months Ended March 31, 2017
|
|
Three Months Ended March 31, 2016
|
||||||||||||||||||||||
(Dollars in thousands)
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
||||||||||||||||
Income statement data:
|
|
|
|
||||||||||||||||||||||
Interest income
|
$
|
28,661
|
|
$
|
—
|
|
$
|
76
|
|
$
|
28,737
|
|
|
$
|
23,287
|
|
$
|
—
|
|
$
|
73
|
|
$
|
23,360
|
|
Interest expense
|
7,270
|
|
—
|
|
551
|
|
7,821
|
|
|
4,432
|
|
—
|
|
551
|
|
4,983
|
|
||||||||
Net interest income (loss)
|
21,391
|
|
—
|
|
(475
|
)
|
20,916
|
|
|
18,855
|
|
—
|
|
(478
|
)
|
18,377
|
|
||||||||
Provision for loan losses
|
243
|
|
—
|
|
—
|
|
243
|
|
|
122
|
|
—
|
|
—
|
|
122
|
|
||||||||
Net interest income (loss) after provision for loan losses
|
21,148
|
|
—
|
|
(475
|
)
|
20,673
|
|
|
18,733
|
|
—
|
|
(478
|
)
|
18,255
|
|
||||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
—
|
|
9,396
|
|
(56
|
)
|
9,340
|
|
|
—
|
|
7,073
|
|
(54
|
)
|
7,019
|
|
||||||||
Net gain (loss) on the sale and call of investment securities
|
(2
|
)
|
—
|
|
—
|
|
(2
|
)
|
|
1
|
|
—
|
|
—
|
|
1
|
|
||||||||
Other non-interest income
|
2,070
|
|
1
|
|
—
|
|
2,071
|
|
|
1,895
|
|
—
|
|
—
|
|
1,895
|
|
||||||||
Total non-interest income
|
2,068
|
|
9,397
|
|
(56
|
)
|
11,409
|
|
|
1,896
|
|
7,073
|
|
(54
|
)
|
8,915
|
|
||||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Intangible amortization expense
|
—
|
|
463
|
|
—
|
|
463
|
|
|
—
|
|
390
|
|
—
|
|
390
|
|
||||||||
Other non-interest expense
|
13,605
|
|
7,039
|
|
51
|
|
20,695
|
|
|
12,325
|
|
5,293
|
|
(2
|
)
|
17,616
|
|
||||||||
Total non-interest expense
|
13,605
|
|
7,502
|
|
51
|
|
21,158
|
|
|
12,325
|
|
5,683
|
|
(2
|
)
|
18,006
|
|
||||||||
Income (loss) before tax
|
9,611
|
|
1,895
|
|
(582
|
)
|
10,924
|
|
|
8,304
|
|
1,390
|
|
(530
|
)
|
9,164
|
|
||||||||
Income tax expense (benefit)
|
2,928
|
|
727
|
|
(223
|
)
|
3,432
|
|
|
2,990
|
|
532
|
|
(201
|
)
|
3,321
|
|
||||||||
Net income (loss)
|
$
|
6,683
|
|
$
|
1,168
|
|
$
|
(359
|
)
|
$
|
7,492
|
|
|
$
|
5,314
|
|
$
|
858
|
|
$
|
(329
|
)
|
$
|
5,843
|
|
•
|
Deterioration of our asset quality;
|
•
|
Our ability to prudently manage our growth and execute our strategy;
|
•
|
Changes in the value of collateral securing our loans;
|
•
|
Business and economic conditions generally and in the financial services industry, nationally and within our local market area;
|
•
|
Changes in management personnel;
|
•
|
Our ability to maintain important deposit customer relationships, our reputation and otherwise avoid liquidity risks;
|
•
|
Our ability to provide investment management performance competitive with our peers and benchmarks;
|
•
|
Operational risks associated with our business;
|
•
|
Volatility and direction of market interest rates;
|
•
|
Increased competition in the financial services industry, particularly from regional and national institutions;
|
•
|
Changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters;
|
•
|
Further government intervention in the U.S. financial system;
|
•
|
Natural disasters and adverse weather, acts of terrorism, an outbreak of hostilities or other international or domestic calamities, and other matters beyond our control; and
|
•
|
Other factors that are discussed in the section entitled “
Risk Factors
,” in our Annual Report on Form 10-K, filed with the SEC on
February 14, 2017
, which is accessible at www.sec.gov.
