☒ | ANNUAL 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 and zip code) |
(412) 304-0304
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(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 | The Nasdaq Stock 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 |
The Nasdaq Stock 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
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TSCBP |
The Nasdaq Stock Market
|
Large accelerated filer | ☐ | Accelerated filer | ý | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
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December 31, | 2020 Change from 2019 | ||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | Percent | |||||||||||||
Middle-market banking offices: | |||||||||||||||||
Western Pennsylvania | $ | 884,860 | $ | 765,461 | $ | 119,399 | 15.6% | ||||||||||
Eastern Pennsylvania | 867,267 | 644,483 | 222,784 | 34.6% | |||||||||||||
New Jersey | 572,607 | 487,496 | 85,111 | 17.5% | |||||||||||||
New York | 572,265 | 524,016 | 48,249 | 9.2% | |||||||||||||
Ohio | 532,619 | 460,701 | 71,918 | 15.6% | |||||||||||||
Total middle-market banking loans | 3,429,618 | 2,882,157 | 547,461 | 19.0 | % | ||||||||||||
Total private banking loans | 4,807,800 | 3,695,402 | 1,112,398 | 30.1 | % | ||||||||||||
Loans and leases held-for-investment | $ | 8,237,418 | $ | 6,577,559 | $ | 1,659,859 | 25.2 | % |
(Dollars in thousands) | December 31, 2020 |
Percent of
Loans |
||||||
Private banking loans | $ | 4,807,800 | 58.4 | % | ||||
Middle-market banking loans: | ||||||||
Commercial and industrial | 1,274,152 | 15.5 | % | |||||
Commercial real estate | 2,155,466 | 26.1 | % | |||||
Total middle-market banking loans | 3,429,618 | 41.6 | % | |||||
Loans and leases held-for-investment | $ | 8,237,418 | 100.0 | % |
(Dollars in thousands) | December 31, 2020 |
Percent of
Private Banking Loans |
Percent of
Loans |
||||||||
Private banking loans: | |||||||||||
Secured by cash, marketable securities and/or cash value life insurance
|
$ | 4,738,594 | 98.6 | % | 57.5 | % | |||||
Secured by real estate | 45,014 | 0.9 | % | 0.6 | % | ||||||
Other | 24,192 | 0.5 | % | 0.3 | % | ||||||
Total private banking loans | $ | 4,807,800 | 100.0 | % | 58.4 | % |
(Dollars in thousands) | December 31, 2020 |
Percent of Total
Commercial Loans |
||||||
Geographic region of borrower: | ||||||||
Pennsylvania | $ | 1,224,768 | 35.7 | % | ||||
New York | 604,240 | 17.6 | % | |||||
New Jersey | 561,151 | 16.4 | % | |||||
Ohio | 537,032 | 15.7 | % | |||||
Contiguous states | 169,437 | 4.9 | % | |||||
Other states | 332,990 | 9.7 | % | |||||
Total commercial loans and leases | $ | 3,429,618 | 100.0 | % |
December 31, | 2020 Change from 2019 | ||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | Percent | |||||||||||||
Non-brokered deposits: | |||||||||||||||||
Noninterest-bearing checking accounts | $ | 456,426 | $ | 356,102 | $ | 100,324 | 28.2 | % | |||||||||
Interest-bearing checking accounts | 2,911,669 | 1,274,859 | 1,636,810 | 128.4 | % | ||||||||||||
Money market deposit accounts | 3,482,381 | 3,104,565 | 377,816 | 12.2 | % | ||||||||||||
Certificates of deposit | 885,310 | 1,132,477 | (247,167) | (21.8) | % | ||||||||||||
Total non-brokered deposits | 7,735,786 | 5,868,003 | 1,867,783 | 31.8 | % | ||||||||||||
Brokered deposits: | |||||||||||||||||
Interest-bearing checking accounts | 157,165 | 123,405 | 33,760 | 27.4 | % | ||||||||||||
Money market deposit accounts | 445,416 | 322,180 | 123,236 | 38.3 | % | ||||||||||||
Certificates of deposit | 150,722 | 321,025 | (170,303) | (53.0) | % | ||||||||||||
Total brokered deposits | 753,303 | 766,610 | (13,307) | (1.7) | % | ||||||||||||
Total deposits | $ | 8,489,089 | $ | 6,634,613 | $ | 1,854,476 | 28.0 | % | |||||||||
Non-brokered deposits to total deposits | 91.1 | % | 88.4 | % |
Year Ended December 31, 2020 | |||||||||||||||||
(Dollars in thousands) |
Beginning
Balance |
Inflows (1)
|
Outflows (2)
|
Market Appreciation (Depreciation) |
Ending
Balance |
||||||||||||
Equity investment styles | $ | 3,932,000 | $ | 608,000 | $ | (663,000) | $ | 165,000 | $ | 4,042,000 | |||||||
Fixed income investment styles | 4,816,000 | 1,081,000 | (483,000) | 249,000 | 5,663,000 | ||||||||||||
Balanced investment styles | 953,000 | 37,000 | (428,000) | (4,000) | 558,000 | ||||||||||||
Total assets under management | $ | 9,701,000 | $ | 1,726,000 | $ | (1,574,000) | $ | 410,000 | $ | 10,263,000 |
“Well capitalized” | “Adequately capitalized” | ||||
Tier 1 leverage ratio of at least 5%, | Tier 1 leverage ratio of at least 4%, | ||||
CET 1 risk-based ratio of at least 6.5%, | CET 1 risk-based ratio of at least 4.5%, | ||||
Tier 1 risk-based ratio of at least 8%, | Tier 1 risk-based ratio of at least 6%, and | ||||
Total risk-based ratio of at least 10%, and | Total risk-based ratio of at least 8% | ||||
Not subject to written agreement, order, capital directive or prompt corrective action directive that requires a specific capital level. | |||||
“Undercapitalized” | “Significantly undercapitalized” | ||||
Tier 1 leverage ratio less than 4%, | Tier 1 leverage ratio less than 3%, | ||||
CET 1 risk-based ratio less than 4.5%, | CET 1 risk-based ratio less than 3%, | ||||
Tier 1 risk-based ratio less than 6%, or | Tier 1 risk-based ratio less than 4%, or | ||||
Total risk-based ratio less than 8% | Total risk-based ratio less than 6% | ||||
“Critically undercapitalized” | |||||
Tangible equity to total assets less than 2% |
Total Number
of Shares
Purchased (1)
|
Weighted
Average Price Paid per Share |
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 |
|||||||||||||||||
October 1, 2020 - October 31, 2020 | 832 | $ | 14.83 | — | $ | 9,758,275 | ||||||||||||||
November 1, 2020 - November 30, 2020 | 3,756 | 15.67 | — | 9,758,275 | ||||||||||||||||
December 1, 2020 - December 31, 2020 | 10,764 | 16.30 | — | 9,758,275 | ||||||||||||||||
Total | 15,352 | $ | 16.07 | — | $ | 9,758,275 |
As of and for the Years Ended December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Period-end balance sheet data: | |||||||||||||||||
Cash and cash equivalents | $ | 435,442 | $ | 403,855 | $ | 189,985 | $ | 156,153 | $ | 103,994 | |||||||
Total investment securities, net | 842,545 | 469,150 | 466,759 | 220,552 | 238,473 | ||||||||||||
Loans and leases held-for-investment | 8,237,418 | 6,577,559 | 5,132,873 | 4,184,244 | 3,401,054 | ||||||||||||
Allowance for credit losses on loan and lease losses | (34,630) | (14,108) | (13,208) | (14,417) | (18,762) | ||||||||||||
Loans and leases held-for-investment, net | 8,202,788 | 6,563,451 | 5,119,665 | 4,169,827 | 3,382,292 | ||||||||||||
Goodwill and other intangibles, net | 63,911 | 65,854 | 67,863 | 65,358 | 67,209 | ||||||||||||
Other assets | 352,130 | 263,500 | 191,383 | 166,007 | 138,489 | ||||||||||||
Total assets | $ | 9,896,816 | $ | 7,765,810 | $ | 6,035,655 | $ | 4,777,897 | $ | 3,930,457 | |||||||
Deposits | $ | 8,489,089 | $ | 6,634,613 | $ | 5,050,461 | $ | 3,987,611 | $ | 3,286,779 | |||||||
Borrowings, net | 400,493 | 355,000 | 404,166 | 335,913 | 239,510 | ||||||||||||
Other liabilities | 250,089 | 154,916 | 101,674 | 65,302 | 52,361 | ||||||||||||
Total liabilities | 9,139,671 | 7,144,529 | 5,556,301 | 4,388,826 | 3,578,650 | ||||||||||||
Preferred stock | 177,143 | 116,079 | 38,468 | — | — | ||||||||||||
Common shareholders' equity | 580,002 | 505,202 | 440,886 | 389,071 | 351,807 | ||||||||||||
Total shareholders' equity | 757,145 | 621,281 | 479,354 | 389,071 | 351,807 | ||||||||||||
Total liabilities and shareholders' equity | $ | 9,896,816 | $ | 7,765,810 | $ | 6,035,655 | $ | 4,777,897 | $ | 3,930,457 | |||||||
Income statement data: | |||||||||||||||||
Interest income | $ | 217,095 | $ | 262,447 | $ | 199,786 | $ | 134,295 | $ | 98,312 | |||||||
Interest expense | 79,151 | 135,390 | 86,382 | 42,942 | 23,499 | ||||||||||||
Net interest income | 137,944 | 127,057 | 113,404 | 91,353 | 74,813 | ||||||||||||
Provision (credit) for credit losses | 19,400 | (968) | (205) | (623) | 838 | ||||||||||||
Net interest income after provision for credit losses | 118,544 | 128,025 | 113,609 | 91,976 | 73,975 | ||||||||||||
Non-interest income: | |||||||||||||||||
Investment management fees | 32,035 | 36,442 | 37,647 | 37,100 | 37,035 | ||||||||||||
Net gain (loss) on the sale and call of debt securities | 3,948 | 416 | (70) | 310 | 77 | ||||||||||||
Other non-interest income | 21,222 | 15,924 | 10,340 | 9,556 | 9,396 | ||||||||||||
Total non-interest income | 57,205 | 52,782 | 47,917 | 46,966 | 46,508 | ||||||||||||
Non-interest expense: | |||||||||||||||||
Intangible amortization expense | 1,944 | 2,009 | 1,968 | 1,851 | 1,753 | ||||||||||||
Change in fair value of acquisition earn out | — | — | (218) | — | (3,687) | ||||||||||||
Other non-interest expense | 121,159 | 110,140 | 99,407 | 89,621 | 80,728 | ||||||||||||
Non-interest expense | 123,103 | 112,149 | 101,157 | 91,472 | 78,794 | ||||||||||||
Income before tax | 52,646 | 68,658 | 60,369 | 47,470 | 41,689 | ||||||||||||
Income tax expense | 7,412 | 8,465 | 5,945 | 9,482 | 13,048 | ||||||||||||
Net income | $ | 45,234 | $ | 60,193 | $ | 54,424 | $ | 37,988 | $ | 28,641 | |||||||
Preferred stock dividends | 7,873 | 5,753 | 2,120 | — | — | ||||||||||||
Net income available to common shareholders | $ | 37,361 | $ | 54,440 | $ | 52,304 | $ | 37,988 | $ | 28,641 |
As of and for the Years Ended December 31, | |||||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Per share and share data: | |||||||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 1.32 | $ | 1.95 | $ | 1.90 | $ | 1.38 | $ | 1.04 | |||||||
Diluted | $ | 1.30 | $ | 1.89 | $ | 1.81 | $ | 1.32 | $ | 1.01 | |||||||
Book value per common share | $ | 17.78 | $ | 17.21 | $ | 15.27 | $ | 13.61 | $ | 12.38 | |||||||
Tangible book value per common share (1)
|
$ | 15.82 | $ | 14.97 | $ | 12.92 | $ | 11.32 | $ | 10.02 | |||||||
Common shares outstanding, at end of period | 32,620,150 | 29,355,986 | 28,878,674 | 28,591,101 | 28,415,654 | ||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 28,267,512 | 27,864,933 | 27,583,519 | 27,550,833 | 27,593,725 | ||||||||||||
Diluted | 28,738,468 | 28,833,335 | 28,833,396 | 28,711,322 | 28,359,152 | ||||||||||||
Performance ratios: | |||||||||||||||||
Return on average assets | 0.50 | % | 0.89 | % | 1.04 | % | 0.89 | % | 0.81 | % | |||||||
Return on average common equity | 7.15 | % | 11.47 | % | 12.57 | % | 10.30 | % | 8.48 | % | |||||||
Net interest margin (2)
|
1.58 | % | 1.97 | % | 2.26 | % | 2.25 | % | 2.23 | % | |||||||
Total revenue (1)
|
$ | 191,201 | $ | 179,423 | $ | 161,391 | $ | 138,009 | $ | 121,244 | |||||||
Pre-tax, pre-provision net revenue (1)
|
$ | 68,098 | $ | 67,274 | $ | 60,234 | $ | 46,537 | $ | 42,450 | |||||||
Bank efficiency ratio (1)
|
55.57 | % | 54.49 | % | 53.09 | % | 57.39 | % | 61.17 | % | |||||||
Non-interest expense to average assets | 1.35 | % | 1.66 | % | 1.93 | % | 2.15 | % | 2.23 | % | |||||||
Asset quality: | |||||||||||||||||
Non-performing loans | $ | 9,680 | $ | 184 | $ | 2,237 | $ | 3,183 | $ | 17,790 | |||||||
Non-performing assets | $ | 12,404 | $ | 4,434 | $ | 5,661 | $ | 6,759 | $ | 21,968 | |||||||
Other real estate owned | $ | 2,724 | $ | 4,250 | $ | 3,424 | $ | 3,576 | $ | 4,178 | |||||||
Non-performing assets to total assets | 0.13 | % | 0.06 | % | 0.09 | % | 0.14 | % | 0.56 | % | |||||||
Non-performing loans to total loans | 0.12 | % | — | % | 0.04 | % | 0.08 | % | 0.52 | % | |||||||
Allowance for credit losses on loans and leases to loans | 0.42 | % | 0.21 | % | 0.26 | % | 0.34 | % | 0.55 | % | |||||||
Allowance for credit losses on loans and leases to non-performing loans | 357.75 | % | 7,667.39 | % | 590.43 | % | 452.94 | % | 105.46 | % | |||||||
Net charge-offs (recoveries) | $ | (279) | $ | (1,868) | $ | 1,004 | $ | 3,722 | $ | 50 | |||||||
Net charge-offs (recoveries) to average total loans | — | % | (0.03) | % | 0.02 | % | 0.10 | % | — | % | |||||||
Capital ratios: | |||||||||||||||||
Average equity to average assets | 7.00 | % | 8.29 | % | 8.49 | % | 8.65 | % | 9.56 | % | |||||||
Tier 1 leverage ratio | 7.29 | % | 7.54 | % | 7.28 | % | 7.25 | % | 7.90 | % | |||||||
Common equity tier 1 risk-based capital ratio | 8.99 | % | 9.32 | % | 9.64 | % | 11.14 | % | 11.49 | % | |||||||
Tier 1 risk-based capital ratio | 11.99 | % | 11.75 | % | 10.58 | % | 11.14 | % | 11.49 | % | |||||||
Total risk-based capital ratio | 14.12 | % | 12.05 | % | 10.86 | % | 11.72 | % | 12.66 | % | |||||||
Bank tier 1 leverage ratio | 7.83 | % | 7.22 | % | 7.49 | % | 7.55 | % | 8.04 | % | |||||||
Bank common equity tier 1 risk-based capital ratio | 12.89 | % | 11.26 | % | 10.90 | % | 11.62 | % | 11.75 | % | |||||||
Bank tier 1 risk-based capital ratio | 12.89 | % | 11.26 | % | 10.90 | % | 11.62 | % | 11.75 | % | |||||||
Bank total risk-based capital ratio | 13.41 | % | 11.57 | % | 11.25 | % | 11.99 | % | 12.39 | % | |||||||
Investment Management Segment: | |||||||||||||||||
Assets under management | $ | 10,263,000 | $ | 9,701,000 | $ | 9,189,000 | $ | 8,309,000 | $ | 8,055,000 | |||||||
EBITDA (1)
|
$ | 5,473 | $ | 5,824 | $ | 6,900 | $ | 7,421 | $ | 13,208 | |||||||
December 31, | |||||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Tangible common equity and tangible book value per common share: | |||||||||||||||||
Common shareholders' equity | $ | 580,002 | $ | 505,202 | $ | 440,886 | $ | 389,071 | $ | 351,807 | |||||||
Less: goodwill and intangible assets | 63,911 | 65,854 | 67,863 | 65,358 | 67,209 | ||||||||||||
Tangible common equity (numerator) | $ | 516,091 | $ | 439,348 | $ | 373,023 | $ | 323,713 | $ | 284,598 | |||||||
Common shares outstanding (denominator) | 32,620,150 | 29,355,986 | 28,878,674 | 28,591,101 | 28,415,654 | ||||||||||||
Tangible book value per common share | $ | 15.82 | $ | 14.97 | $ | 12.92 | $ | 11.32 | $ | 10.02 |
(Dollars in thousands) | December 31, | ||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||
Tangible common equity ratio excluding private banking channel loans: | |||||||||||||||||
Common shareholders' equity | $ | 580,002 | $ | 505,202 | $ | 440,886 | $ | 389,071 | $ | 351,807 | |||||||
Less: goodwill and intangible assets | 63,911 | 65,854 | 67,863 | 65,358 | 67,209 | ||||||||||||
Tangible common equity (numerator) | $ | 516,091 | $ | 439,348 | $ | 373,023 | $ | 323,713 | $ | 284,598 | |||||||
Total assets | 9,896,816 | 7,765,810 | 6,035,655 | 4,777,897 | 3,930,457 | ||||||||||||
Less: goodwill and intangible assets | 63,911 | 65,854 | 67,863 | 65,358 | 67,209 | ||||||||||||
Tangible assets | 9,832,905 | 7,699,956 | 5,967,792 | 4,712,539 | 3,863,248 | ||||||||||||
Tangible common equity ratio | 5.25 | % | 5.71 | % | 6.25 | % | 6.87 | % | 7.37 | % | |||||||
Less: private banking loans | 4,807,800 | 3,695,402 | 2,869,543 | 2,265,737 | 1,735,928 | ||||||||||||
Tangible assets excluding private banking loans (denominator) | 5,025,105 | 4,004,554 | 3,098,249 | 2,446,802 | 2,127,320 | ||||||||||||
Tangible common equity ratio excluding private banking loans | 10.27 | % | 10.97 | % | 12.04 | % | 13.23 | % | 13.38 | % |
Years Ended December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Total revenue and pre-tax, pre-provision net revenue: | |||||||||||||||||
Net interest income | $ | 137,944 | $ | 127,057 | $ | 113,404 | $ | 91,353 | $ | 74,813 | |||||||
Total non-interest income | 57,205 | 52,782 | 47,917 | 46,966 | 46,508 | ||||||||||||
Less: net gain (loss) on the sale and call of debt securities | 3,948 | 416 | (70) | 310 | 77 | ||||||||||||
