Pennsylvania
|
|
001-35913
|
|
20-4929029
|
(State or other jurisdiction of incorporation or organization)
|
|
(Commission File Number)
|
|
(I.R.S. Employer Identification No.)
|
One Oxford Centre
|
301 Grant Street, Suite 2700
|
Pittsburgh, Pennsylvania 15219
|
(Address of principal executive offices)
|
(Zip Code)
|
(
412) 304-0304
|
(Registrant’s telephone number, including area code)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Emerging growth company
|
ý
|
(c)
|
On
July 19, 2017
, TriState Capital Holdings, Inc. (the “Company”) also issued a press release which announced that Brian Fetterolf, the President of the Company’s banking subsidiary, TriState Capital Bank, has been elected the Chief Executive Officer of the Bank and to the boards of directors of the Bank and of the Company. A copy of the press release is included as Exhibit 99.2 to this report, which is incorporated into this report by reference.
|
(e)
|
Mr. Fetterolf’s annual compensation has been set at $400,000. He will also be eligible for bonuses at the discretion of the Company’s Compensation Committee under a bonus compensation plan based upon established goals.
|
Exhibit No.
|
Description
|
99.1
|
Press release dated
July 19, 2017
, filed herewith, for item 2.02.
|
99.2
|
Press release dated
July 19, 2017
, filed herewith, for item 5.02.
|
TRISTATE CAPITAL HOLDINGS, INC.
|
|
|
|
By
|
/s/ James F. Getz
|
|
James F. Getz
|
|
Chairman, President and Chief Executive Officer
|
|
|
Exhibit No.
|
Description
|
99.1
|
Press release dated
July 19, 2017
, filed herewith, for item 2.02.
|
99.2
|
Press release dated
July 19, 2017
, filed herewith, for item 5.02.
|
•
|
Net interest income of
$22.0 million
grew a record
$3.8 million
, or
20.9%
, from the year-ago quarter and
$1.1 million
, or
5.3%
, from the linked quarter
|
•
|
Loans of
$3.77 billion
at period end grew a record
$774.0 million
, or
25.8%
, from one year prior and
6.6%
during the quarter, with significant increases in commercial and industrial, commercial real estate and private bank lending
|
•
|
Deposits of
$3.53 billion
at period end grew by
22.2%
from one year prior and
6.4%
during the quarter, to continue funding the rapid growth of TriState Capital’s national private banking franchise
|
•
|
Significant operating leverage illustrated by TriState Capital Bank’s
55.03%
efficiency ratio
|
•
|
Investment management fees and total non-interest income represented
27.3%
and
34.2%
of total revenue, respectively
|
•
|
Superior credit quality metrics saw further improvement with non-performing assets (NPAs) declining to
0.27%
of assets and adverse-rated credits declining to
0.90%
of loans at period end
|
(Dollars in thousands, except per share data)
|
Q2 2017
|
|
Q1 2017
|
|
Q2 2016
|
|
|
FY 2016
|
|
||||
Total non-interest expense (GAAP)
|
$
|
21,784
|
|
$
|
21,158
|
|
$
|
19,457
|
|
|
$
|
78,794
|
|
Non-recurring items:
|
|
|
|
|
|
||||||||
Change in fair value of previously accrued acquisition earn out
|
—
|
|
—
|
|
—
|
|
|
3,687
|
|
||||
Acquisition-related expense
|
—
|
|
—
|
|
—
|
|
|
(352
|
)
|
||||
Severance expense
|
—
|
|
—
|
|
—
|
|
|
(300
|
)
|
||||
Non-interest expense excluding non-recurring items (non-GAAP)
|
$
|
21,784
|
|
$
|
21,158
|
|
$
|
19,457
|
|
|
$
|
81,829
|
|
Net impact of non-recurring items on EPS
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
0.07
|
|
|
As of and For the
Three Months Ended |
|
As of and For the
Six Months Ended |
|||||||||||||
(Dollars in thousands)
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
||||||||||
