ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Pennsylvania
|
|
20-4929029
|
(State or other jurisdiction of incorporation or organization)
|
|
(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)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, no par value
|
|
TSC
|
|
Nasdaq Global Select Market
|
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock
|
|
TSCAP
|
|
Nasdaq Global Select Market
|
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock
|
|
TSCBP
|
|
Nasdaq Global Select Market
|
Large accelerated filer
|
¨
|
|
Accelerated filer
|
ý
|
Non-accelerated filer
|
¨
|
|
Smaller reporting company
|
¨
|
|
|
|
Emerging growth company
|
¨
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
•
|
our ability to prudently manage our growth and execute our strategy; including the successful integration of past and future acquisitions, our ability to fully realize the cost savings and other benefits of our acquisitions, manage risks related to business disruption following those acquisitions, and manage customer disintermediation;
|
•
|
deterioration of our asset quality;
|
•
|
our level of non-performing assets and the costs associated with resolving problem loans, including litigation and other costs;
|
•
|
possible loan and lease losses and impairment, changes in the value of collateral securing our loans and leases and the collectability of loans and leases;
|
•
|
possible changes in the speed of loan prepayments by customers and loan origination or sales volumes;
|
•
|
business and economic conditions and trends generally and in the financial services industry, nationally and within our local market areas, including the effects of an increase in unemployment levels, slowdowns in economic growth and changes in demand for products or services or the value of assets under management;
|
•
|
our ability to maintain important deposit customer relationships, our reputation and otherwise avoid liquidity risks;
|
•
|
changes in management personnel;
|
•
|
our ability to recruit and retain key employees;
|
•
|
volatility and direction of interest rates;
|
•
|
changes in accounting policies, accounting standards, or authoritative accounting guidance, including the current expected credit loss (“CECL”) model, which may increase the level of our allowance for credit losses after adoption on January 1, 2020;
|
•
|
any impairment of our goodwill or other intangible assets;
|
•
|
our ability to develop and provide competitive products and services that appeal to our customers and target markets;
|
•
|
our ability to provide investment management performance competitive with our peers and benchmarks;
|
•
|
fluctuations in the carrying value of the assets under management held by our Chartwell Investment Partners, LLC subsidiary, as well as the relative and absolute investment performance of such subsidiary’s investment products;
|
•
|
operational risks associated with our business, including technology and cyber-security related risks;
|
•
|
increased competition in the financial services industry, particularly from regional and national institutions;
|
•
|
negative perceptions or publicity with respect to any products or services we offer;
|
•
|
adverse judgments or other resolutions of pending and future legal proceedings, and costs incurred in defending such proceedings;
|
•
|
changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, and potential expenses associated with complying with such laws and regulations;
|
•
|
our ability to comply with applicable capital and liquidity requirements, including our ability to generate liquidity internally or raise capital on favorable terms;
|
•
|
regulatory limits on our ability to receive dividends from our subsidiaries and pay dividends to shareholders;
|
•
|
further government intervention in the U.S. financial system;
|
•
|
natural disasters and adverse weather, acts of terrorism, cyber-attacks, an outbreak of hostilities or other international or domestic calamities, and other matters beyond our control;
|
•
|
the effects of any reputation, credit, interest rate, market, operational, legal, liquidity, regulatory or compliance risk resulting from developments related to any of the risks discussed above; and
|
•
|
other factors that are discussed in the section entitled “Risk Factors” in our Annual Report on Form 10-K, filed with the SEC, which is accessible at www.sec.gov.
|
(Dollars in thousands)
|
September 30,
2019 |
December 31,
2018 |
||||
ASSETS
|
|
|
||||
|
|
|
||||
Cash
|
$
|
355
|
|
$
|
367
|
|
Interest-earning deposits with other institutions
|
378,182
|
|
183,625
|
|
||
Federal funds sold
|
5,411
|
|
5,993
|
|
||
Cash and cash equivalents
|
383,948
|
|
189,985
|
|
||
Debt securities available-for-sale, at fair value
|
261,180
|
|
233,296
|
|
||
Debt securities held-to-maturity, at cost
|
187,210
|
|
196,131
|
|
||
Equity securities, at fair value
|
4,807
|
|
12,661
|
|
||
Federal Home Loan Bank stock
|
15,524
|
|
24,671
|
|
||
Total investment securities
|
468,721
|
|
466,759
|
|
||
Loans and leases held-for-investment
|
6,016,680
|
|
5,132,873
|
|
||
Allowance for loan and lease losses
|
(13,374
|
)
|
(13,208
|
)
|
||
Loans and leases held-for-investment, net
|
6,003,306
|
|
5,119,665
|
|
||
Accrued interest receivable
|
22,157
|
|
20,702
|
|
||
Investment management fees receivable, net
|
7,453
|
|
7,299
|
|
||
Goodwill
|
41,660
|
|
41,660
|
|
||
Intangible assets, net of accumulated amortization of $9,935 and $8,429, respectively
|
24,697
|
|
26,203
|
|
||
Office properties and equipment, net of accumulated depreciation of $13,591 and $12,385, respectively
|
7,764
|
|
5,126
|
|
||
Operating lease right-of-use asset
|
23,088
|
|
—
|
|
||
Bank owned life insurance
|
69,607
|
|
68,309
|
|
||
Prepaid expenses and other assets
|
146,048
|
|
89,947
|
|
||
Total assets
|
$
|
7,198,449
|
|
$
|
6,035,655
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
||||
|
|
|
||||
Liabilities:
|
|
|
||||
Deposits
|
$
|
6,094,605
|
|
$
|
5,050,461
|
|
Borrowings, net
|
330,000
|
|
404,166
|
|
||
Accrued interest payable on deposits and borrowings
|
5,705
|
|
5,204
|
|
||
Deferred tax liability, net
|
4,529
|
|
3,513
|
|
||
Acquisition earn out liability
|
—
|
|
2,920
|
|
||
Operating lease liability
|
24,037
|
|
—
|
|
||
Other accrued expenses and other liabilities
|
135,066
|
|
90,037
|
|
||
Total liabilities
|
6,593,942
|
|
5,556,301
|
|
||
|
|
|
||||
Shareholders’ Equity:
|
|
|
||||
Preferred stock, no par value; Shares authorized - 150,000;
Series A Shares issued and outstanding - 40,250 and 40,250, respectively |
38,468
|
|
38,468
|
|
||
Series B Shares issued and outstanding - 80,500 and 0, respectively
|
77,596
|
|
—
|
|
||
Common stock, no par value; Shares authorized - 45,000,000;
Shares issued - 31,410,262 and 30,893,584, respectively; Shares outstanding - 29,296,970 and 28,878,674, respectively |
294,188
|
|
293,355
|
|
||
Additional paid-in capital
|
21,480
|
|
15,364
|
|
||
Retained earnings
|
205,807
|
|
164,009
|
|
||
Accumulated other comprehensive income (loss), net
|
(530
|
)
|
(1,331
|
)
|
||
Treasury stock (2,113,292 and 2,014,910 shares, respectively)
|
(32,502
|
)
|
(30,511
|
)
|
||
Total shareholders’ equity
|
604,507
|
|
479,354
|
|
||
Total liabilities and shareholders’ equity
|
$
|
7,198,449
|
|
$
|
6,035,655
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands, except per share data)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
|
|
|
|
|
|
||||||||
Interest income:
|
|
|
|
|
|
||||||||
Loans and leases
|
$
|
61,551
|
|
$
|
48,470
|
|
|
$
|
179,392
|
|
$
|
132,111
|
|
Investments
|
3,993
|
|
2,893
|
|
|
12,497
|
|
6,977
|
|
||||
Interest-earning deposits
|
2,188
|
|
1,061
|
|
|
5,084
|
|
2,536
|
|
||||
Total interest income
|
67,732
|
|
52,424
|
|
|
196,973
|
|
141,624
|
|
||||
|
|
|
|
|
|
||||||||
Interest expense:
|
|
|
|
|
|
||||||||
Deposits
|
34,114
|
|
22,182
|
|
|
95,602
|
|
52,279
|
|
||||
Borrowings
|
1,302
|
|
1,423
|
|
|
7,380
|
|
5,473
|
|
||||
Total interest expense
|
35,416
|
|
23,605
|
|
|
102,982
|
|
57,752
|
|
||||
Net interest income
|
32,316
|
|
28,819
|
|
|
93,991
|
|
83,872
|
|
||||
Provision (credit) for loan and lease losses
|
(607
|
)
|
(234
|
)
|
|
(1,696
|
)
|
376
|
|
||||
Net interest income after provision for loan and lease losses
|
32,923
|
|
29,053
|
|
|
95,687
|
|
83,496
|
|
||||
Non-interest income:
|
|
|
|
|
|
||||||||
Investment management fees
|
8,902
|
|
9,828
|
|
|
27,580
|
|
28,422
|
|
||||
Service charges on deposits
|
129
|
|
146
|
|
|
343
|
|
420
|
|
||||
Net gain on the sale and call of debt securities
|
206
|
|
—
|
|
|
346
|
|
6
|
|
||||
Swap fees
|
4,171
|
|
1,881
|
|
|
7,666
|
|
5,066
|
|
||||
Commitment and other loan fees
|
464
|
|
373
|
|
|
1,251
|
|
1,036
|
|
||||
Other income
|
371
|
|
523
|
|
|
2,105
|
|
1,392
|
|
||||
Total non-interest income
|
14,243
|
|
12,751
|
|
|
39,291
|
|
36,342
|
|
||||
Non-interest expense:
|
|
|
|
|
|
||||||||
Compensation and employee benefits
|
18,707
|
|
16,967
|
|
|
52,467
|
|
48,177
|
|
||||
Premises and occupancy costs
|
1,704
|
|
1,432
|
|
|
4,808
|
|
3,986
|
|
||||
Professional fees
|
1,305
|
|
889
|
|
|
3,706
|
|
3,538
|
|
||||
FDIC insurance expense
|
994
|
|
1,053
|
|
|
3,462
|
|
3,333
|
|
||||
General insurance expense
|
258
|
|
278
|
|
|
811
|
|
767
|
|
||||
State capital shares tax
|
(720
|
)
|
485
|
|
|
40
|
|
1,396
|
|
||||
Travel and entertainment expense
|
1,339
|
|
986
|
|
|
3,214
|
|
2,638
|
|
||||
Intangible amortization expense
|
502
|
|
502
|
|
|
1,506
|
|
1,465
|
|
||||
Other operating expenses
|
3,684
|
|
3,094
|
|
|
12,016
|
|
9,554
|
|
||||
Total non-interest expense
|
27,773
|
|
25,686
|
|
|
82,030
|
|
74,854
|
|
||||
Income before tax
|
19,393
|
|
16,118
|
|
|
52,948
|
|
44,984
|
|
||||
Income tax expense
|
3,059
|
|
1,807
|
|
|
7,359
|
|
5,680
|
|
||||
Net income
|
$
|
16,334
|
|
$
|
14,311
|
|
|
$
|
45,589
|
|
$
|
39,304
|
|
Preferred stock dividends
|
1,962
|
|
679
|
|
|
3,791
|
|
1,441
|
|
||||
Net income available to common shareholders
|
$
|
14,372
|
|
$
|
13,632
|
|
|
$
|
41,798
|
|
$
|
37,863
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.52
|
|
$
|
0.49
|
|
|
$
|
1.50
|
|
$
|
1.37
|
|
Diluted
|
$
|
0.50
|
|
$
|
0.47
|
|
|
$
|
1.45
|
|
$
|
1.31
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
|
|
|
|
|
|
||||||||
Net income
|
$
|
16,334
|
|
$
|
14,311
|
|
|
$
|
45,589
|
|
$
|
39,304
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses) on debt securities, net of tax expense (benefit) of $272, $(59), $1,466 and $(455), respectively
|
787
|
|
(192
|
)
|
|
4,477
|
|
(1,517
|
)
|
||||
|
|
|
|
|
|
||||||||
Reclassification adjustment for gains included in net income on debt securities, net of tax expense of $(32), $0, $(62) and $(1), respectively
|
(101
|
)
|
—
|
|
|
(198
|
)
|
(5
|
)
|
||||
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses) on derivatives, net of tax expense (benefit) of $(231), $37, $(787) and $336, respectively
|
(736
|
)
|
120
|
|
|
(2,506
|
)
|
1,103
|
|
||||
|
|
|
|
|
|
||||||||
Reclassification adjustment for gains included in net income on derivatives, net of tax expense of $(37), $(96), $(305) and $(222), respectively
|
(120
|
)
|
(316
|
)
|
|
(972
|
)
|
(730
|
)
|
||||
|
|
|
|
|
|
||||||||
Other comprehensive income (loss)
|
(170
|
)
|
(388
|
)
|
|
801
|
|
(1,149
|
)
|
||||
|
|
|
|
|
|
||||||||
Total comprehensive income
|
$
|
16,164
|
|
$
|
13,923
|
|
|
$
|
46,390
|
|
$
|
38,155
|
|
(Dollars in thousands)
|
Preferred Stock
|
Common
Stock |
Additional
Paid-in-Capital |
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss), Net
|
Treasury Stock
|
Total Shareholders’ Equity
|
||||||||||||||
Balance, December 31, 2017
|
$
|
—
|
|
$
|
289,507
|
|
$
|
10,290
|
|
$
|
111,732
|
|
$
|
1,246
|
|
$
|
(23,704
|
)
|
$
|
389,071
|
|
Impact of adoption of ASU 2014-09
|
—
|
|
—
|
|
—
|
|
534
|
|
—
|
|
—
|
|
534
|
|
|||||||
Reclassification for equity securities under ASU 2016-01
|
—
|
|
—
|
|
—
|
|
(286
|
)
|
286
|
|
—
|
|
—
|
|
|||||||
Reclassification for certain income tax effects under ASU 2018-02
|
—
|
|
—
|
|
—
|
|
(274
|
)
|
274
|
|
—
|
|
—
|
|
|||||||
Net income
|
—
|
|
—
|
|
—
|
|
39,304
|
|
—
|
|
—
|
|
39,304
|
|
|||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,149
|
)
|
—
|
|
(1,149
|
)
|
|||||||
Issuance of preferred stock (net of offering costs of $1,782)
|
38,468
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
38,468
|
|
|||||||
Preferred stock dividends
|
—
|
|
—
|
|
—
|
|
(1,441
|
)
|
—
|
|
—
|
|
(1,441
|
)
|
|||||||
Exercise of stock options