Total revenue | $ | 191,201 | $ | 179,423 | $ | 161,391 | $ | 138,009 | $ | 121,244 | |||||||
Less: total non-interest expense | 123,103 | 112,149 | 101,157 | 91,472 | 78,794 | ||||||||||||
Pre-tax, pre-provision net revenue | $ | 68,098 | $ | 67,274 | $ | 60,234 | $ | 46,537 | $ | 42,450 | |||||||
Years Ended December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Bank total revenue: | |||||||||||||||||
Net interest income | $ | 141,756 | $ | 127,996 | $ | 115,455 | $ | 93,380 | $ | 76,727 | |||||||
Total non-interest income | 25,112 | 15,467 | 11,042 | 9,864 | 9,470 | ||||||||||||
Less: net gain (loss) on the sale and call of debt securities | 3,948 | 416 | (70) | 310 | 77 | ||||||||||||
Bank total revenue | $ | 162,920 | $ | 143,047 | $ | 126,567 | $ | 102,934 | $ | 86,120 | |||||||
Bank efficiency ratio: | |||||||||||||||||
Total non-interest expense (numerator) | $ | 90,541 | $ | 77,945 | $ | 67,190 | $ | 59,073 | $ | 52,676 | |||||||
Total revenue (denominator) | $ | 162,920 | $ | 143,047 | $ | 126,567 | $ | 102,934 | $ | 86,120 | |||||||
Bank efficiency ratio | 55.57 | % | 54.49 | % | 53.09 | % | 57.39 | % | 61.17 | % |
Years Ended December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Investment Management EBITDA: | |||||||||||||||||
Net income | $ | 2,798 | $ | 2,433 | $ | 3,851 | $ | 4,551 | $ | 6,933 | |||||||
Income tax expense | 308 | 918 | 579 | 522 | 4,357 | ||||||||||||
Depreciation expense | 423 | 465 | 502 | 497 | 165 | ||||||||||||
Intangible amortization expense | 1,944 | 2,009 | 1,968 | 1,851 | 1,753 | ||||||||||||
EBITDA | $ | 5,473 | $ | 5,824 | $ | 6,900 | $ | 7,421 | $ | 13,208 | |||||||
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Interest income | $ | 217,095 | $ | 262,447 | $ | 199,786 | |||||
Fully taxable equivalent adjustment | 60 | 101 | 112 | ||||||||
Interest income adjusted | 217,155 | 262,548 | 199,898 | ||||||||
Less: interest expense | 79,151 | 135,390 | 86,382 | ||||||||
Net interest income adjusted | $ | 138,004 | $ | 127,158 | $ | 113,516 | |||||
Yield on earning assets (1)
|
2.49 | % | 4.06 | % | 3.98 | % | |||||
Cost of interest-bearing liabilities | 1.01 | % | 2.34 | % | 1.93 | % | |||||
Net interest spread (1)
|
1.48 | % | 1.72 | % | 2.05 | % | |||||
Net interest margin (1)
|
1.58 | % | 1.97 | % | 2.26 | % | |||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) |
Average
Balance |
Interest Income (1)/
Expense
|
Average
Yield/ Rate |
Average
Balance |
Interest Income (1)/
Expense
|
Average
Yield/ Rate |
Average
Balance |
Interest Income (1)/
Expense
|
Average
Yield/ Rate |
||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Interest-earning deposits | $ | 775,276 | $ | 2,199 | 0.28 | % | $ | 313,413 | $ | 6,628 | 2.11 | % | $ | 188,921 | $ | 3,598 | 1.90 | % | |||||||||||||||||
Federal funds sold | 8,076 | 25 | 0.31 | % | 8,803 | 167 | 1.90 | % | 8,315 | 156 | 1.88 | % | |||||||||||||||||||||||
Debt securities available-for-sale | 438,293 | 6,550 | 1.49 | % | 250,064 | 8,119 | 3.25 | % | 205,652 | 6,195 | 3.01 | % | |||||||||||||||||||||||
Debt securities held-to-maturity, net | 246,054 | 6,439 | 2.62 | % | 193,443 | 6,921 | 3.58 | % | 90,895 | 3,399 | 3.74 | % | |||||||||||||||||||||||
Debt securities trading | 592 | 5 | 0.84 | % | — | — | — | % | — | — | — | % | |||||||||||||||||||||||
Equity securities | — | — | — | % | 6,733 | 115 | 1.71 | % | 10,517 | 277 | 2.63 | % | |||||||||||||||||||||||
FHLB stock | 14,994 | 1,098 | 7.32 | % | 18,043 | 1,270 | 7.04 | % | 15,136 | 924 | 6.10 | % | |||||||||||||||||||||||
Total loans and leases | 7,255,035 | 200,839 | 2.77 | % | 5,669,507 | 239,328 | 4.22 | % | 4,500,117 | 185,349 | 4.12 | % | |||||||||||||||||||||||
Total interest-earning assets | 8,738,320 | 217,155 | 2.49 | % | 6,460,006 | 262,548 | 4.06 | % | 5,019,553 | 199,898 | 3.98 | % | |||||||||||||||||||||||
Other assets | 387,080 | 281,171 | 221,467 | ||||||||||||||||||||||||||||||||
Total assets | $ | 9,125,400 | $ | 6,741,177 | $ | 5,241,020 | |||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing checking accounts | $ | 2,407,087 | $ | 14,493 | 0.60 | % | $ | 1,058,064 | $ | 21,480 | 2.03 | % | $ | 612,921 | $ | 11,440 | 1.87 | % | |||||||||||||||||
Money market deposit accounts | 3,812,942 | 35,095 | 0.92 | % | 2,943,541 | 69,336 | 2.36 | % | 2,429,203 | 45,106 | 1.86 | % | |||||||||||||||||||||||
Certificates of deposit | 1,223,631 | 19,614 | 1.60 | % | 1,371,038 | 34,776 | 2.54 | % | 1,071,556 | 21,947 | 2.05 | % | |||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||||
FHLB borrowings | 330,314 | 6,095 | 1.85 | % | 394,480 | 8,639 | 2.19 | % | 325,356 | 5,555 | 1.71 | % | |||||||||||||||||||||||
Line of credit borrowings | 6,243 | 261 | 4.18 | % | 1,234 | 68 | 5.51 | % | 2,568 | 119 | 4.63 | % | |||||||||||||||||||||||
Subordinated notes payable, net | 59,078 | 3,593 | 6.08 | % | 17,335 | 1,091 | 6.29 | % | 34,807 | 2,215 | 6.36 | % | |||||||||||||||||||||||
Total interest-bearing liabilities | 7,839,295 | 79,151 | 1.01 | % | 5,785,692 | 135,390 | 2.34 | % | 4,476,411 | 86,382 | 1.93 | % | |||||||||||||||||||||||
Noninterest-bearing deposits | 408,313 | 267,846 | 244,090 | ||||||||||||||||||||||||||||||||
Other liabilities | 239,137 | 128,618 | 75,473 | ||||||||||||||||||||||||||||||||
Shareholders' equity | 638,655 | 559,021 | 445,046 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 9,125,400 | $ | 6,741,177 | $ | 5,241,020 | |||||||||||||||||||||||||||||
Net interest income (1)
|
$ | 138,004 | $ | 127,158 | $ | 113,516 | |||||||||||||||||||||||||||||
Net interest spread | 1.48 | % | 1.72 | % | 2.05 | % | |||||||||||||||||||||||||||||
Net interest margin (1)
|
1.58 | % | 1.97 | % | 2.26 | % | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2020 over 2019 | |||||||||||||||||
(Dollars in thousands) | Yield/Rate | Volume |
Change (1)
|
||||||||||||||
Increase (decrease) in: | |||||||||||||||||
Interest income: | |||||||||||||||||
Interest-earning deposits | $ | (8,891) | $ | 4,462 | $ | (4,429) | |||||||||||
Federal funds sold | (129) | (13) | (142) | ||||||||||||||
Debt securities available-for-sale | (5,781) | 4,212 | (1,569) | ||||||||||||||
Debt securities held-to-maturity | (2,123) | 1,641 | (482) | ||||||||||||||
Debt securities trading | — | 5 | 5 | ||||||||||||||
Equity securities | — | (115) | (115) | ||||||||||||||
FHLB stock | 47 | (219) | (172) | ||||||||||||||
Total loans and leases | (95,516) | 57,027 | (38,489) | ||||||||||||||
Total increase (decrease) in interest income | (112,393) | 67,000 | (45,393) | ||||||||||||||
Interest expense: | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Interest-bearing checking accounts | (22,029) | 15,042 | (6,987) | ||||||||||||||
Money market deposit accounts | (50,751) | 16,510 | (34,241) | ||||||||||||||
Certificates of deposit | (11,747) | (3,415) | (15,162) | ||||||||||||||
Borrowings: | |||||||||||||||||
FHLB borrowings | (1,260) | (1,284) | (2,544) | ||||||||||||||
Line of credit borrowings | (20) | 213 | 193 | ||||||||||||||
Subordinated notes payable, net | (41) | 2,543 | 2,502 | ||||||||||||||
Total increase (decrease) in interest expense | (85,848) | 29,609 | (56,239) | ||||||||||||||
Total increase (decrease) in net interest income | $ | (26,545) | $ | 37,391 | $ | 10,846 |
Years Ended December 31, | |||||||||||||||||
2019 over 2018 | |||||||||||||||||
(Dollars in thousands) | Yield/Rate | Volume |
Change (1)
|
||||||||||||||
Increase (decrease) in: | |||||||||||||||||
Interest income: | |||||||||||||||||
Interest-earning deposits | $ | 435 | $ | 2,595 | $ | 3,030 | |||||||||||
Federal funds sold | 2 | 9 | 11 | ||||||||||||||
Debt securities available-for-sale | 510 | 1,414 | 1,924 | ||||||||||||||
Debt securities held-to-maturity | (153) | 3,675 | 3,522 | ||||||||||||||
Equity securities | (80) | (82) | (162) | ||||||||||||||
FHLB stock | 153 | 193 | 346 | ||||||||||||||
Total loans and leases | 4,720 | 49,259 | 53,979 | ||||||||||||||
Total increase in interest income | 5,587 | 57,063 | 62,650 | ||||||||||||||
Interest expense: | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Interest-bearing checking accounts | 1,082 | 8,958 | 10,040 | ||||||||||||||
Money market deposit accounts | 13,549 | 10,681 | 24,230 | ||||||||||||||
Certificates of deposit | 5,906 | 6,923 | 12,829 | ||||||||||||||
Borrowings: | |||||||||||||||||
FHLB borrowings | 1,761 | 1,323 | 3,084 | ||||||||||||||
Line of credit borrowings | 19 | (70) | (51) | ||||||||||||||
Subordinated notes payable, net | (24) | (1,100) | (1,124) | ||||||||||||||
Total increase in interest expense | 22,293 | 26,715 | 49,008 | ||||||||||||||
Total increase (decrease) in net interest income | $ | (16,706) | $ | 30,348 | $ | 13,642 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||||||||||||
Investment | Parent | Investment | Parent | ||||||||||||||||||||||||||
(Dollars in thousands) | Bank | Management | and Other | Consolidated | Bank | Management | and Other | Consolidated | |||||||||||||||||||||
Investment management fees | $ | — | $ | 32,727 | $ | (692) | $ | 32,035 | $ | — | $ | 36,889 | $ | (447) | $ | 36,442 | |||||||||||||
Service charges on deposits | 1,072 | — | — | 1,072 | 559 | — | — | 559 | |||||||||||||||||||||
Net gain on the sale and call of debt securities | 3,948 | — | — | 3,948 | 416 | — | — | 416 | |||||||||||||||||||||
Swap fees | 16,274 | — | — | 16,274 | 11,029 | — | — | 11,029 | |||||||||||||||||||||
Commitment and other loan fees | 1,715 | — | — | 1,715 | 1,788 | — | — | 1,788 | |||||||||||||||||||||
Bank owned life insurance income | 1,742 | — | — | 1,742 | 1,736 | — | — | 1,736 | |||||||||||||||||||||
Other income (loss) | 361 | 58 | — | 419 | (61) | 31 | 842 | 812 | |||||||||||||||||||||
Total non-interest income | $ | 25,112 | $ | 32,785 | $ | (692) | $ | 57,205 | $ | 15,467 | $ | 36,920 | $ | 395 | $ | 52,782 |
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||||||||||||||||||||
Investment | Parent | Investment | Parent | ||||||||||||||||||||||||||
(Dollars in thousands) | Bank | Management | and Other | Consolidated | Bank | Management | and Other | Consolidated | |||||||||||||||||||||
Investment management fees | $ | — | $ | 36,889 | $ | (447) | $ | 36,442 | $ | — | $ | 37,939 | $ | (292) | $ | 37,647 | |||||||||||||
Service charges on deposits | 559 | — | — | 559 | 570 | — | — | 570 | |||||||||||||||||||||
Net gain on the sale and call of debt securities | 416 | — | — | 416 | (70) | — | — | (70) | |||||||||||||||||||||
Swap fees | 11,029 | — | — | 11,029 | 7,311 | — | — | 7,311 | |||||||||||||||||||||
Commitment and other loan fees | 1,788 | — | — | 1,788 | 1,411 | — | — | 1,411 | |||||||||||||||||||||
Bank owned life insurance income | 1,736 | — | — | 1,736 | 1,716 | — | — | 1,716 | |||||||||||||||||||||
Other income (loss) | (61) | 31 | 842 | 812 | 104 | 1 | (773) | (668) | |||||||||||||||||||||
Total non-interest income | $ | 15,467 | $ | 36,920 | $ | 395 | $ | 52,782 | $ | 11,042 | $ | 37,940 | $ | (1,065) | $ | 47,917 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||||||||||||
Investment | Parent | Investment | Parent | ||||||||||||||||||||||||||
(Dollars in thousands) | Bank | Management | and Other | Consolidated | Bank | Management | and Other | Consolidated | |||||||||||||||||||||
Compensation and employee benefits | $ | 50,240 | $ | 19,738 | $ | 1,219 | $ | 71,197 | $ | 46,841 | $ | 22,335 | $ | — | $ | 69,176 | |||||||||||||
Premises and equipment costs | 4,318 | 1,557 | — | 5,875 | 3,911 | 1,547 | — | 5,458 | |||||||||||||||||||||
Professional fees | 4,773 | 829 | 599 | 6,201 | 5,170 | 1,159 | (141) | 6,188 | |||||||||||||||||||||
FDIC insurance expense | 9,680 | — | — | 9,680 | 5,292 | — | — | 5,292 | |||||||||||||||||||||
General insurance expense | 866 | 276 | — | 1,142 | 825 | 272 | — | 1,097 | |||||||||||||||||||||
State capital shares tax | 1,720 | — | — | 1,720 | 420 | — | — | 420 | |||||||||||||||||||||
Travel and entertainment expense | 2,093 | 291 | 39 | 2,423 | 3,481 | 1,139 | — | 4,620 | |||||||||||||||||||||
Technology and data services | 7,830 | 2,973 | — | 10,803 | 5,539 | 2,981 | — | 8,520 | |||||||||||||||||||||
Intangible amortization expense | — | 1,944 | — | 1,944 | — | 2,009 | — | 2,009 | |||||||||||||||||||||
Marketing and advertising | 1,210 | 1,192 | — | 2,402 | 1,461 | 801 | 1 | 2,263 | |||||||||||||||||||||
Other operating expenses (1)
|
7,811 | 879 | 1,026 | 9,716 | 5,005 | 1,326 | 775 | 7,106 | |||||||||||||||||||||
Total non-interest expense | $ | 90,541 | $ | 29,679 | $ | 2,883 | $ | 123,103 | $ | 77,945 | $ | 33,569 | $ | 635 | $ | 112,149 | |||||||||||||
Full-time equivalent employees (2)
|
255 | 53 | — | 308 | 219 | 57 | — | 276 | |||||||||||||||||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||||||||||||||||||||
Investment | Parent | Investment | Parent | ||||||||||||||||||||||||||
(Dollars in thousands) | Bank | Management | and Other | Consolidated | Bank | Management | and Other | Consolidated | |||||||||||||||||||||
Compensation and employee benefits | $ | 46,841 | $ | 22,335 | $ | — | $ | 69,176 | $ | 41,226 | $ | 23,545 | $ | — | $ | 64,771 | |||||||||||||
Premises and equipment costs | 3,911 | 1,547 | — | 5,458 | 3,483 | 1,384 | — | 4,867 | |||||||||||||||||||||
Professional fees | 5,170 | 1,159 | (141) | 6,188 | 3,642 | 1,058 | 29 | 4,729 | |||||||||||||||||||||
FDIC insurance expense | 5,292 | — | — | 5,292 | 4,543 | — | — | 4,543 | |||||||||||||||||||||
General insurance expense | 825 | 272 | — | 1,097 | 762 | 268 | — | 1,030 | |||||||||||||||||||||
State capital shares tax | 420 | — | — | 420 | 1,521 | — | — | 1,521 | |||||||||||||||||||||
Travel and entertainment expense | 3,481 | 1,139 | — | 4,620 | 2,864 | 952 | — | 3,816 | |||||||||||||||||||||
Technology and data services | 5,539 | 2,981 | — | 8,520 | 4,347 | 2,407 | — | 6,754 | |||||||||||||||||||||
Intangible amortization expense | — | 2,009 | — | 2,009 | — | 1,968 | — | 1,968 | |||||||||||||||||||||
Change in fair value of acquisition earn out | — | — | — | — | — | (218) | — | (218) | |||||||||||||||||||||
Marketing and advertising | 1,461 | 801 | 1 | 2,263 | 1,040 | 642 | 1,682 | ||||||||||||||||||||||
Other operating expenses (1)
|
5,005 | 1,326 | 775 | 7,106 | 3,762 | 1,504 | 428 | 5,694 | |||||||||||||||||||||
Total non-interest expense | $ | 77,945 | $ | 33,569 | $ | 635 | $ | 112,149 | $ | 67,190 | $ | 33,510 | $ | 457 | $ | 101,157 | |||||||||||||
Full-time equivalent employees (2)
|
219 | 57 | — | 276 | 189 | 68 | — | 257 | |||||||||||||||||||||
December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Private banking loans | $ | 4,807,800 | $ | 3,695,402 | $ | 2,869,543 | $ | 2,265,737 | $ | 1,735,928 | |||||||
Middle-market banking loans: | |||||||||||||||||
Commercial and industrial | 1,274,152 | 1,085,709 | 785,320 | 667,684 | 587,423 | ||||||||||||
Commercial real estate | 2,155,466 | 1,796,448 | 1,478,010 | 1,250,823 | 1,077,703 | ||||||||||||
Total middle-market banking loans | 3,429,618 | 2,882,157 | 2,263,330 | 1,918,507 | 1,665,126 | ||||||||||||
Loans and leases held-for-investment | $ | 8,237,418 | $ | 6,577,559 | $ | 5,132,873 | $ | 4,184,244 | $ | 3,401,054 |
December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Private banking loans: | |||||||||||
Secured by cash, marketable securities and/or cash value life insurance
|
$ | 4,738,594 | $ | 3,599,198 | $ | 2,774,800 | |||||
Secured by real estate | 45,014 | 62,782 | 69,766 | ||||||||
Other | 24,192 | 33,422 | 24,977 | ||||||||
Total private banking loans | $ | 4,807,800 | $ | 3,695,402 | $ | 2,869,543 |
December 31, 2020 | |||||||||||||||||