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||
Period-end balance sheet data:
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
119,715
|
|
$
|
112,501
|
|
$
|
114,297
|
|
|
$
|
119,715
|
|
$
|
114,297
|
|
Total investment securities
|
221,409
|
|
234,866
|
|
242,217
|
|
|
221,409
|
|
242,217
|
|
|||||
Loans held-for-investment
|
3,771,312
|
|
3,537,090
|
|
2,997,309
|
|
|
3,771,312
|
|
2,997,309
|
|
|||||
Allowance for loan losses
|
(15,968
|
)
|
(16,185
|
)
|
(17,215
|
)
|
|
(15,968
|
)
|
(17,215
|
)
|
|||||
Loans held-for-investment, net
|
3,755,344
|
|
3,520,905
|
|
2,980,094
|
|
|
3,755,344
|
|
2,980,094
|
|
|||||
Goodwill and other intangibles, net
|
66,283
|
|
66,746
|
|
68,134
|
|
|
66,283
|
|
68,134
|
|
|||||
Other assets
|
145,084
|
|
140,019
|
|
123,849
|
|
|
145,084
|
|
123,849
|
|
|||||
Total assets
|
$
|
4,307,835
|
|
$
|
4,075,037
|
|
$
|
3,528,591
|
|
|
$
|
4,307,835
|
|
$
|
3,528,591
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
3,529,868
|
|
$
|
3,317,880
|
|
$
|
2,888,192
|
|
|
$
|
3,529,868
|
|
$
|
2,888,192
|
|
Borrowings, net
|
363,612
|
|
349,561
|
|
259,409
|
|
|
363,612
|
|
259,409
|
|
|||||
Other liabilities
|
46,716
|
|
47,937
|
|
43,296
|
|
|
46,716
|
|
43,296
|
|
|||||
Total liabilities
|
3,940,196
|
|
3,715,378
|
|
3,190,897
|
|
|
3,940,196
|
|
3,190,897
|
|
|||||
|
|
|
|
|
|
|
||||||||||
Total shareholders' equity
|
367,639
|
|
359,659
|
|
337,694
|
|
|
367,639
|
|
337,694
|
|
|||||
|
|
|
|
|
|
|
||||||||||
Total liabilities and shareholders' equity
|
$
|
4,307,835
|
|
$
|
4,075,037
|
|
$
|
3,528,591
|
|
|
$
|
4,307,835
|
|
$
|
3,528,591
|
|
|
|
|
|
|
|
|
||||||||||
Income statement data:
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
32,115
|
|
$
|
28,737
|
|
$
|
23,795
|
|
|
$
|
60,852
|
|
$
|
47,155
|
|
Interest expense
|
10,082
|
|
7,821
|
|
5,576
|
|
|
17,903
|
|
10,559
|
|
|||||
Net interest income
|
22,033
|
|
20,916
|
|
18,219
|
|
|
42,949
|
|
36,596
|
|
|||||
Provision for loan losses
|
516
|
|
243
|
|
80
|
|
|
759
|
|
202
|
|
|||||
Net interest income after provision for loan losses
|
21,517
|
|
20,673
|
|
18,139
|
|
|
42,190
|
|
36,394
|
|
|||||
Non-interest income:
|
|
|
|
|
|
|
||||||||||
Investment management fees
|
9,130
|
|
9,340
|
|
9,462
|
|
|
18,470
|
|
16,481
|
|
|||||
Net gain (loss) on the sale and call of investment securities
|
241
|
|
(2
|
)
|
62
|
|
|
239
|
|
63
|
|
|||||
Other non-interest income
|
2,341
|
|
2,071
|
|
1,923
|
|
|
4,412
|
|
3,818
|
|
|||||
Total non-interest income
|
11,712
|
|
11,409
|
|
11,447
|
|
|
23,121
|
|
20,362
|
|
|||||
Non-interest expense:
|
|
|
|
|
|
|
||||||||||
Intangible amortization expense
|
462
|
|
463
|
|
438
|
|
|
925
|
|
828
|
|
|||||
Other non-interest expense
|
21,322
|
|
20,695
|
|
19,019
|
|
|
42,017
|
|
36,635
|
|
|||||
Total non-interest expense
|
21,784
|
|
21,158
|
|
19,457
|
|
|
42,942
|
|
37,463
|
|
|||||
Income before tax
|
11,445
|
|
10,924
|
|
10,129
|
|
|
22,369
|
|
19,293
|
|
|||||
Income tax expense
|
3,024
|
|
3,432
|
|
3,356
|
|
|
6,456
|
|
6,677
|
|
|||||
Net income
|
$
|
8,421
|
|
$
|
7,492
|
|
$
|
6,773
|
|
|
$
|
15,913
|
|
$
|
12,616
|
|
|
As of and For the
Three Months Ended |
|
As of and For the
Six Months Ended |
|||||||||||||
(Dollars in thousands, except per share data)
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
||||||||||
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||
Per share and share data:
|
|
|
|
|
|
|
||||||||||
Earnings per share:
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.31
|
|
$
|
0.27
|
|
$
|
0.25
|
|
|
$
|
0.58
|
|
$
|
0.46
|
|
Diluted
|
$