|
—
|
|
3,314
|
|
(1,968
|
)
|
—
|
|
—
|
|
—
|
|
1,346
|
|
|||||||
Purchase of treasury stock
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,584
|
)
|
(4,584
|
)
|
|||||||
Stock-based compensation
|
—
|
|
—
|
|
6,071
|
|
—
|
|
—
|
|
—
|
|
6,071
|
|
|||||||
Balance, September 30, 2018
|
$
|
38,468
|
|
$
|
292,821
|
|
$
|
14,393
|
|
$
|
149,569
|
|
$
|
657
|
|
$
|
(28,288
|
)
|
$
|
467,620
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, December 31, 2018
|
$
|
38,468
|
|
$
|
293,355
|
|
$
|
15,364
|
|
$
|
164,009
|
|
$
|
(1,331
|
)
|
$
|
(30,511
|
)
|
$
|
479,354
|
|
Net income
|
—
|
|
—
|
|
—
|
|
45,589
|
|
—
|
|
—
|
|
45,589
|
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
801
|
|
—
|
|
801
|
|
|||||||
Issuance of preferred stock (net of offering costs of $2,904)
|
77,596
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
77,596
|
|
|||||||
Preferred stock dividends
|
—
|
|
—
|
|
—
|
|
(3,791
|
)
|
—
|
|
—
|
|
(3,791
|
)
|
|||||||
Exercise of stock options
|
—
|
|
833
|
|
(375
|
)
|
—
|
|
—
|
|
—
|
|
458
|
|
|||||||
Purchase of treasury stock
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,991
|
)
|
(1,991
|
)
|
|||||||
Stock-based compensation
|
—
|
|
—
|
|
6,491
|
|
—
|
|
—
|
|
—
|
|
6,491
|
|
|||||||
Balance, September 30, 2019
|
$
|
116,064
|
|
$
|
294,188
|
|
$
|
21,480
|
|
$
|
205,807
|
|
$
|
(530
|
)
|
$
|
(32,502
|
)
|
$
|
604,507
|
|
|
Nine Months Ended September 30,
|
|||||
(Dollars in thousands)
|
2019
|
2018
|
||||
Cash flows from operating activities:
|
|
|
||||
Net income
|
$
|
45,589
|
|
$
|
39,304
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
||||
Depreciation and intangible amortization expense
|
2,711
|
|
2,625
|
|
||
Amortization of deferred financing costs
|
84
|
|
152
|
|
||
Provision (credit) for loan losses
|
(1,696
|
)
|
376
|
|
||
Net gain on the sale of loans
|
—
|
|
(19
|
)
|
||
Stock-based compensation expense
|
6,491
|
|
6,071
|
|
||
Net gain on the sale or call of debt securities available-for-sale
|
(260
|
)
|
(3
|
)
|
||
Net gain on the call of debt securities held-to-maturity
|
(86
|
)
|
(3
|
)
|
||
Income from equity securities
|
(881
|
)
|
(38
|
)
|
||
Net amortization of premiums and discounts on debt securities
|
40
|
|
551
|
|
||
Increase in investment management fees receivable, net
|
(154
|
)
|
(346
|
)
|
||
Increase in accrued interest receivable
|
(1,455
|
)
|
(4,951
|
)
|
||
Increase in accrued interest payable
|
501
|
|
1,572
|
|
||
Bank owned life insurance income
|
(1,298
|
)
|
(1,285
|
)
|
||
Increase in income taxes payable
|
1,997
|
|
—
|
|
||
Increase in prepaid income taxes
|
9,130
|
|
10,790
|
|
||
Deferred tax provision
|
705
|
|
944
|
|
||
Decrease in accounts payable and other accrued expenses
|
(9,951
|
)
|
(313
|
)
|
||
Other, net
|
(2,735
|
)
|
129
|
|
||
Net cash provided by operating activities
|
48,732
|
|
55,556
|
|
||
Cash flows from investing activities:
|
|
|
||||
Purchase of debt securities available-for-sale
|
(59,110
|
)
|
(150,556
|
)
|
||
Purchase of debt securities held-to-maturity
|
(174,614
|
)
|
(38,928
|
)
|
||
Purchase of equity securities
|
—
|
|
(5,200
|
)
|
||
Proceeds from the sale of debt securities available-for-sale
|
4,993
|
|
2,037
|
|
||
Proceeds from the sale of equity securities
|
8,844
|
|
—
|
|
||
Principal repayments and maturities of debt securities available-for-sale
|
32,171
|
|
18,657
|
|
||
Principal repayments and maturities of debt securities held-to-maturity
|
183,585
|
|
7,004
|
|
||
Investment in low income housing and historic tax credits
|
(12,201
|
)
|
(3,541
|
)
|
||
Investment in small business investment companies
|
(1,043
|
)
|
(736
|
)
|
||
Net redemption (purchase) of Federal Home Loan Bank stock
|
9,147
|
|
(3,087
|
)
|
||
Net increase in loans and leases
|
(881,944
|
)
|
(582,394
|
)
|
||
Proceeds from loan sales
|
—
|
|
7,092
|
|
||
Additions to office properties and equipment
|
(3,843
|
)
|
(1,253
|
)
|
||
Acquisition
|
—
|
|
(1,335
|
)
|
||
Net cash used in investing activities
|
(894,015
|
)
|
(752,240
|
)
|
||
Cash flows from financing activities:
|
|
|
||||
Net increase in deposit accounts
|
1,044,144
|
|
766,977
|
|
||
Net decrease in Federal Home Loan Bank advances
|
(35,000
|
)
|
(70,000
|
)
|
||
Net decrease in line of credit advances
|
(4,250
|
)
|
(3,700
|
)
|
||
Net proceeds from issuance of preferred stock
|
77,596
|
|
38,468
|
|
||
Repayment of subordinated debt
|
(35,000
|
)
|
—
|
|
||
Net proceeds from exercise of stock options
|
458
|
|
1,346
|
|
||
Payment of contingent consideration
|
(2,920
|
)
|
—
|
|
||
Purchase of treasury stock
|
(1,991
|
)
|
(4,584
|
)
|
||
Dividends paid on preferred stock
|
(3,791
|
)
|
(1,441
|
)
|
||
Net cash provided by financing activities
|
1,039,246
|
|
727,066
|
|
||
Net change in cash and cash equivalents during the period
|
193,963
|
|
30,382
|
|
||
Cash and cash equivalents at beginning of the period
|
189,985
|
|
156,153
|
|
||
Cash and cash equivalents at end of the period
|
$
|
383,948
|
|
$
|
186,535
|
|
|
|
|
|
Nine Months Ended September 30,
|
|||||
(Dollars in thousands)
|
2019
|
2018
|
||||
Supplemental disclosure of cash flow information:
|
|
|
||||
Cash paid (received) during the period for:
|
|
|
||||
Interest expense
|
$
|
102,397
|
|
$
|
56,028
|
|
Income taxes
|
$
|
(4,473
|
)
|
$
|
(6,054
|
)
|
Other non-cash activity:
|
|
|
||||
Operating lease right-of-use asset
|
$
|
23,088
|
|
$
|
—
|
|
Loan foreclosures and repossessions
|
$
|
1,492
|
|
$
|
—
|
|
Unsettled purchase of debt securities held-to-maturity
|
$
|
—
|
|
$
|
5,000
|
|
Contingent consideration
|
$
|
—
|
|
$
|
3,138
|
|
|
|
|
|
|
•
|
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.
|
|
September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||
Debt securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
183,621
|
|
$
|
2,788
|
|
$
|
444
|
|
$
|
185,965
|
|
Trust preferred securities
|
18,060
|
|
—
|
|
706
|
|
17,354
|
|
||||
Agency collateralized mortgage obligations
|
28,887
|
|
17
|
|
38
|
|
28,866
|
|
||||
Agency mortgage-backed securities
|
18,469
|
|
426
|
|
—
|
|
18,895
|
|
||||
Agency debentures
|
9,486
|
|
614
|
|
—
|
|
10,100
|
|
||||
Total debt securities available-for-sale
|
258,523
|
|
3,845
|
|
1,188
|
|
261,180
|
|
||||
Debt securities held-to-maturity:
|
|
|
|
|
||||||||
Corporate bonds
|
27,180
|
|
585
|
|
—
|
|
27,765
|
|
||||
Agency debentures
|
136,892
|
|
969
|
|
105
|
|
137,756
|
|
||||
Municipal bonds
|
18,765
|
|
150
|
|
—
|
|
18,915
|
|
||||
Agency mortgage-backed securities
|
4,373
|
|
409
|
|
—
|
|
4,782
|
|
||||
Total debt securities held-to-maturity
|
187,210
|
|
2,113
|
|
105
|
|
189,218
|
|
||||
Total debt securities
|
$
|
445,733
|
|
$
|
5,958
|
|
$
|
1,293
|
|
$
|
450,398
|
|
|
December 31, 2018
|
|||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||
Debt securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
152,691
|
|
$
|
33
|
|
$
|
1,661
|
|
$
|
151,063
|
|
Trust preferred securities
|
17,964
|
|
—
|
|
1,115
|
|
16,849
|
|
||||
Non-agency collateralized loan obligations
|
393
|
|
—
|
|
3
|
|
390
|
|
||||
Agency collateralized mortgage obligations
|
33,680
|
|
42
|
|
4
|
|
33,718
|
|
||||
Agency mortgage-backed securities
|
21,575
|
|
37
|
|
348
|
|
21,264
|
|
||||
Agency debentures
|
9,994
|
|
67
|
|
49
|
|
10,012
|
|
||||
Total debt securities available-for-sale
|
236,297
|
|
179
|
|
3,180
|
|
233,296
|
|
||||
Debt securities held-to-maturity:
|
|
|
|
|
||||||||
Corporate bonds
|
27,184
|
|
353
|
|
22
|
|
27,515
|
|
||||
Agency debentures
|
141,575
|
|
472
|
|
34
|
|
142,013
|
|
||||
Municipal bonds
|
22,963
|
|
11
|
|
61
|
|
22,913
|
|
||||
Agency mortgage-backed securities
|
4,409
|
|
—
|
|
27
|
|
4,382
|
|
||||
Total debt securities held-to-maturity
|
196,131
|
|
836
|
|
144
|
|
196,823
|
|
||||
Total debt securities
|
$
|
432,428
|
|
$
|
1,015
|
|
$
|
3,324
|
|
$
|
430,119
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Taxable interest income
|
$
|
3,521
|
|
$
|
2,408
|
|
|
$
|
11,034
|
|
$
|
5,722
|
|
Non-taxable interest income
|
90
|
|
101
|
|
|
295
|
|
317
|
|
||||
Dividend income
|
382
|
|
384
|
|
|
1,168
|
|
938
|
|
||||
Total interest income on investment securities
|
$
|
3,993
|
|
$
|
2,893
|
|
|
$
|
12,497
|
|
$
|
6,977
|
|
|
September 30, 2019
|
||||||||||||
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Estimated
Fair Value |
|
Amortized
Cost |
Estimated
Fair Value |
||||||||
Due in less than one year
|
$
|
45,082
|
|
$
|
45,284
|
|
|
$
|
3,306
|
|
$
|
3,316
|
|
Due from one to five years
|
107,420
|
|
109,664
|
|
|
20,622
|
|
20,892
|
|
||||
Due from five to ten years
|
40,983
|
|
40,816
|
|
|
127,952
|
|
128,597
|
|
||||
Due after ten years
|
65,038
|
|
65,416
|
|
|
35,330
|
|
36,413
|
|
||||
Total debt securities
|
$
|
258,523
|
|
$
|
261,180
|
|
|
$
|
187,210
|
|
$
|
189,218
|
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
|
2019
|
2018
|
|
2019
|
2018
|
||||||||||||||||
Proceeds from sales
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
4,993
|
|
$
|
2,037
|
|
|
$
|
—
|
|
$
|
—
|
|
Proceeds from calls
|
9,435
|
|
—
|
|
|
63,529
|
|
—
|
|
|
13,517
|
|
4,081
|
|
|
180,824
|
|
1,000
|
|
||||||||
Total proceeds
|
$
|
9,435
|
|
$
|
—
|
|
|
$
|
63,529
|
|
$
|
—
|
|
|
$
|
18,510
|
|
$
|
6,118
|
|
|
$
|
180,824
|
|
$
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross realized gains
|
$
|
134
|
|
$
|
—
|
|
|
$
|
72
|
|
$
|
—
|
|
|
$
|
260
|
|
$
|
6
|
|
|
$
|
86
|
|
$
|
3
|
|
Gross realized losses
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
3
|
|
|
—
|
|
—
|
|
||||||||
Net realized gains
|
$
|
134
|
|
$
|
—
|
|
|
$
|
72
|
|
$
|
—
|
|
|
$
|
260
|
|
$
|
3
|
|
|
$
|
86
|
|
$
|
3
|
|
|
September 30, 2019
|
|||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
Fair value
|
Unrealized losses
|
|
Fair value
|
Unrealized losses
|
|
Fair value
|
Unrealized losses
|
||||||||||||
Debt securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
$
|
—
|
|
$
|
—
|
|
|
$
|
20,660
|
|
$
|
444
|
|
|
$
|
20,660
|
|
$
|
444
|
|
Trust preferred securities
|
17,353
|
|
706
|
|
|
—
|
|
—
|
|
|
17,353
|
|
706
|
|
||||||
Agency collateralized mortgage obligations
|
22,319
|
|
29
|
|
|
2,720
|
|
9
|
|
|
25,039
|
|
38
|
|
||||||
Total debt securities available-for-sale
|
39,672
|
|
735
|
|
|
23,380
|
|
453
|
|
|
63,052
|
|
1,188
|
|
||||||
Debt securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||||||
Agency debentures
|
31,922
|
|
105
|
|
|
—
|
|
—
|
|
|
31,922
|
|
105
|
|
||||||
Total debt securities held-to-maturity
|
31,922
|
|
105
|
|
|
—
|
|
—
|
|
|
31,922
|
|
105
|
|
||||||
Total temporarily impaired debt securities (1)
|
$
|
71,594
|
|
$
|
840
|
|
|
$
|
23,380
|
|
$
|
453
|
|
|
$
|
94,974
|
|
$
|
1,293
|
|
(1)
|
The number of investment positions with unrealized losses totaled 20 for available-for-sale securities and 4 for held-to-maturity securities.
|
|
December 31, 2018
|
|||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
Fair value
|
Unrealized losses
|
|
Fair value
|
Unrealized losses
|
|
Fair value
|
Unrealized losses
|
||||||||||||
Debt securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
$
|
110,200
|
|
$
|
789
|
|
|
$
|
22,954
|
|
$
|
872
|
|
|
$
|
133,154
|
|
$
|
1,661
|
|
Trust preferred securities
|
16,849
|
|
1,115
|
|
|
—
|
|
—
|
|
|
16,849
|
|
1,115
|
|
||||||
Non-agency collateralized loan obligations
|
—
|
|
—
|
|
|
390
|
|
3
|
|
|
390
|
|
3
|
|
||||||
Agency collateralized mortgage obligations
|
—
|
|
—
|
|
|
3,015
|
|
4
|
|
|
3,015
|
|
4
|
|
||||||
Agency mortgage-backed securities
|
5,851
|
|
51
|
|
|
8,690
|
|
297
|
|
|
14,541
|
|
348
|
|
||||||
Agency debentures
|
3,487
|
|
49
|
|
|
—
|
|
—
|
|
|
3,487
|
|
49
|
|
||||||
Total debt securities available-for-sale
|
136,387
|
|
2,004
|
|
|
35,049
|
|
1,176
|
|
|
171,436
|
|
3,180
|
|
||||||
Debt securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
3,978
|
|
22
|
|
|
—
|
|
—
|
|
|
3,978
|
|
22
|
|
||||||
Agency debentures
|
1,952
|
|
34
|
|
|
—
|
|
—
|
|
|
1,952
|
|
34
|
|
||||||
Municipal bonds
|
16,105
|
|
51
|
|
|
2,110
|
|
10
|
|
|
18,215
|
|
61
|
|
||||||
Agency mortgage-backed securities
|
4,382
|
|
27
|
|
|
—
|
|
—
|
|
|
4,382
|
|
27
|
|
||||||
Total debt securities held-to-maturity
|
26,417
|
|
134
|
|
|
2,110
|
|
10
|
|
|
28,527
|
|
144
|
|
||||||
Total temporarily impaired debt securities (1)
|
$
|
162,804
|
|
$
|
2,138
|
|
|
$
|
37,159
|
|
$
|
1,186
|
|
|
$
|
199,963
|
|
$
|
3,324
|
|
(1)
|
The number of investment positions with unrealized losses totaled 78 for available-for-sale securities and 29 for held-to-maturity securities.