(Dollars in thousands) | Due on Demand |
One Year
or Less
|
One to
Five Years |
Greater Than
Five Years |
Total | ||||||||||||
Maturity: | |||||||||||||||||
Private banking | $ | 4,551,754 | $ | 43,584 | $ | 109,749 | $ | 102,713 | $ | 4,807,800 | |||||||
Commercial and industrial | 6,547 | 397,325 | 679,277 | 191,003 | 1,274,152 | ||||||||||||
Commercial real estate | — | 377,366 | 830,745 | 947,355 | 2,155,466 | ||||||||||||
Loans and leases held-for-investment | $ | 4,558,301 | $ | 818,275 | $ | 1,619,771 | $ | 1,241,071 | $ | 8,237,418 | |||||||
Interest rate sensitivity: | |||||||||||||||||
Fixed interest rates | $ | 53,785 | $ | 33,301 | $ | 220,486 | $ | 200,458 | $ | 508,030 | |||||||
Floating or adjustable interest rates | 4,504,516 | 784,974 | 1,399,285 | 1,040,613 | 7,729,388 | ||||||||||||
Loans and leases held-for-investment | $ | 4,558,301 | $ | 818,275 | $ | 1,619,771 | $ | 1,241,071 | $ | 8,237,418 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
(Dollars in thousands) | Number of Relationships |
Commitment
(based on availability) |
Outstanding Balance | Number of Relationships |
Commitment
(based on availability) |
Outstanding Balance | |||||||||||||||||
Large credit relationships: | |||||||||||||||||||||||
>$25 million | 23 | $ | 930,061 | $ | 664,614 | 17 | $ | 645,608 | $ | 442,437 | |||||||||||||
>$20 million to $25 million | 17 | $ | 381,275 | $ | 236,085 | 12 | $ | 273,908 | $ | 185,651 | |||||||||||||
>$15 million to $20 million | 46 | $ | 814,098 | $ | 505,452 | 38 | $ | 679,411 | $ | 423,893 | |||||||||||||
>$10 million to $15 million | 105 | $ | 1,302,010 | $ | 958,840 | 93 | $ | 1,138,966 | $ | 803,301 |
December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
General reserves | $ | 32,642 | $ | 13,937 | $ | 12,771 | $ | 11,910 | $ | 11,823 | |||||||
Specific reserves | 1,988 | 171 | 437 | 2,507 | 6,939 | ||||||||||||
Total allowance for credit losses on loans and leases | $ | 34,630 | $ | 14,108 | $ | 13,208 | $ | 14,417 | $ | 18,762 | |||||||
Allowance for credit losses on loans and leases to loans and leases | 0.42 | % | 0.21 | % | 0.26 | % | 0.34 | % | 0.55 | % |
December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Reserve |
Percent of
Loans |
Reserve |
Percent of
Loans |
Reserve |
Percent of
Loans |
Reserve |
Percent of
Loans |
Reserve |
Percent of
Loans |
|||||||||||||||||||||||||||||||||||||||||||||||||
Private banking | $ | 2,047 | 58.4 | % | $ | 1,973 | 56.2 | % | $ | 1,942 | 55.9 | % | $ | 1,577 | 54.1 | % | $ | 1,424 | 51.0 | % | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 5,254 | 15.5 | % | 5,262 | 16.5 | % | 5,764 | 15.3 | % | 8,043 | 16.0 | % | 12,326 | 17.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 27,329 | 26.1 | % | 6,873 | 27.3 | % | 5,502 | 28.8 | % | 4,797 | 29.9 | % | 5,012 | 31.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses on loans and leases | $ | 34,630 | 100.0 | % | $ | 14,108 | 100.0 | % | $ | 13,208 | 100.0 | % | $ | 14,417 | 100.0 | % | $ | 18,762 | 100.0 | % |
Years Ended December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Beginning balance | $ | 14,108 | $ | 13,208 | $ | 14,417 | $ | 18,762 | $ | 17,974 | |||||||
Impact of adopting CECL | 942 | — | — | — | — | ||||||||||||
Charge-offs: | |||||||||||||||||
Private banking | (171) | (112) | — | — | — | ||||||||||||
Commercial and industrial | — | — | (2,068) | (4,302) | (4,258) | ||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||
Total charge-offs | (171) | (112) | (2,068) | (4,302) | (4,258) | ||||||||||||
Recoveries: | |||||||||||||||||
Private banking | — | — | — | — | — | ||||||||||||
Commercial and industrial | 450 | 1,980 | 1,064 | 575 | 797 | ||||||||||||
Commercial real estate | — | — | — | 5 | 3,411 | ||||||||||||
Total recoveries | 450 | 1,980 | 1,064 | 580 | 4,208 | ||||||||||||
Net recoveries (charge-offs) | 279 | 1,868 | (1,004) | (3,722) | (50) | ||||||||||||
Provision (credit) for credit losses on loans and leases | 19,301 | (968) | (205) | (623) | 838 | ||||||||||||
Ending balance | $ | 34,630 | $ | 14,108 | $ | 13,208 | $ | 14,417 | $ | 18,762 | |||||||
Net loan charge-offs (recoveries) to average total loans and leases | — | % | (0.03) | % | 0.02 | % | 0.10 | % | — | % | |||||||
Provision (credit) for credit losses on loans and leases to average total loans and leases | 0.27 | % | (0.02) | % | — | % | (0.02) | % | 0.03 | % |
Commercial and Industrial | |||||||||||
(Dollars in thousands) |
Balances at
12/31/20 |
Deferrals at 12/31/20 |
Deferrals as % of Total
Deferrals |
||||||||
Manufacturing | $ | 117,393 | $ | 1,969 | 2 | % | |||||
Mining | 22,651 | 1,795 | 2 | % | |||||||
Commercial Real Estate | |||||||||||
(Dollars in thousands) |
Balances at
12/31/20 |
Deferrals at 12/31/20 |
Deferrals as % of Total
Deferrals |
||||||||
Multifamily | $ | 625,418 | $ | 11,966 | 14 | % | |||||
Office | 470,226 | 18,701 | 22 | % | |||||||
Retail | 330,721 | 12,164 | 14 | % | |||||||
Industrial | 314,435 | 6,897 | 8 | % | |||||||
Developed Land | 55,006 | 4,453 | 5 | % | |||||||
Self Storage | 47,926 | 7,891 | 9 | % | |||||||
Hotel | 45,717 | 17,889 | 21 | % |
December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Non-performing loans: | |||||||||||||||||
Private banking | $ | — | $ | 184 | $ | 2,237 | $ | 368 | $ | 517 | |||||||
Commercial and industrial | 458 | — | — | 2,815 | 17,273 | ||||||||||||
Commercial real estate | 9,222 | — | — | — | — | ||||||||||||
Total non-performing loans | 9,680 | 184 | 2,237 | 3,183 | 17,790 | ||||||||||||
Other real estate owned | 2,724 | 4,250 | 3,424 | 3,576 | 4,178 | ||||||||||||
Total non-performing assets | $ | 12,404 | $ | 4,434 | $ | 5,661 | $ | 6,759 | $ | 21,968 | |||||||
Non-performing troubled debt restructured loans | $ | 2,926 | $ | 171 | $ | 237 | $ | 3,183 | $ | 17,273 | |||||||
Performing troubled debt restructured loans | $ | — | $ | — | $ | — | $ | 3,371 | $ | 471 | |||||||
Non-performing loans to total loans | 0.12 | % | — | % | 0.04 | % | 0.08 | % | 0.52 | % | |||||||
Allowance for credit losses on loans and leases to non-performing loans | 357.75 | % | 7,667.39 | % | 590.43 | % | 452.94 | % | 105.46 | % | |||||||
Non-performing assets to total assets | 0.13 | % | 0.06 | % | 0.09 | % | 0.14 | % | 0.56 | % |
December 31, 2020 | |||||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Allowance for Credit Losses (1)
|
Estimated
Fair Value |
||||||||||||
Debt securities available-for-sale: | |||||||||||||||||
Corporate bonds | $ | 157,452 | $ | 1,538 | $ | 526 | $ | — | $ | 158,464 | |||||||
Trust preferred securities | 18,228 | 57 | 198 | — | 18,087 | ||||||||||||
Agency collateralized mortgage obligations | 22,058 | 36 | 5 | — | 22,089 | ||||||||||||
Agency mortgage-backed securities | 406,741 | 3,595 | 209 | — | 410,127 | ||||||||||||
Agency debentures | 8,013 | 790 | — | — | 8,803 | ||||||||||||
Total debt securities available-for-sale | $ | 612,492 | $ | 6,016 | $ | 938 | $ | — | $ | 617,570 |
December 31, 2020 | ||||||||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
Allowance for Credit Losses (1)
|
|||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||
Corporate bonds | $ | 28,672 | $ | 566 | $ | 1 | $ | 29,237 | $ | 79 | ||||||||||
Agency debentures | 48,130 | 1,051 | — | 49,181 | — | |||||||||||||||
Municipal bonds | 6,577 | 45 | — | 6,622 | — | |||||||||||||||
Residential mortgage-backed securities | 124,152 | 237 | 217 | 124,172 | 70 | |||||||||||||||
Agency mortgage-backed securities | 4,309 | 778 | — | 5,087 | — | |||||||||||||||
Total debt securities held-to-maturity | $ | 211,840 | $ | 2,677 | $ | 218 | $ | 214,299 | $ | 149 |
December 31, 2019 | ||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||||
Debt securities available-for-sale: | ||||||||||||||
Corporate bonds | $ | 172,704 | $ | 2,821 | $ | 107 | $ | 175,418 | ||||||
Trust preferred securities | 18,092 | 216 | 48 | 18,260 | ||||||||||
Agency collateralized mortgage obligations | 27,262 | 11 | 80 | 27,193 | ||||||||||
Agency mortgage-backed securities | 18,058 | 451 | — | 18,509 | ||||||||||
Agency debentures | 8,961 | 441 | — | 9,402 | ||||||||||
Total debt securities available-for-sale | $ | 245,077 | $ | 3,940 | $ | 235 | $ | 248,782 | ||||||
December 31, 2019 | ||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||||
Debt securities held-to-maturity: | ||||||||||||||
Corporate bonds | $ | 24,678 | $ | 619 | $ | — | $ | 25,297 | ||||||
Agency debentures | 149,912 | 628 | 935 | 149,605 | ||||||||||
Municipal bonds | 17,094 | 144 | — | 17,238 | ||||||||||
Agency mortgage-backed securities | 4,360 | 255 | — | 4,615 | ||||||||||
Total debt securities held-to-maturity | $ | 196,044 | $ | 1,646 | $ | 935 | $ | 196,755 | ||||||
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 | ||||||
December 31, 2018 | ||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||||
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 debentures | 4,409 | — | 27 | 4,382 | ||||||||||
Total debt securities held-to-maturity | $ | 196,131 | $ | 836 | $ | 144 | $ | 196,823 |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 19,393 | 1.98 | % | $ | 69,922 | 1.06 | % | $ | 69,149 | 1.56 | % | $ | — | — | % | $ | 158,464 | 1.39 | % | ||||||||||||||||||||||||
Trust preferred securities | — | — | % | — | — | % | 9,476 | 2.04 | % | 8,611 | 1.95 | % | 18,087 | 2.00 | % | |||||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 372 | 1.55 | % | — | — | % | — | — | % | 21,717 | 0.56 | % | 22,089 | 0.58 | % | |||||||||||||||||||||||||||||
Agency mortgage-backed securities | — | — | % | — | — | % | 17,140 | 1.08 | % | 392,987 | 1.63 | % | 410,127 | 1.60 | % | |||||||||||||||||||||||||||||
Agency debentures | — | — | % | — | — | % | — | — | % | 8,803 | 3.01 | % | 8,803 | 3.01 | % | |||||||||||||||||||||||||||||
Total debt securities available-for-sale | 19,765 | 69,922 | 95,765 | 432,118 | 617,570 | |||||||||||||||||||||||||||||||||||||||
Weighted average yield | 1.97 | % | 1.06 | % | 1.52 | % | 1.60 | % | 1.54 | % | ||||||||||||||||||||||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | — | — | % | 9,683 | 5.03 | % | 19,554 | 5.11 | % | — | — | % | 29,237 | 5.09 | % | |||||||||||||||||||||||||||||
Agency debentures | — | — | % | — | — | % | 40,116 | 1.75 | % | 9,065 | 3.09 | % | 49,181 | 1.98 | % | |||||||||||||||||||||||||||||
Municipal bonds | 2,205 | 2.05 | % | 3,890 | 2.26 | % | 527 | 2.71 | % | — | — | % | 6,622 | 2.23 | % | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | — | % | — | — | % | — | — | % | 124,172 | 2.25 | % | 124,172 | 2.25 | % | |||||||||||||||||||||||||||||
Agency mortgage-backed securities | — | — | % | — | — | % | — | — | % | 5,087 | 3.59 | % | 5,087 | 3.59 | % | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 2,205 | 13,573 | 60,197 | 138,324 | 214,299 | |||||||||||||||||||||||||||||||||||||||
Weighted average yield | 2.05 | % | 4.23 | % | 2.84 | % | 2.34 | % | 2.60 | % | ||||||||||||||||||||||||||||||||||
Total debt securities | $ | 21,970 | $ | 83,495 | $ | 155,962 | $ | 570,442 | $ | 831,869 | ||||||||||||||||||||||||||||||||||
Weighted average yield | 1.98 | % | 1.57 | % | 2.03 | % | 1.78 | % | 1.81 | % |
Years Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
(Dollars in thousands) | Average Amount | Average Rate Paid | Average Amount | Average Rate Paid | Average Amount | Average Rate Paid | ||||||||||||||||||||
Interest-bearing checking accounts | $ | 2,407,087 | 0.60 | % | $ | 1,058,064 | 2.03 | % | $ | 612,921 | 1.87 | % | ||||||||||||||
Money market deposit accounts | 3,812,942 | 0.92 | % | 2,943,541 | 2.36 | % | 2,429,203 | 1.86 | % | |||||||||||||||||
Certificates of deposit | 1,223,631 | 1.60 | % | 1,371,038 | 2.54 | % | 1,071,556 | 2.05 | % | |||||||||||||||||
Total average interest-bearing deposits | 7,443,660 | 0.93 | % | 5,372,643 | 2.34 | % | 4,113,680 | 1.91 | % | |||||||||||||||||
Noninterest-bearing deposits | 408,313 | — | 267,846 | — | 244,090 | — | ||||||||||||||||||||
Total average deposits | $ | 7,851,973 | 0.88 | % | $ | 5,640,489 | 2.23 | % | $ | 4,357,770 | 1.80 | % |
December 31, | |||||
(Dollars in thousands) | 2020 | ||||
Months to maturity: | |||||
Three months or less | $ | 385,615 | |||
Over three to six months | 182,664 | ||||
Over six to 12 months | 224,677 | ||||
Over 12 months | 116,531 | ||||
Total | $ | 909,487 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount |
Weighted
Average Spot Rate |
Maximum
Balance at Any Month End |
Average
Balance During Year |
Maximum
Original Term |
Amount |
Weighted
Average Spot Rate |
Maximum
Balance at Any Month End |
Average
Balance During Year |
Maximum
Original Term |
|||||||||||||||||||||||||
FHLB borrowings | $ | 300,000 | 0.35% | $ | 480,000 | $ | 330,314 | 12 months | $ | 355,000 | 1.89% | $ | 605,000 | $ | 394,480 | 12 months | |||||||||||||||||||
Line of credit borrowings | 5,000 | 4.25% | 30,000 | 6,243 | 12 months | — | —% | 4,250 | 1,234 | 12 months | |||||||||||||||||||||||||
Subordinated notes payable | 97,500 | 5.75% | 97,500 | 60,246 | 10 years | — | —% | 35,000 | 17,356 | 5 years | |||||||||||||||||||||||||
Total borrowings outstanding | $ | 402,500 | 1.71% | $ | 607,500 | $ | 396,803 | $ | 355,000 | 1.89% | $ | 644,250 | $ | 413,070 |
December 31, 2018 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount |
Weighted
Average Spot Rate |
Maximum
Balance at Any Month End |
Average
Balance During Year |
Maximum
Original Term |
||||||||||||||||||||||||||||||
FHLB borrowings | $ | 365,000 | 2.61% | $ | 565,000 | $ | 325,356 | 12 months | |||||||||||||||||||||||||||
Line of credit borrowings | 4,250 | 5.47% | 6,200 | 2,568 | 12 months | ||||||||||||||||||||||||||||||
Subordinated notes payable | 35,000 | 5.75% | 35,000 | 35,000 | 5 years | ||||||||||||||||||||||||||||||
Total borrowings outstanding | $ | 404,250 | 2.91% | $ | 606,200 | $ | 362,924 |
December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Available cash | $ | 271,090 | $ | 167,695 | $ | 97,703 | |||||
Certain unpledged investment securities | 793,658 | 400,222 | 389,010 | ||||||||
Net borrowing capacity | 704,082 | 569,132 | 476,686 | ||||||||
Total liquidity | $ | 1,768,830 | $ | 1,137,049 | $ | 963,399 |
December 31, 2020 | ||||||||||||||||||||||||||
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 | $ | 833,819 | 14.12 | % | $ | 472,267 | 8.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 789,273 | 13.41 | % | $ | 470,820 | 8.00 | % | $ | 588,525 | 10.00 | % | ||||||||||||||
Tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
Company | $ | 707,711 | 11.99 | % | $ | 354,200 | 6.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 758,658 | 12.89 | % | $ | 353,115 | 6.00 | % | $ | 470,820 | 8.00 | % | ||||||||||||||
Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
Company | $ | 530,568 | 8.99 | % | $ | 265,650 | 4.50 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 758,658 | 12.89 | % | $ | 264,836 | 4.50 | % | $ | 382,542 | 6.50 | % | ||||||||||||||
Tier 1 leverage ratio | ||||||||||||||||||||||||||
Company | $ | 707,711 | 7.29 | % | $ | 388,408 | 4.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 758,658 | 7.83 | % | $ | 387,626 | 4.00 | % | $ | 484,533 | 5.00 | % |
December 31, 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 | $ | 572,221 | 12.05 | % | $ | 379,911 | 8.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 547,532 | 11.57 | % | $ | 378,623 | 8.00 | % | $ | 473,279 | 10.00 | % | ||||||||||||||
Tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