|
0.29
|
|
$
|
0.26
|
|
$
|
0.24
|
|
|
$
|
0.55
|
|
$
|
0.45
|
|
Book value per common share
|
$
|
12.83
|
|
$
|
12.52
|
|
$
|
11.97
|
|
|
$
|
12.83
|
|
$
|
11.97
|
|
Tangible book value per common share
(1)
|
$
|
10.51
|
|
$
|
10.19
|
|
$
|
9.56
|
|
|
$
|
10.51
|
|
$
|
9.56
|
|
Common shares outstanding, at end of period
|
28,665,726
|
|
28,731,963
|
|
28,211,282
|
|
|
28,665,726
|
|
28,211,282
|
|
|||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
||||||||||
Basic
|
27,601,702
|
|
27,627,285
|
|
27,549,475
|
|
|
27,614,423
|
|
27,601,331
|
|
|||||
Diluted
|
28,785,625
|
|
28,717,506
|
|
28,225,404
|
|
|
28,752,917
|
|
28,221,882
|
|
|||||
|
|
|
|
|
|
|
||||||||||
Performance ratios:
|
|
|
|
|
|
|
||||||||||
Return on average assets
(2)
|
0.81
|
%
|
0.76
|
%
|
0.80
|
%
|
|
0.79
|
%
|
0.75
|
%
|
|||||
Return on average equity
(2)
|
9.27
|
%
|
8.52
|
%
|
8.16
|
%
|
|
8.90
|
%
|
7.66
|
%
|
|||||
Net interest margin
(2) (3)
|
2.23
|
%
|
2.24
|
%
|
2.25
|
%
|
|
2.23
|
%
|
2.29
|
%
|
|||||
Bank efficiency ratio
(1)
|
55.03
|
%
|
57.99
|
%
|
59.63
|
%
|
|
56.47
|
%
|
59.51
|
%
|
|||||
Efficiency ratio
(1)
|
63.64
|
%
|
64.02
|
%
|
64.24
|
%
|
|
63.83
|
%
|
64.39
|
%
|
|||||
Non-interest expense to average assets
(2)
|
2.10
|
%
|
2.15
|
%
|
2.29
|
%
|
|
2.12
|
%
|
2.24
|
%
|
|||||
|
|
|
|
|
|
|
||||||||||
Asset quality:
|
|
|
|
|
|
|
||||||||||
Non-performing loans
|
$
|
7,830
|
|
$
|
14,053
|
|
$
|
19,148
|
|
|
$
|
7,830
|
|
$
|
19,148
|
|
Non-performing assets
|
$
|
11,701
|
|
$
|
18,231
|
|
$
|
20,878
|
|
|
$
|
11,701
|
|
$
|
20,878
|
|
Other real estate owned
|
$
|
3,871
|
|
$
|
4,178
|
|
$
|
1,730
|
|
|
$
|
3,871
|
|
$
|
1,730
|
|
Non-performing assets to total assets
|
0.27
|
%
|
0.45
|
%
|
0.59
|
%
|
|
0.27
|
%
|
0.59
|
%
|
|||||
Non-performing loans to total loans
|
0.21
|
%
|
0.40
|
%
|
0.64
|
%
|
|
0.21
|
%
|
0.64
|
%
|
|||||
Allowance for loan losses to loans
|
0.42
|
%
|
0.46
|
%
|
0.57
|
%
|
|
0.42
|
%
|
0.57
|
%
|
|||||
Allowance for loan losses to non-performing loans
|
203.93
|
%
|
115.17
|
%
|
89.90
|
%
|
|
203.93
|
%
|
89.90
|
%
|
|||||
Net charge-offs
|
$
|
733
|
|
$
|
2,820
|
|
$
|
1,411
|
|
|
$
|
3,553
|
|
$
|
961
|
|
Net charge-offs to average total loans
(2)
|
0.08
|
%
|
0.33
|
%
|
0.20
|
%
|
|
0.20
|
%
|
0.07
|
%
|
|||||
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
||||||||||
Total revenue
(1)
|
$
|
33,504
|
|
$
|
32,327
|
|
$
|
29,604
|
|
|
$
|
65,831
|
|
$
|
56,895
|
|
Pre-tax, pre-provision net revenue
(1)
|
$
|
11,720
|
|
$
|
11,169
|
|
$
|
10,147
|
|
|
$
|
22,889
|
|
$
|
19,432
|
|
|
|
|
|
|
|
|
||||||||||
Capital ratios:
|
|
|
|
|
|
|
||||||||||
Tier 1 leverage ratio
|
7.45
|
%
|
7.56
|
%
|
8.41
|
%
|
|
7.45
|
%
|
8.41
|
%
|
|||||
Common equity tier 1 risk-based capital ratio
|
11.21
|
%
|
11.42
|
%
|
11.25
|
%
|
|
11.21
|
%
|
11.25
|
%
|
|||||
Tier 1 risk-based capital ratio
|
11.21
|
%
|
11.42
|
%
|
11.25
|
%
|
|
11.21
|
%
|
11.25
|
%
|
|||||
Total risk-based capital ratio
|
12.14
|
%
|
12.39
|
%
|
12.76
|
%
|
|
12.14
|
%
|
12.76
|
%
|
|||||
|
|
|
|
|
|
|
||||||||||
Investment Management Segment:
|
|
|
|
|
|
|
||||||||||
Assets under management
|
$
|
8,003,000
|
|
$
|
8,192,000
|
|
$
|
10,592,000
|
|
|
$
|
8,003,000
|
|
$
|
10,592,000
|
|
Adjusted EBITDA
(1)
|
$
|
1,692
|
|
$
|
2,475
|
|
$
|
2,860
|
|
|
$
|
4,167
|
|
$
|
4,661
|
|
(1)
|
These measures are not measures recognized under GAAP and are therefore considered to be non-GAAP financial measures. See “Non-GAAP Financial Measures” for a reconciliation of these measures to their most directly comparable GAAP measures.