|
|
September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Loans and leases held-for-investment, before deferred fees and costs
|
$
|
3,361,987
|
|
$
|
989,769
|
|
$
|
1,660,564
|
|
$
|
6,012,320
|
|
Deferred loan costs (fees)
|
6,155
|
|
2,739
|
|
(4,534
|
)
|
4,360
|
|
||||
Loans and leases held-for-investment, net of deferred fees and costs
|
3,368,142
|
|
992,508
|
|
1,656,030
|
|
6,016,680
|
|
||||
Allowance for loan and lease losses
|
(1,851
|
)
|
(5,316
|
)
|
(6,207
|
)
|
(13,374
|
)
|
||||
Loans and leases held-for-investment, net
|
$
|
3,366,291
|
|
$
|
987,192
|
|
$
|
1,649,823
|
|
$
|
6,003,306
|
|
|
December 31, 2018
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Loans and leases held-for-investment, before deferred fees and costs
|
$
|
2,864,094
|
|
$
|
781,836
|
|
$
|
1,482,148
|
|
$
|
5,128,078
|
|
Deferred loan costs (fees)
|
5,449
|
|
3,484
|
|
(4,138
|
)
|
4,795
|
|
||||
Loans and leases held-for-investment, net of deferred fees and costs
|
2,869,543
|
|
785,320
|
|
1,478,010
|
|
5,132,873
|
|
||||
Allowance for loan and lease losses
|
(1,942
|
)
|
(5,764
|
)
|
(5,502
|
)
|
(13,208
|
)
|
||||
Loans and leases held-for-investment, net
|
$
|
2,867,601
|
|
$
|
779,556
|
|
$
|
1,472,508
|
|
$
|
5,119,665
|
|
|
September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Pass
|
$
|
3,364,566
|
|
$
|
976,204
|
|
$
|
1,649,303
|
|
$
|
5,990,073
|
|
Special mention
|
3,392
|
|
9,745
|
|
6,467
|
|
19,604
|
|
||||
Substandard
|
184
|
|
6,559
|
|
260
|
|
7,003
|
|
||||
Loans and leases held-for-investment
|
$
|
3,368,142
|
|
$
|
992,508
|
|
$
|
1,656,030
|
|
$
|
6,016,680
|
|
|
December 31, 2018
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Pass
|
$
|
2,864,774
|
|
$
|
767,540
|
|
$
|
1,475,793
|
|
$
|
5,108,107
|
|
Special mention
|
2,532
|
|
12,636
|
|
2,217
|
|
17,385
|
|
||||
Substandard
|
2,237
|
|
5,144
|
|
—
|
|
7,381
|
|
||||
Loans and leases held-for-investment
|
$
|
2,869,543
|
|
$
|
785,320
|
|
$
|
1,478,010
|
|
$
|
5,132,873
|
|
|
Three Months Ended September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Balance, beginning of period
|
$
|
2,140
|
|
$
|
5,911
|
|
$
|
5,965
|
|
$
|
14,016
|
|
Provision (credit) for loan losses
|
(177
|
)
|
(672
|
)
|
242
|
|
(607
|
)
|
||||
Charge-offs
|
(112
|
)
|
—
|
|
—
|
|
(112
|
)
|
||||
Recoveries
|
—
|
|
77
|
|
—
|
|
77
|
|
||||
Balance, end of period
|
$
|
1,851
|
|
$
|
5,316
|
|
$
|
6,207
|
|
$
|
13,374
|
|
|
Three Months Ended September 30, 2018
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Balance, beginning of period
|
$
|
1,557
|
|
$
|
8,786
|
|
$
|
4,978
|
|
$
|
15,321
|
|
Provision (credit) for loan losses
|
337
|
|
(838
|
)
|
267
|
|
(234
|
)
|
||||
Charge-offs
|
—
|
|
(2,068
|
)
|
—
|
|
(2,068
|
)
|
||||
Recoveries
|
—
|
|
564
|
|
—
|
|
564
|
|
||||
Balance, end of period
|
$
|
1,894
|
|
$
|
6,444
|
|
$
|
5,245
|
|
$
|
13,583
|
|
|
Nine Months Ended September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Balance, beginning of period
|
$
|
1,942
|
|
$
|
5,764
|
|
$
|
5,502
|
|
$
|
13,208
|
|
Provision (credit) for loan losses
|
21
|
|
(2,422
|
)
|
705
|
|
(1,696
|
)
|
||||
Charge-offs
|
(112
|
)
|
—
|
|
—
|
|
(112
|
)
|
||||
Recoveries
|
—
|
|
1,974
|
|
—
|
|
1,974
|
|
||||
Balance, end of period
|
$
|
1,851
|
|
$
|
5,316
|
|
$
|
6,207
|
|
$
|
13,374
|
|
|
Nine Months Ended September 30, 2018
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Balance, beginning of period
|
$
|
1,577
|
|
$
|
8,043
|
|
$
|
4,797
|
|
$
|
14,417
|
|
Provision (credit) for loan losses
|
317
|
|
(389
|
)
|
448
|
|
376
|
|
||||
Charge-offs
|
—
|
|
(2,068
|
)
|
—
|
|
(2,068
|
)
|
||||
Recoveries
|
—
|
|
858
|
|
—
|
|
858
|
|
||||
Balance, end of period
|
$
|
1,894
|
|
$
|
6,444
|
|
$
|
5,245
|
|
$
|
13,583
|
|
|
September 30, 2019
|
|||||||||||||||||
(Dollars in thousands)
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90 Days or More Past Due
|
Total Past Due
|
Current
|
Total
|
||||||||||||
Private banking
|
$
|
—
|
|
$
|
808
|
|
$
|
184
|
|
$
|
992
|
|
$
|
3,367,150
|
|
$
|
3,368,142
|
|
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
992,508
|
|
992,508
|
|
||||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
1,656,030
|
|
1,656,030
|
|
||||||
Loans and leases held-for-investment
|
$
|
—
|
|
$
|
808
|
|
$
|
184
|
|
$
|
992
|
|
$
|
6,015,688
|
|
$
|
6,016,680
|
|
|
December 31, 2018
|
|||||||||||||||||
(Dollars in thousands)
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90 Days or More Past Due
|
Total Past Due
|
Current
|
Total
|
||||||||||||
Private banking
|
$
|
1,040
|
|
$
|
173
|
|
$
|
2,000
|
|
$
|
3,213
|
|
$
|
2,866,330
|
|
$
|
2,869,543
|
|
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
785,320
|
|
785,320
|
|
||||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
1,478,010
|
|
1,478,010
|
|
||||||
Loans and leases held-for-investment
|
$
|
1,040
|
|
$
|
173
|
|
$
|
2,000
|
|
$
|
3,213
|
|
$
|
5,129,660
|
|
$
|
5,132,873
|
|
|
As of and for the Nine Months Ended September 30, 2019
|
||||||||||||||
(Dollars in thousands)
|
Recorded Investment
|
Unpaid Principal Balance
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||
With a related allowance recorded:
|
|
|
|
|
|
||||||||||
Private banking
|
$
|
171
|
|
$
|
193
|
|
$
|
171
|
|
$
|
171
|
|
$
|
—
|
|
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total with a related allowance recorded
|
171
|
|
193
|
|
171
|
|
171
|
|
—
|
|
|||||
Without a related allowance recorded:
|
|
|
|
|
|
||||||||||
Private banking
|
13
|
|
13
|
|
—
|
|
13
|
|
—
|
|
|||||
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total without a related allowance recorded
|
13
|
|
13
|
|
—
|
|
13
|
|
—
|
|
|||||
Total:
|
|
|
|
|
|
||||||||||
Private banking
|
184
|
|
206
|
|
171
|
|
184
|
|
—
|
|
|||||
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total
|
$
|
184
|
|
$
|
206
|
|
$
|
171
|
|
$
|
184
|
|
$
|
—
|
|
|
As of and for the Twelve Months Ended December 31, 2018
|
||||||||||||||
(Dollars in thousands)
|
Recorded Investment
|
Unpaid Principal Balance
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||
With a related allowance recorded:
|
|
|
|
|
|
||||||||||
Private banking
|
$
|
2,237
|
|
$
|
2,421
|
|
$
|
437
|
|
$
|
2,293
|
|
$
|
—
|
|
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total with a related allowance recorded
|
2,237
|
|
2,421
|
|
437
|
|
2,293
|
|
—
|
|
|||||
Without a related allowance recorded:
|
|
|
|
|
|
||||||||||
Private banking
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total without a related allowance recorded
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total:
|
|
|
|
|
|
||||||||||
Private banking
|
2,237
|
|
2,421
|
|
437
|
|
2,293
|
|
—
|
|
|||||
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total
|
$
|
2,237
|
|
$
|
2,421
|
|
$
|
437
|
|
$
|
2,293
|
|
$
|
—
|
|
|
September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Allowance for loan and lease losses:
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
171
|
|
$
|
—
|
|
$
|
—
|
|
$
|
171
|
|
Collectively evaluated for impairment
|
1,680
|
|
5,316
|
|
6,207
|
|
13,203
|
|
||||
Total allowance for loan and lease losses
|
$
|
1,851
|
|
$
|
5,316
|
|
$
|
6,207
|
|
$
|
13,374
|
|
Loans and leases held-for-investment:
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
184
|
|
$
|
—
|
|
$
|
—
|
|
$
|
184
|
|
Collectively evaluated for impairment
|
3,367,958
|
|
992,508
|
|
1,656,030
|
|
6,016,496
|
|
||||
Loans and leases held-for-investment
|
$
|
3,368,142
|
|
$
|
992,508
|
|
$
|
1,656,030
|
|
$
|
6,016,680
|
|
|
December 31, 2018
|
|||||||||||
(Dollars in thousands)
|
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total
|
||||||||
Allowance for loan and lease losses:
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
437
|
|
$
|
—
|
|
$
|
—
|
|
$
|
437
|
|
Collectively evaluated for impairment
|
1,505
|
|
5,764
|
|
5,502
|
|
12,771
|
|
||||
Total allowance for loan and lease losses
|
$
|
1,942
|
|
$
|
5,764
|
|
$
|
5,502
|
|
$
|
13,208
|
|
Loans and leases held-for-investment:
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
2,237
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,237
|
|
Collectively evaluated for impairment
|
2,867,306
|
|
785,320
|
|
1,478,010
|
|
5,130,636
|
|
||||
Loans and leases held-for-investment
|
$
|
2,869,543
|
|
$
|
785,320
|
|
$
|
1,478,010
|
|
$
|
5,132,873
|
|
(Dollars in thousands)
|
September 30,
2019 |
December 31,
2018 |
||||
Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring:
|
|
|
||||
Performing loans accruing interest
|
$
|
—
|
|
$
|
—
|
|
Non-accrual loans
|
171
|
|
237
|
|
||
Total troubled debt restructurings
|
$
|
171
|
|
$
|
237
|
|
(Dollars in thousands)
|
Amount
|
||
September 30,
|
|
||
2020
|
$
|
2,594
|
|
2021
|
2,637
|
|
|
2022
|
2,621
|
|
|
2023
|
2,151
|
|
|
2024
|
2,046
|
|
|
Thereafter
|
20,709
|
|
|
Total undiscounted lease payments
|
$
|
32,758
|
|
Imputed interest
|
(8,721
|
)
|
|
Operating lease liability
|
$
|
24,037
|
|
|
Interest Rate
Range |
|
Weighted Average
Interest Rate |
|
Balance
|
||||||
(Dollars in thousands)
|
September 30,
2019 |
|
September 30,
2019 |
December 31,
2018 |
|
September 30,
2019 |
December 31,
2018 |
||||
Demand and savings accounts:
|
|
|
|
|
|
|
|
||||
Noninterest-bearing checking accounts
|
—
|
|
—
|
—
|
|
$
|
312,285
|
|
$
|
258,268
|
|
Interest-bearing checking accounts
|
0.05 to 3.15%
|
|
1.83%
|
2.29%
|
|
1,333,189
|
|
778,131
|
|
||
Money market deposit accounts
|
0.10 to 3.25%
|
|
2.10%
|
2.45%
|
|
3,149,346
|
|
2,781,870
|
|
||
Total demand and savings accounts
|
|
|
|
|
|
4,794,820
|
|
3,818,269
|
|
||
Certificates of deposit
|
1.29 to 3.25%
|
|
2.50%
|
2.39%
|
|
1,299,785
|
|
1,232,192
|
|
||
Total deposits
|
|
|
|
|
|
$
|
6,094,605
|
|
$
|
5,050,461
|
|
Weighted average rate on interest-bearing accounts
|
|
|
2.13%
|
2.41%
|
|
|
|
(Dollars in thousands)
|
September 30,
2019 |
December 31,
2018 |
||||
12 months or less
|
$
|
1,082,409
|
|
$
|
992,468
|
|
12 months to 24 months
|
176,331
|
|
181,456
|
|
||
24 months to 36 months
|
41,045
|
|
58,268
|
|
||
Total
|
$
|
1,299,785
|
|
$
|
1,232,192
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Interest-bearing checking accounts
|
$
|
5,795
|
|
$
|
3,267
|
|
|
$
|
15,303
|
|
$
|
7,464
|
|
Money market deposit accounts
|
18,870
|
|
12,428
|
|
|
53,608
|
|
30,263
|
|
||||
Certificates of deposit
|
9,449
|
|
6,487
|
|
|
26,691
|
|
14,552
|
|
||||
Total interest expense on deposits
|
$
|
34,114
|
|
$
|
22,182
|
|
|
$
|
95,602
|
|
$
|
52,279
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(Dollars in thousands)
|
Interest Rate
|
Ending Balance
|
Maturity Date
|
|
Interest Rate
|
Ending Balance
|
Maturity Date
|
||||
FHLB borrowings:
|
|
|
|
|
|
|
|
||||
FHLB line of credit
|
2.08%
|
$
|
130,000
|
|
5/1/2020
|
|
2.62%
|
$
|
250,000
|
|
5/1/2019
|
Issued 9/3/2019
|
2.26%
|
150,000
|
|
12/2/2019
|
|
|
—
|
|
|
||
Issued 7/8/2019
|
2.50%
|
50,000
|
|
10/8/2019
|
|
|
—
|
|
|
||
Issued 12/31/2018
|
|
—
|
|
|
|
2.65%
|
65,000
|
|
1/2/2019
|
||
Issued 10/10/2018
|
|
—
|
|
|
|
2.54%
|
50,000
|
|
1/8/2019
|
||
Line of credit borrowings
|
|
—
|
|
|
|
5.47%
|
4,250
|
|
9/28/2019
|
||
Subordinated notes payable (net of debt issuance costs of $0 and $84)
|
|
—
|
|
|
|
5.75%
|
34,916
|
|
7/1/2019
|
||
Total borrowings, net
|
|
$
|
330,000
|
|
|
|
|
$
|
404,166
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
FHLB borrowings
|
$
|
1,302
|
|
$
|
853
|
|
|
$
|
6,222
|
|
$
|
3,743
|
|
Line of credit borrowings
|
—
|
|
16
|
|
|
68
|
|
69
|
|
||||
Subordinated notes payable
|
—
|
|
554
|
|
|
1,090
|
|
1,661
|
|
||||
Total interest expense on borrowings
|
$
|
1,302
|
|
$
|
1,423
|
|
|
$
|
7,380
|
|
$
|
5,473
|
|
|
Number of
Preferred Shares Outstanding |
Number of
Common Shares Outstanding |
||
Balance, December 31, 2017
|
—
|
|
28,591,101
|
|
Issuance of preferred stock
|
40,250
|
|
—
|
|
Issuance of restricted common stock
|
—
|
|
396,113
|
|
Forfeitures of restricted common stock
|
—
|
|
(24,000
|
)
|
Exercise of stock options
|
—
|
|
127,700
|
|
Purchase of treasury stock
|
—
|
|
(169,936
|
)
|
Balance, September 30, 2018
|
40,250
|
|
28,920,978
|
|
|
|
|
||
Balance, December 31, 2018
|
40,250
|
|
28,878,674
|
|
Issuance of preferred stock
|
80,500
|
|
—
|
|
Issuance of restricted common stock
|
—
|
|
550,453
|
|
Forfeitures of restricted common stock
|
—
|
|
(74,355
|
)
|
Exercise of stock options
|
—
|
|
40,580
|
|
Purchase of treasury stock
|
—
|
|
(98,382
|
)
|
Balance, September 30, 2019
|
120,750
|
|
29,296,970
|
|
|
September 30, 2019
|
||||||||||||||||
|
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
|
$
|
552,734
|
|
12.40
|
%
|
|
$
|
356,596
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
505,370
|
|
11.38
|
%
|
|
$
|
355,135
|
|
8.00
|
%
|
|
$
|
443,919
|
|
10.00
|
%
|
Tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
541,505
|
|
12.15
|
%
|
|
$
|
267,447
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
491,401
|
|
11.07
|
%
|
|
$
|
266,352
|
|
6.00
|
%
|
|
$
|
355,135
|
|
8.00
|
%
|
Common equity tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
427,084
|
|
9.58
|
%
|
|
$
|
200,585
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
491,401
|
|
11.07
|
%
|
|
$
|
199,764
|
|
4.50
|
%
|
|
$
|
288,547
|
|
6.50
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
541,505
|
|
7.91
|
%
|
|
$
|
273,931
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
491,401
|
|
7.20
|
%
|
|
$
|
273,036
|
|
4.00
|
%
|
|
$
|
341,295
|
|
5.00
|
%
|
|
December 31, 2018
|
||||||||||||||||
|
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
|
$
|
426,066
|
|
10.86
|
%
|
|
$
|
313,789
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
437,849
|
|
11.25
|
%
|
|
$
|
311,497
|
|
8.00
|
%
|
|
$
|
389,371
|
|
10.00
|
%
|
Tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
414,808
|
|
10.58
|
%
|
|
$
|
235,342
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
424,418
|
|
10.90
|
%
|
|
$
|
233,622
|
|
6.00
|
%
|
|
$
|
311,497
|
|
8.00
|
%
|
Common equity tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
378,117
|
|
9.64
|
%
|
|
$
|
176,506
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
424,418
|
|
10.90
|
%
|
|
$
|
175,217
|
|
4.50
|
%
|
|
$
|
253,091
|
|
6.50
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
414,808
|
|
7.28
|
%
|
|
$
|
227,851
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
424,418
|
|
7.49
|
%
|
|
$
|
226,762
|
|
4.00
|
%
|
|
$
|
283,453
|
|
5.00
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands, except per share data)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
|
|
|
|
|
|
||||||||
Net income available to common shareholders
|
$
|
14,372
|
|
$
|
13,632
|
|
|
$
|
41,798
|
|
$
|
37,863
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
||||||||
Basic
|
27,863,767
|
|
27,588,607
|
|
|
27,861,515
|
|
27,603,784
|
|
||||
Restricted stock - dilutive
|
600,985
|
|
863,084
|
|
|
569,260
|
|
757,572
|
|
||||
Stock options - dilutive
|
313,919
|
|
498,233
|
|
|
328,633
|
|
488,570
|
|
||||
Diluted
|
28,778,671
|
|
28,949,924
|
|
|
28,759,408
|
|
28,849,926
|
|
||||
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.52
|
|
$
|
0.49
|
|
|
$
|
1.50
|
|
$
|
1.37
|
|
Diluted
|
$
|
0.50
|
|
$
|
0.47
|
|
|
$
|
1.45
|
|
$
|
1.31
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||
Anti-dilutive shares (1)
|
9,000
|
|
4,000
|
|
|
13,000
|
|
7,000
|
|
(1)
|
Includes stock options and/or restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive.