Company | $ | 558,068 | 11.75 | % | $ | 284,933 | 6.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 532,779 | 11.26 | % | $ | 283,967 | 6.00 | % | $ | 378,623 | 8.00 | % | ||||||||||||||
Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
Company | $ | 442,385 | 9.32 | % | $ | 213,700 | 4.50 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 532,779 | 11.26 | % | $ | 212,975 | 4.50 | % | $ | 307,631 | 6.50 | % | ||||||||||||||
Tier 1 leverage ratio | ||||||||||||||||||||||||||
Company | $ | 558,068 | 7.54 | % | $ | 296,038 | 4.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 532,779 | 7.22 | % | $ | 295,277 | 4.00 | % | $ | 369,097 | 5.00 | % |
December 31, 2020 | |||||||||||||||||
(Dollars in thousands) |
One Year
or Less |
One to
Three Years |
Three to
Five Years |
Greater Than
Five Years |
Total | ||||||||||||
Transaction deposits | $ | 6,903,252 | $ | 499,805 | $ | 50,000 | $ | — | $ | 7,453,057 | |||||||
Certificates of deposit | 892,427 | 143,605 | — | — | 1,036,032 | ||||||||||||
Borrowings outstanding | 55,000 | 100,000 | 247,500 | 402,500 | |||||||||||||
Interest payments on certificates of deposit and borrowings | 22,176 | 20,781 | 11,561 | 25,228 | 79,746 | ||||||||||||
Operating leases | 3,180 | 4,877 | 3,822 | 18,643 | 30,522 | ||||||||||||
Commitments for low income housing and historic tax credits | 16,770 | 7,374 | 65 | 154 | 24,363 | ||||||||||||
Commitments for small business investment companies | 6,615 | — | — | — | 6,615 | ||||||||||||
Preferred dividends declared (1)
|
1,979 | — | — | — | 1,979 | ||||||||||||
Total contractual obligations | $ | 7,901,399 | $ | 776,442 | $ | 312,948 | $ | 44,025 | $ | 9,034,814 |
December 31, 2020 | ||||||||||||||||||||
(Dollars in thousands) | Due on Demand |
One Year
or Less
|
One to
Three Years |
Three to
Five Years |
Greater Than
Five Years |
Total | ||||||||||||||
Unused loan commitments | $ | 5,624,460 | $ | 468,665 | $ | 395,196 | $ | 148,662 | $ | 8,164 | $ | 6,645,147 | ||||||||
Standby letters of credit | 1,054 | 41,397 | 33,351 | 6,235 | — | 82,037 | ||||||||||||||
Total off-balance sheet arrangements | $ | 5,625,514 | $ | 510,062 | $ | 428,547 | $ | 154,897 | $ | 8,164 | $ | 6,727,184 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||
(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 | $ | 22,885 | 13.56 | % | $ | 45,787 | 31.65 | % | |||||||||
+200 | $ | 7,673 | 4.55 | % | $ | 30,367 | 20.99 | % | |||||||||
+100 | $ | (7,386) | (4.37) | % | $ | 15,128 | 10.46 | % | |||||||||
–100 | $ | (2,919) | (1.73) | % | $ | (16,822) | (11.63) | % | |||||||||
Economic value of equity: | |||||||||||||||||
+300 | $ | (88,848) | (12.07) | % | $ | 6,511 | 1.10 | % | |||||||||
+200 | $ | (64,260) | (8.73) | % | $ | 3,691 | 0.62 | % | |||||||||
+100 | $ | (42,314) | (5.75) | % | $ | 1,513 | 0.26 | % | |||||||||
–100 | $ | 16,700 | 2.27 | % | $ | (10,886) | (1.84) | % | |||||||||
December 31, 2020 | ||||||||||||||||||||||||||
(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 | $ | 429,639 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 429,639 | ||||||||||
Federal funds sold | 5,462 | — | — | — | — | — | — | 5,462 | ||||||||||||||||||
Total investment securities | 216,973 | 34,815 | 52,862 | 200,893 | 151,410 | 180,688 | 4,904 | 842,545 | ||||||||||||||||||
Total loans | 7,774,160 | 53,634 | 76,458 | 199,595 | 77,484 | 38,305 | 17,782 | 8,237,418 | ||||||||||||||||||
Other assets | — | — | — | — | — | — | 381,752 | 381,752 | ||||||||||||||||||
Total assets | $ | 8,426,234 | $ | 88,449 | $ | 129,320 | $ | 400,488 | $ | 228,894 | $ | 218,993 | $ | 404,438 | $ | 9,896,816 | ||||||||||
Liabilities: | ||||||||||||||||||||||||||
Transaction deposits | $ | 6,045,246 | $ | 401,580 | $ | — | $ | 499,805 | $ | 50,000 | $ | — | $ | 456,426 | $ | 7,453,057 | ||||||||||
Certificates of deposit | 451,124 | 179,165 | 262,138 | 143,605 | — | — | 1,036,032 | |||||||||||||||||||
Borrowings, net | 55,000 | — | — | 100,000 | 245,493 | — | — | 400,493 | ||||||||||||||||||
Other liabilities | — | — | — | — | — | — | 250,089 | 250,089 | ||||||||||||||||||
Total liabilities | 6,551,370 | 580,745 | 262,138 | 743,410 | 295,493 | — | 706,515 | 9,139,671 | ||||||||||||||||||
Equity | — | — | — | — | — | — | 757,145 | 757,145 | ||||||||||||||||||
Total liabilities and equity | $ | 6,551,370 | $ | 580,745 | $ | 262,138 | $ | 743,410 | $ | 295,493 | $ | — | $ | 1,463,660 | $ | 9,896,816 | ||||||||||
Interest rate sensitivity gap | $ | 1,874,864 | $ | (492,296) | $ | (132,818) | $ | (342,922) | $ | (66,599) | $ | 218,993 | $ | (1,059,222) | ||||||||||||
Cumulative interest rate sensitivity gap | $ | 1,874,864 | $ | 1,382,568 | $ | 1,249,750 | $ | 906,828 | $ | 840,229 | $ | 1,059,222 | ||||||||||||||
Cumulative interest rate sensitive assets to rate sensitive liabilities | 128.6 | % | 119.4 | % | 116.9 | % | 111.1 | % | 110.0 | % | 112.6 | % | 108.3 | % | ||||||||||||
Cumulative gap to total assets | 18.9 | % | 14.0 | % | 12.6 | % | 9.2 | % | 8.5 | % | 10.7 | % |
(Dollars in thousands) |
December 31,
2020 |
December 31,
2019 |
||||||
ASSETS | ||||||||
Cash | $ | 341 | $ | 357 | ||||
Interest-earning deposits with other institutions | 429,639 | 395,860 | ||||||
Federal funds sold | 5,462 | 7,638 | ||||||
Cash and cash equivalents | 435,442 | 403,855 | ||||||
Debt securities available-for-sale, at fair value | 617,570 | 248,782 | ||||||
Debt securities held-to-maturity, at cost, net | 211,691 | 196,044 | ||||||
Federal Home Loan Bank stock | 13,284 | 24,324 | ||||||
Total investment securities | 842,545 | 469,150 | ||||||
Loans and leases held-for-investment | 8,237,418 | 6,577,559 | ||||||
Allowance for credit losses on loans and leases | (34,630) | (14,108) | ||||||
Loans and leases held-for-investment, net | 8,202,788 | 6,563,451 | ||||||
Accrued interest receivable | 18,783 | 22,326 | ||||||
Investment management fees receivable, net | 7,935 | 7,560 | ||||||
Goodwill and other intangibles, net | 63,911 | 65,854 | ||||||
Office properties and equipment, net | 12,369 | 9,569 | ||||||
Operating lease right-of-use asset | 21,294 | 22,589 | ||||||
Bank owned life insurance | 71,787 | 70,044 | ||||||
Prepaid expenses and other assets | 219,962 | 131,412 | ||||||
Total assets | $ | 9,896,816 | $ | 7,765,810 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | $ | 8,489,089 | $ | 6,634,613 | ||||
Borrowings, net | 400,493 | 355,000 | ||||||
Accrued interest payable on deposits and borrowings | 3,057 | 5,490 | ||||||
Deferred tax liability, net | 5,676 | 6,931 | ||||||
Operating lease liability | 22,958 | 23,644 | ||||||
Other accrued expenses and other liabilities | 218,398 | 118,851 | ||||||
Total liabilities | 9,139,671 | 7,144,529 | ||||||
Shareholders’ Equity: | ||||||||
Preferred stock, no par value; Shares authorized - 150,000;
Series A Shares issued and outstanding - 40,250 and 40,250, respectively
Series B Shares issued and outstanding -80,500 and 80,500, respectively
Series C Shares issued and outstanding - 650 and 0, respectively
|
177,143 | 116,079 | ||||||
Common stock, no par value; Shares authorized - 45,000,000;
Shares issued - 34,919,572 and 31,482,408, respectively;
Shares outstanding - 32,620,150 and 29,355,986, respectively
|
331,098 | 295,349 | ||||||
Additional paid-in capital | 33,824 | 23,095 | ||||||
Retained earnings | 254,054 | 218,449 | ||||||
Accumulated other comprehensive income (loss), net | (2,697) | 1,132 | ||||||
Treasury stock (2,299,422 and 2,126,422 shares, respectively)
|
(36,277) | (32,823) | ||||||
Total shareholders’ equity | 757,145 | 621,281 | ||||||
Total liabilities and shareholders’ equity | $ | 9,896,816 | $ | 7,765,810 |
Years Ended December 31, | |||||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||
Interest income: | |||||||||||
Loans and leases | $ | 200,839 | $ | 239,328 | $ | 185,349 | |||||
Investments | 14,032 | 16,324 | 10,683 | ||||||||
Interest-earning deposits | 2,224 | 6,795 | 3,754 | ||||||||
Total interest income | 217,095 | 262,447 | 199,786 | ||||||||
Interest expense: | |||||||||||
Deposits | 69,202 | 125,592 | 78,493 | ||||||||
Borrowings | 9,949 | 9,798 | 7,889 | ||||||||
Total interest expense | 79,151 | 135,390 | 86,382 | ||||||||
Net interest income | 137,944 | 127,057 | 113,404 | ||||||||
Provision: | |||||||||||
Provision (credit) for credit losses | 19,400 | (968) | (205) | ||||||||
Net interest income after provision for credit losses | 118,544 | 128,025 | 113,609 | ||||||||
Non-interest income: | |||||||||||
Investment management fees | 32,035 | 36,442 | 37,647 | ||||||||
Service charges on deposits | 1,072 | 559 | 570 | ||||||||
Net gain (loss) on the sale and call of debt securities | 3,948 | 416 | (70) | ||||||||
Swap fees | 16,274 | 11,029 | 7,311 | ||||||||
Commitment and other loan fees | 1,715 | 1,788 | 1,411 | ||||||||
Bank owned life insurance income | 1,742 | 1,736 | 1,716 | ||||||||
Other income (loss) | 419 | 812 | (668) | ||||||||
Total non-interest income | 57,205 | 52,782 | 47,917 | ||||||||
Non-interest expense: | |||||||||||
Compensation and employee benefits | 71,197 | 69,176 | 64,771 | ||||||||
Premises and equipment expense | 5,875 | 5,458 | 4,867 | ||||||||
Professional fees | 6,201 | 6,188 | 4,729 | ||||||||
FDIC insurance expense | 9,680 | 5,292 | 4,543 | ||||||||
General insurance expense | 1,142 | 1,097 | 1,030 | ||||||||
State capital shares tax | 1,720 | 420 | 1,521 | ||||||||
Travel and entertainment expense | 2,423 | 4,620 | 3,816 | ||||||||
Technology and data services | 10,803 | 8,520 | 6,754 | ||||||||
Intangible amortization expense | 1,944 | 2,009 | 1,968 | ||||||||
Marketing and advertising | 2,402 | 2,263 | 1,682 | ||||||||
Change in fair value of acquisition earn out | — | — | (218) | ||||||||
Other operating expenses | 9,716 | 7,106 | 5,694 | ||||||||
Total non-interest expense | 123,103 | 112,149 | 101,157 | ||||||||
Income before tax | 52,646 | 68,658 | 60,369 | ||||||||
Income tax expense | 7,412 | 8,465 | 5,945 | ||||||||
Net income | $ | 45,234 | $ | 60,193 | $ | 54,424 | |||||
Preferred stock dividends | 7,873 | 5,753 | 2,120 | ||||||||
Net income available to common shareholders | $ | 37,361 | $ | 54,440 | $ | 52,304 | |||||
Earnings per common share: | |||||||||||
Basic | $ | 1.32 | $ | 1.95 | $ | 1.90 | |||||
Diluted | $ | 1.30 | $ | 1.89 | $ | 1.81 |
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Net income | $ | 45,234 | $ | 60,193 | $ | 54,424 | |||||
Other comprehensive income (loss): | |||||||||||
Unrealized holding gains (losses) on debt securities, net of tax expense (benefit) of $1,267, $1,696 and $(901), respectively
|
3,997 | 5,356 | (2,913) | ||||||||
Reclassification adjustment for losses (gains) included in net income on debt securities, net of tax benefit (expense) of $(927), $(76) and $17, respectively
|
(2,919) | (237) | 53 | ||||||||
Unrealized holding gains (losses) on derivatives, net of tax expense (benefit) of $(2,216), $(538) and $254, respectively
|
(6,981) | (1,701) | 773 | ||||||||
Reclassification adjustment for losses (gains) included in net income on derivatives, net of tax benefit (expense) of $658, $(304) and $(330), respectively
|
2,074 | (955) | (1,050) | ||||||||
Other comprehensive income (loss) | (3,829) | 2,463 | (3,137) | ||||||||
Total comprehensive income | $ | 41,405 | $ | 62,656 | $ | 51,287 |
(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 | ||||||||||||
Net income | — | — | — | 54,424 | — | — | 54,424 | |||||||||||||||||||
Impact of adoption of ASU 2014-09 | — | — | — | 533 | — | — | 533 | |||||||||||||||||||
Reclassification for equity securities under ASU 2016-01 | — | — | — | (286) | 286 | — | — | |||||||||||||||||||
Reclassification for certain income tax effects under ASU 2018-02 | — | — | — | (274) | 274 | — | — | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (3,137) | — | (3,137) | |||||||||||||||||||
Issuance of stock (net of offering costs of $1,782)
|
38,468 | — | — | — | — | — | 38,468 | |||||||||||||||||||
Preferred stock dividends | — | — | — | (2,120) | — | — | (2,120) | |||||||||||||||||||
Exercise of stock options | — | 3,848 | (2,181) | — | — | — | 1,667 | |||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | (6,807) | (6,807) | |||||||||||||||||||
Cancellation of stock options | — | — | (945) | — | — | — | (945) | |||||||||||||||||||
Stock-based compensation | — | — | 8,200 | — | — | — | 8,200 | |||||||||||||||||||
Balance, December 31, 2018 | $ | 38,468 | $ | 293,355 | $ | 15,364 | $ | 164,009 | $ | (1,331) | $ | (30,511) | $ | 479,354 | ||||||||||||
Net income | — | — | — | 60,193 | — | — | 60,193 | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 2,463 | — | 2,463 | |||||||||||||||||||
Issuance of stock (net of offering costs of $2,889)
|
77,611 | — | — | — | — | — | 77,611 | |||||||||||||||||||
Preferred stock dividends | — | — | — | (5,753) | — | — | (5,753) | |||||||||||||||||||
Exercise of stock options | — | 1,994 | (1,094) | — | — | — | 900 | |||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | (2,312) | (2,312) | |||||||||||||||||||
Stock-based compensation | — | — | 8,825 | — | — | — | 8,825 | |||||||||||||||||||
Balance, December 31, 2019 | $ | 116,079 | $ | 295,349 | $ | 23,095 | $ | 218,449 | $ | 1,132 | $ | (32,823) | $ | 621,281 | ||||||||||||
Net income | — | — | — | 45,234 | — | — | 45,234 | |||||||||||||||||||
Impact of adoption of CECL (see Note 1) | — | — | — | (1,731) | — | — | (1,731) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (3,829) | — | (3,829) | |||||||||||||||||||
Issuance of stock (net of offering costs of $4,998) (1)
|
61,064 | 34,720 | 4,218 | — | — | — | 100,002 | |||||||||||||||||||
Preferred stock dividend | — | — | — | (7,873) | — | — | (7,873) | |||||||||||||||||||
Exercise of stock options | — | 1,029 | (523) | — | — | — | 506 | |||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | (3,589) | (3,589) | |||||||||||||||||||
Reissuance of treasury stock | — | — | — | (25) | — | 135 | 110 | |||||||||||||||||||
Cancellation of stock options | — | — | (2,484) | — | — | — | (2,484) | |||||||||||||||||||
Stock-based compensation | — | — | 9,518 | — | — | — | 9,518 | |||||||||||||||||||
Balance, December 31, 2020 | $ | 177,143 | $ | 331,098 | $ | 33,824 | $ | 254,054 | $ | (2,697) | $ | (36,277) | $ | 757,145 |
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 45,234 | $ | 60,193 | $ | 54,424 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and intangible amortization expense | 4,209 | 3,646 | 3,509 | ||||||||
Amortization of deferred financing costs | 143 | 84 | 203 | ||||||||
Provision (credit) for credit losses | 19,400 | (968) | (205) | ||||||||
Net loss (gain) on the sale of loans | 50 | — | (19) | ||||||||
Stock-based compensation expense | 9,518 | 8,825 | 8,200 | ||||||||
Net loss (gain) on the sale or call of debt securities available-for-sale | (3,846) | (312) | 73 | ||||||||
Net gain on the call of debt securities held-to-maturity | (102) | (104) | (3) | ||||||||
Net loss (gain) from equity securities | — | (842) | 775 | ||||||||
Income from debt securities trading | (352) | — | — | ||||||||
Purchase of debt securities trading | (40,477) | — | — | ||||||||
Proceeds from the sale of debt securities trading | 40,792 | — | — | ||||||||
Net amortization of premiums and discounts on debt securities | 3,960 | 16 | 606 | ||||||||
Decrease (increase) in investment management fees receivable, net | (375) | (261) | 421 | ||||||||
Decrease (increase) in accrued interest receivable | 3,543 | (1,624) | (7,183) | ||||||||
Increase (decrease) in accrued interest payable | (2,433) | 286 | 2,705 | ||||||||
Bank owned life insurance income | (1,742) | (1,736) | (1,716) | ||||||||
