Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | OCFC | ||
Entity Registrant Name | OCEANFIRST FINANCIAL CORP | ||
Entity Central Index Key | 1,004,702 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 47,988,933 | ||
Entity Public Float | $ 858,357 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 109,613 | $ 301,373 |
Securities available-for-sale (encumbered $22,086 at December 31, 2017 and $12,192 at December 31, 2016) | 90,281 | 20,775 |
Securities held-to-maturity, net (estimated fair value of $761,660 at December 31, 2017 and $589,568 at December 31, 2016) (encumbered $447,276 at December 31, 2017 and $492,147 at December 31, 2016) | 764,062 | 589,912 |
Federal Home Loan Bank of New York stock, at cost | 19,724 | 19,313 |
Loans receivable, net | 3,965,773 | 3,803,443 |
Mortgage loans held-for-sale | 241 | 1,551 |
Interest and dividends receivable | 14,254 | 11,989 |
Other real estate owned | 8,186 | 9,803 |
Premises and equipment, net | 101,776 | 71,385 |
Bank Owned Life Insurance | 134,847 | 132,172 |
Deferred tax asset | 1,922 | 38,880 |
Assets held for sale | 4,046 | 360 |
Other assets | 41,895 | 9,973 |
Core deposit intangible | 8,885 | 10,924 |
Goodwill | 150,501 | 145,064 |
Total assets | 5,416,006 | 5,166,917 |
Liabilities and Stockholders’ Equity | ||
Deposits | 4,342,798 | 4,187,750 |
Federal Home Loan Bank advances | 288,691 | 250,498 |
Securities sold under agreements to repurchase with retail customers | 79,668 | 69,935 |
Other borrowings | 56,519 | 56,559 |
Advances by borrowers for taxes and insurance | 11,156 | 14,030 |
Other liabilities | 35,233 | 16,242 |
Total liabilities | 4,814,065 | 4,595,014 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $.01 par value, 55,000,000 shares authorized, 33,566,772 shares issued and 32,596,893 and 32,136,892 shares outstanding at December 31, 2017 and December 31, 2016, respectively | 336 | 336 |
Additional paid-in capital | 354,377 | 364,433 |
Retained earnings | 271,023 | 238,192 |
Accumulated other comprehensive loss | (5,349) | (5,749) |
Less: Unallocated common stock held by Employee Stock Ownership Plan | (2,479) | (2,761) |
Treasury stock, 969,879 and 1,429,880 shares at December 31, 2017 and December 31, 2016, respectively | (15,967) | (22,548) |
Common stock acquired by Deferred Compensation Plan | (84) | (313) |
Deferred Compensation Plan Liability | 84 | 313 |
Total stockholders’ equity | 601,941 | 571,903 |
Total liabilities and stockholders’ equity | $ 5,416,006 | $ 5,166,917 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Securities available-for-sale, encumbered | $ 22,086,000 | $ 12,192,000 |
Securities held-to-maturity, net estimated fair value | 761,660,000 | 589,568,000 |
Securities held-to-maturity, net encumbered | $ 447,276,000 | $ 492,147,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 33,566,772 | 33,566,772 |
Common stock, shares outstanding | 32,596,893 | 32,136,892 |
Treasury stock, shares | 969,879 | 1,429,880 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
Loans | $ 170,588 | $ 122,962 | $ 77,694 |
Mortgage-backed securities | 11,108 | 6,697 | 6,051 |
Investment securities and other | 7,133 | 3,766 | 2,118 |
Total interest income | 188,829 | 133,425 | 85,863 |
Interest expense: | |||
Deposits | 12,336 | 7,517 | 4,301 |
Borrowed funds | 7,275 | 5,646 | 4,733 |
Total interest expense | 19,611 | 13,163 | 9,034 |
Net interest income | 169,218 | 120,262 | 76,829 |
Provision for loan losses | 4,445 | 2,623 | 1,275 |
Net interest income after provision for loan losses | 164,773 | 117,639 | 75,554 |
Other income: | |||
Bankcard services revenue | 6,965 | 4,833 | 3,537 |
Wealth management revenue | 2,150 | 2,324 | 2,187 |