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||
|
as of September 30, 2019
|
|
as of September 30, 2019
|
||||||
(Dollars in thousands)
|
Balance Sheet Location
|
Fair Value
|
|
Balance Sheet Location
|
Fair Value
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
Interest rate products
|
Other assets
|
$
|
—
|
|
|
Other liabilities
|
$
|
3,191
|
|
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
Interest rate products
|
Other assets
|
73,030
|
|
|
Other liabilities
|
73,100
|
|
||
Equity products
|
Other assets
|
—
|
|
|
Other liabilities
|
109
|
|
||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Total
|
Other assets
|
$
|
73,030
|
|
|
Other liabilities
|
$
|
76,400
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||
|
as of December 31, 2018
|
|
as of December 31, 2018
|
||||||
(Dollars in thousands)
|
Balance Sheet Location
|
Fair Value
|
|
Balance Sheet Location
|
Fair Value
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
Interest rate products
|
Other assets
|
$
|
1,384
|
|
|
Other liabilities
|
$
|
—
|
|
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
Interest rate products
|
Other assets
|
25,523
|
|
|
Other liabilities
|
25,518
|
|
||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Total
|
Other assets
|
$
|
26,907
|
|
|
Other liabilities
|
$
|
25,518
|
|
|
Offsetting of Derivative Liabilities
|
||||||||||||||||||||||
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amounts of Liabilities
presented in the Statement of Financial Position |
|
Gross Amounts Not Offset in the Statement of Financial Position
|
|
Net Amount
|
||||||||||||||
|
|
|
|
|
|||||||||||||||||||
(Dollars in thousands)
|
|
|
|
Financial Instruments
|
|
Cash Collateral Posted
|
|
||||||||||||||||
September 30, 2019
|
$
|
76,400
|
|
|
$
|
—
|
|
|
$
|
76,400
|
|
|
$
|
(248
|
)
|
|
$
|
(75,789
|
)
|
|
$
|
363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
$
|
25,518
|
|
|
$
|
—
|
|
|
$
|
25,518
|
|
|
$
|
(9,587
|
)
|
|
$
|
(3,941
|
)
|
|
$
|
11,990
|
|
(Dollars in thousands)
|
Notional
Amount |
Effective
Rate (1) |
Estimated Increase/
(Decrease) to Interest Expense in the Next Twelve Months |
Maturity
Date |
Remaining Term
(in Months) |
||||
Interest rate products:
|
|
|
|
|
|
||||
Issued 1/8/2018
|
$
|
50,000
|
|
2.21%
|
$
|
207
|
|
1/8/2021
|
15
|
Issued 5/30/2019
|
50,000
|
|
2.05%
|
125
|
|
6/1/2022
|
32
|
||
Issued 5/30/2019
|
50,000
|
|
2.03%
|
118
|
|
6/1/2023
|
44
|
||
Issued 5/30/2019
|
50,000
|
|
2.04%
|
123
|
|
6/1/2024
|
56
|
||
Total
|
$
|
200,000
|
|
|
$
|
573
|
|
|
|
(1)
|
The effective rate is adjusted for the difference between the three-month FHLB advance rate and three-month LIBOR.
|
|
|
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
|
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Derivatives designated as hedging instruments:
|
Location of Gain (Loss) Recognized in Income on Derivatives
|
|
Realized Gain (Loss) Recognized in Income on Derivatives
|
|
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
|
||||||||||
Interest rate products
|
Interest expense
|
|
$
|
156
|
|
$
|
412
|
|
|
$
|
(967
|
)
|
$
|
157
|
|
|
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
|
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Derivatives designated as hedging instruments:
|
Location of Gain (Loss) Recognized in Income on Derivatives
|
|
Realized Gain (Loss) Recognized in Income on Derivatives
|
|
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
|
||||||||||
Interest rate products
|
Interest expense
|
|
$
|
1,277
|
|
$
|
952
|
|
|
$
|
(3,293
|
)
|
$
|
1,439
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
|
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Derivatives not designated as hedging instruments:
|
Location of Gain (Loss) Recognized in Income on Derivatives
|
|
Amount of Gain (Loss) Recognized in Income on Derivatives
|
|
Amount of Gain (Loss) Recognized in Income on Derivatives
|
||||||||||
Interest rate products
|
Non-interest income
|
|
$
|
(17
|
)
|
$
|
—
|
|
|
$
|
(59
|
)
|
$
|
22
|
|
Equity products
|
Non-interest income
|
|
(32
|
)
|
—
|
|
|
(109
|
)
|
—
|
|
||||
Total
|
|
|
$
|
(49
|
)
|
$
|
—
|
|
|
$
|
(168
|
)
|
$
|
22
|
|
•
|
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.
|
|
September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total Assets /
Liabilities at Fair Value |
||||||||
Financial assets:
|
|
|
|
|
||||||||
Debt securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
—
|
|
$
|
185,965
|
|
$
|
—
|
|
$
|
185,965
|
|
Trust preferred securities
|
—
|
|
17,354
|
|
—
|
|
17,354
|
|
||||
Agency collateralized mortgage obligations
|
—
|
|
28,866
|
|
—
|
|
28,866
|
|
||||
Agency mortgage-backed securities
|
—
|
|
18,895
|
|
—
|
|
18,895
|
|
||||
Agency debentures
|
—
|
|
10,100
|
|
—
|
|
10,100
|
|
||||
Equity securities
|
4,807
|
|
—
|
|
—
|
|
4,807
|
|
||||
Interest rate swaps
|
—
|
|
73,030
|
|
—
|
|
73,030
|
|
||||
Total financial assets
|
4,807
|
|
334,210
|
|
—
|
|
339,017
|
|
||||
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
76,291
|
|
—
|
|
76,291
|
|
||||
Equity swaps
|
109
|
|
—
|
|
—
|
|
109
|
|
||||
Total financial liabilities
|
$
|
109
|
|
$
|
76,291
|
|
$
|
—
|
|
$
|
76,400
|
|
|
December 31, 2018
|
|||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total Assets /
Liabilities at Fair Value |
||||||||
Financial assets:
|
|
|
|
|
||||||||
Debt securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
—
|
|
$
|
151,063
|
|
$
|
—
|
|
$
|
151,063
|
|
Trust preferred securities
|
—
|
|
16,849
|
|
—
|
|
16,849
|
|
||||
Non-agency collateralized loan obligations
|
—
|
|
390
|
|
—
|
|
390
|
|
||||
Agency collateralized mortgage obligations
|
—
|
|
33,718
|
|
—
|
|
33,718
|
|
||||
Agency mortgage-backed securities
|
—
|
|
21,264
|
|
—
|
|
21,264
|
|
||||
Agency debentures
|
—
|
|
10,012
|
|
—
|
|
10,012
|
|
||||
Equity securities
|
12,661
|
|
—
|
|
—
|
|
12,661
|
|
||||
Interest rate swaps
|
—
|
|
26,907
|
|
—
|
|
26,907
|
|
||||
Total financial assets
|
12,661
|
|
260,203
|
|
—
|
|
272,864
|
|
||||
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
25,518
|
|
—
|
|
25,518
|
|
||||
Acquisition earn out liability
|
—
|
|
—
|
|
2,920
|
|
2,920
|
|
||||
Total financial liabilities
|
$
|
—
|
|
$
|
25,518
|
|
$
|
2,920
|
|
$
|
28,438
|
|
|
September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total Assets
at Fair Value |
||||||||
Loans measured for impairment, net
|
$
|
—
|
|
$
|
—
|
|
$
|
13
|
|
$
|
13
|
|
Other real estate owned
|
—
|
|
—
|
|
4,250
|
|
4,250
|
|
||||
Total assets
|
$
|
—
|
|
$
|
—
|
|
$
|
4,263
|
|
$
|
4,263
|
|
|
December 31, 2018
|
|||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total Assets
at Fair Value |
||||||||
Loans measured for impairment, net
|
$
|
—
|
|
$
|
—
|
|
$
|
1,800
|
|
$
|
1,800
|
|
Other real estate owned
|
—
|
|
—
|
|
3,424
|
|
3,424
|
|
||||
Total assets
|
$
|
—
|
|
$
|
—
|
|
$
|
5,224
|
|
$
|
5,224
|
|
|
September 30, 2019
|
||||||||
(Dollars in thousands)
|
Fair Value
|
|
Valuation Techniques (1)
|
|
Significant Unobservable Inputs
|
|
Weighted Average Discount Rate
|
||
Loans measured for impairment, net
|
$
|
13
|
|
|
Collateral
|
|
Appraisal value and discount due to salability conditions
|
|
—%
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
$
|
4,250
|
|
|
Collateral
|
|
Appraisal value and discount due to salability conditions
|
|
18%
|
(1)
|
Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.
|
|
December 31, 2018
|
||||||||
(Dollars in thousands)
|
Fair Value
|
|
Valuation Techniques (1)
|
|
Significant Unobservable Inputs
|
|
Weighted Average Multiple/
Discount Rate |
||
Acquisition earn out liability
|
$
|
2,920
|
|
|
Income approach
|
|
Run-rate revenue multiple; client retention
|
|
1.6 times
|
|
|
|
|
|
|
|
|
||
Loans measured for impairment, net
|
$
|
1,800
|
|
|
Collateral
|
|
Appraisal value and discount due to salability conditions
|
|
16%
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
$
|
3,424
|
|
|
Collateral
|
|
Appraisal value and 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 of ongoing operations if the loan is not collateral dependent.
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
(Dollars in thousands)
|
Fair Value
Level |
|
Carrying
Amount |
Estimated
Fair Value |
|
Carrying
Amount |
Estimated
Fair Value |
||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
1
|
|
$
|
383,948
|
|
$
|
383,948
|
|
|
$
|
189,985
|
|
$
|
189,985
|
|
Debt securities available-for-sale
|
2
|
|
261,180
|
|
261,180
|
|
|
233,296
|
|
233,296
|
|
||||
Debt securities held-to-maturity
|
2
|
|
187,210
|
|
189,218
|
|
|
196,131
|
|
196,823
|
|
||||
Equity securities
|
1
|
|
4,807
|
|
4,807
|
|
|
12,661
|
|
12,661
|
|
||||
Federal Home Loan Bank stock
|
2
|
|
15,524
|
|
15,524
|
|
|
24,671
|
|
24,671
|
|
||||
Loans and leases held-for-investment, net
|
3
|
|
6,003,306
|
|
5,994,960
|
|
|
5,119,665
|
|
5,119,562
|
|
||||
Accrued interest receivable
|
2
|
|
22,157
|
|
22,157
|
|
|
20,702
|
|
20,702
|
|
||||
Investment management fees receivable, net
|
2
|
|
7,453
|
|
7,453
|
|
|
7,299
|
|
7,299
|
|
||||
Bank owned life insurance
|
2
|
|
69,607
|
|
69,607
|
|
|
68,309
|
|
68,309
|
|
||||
Other real estate owned
|
3
|
|
4,250
|
|
4,250
|
|
|
3,424
|
|
3,424
|
|
||||
Interest rate swaps
|
2
|
|
73,030
|
|
73,030
|
|
|
26,907
|
|
26,907
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
2
|
|
$
|
6,094,605
|
|
$
|
6,108,128
|
|
|
$
|
5,050,461
|
|
$
|
5,048,079
|
|
Borrowings, net
|
2
|
|
330,000
|
|
330,020
|
|
|
404,166
|
|
404,084
|
|
||||
Acquisition earn out liability
|
3
|
|
—
|
|
—
|
|
|
2,920
|
|
2,920
|
|
||||
Interest rate swaps
|
2
|
|
76,291
|
|
76,291
|
|
|
25,518
|
|
25,518
|
|
||||
Equity swaps
|
1
|
|
109
|
|
109
|
|
|
—
|
|
—
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||
(Dollars in thousands)
|
Debt Securities
|
Derivatives
|
Total
|
|
Debt Securities
|
Derivatives
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
1,230
|
|
$
|
(1,590
|
)
|
$
|
(360
|
)
|
|
$
|
(833
|
)
|
$
|
1,878
|
|
$
|
1,045
|
|
Change in unrealized holding gains (losses)
|
787
|
|
(736
|
)
|
51
|
|
|
(192
|
)
|
120
|
|
(72
|
)
|
||||||
Gains reclassified from other comprehensive income
|
(101
|
)
|
(120
|
)
|
(221
|
)
|
|
—
|
|
(316
|
)
|
(316
|
)
|
||||||
Net other comprehensive income (loss)
|
686
|
|
(856
|
)
|
(170
|
)
|
|
(192
|
)
|
(196
|
)
|
(388
|
)
|
||||||
Balance, end of period
|
$
|
1,916
|
|
$
|
(2,446
|
)
|
$
|
(530
|
)
|
|
$
|
(1,025
|
)
|
$
|
1,682
|
|
$
|
657
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||
(Dollars in thousands)
|
Debt Securities
|
Derivatives
|
Total
|
|
Debt Securities
|
Derivatives
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
(2,363
|
)
|
$
|
1,032
|
|
$
|
(1,331
|
)
|
|
$
|
172
|
|
$
|
1,074
|
|
$
|
1,246
|
|
Change in unrealized holding gains (losses)
|
4,477
|
|
(2,506
|
)
|
1,971
|
|
|
(1,517
|
)
|
1,103
|
|
(414
|
)
|
||||||
Gains reclassified from other comprehensive income
|
(198
|
)
|
(972
|
)
|
(1,170
|
)
|
|
(5
|
)
|
(730
|
)
|
(735
|
)
|
||||||
Reclassification for equity securities under ASU 2016-01
|
—
|
|
—
|
|
—
|
|
|
286
|
|
—
|
|
286
|
|
||||||
Reclassification for certain income tax effects under ASU 2018-02
|
—
|
|
—
|
|
—
|
|
|
39
|
|
235
|
|
274
|
|
||||||
Net other comprehensive income (loss)
|
4,279
|
|
(3,478
|
)
|
801
|
|
|
(1,197
|
)
|
608
|
|
(589
|
)
|
||||||
Balance, end of period
|
$
|
1,916
|
|
$
|
(2,446
|
)
|
$
|
(530
|
)
|
|
$
|
(1,025
|
)
|
$
|
1,682
|
|
$
|
657
|
|
•
|
The Bank segment provides commercial banking services to middle-market businesses and private banking services to high-net-worth individuals through the Bank subsidiary.
|
•
|
The Investment Management segment provides advisory and sub-advisory investment management services primarily to institutional investors, mutual funds and individual investors through the Chartwell subsidiary. It also supports marketing efforts for Chartwell’s proprietary investment products through the CTSC Securities subsidiary.