|
(2)
|
Ratios are annualized.
|
(3)
|
Net interest margin is calculated on a fully taxable equivalent basis.
|
|
Three Months Ended
|
|||||||||||||||||||||||||
|
June 30, 2017
|
|
March 31, 2017
|
|
June 30, 2016
|
|||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest Income
(1)
/
Expense |
Average
Yield/ Rate |
|
Average
Balance |
Interest Income
(1)
/
Expense |
Average
Yield/ Rate |
|
Average
Balance |
Interest Income
(1)
/
Expense |
Average
Yield/ Rate |
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning deposits
|
$
|
118,916
|
|
$
|
323
|
|
1.09
|
%
|
|
$
|
114,709
|
|
$
|
238
|
|
0.84
|
%
|
|
$
|
105,954
|
|
$
|
135
|
|
0.51
|
%
|
Federal funds sold
|
6,225
|
|
15
|
|
0.97
|
%
|
|
6,427
|
|
11
|
|
0.69
|
%
|
|
6,041
|
|
5
|
|
0.33
|
%
|
||||||
Investment securities available-for-sale
|
152,471
|
|
808
|
|
2.13
|
%
|
|
168,083
|
|
854
|
|
2.06
|
%
|
|
185,477
|
|
816
|
|
1.77
|
%
|
||||||
Investment securities held-to-maturity
|
61,359
|
|
639
|
|
4.18
|
%
|
|
54,591
|
|
574
|
|
4.26
|
%
|
|
45,143
|
|
457
|
|
4.07
|
%
|
||||||
FHLB stock
|
16,449
|
|
148
|
|
3.61
|
%
|
|
12,376
|
|
102
|
|
3.34
|
%
|
|
11,984
|
|
102
|
|
3.42
|
%
|
||||||
Total loans
|
3,619,251
|
|
30,242
|
|
3.35
|
%
|
|
3,448,837
|
|
27,019
|
|
3.18
|
%
|
|
2,909,217
|
|
22,354
|
|
3.09
|
%
|
||||||
Total interest-earning assets
|
3,974,671
|
|
32,175
|
|
3.25
|
%
|
|
3,805,023
|
|
28,798
|
|
3.07
|
%
|
|
3,263,816
|
|
23,869
|
|
2.94
|
%
|
||||||
Other assets
|
188,588
|
|
|
|
|
185,357
|
|
|
|
|
157,736
|
|
|
|
||||||||||||
Total assets
|
$
|
4,163,259
|
|
|
|
|
$
|
3,990,380
|
|
|
|
|
$
|
3,421,552
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing checking accounts
|
$
|
304,973
|
|
$
|
759
|
|
1.00
|
%
|
|
$
|
217,704
|
|
$
|
362
|
|
0.67
|
%
|
|
$
|
145,858
|
|
$
|
154
|
|
0.42
|
%
|
Money market deposit accounts
|
1,914,429
|
|
5,150
|
|
1.08
|
%
|
|
1,916,428
|
|
4,098
|
|
0.87
|
%
|
|
1,603,881
|
|
2,622
|
|
0.66
|
%
|
||||||
Certificates of deposit
|
924,110
|
|
2,587
|
|
1.12
|
%
|
|
934,913
|
|
2,253
|
|
0.98
|
%
|
|
852,381
|
|
1,827
|
|
0.86
|
%
|
||||||
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
FHLB borrowing
|
379,890
|
|
1,016
|
|
1.07
|
%
|
|
270,222
|
|
554
|
|
0.83
|
%
|
|
269,670
|
|
419
|
|
0.62
|
%
|
||||||
Line of credit borrowing
|
1,527
|
|
16
|
|
4.20
|
%
|
|
—
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
|
—
|
%
|
||||||
Subordinated notes payable, net
|
34,579
|
|
554
|
|
6.43
|
%
|
|
34,528
|
|
554
|
|
6.51
|
%
|
|
34,376
|
|
554
|
|
6.48
|
%
|
||||||
Total interest-bearing liabilities
|
3,559,508
|
|
10,082
|
|
1.14
|
%
|
|
3,373,795
|
|
7,821
|
|
0.94
|
%
|
|
2,906,166
|
|
5,576
|
|
0.77
|
%
|
||||||
Noninterest-bearing deposits
|
194,957
|
|
|
|
|
218,007
|
|
|
|
|
147,540
|
|
|
|
||||||||||||
Other liabilities
|
44,404
|
|
|
|
|
41,960
|
|
|
|
|
34,075
|
|
|
|
||||||||||||
Shareholders' equity