Fees and service charges | 15,058 | 10,758 | 8,392 |
Net loss from other real estate operations | (874) | (856) | (149) |
Income from Bank Owned Life Insurance | 3,299 | 2,230 | 1,501 |
Other | 474 | 1,123 | 958 |
Total other income | 27,072 | 20,412 | 16,426 |
Operating expenses: | |||
Compensation and employee benefits | 60,100 | 47,105 | 31,946 |
Occupancy | 10,657 | 8,332 | 5,722 |
Equipment | 6,769 | 5,104 | 3,725 |
Marketing | 2,678 | 1,882 | 1,516 |
Federal deposit insurance | 2,564 | 2,825 | 2,072 |
Data processing | 8,849 | 7,577 | 4,731 |
Check card processing | 3,561 | 2,210 | 1,815 |
Professional fees | 3,995 | 2,848 | 1,865 |
Other operating expense | 10,810 | 7,676 | 5,484 |
Amortization of core deposit intangible | 2,039 | 623 | 21 |
Federal Home Loan Bank advance prepayment fee | 136 | 0 | |
Branch consolidation expenses | 6,205 | 0 | |
Merger related expenses | 8,293 | 16,534 | 1,878 |
Total operating expenses | 126,520 | 102,852 | 60,775 |
Income before provision for income taxes | 65,325 | 35,199 | 31,205 |
Provision for income taxes | 22,855 | 12,153 | 10,883 |
Net income | $ 42,470 | $ 23,046 | $ 20,322 |
Basic earnings per share (in dollars per share) | $ 1.32 | $ 1 | $ 1.22 |
Diluted earnings per share (in dollars per share) | $ 1.28 | $ 0.98 | $ 1.21 |
Average basic shares outstanding | 32,113 | 23,093 | 16,600 |
Average diluted shares outstanding | 33,125 | 23,526 | 16,811 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 42,470 | $ 23,046 | $ 20,322 |
Other comprehensive income: | |||
Unrealized (loss) gain on securities (net of tax benefit of $204 in 2017, tax benefit of $221 in 2016, and tax expense of $38 in 2015) | (295) | (321) | 55 |
Reclassification adjustment for losses included in net income (net of tax benefit of $5 in 2016) | 7 | 0 | |
Accretion of unrealized loss on securities reclassified to held-to-maturity (net of tax expense of $480, $556 and $562 in 2017, 2016 and 2015, respectively) | 695 | 806 | 813 |
Total other comprehensive income | 400 | 492 | 868 |
Total comprehensive income | $ 42,870 | $ 23,538 | $ 21,190 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on securities, tax expense (benefit) | $ (204) | $ (221) | $ 38 |
Reclassification adjustment for gains included in net income, tax expense | 0 | (5) | 0 |
Accretion of unrealized loss on securities reclassified to held-to-maturity, tax expense | $ 480 | $ 556 | $ 562 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Employee Stock Ownership Plan | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Gain | Treasury Stock | Common Stock Acquired by Deferred Compensation Plan | Deferred Compensation Plan Liability |
Beginning Balance at Dec. 31, 2014 | $ 218,259 | $ (3,330) | $ 336 | $ 265,260 | $ 217,714 | $ (7,109) | $ (254,612) | $ (304) | $ 304 |
Net income | 20,322 | 20,322 | |||||||
Other comprehensive income, net of tax | 868 | 868 | |||||||
Stock awards | 1,300 | 1,300 | |||||||
Tax benefit of stock plans | 32 | 32 | |||||||
Treasury stock allocated to restricted stock plan | 1,214 | (144) | (1,070) | ||||||
Issued 660,098 and 14,547,452 treasury shares to finance acquisition in 2015 and 2016 respectively | 11,818 | 1,633 | 10,185 | ||||||
Allocation of ESOP stock | 603 | 285 | 318 | ||||||
Cash dividend $0.52, $0.54 and $0.60 per share for 2015, 2016 and 2017 respectively | (8,693) | (8,693) | |||||||
Exercise of stock options | 396 | (59) | 455 | ||||||
Purchase of 373,594 and 90,000 shares of common stock in 2015 and 2016 respectively | (6,459) | (6,459) | |||||||
Sale/Purchase of stock for the deferred compensation plan, net | (10) | 10 | |||||||
Ending Balance at Dec. 31, 2015 | 238,446 | (3,045) | 336 | 269,757 | 229,140 | (6,241) | (251,501) | (314) | 314 |