|
(Dollars in thousands)
|
September 30,
2019 |
December 31,
2018 |
||||||
Assets:
|
|
|||||||
Bank
|
$
|
7,113,983
|
|
$
|
5,947,165
|
|
||
Investment management
|
92,283
|
|
92,894
|
|
||||
Parent and other
|
(7,817
|
)
|
(4,404
|
)
|
||||
Total assets
|
$
|
7,198,449
|
|
$
|
6,035,655
|
|
|
Three Months Ended September 30, 2019
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
(Dollars in thousands)
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
||||||||||||||||
Income statement data:
|
|
|
|
||||||||||||||||||||||
Interest income
|
$
|
67,720
|
|
$
|
—
|
|
$
|
12
|
|
$
|
67,732
|
|
|
$
|
52,354
|
|
$
|
—
|
|
$
|
70
|
|
$
|
52,424
|
|
Interest expense
|
35,455
|
|
—
|
|
(39
|
)
|
35,416
|
|
|
23,038
|
|
—
|
|
567
|
|
23,605
|
|
||||||||
Net interest income (loss)
|
32,265
|
|
—
|
|
51
|
|
32,316
|
|
|
29,316
|
|
—
|
|
(497
|
)
|
28,819
|
|
||||||||
Provision (credit) for loan and lease losses
|
(607
|
)
|
—
|
|
—
|
|
(607
|
)
|
|
(234
|
)
|
—
|
|
—
|
|
(234
|
)
|
||||||||
Net interest income (loss) after provision for loan and lease losses
|
32,872
|
|
—
|
|
51
|
|
32,923
|
|
|
29,550
|
|
—
|
|
(497
|
)
|
29,053
|
|
||||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
—
|
|
9,016
|
|
(114
|
)
|
8,902
|
|
|
—
|
|
9,914
|
|
(86
|
)
|
9,828
|
|
||||||||
Net gain on the sale and call of debt securities
|
206
|
|
—
|
|
—
|
|
206
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Other non-interest income
|
5,113
|
|
(9
|
)
|
31
|
|
5,135
|
|
|
2,850
|
|
—
|
|
73
|
|
2,923
|
|
||||||||
Total non-interest income
|
5,319
|
|
9,007
|
|
(83
|
)
|
14,243
|
|
|
2,850
|
|
9,914
|
|
(13
|
)
|
12,751
|
|
||||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Intangible amortization expense
|
—
|
|
502
|
|
—
|
|
502
|
|
|
—
|
|
502
|
|
—
|
|
502
|
|
||||||||
Other non-interest expense
|
18,949
|
|
8,186
|
|
136
|
|
27,271
|
|
|
17,002
|
|
8,173
|
|
9
|
|
25,184
|
|
||||||||
Total non-interest expense
|
18,949
|
|
8,688
|
|
136
|
|
27,773
|
|
|
17,002
|
|
8,675
|
|
9
|
|
25,686
|
|
||||||||
Income (loss) before tax
|
19,242
|
|
319
|
|
(168
|
)
|
19,393
|
|
|
15,398
|
|
1,239
|
|
(519
|
)
|
16,118
|
|
||||||||
Income tax expense (benefit)
|
3,142
|
|
3
|
|
(86
|
)
|
3,059
|
|
|
1,676
|
|
282
|
|
(151
|
)
|
1,807
|
|
||||||||
Net income (loss)
|
$
|
16,100
|
|
$
|
316
|
|
$
|
(82
|
)
|
$
|
16,334
|
|
|
$
|
13,722
|
|
$
|
957
|
|
$
|
(368
|
)
|
$
|
14,311
|
|
|
Nine Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
(Dollars in thousands)
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
|
Bank
|
Investment
Management |
Parent
and Other |
Consolidated
|
||||||||||||||||
Income statement data:
|
|
|
|
||||||||||||||||||||||
Interest income
|
$
|
196,862
|
|
$
|
—
|
|
$
|
111
|
|
$
|
196,973
|
|
|
$
|
141,424
|
|
$
|
—
|
|
$
|
200
|
|
$
|
141,624
|
|
Interest expense
|
101,891
|
|
—
|
|
1,091
|
|
102,982
|
|
|
56,027
|
|
—
|
|
1,725
|
|
57,752
|
|
||||||||
Net interest income (loss)
|
94,971
|
|
—
|
|
(980
|
)
|
93,991
|
|
|
85,397
|
|
—
|
|
(1,525
|
)
|
83,872
|
|
||||||||
Provision (credit) for loan and lease losses
|
(1,696
|
)
|
—
|
|
—
|
|
(1,696
|
)
|
|
376
|
|
—
|
|
—
|
|
376
|
|
||||||||
Net interest income (loss) after provision for loan and lease losses
|
96,667
|
|
—
|
|
(980
|
)
|
95,687
|
|
|
85,021
|
|
—
|
|
(1,525
|
)
|
83,496
|
|
||||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
—
|
|
27,912
|
|
(332
|
)
|
27,580
|
|
|
—
|
|
28,621
|
|
(199
|
)
|
28,422
|
|
||||||||
Net gain on the sale and call of debt securities
|
346
|
|
—
|
|
—
|
|
346
|
|
|
6
|
|
—
|
|
—
|
|
6
|
|
||||||||
Other non-interest income
|
10,467
|
|
17
|
|
881
|
|
11,365
|
|
|
7,875
|
|
1
|
|
38
|
|
7,914
|
|
||||||||
Total non-interest income
|
10,813
|
|
27,929
|
|
549
|
|
39,291
|
|
|
7,881
|
|
28,622
|
|
(161
|
)
|
36,342
|
|
||||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Intangible amortization expense
|
—
|
|
1,506
|
|
—
|
|
1,506
|
|
|
—
|
|
1,465
|
|
—
|
|
1,465
|
|
||||||||
Other non-interest expense
|
56,872
|
|
23,174
|
|
478
|
|
80,524
|
|
|
49,011
|
|
23,988
|
|
390
|
|
73,389
|
|
||||||||
Total non-interest expense
|
56,872
|
|
24,680
|
|
478
|
|
82,030
|
|
|
49,011
|
|
25,453
|
|
390
|
|
74,854
|
|
||||||||
Income (loss) before tax
|
50,608
|
|
3,249
|
|
(909
|
)
|
52,948
|
|
|
43,891
|
|
3,169
|
|
(2,076
|
)
|
44,984
|
|
||||||||
Income tax expense (benefit)
|
6,825
|
|
830
|
|
(296
|
)
|
7,359
|
|
|
5,485
|
|
786
|
|
(591
|
)
|
5,680
|
|
||||||||
Net income (loss)
|
$
|
43,783
|
|
$
|
2,419
|
|
$
|
(613
|
)
|
$
|
45,589
|
|
|
$
|
38,406
|
|
$
|
2,383
|
|
$
|
(1,485
|
)
|
$
|
39,304
|
|
(Dollars in thousands, except per share data)
|
September 30,
2019 |
December 31,
2018 |
||||
Tangible common equity and tangible book value per common share:
|
|
|
||||
Common shareholders’ equity
|
$
|
488,443
|
|
$
|
440,886
|
|
Less: goodwill and intangible assets
|
66,357
|
|
67,863
|
|
||
Tangible common equity (numerator)
|
$
|
422,086
|
|
$
|
373,023
|
|
Common shares outstanding (denominator)
|
29,296,970
|
|
28,878,674
|
|
||
Tangible book value per common share
|
$
|
14.41
|
|
$
|
12.92
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Total revenue and Pre-tax, pre-provision net revenue:
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
32,316
|
|
$
|
28,819
|
|
|
$
|
93,991
|
|
$
|
83,872
|
|
Total non-interest income
|
14,243
|
|
12,751
|
|
|
39,291
|
|
36,342
|
|
||||
Less: net gain on the sale and call of debt securities
|
206
|
|
—
|
|
|
346
|
|
6
|
|
||||
Total revenue
|
$
|
46,353
|
|
$
|
41,570
|
|
|
$
|
132,936
|
|
$
|
120,208
|
|
Less: total non-interest expense
|
27,773
|
|
25,686
|
|
|
82,030
|
|
74,854
|
|
||||
Pre-tax, pre-provision net revenue
|
$
|
18,580
|
|
$
|
15,884
|
|
|
$
|
50,906
|
|
$
|
45,354
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Bank total revenue:
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
32,265
|
|
$
|
29,316
|
|
|
$
|
94,971
|
|
$
|
85,397
|
|
Total non-interest income
|
5,319
|
|
2,850
|
|
|
10,813
|
|
7,881
|
|
||||
Less: net gain on the sale and call of debt securities
|
206
|
|
—
|
|
|
346
|
|
6
|
|
||||
Bank total revenue
|
$
|
37,378
|
|
$
|
32,166
|
|
|
$
|
105,438
|
|
$
|
93,272
|
|
|
|
|
|
|
|
||||||||
Bank efficiency ratio:
|
|
|
|
|
|
||||||||
Total non-interest expense (numerator)
|
$
|
18,949
|
|
$
|
17,002
|
|
|
$
|
56,872
|
|
$
|
49,011
|
|
Total revenue (denominator)
|
$
|
37,378
|
|
$
|
32,166
|
|
|
$
|
105,438
|
|
$
|
93,272
|
|
Bank efficiency ratio
|
50.70
|
%
|
52.86
|
%
|
|
53.94
|
%
|
52.55
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Investment Management EBITDA:
|
|
|
|
|
|
||||||||
Net income
|
$
|
316
|
|
$
|
957
|
|
|
$
|
2,419
|
|
$
|
2,383
|
|
Interest expense
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Income tax expense
|
3
|
|
282
|
|
|
830
|
|
786
|
|
||||
Depreciation expense
|
111
|
|
126
|
|
|
355
|
|
376
|
|
||||
Intangible amortization expense
|
502
|
|
502
|
|
|
1,506
|
|
1,465
|
|
||||
EBITDA
|
$
|
932
|
|
$
|
1,867
|
|
|
$
|
5,110
|
|
$
|
5,010
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Interest income
|
$
|
67,732
|
|
$
|
52,424
|
|
|
$
|
196,973
|
|
$
|
141,624
|
|
Fully taxable equivalent adjustment
|
24
|
|
27
|
|
|
79
|
|
84
|
|
||||
Interest income adjusted
|
67,756
|
|
52,451
|
|
|
197,052
|
|
141,708
|
|
||||
Less: interest expense
|
35,416
|
|
23,605
|
|
|
102,982
|
|
57,752
|
|
||||
Net interest income adjusted
|
$
|
32,340
|
|
$
|
28,846
|
|
|
$
|
94,070
|
|
$
|
83,956
|
|
|
|
|
|
|
|
||||||||
Yield on earning assets (1) (2)
|
4.06
|
%
|
4.04
|
%
|
|
4.23
|
%
|
3.91
|
%
|
||||
Cost of interest-bearing liabilities (1)
|
2.38
|
%
|
2.05
|
%
|
|
2.47
|
%
|
1.79
|
%
|
||||
Net interest spread (1) (2)
|
1.68
|
%
|
1.99
|
%
|
|
1.76
|
%
|
2.12
|
%
|
||||
Net interest margin (1) (2)
|
1.94
|
%
|
2.22
|
%
|
|
2.02
|
%
|
2.31
|
%
|
(1)
|
Annualized.
|
(2)
|
Calculated on a fully taxable equivalent basis.
|
|
Three Months Ended September 30,
|
||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest Income (1)/
Expense |
Average
Yield/ Rate (2) |
|
Average
Balance |
Interest Income (1)/
Expense |
Average
Yield/ Rate (2) |
||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||||
Interest-earning deposits
|
$
|
388,274
|
|
$
|
2,144
|
|
2.19
|
%
|
|
$
|
207,346
|
|
$
|
1,015
|
|
1.94
|
%
|
Federal funds sold
|
8,424
|
|
44
|
|
2.07
|
%
|
|
9,563
|
|
46
|
|
1.91
|
%
|
||||
Debt securities available-for-sale
|
262,665
|
|
2,085
|
|
3.15
|
%
|
|
236,053
|
|
1,836
|
|
3.09
|
%
|
||||
Debt securities held-to-maturity
|
174,331
|
|
1,537
|
|
3.50
|
%
|
|
76,341
|
|
699
|
|
3.63
|
%
|
||||
Equity securities
|
4,720
|
|
12
|
|
1.01
|
%
|
|
11,219
|
|
71
|
|
2.51
|
%
|
||||
FHLB stock
|
10,585
|
|
382
|
|
14.32
|
%
|
|
11,342
|
|
314
|
|
10.98
|
%
|
||||
Total loans and leases
|
5,776,652
|
|
61,552
|
|
4.23
|
%
|
|
4,594,755
|
|
48,470
|
|
4.19
|
%
|
||||
Total interest-earning assets
|
6,625,651
|
|
67,756
|
|
4.06
|
%
|
|
5,146,619
|
|
52,451
|
|
4.04
|
%
|
||||
Other assets
|
288,216
|
|
|
|
|
223,996
|
|
|
|
||||||||
Total assets
|
$
|
6,913,867
|
|
|
|
|
$
|
5,370,615
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing checking accounts
|
$
|
1,116,624
|
|
$
|
5,795
|
|
2.06
|
%
|
|
$
|
657,402
|
|
$
|
3,267
|
|
1.97
|
%
|
Money market deposit accounts
|
3,106,186
|
|
18,870
|
|
2.41
|
%
|
|
2,506,334
|
|
12,428
|
|
1.97
|
%
|
||||
Certificates of deposit
|
1,462,521
|
|
9,449
|
|
2.56
|
%
|
|
1,155,888
|
|
6,487
|
|
2.23
|
%
|
||||
Borrowings:
|
|
|
|
|
|
|
|
||||||||||
FHLB borrowings
|
224,130
|
|
1,302
|
|
2.30
|
%
|
|
221,576
|
|
853
|
|
1.53
|
%
|
||||
Line of credit borrowings
|
—
|
|
—
|
|
—
|
%
|
|
1,277
|
|
16
|
|
4.97
|
%
|
||||
Subordinated notes payable, net
|
—
|
|
—
|
|
—
|
%
|
|
34,832
|
|
554
|
|
6.31
|
%
|
||||
Total interest-bearing liabilities
|
5,909,461
|
|
35,416
|
|
2.38
|
%
|
|
4,577,309
|
|
23,605
|
|
2.05
|
%
|
||||
Noninterest-bearing deposits
|
268,013
|
|
|
|
|
253,033
|
|
|
|
||||||||
Other liabilities
|
137,934
|
|
|
|
|
78,802
|
|
|
|
||||||||
Shareholders’ equity
|
598,459
|
|
|
|
|
461,471
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
6,913,867
|
|
|
|
|
$
|
5,370,615
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Net interest income (1)
|
|
$
|
32,340
|
|
|
|
|
$
|
28,846
|
|
|
||||||
Net interest spread (1)
|
|
|
1.68
|
%
|
|
|
|
1.99
|
%
|
||||||||
Net interest margin (1)
|
|
|
1.94
|
%
|
|
|
|
2.22
|
%
|
(1)
|
Calculated on a fully taxable equivalent basis.
|
(2)
|
Annualized.