|
(Dollars in thousands, except per share data)
|
March 31,
2017 |
December 31,
2016 |
||||
Tangible book value per common share:
|
|
|
||||
Total shareholders' equity
|
$
|
359,659
|
|
$
|
351,807
|
|
Less: intangible assets
|
66,746
|
|
67,209
|
|
||
Tangible common equity
|
$
|
292,913
|
|
$
|
284,598
|
|
Common shares outstanding
|
28,731,963
|
|
28,415,654
|
|
||
Tangible book value per common share
|
$
|
10.19
|
|
$
|
10.02
|
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
Pre-tax, pre-provision net revenue:
|
|
|
||||
Net interest income
|
$
|
20,916
|
|
$
|
18,377
|
|
Total non-interest income
|
11,409
|
|
8,915
|
|
||
Less: net gain (loss) on the sale and call of investment securities
|
(2
|
)
|
1
|
|
||
Total revenue
|
32,327
|
|
27,291
|
|
||
Less: total non-interest expense
|
21,158
|
|
18,006
|
|
||
Pre-tax, pre-provision net revenue
|
$
|
11,169
|
|
$
|
9,285
|
|
|
|
|
||||
Efficiency ratio:
|
|
|
||||
Total non-interest expense
|
$
|
21,158
|
|
$
|
18,006
|
|
Less: acquisition related items
|
—
|
|
1
|
|
||
Less: intangible amortization expenses
|
463
|
|
390
|
|
||
Total non-interest expense (numerator)
|
$
|
20,695
|
|
$
|
17,615
|
|
Total revenue (denominator)
|
$
|
32,327
|
|
$
|
27,291
|
|
Efficiency ratio
|
64.02
|
%
|
64.55
|
%
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
Bank pre-tax, pre-provision net revenue:
|
|
|
||||
Net interest income
|
$
|
21,391
|
|
$
|
18,855
|
|
Total non-interest income
|
2,068
|
|
1,896
|
|
||
Less: net gain (loss) on the sale and call of investment securities
|
(2
|
)
|
1
|
|
||
Total revenue
|
23,461
|
|
20,750
|
|
||
Less: total non-interest expense
|
13,605
|
|
12,325
|
|
||
Pre-tax, pre-provision net revenue
|
$
|
9,856
|
|
$
|
8,425
|
|
|
|
|
||||
Bank efficiency ratio:
|
|
|
||||
Total non-interest expense (numerator)
|
$
|
13,605
|
|
$
|
12,325
|
|
Total revenue (denominator)
|
$
|
23,461
|
|
$
|
20,750
|
|
Bank efficiency ratio
|
57.99
|
%
|
59.40
|
%
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
Investment Management EBITDA:
|
|
|
||||
Net income
|
$
|
1,168
|
|
$
|
858
|
|
Interest expense
|
—
|
|
—
|
|
||
Income taxes expense
|
727
|
|
532
|
|
||
Depreciation expense
|
117
|
|
21
|
|
||
Intangible amortization expense
|
463
|
|
390
|
|
||
EBITDA
|
2,475
|
|
1,801
|
|
||
Acquisition related items
|
—
|
|
1
|
|
||
Adjusted EBITDA
|
$
|
2,475
|
|
$
|
1,802
|
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
Interest income
|
$
|
28,737
|
|
$
|
23,360
|
|
Fully taxable equivalent adjustment
|
61
|
|
72
|
|
||
Interest income adjusted
|
28,798
|
|
23,432
|
|
||
Less: interest expense
|
7,821
|
|
4,983
|
|
||
Net interest income adjusted
|
$
|
20,977
|
|
$
|
18,449
|
|
|
|
|
||||
Yield on earning assets
|
3.07
|
%
|
2.97
|
%
|
||
Cost of interest-bearing liabilities
|
0.94
|
%
|
0.71
|
%
|
||
Net interest spread
|
2.13
|
%
|
2.26
|
%
|
||
Net interest margin
(1)
|
2.24
|
%
|
2.34
|
%
|
(1)
|
Net interest margin is calculated on a fully taxable equivalent basis.
|
|
Three Months Ended March 31,
|
||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest Income
(1)
/
Expense |
Average
Yield/ Rate |
|
Average
Balance |
Interest Income
(1)
/
Expense |
Average
Yield/ Rate |
||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||||
Interest-earning deposits
|
$
|
114,709
|
|
$
|
238
|
|
0.84
|
%
|
|
$
|
102,680
|
|
$
|
133
|
|
0.52
|
%
|
Federal funds sold
|
6,427
|
|
11
|
|
0.69
|
%
|
|
6,053
|
|
5
|
|
0.33
|
%
|
||||
Investment securities available-for-sale
|
168,083
|
|
854
|
|
2.06
|
%
|
|
176,307
|
|
743
|
|
1.69
|
%
|
||||
Investment securities held-to-maturity
|
54,591
|
|
574
|
|
4.26
|
%
|
|
47,278
|
|
466
|
|
3.96
|
%
|
||||
FHLB stock
|
12,376
|
|
102
|
|
3.34
|
%
|
|
8,602
|
|
97
|
|
4.54
|
%
|
||||
Total loans
|
3,448,837
|
|
27,019
|
|
3.18
|
%
|
|
2,834,964
|
|
21,988
|
|
3.12
|
%
|
||||
Total interest-earning assets
|
3,805,023
|
|
28,798
|
|
3.07
|
%
|
|
3,175,884
|
|
23,432
|
|
2.97
|
%
|
||||
Other assets
|
185,357
|
|
|
|
|
137,811
|
|
|
|
||||||||
Total assets
|
$
|
3,990,380
|
|
|
|
|
$
|
3,313,695
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing checking accounts
|
$
|
217,704
|
|
$
|
362
|
|
0.67
|
%
|
|
$
|
144,473
|
|
$
|
153
|
|
0.43
|
%
|
Money market deposit accounts
|
1,916,428
|
|
4,098
|
|
0.87
|
%
|
|
1,551,068
|
|
2,207
|
|
0.57
|
%
|
||||
Certificates of deposit
|
934,913
|
|
2,253
|
|
0.98
|
%
|
|
893,449
|
|
1,778
|
|
0.80
|
%
|
||||
Borrowings:
|
|
|
|
|
|
|
|
||||||||||
FHLB borrowing
|
270,222
|
|
554
|
|
0.83
|
%
|
|
187,253
|
|
291
|
|
0.63
|
%
|
||||
Subordinated notes payable, net
|
34,528
|
|
554
|
|
6.51
|
%
|
|
34,326
|
|
554
|
|
6.49
|
%
|
||||
Total interest-bearing liabilities
|
3,373,795
|
|
7,821
|
|
0.94
|
%
|
|
2,810,569
|
|
4,983
|
|
0.71
|
%
|
||||
Noninterest-bearing deposits
|
218,007
|
|
|
|
|
151,940
|
|
|
|
||||||||
Other liabilities
|
41,960
|
|
|
|
|
22,550
|
|
|
|
||||||||
Shareholders' equity
|
356,618
|
|
|
|
|
328,636
|
|
|
|
||||||||
Total liabilities and shareholders' equity
|
$
|
3,990,380
|
|
|
|
|
$
|
3,313,695
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Net interest income
(1)
|
|
$
|
20,977
|
|
|
|
|
$
|
18,449
|
|
|
||||||
Net interest spread
|
|
|
2.13
|
%
|
|
|
|
2.26
|
%
|
||||||||
Net interest margin
(1)
|
|
|
2.24
|
%
|
|
|
|
2.34
|
%
|
(1)
|
Net interest income and net interest margin are calculated on a fully taxable equivalent basis.