Net income | 23,046 | 23,046 | |||||||
Other comprehensive income, net of tax | 492 | 492 | |||||||
Stock awards | 1,505 | 1,505 | |||||||
Tax benefit of stock plans | 62 | 62 | |||||||
Treasury stock allocated to restricted stock plan | 1,046 | (101) | (945) | ||||||
Issued 660,098 and 14,547,452 treasury shares to finance acquisition in 2015 and 2016 respectively | 318,200 | 91,690 | 226,510 | ||||||
Allocation of ESOP stock | 657 | 284 | 373 | ||||||
Cash dividend $0.52, $0.54 and $0.60 per share for 2015, 2016 and 2017 respectively | (12,616) | (12,616) | |||||||
Exercise of stock options | 3,989 | (1,277) | 5,266 | ||||||
Purchase of 373,594 and 90,000 shares of common stock in 2015 and 2016 respectively | (1,878) | (1,878) | |||||||
Sale/Purchase of stock for the deferred compensation plan, net | 1 | (1) | |||||||
Ending Balance at Dec. 31, 2016 | 571,903 | (2,761) | 336 | 364,433 | 238,192 | (5,749) | (22,548) | (313) | 313 |
Net income | 42,470 | 42,470 | |||||||
Other comprehensive income, net of tax | 400 | 400 | |||||||
Stock awards | 2,181 | 2,181 | |||||||
Effect of adopting Accounting Standards Update (“ASU”) | Accounting Standards Update 2016-09 | 0 | (11,129) | 11,129 | ||||||
Treasury stock allocated to restricted stock plan | (1,745) | 822 | 923 | ||||||
Allocation of ESOP stock | 919 | 282 | 637 | ||||||
Cash dividend $0.52, $0.54 and $0.60 per share for 2015, 2016 and 2017 respectively | (19,286) | (19,286) | |||||||
Exercise of stock options | 3,354 | (2,304) | 5,658 | ||||||
Sale/Purchase of stock for the deferred compensation plan, net | 229 | (229) | |||||||
Ending Balance at Dec. 31, 2017 | $ 601,941 | $ (2,479) | $ 336 | $ 354,377 | $ 271,023 | $ (5,349) | $ (15,967) | $ (84) | $ 84 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retained Earnings | |||
Cash dividend per share | $ 0.60 | $ 0.54 | $ 0.52 |
Treasury Stock | |||
Issued treasury shares to finance acquisition | 14,547,452 | 660,098 | |
Purchase of common stock, shares | 90,000 | 551,291 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 42,470 | $ 23,046 | $ 20,322 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of premises and equipment | 6,303 | 4,786 | 3,335 |
Allocation of ESOP stock | 919 | 657 | 603 |
Stock awards | 2,181 | 1,505 | 1,300 |
Tax benefit of stock plans | 0 | 62 | 32 |
Net excess tax benefit on stock compensation | (1,823) | 0 | 0 |
Amortization of core deposit intangible | 2,039 | 623 | 21 |
Net accretion of purchase accounting adjustments | (8,216) | (4,505) | (317) |
Amortization of servicing asset | 85 | 157 | 245 |
Net premium amortization in excess of discount accretion on securities | 3,216 | 1,656 | 1,991 |
Net amortization of deferred costs and discounts on borrowings | 74 | 0 | 0 |
Net amortization (accretion) of deferred fees and discounts on loans | 509 | (274) | 55 |
Provision for loan losses | 4,445 | 2,623 | 1,275 |
Deferred tax provision | 35,440 | 5,798 | 1,441 |
Net loss (gain) on sales of other real estate owned | 1,119 | 138 | (269) |
Write down of fixed assets held for sale to net realizable value | 6,084 | 0 | 0 |
Net loss on sales of fixed assets | 150 | 38 | 0 |
Net gain on sales of loans | (100) | (986) | (822) |
Net loss on sales of investment securities available for sale | 12 | 0 | |
Proceeds from sale of mortgage servicing rights | 0 | 0 | 192 |
Net gain on sale of loan servicing | 0 | 0 | (111) |
Proceeds from sales of mortgage loans held-for-sale | 5,282 | 50,075 | 49,436 |
Mortgage loans originated for sale | (3,872) | (47,943) | (47,110) |
Increase in value of Bank Owned Life Insurance | (3,299) | (2,230) | (1,501) |