|
|
Three Months Ended September 30,
|
||||||||||
|
2019 over 2018
|
||||||||||
(Dollars in thousands)
|
Yield/Rate
|
|
Volume
|
|
Change(1)
|
||||||
Increase (decrease) in:
|
|
|
|
|
|
||||||
Interest income:
|
|
|
|
|
|
||||||
Interest-earning deposits
|
$
|
144
|
|
|
$
|
985
|
|
|
$
|
1,129
|
|
Federal funds sold
|
4
|
|
|
(6
|
)
|
|
(2
|
)
|
|||
Debt securities available-for-sale
|
38
|
|
|
211
|
|
|
249
|
|
|||
Debt securities held-to-maturity
|
(27
|
)
|
|
865
|
|
|
838
|
|
|||
Equity securities
|
(30
|
)
|
|
(29
|
)
|
|
(59
|
)
|
|||
FHLB stock
|
90
|
|
|
(22
|
)
|
|
68
|
|
|||
Total loans
|
493
|
|
|
12,589
|
|
|
13,082
|
|
|||
Total increase in interest income
|
712
|
|
|
14,593
|
|
|
15,305
|
|
|||
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
||||||
Interest-bearing deposits:
|
|
|
|
|
|
||||||
Interest-bearing checking accounts
|
151
|
|
|
2,377
|
|
|
2,528
|
|
|||
Money market deposit accounts
|
3,122
|
|
|
3,320
|
|
|
6,442
|
|
|||
Certificates of deposit
|
1,075
|
|
|
1,887
|
|
|
2,962
|
|
|||
Borrowings:
|
|
|
|
|
|
||||||
FHLB borrowings
|
439
|
|
|
10
|
|
|
449
|
|
|||
Line of credit borrowings
|
—
|
|
|
(16
|
)
|
|
(16
|
)
|
|||
Subordinated notes payable, net
|
—
|
|
|
(554
|
)
|
|
(554
|
)
|
|||
Total increase in interest expense
|
4,787
|
|
|
7,024
|
|
|
11,811
|
|
|||
Total increase (decrease) in net interest income
|
$
|
(4,075
|
)
|
|
$
|
7,569
|
|
|
$
|
3,494
|
|
(1)
|
The change in interest income and interest expense due to changes in both composition and applicable yields/rates has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest Income (1)/
Expense |
Average
Yield/ Rate (2) |
|
Average
Balance |
Interest Income (1)/
Expense |
Average
Yield/ Rate (2) |
||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||||
Interest-earning deposits
|
$
|
282,828
|
|
$
|
4,942
|
|
2.34
|
%
|
|
$
|
181,368
|
|
$
|
2,436
|
|
1.80
|
%
|
Federal funds sold
|
9,412
|
|
142
|
|
2.02
|
%
|
|
7,761
|
|
100
|
|
1.72
|
%
|
||||
Debt securities available-for-sale
|
249,490
|
|
6,125
|
|
3.28
|
%
|
|
187,041
|
|
4,150
|
|
2.97
|
%
|
||||
Debt securities held-to-maturity
|
189,083
|
|
5,267
|
|
3.72
|
%
|
|
69,217
|
|
1,973
|
|
3.81
|
%
|
||||
Equity securities
|
8,363
|
|
112
|
|
1.79
|
%
|
|
9,498
|
|
200
|
|
2.82
|
%
|
||||
FHLB stock
|
17,069
|
|
1,072
|
|
8.40
|
%
|
|
14,856
|
|
738
|
|
6.64
|
%
|
||||
Total loans and leases
|
5,474,522
|
|
179,392
|
|
4.38
|
%
|
|
4,381,057
|
|
132,111
|
|
4.03
|
%
|
||||
Total interest-earning assets
|
6,230,767
|
|
197,052
|
|
4.23
|
%
|
|
4,850,798
|
|
141,708
|
|
3.91
|
%
|
||||
Other assets
|
266,059
|
|
|
|
|
215,388
|
|
|
|
||||||||
Total assets
|
$
|
6,496,826
|
|
|
|
|
$
|
5,066,186
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing checking accounts
|
$
|
927,198
|
|
$
|
15,303
|
|
2.21
|
%
|
|
$
|
576,032
|
|
$
|
7,464
|
|
1.73
|
%
|
Money market deposit accounts
|
2,883,009
|
|
53,608
|
|
2.49
|
%
|
|
2,369,910
|
|
30,263
|
|
1.71
|
%
|
||||
Certificates of deposit
|
1,375,324
|
|
26,691
|
|
2.59
|
%
|
|
1,021,248
|
|
14,552
|
|
1.91
|
%
|
||||
Borrowings:
|
|
|
|
|
|
|
|
||||||||||
FHLB borrowings
|
370,550
|
|
6,222
|
|
2.24
|
%
|
|
316,264
|
|
3,743
|
|
1.58
|
%
|
||||
Line of credit borrowings
|
1,650
|
|
68
|
|
5.51
|
%
|
|
2,202
|
|
69
|
|
4.19
|
%
|
||||
Subordinated notes payable, net
|
23,178
|
|
1,090
|
|
6.29
|
%
|
|
34,781
|
|
1,661
|
|
6.38
|
%
|
||||
Total interest-bearing liabilities
|
5,580,909
|
|
102,982
|
|
2.47
|
%
|
|
4,320,437
|
|
57,752
|
|
1.79
|
%
|
||||
Noninterest-bearing deposits
|
262,056
|
|
|
|
|
242,325
|
|
|
|
||||||||
Other liabilities
|
113,331
|
|
|
|
|
68,064
|
|
|
|
||||||||
Shareholders’ equity
|
540,530
|
|
|
|
|
435,360
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
6,496,826
|
|
|
|
|
$
|
5,066,186
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Net interest income (1)
|
|
$
|
94,070
|
|
|
|
|
$
|
83,956
|
|
|
||||||
Net interest spread (1)
|
|
|
1.76
|
%
|
|
|
|
2.12
|
%
|
||||||||
Net interest margin (1)
|
|
|
2.02
|
%
|
|
|
|
2.31
|
%
|
(1)
|
Calculated on a fully taxable equivalent basis.
|
(2)
|
Annualized.
|
|
Nine Months Ended September 30,
|
||||||||||
|
2019 over 2018
|
||||||||||
(Dollars in thousands)
|
Yield/Rate
|
|
Volume
|
|
Change(1)
|
||||||
Increase (decrease) in:
|
|
|
|
|
|
||||||
Interest income:
|
|
|
|
|
|
||||||
Interest-earning deposits
|
$
|
877
|
|
|
$
|
1,629
|
|
|
$
|
2,506
|
|
Federal funds sold
|
19
|
|
|
23
|
|
|
42
|
|
|||
Debt securities available-for-sale
|
478
|
|
|
1,497
|
|
|
1,975
|
|
|||
Debt securities held-to-maturity
|
(46
|
)
|
|
3,340
|
|
|
3,294
|
|
|||
Equity securities
|
(66
|
)
|
|
(22
|
)
|
|
(88
|
)
|
|||
FHLB stock
|
214
|
|
|
120
|
|
|
334
|
|
|||
Total loans
|
12,186
|
|
|
35,095
|
|
|
47,281
|
|
|||
Total increase in interest income
|
13,662
|
|
|
41,682
|
|
|
55,344
|
|
|||
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
||||||
Interest-bearing deposits:
|
|
|
|
|
|
||||||
Interest-bearing checking accounts
|
2,429
|
|
|
5,410
|
|
|
7,839
|
|
|||
Money market deposit accounts
|
15,831
|
|
|
7,514
|
|
|
23,345
|
|
|||
Certificates of deposit
|
6,200
|
|
|
5,939
|
|
|
12,139
|
|
|||
Borrowings:
|
|
|
|
|
|
||||||
FHLB borrowings
|
1,758
|
|
|
721
|
|
|
2,479
|
|
|||
Line of credit borrowings
|
19
|
|
|
(20
|
)
|
|
(1
|
)
|
|||
Subordinated notes payable, net
|
(25
|
)
|
|
(546
|
)
|
|
(571
|
)
|
|||
Total increase in interest expense
|
26,212
|
|
|
19,018
|
|
|
45,230
|
|
|||
Total increase (decrease) in net interest income
|
$
|
(12,550
|
)
|
|
$
|
22,664
|
|
|
$
|
10,114
|
|
(1)
|
The change in interest income and interest expense due to changes in both composition and applicable yields/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 September 30, 2019
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
Investment
|
Parent
|
|
|
|
Investment
|
Parent
|
|
||||||||||||||||
(Dollars in thousands)
|
Bank
|
Management
|
and Other
|
Consolidated
|
|
Bank
|
Management
|
and Other
|
Consolidated
|
||||||||||||||||
Investment management fees
|
$
|
—
|
|
$
|
9,016
|
|
$
|
(114
|
)
|
$
|
8,902
|
|
|
$
|
—
|
|
$
|
9,914
|
|
$
|
(86
|
)
|
$
|
9,828
|
|
Service charges on deposits
|
129
|
|
—
|
|
—
|
|
129
|
|
|
146
|
|
—
|
|
—
|
|
146
|
|
||||||||
Net gain on the sale and call of debt securities
|
206
|
|
—
|
|
—
|
|
206
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Swap fees
|
4,171
|
|
—
|
|
—
|
|
4,171
|
|
|
1,881
|
|
—
|
|
—
|
|
1,881
|
|
||||||||
Commitment and other loan fees
|
464
|
|
—
|
|
—
|
|
464
|
|
|
373
|
|
—
|
|
—
|
|
373
|
|
||||||||
Other income (1)
|
349
|
|
(9
|
)
|
31
|
|
371
|
|
|
450
|
|
—
|
|
73
|
|
523
|
|
||||||||
Total non-interest income
|
$
|
5,319
|
|
$
|
9,007
|
|
$
|
(83
|
)
|
$
|
14,243
|
|
|
$
|
2,850
|
|
$
|
9,914
|
|
$
|
(13
|
)
|
$
|
12,751
|
|
(1)
|
Other income largely includes items such as income from bank owned life insurance (“BOLI”), change in fair value on swaps and equity securities, gains on the sale of loans or other real estate owned (“OREO”), and other general operating income.
|
•
|
Swap fees increased $2.3 million for the three months ended September 30, 2019, compared to the same period in 2018, due to an increase in the number of customer swap transactions closed during the quarter. While level and frequency of income associated with swap transactions can vary materially from period to period based on customers’ expectations of market conditions and term loan originations, there is strong customer demand for long-term interest rate protection in the current interest rate environment.
|
•
|
There was a net gain on the sale and call of debt securities of $206,000 for the three months ended September 30, 2019, as compared to no gain or loss for the same period in 2018.
|
•
|
Investment management fees decreased $898,000 for the three months ended September 30, 2019, compared to the same period in 2018, due to lower assets under management. Assets under management were $9.62 billion as of September 30, 2019, a decrease of $250.0 million from September 30, 2018, driven by market appreciation of $279.0 million, which was more than offset by net outflows of $529.0 million.
|
•
|
Other income reflected $31,000 of unrealized gains on equity securities for the three months ended September 30, 2019, related to a mutual fund investment in mid-cap value equities, compared to unrealized gains of $73,000 for the same period in 2018.
|
|
Nine Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
Investment
|
Parent
|
|
|
|
Investment
|
Parent
|
|
||||||||||||||||
(Dollars in thousands)
|
Bank
|
Management
|
and Other
|
Consolidated
|
|
Bank
|
Management
|
and Other
|
Consolidated
|
||||||||||||||||
Investment management fees
|
$
|
—
|
|
$
|
27,912
|
|
$
|
(332
|
)
|
$
|
27,580
|
|
|
$
|
—
|
|
$
|
28,621
|
|
$
|
(199
|
)
|
$
|
28,422
|
|
Service charges on deposits
|
343
|
|
—
|
|
—
|
|
343
|
|
|
420
|
|
—
|
|
—
|
|
420
|
|
||||||||
Net gain on the sale and call of debt securities
|
346
|
|
—
|
|
—
|
|
346
|
|
|
6
|
|
—
|
|
—
|
|
6
|
|
||||||||
Swap fees
|
7,666
|
|
—
|
|
—
|
|
7,666
|
|
|
5,066
|
|
—
|
|
—
|
|
5,066
|
|
||||||||
Commitment and other loan fees
|
1,251
|
|
—
|
|
—
|
|
1,251
|
|
|
1,036
|
|
—
|
|
—
|
|
1,036
|
|
||||||||
Other income (1)
|
1,207
|
|
17
|
|
881
|
|
2,105
|
|
|
1,353
|
|
1
|
|
38
|
|
1,392
|
|
||||||||
Total non-interest income
|
$
|
10,813
|
|
$
|
27,929
|
|
$
|
549
|
|
$
|
39,291
|
|
|
$
|
7,881
|
|
$
|
28,622
|
|
$
|
(161
|
)
|
$
|
36,342
|
|
(1)
|
Other income largely includes items such as income from BOLI, change in fair value on swaps and equity securities, gains on the sale of loans or OREO, and other general operating income.
|
•
|
Swap fees increased $2.6 million for the nine months ended September 30, 2019, compared to the same period in 2018, driven by ongoing demand for long-term interest rate protection from both new and existing customers. While level and frequency of income associated with swap transactions can vary materially from period to period based on customers’ expectations of market conditions and term loan originations, there is strong customer demand for long-term interest rate protection in the current interest rate environment.
|
•
|
There was a net gain on the sale and call of debt securities of $346,000 for the nine months ended September 30, 2019, as compared to a net gain of $6,000 for the same period in 2018.
|
•
|
Investment management fees decreased $709,000 for the nine months ended September 30, 2019, compared to the same period in 2018, which was due to lower assets under management. Assets under management were $9.62 billion as of September 30, 2019, a decrease of $250.0 million from September 30, 2018, driven by market appreciation of $279.0 million, which was more than offset by net outflows of $529.0 million.
|
•
|
Other income reflected $881,000 of unrealized gains on equity securities for the nine months ended September 30, 2019, related to our mutual fund investment in mid-cap value equities, compared to unrealized gains of $38,000 for the same period in 2018.
|
|
Three Months Ended September 30, 2019
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
Investment
|
Parent
|
|
|
|
Investment
|
Parent
|
|
||||||||||||||||
(Dollars in thousands)
|
Bank
|
Management
|
and Other
|
Consolidated
|
|
Bank
|
Management
|
and Other
|
Consolidated
|
||||||||||||||||
Compensation and employee benefits
|
$
|
12,805
|
|
$
|
5,902
|
|
$
|
—
|
|
$
|
18,707
|
|
|
$
|
10,826
|
|
$
|
6,141
|
|
$
|
—
|
|
$
|
16,967
|
|
Premises and occupancy costs
|
1,380
|
|
324
|
|
—
|
|
1,704
|
|
|
1,138
|
|
294
|
|
—
|
|
1,432
|
|
||||||||
Professional fees
|
1,237
|
|
141
|
|
(73
|
)
|
1,305
|
|
|
814
|
|
190
|
|
(115
|
)
|
889
|
|
||||||||
FDIC insurance expense
|
994
|
|
—
|
|
—
|
|
994
|
|
|
1,053
|
|
—
|
|
—
|
|
1,053
|
|
||||||||
General insurance expense
|
190
|
|
68
|
|
—
|
|
258
|
|
|
211
|
|
67
|
|
—
|
|
278
|
|
||||||||
State capital shares tax
|
(720
|
)
|
—
|
|
—
|
|
(720
|
)
|
|
485
|
|
—
|
|
—
|
|
485
|
|
||||||||
Travel and entertainment expense
|
1,053
|
|
286
|
|
—
|
|
1,339
|
|
|
727
|
|
259
|
|
—
|
|
986
|
|
||||||||
Intangible amortization expense
|
—
|
|
502
|
|
—
|
|
502
|
|
|
—
|
|
502
|
|
—
|
|
502
|
|
||||||||
Other operating expenses (1)
|
2,010
|
|
1,465
|
|
209
|
|
3,684
|
|
|
1,748
|
|
1,222
|
|
124
|
|
3,094
|
|
||||||||
Total non-interest expense
|
$
|
18,949
|
|
$
|
8,688
|
|
$
|
136
|
|
$
|
27,773
|
|
|
$
|
17,002
|
|
$
|
8,675
|
|
$
|
9
|
|
$
|
25,686
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Full-time equivalent employees (2)
|
219
|
|
57
|
|
—
|
|
276
|
|
|
188
|
|
65
|
|
—
|
|
253
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
(1)
|
Other operating expenses largely include items such as organizational dues and subscriptions, charitable contributions, data processing, investment research fees, 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 September 30, 2019, increased by $2.0 million compared to the same period in 2018, 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.
|
•
|
Premises and occupancy costs for the three months ended September 30, 2019, increased by $242,000 compared to the same period in 2018, primarily due to continued investments in our infrastructure, including additional office space in our Pittsburgh headquarters and investments in technology.
|
•
|
Professional fees for the three months ended September 30, 2019 increased by $423,000 compared to the same period in 2018, primarily due to continued growth in loan production and certain regulatory matters.
|
•
|
State capital shares tax for the three months ended September 30, 2019, decreased by $1.2 million compared to the same period in 2018, primarily due to a recent favorable ruling received by the Company.
|
•
|
Travel and entertainment expense for the three months ended September 30, 2019 increased by $326,000 compared to the same period in 2018, primarily due to a higher level of officer and relationship manager business development efforts consistent with our continued growth.