|
|
Three Months Ended March 31,
|
||||||||||
|
2017 over 2016
|
||||||||||
(Dollars in thousands)
|
Yield/Rate
|
|
Volume
|
|
Change
(1)
|
||||||
Increase (decrease) in:
|
|
|
|
|
|
||||||
Interest income:
|
|
|
|
|
|
||||||
Interest-earning deposits
|
$
|
88
|
|
|
$
|
17
|
|
|
$
|
105
|
|
Federal funds sold
|
6
|
|
|
—
|
|
|
6
|
|
|||
Investment securities available-for-sale
|
148
|
|
|
(37
|
)
|
|
111
|
|
|||
Investment securities held-to-maturity
|
36
|
|
|
72
|
|
|
108
|
|
|||
FHLB stock
|
(30
|
)
|
|
35
|
|
|
5
|
|
|||
Total loans
|
451
|
|
|
4,580
|
|
|
5,031
|
|
|||
Total increase in interest income
|
699
|
|
|
4,667
|
|
|
5,366
|
|
|||
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
||||||
Interest-bearing deposits:
|
|
|
|
|
|
||||||
Interest-bearing checking accounts
|
112
|
|
|
97
|
|
|
209
|
|
|||
Money market deposit accounts
|
1,301
|
|
|
590
|
|
|
1,891
|
|
|||
Certificates of deposit
|
394
|
|
|
81
|
|
|
475
|
|
|||
Borrowings:
|
|
|
|
|
|
||||||
FHLB borrowing
|
113
|
|
|
150
|
|
|
263
|
|
|||
Subordinated notes payable, net
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total increase in interest expense
|
1,920
|
|
|
918
|
|
|
2,838
|
|
|||
Total increase (decrease) in net interest income
|
$
|
(1,221
|
)
|
|
$
|
3,749
|
|
|
$
|
2,528
|
|
(1)
|
The change in interest income and expense due to change in composition and applicable yields and rates has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.
|
|
Three Months Ended March 31, 2017
|
|
Three Months Ended March 31, 2016
|
||||||||||||||||||||||
|
|
Investment
|
Parent
|
|
|
|
Investment
|
Parent
|
|
||||||||||||||||
(Dollars in thousands)
|
Bank
|
Management
|
and Other
|
Consolidated
|
|
Bank
|
Management
|
and Other
|
Consolidated
|
||||||||||||||||
Investment management fees
|
$
|
—
|
|
$
|
9,396
|
|
$
|
(56
|
)
|
$
|
9,340
|
|
|
$
|
—
|
|
$
|
7,073
|
|
$
|
(54
|
)
|
$
|
7,019
|
|
Service charges
|
94
|
|
—
|
|
—
|
|
94
|
|
|
136
|
|
—
|
|
—
|
|
136
|
|
||||||||
Net gain (loss) on the sale and call of investment securities
|
(2
|
)
|
—
|
|
—
|
|
(2
|
)
|
|
1
|
|
—
|
|
—
|
|
1
|
|
||||||||
Swap fees
|
1,099
|
|
—
|
|
—
|
|
1,099
|
|
|
1,240
|
|
—
|
|
—
|
|
1,240
|
|
||||||||
Commitment and other fees
|
408
|
|
—
|
|
—
|
|
408
|
|
|
502
|
|
—
|
|
—
|
|
502
|
|
||||||||
Other income
(1)
|
469
|
|
1
|
|
—
|
|
470
|
|
|
17
|
|
—
|
|
—
|
|
17
|
|
||||||||
Total non-interest income
|
$
|
2,068
|
|
$
|
9,397
|
|
$
|
(56
|
)
|
$
|
11,409
|
|
|
$
|
1,896
|
|
$
|
7,073
|
|
$
|
(54
|
)
|
$
|
8,915
|
|
(1)
|
Other income includes such items as income from BOLI, change in fair value on swaps, gain on the sale of loan or OREO and other general operating income.
|
•
|
Swap fees
decreased
$141,000
for the
three months ended March 31, 2017
, as compared to
the same period in
2016
, driven by fluctuations in customer demand for long-term interest rate protection. The level and frequency of income associated with swap transactions can vary materially from period to period, based on clients’ expectations of market conditions and term loan originations.
|
•
|
Other income
increased
$452,000
for the
three months ended March 31, 2017
, as compared to
the same period in
2016
, largely due to an increase in the fair values of our swaps.
|
•
|
Investment management fees
increased
$2.3 million
for the
three months ended March 31, 2017
, as compared to the same period in
2016
, driven primarily by the additional
three
months of revenue provided by the operations of The Killen Group, Inc. (“TKG”), which was acquired at the end of April 2016. Assets under management of
$8.19 billion
as of
March 31, 2017
,
decreased
$387.0 million
from
March 31, 2016
, primarily due to the previously disclosed conclusion of a sub-advisory relationship announced in the fourth quarter of 2016, partially offset by additional asset provided by the TKG acquisition.
|
|
Three Months Ended March 31, 2017
|
|
Three Months Ended March 31, 2016
|
||||||||||||||||||||||
|
|
Investment
|
Parent
|
|
|
|
Investment
|
Parent
|
|
||||||||||||||||
(Dollars in thousands)
|
Bank
|
Management
|
and Other
|
Consolidated
|
|
Bank
|
Management
|
and Other
|
Consolidated
|
||||||||||||||||
Compensation and employee benefits
|
$
|
8,493
|
|
$
|
5,450
|
|
$
|
(50
|
)
|
$
|
13,893
|
|
|
$
|
7,719
|
|
$
|
4,214
|
|
$
|
—
|
|
$
|
11,933
|
|
Premises and occupancy costs
|
961
|
|
305
|
|
—
|
|
1,266
|
|
|
923
|
|
206
|
|
—
|
|
1,129
|
|
||||||||
Professional fees
|
705
|
|
164
|
|
(18
|
)
|
851
|
|
|
725
|
|
128
|
|
(52
|
)
|
801
|
|
||||||||
FDIC insurance expense
|
953
|
|
—
|
|
—
|
|
953
|
|
|
522
|
|
—
|
|
—
|
|
522
|
|
||||||||
General insurance expense
|
198
|
|
103
|
|
—
|
|
301
|
|
|
179
|
|
66
|
|
—
|
|
245
|
|
||||||||
State capital shares tax
|
352
|
|
—
|
|
—
|
|
352
|
|
|
329
|
|
—
|
|
—
|
|
329
|
|
||||||||
Travel and entertainment expense
|
409
|
|
206
|
|
—
|
|
615
|
|
|
402
|
|
175
|
|
—
|
|
577
|
|
||||||||
Intangible amortization expense
|
—
|
|
463
|
|
—
|
|
463
|
|
|
—
|
|
390
|
|
—
|
|
390
|
|
||||||||
Other operating expenses
(1)
|
1,534
|
|
811
|
|
119
|
|
2,464
|
|
|
1,526
|
|
504
|
|
50
|
|
2,080
|
|
||||||||
Total non-interest expense
|
$
|
13,605
|
|
$
|
7,502
|
|
$
|
51
|
|
$
|
21,158
|
|
|
$
|
12,325
|
|
$
|
5,683
|
|
$
|
(2
|
)
|
$
|
18,006
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Full-time equivalent employees
(2)
|
162
|
|
66
|
|
—
|
|
228
|
|
|
138
|
|
53
|
|
—
|
|
191
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
(1)
|
Other operating expenses includes such items as organizational dues and subscriptions, charitable contributions, sub-advisory fees, telephone, marketing, employee-related expenses and other general operating expenses.