Change in fair value of acquisition earn out | — | — | (218) | ||||||||
Increase (decrease) in income taxes payable | 188 | (156) | (9) | ||||||||
Decrease in prepaid income taxes | 2,755 | 5,189 | 8,369 | ||||||||
Deferred tax provision (credit) | 506 | 2,640 | 234 | ||||||||
Increase (decrease) in accounts payable and other accrued expenses | 2,752 | (6,361) | 9,566 | ||||||||
Cash received for reimbursement of leasehold improvements | 2,196 | — | — | ||||||||
Other, net | (512) | (322) | 2,966 | ||||||||
Net cash provided by operating activities | 85,407 | 68,193 | 82,698 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchase of debt securities available-for-sale | (571,837) | (59,110) | (155,632) | ||||||||
Purchase of debt securities held-to-maturity | (447,077) | (258,428) | (144,127) | ||||||||
Purchase of equity securities | — | — | (5,224) | ||||||||
Proceeds from the sale of debt securities available-for-sale | 120,400 | 6,993 | 31,306 | ||||||||
Proceeds from the sale of equity securities | — | 13,679 | — | ||||||||
Principal repayments and maturities of debt securities available-for-sale | 85,282 | 43,704 | 25,652 | ||||||||
Principal repayments and maturities of debt securities held-to-maturity | 430,090 | 258,581 | 7,176 | ||||||||
Investment in low income housing and historic tax credits | (4,219) | (12,505) | (4,834) | ||||||||
Investment in small business investment companies | (850) | (1,283) | (736) | ||||||||
Net redemption (purchase) of Federal Home Loan Bank stock | 11,040 | 347 | (10,879) | ||||||||
Net increase in loans and leases | (1,665,788) | (1,442,818) | (956,706) | ||||||||
Proceeds from loan sales | 6,158 | — | 7,092 | ||||||||
Proceeds from the sale of other real estate owned | 1,527 | 169 | — | ||||||||
Additions to office properties and equipment | (5,067) | (6,080) | (1,782) | ||||||||
Acquisition | — | — | (1,335) | ||||||||
Net cash used in investing activities | (2,040,341) | (1,456,751) | (1,210,029) | ||||||||
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid (received) during the year for: | |||||||||||
Interest expense | $ | 81,572 | $ | 135,021 | $ | 83,474 | |||||
Income taxes | $ | 693 | $ | (2,035) | $ | (4,331) | |||||
Other non-cash activity: | |||||||||||
Operating lease right-of-use asset | $ | — | $ | 22,589 | $ | — | |||||
Loan foreclosures and repossessions | $ | — | $ | 1,492 | $ | — | |||||
Contingent consideration | $ | — | $ | — | $ | 2,920 | |||||
January 1, 2020 | |||||||||||
(Dollars in thousands) | Pre-CECL Adoption | Impact of CECL Adoption | As Reported under CECL | ||||||||
Assets: | |||||||||||
Allowance for credit losses on loans and leases | $ | 14,108 | $ | 942 | $ | 15,050 | |||||
Allowance for credit losses on held-to-maturity debt securities | — | 49 | 49 | ||||||||
Liabilities: | |||||||||||
Allowance for credit losses on unfunded commitments | 645 | 1,283 | 1,928 | ||||||||
Deferred tax liability, net | 6,931 | (543) | 6,388 | ||||||||
Equity: | |||||||||||
Retained earnings | 218,449 | (1,731) | 216,718 |
December 31, 2020 | |||||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Allowance for Credit Losses (1)
|
Estimated
Fair Value |
||||||||||||
Debt securities available-for-sale: | |||||||||||||||||
Corporate bonds | $ | 157,452 | $ | 1,538 | $ | 526 | $ | — | $ | 158,464 | |||||||
Trust preferred securities | 18,228 | 57 | 198 | — | 18,087 | ||||||||||||
Agency collateralized mortgage obligations | 22,058 | 36 | 5 | — | 22,089 | ||||||||||||
Agency mortgage-backed securities | 406,741 | 3,595 | 209 | — | 410,127 | ||||||||||||
Agency debentures | 8,013 | 790 | — | — | 8,803 | ||||||||||||
Total debt securities available-for-sale | $ | 612,492 | $ | 6,016 | $ | 938 | $ | — | $ | 617,570 |
December 31, 2020 | ||||||||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
Allowance for Credit Losses (1)
|
|||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||
Corporate bonds | $ | 28,672 | $ | 566 | $ | 1 | $ | 29,237 | $ | 79 | ||||||||||
Agency debentures | 48,130 | 1,051 | — | 49,181 | — | |||||||||||||||
Municipal bonds | 6,577 | 45 | — | 6,622 | — | |||||||||||||||
Residential mortgage-backed securities | 124,152 | 237 | 217 | 124,172 | 70 | |||||||||||||||
Agency mortgage-backed securities | 4,309 | 778 | — | 5,087 | — | |||||||||||||||
Total debt securities held-to-maturity | $ | 211,840 | $ | 2,677 | $ | 218 | $ | 214,299 | $ | 149 |
December 31, 2019 | ||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||||
Debt securities available-for-sale: | ||||||||||||||
Corporate bonds | $ | 172,704 | $ | 2,821 | $ | 107 | $ | 175,418 | ||||||
Trust preferred securities | 18,092 | 216 | 48 | 18,260 | ||||||||||
Agency collateralized mortgage obligations | 27,262 | 11 | 80 | 27,193 | ||||||||||
Agency mortgage-backed securities | 18,058 | 451 | — | 18,509 | ||||||||||
Agency debentures | 8,961 | 441 | — | 9,402 | ||||||||||
Total debt securities available-for-sale | $ | 245,077 | $ | 3,940 | $ | 235 | $ | 248,782 | ||||||
December 31, 2019 | ||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Gross Unrealized
Appreciation |
Gross Unrealized
Depreciation |
Estimated
Fair Value |
||||||||||
Debt securities held-to-maturity: | ||||||||||||||
Corporate bonds | $ | 24,678 | $ | 619 | $ | — | $ | 25,297 | ||||||
Agency debentures | 149,912 | 628 | 935 | 149,605 | ||||||||||
Municipal bonds | 17,094 | 144 | — | 17,238 | ||||||||||
Agency mortgage-backed securities | 4,360 | 255 | — | 4,615 | ||||||||||
Total debt securities held-to-maturity | $ | 196,044 | $ | 1,646 | $ | 935 | $ | 196,755 |
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Taxable interest income | $ | 12,707 | $ | 14,558 | $ | 9,062 | |||||
Non-taxable interest income | 227 | 381 | 420 | ||||||||
Dividend income | 1,098 | 1,385 | 1,201 | ||||||||
Total interest income on investments | $ | 14,032 | $ | 16,324 | $ | 10,683 |
December 31, 2020 | |||||||||||||||||
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 | $ | 19,691 | $ | 19,765 | $ | 2,192 | $ | 2,205 | |||||||||
Due from one to five years | 68,881 | 69,922 | 13,283 | 13,573 | |||||||||||||
Due from five to 10 years | 95,803 | 95,765 | 59,793 | 60,197 | |||||||||||||
Due after 10 years | 428,117 | 432,118 | 136,572 | 138,324 | |||||||||||||
Total debt securities | $ | 612,492 | $ | 617,570 | $ | 211,840 | $ | 214,299 |
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||
Proceeds from sales | $ | 120,400 | $ | 6,993 | $ | 31,306 | $ | — | $ | — | $ | — | |||||||||||
Proceeds from calls | 11,426 | 17,336 | 6,129 | 398,248 | 255,538 | 1,000 | |||||||||||||||||
Total proceeds | $ | 131,826 | $ | 24,329 | $ | 37,435 | $ | 398,248 | $ | 255,538 | $ | 1,000 | |||||||||||
Gross realized gains | $ | 3,846 | $ | 312 | $ | 51 | $ | 102 | $ | 104 | $ | 3 | |||||||||||
Gross realized losses | — | — | 124 | — | — | — | |||||||||||||||||
Net realized gains (losses) | $ | 3,846 | $ | 312 | $ | (73) | $ | 102 | $ | 104 | $ | 3 |
Year Ended December 31, 2020 | |||||||||||||||||
(Dollars in thousands) | Corporate Bonds | Residential Mortgage-Backed Securities | Municipal Bonds | Agency Debentures and Mortgage-Backed Securities | Total | ||||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Impact of adopting CECL | 49 | — | — | — | 49 | ||||||||||||
Provision for credit losses | 30 | 70 | — | — | 100 | ||||||||||||
Charge-offs | — | — | — | — | — | ||||||||||||
Recoveries | — | — | — | — | — | ||||||||||||
Balance, end of period | $ | 79 | $ | 70 | $ | — | $ | — | $ | 149 |
December 31, 2020 | ||||||||||||||||||||||||||
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 | $ | 28,796 | $ | 277 | $ | 9,751 | $ | 249 | $ | 38,547 | $ | 526 | ||||||||||||||
Trust preferred securities | 13,313 | 198 | — | — | 13,313 | 198 | ||||||||||||||||||||
Agency collateralized mortgage obligations | — | — | 9,863 | 5 | 9,863 | 5 | ||||||||||||||||||||
Agency mortgage-backed securities | 89,931 | 209 | — | — | 89,931 | 209 | ||||||||||||||||||||
Total debt securities available-for-sale in an unrealized loss position (1)
|
$ | 132,040 | $ | 684 | $ | 19,614 | $ | 254 | $ | 151,654 | $ | 938 | ||||||||||||||
December 31, 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 | $ | 4,942 | $ | 58 | $ | 19,951 | $ | 49 | $ | 24,893 | $ | 107 | ||||||||||||||
Trust preferred securities | — | — | 4,417 | 48 | 4,417 | 48 | ||||||||||||||||||||
Agency collateralized mortgage obligations | 22,117 | 66 | 2,544 | 14 | 24,661 | 80 | ||||||||||||||||||||
Total debt securities available-for-sale in an unrealized loss position (1)
|
$ | 27,059 | $ | 124 | $ | 26,912 | $ | 111 | $ | 53,971 | $ | 235 | ||||||||||||||
December 31, 2020 | ||||||||||||||||||||
(Dollars in thousands) | Aaa | Aa | A | Baa | Ba | Total | ||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||
Corporate Bonds | $ | — | $ | — | $ | — | $ | 28,672 | $ | — | $ | 28,672 | ||||||||
Agency debentures | 48,130 | — | — | — | — | 48,130 | ||||||||||||||
Municipal bonds | — | 5,787 | 790 | — | — | 6,577 | ||||||||||||||
Residential mortgage-backed securities | 124,152 | — | — | — | — | 124,152 | ||||||||||||||
Agency mortgage-backed securities | 4,309 | — | — | — | — | 4,309 | ||||||||||||||
Total debt securities held-to-maturity | $ | 176,591 | $ | 5,787 | $ | 790 | $ | 28,672 | $ | — | $ | 211,840 |
December 31, 2020 | ||||||||||||||
(Dollars in thousands) |
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total | ||||||||||
Loans and leases held-for-investment, before deferred fees and costs | $ | 4,797,881 | $ | 1,269,248 | $ | 2,160,784 | $ | 8,227,913 | ||||||
Net deferred loan costs (fees) | 9,919 | 4,904 | (5,318) | 9,505 | ||||||||||
Loans and leases held-for-investment, net of deferred fees and costs | 4,807,800 | 1,274,152 | 2,155,466 | 8,237,418 | ||||||||||
Allowance for credit losses on loans and leases | (2,047) | (5,254) | (27,329) | (34,630) | ||||||||||
Loans and leases held-for-investment, net | $ | 4,805,753 | $ | 1,268,898 | $ | 2,128,137 | $ | 8,202,788 |
December 31, 2019 | ||||||||||||||
(Dollars in thousands) |
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total | ||||||||||
Loans and leases held-for-investment, before deferred fees and costs | $ | 3,688,779 | $ | 1,080,767 | $ | 1,801,375 | $ | 6,570,921 | ||||||
Net deferred loan costs (fees) | 6,623 | 4,942 | (4,927) | 6,638 | ||||||||||
Loans and leases held-for-investment, net of deferred fees and costs | 3,695,402 | 1,085,709 | 1,796,448 | 6,577,559 | ||||||||||
Allowance for credit losses on loans and leases | (1,973) | (5,262) | (6,873) | (14,108) | ||||||||||
Loans and leases held-for-investment, net | $ | 3,693,429 | $ | 1,080,447 | $ | 1,789,575 | $ | 6,563,451 |
As of December 31, 2020 | ||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior |
Revolving Loans (1)
|
Total | ||||||||||||||||||
Private Banking: | ||||||||||||||||||||||||||
Pass | $ | 64,829 | $ | 44,210 | $ | 57,081 | $ | 7,736 | $ | 12,040 | $ | 55,092 | $ | 4,566,296 | $ | 4,807,284 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard | — | 516 | — | — | — | — | — | 516 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Private Banking Loans | 64,829 | 44,726 | 57,081 | 7,736 | 12,040 | 55,092 | 4,566,296 | 4,807,800 | ||||||||||||||||||
Commercial and Industrial: | ||||||||||||||||||||||||||
Pass | 216,459 | 223,189 | 88,212 | 44,575 | 9,383 | 20,709 | 651,900 | 1,254,427 | ||||||||||||||||||
Special Mention | 1,795 | — | 5,416 | — | — | — | 3,431 | 10,642 | ||||||||||||||||||
Substandard | 750 | — | 7,875 | — | — | — | 458 | 9,083 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Commercial and Industrial Loans | 219,004 | 223,189 | 101,503 | 44,575 | 9,383 | 20,709 | 655,789 | 1,274,152 | ||||||||||||||||||
Commercial Real Estate: | ||||||||||||||||||||||||||
Pass | 514,920 | 617,120 | 435,708 | 202,001 | 181,108 | 134,700 | 38,802 | 2,124,359 | ||||||||||||||||||
Special Mention | 446 | 5,395 | 4,308 | — | 1,186 | 145 | — | 11,480 | ||||||||||||||||||
Substandard | 91 | — | 6,296 | 2,926 | 7,054 | 3,260 | — | 19,627 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Commercial Real Estate Loans | 515,457 | 622,515 | 446,312 | 204,927 | 189,348 | 138,105 | 38,802 | 2,155,466 | ||||||||||||||||||
Loans and leases held-for-investment | $ | 799,290 | $ | 890,430 | $ | 604,896 | $ | 257,238 | $ | 210,771 | $ | 213,906 | $ | 5,260,887 | $ | 8,237,418 |
Year Ended December 31, 2020 | ||||||||||||||
(Dollars in thousands) |
Commercial
and Industrial |
Commercial
Real Estate |
Private
Banking |
Total | ||||||||||
Balance, beginning of period | $ | 5,262 | $ | 6,873 | $ | 1,973 | $ | 14,108 | ||||||
Impact of adopting CECL | (2,431) | 3,560 | (187) | $ | 942 | |||||||||
Provision for credit losses | 1,973 | 16,896 | 432 | 19,301 | ||||||||||
Charge-offs | — | — | (171) | (171) | ||||||||||
Recoveries | 450 | — | — | 450 | ||||||||||
Balance, end of period | $ | 5,254 | $ | 27,329 | $ | 2,047 | $ | 34,630 |
Year Ended December 31, 2019 | ||||||||||||||
(Dollars in thousands) |
Commercial
and Industrial |
Commercial
Real Estate |
Private
Banking |
Total | ||||||||||
Balance, beginning of period | $ | 5,764 | $ | 5,502 | $ | 1,942 | $ | 13,208 | ||||||
Provision (credit) for credit losses | (2,482) | 1,371 | 143 | (968) | ||||||||||
Charge-offs | — | — | (112) | (112) | ||||||||||
Recoveries | 1,980 | — | — | 1,980 | ||||||||||
Balance, end of period | $ | 5,262 | $ | 6,873 | $ | 1,973 | $ | 14,108 |
Year Ended December 31, 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 credit losses | 365 | (1,275) | 705 | (205) | ||||||||||
Charge-offs | — | (2,068) | — | (2,068) | ||||||||||
Recoveries | — | 1,064 | — | 1,064 | ||||||||||
Balance, end of period | $ | 1,942 | $ | 5,764 | $ | 5,502 | $ | 13,208 |
December 31, 2020 | ||||||||||||||||||||
(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 | $ | 250 | $ | — | $ | — | $ | 250 | $ | 4,807,550 | $ | 4,807,800 | ||||||||
Commercial and industrial | — | — | 458 | 458 | 1,273,694 | 1,274,152 | ||||||||||||||
Commercial real estate | 2,926 | — | 6,296 | 9,222 | 2,146,244 | 2,155,466 | ||||||||||||||
Loans and leases held-for-investment | $ | 3,176 | $ | — | $ | 6,754 | $ | 9,930 | $ | 8,227,488 | $ | 8,237,418 |
December 31, 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 | $ | 261 | $ | — | $ | 184 | $ | 445 | $ | 3,694,957 | $ | 3,695,402 | ||||||||
Commercial and industrial | — | — | — | — | 1,085,709 | 1,085,709 | ||||||||||||||
Commercial real estate | — | — | — | — | 1,796,448 | 1,796,448 | ||||||||||||||
Loans and leases held-for-investment | $ | 261 | $ | — | $ | 184 | $ | 445 | $ | 6,577,114 | $ | 6,577,559 |
As of and for the Year Ended December 31, 2020 | |||||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||
With a related allowance recorded: | |||||||||||||||||
Private banking | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Commercial and industrial | 458 | 457 | 103 | 458 | — | ||||||||||||
Commercial real estate | 9,222 | 9,251 | 1,885 | 9,222 | — | ||||||||||||
Total with a related allowance recorded | 9,680 | 9,708 | 1,988 | 9,680 | — | ||||||||||||
Without a related allowance recorded: | |||||||||||||||||
Private banking | — | — | — | — | — | ||||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||
Total without a related allowance recorded | — | — | — | — | — | ||||||||||||
Total: | |||||||||||||||||
Private banking | — | — | — | — | — | ||||||||||||
Commercial and industrial | 458 | 457 | 103 | 458 | — | ||||||||||||
Commercial real estate | 9,222 | 9,251 | 1,885 | 9,222 | — | ||||||||||||