|
•
|
Other operating expenses for the three months ended September 30, 2019, increased by $262,000 compared to the same period in 2018, primarily related to higher data processing expenses and higher organizational dues and subscription fees.
|
•
|
Chartwell’s compensation and employee benefits costs for the three months ended September 30, 2019, decreased by $239,000 compared to the same period in 2018, primarily due to decreases in full-time equivalent employees.
|
•
|
Other operating expenses for the three months ended September 30, 2019, increased by $243,000 compared to the same period in 2018, primarily related to higher investment research fees.
|
|
Nine Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
Investment
|
Parent
|
|
|
|
Investment
|
Parent
|
|
||||||||||||||||
(Dollars in thousands)
|
Bank
|
Management
|
and Other
|
Consolidated
|
|
Bank
|
Management
|
and Other
|
Consolidated
|
||||||||||||||||
Compensation and employee benefits
|
$
|
35,791
|
|
$
|
16,676
|
|
$
|
—
|
|
$
|
52,467
|
|
|
$
|
30,431
|
|
$
|
17,746
|
|
$
|
—
|
|
$
|
48,177
|
|
Premises and occupancy costs
|
3,892
|
|
916
|
|
—
|
|
4,808
|
|
|
3,128
|
|
858
|
|
—
|
|
3,986
|
|
||||||||
Professional fees
|
3,281
|
|
533
|
|
(108
|
)
|
3,706
|
|
|
2,569
|
|
879
|
|
90
|
|
3,538
|
|
||||||||
FDIC insurance expense
|
3,462
|
|
—
|
|
—
|
|
3,462
|
|
|
3,333
|
|
—
|
|
—
|
|
3,333
|
|
||||||||
General insurance expense
|
608
|
|
203
|
|
—
|
|
811
|
|
|
565
|
|
202
|
|
—
|
|
767
|
|
||||||||
State capital shares tax
|
40
|
|
—
|
|
—
|
|
40
|
|
|
1,396
|
|
—
|
|
—
|
|
1,396
|
|
||||||||
Travel and entertainment expense
|
2,408
|
|
806
|
|
—
|
|
3,214
|
|
|
1,915
|
|
723
|
|
—
|
|
2,638
|
|
||||||||
Intangible amortization expense
|
—
|
|
1,506
|
|
—
|
|
1,506
|
|
|
—
|
|
1,465
|
|
—
|
|
1,465
|
|
||||||||
Other operating expenses (1)
|
7,390
|
|
4,040
|
|
586
|
|
12,016
|
|
|
5,674
|
|
3,580
|
|
300
|
|
9,554
|
|
||||||||
Total non-interest expense
|
$
|
56,872
|
|
$
|
24,680
|
|
$
|
478
|
|
$
|
82,030
|
|
|
$
|
49,011
|
|
$
|
25,453
|
|
$
|
390
|
|
$
|
74,854
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Other operating expenses largely include items such as organizational dues and subscriptions, charitable contributions, data processing, investment research fees, sub-advisory fees, telephone, marketing, employee-related expenses and other general operating expenses.
|
•
|
The Bank’s compensation and employee benefits costs for the nine months ended September 30, 2019, increased by $5.4 million compared to the same period in 2018, 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.
|
•
|
Premises and occupancy costs for the nine months ended September 30, 2019, increased by $764,000 compared to the same period in 2018, primarily due to continued investments in our infrastructure, including additional office space in our Pittsburgh headquarters and investments in technology.
|
•
|
Professional fees for the nine months ended September 30, 2019, increased by $712,000 compared to the same period in 2018, primarily due to continued growth in loan production and certain regulatory matters.
|
•
|
FDIC insurance expense for the nine months ended September 30, 2019 included a small bank assessment credit due to the deposit insurance fund reserve ratio exceeding a target threshold.
|
•
|
Travel and entertainment expense for the nine months ended September 30, 2019, increased by $493,000 compared to the same period in 2018, primarily due to a higher level of officer and relationship manager business development efforts consistent with our continued growth.
|
•
|
State capital shares tax for the nine months ended September 30, 2019, decreased by $1.4 million compared to the same period in 2018, due to a recent favorable ruling received by the Company.
|
•
|
Other operating expenses for the nine months ended September 30, 2019, increased by $1.7 million compared to the same period in 2018, primarily related to a valuation adjustment on OREO, higher marketing expenses, an increase in organization dues and subscriptions, and higher data processing expenses.
|
•
|
Chartwell’s compensation and employee benefits costs for the nine months ended September 30, 2019, decreased by $1.1 million compared to the same period in 2018, primarily due to decreases in full-time equivalent employees and incentive and stock-based compensation expenses.
|
•
|
Professional fees for the nine months ended September 30, 2019, decreased by $346,000 compared to the same period in 2018. The prior year period included higher legal fees incurred in connection with the acquisition of Columbia.
|
•
|
Other operating expenses for the nine months ended September 30, 2019, increased by $460,000 compared to the same period in 2018, primarily due to higher investment research fees.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(Dollars in thousands)
|
Outstanding
|
Percent of
Loans |
|
Outstanding
|
Percent of
Loans |
||||||
Private banking loans
|
$
|
3,368,142
|
|
56.0
|
%
|
|
$
|
2,869,543
|
|
55.9
|
%
|
Middle-market banking loans:
|
|
|
|
|
|
||||||
Commercial and industrial
|
992,508
|
|
16.5
|
%
|
|
785,320
|
|
15.3
|
%
|
||
Commercial real estate
|
1,656,030
|
|
27.5
|
%
|
|
1,478,010
|
|
28.8
|
%
|
||
Total middle-market banking loans
|
2,648,538
|
|
44.0
|
%
|
|
2,263,330
|
|
44.1
|
%
|
||
Loans and leases held-for-investment
|
$
|
6,016,680
|
|
100.0
|
%
|
|
$
|
5,132,873
|
|
100.0
|
%
|
(Dollars in thousands)
|
September 30,
2019 |
December 31,
2018 |
||||
Private banking loans:
|
|
|
||||
Secured by cash, marketable securities and/or cash value life insurance
|
$
|
3,272,175
|
|
$
|
2,774,800
|
|
Secured by real estate
|
65,822
|
|
69,766
|
|
||
Other
|
30,145
|
|
24,977
|
|
||
Total private banking loans
|
$
|
3,368,142
|
|
$
|
2,869,543
|
|
|
September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
One Year
or Less (1) |
One to
Five Years |
Greater Than
Five Years |
Total
|
||||||||
Maturity:
|
|
|
|
|
||||||||
Private banking
|
$
|
3,198,990
|
|
$
|
62,748
|
|
$
|
106,404
|
|
$
|
3,368,142
|
|
Commercial and industrial
|
249,612
|
|
534,321
|
|
208,575
|
|
992,508
|
|
||||
Commercial real estate
|
222,299
|
|
741,194
|
|
692,537
|
|
1,656,030
|
|
||||
Loans and leases held-for-investment
|
$
|
3,670,901
|
|
$
|
1,338,263
|
|
$
|
1,007,516
|
|
$
|
6,016,680
|
|
|
|
|
|
|
||||||||
Interest rate sensitivity:
|
|
|
|
|
||||||||
Fixed interest rates
|
$
|
152,426
|
|
$
|
135,944
|
|
$
|
166,833
|
|
$
|
455,203
|
|
Floating or adjustable interest rates
|
3,518,475
|
|
1,202,319
|
|
840,683
|
|
5,561,477
|
|
||||
Loans and leases held-for-investment
|
$
|
3,670,901
|
|
$
|
1,338,263
|
|
$
|
1,007,516
|
|
$
|
6,016,680
|
|
(1)
|
The amounts outstanding reflected in the “One Year or Less” column include $3.16 billion of loans that are due on demand with no stated maturity.
|
(Dollars in thousands)
|
September 30,
2019 |
December 31,
2018 |
||||
General reserves
|
$
|
13,203
|
|
$
|
12,771
|
|
Specific reserves
|
171
|
|
437
|
|
||
Total allowance for loan and lease losses
|
$
|
13,374
|
|
$
|
13,208
|
|
Allowance for loan and lease losses to loans and leases
|
0.22
|
%
|
0.26
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(Dollars in thousands)
|
Reserve
|
Percent of Loans
|
|
Reserve
|
Percent of Loans
|
||||||
Private banking
|
$
|
1,851
|
|
56.0
|
%
|
|
$
|
1,942
|
|
55.9
|
%
|
Commercial and industrial
|
5,316
|
|
16.5
|
%
|
|
5,764
|
|
15.3
|
%
|
||
Commercial real estate
|
6,207
|
|
27.5
|
%
|
|
5,502
|
|
28.8
|
%
|
||
Total allowance for loan and lease losses
|
$
|
13,374
|
|
100.0
|
%
|
|
$
|
13,208
|
|
100.0
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Beginning balance
|
$
|
14,016
|
|
$
|
15,321
|
|
|
$
|
13,208
|
|
$
|
14,417
|
|
Charge-offs:
|
|
|
|
|
|
||||||||
Private banking
|
(112
|
)
|
—
|
|
|
(112
|
)
|
—
|
|
||||
Commercial and industrial
|
—
|
|
(2,068
|
)
|
|
—
|
|
(2,068
|
)
|
||||
Commercial real estate
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Total charge-offs
|
(112
|
)
|
(2,068
|
)
|
|
(112
|
)
|
(2,068
|
)
|
||||
Recoveries:
|
|
|
|
|
|
||||||||
Private banking
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Commercial and industrial
|
77
|
|
564
|
|
|
1,974
|
|
858
|
|
||||
Commercial real estate
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Total recoveries
|
77
|
|
564
|
|
|
1,974
|
|
858
|
|
||||
Net recoveries (charge-offs)
|
(35
|
)
|
(1,504
|
)
|
|
1,862
|
|
(1,210
|
)
|
||||
Provision (credit) for loan and lease losses
|
(607
|
)
|
(234
|
)
|
|
(1,696
|
)
|
376
|
|
||||
Ending balance
|
$
|
13,374
|
|
$
|
13,583
|
|
|
$
|
13,374
|
|
$
|
13,583
|
|
|
|
|
|
|
|
||||||||
Net loan charge-offs (recoveries) to average total loans, annualized
|
—
|
%
|
0.13
|
%
|
|
(0.05
|
)%
|
0.04
|
%
|
||||
Provision (credit) for loan and lease losses to average total loans, annualized
|
(0.04
|
)%
|
(0.02
|
)%
|
|
(0.04
|
)%
|
0.01
|
%
|
(Dollars in thousands)
|
September 30,
2019 |
December 31,
2018 |
||||
Non-performing loans:
|
|
|
||||
Private banking
|
$
|
184
|
|
$
|
2,237
|
|
Commercial and industrial
|
—
|
|
—
|
|
||
Commercial real estate
|
—
|
|
—
|
|
||
Total non-performing loans
|
$
|
184
|
|
$
|
2,237
|
|
Other real estate owned
|
4,250
|
|
3,424
|
|
||
Total non-performing assets
|
$
|
4,434
|
|
$
|
5,661
|
|
|
|
|
||||
Non-performing troubled debt restructured loans
|
$
|
171
|
|
$
|
237
|
|
Performing troubled debt restructured loans
|
$
|
—
|
|
$
|
—
|
|
Non-performing loans to total loans
|
—
|
%
|
0.04
|
%
|
||
Allowance for loan and lease losses to non-performing loans
|
7,268.48
|
%
|
590.43
|
%
|
||
Non-performing assets to total assets
|
0.06
|
%
|
0.09
|
%
|
|
September 30, 2019
|
|||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||
Debt securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
183,621
|
|
$
|
2,788
|
|
$
|
444
|
|
$
|
185,965
|
|
Trust preferred securities
|
18,060
|
|
—
|
|
706
|
|
17,354
|
|
||||
Agency collateralized mortgage obligations
|
28,887
|
|
17
|
|
38
|
|
28,866
|
|
||||
Agency mortgage-backed securities
|
18,469
|
|
426
|
|
—
|
|
18,895
|
|
||||
Agency debentures
|
9,486
|
|
614
|
|
—
|
|
10,100
|
|
||||
Total debt securities available-for-sale
|
258,523
|
|
3,845
|
|
1,188
|
|
261,180
|
|
||||
Debt securities held-to-maturity:
|
|
|
|
|
||||||||
Corporate bonds
|
27,180
|
|
585
|
|
—
|
|
27,765
|
|
||||
Agency debentures
|
136,892
|
|
969
|
|
105
|
|
137,756
|
|
||||
Municipal bonds
|
18,765
|
|
150
|
|
—
|
|
18,915
|
|
||||
Agency mortgage-backed securities
|
4,373
|
|
409
|
|
—
|
|
4,782
|
|
||||
Total debt securities held-to-maturity
|
187,210
|
|
2,113
|
|
105
|
|
189,218
|
|
||||
Total debt securities
|
$
|
445,733
|
|
$
|
5,958
|
|
$
|
1,293
|
|
$
|
450,398
|
|
|
December 31, 2018
|
|||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||
Debt securities available-for-sale:
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
152,691
|
|
$
|
33
|
|
$
|
1,661
|
|
$
|
151,063
|
|
Trust preferred securities
|
17,964
|
|
—
|
|
1,115
|
|
16,849
|
|
||||
Non-agency collateralized loan obligations
|
393
|
|
—
|
|
3
|
|
390
|
|
||||
Agency collateralized mortgage obligations
|
33,680
|
|
42
|
|
4
|
|
33,718
|
|
||||
Agency mortgage-backed securities
|
21,575
|
|
37
|
|
348
|
|
21,264
|
|
||||
Agency debentures
|
9,994
|
|
67
|
|
49
|
|
10,012
|
|
||||
Total debt securities available-for-sale
|
236,297
|
|
179
|
|
3,180
|
|
233,296
|
|
||||
Debt securities held-to-maturity:
|
|
|
|
|
||||||||
Corporate bonds
|
27,184
|
|
353
|
|
22
|
|
27,515
|
|
||||
Agency debentures
|
141,575
|
|
472
|
|
34
|
|
142,013
|
|
||||
Municipal bonds
|
22,963
|
|
11
|
|
61
|
|
22,913
|
|
||||
Agency mortgage-backed securities
|
4,409
|
|
—
|
|
27
|
|
4,382
|
|
||||
Total debt securities held-to-maturity
|
196,131
|
|
836
|
|
144
|
|
196,823
|
|
||||
Total debt securities
|
$
|
432,428
|
|
$
|
1,015
|
|
$
|
3,324
|
|
$
|
430,119
|
|
|
September 30, 2019
|
||||||||||||||||||||||||||||
|
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
|
|||||||||||||||
Debt securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Corporate bonds
|
$
|
45,284
|
|
2.97
|
%
|
|
$
|
109,121
|
|
3.19
|
%
|
|
$
|
31,560
|
|
3.56
|
%
|
|
$
|
—
|
|
—
|
%
|
|
$
|
185,965
|
|
3.20
|
%
|
Trust preferred securities
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
9,256
|
|
4.17
|
%
|
|
8,098
|
|
4.22
|
%
|
|
17,354
|
|
4.19
|
%
|
|||||
Agency collateralized mortgage obligations
|
—
|
|
—
|
%
|
|
543
|
|
2.80
|
%
|
|
—
|
|
—
|
%
|
|
28,323
|
|
2.64
|
%
|
|
28,866
|
|
2.64
|
%
|
|||||
Agency mortgage-backed securities
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
18,895
|
|
2.87
|
%
|
|
18,895
|
|
2.87
|
%
|
|||||
Agency debentures
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
10,100
|
|
3.18
|
%
|
|
10,100
|
|
3.18
|
%
|
|||||
Total debt securities available-for-sale
|
45,284
|
|
|
|
109,664
|
|
|
|
40,816
|
|
|
|
65,416
|
|
|
|
261,180
|
|
|
||||||||||
Weighted average yield
|
|
2.97
|
%
|
|
|
3.19
|
%
|
|
|
3.70
|
%
|
|
|
3.00
|
%
|
|
|
3.18
|
%
|
||||||||||
Debt securities held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Corporate bonds
|
—
|
|
—
|
%
|
|
4,646
|
|
5.59
|
%
|
|
23,119
|
|
5.27
|
%
|
|
—
|
|
—
|
%
|
|
27,765
|
|
5.33
|
%
|
|||||
Agency debentures
|
—
|
|
—
|
%
|
|
5,003
|
|
3.30
|
%
|
|
101,122
|
|
3.09
|
%
|
|
31,631
|
|
3.57
|
%
|
|
137,756
|
|
3.20
|
%
|
|||||
Municipal bonds
|
3,316
|
|
2.62
|
%
|
|
11,243
|
|
3.16
|
%
|
|
4,356
|
|
3.67
|
%
|
|
—
|
|
—
|
%
|
|
18,915
|
|
3.18
|
%
|
|||||
Agency mortgage-backed securities
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
4,782
|
|
3.69
|
%
|
|
4,782
|
|
3.69
|
%
|
|||||
Total debt securities held-to-maturity
|
3,316
|
|
|
|
20,892
|
|
|
|
128,597
|
|
|
|
36,413
|
|
|
|
189,218
|
|
|
||||||||||
Weighted average yield
|
|
2.62
|
%
|
|
|
3.72
|
%
|
|
|
3.49
|
%
|
|
|
3.59
|
%
|
|
|
3.52
|
%
|
||||||||||
Total debt securities
|
$
|
48,600
|
|
|
|
$
|
130,556
|
|
|
|
$
|
169,413
|
|
|
|
$
|
101,829
|
|
|
|
$
|
450,398
|
|
|
|||||
Weighted average yield
|
|
2.95
|
%
|
|
|
3.28
|
%
|
|
|
3.54
|
%
|
|
|
3.20
|
%
|
|
|
3.33
|
%
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||
(Dollars in thousands)
|
Beginning
Balance |
Inflows (1)
|
Outflows (2)
|
Market Appreciation (Depreciation)
|
Ending
Balance |
||||||||||
Equity investment styles
|
$
|
3,419,000
|
|
$
|
282,000
|
|
$
|
(416,000
|
)
|
$
|
591,000
|
|
$
|
3,876,000
|
|
Fixed income investment styles
|
4,263,000
|
|
383,000
|
|
(262,000
|
)
|
294,000
|
|
4,678,000
|
|
|||||
Balanced investment styles
|
1,507,000
|
|
121,000
|
|
(663,000
|
)
|
96,000
|
|
1,061,000
|
|
|||||
Total assets under management
|
$
|
9,189,000
|
|
$
|
786,000
|
|
$
|
(1,341,000
|
)
|
$
|
981,000
|
|
$
|
9,615,000
|
|
(1)
|
Inflows consist of new business and contributions to existing accounts.