(Increase) decrease in interest and dividends receivable | (2,265) | (200) | 68 |
(Increase) decrease in other assets | (5,375) | 18,612 | 1,670 |
Decrease in other liabilities | (5,235) | (20,226) | (3,525) |
Total adjustments | 37,661 | 10,378 | 8,009 |
Net cash provided by operating activities | 80,131 | 33,424 | 28,331 |
Cash flows from investing activities: | |||
Net (increase) decrease in loans receivable | (138,271) | 106,371 | (146,416) |
Purchases of loans receivable | (37,337) | (37,561) | (22,054) |
Proceeds from sale of under-performing loans | 11,186 | 29,647 | |
Proceeds from sales of investment securities available-for-sale | 41,853 | 0 | |
Purchases of investment securities available-for-sale | (69,987) | (10,021) | (9,972) |
Purchases of investment securities held-to-maturity | (125,324) | (6,006) | (16,349) |
Purchases of mortgage-backed securities held-to-maturity | (165,501) | (59,590) | (10,312) |
Proceeds from maturities and calls of investment securities available-for-sale | 18,506 | 0 | |
Proceeds from maturities and calls of investment securities held-to-maturity | 18,233 | 53,964 | 46,292 |
Proceeds from maturities and calls of mortgage backed securities held-to-maturity | 0 | 6,394 | 0 |
Principal repayments on mortgage-backed securities held-to-maturity | 96,383 | 73,470 | 61,081 |
Proceeds from Bank Owned Life Insurance | 624 | 310 | 0 |
Proceeds from the redemption of Federal Home Loan Bank of New York stock | 19,738 | 32,168 | 38,663 |
Purchases of Federal Home Loan Bank of New York stock | (20,149) | (23,571) | (39,157) |
Net proceeds from sales of other real estate owned | 3,880 | 3,744 | 3,342 |
Purchases of premises and equipment | (48,698) | (6,670) | (3,891) |
Cash acquired, net of cash paid for branch acquisition | 0 | 16,727 | |
Cash acquired, net of cash consideration paid for acquisitions | 0 | 31,965 | 3,703 |
Net cash (used in) provided by investing activities | (455,223) | 271,700 | (95,070) |
Cash flows from financing activities: | |||
Increase in deposits | 155,849 | 131,308 | 73,284 |
Increase (decrease) in short-term borrowings | 39,733 | (175,137) | (27,740) |
Proceeds from Federal Home Loan Bank advances | 10,000 | 55,161 | 55,000 |
Repayments of Federal Home Loan Bank advances | (1,922) | (74,153) | (6,853) |
Net proceeds from issuance of subordinated notes | 0 | 33,898 | 0 |
Repayments of other borrowings | 0 | (10,000) | (5,000) |
(Decrease) increase in advances by borrowers for taxes and insurance | (2,874) | 2,286 | 798 |
Exercise of stock options | 3,354 | 3,989 | 396 |
Payment of employee taxes withheld from stock awards | (1,522) | (555) | (165) |
Purchase of treasury stock | 0 | (1,878) | (6,459) |
Dividends paid | (19,286) | (12,616) | (8,693) |
Net cash provided by (used in) financing activities | 183,332 | (47,697) | 74,568 |
Net (decrease) increase in cash and due from banks | (191,760) | 257,427 | 7,829 |
Cash and due from banks at beginning of year | 301,373 | 43,946 | 36,117 |
Cash and due from banks at end of year | 109,613 | 301,373 | 43,946 |
Supplemental disclosure of cash flow information: | |||
Interest | 20,219 | 13,201 | 8,928 |
Income taxes | 6,008 | 10,912 | 10,562 |
Non-cash investing activities: | |||
Accretion of unrealized loss on securities reclassified to held-to-maturity | 1,145 | 1,406 | 1,375 |
Loans charged-off, net | 3,907 | 4,162 | 870 |
Transfer of premises and equipment to assets held-for-sale | 5,729 | 0 | 0 |
Transfer of loans receivable to other real estate owned | 3,726 | 1,833 | 6,979 |
Non-cash assets acquired: | |||
Securities | 0 | 305,139 | 6,758 |
Federal Home Loan Bank of New York stock | 0 | 7,932 | 314 |
Loans | 0 | 1,929,986 | 121,466 |
Premises & equipment | 0 | 41,067 | |