|
364,390
|
|
|
|
|
356,618
|
|
|
|
|
333,771
|
|
|
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
4,163,259
|
|
|
|
|
$
|
3,990,380
|
|
|
|
|
$
|
3,421,552
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income
(1)
|
|
$
|
22,093
|
|
|
|
|
$
|
20,977
|
|
|
|
|
$
|
18,293
|
|
|
|||||||||
Net interest spread
|
|
|
2.11
|
%
|
|
|
|
2.13
|
%
|
|
|
|
2.17
|
%
|
||||||||||||
Net interest margin
(1)
|
|
|
2.23
|
%
|
|
|
|
2.24
|
%
|
|
|
|
2.25
|
%
|
(1)
|
Net interest income and net interest margin are calculated on a fully taxable equivalent basis.
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
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
|
$
|
116,824
|
|
$
|
561
|
|
0.97
|
%
|
|
$
|
104,317
|
|
$
|
268
|
|
0.52
|
%
|
Federal funds sold
|
6,325
|
|
25
|
|
0.80
|
%
|
|
6,047
|
|
10
|
|
0.33
|
%
|
||||
Investment securities available-for-sale
|
160,234
|
|
1,662
|
|
2.09
|
%
|
|
180,892
|
|
1,559
|
|
1.73
|
%
|
||||
Investment securities held-to-maturity
|
57,994
|
|
1,214
|
|
4.22
|
%
|
|
46,211
|
|
924
|
|
4.02
|
%
|
||||
FHLB stock
|
14,424
|
|
250
|
|
3.50
|
%
|
|
10,293
|
|
199
|
|
3.89
|
%
|
||||
Total loans
|
3,534,514
|
|
57,261
|
|
3.27
|
%
|
|
2,872,090
|
|
44,341
|
|
3.10
|
%
|
||||
Total interest-earning assets
|
3,890,315
|
|
60,973
|
|
3.16
|
%
|
|
3,219,850
|
|
47,301
|
|
2.95
|
%
|
||||
Other assets
|
186,982
|
|
|
|
|
147,773
|
|
|
|
||||||||
Total assets
|
$
|
4,077,297
|
|
|
|
|
$
|
3,367,623
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing checking accounts
|
$
|
261,579
|
|
$
|
1,121
|
|
0.86
|
%
|
|
$
|
145,166
|
|
$
|
307
|
|
0.43
|
%
|
Money market deposit accounts
|
1,915,426
|
|
9,248
|
|
0.97
|
%
|
|
1,577,474
|
|
4,829
|
|
0.62
|
%
|
||||
Certificates of deposit
|
929,482
|
|
4,840
|
|
1.05
|
%
|
|
872,915
|
|
3,605
|
|
0.83
|
%
|
||||
Borrowings:
|
|
|
|
|
|
|
|
||||||||||
FHLB borrowing
|
325,359
|
|
1,570
|
|
0.97
|
%
|
|
228,461
|
|
710
|
|
0.62
|
%
|
||||
Line of credit borrowing
|
768
|
|
16
|
|
4.20
|
%
|
|
—
|
|
—
|
|
—
|
%
|
||||
Subordinated notes payable, net
|
34,553
|
|
1,108
|
|
6.47
|
%
|
|
34,351
|
|
1,108
|
|
6.49
|
%
|
||||
Total interest-bearing liabilities
|
3,467,167
|
|
17,903
|
|
1.04
|
%
|
|
2,858,367
|
|
10,559
|
|
0.74
|
%
|
||||
Noninterest-bearing deposits
|
206,416
|
|
|
|
|
149,740
|
|
|
|
||||||||
Other liabilities
|
43,188
|
|
|
|
|
28,312
|
|
|
|
||||||||
Shareholders' equity
|
360,526
|
|
|
|
|
331,204
|
|
|
|
||||||||
Total liabilities and shareholders' equity
|
$
|
4,077,297
|
|
|
|
|
$
|
3,367,623
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Net interest income
(1)
|
|
$
|
43,070
|
|
|
|
|
$
|
36,742
|
|
|
||||||
Net interest spread
|
|
|
2.12
|
%
|
|
|
|
2.21
|
%
|
||||||||
Net interest margin
(1)
|
|
|
2.23
|
%
|
|
|
|
2.29
|
%
|
(1)
|
Net interest income and net interest margin are calculated on a fully taxable equivalent basis.