|
(2)
|
Full-time equivalent employees shown are as of the end of the periods presented.
|
•
|
The Bank’s compensation and employee benefits costs for the
three months ended March 31, 2017
,
increased
by
$774,000
, compared to the same period in
2016
, primarily due to an increase in the number of full-time equivalent employees, increases in the overall annual wage and benefits costs of our existing employees, and increases in incentive and stock
-based compensation
expenses.
|
•
|
FDIC insurance expense for the
three months ended March 31, 2017
,
increased
by
$431,000
, compared to the same period in
2016
, due to the increase in assets and to the change in the FDIC assessment methodology effective for the third quarter of 2016.
|
•
|
Chartwell’s non-interest expenses for the
three months ended March 31, 2017
, increased by
$1.8 million
, compared to the same period in
2016
, primarily due to
three
months of additional expenses contributed by the operations of TKG, which was acquired at the end of April 2016
.
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||
(Dollars in thousands)
|
Outstanding
|
Percent of
Loans |
|
Outstanding
|
Percent of
Loans |
||||||
Private banking loans
|
$
|
1,837,207
|
|
51.9
|
%
|
|
$
|
1,735,928
|
|
51.0
|
%
|
Middle-market banking loans:
|
|
|
|
|
|
||||||
Commercial and industrial
|
585,846
|
|
16.6
|
%
|
|
587,423
|
|
17.3
|
%
|
||
Commercial real estate
|
1,114,037
|
|
31.5
|
%
|
|
1,077,703
|
|
31.7
|
%
|
||
Total middle-market banking loans
|
1,699,883
|
|
48.1
|
%
|
|
1,665,126
|
|
49.0
|
%
|
||
Loans held-for-investment
|
$
|
3,537,090
|
|
100.0
|
%
|
|
$
|
3,401,054
|
|
100.0
|
%
|
(Dollars in thousands)
|
March 31,
2017 |
December 31,
2016 |
||||
Private banking loans:
|
|
|
||||
Secured by cash and marketable securities
|
$
|
1,694,485
|
|
$
|
1,584,373
|
|
Secured by real estate
|
100,157
|
|
110,476
|
|
||
Other
|
42,565
|
|
41,079
|
|
||
Total private banking loans
|
$
|
1,837,207
|
|
$
|
1,735,928
|
|
|
March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
One Year
or Less |
One to
Five Years |
Greater Than
Five Years |
Total
|
||||||||
Loan maturity:
|
|
|
|
|
||||||||
Private banking
|
$
|
1,726,514
|
|
$
|
58,242
|
|
$
|
52,451
|
|
$
|
1,837,207
|
|
Commercial and industrial
|
147,227
|
|
354,717
|
|
83,902
|
|
585,846
|
|
||||
Commercial real estate
|
189,913
|
|
538,327
|
|
385,797
|
|
1,114,037
|
|
||||
Loans held-for-investment
|
$
|
2,063,654
|
|
$
|
951,286
|
|
$
|
522,150
|
|
$
|
3,537,090
|
|
|
|
|
|
|
||||||||
Interest rate sensitivity:
|
|
|
|
|
||||||||
Fixed interest rates
|
$
|
108,494
|
|
$
|
148,611
|
|
$
|
136,401
|
|
$
|
393,506
|
|
Floating or adjustable interest rates
|
1,955,160
|
|
802,675
|
|
385,749
|
|
3,143,584
|
|
||||
Loans held-for-investment
|
$
|
2,063,654
|
|
$
|
951,286
|
|
$
|
522,150
|
|
$
|
3,537,090
|
|
(Dollars in thousands)
|
March 31,
2017 |
December 31,
2016 |
||||
General reserves
|
$
|
11,920
|
|
$
|
11,823
|
|
Specific reserves
|
4,265
|
|
6,939
|
|
||
Total allowance for loan losses
|
$
|
16,185
|
|
$
|
18,762
|
|
Allowance for loan losses to loans
|
0.46
|
%
|
0.55
|
%
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||
(Dollars in thousands)
|
Reserve
|
Percent of Loans
|
|
Reserve
|
Percent of Loans
|
||||||
Private banking
|
$
|
1,421
|
|
51.9
|
%
|
|
$
|
1,424
|
|
51.0
|
%
|
Commercial and industrial
|
10,436
|
|
16.6
|
%
|
|
12,326
|
|
17.3
|
%
|
||
Commercial real estate
|
4,328
|
|
31.5
|
%
|
|
5,012
|
|
31.7
|
%
|
||
Total allowance for loan losses
|
$
|
16,185
|
|
100.0
|
%
|
|
$
|
18,762
|
|
100.0
|
%
|
|
Three Months Ended March 31,
|
|||||
(Dollars in thousands)
|
2017
|
2016
|
||||
Beginning balance
|
$
|
18,762
|
|
$
|
17,974
|
|
Charge-offs:
|
|
|
||||
Private banking
|
—
|
|
—
|
|
||
Commercial and industrial
|
(2,889
|
)
|
—
|
|
||
Commercial real estate
|
—
|
|
—
|
|
||
Total charge-offs
|
(2,889
|
)
|
—
|
|
||
Recoveries:
|
|
|
||||
Private banking
|
—
|
|
—
|
|
||
Commercial and industrial
|
69
|
|
450
|
|
||
Commercial real estate
|
—
|
|
—
|
|
||
Total recoveries
|
69
|
|
450
|
|
||
Net recoveries (charge-offs)
|
(2,820
|
)
|
450
|
|
||
Provision for loan losses
|
243
|
|
122
|
|
||
Ending balance
|
$
|
16,185
|
|
$
|
18,546
|
|
|
|
|
||||
Net loan charge-offs (recoveries) to average total loans, annualized
|
0.33
|
%
|
(0.06
|
)%
|
||
Provision for loan losses to average total loans, annualized
|
0.03
|
%
|
0.02
|
%
|
(Dollars in thousands)
|
March 31,
2017 |
December 31,
2016 |
||||
Non-performing loans:
|
|
|
||||
Private banking
|
$
|
479
|
|
$
|
517
|
|
Commercial and industrial
|
13,574
|
|
17,273
|
|
||
Commercial real estate
|
—
|
|
—
|
|
||
Total non-performing loans
|
$
|
14,053
|
|
$
|
17,790
|
|
Other real estate owned
|
4,178
|
|
4,178
|
|
||
Total non-performing assets
|
$
|
18,231
|
|
$
|
21,968
|
|
|
|
|
||||
Non-performing troubled debt restructured loans
|
$
|
13,574
|
|
$
|
17,273
|
|
Performing troubled debt restructured loans
|
$
|
—
|
|
$
|
471
|
|
Non-performing loans to total loans
|
0.40
|
%
|
0.52
|
%
|
||
Allowance for loan losses to non-performing loans
|
115.17
|
%
|
105.46
|
%
|
||
Non-performing assets to total assets
|
0.45
|
%
|
0.56
|
%
|
|
March 31, 2017
|
|||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||