Total | $ | 9,680 | $ | 9,708 | $ | 1,988 | $ | 9,680 | $ | — |
As of and for the Year Ended December 31, 2019 | |||||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
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 Year Ended December 31, 2018 | |||||||||||||||||
(Dollars in thousands) |
Amortized
Cost |
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 | $ | — |
December 31, 2020 | ||||||||||||||
(Dollars in thousands) |
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total | ||||||||||
Allowance for credit losses on loans and leases: | ||||||||||||||
Individually evaluated for impairment | $ | — | $ | 103 | $ | 1,885 | $ | 1,988 | ||||||
Collectively evaluated for impairment | 2,047 | 5,151 | 25,444 | 32,642 | ||||||||||
Total allowance for credit losses on loans and leases | $ | 2,047 | $ | 5,254 | $ | 27,329 | $ | 34,630 | ||||||
Loans and leases held-for-investment: | ||||||||||||||
Individually evaluated for impairment | $ | — | $ | 458 | $ | 9,222 | $ | 9,680 | ||||||
Collectively evaluated for impairment | 4,807,800 | 1,273,694 | 2,146,244 | 8,227,738 | ||||||||||
Loans and leases held-for-investment | $ | 4,807,800 | $ | 1,274,152 | $ | 2,155,466 | $ | 8,237,418 |
December 31, 2019 | ||||||||||||||
(Dollars in thousands) |
Private
Banking |
Commercial
and Industrial |
Commercial
Real Estate |
Total | ||||||||||
Allowance for credit losses on loans and leases: | ||||||||||||||
Individually evaluated for impairment | $ | 171 | $ | — | $ | — | $ | 171 | ||||||
Collectively evaluated for impairment | 1,802 | 5,262 | 6,873 | 13,937 | ||||||||||
Total allowance for credit losses on loans and leases | $ | 1,973 | $ | 5,262 | $ | 6,873 | $ | 14,108 | ||||||
Loans and leases held-for-investment: | ||||||||||||||
Individually evaluated for impairment | $ | 184 | $ | — | $ | — | $ | 184 | ||||||
Collectively evaluated for impairment | 3,695,218 | 1,085,709 | 1,796,448 | 6,577,375 | ||||||||||
Loans and leases held-for-investment | $ | 3,695,402 | $ | 1,085,709 | $ | 1,796,448 | $ | 6,577,559 |
Year Ended December 31, 2020 | |||||||||||||||||
(Dollars in thousands) | Count | Recorded Investment at the time of Modification | Current Recorded Investment | Allowance for Credit Losses at the time of Modification | Current Allowance for Credit Losses | ||||||||||||
Commercial Real Estate: | |||||||||||||||||
Extended term, forgave principal and change in interest terms | 1 | $ | 2,926 | $ | 2,926 | $ | 468 | $ | 468 | ||||||||
Total | 1 | $ | 2,926 | $ | 2,926 | $ | 468 | $ | 468 |
(Dollars in thousands) | 2020 | 2019 | ||||||
Balance, beginning of period | $ | 41,660 | $ | 41,660 | ||||
Additions | — | — | ||||||
Balance, end of period | $ | 41,660 | $ | 41,660 |
(Dollars in thousands) | 2020 | 2019 | ||||||
Balance, beginning of period | $ | 24,194 | $ | 26,203 | ||||
Additions | — | — | ||||||
Amortization | (1,943) | (2,009) | ||||||
Balance, end of period | $ | 22,251 | $ | 24,194 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
(Dollars in thousands) | Gross Amount | Accumulated Amortization | Net Carrying Amount | Gross Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Trade name | $ | 4,040 | $ | (939) | $ | 3,101 | $ | 4,040 | $ | (765) | $ | 3,275 | |||||||||||
Client Relationships: | |||||||||||||||||||||||
Sub-advisory client list | 11,645 | (5,838) | 5,807 | 11,645 | (4,968) | 6,677 | |||||||||||||||||
Separate managed accounts client list | 3,175 | (1,404) | 1,771 | 3,175 | (1,092) | 2,083 | |||||||||||||||||
Other institutional client list | 5,950 | (3,696) | 2,254 | 5,950 | (3,155) | 2,795 | |||||||||||||||||
Non-compete agreements | 522 | (504) | 18 | 522 | (458) | 64 | |||||||||||||||||
Total finite-lived intangibles | 25,332 | (12,381) | 12,951 | 25,332 | (10,438) | 14,894 | |||||||||||||||||
Client Relationships: | |||||||||||||||||||||||
Mutual fund client relationships
(indefinite-lived) |
9,300 | — | 9,300 | 9,300 | — | 9,300 | |||||||||||||||||
Total intangibles assets | $ | 34,632 | $ | (12,381) | $ | 22,251 | $ | 34,632 | $ | (10,438) | $ | 24,194 |
(Dollars in thousands) | Amount | ||||
2021 | $ | 1,911 | |||
2022 | 1,900 | ||||
2023 | 1,897 | ||||
2024 | 1,805 | ||||
2025 | 1,336 | ||||
Thereafter | 4,102 | ||||
Total finite-lived intangibles | $ | 12,951 | |||
December 31, | ||||||||
(Dollars in thousands) | 2020 | 2019 | ||||||
Furniture, fixtures and equipment | $ | 20,244 | $ | 15,752 | ||||
Leasehold improvements | 8,366 | 7,792 | ||||||
Total, at cost | 28,610 | 23,544 | ||||||
Accumulated depreciation | (16,241) | (13,975) | ||||||
Net office properties and equipment | $ | 12,369 | $ | 9,569 |
(Dollars in thousands) | Amount | ||||
December 31, | |||||
2021 | $ | 3,181 | |||
2022 | 2,585 | ||||
2023 | 2,293 | ||||
2024 | 2,062 | ||||
2025 | 1,760 | ||||
Thereafter | 18,642 | ||||
Total undiscounted lease payments | $ | 30,523 | |||
Imputed interest | 7,565 | ||||
Operating lease liability | $ | 22,958 |
Interest Rate Range |
Weighted Average
Interest Rate |
Balance | |||||||||||||||||||||
(Dollars in thousands) |
December 31,
2020 |
December 31,
2020 |
December 31,
2019 |
December 31,
2020 |
December 31,
2019 |
||||||||||||||||||
Demand and savings accounts: | |||||||||||||||||||||||
Noninterest-bearing checking accounts | — | — | — | $ | 456,426 | $ | 356,102 | ||||||||||||||||
Interest-bearing checking accounts |
0.05 to 1.70%
|
0.38% | 1.57% | 3,068,834 | 1,398,264 | ||||||||||||||||||
Money market deposit accounts |
0.10 to 2.95%
|
0.56% | 1.84% | 3,927,797 | 3,426,745 | ||||||||||||||||||
Total demand and savings accounts | 7,453,057 | 5,181,111 | |||||||||||||||||||||
Certificates of deposit |
0.06 to 3.22%
|
1.08% | 2.24% | 1,036,032 | 1,453,502 | ||||||||||||||||||
Total deposits | $ | 8,489,089 | $ | 6,634,613 | |||||||||||||||||||
Weighted average rate on interest-bearing accounts | 0.56% | 1.87% |
(Dollars in thousands) |
December 31,
2020 |
December 31,
2019 |
||||||
12 months or less | $ | 892,427 | $ | 1,244,838 | ||||
12 months to 24 months | 132,443 | 168,437 | ||||||
24 months to 36 months | 11,162 | 40,227 | ||||||
Total | $ | 1,036,032 | $ | 1,453,502 |
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Interest-bearing checking accounts | $ | 14,493 | $ | 21,480 | $ | 11,440 | |||||
Money market deposit accounts | 35,095 | 69,336 | 45,106 | ||||||||
Certificates of deposit | 19,614 | 34,776 | 21,947 | ||||||||
Total interest expense on deposits | $ | 69,202 | $ | 125,592 | $ | 78,493 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
(Dollars in thousands) | Interest Rate | Ending Balance | Maturity Date | Interest Rate | Ending Balance | Maturity Date | |||||||||||||||||
FHLB borrowings: | |||||||||||||||||||||||
FHLB line of credit | $ | — | 1.81% | $ | 55,000 | 5/1/2020 | |||||||||||||||||
Issued 12/21/2020 | 0.39% | 50,000 | 3/22/2021 | — | |||||||||||||||||||
Issued 12/2/2020 | 0.33% | 50,000 | 3/2/2021 | — | |||||||||||||||||||
Issued 12/1/2020 | 0.33% | 150,000 | 3/1/2021 | — | |||||||||||||||||||
Issued 10/8/2020 | 0.39% | 50,000 | 1/8/2021 | — | |||||||||||||||||||
Issued 12/12/2019 | — | 1.85% | 100,000 | 1/13/2020 | |||||||||||||||||||
Issued 12/02/2019 | — | 1.91% | 150,000 | 3/2/2020 | |||||||||||||||||||
Issued 10/08/2019 | — | 2.00% | 50,000 | 1/8/2020 | |||||||||||||||||||
Line of credit borrowings | 4.25% | 5,000 | 10/17/2021 | — | |||||||||||||||||||
Subordinated notes payable (net of debt issuance costs of $2,007 and $0, respectively)
|
5.75% | 95,493 | 5/15/2030 | — | |||||||||||||||||||
Total borrowings, net | $ | 400,493 | $ | 355,000 |
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
FHLB borrowings | $ | 6,095 | $ | 8,639 | $ | 5,555 | |||||
Line of credit borrowings | 261 | 68 | 119 | ||||||||
Subordinated notes payable | 3,593 | 1,091 | 2,215 | ||||||||
Total interest expense on borrowings | $ | 9,949 | $ | 9,798 | $ | 7,889 |
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Tax provision at statutory rate | $ | 11,056 | $ | 14,418 | $ | 12,677 | |||||
Nondeductible expenses | 772 | 919 | 595 | ||||||||
Bank owned life insurance | (366) | (364) | (360) | ||||||||
Stock option exercises and cancellations | (288) | (668) | (844) | ||||||||
State tax expense, net of federal benefit | 1,636 | 2,481 | 1,927 | ||||||||
Impact of change in tax rates | — | — | (332) | ||||||||
Adjustments to prior year tax | 284 | (121) | (133) | ||||||||
Tax exempt income, net of disallowed interest | (47) | (71) | (79) | ||||||||
Renewable energy tax credits | (1,531) | (1,912) | (6,568) | ||||||||
Low income housing tax credits | (880) | (364) | (95) | ||||||||
Historic tax credits | (3,273) | (6,036) | (860) | ||||||||
Other | 49 | 183 | 17 | ||||||||
Income tax provision | $ | 7,412 | $ | 8,465 | $ | 5,945 |
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Current income tax provision - federal | $ | 4,812 | $ | 4,058 | $ | 2,712 | |||||
Current income tax provision - state | 2,094 | 1,767 | 2,999 | ||||||||
Deferred tax provision - federal | 431 | 1,312 | 904 | ||||||||
Deferred tax provision (benefit) - state | 75 | 1,328 | (670) | ||||||||
Income tax provision | $ | 7,412 | $ | 8,465 | $ | 5,945 |
December 31, | ||||||||
(Dollars in thousands) | 2020 | 2019 | ||||||
Deferred tax assets: | ||||||||
Net operating loss - state | $ | 672 | $ | 233 | ||||
Start-up expenses | 9 | 28 | ||||||
Stock compensation | 1,546 | 3,146 | ||||||
Compensation related accruals | 4,311 | 4,007 | ||||||
Leasehold improvement | 666 | 155 | ||||||
Allowance for credit losses on loans and leases | 8,369 | 3,421 | ||||||
Right-of-use liability | 4,891 | 5,737 | ||||||
Reserve for unfunded commitments | 820 | 156 | ||||||
Supplemental executive retirement plan | 917 | 883 | ||||||
Transaction costs | 112 | 126 | ||||||
Earn out liability non-purchase accounting | 214 | 246 | ||||||
Unrealized loss on investments and derivatives | 857 | — | ||||||
State bonus depreciation | 3,535 | 2,295 | ||||||
General business credits | 14,551 | 10,677 | ||||||
Other | 31 | 399 | ||||||
Gross deferred tax assets | 41,501 | 31,509 | ||||||
Deferred tax liabilities: | ||||||||
Office properties and equipment | (31,632) | (21,857) | ||||||
Prepaid expenses | (649) | (874) | ||||||
Deferred loan costs | (5,036) | (5,110) | ||||||
Intangibles | (257) | (164) | ||||||
Goodwill | (4,885) | (4,209) | ||||||
State capital shares tax liability | (229) | (127) | ||||||
Right-of-use asset | (4,489) | (5,737) | ||||||
Unrealized gain on investments and derivatives | — | (362) | ||||||
Gross deferred tax liability | (47,177) | (38,440) | ||||||
Net deferred tax liability | $ | (5,676) | $ | (6,931) |
December 31, | ||||||||
(Dollars in thousands) | 2020 | 2019 | ||||||
Deferred tax benefit | $ | (506) | $ | (2,640) | ||||
Deferred tax retained earnings for CECL adoption | 543 | — | ||||||
Deferred tax impact from other comprehensive income | 1,218 | (778) | ||||||
Change in net deferred tax asset or liability | $ | 1,255 | $ | (3,418) |
December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Beginning of year balance | $ | 528 | $ | 704 | $ | 744 | |||||
Increases in prior period tax positions | — | 111 | — | ||||||||
Decreases in prior period tax positions | (46) | — | (250) | ||||||||
Increases in current period tax positions | 203 | 148 | 210 | ||||||||
Settlements | — | (435) | — | ||||||||
End of year balance | $ | 685 | $ | 528 | $ | 704 |
Number of
Preferred Shares Outstanding |
Number of
Common Shares Outstanding |
Number of
Treasury Shares |
|||||||||
Balance, December 31, 2017 | — | 28,591,101 | 1,751,370 | ||||||||
Issuance of preferred stock | 40,250 | — | — | ||||||||
Issuance of restricted common stock | — | 423,113 | — | ||||||||
Forfeitures of restricted common stock | — | (27,250) | — | ||||||||
Exercise of stock options | — | 155,250 | — | ||||||||
Purchase of treasury stock | — | (263,540) | 263,540 | ||||||||
Balance, December 31, 2018 | 40,250 | 28,878,674 | 2,014,910 | ||||||||
Issuance of preferred stock | 80,500 | — | — | ||||||||
Issuance of restricted common stock | — | 580,453 | — | ||||||||
Forfeitures of restricted common stock | — | (78,209) | — | ||||||||
Exercise of stock options | — | 86,580 | — | ||||||||
Purchase of treasury stock | — | (90,000) | 90,000 | ||||||||
Increase in treasury stock related to equity awards | — | (21,512) | 21,512 | ||||||||
Balance, December 31, 2019 | 120,750 | 29,355,986 | 2,126,422 | ||||||||
Issuance of preferred stock | 650 | — | — | ||||||||
Issuance of common stock | — | 2,770,083 | — | ||||||||
Issuance of restricted common stock | — | 638,832 | — | ||||||||
Forfeitures of restricted common stock | — | (32,751) | — | ||||||||
Exercise of stock options | — | 61,000 | — | ||||||||
Purchase of treasury stock | — | (40,000) | 40,000 | ||||||||
Increase in treasury stock related to equity awards | — | (141,500) | 141,500 | ||||||||
Reissuance of treasury stock | — | 8,500 | (8,500) | ||||||||
Balance, December 31, 2020 | 121,400 | 32,620,150 | 2,299,422 | ||||||||
December 31, 2020 | ||||||||||||||||||||||||||
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 | $ | 833,819 | 14.12 | % | $ | 472,267 | 8.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 789,273 | 13.41 | % | $ | 470,820 | 8.00 | % | $ | 588,525 | 10.00 | % | ||||||||||||||
Tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
Company | $ | 707,711 | 11.99 | % | $ | 354,200 | 6.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 758,658 | 12.89 | % | $ | 353,115 | 6.00 | % | $ | 470,820 | 8.00 | % | ||||||||||||||
Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
Company | $ | 530,568 | 8.99 | % | $ | 265,650 | 4.50 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 758,658 | 12.89 | % | $ | 264,836 | 4.50 | % | $ | 382,542 | 6.50 | % | ||||||||||||||
Tier 1 leverage ratio | ||||||||||||||||||||||||||
Company | $ | 707,711 | 7.29 | % | $ | 388,408 | 4.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 758,658 | 7.83 | % | $ | 387,626 | 4.00 | % | $ | 484,533 | 5.00 | % |
December 31, 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 | $ | 572,221 | 12.05 | % | $ | 379,911 | 8.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 547,532 | 11.57 | % | $ | 378,623 | 8.00 | % | $ | 473,279 | 10.00 | % | ||||||||||||||
Tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
Company | $ | 558,068 | 11.75 | % | $ | 284,933 | 6.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 532,779 | 11.26 | % | $ | 283,967 | 6.00 | % | $ | 378,623 | 8.00 | % | ||||||||||||||
Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
Company | $ | 442,385 | 9.32 | % | $ | 213,700 | 4.50 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 532,779 | 11.26 | % | $ | 212,975 | 4.50 | % | $ | 307,631 | 6.50 | % | ||||||||||||||
Tier 1 leverage ratio | ||||||||||||||||||||||||||
Company | $ | 558,068 | 7.54 | % | $ | 296,038 | 4.00 | % | N/A | N/A | ||||||||||||||||
Bank | $ | 532,779 | 7.22 | % | $ | 295,277 | 4.00 | % | $ | 369,097 | 5.00 | % |
Years Ended December 31, | ||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | 2018 | |||||||||||
Basic earnings per common share: | ||||||||||||||
Net income | $ | 45,234 | $ | 60,193 | $ | 54,424 | ||||||||
Less: Preferred dividends on Series A and Series B | 7,849 | 5,753 | 2,120 | |||||||||||
Less: Preferred dividends on Series C | 24 | — | — | |||||||||||
Net income available to common shareholders | $ | 37,361 | $ | 54,440 | $ | 52,304 | ||||||||
Allocation of net income available: | ||||||||||||||