|
(2)
|
Outflows consist of business lost as well as distributions from existing accounts.
|
|
Three Months Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
||||||||
(Dollars in thousands)
|
Average Amount
|
Average Rate Paid
|
|
Average Amount
|
Average Rate Paid
|
||||||
Interest-bearing checking accounts
|
$
|
1,116,624
|
|
2.06
|
%
|
|
$
|
657,402
|
|
1.97
|
%
|
Money market deposit accounts
|
3,106,186
|
|
2.41
|
%
|
|
2,506,334
|
|
1.97
|
%
|
||
Certificates of deposit
|
1,462,521
|
|
2.56
|
%
|
|
1,155,888
|
|
2.23
|
%
|
||
Total average interest-bearing deposits
|
5,685,331
|
|
2.38
|
%
|
|
4,319,624
|
|
2.04
|
%
|
||
Noninterest-bearing deposits
|
268,013
|
|
—
|
|
|
253,033
|
|
—
|
|
||
Total average deposits
|
$
|
5,953,344
|
|
2.27
|
%
|
|
$
|
4,572,657
|
|
1.92
|
%
|
|
Nine Months Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
||||||||
(Dollars in thousands)
|
Average Amount
|
Average Rate Paid
|
|
Average Amount
|
Average Rate Paid
|
||||||
Interest-bearing checking accounts
|
$
|
927,198
|
|
2.21
|
%
|
|
$
|
576,032
|
|
1.73
|
%
|
Money market deposit accounts
|
2,883,009
|
|
2.49
|
%
|
|
2,369,910
|
|
1.71
|
%
|
||
Certificates of deposit
|
1,375,324
|
|
2.59
|
%
|
|
1,021,248
|
|
1.91
|
%
|
||
Total average interest-bearing deposits
|
5,185,531
|
|
2.46
|
%
|
|
3,967,190
|
|
1.76
|
%
|
||
Noninterest-bearing deposits
|
262,056
|
|
—
|
|
|
242,325
|
|
—
|
|
||
Total average deposits
|
$
|
5,447,587
|
|
2.35
|
%
|
|
$
|
4,209,515
|
|
1.66
|
%
|
(Dollars in thousands)
|
September 30, 2019
|
||
Months to maturity:
|
|
||
Three months or less
|
$
|
382,683
|
|
Over three to six months
|
217,581
|
|
|
Over six to 12 months
|
288,090
|
|
|
Over 12 months
|
185,411
|
|
|
Total
|
$
|
1,073,765
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Interest Rate
|
Maximum Balance at Any Month End
|
Average
Balance During the Period |
Maximum
Original Term |
|
Amount
|
Interest Rate
|
Maximum Balance at Any Month End
|
Average
Balance During the Period |
Maximum
Original Term |
||||||||||||
FHLB borrowings
|
$
|
330,000
|
|
2.23%
|
$
|
605,000
|
|
$
|
370,550
|
|
12 months
|
|
$
|
365,000
|
|
2.61%
|
$
|
565,000
|
|
$
|
325,356
|
|
12 months
|
Line of credit borrowings
|
—
|
|
—%
|
4,250
|
|
1,650
|
|
12 months
|
|
4,250
|
|
5.47%
|
6,200
|
|
2,568
|
|
12 months
|
||||||
Subordinated notes payable
|
—
|
|
—%
|
35,000
|
|
23,205
|
|
5 years
|
|
35,000
|
|
5.75%
|
35,000
|
|
35,000
|
|
5 years
|
||||||
Total borrowings outstanding
|
$
|
330,000
|
|
2.23%
|
$
|
644,250
|
|
$
|
395,405
|
|
|
|
$
|
404,250
|
|
2.91%
|
$
|
606,200
|
|
$
|
362,924
|
|
|
(Dollars in thousands)
|
September 30,
2019 |
December 31,
2018 |
||||
Available cash
|
$
|
161,954
|
|
$
|
97,703
|
|
Certain unpledged debt and equity securities
|
405,569
|
|
389,010
|
|
||
Net borrowing capacity
|
586,747
|
|
476,686
|
|
||
Total liquidity
|
$
|
1,154,270
|
|
$
|
963,399
|
|
|
September 30, 2019
|
||||||||||||||||
|
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
|
$
|
552,734
|
|
12.40
|
%
|
|
$
|
356,596
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
505,370
|
|
11.38
|
%
|
|
$
|
355,135
|
|
8.00
|
%
|
|
$
|
443,919
|
|
10.00
|
%
|
Tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
541,505
|
|
12.15
|
%
|
|
$
|
267,447
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
491,401
|
|
11.07
|
%
|
|
$
|
266,352
|
|
6.00
|
%
|
|
$
|
355,135
|
|
8.00
|
%
|
Common equity tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
427,084
|
|
9.58
|
%
|
|
$
|
200,585
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
491,401
|
|
11.07
|
%
|
|
$
|
199,764
|
|
4.50
|
%
|
|
$
|
288,547
|
|
6.50
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
541,505
|
|
7.91
|
%
|
|
$
|
273,931
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
491,401
|
|
7.20
|
%
|
|
$
|
273,036
|
|
4.00
|
%
|
|
$
|
341,295
|
|
5.00
|
%
|
|
December 31, 2018
|
||||||||||||||||
|
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
|
$
|
426,066
|
|
10.86
|
%
|
|
$
|
313,789
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
437,849
|
|
11.25
|
%
|
|
$
|
311,497
|
|
8.00
|
%
|
|
$
|
389,371
|
|
10.00
|
%
|
Tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
414,808
|
|
10.58
|
%
|
|
$
|
235,342
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
424,418
|
|
10.90
|
%
|
|
$
|
233,622
|
|
6.00
|
%
|
|
$
|
311,497
|
|
8.00
|
%
|
Common equity tier 1 risk-based capital ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
378,117
|
|
9.64
|
%
|
|
$
|
176,506
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
424,418
|
|
10.90
|
%
|
|
$
|
175,217
|
|
4.50
|
%
|
|
$
|
253,091
|
|
6.50
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
414,808
|
|
7.28
|
%
|
|
$
|
227,851
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Bank
|
$
|
424,418
|
|
7.49
|
%
|
|
$
|
226,762
|
|
4.00
|
%
|
|
$
|
283,453
|
|
5.00
|
%
|
|
September 30, 2019
|
||||||||||||||
(Dollars in thousands)
|
One Year
or Less (1) |
One to
Three Years |
Three to
Five Years |
Greater Than
Five Years |
Total
|
||||||||||
Unused loan commitments
|
$
|
3,851,043
|
|
$
|
436,634
|
|
$
|
155,305
|
|
$
|
23,104
|
|
$
|
4,466,086
|
|
Standby letters of credit
|
40,813
|
|
21,106
|
|
9,145
|
|
—
|
|
71,064
|
|
|||||
Total off-balance sheet arrangements
|
$
|
3,891,856
|
|
$
|
457,740
|
|
$
|
164,450
|
|
$
|
23,104
|
|
$
|
4,537,150
|
|
(1)
|
The off-balance sheet amounts reflected in the “One Year or Less” column include $3.51 billion in unused loan commitments and $272,000 in standby letters of credit that are due on demand with no stated maturity.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(Dollars in thousands)
|
Amount Change from
Base Case |
Percent Change from
Base Case |
|
Amount Change from
Base Case |
Percent Change from
Base Case |
||||||
Net interest income (loss):
|
|
|
|
|
|
||||||
+300
|
$
|
41,377
|
|
30.80
|
%
|
|
$
|
26,950
|
|
22.28
|
%
|
+200
|
$
|
27,784
|
|
20.68
|
%
|
|
$
|
18,056
|
|
14.93
|
%
|
+100
|
$
|
14,295
|
|
10.64
|
%
|
|
$
|
9,399
|
|
7.77
|
%
|
–100
|
$
|
(14,961
|
)
|
(11.14
|
)%
|
|
$
|
(9,712
|
)
|
(8.03
|
)%
|
–200
|
$
|
(30,312
|
)
|
(22.57
|
)%
|
|
$
|
(22,079
|
)
|
(18.25
|
)%
|
|
|
|
|
|
|
||||||
Economic value of equity:
|
|
|
|
|
|
||||||
+300
|
$
|
7,435
|
|
1.27
|
%
|
|
$
|
(19,782
|
)
|
(4.09
|
)%
|
+200
|
$
|
6,898
|
|
1.18
|
%
|
|
$
|
(12,468
|
)
|
(2.58
|
)%
|
+100
|
$
|
7,260
|
|
1.24
|
%
|
|
$
|
(3,526
|
)
|
(0.73
|
)%
|
–100
|
$
|
(9,453
|
)
|
(1.62
|
)%
|
|
$
|
(505
|
)
|
(0.10
|
)%
|
–200
|
$
|
(18,784
|
)
|
(3.21
|
)%
|
|
$
|
(1,380
|
)
|
(0.29
|
)%
|
|
September 30, 2019
|
|||||||||||||||||||||||
(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
|
$
|
378,182
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
378,182
|
|
Federal funds sold
|
5,411
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,411
|
|
||||||||
Total investment securities
|
260,112
|
|
19,196
|
|
47,239
|
|
81,545
|
|
36,755
|
|
23,433
|
|
441
|
|
468,721
|
|
||||||||
Total loans and leases
|
5,655,539
|
|
37,392
|
|
45,094
|
|
170,371
|
|
61,511
|
|
43,251
|
|
3,522
|
|
6,016,680
|
|
||||||||
Other assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
329,455
|
|
329,455
|
|
||||||||
Total assets
|
$
|
6,299,244
|
|
$
|
56,588
|
|
$
|
92,333
|
|
$
|
251,916
|
|
$
|
98,266
|
|
$
|
66,684
|
|
$
|
333,418
|
|
$
|
7,198,449
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transaction deposits
|
$
|
4,104,240
|
|
$
|
10,000
|
|
$
|
72,000
|
|
$
|
196,295
|
|
$
|
100,000
|
|
$
|
—
|
|
$
|
312,285
|
|
$
|
4,794,820
|
|
Certificates of deposit
|
493,646
|
|
276,504
|
|
312,259
|
|
217,376
|
|
—
|
|
—
|
|
—
|
|
1,299,785
|
|
||||||||
Borrowings, net
|
130,000
|
|
—
|
|
—
|
|
100,000
|
|
100,000
|
|
—
|
|
—
|
|
330,000
|
|
||||||||
Other liabilities
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
169,337
|
|
169,337
|
|
||||||||
Total liabilities
|
4,727,886
|
|
286,504
|
|
384,259
|
|
513,671
|
|
200,000
|
|
—
|
|
481,622
|
|
6,593,942
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
604,507
|
|
604,507
|
|
||||||||
Total liabilities and equity
|
$
|
4,727,886
|
|
$
|
286,504
|
|
$
|
384,259
|
|
$
|
513,671
|
|
$
|
200,000
|
|
$
|
—
|
|
$
|
1,086,129
|
|
$
|
7,198,449
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate sensitivity gap
|
$
|
1,571,358
|
|
$
|
(229,916
|
)
|
$
|
(291,926
|
)
|
$
|
(261,755
|
)
|
$
|
(101,734
|
)
|
$
|
66,684
|
|
$
|
(752,711
|
)
|
|
||
Cumulative interest rate sensitivity gap
|
$
|
1,571,358
|
|
$
|
1,341,442
|
|
$
|
1,049,516
|
|
$
|
787,761
|
|
$
|
686,027
|
|
$
|
752,711
|
|
|
|
||||
Cumulative interest rate sensitive assets to rate sensitive liabilities
|
133.2
|
%
|
126.8
|
%
|
119.4
|
%
|
113.3
|
%
|
111.2
|
%
|
112.3
|
%
|
109.2
|
%
|
|
|||||||||
Cumulative gap to total assets
|
21.8
|
%
|
18.6
|
%
|
14.6
|
%
|
10.9
|
%
|
9.5
|
%
|
10.5
|
%
|
|
|
|
Total Number
of Shares
Purchased (1)
|
|
Weighted
Average
Price Paid
per Share (1)
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs (2)
|
|
Approximate Dollar Value
of Shares that May
Yet Be Purchased
Under the Plans or
Programs (2)
|
||||||
July 1, 2019 - July 31, 2019
|
16,131
|
|
|
$
|
20.24
|
|
10,000
|
|
|
$
|
11,303,137
|
|
August 1, 2019 - August 31, 2019
|
26,405
|
|
|
19.57
|
|
25,000
|
|
|
10,814,015
|
|
||
September 1, 2019 - September 30, 2019
|
20,846
|
|
|
19.37
|
|
20,000
|
|
|
10,428,804
|
|
||
Total
|
63,382
|
|
|
$
|
19.67
|
|
55,000
|
|
|
$
|
10,428,804
|
|
(1)
|
There were 8,382 shares of treasury stock acquired in connection with the exercise, net settlement or vesting of equity awards included in the total number of shares purchased reflected in the table above. These shares were not part of a publicly announced plan or program.
|
(2)
|
On October 16, 2018, the Board approved an additional share repurchase program of up to $5 million. On July 15, 2019, the Board approved an additional share repurchase program of up to $10 million. Under this authorization, purchases of shares may be made at the discretion of management from time to time in the open market or through negotiated transactions, as well as purchases of shares or the options to acquire shares subject to common stock incentive compensation award agreements from officers, directors or employees of the Company.
|
31.1
|
31.2
|
32
|
101
|
The following materials from TriState Capital Holdings, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2019, 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
|
|
Chairman, President and Chief Executive Officer
|
|
|
By
|
/s/ David J. Demas
|
|
David J. Demas
|
|
Chief Financial Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of TriState Capital Holdings, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 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:
|
(a)
|
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;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the generally accepted accounting principles;
|
(c)
|
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
|
(d)
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on 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):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of TriState Capital Holdings, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 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:
|
(a)
|
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;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the generally accepted accounting principles;
|
(c)
|
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
|
(d)
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on 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):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|