Investment securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
46,568
|
|
$
|
198
|
|
$
|
13
|
|
$
|
46,753
|
|
Trust preferred securities
|
17,743
|
|
247
|
|
45
|
|
17,945
|
|
||||
Non-agency mortgage-backed securities
|
5,750
|
|
4
|
|
—
|
|
5,754
|
|
||||
Non-agency collateralized loan obligations
|
11,109
|
|
14
|
|
28
|
|
11,095
|
|
||||
Agency collateralized mortgage obligations
|
42,565
|
|
45
|
|
228
|
|
42,382
|
|
||||
Agency mortgage-backed securities
|
23,009
|
|
241
|
|
197
|
|
23,053
|
|
||||
Agency debentures
|
4,770
|
|
57
|
|
—
|
|
4,827
|
|
||||
Equity securities
|
8,720
|
|
—
|
|
275
|
|
8,445
|
|
||||
Total investment securities available-for-sale
|
160,234
|
|
806
|
|
786
|
|
160,254
|
|
||||
Investment securities held-to-maturity:
|
|
|
|
|
||||||||
Corporate bonds
|
31,192
|
|
710
|
|
—
|
|
31,902
|
|
||||
Agency debentures
|
4,967
|
|
21
|
|
—
|
|
4,988
|
|
||||
Municipal bonds
|
25,212
|
|
218
|
|
8
|
|
25,422
|
|
||||
Total investment securities held-to-maturity
|
61,371
|
|
949
|
|
8
|
|
62,312
|
|
||||
Total
|
$
|
221,605
|
|
$
|
1,755
|
|
$
|
794
|
|
$
|
222,566
|
|
|
December 31, 2016
|
|||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||
Investment securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
53,902
|
|
$
|
164
|
|
$
|
21
|
|
$
|
54,045
|
|
Trust preferred securities
|
17,711
|
|
159
|
|
72
|
|
17,798
|
|
||||
Non-agency mortgage-backed securities
|
5,750
|
|
14
|
|
—
|
|
5,764
|
|
||||
Non-agency collateralized loan obligations
|
16,234
|
|
—
|
|
54
|
|
16,180
|
|
||||
Agency collateralized mortgage obligations
|
44,051
|
|
49
|
|
279
|
|
43,821
|
|
||||
Agency mortgage-backed securities
|
24,107
|
|
240
|
|
198
|
|
24,149
|
|
||||
Agency debentures
|
4,760
|
|
23
|
|
—
|
|
4,783
|
|
||||
Equity securities
|
8,643
|
|
—
|
|
291
|
|
8,352
|
|
||||
Total investment securities available-for-sale
|
175,158
|
|
649
|
|
915
|
|
174,892
|
|
||||
Investment securities held-to-maturity:
|
|
|
|
|
||||||||
Corporate bonds
|
28,693
|
|
596
|
|
30
|
|
29,259
|
|
||||
Municipal bonds
|
25,247
|
|
88
|
|
96
|
|
25,239
|
|
||||
Total investment securities held-to-maturity
|
53,940
|
|
684
|
|
126
|
|
54,498
|
|
||||
Total
|
$
|
229,098
|
|
$
|
1,333
|
|
$
|
1,041
|
|
$
|
229,390
|
|
|
March 31, 2017
|
||||||||||||||||||||||||||||
|
Less Than
One Year |
|
One to
Five Years |
|
Five to
10 Years |
|
Greater Than
10 Years |
|
Total
|
||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|||||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Corporate bonds
|
$
|
6,553
|
|
2.35
|
%
|
|
$
|
40,200
|
|
2.21
|
%
|
|
$
|
—
|
|
—
|
%
|
|
$
|
—
|
|
—
|
%
|
|
$
|
46,753
|
|
2.23
|
%
|
Trust preferred securities
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
9,131
|
|
2.89
|
%
|
|
8,814
|
|
3.03
|
%
|
|
17,945
|
|
2.96
|
%
|
|||||
Non-agency mortgage-backed securities
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
5,754
|
|
1.90
|
%
|
|
5,754
|
|
1.90
|
%
|
|||||
Non-agency collateralized loan obligations
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
10,003
|
|
2.62
|
%
|
|
1,092
|
|
3.26
|
%
|
|
11,095
|
|
2.68
|
%
|
|||||
Agency collateralized mortgage obligations
|
—
|
|
—
|
%
|
|
1,035
|
|
1.32
|
%
|
|
—
|
|
—
|
%
|
|
41,347
|
|
1.24
|
%
|
|
42,382
|
|
1.24
|
%
|
|||||
Agency mortgage-backed securities
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
23,053
|
|
2.00
|
%
|
|
23,053
|
|
2.00
|
%
|
|||||
Agency debentures
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
4,827
|
|
2.65
|
%
|
|
—
|
|
—
|
%
|
|
4,827
|
|
2.65
|
%
|
|||||
Total debt securities available-for-sale
|
6,553
|
|
|
|
41,235
|
|
|
|
23,961
|
|
|
|
80,060
|
|
|
|
151,809
|
|
|
||||||||||
Weighted average yield
|
|
2.35
|
%
|
|
|
2.19
|
%
|
|
|
2.73
|
%
|
|
|
1.73
|
%
|
|
|
2.04
|
%
|
||||||||||
Investment securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Corporate bonds
|
—
|
|
—
|
%
|
|
5,262
|
|
6.38
|
%
|
|
24,078
|
|
5.34
|
%
|
|
2,562
|
|
5.63
|
%
|
|
31,902
|
|
5.53
|
%
|
|||||
Agency debentures
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
4,988
|
|
2.87
|
%
|
|
—
|
|
—
|
%
|
|
4,988
|
|
2.87
|
%
|
|||||
Municipal bonds
|
—
|
|
—
|
%
|
|
12,685
|
|
2.40
|
%
|
|
11,817
|
|
2.84
|
%
|
|
920
|
|
3.55
|
%
|
|
25,422
|
|
2.65
|
%
|
|||||
Total debt securities held-to-maturity
|
—
|
|
|
|
17,947
|
|
|
|
40,883
|
|
|
|
3,482
|
|
|
|
62,312
|
|
|
||||||||||
Weighted average yield
|
|
—
|
%
|
|
|
3.53
|
%
|
|
|
4.31
|
%
|
|
|
5.07
|
%
|
|
|
4.13
|
%
|
||||||||||
Total debt securities
|
$
|
6,553
|
|
|
|
$
|
59,182
|
|
|
|
$
|
64,844
|
|
|
|
$
|
83,542
|
|
|
|
$
|
214,121
|
|
|
|||||
Weighted average yield
|
|
2.35
|
%
|
|
|
2.59
|
%
|
|
|
3.72
|
%
|
|
|
1.86
|
%
|
|
|
2.64
|
%
|
|
Three Months Ended March 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
(Dollars in thousands)
|
Average Amount
|
Average Rate Paid
|
|
Average Amount
|
Average Rate Paid
|
||||||
Interest-bearing checking accounts
|
$
|
217,704
|
|
0.67
|
%
|
|
$
|
144,473
|
|
0.43
|
%
|
Money market deposit accounts
|
1,916,428
|
|
0.87
|
%
|
|
1,551,068
|
|
0.57
|
%
|
||
Certificates of deposit
|
934,913
|
|
0.98
|
%
|
|
893,449
|
|
0.80
|
%
|
||
Total average interest-bearing deposits
|
3,069,045
|
|
0.89
|
%
|
|
2,588,990
|
|
0.64
|
%
|
||
Noninterest-bearing deposits
|
218,007
|
|
—
|
|
|
151,940
|
|