Common shareholders | $ | 37,320 | $ | 54,440 | $ | 52,304 | ||||||||
Series C convertible preferred shareholders | 34 | — | — | |||||||||||
Warrant shareholders | 7 | — | — | |||||||||||
Total | $ | 37,361 | $ | 54,440 | $ | 52,304 | ||||||||
Basic weighted average common shares outstanding: | ||||||||||||||
Basic common shares | 28,267,512 | 27,864,933 | 27,583,519 | |||||||||||
Series C convertible preferred stock, as-if converted | 25,832 | — | — | |||||||||||
Warrants, as-if exercised | 5,041 | — | — | |||||||||||
Basic earnings per common share | $ | 1.32 | $ | 1.95 | $ | 1.90 | ||||||||
Diluted earnings per common share: | ||||||||||||||
Income available to common shareholders after allocation | $ | 37,320 | $ | 54,440 | $ | 52,304 | ||||||||
Diluted weighted average common shares outstanding: | ||||||||||||||
Basic common shares | 28,267,512 | 27,864,933 | 27,583,519 | |||||||||||
Restricted stock - dilutive | 345,026 | 633,802 | 780,357 | |||||||||||
Stock options - dilutive | 125,930 | 334,600 | 469,520 | |||||||||||
Diluted common shares | 28,738,468 | 28,833,335 | 28,833,396 | |||||||||||
Diluted earnings per common share | $ | 1.30 | $ | 1.89 | $ | 1.81 |
December 31, | December 31, | December 31, | |||||||||
Anti-dilutive shares: | 2020 | 2019 | 2018 | ||||||||
Restricted stock | 581,717 | 31,500 | 7,000 | ||||||||
Stock options | — | — | — | ||||||||
Series C convertible preferred stock, as-if converted | 4,727,272 | — | — | ||||||||
Warrants, as-if exercised | 922,438 | — | — | ||||||||
Total anti-dilutive shares
|
6,231,427 | 31,500 | 7,000 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (years) | |||||||||
Balance, December 31, 2017 | 946,343 | $ | 10.67 | 5.01 | |||||||
Granted | — | — | |||||||||
Exercised | (155,250) | 10.74 | |||||||||
Forfeited | (15,000) | 11.74 | |||||||||
Canceled | (65,446) | 10.30 | |||||||||
Expired | (16,500) | 13.53 | |||||||||
Balance, December 31, 2018 | 694,147 | $ | 10.60 | 4.26 | |||||||
Granted | — | — | |||||||||
Exercised | (86,580) | 10.39 | |||||||||
Forfeited | (5,000) | 10.31 | |||||||||
Canceled | — | — | |||||||||
Expired | — | — | |||||||||
Balance, December 31, 2019 | 602,567 | $ | 10.64 | 3.47 | |||||||
Granted | — | — | |||||||||
Exercised | (61,000) | 8.30 | |||||||||
Forfeited | (1,500) | 12.29 | |||||||||
Canceled | (212,447) | 10.88 | |||||||||
Expired | — | — | |||||||||
Balance, December 31, 2020 | 327,620 | $ | 10.90 | 2.67 | |||||||
Exercisable as of December 31, 2018 | 429,450 | $ | 9.97 | 3.49 | |||||||
Exercisable as of December 31, 2019 | 512,236 | $ | 10.64 | 3.17 | |||||||
Exercisable as of December 31, 2020 | 320,620 | $ | 10.86 | 2.61 |
Non-vested options: | Number of Options |
Weighted Average Grant-Date
Fair Value |
||||||
Balance, December 31, 2017 | 328,697 | $ | 4.94 | |||||
Granted | — | — | ||||||
Vested | (49,000) | 4.82 | ||||||
Forfeited | (15,000) | 5.01 | ||||||
Balance, December 31, 2018 | 264,697 | $ | 4.96 | |||||
Granted | — | — | ||||||
Vested | (169,366) | 4.94 | ||||||
Forfeited | (5,000) | 4.95 | ||||||
Balance, December 31, 2019 | 90,331 | $ | 4.98 | |||||
Granted | — | — | ||||||
Vested | (81,831) | 4.96 | ||||||
Forfeited | (1,500) | 4.75 | ||||||
Balance, December 31, 2020 | 7,000 | $ | 5.21 |
Non-vested restricted shares: | Number of Shares |
Weighted Average Grant-Date
Fair Value |
||||||
Balance, December 31, 2017 | 1,137,843 | $ | 15.54 | |||||
Granted | 423,113 | 23.90 | ||||||
Vested | (180,694) | 10.68 | ||||||
Forfeited | (27,250) | 20.61 | ||||||
Balance, December 31, 2018 | 1,353,012 | $ | 18.70 | |||||
Granted | 580,453 | 21.85 | ||||||
Vested | (424,134) | 13.20 | ||||||
Forfeited | (78,209) | 19.13 | ||||||
Balance, December 31, 2019 | 1,431,122 | $ | 21.58 | |||||
Granted | 638,832 | 22.37 | ||||||
Vested | (544,075) | 20.22 | ||||||
Forfeited | (32,751) | 23.62 | ||||||
Balance, December 31, 2020 | 1,493,128 | $ | 22.37 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
as of December 31, 2020 | as of December 31, 2020 | ||||||||||||||||
(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 | $ | 9,082 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Interest rate products | Other assets | 144,333 | Other liabilities | 144,351 | |||||||||||||
Total | Other assets | $ | 144,333 | Other liabilities | $ | 153,433 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
as of December 31, 2019 | as of December 31, 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 | $ | 2,184 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Interest rate products | Other assets | 55,241 | Other liabilities | 55,289 | |||||||||||||
Total | Other assets | $ | 55,241 | Other liabilities | $ | 57,473 |
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 | |||||||||||||||||||||||||||||||||
December 31, 2020 | $ | 153,433 | $ | — | $ | 153,433 | $ | (94) | $ | (150,238) | $ | 3,101 | |||||||||||||||||||||||
December 31, 2019 | $ | 57,473 | $ | — | $ | 57,473 | $ | (850) | $ | (55,753) | $ | 870 |
(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 | % | $ | 19 | 1/8/2021 | 0 | |||||||||
Issued 5/30/2019 | $ | 50,000 | 2.05 | % | $ | 942 | 6/1/2022 | 17 | |||||||||
Issued 5/30/2019 | $ | 50,000 | 2.03 | % | $ | 935 | 6/1/2023 | 29 | |||||||||
Issued 5/30/2019 | $ | 50,000 | 2.04 | % | $ | 940 | 6/1/2024 | 41 | |||||||||
Issued 3/2/2020 | $ | 50,000 | 0.98 | % | $ | 402 | 3/2/2025 | 50 | |||||||||
Issued 3/20/2020 | $ | 50,000 | 0.60 | % | $ | 208 | 3/20/2025 | 51 | |||||||||
Total | $ | 300,000 | $ | 3,446 |
Years Ended December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Derivatives designated as hedging instruments: | Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives | ||||||||||||||||
Interest rate products | $ | (9,168) | $ | (2,239) | $ | 1,027 |
Years Ended December 31, | |||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Derivatives not designated as hedging instruments: | Location of Gain (Loss) Recognized in Income on Derivatives |
Realized Gain (Loss)
Recognized in Income on Derivatives |
|||||||||||||||
Interest rate products | Non-interest income | $ | (20) | $ | (45) | $ | 14 | ||||||||||
Equity products | Non-interest income | $ | — | $ | (176) | $ | — | ||||||||||
Total | $ | (20) | $ | (221) | $ | 14 |
December 31, 2020 | ||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 |
Total Assets /
Liabilities at Fair Value |
||||||||||
Financial assets: | ||||||||||||||
Debt securities available-for-sale: | ||||||||||||||
Corporate bonds | $ | — | $ | 158,464 | $ | — | $ | 158,464 | ||||||
Trust preferred securities | — | 18,087 | — | 18,087 | ||||||||||
Agency collateralized mortgage obligations | — | 22,089 | — | 22,089 | ||||||||||
Agency mortgage-backed securities | — | 410,127 | — | 410,127 | ||||||||||
Agency debentures | — | 8,803 | — | 8,803 | ||||||||||
Interest rate swaps | — | 144,333 | — | 144,333 | ||||||||||
Total financial assets | $ | — | $ | 761,903 | $ | — | $ | 761,903 | ||||||
Financial liabilities: | ||||||||||||||
Interest rate swaps | $ | — | $ | 153,433 | $ | — | $ | 153,433 | ||||||
Total financial liabilities | $ | — | $ | 153,433 | $ | — | $ | 153,433 |
December 31, 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 | $ | — | $ | 175,418 | $ | — | $ | 175,418 | ||||||
Trust preferred securities | — | 18,260 | — | 18,260 | ||||||||||
Agency collateralized mortgage obligations | — | 27,193 | — | 27,193 | ||||||||||
Agency mortgage-backed securities | — | 18,509 | — | 18,509 | ||||||||||
Agency debentures | — | 9,402 | — | 9,402 | ||||||||||
Interest rate swaps | — | 55,241 | — | 55,241 | ||||||||||
Total financial assets | $ | — | $ | 304,023 | $ | — | $ | 304,023 | ||||||
Financial liabilities: | ||||||||||||||
Interest rate swaps | $ | — | $ | 57,473 | $ | — | $ | 57,473 | ||||||
Total financial liabilities | $ | — | $ | 57,473 | $ | — | $ | 57,473 |
December 31, 2020 | ||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 |
Total Assets
at Fair Value |
||||||||||
Loans measured for impairment, net | $ | — | $ | — | $ | 7,692 | $ | 7,692 | ||||||
Other real estate owned | — | — | 2,724 | 2,724 | ||||||||||
Total assets | $ | — | $ | — | $ | 10,416 | $ | 10,416 |
December 31, 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, 2020 | |||||||||||||||||||||||
(Dollars in thousands) | Fair Value |
Valuation Techniques (1) (2)
|
Significant Unobservable Inputs | Weighted Average Discount Rate | |||||||||||||||||||
Loans measured for impairment, net | $ | 7,692 | Collateral | Appraisal value and discount due to salability conditions | 23% | ||||||||||||||||||
Other real estate owned | $ | 2,724 | Collateral | Appraisal value and discount due to salability conditions | 12% |
December 31, 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 | 17% |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||
(Dollars in thousands) |
Fair Value
Level |
Carrying
Amount |
Estimated
Fair Value |
Carrying
Amount |
Estimated
Fair Value |
|||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 435,442 | $ | 435,442 | $ | 403,855 | $ | 403,855 | |||||||||||
Debt securities available-for-sale | 2 | 617,570 | 617,570 | 248,782 | 248,782 | |||||||||||||||
Debt securities held-to-maturity | 2 | 211,691 | 214,299 | 196,044 | 196,755 | |||||||||||||||
Federal Home Loan Bank stock | 2 | 13,284 | 13,284 | 24,324 | 24,324 | |||||||||||||||
Loans and leases held-for-investment, net | 3 | 8,202,788 | 8,199,922 | 6,563,451 | 6,548,432 | |||||||||||||||
Accrued interest receivable | 2 | 18,783 | 18,783 | 22,326 | 22,326 | |||||||||||||||
Investment management fees receivable, net | 2 | 7,935 | 7,935 | 7,560 | 7,560 | |||||||||||||||
Bank owned life insurance | 2 | 71,787 | 71,787 | 70,044 | 70,044 | |||||||||||||||
Other real estate owned | 3 | 2,724 | 2,724 | 4,250 | 4,250 | |||||||||||||||
Interest rate swaps | 2 | 144,333 | 144,333 | 55,241 | 55,241 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 2 | $ | 8,489,089 | $ | 8,510,799 | $ | 6,634,613 | $ | 6,648,546 | |||||||||||
Borrowings, net | 2 | 400,493 | 402,714 | 355,000 | 355,003 | |||||||||||||||
Interest rate swaps | 2 | 153,433 | 153,433 | 57,473 | 57,473 |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Debt Securities | Derivatives | Total | Debt Securities | Derivatives | Total | Debt Securities | Derivatives | Total | ||||||||||||||||||||||||||
Balance, beginning of period | $ | 2,756 | $ | (1,624) | $ | 1,132 | $ | (2,363) | $ | 1,032 | $ | (1,331) | $ | 172 | $ | 1,074 | $ | 1,246 | |||||||||||||||||
Change in unrealized holding gains (losses) | 3,997 | (6,981) | (2,984) | 5,356 | (1,701) | 3,655 | (2,913) | 773 | (2,140) | ||||||||||||||||||||||||||
Losses (gains) reclassified from other comprehensive income | (2,919) | 2,074 | (845) | (237) | (955) | (1,192) | 53 | (1,050) | (997) | ||||||||||||||||||||||||||
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) | 1,078 | (4,907) | (3,829) | 5,119 | (2,656) | 2,463 | (2,535) | (42) | (2,577) | ||||||||||||||||||||||||||
Balance, end of period | $ | 3,834 | $ | (6,531) | $ | (2,697) | $ | 2,756 | $ | (1,624) | $ | 1,132 | $ | (2,363) | $ | 1,032 | $ | (1,331) |
CONDENSED STATEMENTS OF FINANCIAL CONDITION | ||||||||
PARENT COMPANY ONLY | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2020 | 2019 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 31,856 | $ | 15,231 | ||||
Investment in subsidiaries | 821,719 | 606,904 | ||||||
Prepaid expenses and other assets | 6,604 | 109 | ||||||
Total assets | $ | 860,179 | $ | 622,244 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Borrowings, net | $ | 100,493 | $ | — | ||||
Other accrued expenses and other liabilities | 2,541 | 963 | ||||||
Shareholders’ equity | 757,145 | 621,281 | ||||||
Total liabilities and shareholders’ equity | $ | 860,179 | $ | 622,244 |
CONDENSED STATEMENTS OF INCOME | |||||||||||
PARENT COMPANY ONLY | |||||||||||
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Interest income | $ | 43 | $ | 219 | $ | 284 | |||||
Dividends received from subsidiaries | 7,005 | 13,000 | 3,000 | ||||||||
Total interest and dividend income | 7,048 | 13,219 | 3,284 | ||||||||
Interest expense | 3,855 | 1,159 | 2,334 | ||||||||
Net interest income | 3,193 | 12,060 | 950 | ||||||||
Non-interest income (loss) | — | 842 | (774) | ||||||||
Non-interest expense | 3,576 | 1,081 | 749 | ||||||||
Income (loss) before income taxes and undisbursed income of subsidiaries | (383) | 11,821 | (573) | ||||||||
Income tax expense | (1,226) | (467) | (490) | ||||||||
Income (loss) before undisbursed income of subsidiaries | 843 | 12,288 | (83) | ||||||||
Undisbursed income of subsidiaries | 44,391 | 47,905 | 54,507 | ||||||||
Net income | $ | 45,234 | $ | 60,193 | $ | 54,424 |
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||
PARENT COMPANY ONLY | |||||||||||
Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | ||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 45,234 | $ | 60,193 | $ | 54,424 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undisbursed income of subsidiaries | (44,391) | (47,905) | (54,507) | ||||||||
Net loss (gain) on equity securities | — | (842) | 775 | ||||||||
Amortization of deferred financing costs | 144 | 84 | 203 | ||||||||
Stock-based compensation expense | 317 | — | — | ||||||||
Increase (decrease) in accrued interest payable | 716 | (1,005) | (19) | ||||||||
Decrease (increase) in other assets | (1,334) | 1,539 | (784) | ||||||||
Increase (decrease) in other liabilities | 838 | (2,269) | 2,729 | ||||||||
Net cash provided by operating activities | 1,524 | 9,795 | 2,821 | ||||||||
Cash Flows from Investing Activities: | |||||||||||
Purchase of equity securities | — | — | (5,224) | ||||||||
Sale of equity securities | — | 13,679 | — | ||||||||
Net payments for investments in subsidiaries | (171,944) | (43,000) | (26,335) | ||||||||
Net cash used in investing activities | (171,944) | (29,321) | (31,559) | ||||||||
Cash Flows from Financing Activities: | |||||||||||
Net proceeds from issuance of subordinated notes payable | 95,349 | — | — | ||||||||
Repayment of subordinated debt | — | (35,000) | — | ||||||||
Net proceeds from issuance of stock | 100,002 | 77,611 | 38,468 | ||||||||
Net increase (decrease) in line of credit advances | 5,000 | (4,250) | (1,950) | ||||||||
Net proceeds from exercise of stock options | 506 | 900 | 1,667 | ||||||||
Cancellation of stock options | (2,484) | — | (945) | ||||||||
Purchase of treasury stock | (3,479) | (2,312) | (6,807) | ||||||||
Dividends paid on preferred stock | (7,849) | (5,753) | (2,120) | ||||||||
Net cash provided by financing activities | 187,045 | 31,196 | 28,313 | ||||||||
Net change in cash and cash equivalents | 16,625 | 11,670 | (425) | ||||||||
Cash and cash equivalents at beginning of year | 15,231 | 3,561 | 3,986 | ||||||||
Cash and cash equivalents at end of year | $ | 31,856 | $ | 15,231 | $ | 3,561 |
(Dollars in thousands) | December 31, 2020 | December 31, 2019 | ||||||
Assets: | ||||||||
Bank | $ | 9,819,719 | $ | 7,686,981 | ||||
Investment management | 86,150 | 83,295 | ||||||
Parent and other | (9,053) | (4,466) | ||||||
Total assets | $ | 9,896,816 | $ | 7,765,810 |
Year Ended December 31, 2020 | ||||||||||||||
(Dollars in thousands) | Bank |
Investment
Management |
Parent
and Other |
Consolidated | ||||||||||
Income statement data: | ||||||||||||||
Interest income | $ | 217,095 | $ | — | $ | — | $ | 217,095 | ||||||
Interest expense | 75,339 | — | 3,812 | 79,151 | ||||||||||
Net interest income (loss) | 141,756 | — | (3,812) | 137,944 | ||||||||||
Provision for credit losses | 19,400 | — | — | 19,400 | ||||||||||