|
|
June 30, 2017
|
|
March 31, 2017
|
|
June 30, 2016
|
||||||||||||
(Dollars in thousands)
|
Loan
Balance |
Percent of
Total Loans |
|
Loan
Balance |
Percent of
Total Loans |
|
Loan
Balance |
Percent of
Total Loans |
|||||||||
Private banking loans
|
$
|
1,968,139
|
|
52.2
|
%
|
|
$
|
1,837,207
|
|
51.9
|
%
|
|
$
|
1,435,545
|
|
47.9
|
%
|
Middle-market banking loans:
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
639,808
|
|
17.0
|
%
|
|
585,846
|
|
16.6
|
%
|
|
573,733
|
|
19.1
|
%
|
|||
Commercial real estate
|
1,163,365
|
|
30.8
|
%
|
|
1,114,037
|
|
31.5
|
%
|
|
988,031
|
|
33.0
|
%
|
|||
Total middle-market banking loans
|
1,803,173
|
|
47.8
|
%
|
|
1,699,883
|
|
48.1
|
%
|
|
1,561,764
|
|
52.1
|
%
|
|||
Loans held-for-investment
|
$
|
3,771,312
|
|
100.0
|
%
|
|
$
|
3,537,090
|
|
100.0
|
%
|
|
$
|
2,997,309
|
|
100.0
|
%
|
|
Three Months Ended June 30, 2017
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||||||||
(Dollars in thousands)
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
||||||||||||||||
Income statement data:
|
|
|
|
||||||||||||||||||||||
Interest income
|
$
|
32,047
|
|
$
|
—
|
|
$
|
68
|
|
$
|
32,115
|
|
|
$
|
23,730
|
|
$
|
—
|
|
$
|
65
|
|
$
|
23,795
|
|
Interest expense
|
9,515
|
|
—
|
|
567
|
|
10,082
|
|
|
5,025
|
|
—
|
|
551
|
|
5,576
|
|
||||||||
Net interest income (loss)
|
22,532
|
|
—
|
|
(499
|
)
|
22,033
|
|
|
18,705
|
|
—
|
|
(486
|
)
|
18,219
|
|
||||||||
Provision for loan losses
|
516
|
|
—
|
|
—
|
|
516
|
|
|
80
|
|
—
|
|
—
|
|
80
|
|
||||||||
Net interest income (loss) after provision for loan losses
|
22,016
|
|
—
|
|
(499
|
)
|
21,517
|
|
|
18,625
|
|
—
|
|
(486
|
)
|
18,139
|
|
||||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
—
|
|
9,182
|
|
(52
|
)
|
9,130
|
|
|
—
|
|
9,517
|
|
(55
|
)
|
9,462
|
|
||||||||
Net gain on the sale and call of investment securities
|
241
|
|
—
|
|
—
|
|
241
|
|
|
62
|
|
—
|
|
—
|
|
62
|
|
||||||||
Other non-interest income
|
2,341
|
|
—
|
|
—
|
|
2,341
|
|
|
1,922
|
|
1
|
|
—
|
|
1,923
|
|
||||||||
Total non-interest income
|
2,582
|
|
9,182
|
|
(52
|
)
|
11,712
|
|
|
1,984
|
|
9,518
|
|
(55
|
)
|
11,447
|
|
||||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Intangible amortization expense
|
—
|
|
462
|
|
—
|
|
462
|
|
|
—
|
|
438
|
|
—
|
|
438
|
|
||||||||
Other non-interest expense
|
13,688
|
|
7,612
|
|
22
|
|
21,322
|
|
|
12,299
|
|
6,683
|
|
37
|
|
19,019
|
|
||||||||
Total non-interest expense
|
13,688
|
|
8,074
|
|
22
|
|
21,784
|
|
|
12,299
|
|
7,121
|
|
37
|
|
19,457
|
|
||||||||
Income (loss) before tax
|
10,910
|
|
1,108
|
|
(573
|
)
|
11,445
|
|
|
8,310
|
|
2,397
|
|
(578
|
)
|
10,129
|
|
||||||||
Income tax expense (benefit)
|
2,819
|
|
425
|
|
(220
|
)
|
3,024
|
|
|
2,662
|
|
917
|
|
(223
|
)
|
3,356
|
|
||||||||
Net income (loss)
|
$
|
8,091
|
|
$
|
683
|
|
$
|
(353
|
)
|
$
|
8,421
|
|
|
$
|
5,648
|
|
$
|
1,480
|
|
$
|
(355
|
)
|
$
|
6,773