—
|
|
||
Total average deposits
|
$
|
3,287,052
|
|
0.83
|
%
|
|
$
|
2,740,930
|
|
0.61
|
%
|
(Dollars in thousands)
|
March 31, 2017
|
||
Months to maturity:
|
|
||
Three months or less
|
$
|
335,708
|
|
Over three to six months
|
157,875
|
|
|
Over six to 12 months
|
296,107
|
|
|
Over 12 months
|
126,589
|
|
|
Total
|
$
|
916,279
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Rate
|
Maximum Balance at Any Month End
|
Average
Balance During the Period |
Original Term
|
|
Amount
|
Rate
|
Maximum Balance at Any Month End
|
Average
Balance During the Period |
Original Term
|
||||||||||||
Daily FHLB borrowings
|
$
|
215,000
|
|
1.02%
|
$
|
370,000
|
|
$
|
170,222
|
|
1-4 days
|
|
$
|
105,000
|
|
0.77%
|
$
|
260,000
|
|
$
|
142,664
|
|
1-4 days
|
Term FHLB borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Issued
7/29/2015
|
—
|
|
—%
|
—
|
|
—
|
|
|
|
—
|
|
0.61%
|
25,000
|
|
14,754
|
|
12 months
|
||||||
Issued
7/29/2015
|
—
|
|
—%
|
—
|
|
—
|
|
|
|
—
|
|
0.72%
|
25,000
|
|
20,970
|
|
15 months
|
||||||
Issued
6/29/2016
|
—
|
|
—%
|
—
|
|
—
|
|
|
|
—
|
|
0.66%
|
100,000
|
|
24,863
|
|
3 months
|
||||||
Issued
9/29/2016
|
—
|
|
—%
|
—
|
|
—
|
|
|
|
—
|
|
0.58%
|
100,000
|
|
24,863
|
|
3 months
|
||||||
Issued
12/29/2016
|
—
|
|
0.85%
|
100,000
|
|
96,667
|
|
3 months
|
|
100,000
|
|
0.85%
|
100,000
|
|
820
|
|
3 months
|
||||||
Issued
3/29/2017
|
100,000
|
|
1.07%
|
100,000
|
|
3,333
|
|
3 months
|
|
—
|
|
—%
|
—
|
|
—
|
|
|
||||||
Subordinated notes payable
|
35,000
|
|
5.75%
|
35,000
|
|
35,000
|
|
5 years
|
|
35,000
|
|
5.75%
|
35,000
|
|
35,000
|
|
5 years
|
||||||
Total borrowings outstanding
|
$
|
350,000
|
|
1.51%
|
$
|
605,000
|
|
$
|
305,222
|
|
|
|
$
|
240,000
|
|
1.53%
|
$
|
645,000
|
|
$
|
263,934
|
|
|
(Dollars in thousands)
|
March 31,
2017 |
December 31,
2016 |
||||
Available cash
|
$
|
76,738
|
|
$
|
64,816
|
|
Unpledged investment securities available-for-sale
|
155,510
|
|
169,830
|
|
||
Net borrowing capacity
|
426,696
|
|
509,906
|
|
||
Total liquidity
|
$
|
658,944
|
|
$
|
744,552
|
|
|
March 31, 2017
|
||||||||||||||||
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To be Well Capitalized Under Prompt Corrective Action Provisions
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
Total risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
322,198
|
|
12.39
|
%
|
|
$
|
208,110
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
316,207
|
|
12.29
|
%
|
|
$
|
205,915
|
|
8.00
|
%
|
|
$
|
257,393
|
|
10.00
|
%
|
Tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
297,060
|
|
11.42
|
%
|
|
$
|
156,082
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
304,558
|
|
11.83
|
%
|
|
$
|
154,436
|
|
6.00
|
%
|
|
$
|
205,915
|
|
8.00
|
%
|
Common equity tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
297,060
|
|
11.42
|
%
|
|
$
|
117,062
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
304,558
|
|
11.83
|
%
|
|
$
|
115,827
|
|
4.50
|
%
|
|
$
|
167,306
|
|
6.50
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
297,060
|
|
7.56
|
%
|
|
$
|
157,159
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
304,558
|
|
7.80
|
%
|
|
$
|
156,093
|
|
4.00
|
%
|
|
$
|
195,116
|
|
5.00
|
%
|
|
December 31, 2016
|
||||||||||||||||
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To be Well Capitalized Under Prompt Corrective Action Provisions
|
||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
Total risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
325,122
|
|
12.66
|
%
|
|
$
|
205,488
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
314,419
|
|
12.39
|
%
|
|
$
|
203,030
|
|
8.00
|
%
|
|
$
|
253,787
|
|
10.00
|
%
|
Tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
295,089
|
|
11.49
|
%
|
|
$
|
154,116
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
298,093
|
|
11.75
|
%
|
|
$
|
152,272
|
|
6.00
|
%
|
|
$
|
203,030
|
|
8.00
|
%
|
Common equity tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
295,089
|
|
11.49
|
%
|
|
$
|
115,587
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
298,093
|
|
11.75
|
%
|
|
$
|
114,204
|
|
4.50
|
%
|
|
$
|
164,962
|
|
6.50
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
295,089
|
|
7.90
|
%
|
|
$
|
149,369
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
298,093
|
|
8.04
|
%
|
|
$
|
148,252
|
|
4.00
|
%
|
|
$
|
185,316
|
|
5.00
|
%
|
|
March 31, 2017
|
||||||||||||||
(Dollars in thousands)
|
One Year
or Less |
One to
Three Years |
Three to
Five Years |
Greater Than
Five Years |
Total
|
||||||||||
Transaction deposits
|
$
|
2,107,699
|
|
$
|
250,024
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,357,723
|
|
Certificates of deposit
|
831,051
|
|
128,857
|
|
249
|
|
—
|
|
960,157
|
|
|||||
Borrowings outstanding
|
315,000
|
|
35,000
|
|
—
|
|
—
|
|
350,000
|
|
|||||
Interest payments on
certificates of
deposit and borrowings
|
11,335
|
|
6,092
|
|
—
|
|
—
|
|
17,427
|
|
|||||
Operating leases
|
2,354
|
|
4,784
|
|
3,291
|
|
1,066
|
|
11,495
|
|
|||||
Commitments for low income housing tax credits
|
4,775
|
|
8,437
|
|
24
|
|
55
|
|
13,291
|
|
|||||
Commitments for small business investment companies
|
2,765
|
|
—
|
|
—
|
|
—
|
|
2,765
|
|
|||||
Total contractual obligations
|
$
|
3,274,979
|
|
$
|
433,194
|
|
$
|
3,564
|
|
$
|
1,121
|
|
$
|
3,712,858
|
|
|
March 31, 2017
|