Net interest income (loss) after provision for credit losses | 122,356 | — | (3,812) | 118,544 | ||||||||||
Non-interest income: | ||||||||||||||
Investment management fees | — | 32,727 | (692) | 32,035 | ||||||||||
Net gain on the sale and call of debt securities | 3,948 | — | — | 3,948 | ||||||||||
Other non-interest income | 21,164 | 58 | — | 21,222 | ||||||||||
Total non-interest income (loss) | 25,112 | 32,785 | (692) | 57,205 | ||||||||||
Non-interest expense: | ||||||||||||||
Intangible amortization expense | — | 1,944 | — | 1,944 | ||||||||||
Other non-interest expense | 90,541 | 27,735 | 2,883 | 121,159 | ||||||||||
Total non-interest expense | 90,541 | 29,679 | 2,883 | 123,103 | ||||||||||
Income (loss) before tax | 56,927 | 3,106 | (7,387) | 52,646 | ||||||||||
Income tax expense (benefit) | 8,330 | 308 | (1,226) | 7,412 | ||||||||||
Net income (loss) | $ | 48,597 | $ | 2,798 | $ | (6,161) | $ | 45,234 |
Year Ended December 31, 2019 | ||||||||||||||
(Dollars in thousands) | Bank |
Investment
Management |
Parent
and Other |
Consolidated | ||||||||||
Income statement data: | ||||||||||||||
Interest income | $ | 262,332 | $ | — | $ | 115 | $ | 262,447 | ||||||
Interest expense | 134,336 | — | 1,054 | 135,390 | ||||||||||
Net interest income (loss) | 127,996 | — | (939) | 127,057 | ||||||||||
Provision (credit) for credit losses | (968) | — | — | (968) | ||||||||||
Net interest income (loss) after provision for credit losses | 128,964 | — | (939) | 128,025 | ||||||||||
Non-interest income: | ||||||||||||||
Investment management fees | — | 36,889 | (447) | 36,442 | ||||||||||
Net gain on the sale and call of debt securities | 416 | — | — | 416 | ||||||||||
Other non-interest income | 15,051 | 31 | 842 | 15,924 | ||||||||||
Total non-interest income | 15,467 | 36,920 | 395 | 52,782 | ||||||||||
Non-interest expense: | ||||||||||||||
Intangible amortization expense | — | 2,009 | — | 2,009 | ||||||||||
Other non-interest expense | 77,945 | 31,560 | 635 | 110,140 | ||||||||||
Total non-interest expense | 77,945 | 33,569 | 635 | 112,149 | ||||||||||
Income (loss) before tax | 66,486 | 3,351 | (1,179) | 68,658 | ||||||||||
Income tax expense (benefit) | 8,015 | 918 | (468) | 8,465 | ||||||||||
Net income (loss) | $ | 58,471 | $ | 2,433 | $ | (711) | $ | 60,193 |
Year Ended December 31, 2018 | ||||||||||||||
(Dollars in thousands) | Bank |
Investment
Management |
Parent
and Other |
Consolidated | ||||||||||
Income statement data: | ||||||||||||||
Interest income | $ | 199,510 | $ | — | $ | 276 | $ | 199,786 | ||||||
Interest expense | 84,055 | — | 2,327 | 86,382 | ||||||||||
Net interest income (loss) | 115,455 | — | (2,051) | 113,404 | ||||||||||
Provision (credit) for loan losses | (205) | — | — | (205) | ||||||||||
Net interest income (loss) after provision for loan losses | 115,660 | — | (2,051) | 113,609 | ||||||||||
Non-interest income: | ||||||||||||||
Investment management fees | — | 37,939 | (292) | 37,647 | ||||||||||
Net loss on the sale and call of debt securities | (70) | — | — | (70) | ||||||||||
Other non-interest income (loss) | 11,112 | 1 | (773) | 10,340 | ||||||||||
Total non-interest income (loss) | 11,042 | 37,940 | (1,065) | 47,917 | ||||||||||
Non-interest expense: | ||||||||||||||
Intangible amortization expense | — | 1,968 | — | 1,968 | ||||||||||
Change in fair value of acquisition earn out | — | (218) | — | (218) | ||||||||||
Other non-interest expense | 67,190 | 31,760 | 457 | 99,407 | ||||||||||
Total non-interest expense | 67,190 | 33,510 | 457 | 101,157 | ||||||||||
Income (loss) before tax | 59,512 | 4,430 | (3,573) | 60,369 | ||||||||||
Income tax expense (benefit) | 5,856 | 579 | (490) | 5,945 | ||||||||||
Net income (loss) | $ | 53,656 | $ | 3,851 | $ | (3,083) | $ | 54,424 |
2020 | ||||||||||||||
(Dollars in thousands, except per share data) |
Fourth
Quarter |
Third
Quarter |
Second
Quarter |
First
Quarter |
||||||||||
Income statement data: | (unaudited) | |||||||||||||
Interest income | $ | 51,010 | $ | 50,222 | $ | 51,661 | $ | 64,202 | ||||||
Interest expense | 14,946 | 16,748 | 18,177 | 29,280 | ||||||||||
Net interest income | 36,064 | 33,474 | 33,484 | 34,922 | ||||||||||
Provision for credit losses | 2,972 | 7,430 | 6,005 | 2,993 | ||||||||||
Net interest income after provision for credit losses | 33,092 | 26,044 | 27,479 | 31,929 | ||||||||||
Non-interest income: | ||||||||||||||
Investment management fees | 8,564 | 8,095 | 7,738 | 7,638 | ||||||||||
Net gain on the sale and call of debt securities | 133 | 3,744 | 14 | 57 | ||||||||||
Other non-interest income | 5,306 | 5,050 | 5,245 | 5,621 | ||||||||||
Total non-interest income | 14,003 | 16,889 | 12,997 | 13,316 | ||||||||||
Non-interest expense: | ||||||||||||||
Intangible amortization expense | 478 | 478 | 486 | 502 | ||||||||||
Other non-interest expense | 33,958 | 30,949 | 27,610 | 28,642 | ||||||||||
Total non-interest expense | 34,436 | 31,427 | 28,096 | 29,144 | ||||||||||
Income before tax | 12,659 | 11,506 | 12,380 | 16,101 | ||||||||||
Income tax expense | 50 | 2,177 | 1,979 | 3,206 | ||||||||||
Net income | $ | 12,609 | $ | 9,329 | $ | 10,401 | $ | 12,895 | ||||||
Preferred stock dividends | 1,987 | 1,962 | 1,962 | 1,962 | ||||||||||
Net income available to common shareholders | $ | 10,622 | $ | 7,367 | $ | 8,439 | $ | 10,933 | ||||||
Earnings per common share: | ||||||||||||||
Basic | $ | 0.37 | $ | 0.26 | $ | 0.30 | $ | 0.39 | ||||||
Diluted | $ | 0.37 | $ | 0.26 | $ | 0.30 | $ | 0.38 |
2019 | ||||||||||||||
(Dollars in thousands, except per share data) |
Fourth
Quarter |
Third
Quarter |
Second
Quarter |
First
Quarter |
||||||||||
Income statement data: | (unaudited) | |||||||||||||
Interest income | $ | 65,474 | $ | 67,732 | $ | 66,339 | $ | 62,902 | ||||||
Interest expense | 32,408 | 35,416 | 35,036 | 32,530 | ||||||||||
Net interest income | 33,066 | 32,316 | 31,303 | 30,372 | ||||||||||
Provision (credit) for loan losses | 728 | (607) | (712) | (377) | ||||||||||
Net interest income after provision for loan losses | 32,338 | 32,923 | 32,015 | 30,749 | ||||||||||
Non-interest income: | ||||||||||||||
Investment management fees | 8,862 | 8,902 | 9,254 | 9,424 | ||||||||||
Net gain on the sale and call of debt securities | 70 | 206 | 112 | 28 | ||||||||||
Other non-interest income | 4,559 | 5,135 | 2,613 | 3,617 | ||||||||||
Total non-interest income | 13,491 | 14,243 | 11,979 | 13,069 | ||||||||||
Non-interest expense: | ||||||||||||||
Intangible amortization expense | 503 | 502 | 502 | 502 | ||||||||||
Change in fair value of acquisition earn out | — | — | — | — | ||||||||||
Other non-interest expense | 29,616 | 27,271 | 27,083 | 26,170 | ||||||||||
Total non-interest expense | 30,119 | 27,773 | 27,585 | 26,672 | ||||||||||
Income before tax | 15,710 | 19,393 | 16,409 | 17,146 | ||||||||||
Income tax expense | 1,106 | 3,059 | 1,718 | 2,582 | ||||||||||
Net income | $ | 14,604 | $ | 16,334 | $ | 14,691 | $ | 14,564 | ||||||
Preferred stock dividends | 1,962 | 1,962 | 1,150 | 679 | ||||||||||
Net income available to common shareholders | $ | 12,642 | $ | 14,372 | $ | 13,541 | $ | 13,885 | ||||||
Earnings per common share: | ||||||||||||||
Basic | $ | 0.45 | $ | 0.52 | $ | 0.49 | $ | 0.50 | ||||||
Diluted | $ | 0.44 | $ | 0.50 | $ | 0.47 | $ | 0.48 |
TRISTATE CAPITAL HOLDINGS, INC. | |||||||||||
Date: | February 25, 2021 | By: | /s/ James F. Getz | ||||||||
James F. Getz | |||||||||||
Chairman, President and Chief Executive Officer | |||||||||||
Date: | February 25, 2021 | By: | /s/ David J. Demas | ||||||||
David J. Demas | |||||||||||
Chief Financial Officer | |||||||||||
Date: | February 25, 2021 | By: | /s/ James F. Getz | ||||||||
James F. Getz | |||||||||||
Chairman, President, Chief Executive Officer and Director | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | February 25, 2021 | By: | /s/ David J. Demas | ||||||||
David J. Demas | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer) | |||||||||||
Date: | February 25, 2021 | By: | /s/ David L. Bonvenuto* | ||||||||
David L. Bonvenuto | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Anthony J. Buzzelli* | ||||||||
Anthony J. Buzzelli | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Helen Hanna Casey* | ||||||||
Helen Hanna Casey | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ E.H. (Gene) Dewhurst* | ||||||||
E.H. (Gene) Dewhurst | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ James J. Dolan* | ||||||||
James J. Dolan | |||||||||||
Director | |||||||||||
Date: | February 22, 2021 | By: | /s/ Christopher M. Doody* | ||||||||
Christopher M. Doody | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Audrey P. Dunning* | ||||||||
Audrey P. Dunning | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Brian S. Fetterolf* | ||||||||
Brian S. Fetterolf | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Michael R. Harris* | ||||||||
Michael R. Harris | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Kim A. Ruth* | ||||||||
Kim A. Ruth | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ A. William Schenck, III* | ||||||||
A. William Schenck, III | |||||||||||
Vice Chairman and Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ John B. Yasinsky* | ||||||||
John B. Yasinsky | |||||||||||
Director | |||||||||||
* | By: | /s/ James F. Getz | |||||||||
James F. Getz, Attorney-in-Fact
|
|||||||||||
•amendment to, clarification of, or change (including any announced prospective change) in, the laws or regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective after the initial issuance of the Series A Preferred Stock;
|
•proposed change in those laws or regulations that is announced or becomes effective after the initial issuance of the Series A Preferred Stock; or
|
•official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced or becomes effective after the initial issuance of the Series A Preferred Stock;
|
•the redemption date;
|
•the redemption price;
|
•if fewer than all shares of Series A Preferred Stock are to be redeemed, the number of shares of Series A Preferred Stock to be redeemed; and
|
•the manner in which holders of Series A Preferred Stock called for redemption may obtain payment of the redemption price in respect to those shares.
|
•any increase in the amount of authorized common stock or authorized preferred stock, or any increase or decrease in the number of shares of any series of preferred stock, or the authorization, creation and issuance of other classes or series of capital stock, in each case ranking on parity with or junior to the Series A Preferred Stock as to dividends or distribution of assets upon our liquidation, dissolution or winding up;
|
•a merger or consolidation of us with or into another entity in which the shares of the Series A Preferred Stock remain outstanding; and
|
•a merger or consolidation of us with or into another entity in which the shares of the Series A Preferred Stock are converted into or exchanged for preference securities of the surviving entity or any entity, directly or indirectly, controlling such surviving entity and such new preference securities have powers, preferences and special rights that are not materially less favorable than the Series A Preferred Stock.
|
•amendment to, clarification of, or change (including any announced prospective change) in, the laws or regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective after the initial issuance of the Series B Preferred Stock;
|
•proposed change in those laws or regulations that is announced or becomes effective after the initial issuance of the Series B Preferred Stock; or
|
•official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced or becomes effective after the initial issuance of the Series B Preferred Stock;
|
•the redemption date;
|
•the redemption price;
|
•if fewer than all shares of Series B Preferred Stock are to be redeemed, the number of shares of Series B Preferred Stock to be redeemed; and
|
•the manner in which holders of Series B Preferred Stock called for redemption may obtain payment of the redemption price in respect to those shares.
|
•any increase in the amount of authorized common stock or authorized preferred stock, or any increase or decrease in the number of shares of any series of preferred stock, or the authorization, creation and issuance of other classes or series of capital stock, in each case ranking on parity with or junior to the Series B Preferred Stock as to dividends or distribution of assets upon our liquidation, dissolution or winding up;
|
•a merger or consolidation of us with or into another entity in which the shares of the Series B Preferred Stock remain outstanding; and
|
•a merger or consolidation of us with or into another entity in which the shares of the Series B Preferred Stock are converted into or exchanged for preference securities of the surviving entity or any entity, directly or indirectly, controlling such surviving entity and such new preference securities have powers, preferences and special rights that are not materially less favorable than the Series A Preferred Stock.
|
•authorize the board of directors to fix and determine the relative rights and preferences, as between series, of any preferred or special class;
|
|||||||||||
•make any change in the preferences, limitations or special rights (other than preemptive rights or the right to vote cumulatively) of the shares of a class or series adverse to the class or series;
|
|||||||||||
•authorize a new class or series of shares having a preference as to dividends or assets which is senior to the shares of a class or series;
|
|||||||||||
•increase the number of authorized shares of any class or series having a preference as to dividends or assets which is senior in any respect to the shares of a class or series; or
|
|||||||||||
•make the outstanding shares of a class or series redeemable by a method that is not pro rata, by lot or otherwise equitable.
|
Name | State of Organization | ||||
TriState Capital Bank | Pennsylvania | ||||
Chartwell Investment Partners, LLC | Pennsylvania | ||||
Chartwell TSC Securities Corp. | Pennsylvania |
Name | State of Organization | ||||
Meadowood Asset Management, LLC | Pennsylvania | ||||
TSC Equipment Finance LLC | Pennsylvania |
Date: | February 25, 2021 | By: | /s/ David L. Bonvenuto | ||||||||
David L. Bonvenuto | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Anthony J. Buzzelli | ||||||||
Anthony J. Buzzelli | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Helen Hanna Casey | ||||||||
Helen Hanna Casey | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ E.H. (Gene) Dewhurst | ||||||||
E.H. (Gene) Dewhurst | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ James J. Dolan | ||||||||
James J. Dolan | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Christopher M. Doody | ||||||||
Christopher M. Doody | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Audrey P. Dunning | ||||||||
Audrey P. Dunning | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Brian S. Fetterolf | ||||||||
Brian S. Fetterolf | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Michael R. Harris | ||||||||
Michael R. Harris | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ Kim A. Ruth | ||||||||
Kim A. Ruth | |||||||||||
Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ A. William Schenck, III | ||||||||
A. William Schenck, III | |||||||||||
Vice Chairman and Director | |||||||||||
Date: | February 25, 2021 | By: | /s/ John B. Yasinsky | ||||||||
John B. Yasinsky | |||||||||||
Director |