|
|
|
Six Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||
(Dollars in thousands)
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
||||||||||||||||
Income statement data:
|
(unaudited)
|
|
(unaudited)
|
||||||||||||||||||||||
Interest income
|
$
|
60,708
|
|
$
|
—
|
|
$
|
144
|
|
$
|
60,852
|
|
|
$
|
47,017
|
|
$
|
—
|
|
$
|
138
|
|
$
|
47,155
|
|
Interest expense
|
16,785
|
|
—
|
|
1,118
|
|
17,903
|
|
|
9,457
|
|
—
|
|
1,102
|
|
10,559
|
|
||||||||
Net interest income (loss)
|
43,923
|
|
—
|
|
(974
|
)
|
42,949
|
|
|
37,560
|
|
—
|
|
(964
|
)
|
36,596
|
|
||||||||
Provision for loan losses
|
759
|
|
—
|
|
—
|
|
759
|
|
|
202
|
|
—
|
|
—
|
|
202
|
|
||||||||
Net interest income (loss) after provision for loan losses
|
43,164
|
|
—
|
|
(974
|
)
|
42,190
|
|
|
37,358
|
|
—
|
|
(964
|
)
|
36,394
|
|
||||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
—
|
|
18,578
|
|
(108
|
)
|
18,470
|
|
|
—
|
|
16,590
|
|
(109
|
)
|
16,481
|
|
||||||||
Net gain on the sale and call of investment securities
|
239
|
|
—
|
|
—
|
|
239
|
|
|
63
|
|
—
|
|
—
|
|
63
|
|
||||||||
Other non-interest income
|
4,411
|
|
1
|
|
—
|
|
4,412
|
|
|
3,817
|
|
1
|
|
—
|
|
3,818
|
|
||||||||
Total non-interest income
|
4,650
|
|
18,579
|
|
(108
|
)
|
23,121
|
|
|
3,880
|
|
16,591
|
|
(109
|
)
|
20,362
|
|
||||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Intangible amortization expense
|
—
|
|
925
|
|
—
|
|
925
|
|
|
—
|
|
828
|
|
—
|
|
828
|
|
||||||||
Other non-interest expense
|
27,293
|
|
14,651
|
|
73
|
|
42,017
|
|
|
24,623
|
|
11,977
|
|
35
|
|
36,635
|
|
||||||||
Total non-interest expense
|
27,293
|
|
15,576
|
|
73
|
|
42,942
|
|
|
24,623
|
|
12,805
|
|
35
|
|
37,463
|
|
||||||||
Income (loss) before tax
|
20,521
|
|
3,003
|
|
(1,155
|
)
|
22,369
|
|
|
16,615
|
|
3,786
|
|
(1,108
|
)
|
19,293
|
|
||||||||
Income tax expense (benefit)
|
5,747
|
|
1,152
|
|
(443
|
)
|
6,456
|
|
|
5,653
|
|
1,448
|
|
(424
|
)
|
6,677
|
|
||||||||
Net income (loss)
|
$
|
14,774
|
|
$
|
1,851
|
|
$
|
(712
|
)
|
$
|
15,913
|
|
|
$
|
10,962
|
|
$
|
2,338
|
|
$
|
(684
|
)
|
$
|
12,616
|
|
|
June 30,
|
March 31,
|
June 30,
|
||||||
(Dollars in thousands, except per share data)
|
2017
|
2017
|
2016
|
||||||
Tangible book value per common share:
|
|
|
|
||||||
Total shareholders' equity
|
$
|
367,639
|
|
$
|
359,659
|
|
$
|
337,694
|
|
Less: intangible assets
|
66,283
|
|
66,746
|
|
68,134
|
|
|||
Tangible common equity
|
$
|
301,356
|
|
$
|
292,913
|
|
$
|
269,560
|
|
Common shares outstanding
|
28,665,726
|
|
28,731,963
|
|
28,211,282
|
|
|||
Tangible book value per common share
|
$
|
10.51
|
|
$
|
10.19
|
|
$
|
9.56
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||
Investment Management EBITDA:
|
|
|
|
|
|
|
||||||||||
Net income
|
$
|
683
|
|
$
|
1,168
|
|
$
|
1,480
|
|
|
$
|
1,851
|
|
$
|
2,338
|
|
Interest expense
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||||