||||||||||||||
(Dollars in thousands)
|
One Year
or Less |
One to
Three Years |
Three to
Five Years |
Greater Than
Five Years |
Total
|
||||||||||
Unused loan commitments
|
$
|
1,510,897
|
|
$
|
173,957
|
|
$
|
63,925
|
|
$
|
89,300
|
|
$
|
1,838,079
|
|
Standby letters of credit
|
37,095
|
|
21,873
|
|
7,318
|
|
4,779
|
|
71,065
|
|
|||||
Total off-balance sheet arrangements
|
$
|
1,547,992
|
|
$
|
195,830
|
|
$
|
71,243
|
|
$
|
94,079
|
|
$
|
1,909,144
|
|
|
March 31, 2017
|
|
December 31, 2016
|
|||||||||
(Dollars in thousands)
|
Amount Change from
Base Case |
Percent Change from
Base Case |
ALCO
Guidelines |
|
Amount Change from
Base Case |
Percent Change from
Base Case |
||||||
Net interest income:
|
|
|
|
|
|
|
||||||
+300
|
$
|
25,874
|
|
30.12
|
%
|
-20.00%
|
|
$
|
25,570
|
|
30.48
|
%
|
+200
|
$
|
17,230
|
|
20.06
|
%
|
-15.00%
|
|
$
|
16,986
|
|
20.25
|
%
|
+100
|
$
|
8,608
|
|
10.02
|
%
|
-10.00%
|
|
$
|
8,431
|
|
10.05
|
%
|
–100
|
$
|
(6,573
|
)
|
(7.65
|
)%
|
-10.00%
|
|
$
|
(3,836
|
)
|
(4.57
|
)%
|
|
|
|
|
|
|
|
||||||
Economic value of equity:
|
|
|
|
|
|
|
||||||
+300
|
$
|
5,738
|
|
1.66
|
%
|
+/-30.00%
|
|
$
|
6,027
|
|
1.82
|
%
|
+200
|
$
|
4,124
|
|
1.19
|
%
|
+/-20.00%
|
|
$
|
4,201
|
|
1.27
|
%
|
+100
|
$
|
2,139
|
|
0.62
|
%
|
+/-10.00%
|
|
$
|
2,095
|
|
0.63
|
%
|
–100
|
$
|
(3,487
|
)
|
(1.01
|
)%
|
+/-10.00%
|
|
$
|
(11,980
|
)
|
(3.61
|
)%
|
|
Interest Rate Sensitivity Period
|
|||||||||||||||||||||||
|
March 31, 2017
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Less Than
90 Days |
91 to 180
Days |
181 to 365
Days |
One to Three
Years |
Three to Five
Years |
Greater Than Five Years
|
Non-Sensitive
|
Total Balance
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-earning deposits
|
$
|
108,490
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
108,490
|
|
Federal funds sold
|
3,828
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,828
|
|
||||||||
Total investment securities
|
115,222
|
|
2,520
|
|
6,353
|
|
51,812
|
|
34,943
|
|
23,788
|
|
228
|
|
234,866
|
|
||||||||
Total loans
|
3,236,600
|
|
19,732
|
|
44,140
|
|
150,932
|
|
57,700
|
|
15,564
|
|
12,422
|
|
3,537,090
|
|
||||||||
Other assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
190,763
|
|
190,763
|
|
||||||||
Total assets
|
$
|
3,464,140
|
|
$
|
22,252
|
|
$
|
50,493
|
|
$
|
202,744
|
|
$
|
92,643
|
|
$
|
39,352
|
|
$
|
203,413
|
|
$
|
4,075,037
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transaction deposits
|
$
|
1,833,976
|
|
$
|
77,883
|
|
$
|
—
|
|
$
|
250,024
|
|
$
|
—
|
|
$
|
—
|
|
$
|
195,840
|
|
$
|
2,357,723
|
|
Certificates of
deposit
|
349,595
|
|
173,586
|
|
307,870
|
|
128,857
|
|
249
|
|
—
|
|
—
|
|
960,157
|
|
||||||||
Borrowings, net
|
215,000
|
|
—
|
|
—
|
|
135,000
|
|
—
|
|
—
|
|
(439
|
)
|
349,561
|
|
||||||||
Other liabilities
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
47,937
|
|
47,937
|
|
||||||||
Total liabilities
|
2,398,571
|
|
251,469
|
|
307,870
|
|
513,881
|
|
249
|
|
—
|
|
243,338
|
|
3,715,378
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
359,659
|
|
359,659
|
|
||||||||
Total liabilities and equity
|
$
|
2,398,571
|
|
$
|
251,469
|
|
$
|
307,870
|
|
$
|
513,881
|
|
$
|
249
|
|
$
|
—
|
|
$
|
602,997
|
|
$
|
4,075,037
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate sensitivity gap
|
$
|
1,065,569
|
|
$
|
(229,217
|
)
|
$
|
(257,377
|
)
|
$
|
(311,137
|
)
|
$
|
92,394
|
|
$
|
39,352
|
|
$
|
(399,584
|
)
|
|
||
Cumulative interest rate sensitivity gap
|
$
|
1,065,569
|
|
$
|
836,352
|
|
$
|
578,975
|
|
$
|
267,838
|
|
$
|
360,232
|
|
$
|
399,584
|
|
|
|
||||
Cumulative interest rate sensitive assets to rate sensitive liabilities
|
144.4
|
%
|
131.6
|
%
|
119.6
|
%
|
107.7
|
%
|
110.4
|
%
|
111.5
|
%
|
109.7
|
%
|
|
|||||||||
Cumulative gap to total assets
|
26.1
|
%
|
20.5
|
%
|
14.2
|
%
|
6.6
|
%
|
8.8
|
%
|
9.8
|
%
|
|
|
|
Total Number
of Shares
Purchased
|
|
Weighted
Average
Price Paid
per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs*
|
|
Approximate Dollar Value
of Shares that May
Yet Be Purchased
Under the Plans or
Programs*
|
||||||
January 1, 2017 - January 31, 2017
|
988
|
|
|
$
|
21.87
|
|
988
|
|
|
$
|
8,653,488
|
|
February 1, 2017 - February 28, 2017
|
40,878
|
|
|
23.23
|
|
40,878
|
|
|
7,703,832
|
|
||
March 1, 2017 - March 31, 2017
|
3,000
|
|
|
23.41
|
|
3,000
|
|
|
7,633,607
|
|
||
Total
|
44,866
|
|
|
$
|
23.21
|
|
44,866
|
|
|
$
|
7,633,607
|
|
*
|
In October 2016, the Company announced that its Board of Directors had approved a share repurchase program authorizing the Company to repurchase up to $5 million of its common stock from time to time on the open market or in privately negotiated transactions. In January 2017, the Company announced that its Board of Directors had approved an additional share repurchase program of up to $5 million.
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
|
32
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
|
101
|
The following materials from TriState Capital Holdings, Inc.’s Quarterly Report on Form 10-Q for the period ended
March 31, 2017
, formatted in XBRL: (i) the Unaudited Condensed Consolidated Statements of Financial Condition, (ii) the Unaudited Condensed Consolidated Statements of Income, (iii) the Unaudited Condensed Consolidated Statements of Comprehensive Income, (iv) the Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity, (v) the Unaudited Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Unaudited Condensed Consolidated Financial Statements.*
|
TRISTATE CAPITAL HOLDINGS, INC.
|
|
|
|
By
|
/s/ James F. Getz
|
|
James F. Getz
|
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Chairman, President and Chief Executive Officer
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By
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/s/ Mark L. Sullivan
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Mark L. Sullivan
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Vice Chairman and Chief Financial Officer
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Exhibit No.
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Description
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31.1
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
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31.2
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Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
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32
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Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
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101
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The following materials from TriState Capital Holdings, Inc.’s Quarterly Report on Form 10-Q for the period ended
March 31, 2017
, formatted in XBRL: (i) the Unaudited Condensed Consolidated Statements of Financial Condition, (ii) the Unaudited Condensed Consolidated Statements of Income, (iii) the Unaudited Condensed Consolidated Statements of Comprehensive Income, (iv) the Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity, (v) the Unaudited Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Unaudited Condensed Consolidated Financial Statements.*
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1.
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I have reviewed this Quarterly Report on Form 10-Q of TriState Capital Holdings, Inc.;
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2.
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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;
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3.
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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;
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4.
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The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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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 the generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report my 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
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(d)
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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
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5.
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The registrant’s other certifying officer and I have disclosed, based on my 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):
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(a)
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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
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(b)
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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.
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1.
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I have reviewed this Quarterly Report on Form 10-Q of TriState Capital Holdings, Inc.;
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2.
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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;
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3.
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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;
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4.
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The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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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 the generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report my 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
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(d)
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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
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5.
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The registrant’s other certifying officer and I have disclosed, based on my 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):
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(a)
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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
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(b)
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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.
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