Income taxes expense
|
425
|
|
727
|
|
917
|
|
|
1,152
|
|
1,448
|
|
|||||
Depreciation expense
|
122
|
|
117
|
|
25
|
|
|
239
|
|
46
|
|
|||||
Intangible amortization expense
|
462
|
|
463
|
|
438
|
|
|
925
|
|
828
|
|
|||||
EBITDA
|
1,692
|
|
2,475
|
|
2,860
|
|
|
4,167
|
|
4,660
|
|
|||||
Acquisition related items
|
—
|
|
—
|
|
—
|
|
|
—
|
|
1
|
|
|||||
Adjusted EBITDA
|
$
|
1,692
|
|
$
|
2,475
|
|
$
|
2,860
|
|
|
$
|
4,167
|
|
$
|
4,661
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||
Pre-tax, pre-provision net revenue:
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
22,033
|
|
$
|
20,916
|
|
$
|
18,219
|
|
|
$
|
42,949
|
|
$
|
36,596
|
|
Total non-interest income
|
11,712
|
|
11,409
|
|
11,447
|
|
|
23,121
|
|
20,362
|
|
|||||
Less: net gain (loss) on the sale and call of investment securities
|
241
|
|
(2
|
)
|
62
|
|
|
239
|
|
63
|
|
|||||
Total revenue
|
33,504
|
|
32,327
|
|
29,604
|
|
|
65,831
|
|
56,895
|
|
|||||
Less: total non-interest expense
|
21,784
|
|
21,158
|
|
19,457
|
|
|
42,942
|
|
37,463
|
|
|||||
Pre-tax, pre-provision net revenue
|
$
|
11,720
|
|
$
|
11,169
|
|
$
|
10,147
|
|
|
$
|
22,889
|
|
$
|
19,432
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio:
|
|
|
|
|
|
|
||||||||||
Total non-interest expense
|
$
|
21,784
|
|
$
|
21,158
|
|
$
|
19,457
|
|
|
$
|
42,942
|
|
$
|
37,463
|
|
Less: acquisition related items
|
—
|
|
—
|
|
—
|
|
|
—
|
|
1
|
|
|||||
Less: intangible amortization expense
|
462
|
|
463
|
|
438
|
|
|
925
|
|
828
|
|
|||||
Total non-interest expense, as adjusted (numerator)
|
$
|
21,322
|
|
$
|
20,695
|
|
$
|
19,019
|
|
|
$
|
42,017
|
|
$
|
36,634
|
|
Total revenue (denominator)
|
$
|
33,504
|
|
$
|
32,327
|
|
$
|
29,604
|
|
|
$
|
65,831
|
|
$
|
56,895
|
|
Efficiency ratio
|
63.64
|
%
|
64.02
|
%
|
64.24
|
%
|
|
63.83
|
%
|
64.39
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||
Bank pre-tax, pre-provision net revenue:
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
22,532
|
|
$
|
21,391
|
|
$
|
18,705
|
|
|
$
|
43,923
|
|
$
|
37,560
|
|
Total non-interest income
|
2,582
|
|
2,068
|
|
1,984
|
|
|
4,650
|
|
3,880
|
|
|||||
Less: net gain (loss) on the sale and call of investment securities
|
241
|
|
(2
|
)
|
62
|
|
|
239
|
|
63
|
|
|||||
Total revenue
|
24,873
|
|
23,461
|
|
20,627
|
|
|
48,334
|
|
41,377
|
|
|||||
Less: total non-interest expense
|
13,688
|
|
13,605
|
|
12,299
|
|
|
27,293
|
|
24,623
|
|
|||||
Pre-tax, pre-provision net revenue
|
$
|
11,185
|
|
$
|
9,856
|
|
$
|
8,328
|
|
|
$
|
21,041
|
|
$
|
16,754
|
|
|
|
|
|
|
|
|
||||||||||
Bank efficiency ratio:
|
|
|
|
|
|
|
||||||||||
Total non-interest expense (numerator)
|
$
|
13,688
|
|
$
|
13,605
|
|
$
|
12,299
|
|
|
$
|
27,293
|
|
$
|
24,623
|
|
Total revenue (denominator)
|
$
|
24,873
|
|
$
|
23,461
|
|
$
|
20,627
|
|
|
$
|
48,334
|
|
$
|
41,377
|
|
Bank efficiency ratio
|
55.03
|
%
|
57.99
|
%
|
59.63
|
%
|
|
56.47
|
%
|
59.51
|
%
|