Other real estate owned | 0 | 2,727 | 257 |
Deferred tax asset | 0 | 21,878 | 3,227 |
Other assets | 0 | 97,140 | 8,279 |
Goodwill and other intangible assets, net | 0 | 159,649 | 2,099 |
Total non-cash assets acquired | 0 | 2,565,518 | 142,400 |
Liabilities assumed: | |||
Deposits | 0 | 2,123,440 | 123,346 |
Federal Home Loan Bank advances | 0 | 128,160 | 6,800 |
Other liabilities | 0 | 27,679 | 309 |
Total liabilities assumed | 0 | 2,279,279 | 130,455 |
Total consideration for acquisition | $ 0 | $ 286,239 | $ 11,945 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of OceanFirst Financial Corp. (the “Company”) and its wholly-owned subsidiaries, OceanFirst Bank (the “Bank”) and OceanFirst Risk Management, Inc., and the Bank’s wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., and its wholly-owned subsidiary OceanFirst Management Corp., and its wholly-owned subsidiary OceanFirst Realty Corp., OceanFirst Services, LLC and its wholly-owned subsidiary OFB Reinsurance, Ltd., 975 Holdings, LLC, Hooper Holdings, LLC., TRREO Holdings LLC, Casaba Real Estate Holdings Corporation, and Cohensey Bridge, L.L.C.. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts previously reported have been reclassified to conform to the current year’s presentation. Business The Bank provides a range of community banking services to customers through a network of branches and offices in central and southern New Jersey. The Bank is subject to competition from other financial institutions; it is also subject to the regulations of certain regulatory agencies and undergoes periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The preparation of the accompanying consolidated financial statements in conformity with these accounting principles requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the evaluation of securities and goodwill for other-than-temporary impairment. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Immaterial Correction of an Error During the fourth quarter of 2017, management identified an immaterial correction of an error related to the classification of a mutual fund with no stated maturity that was acquired in a previous business combination and was inappropriately classified as held to maturity in the 2016 consolidated financial statements. In order to correct this immaterial error, management has revised the 2016 consolidated financial statements and footnotes to report these securities as available-for-sale. Cash Equivalents Cash equivalents consist of interest-bearing deposits in other financial institutions and loans of Federal funds. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Securities Securities include securities held-to-maturity and securities available-for-sale. Management determines the appropriate classification at the time of purchase. If management has the positive intent not to sell and the Company would not be required to sell prior to maturity, the securities are classified as held-to-maturity securities. Such securities are stated at amortized cost. During 2013, the Company transferred $536.0 million of previously designated available-for-sale securities to held-to-maturity designation at estimated fair value. The Company has the ability and intent to hold these securities as an investment until maturity or call. The securities transferred had an unrealized loss of $13.3 million at the time of transfer which continues to be reflected in accumulated other comprehensive income, net of subsequent amortization, which is being recognized over the remaining life of the securities. Securities in the available-for-sale category are securities which the Company may sell prior to maturity as part of its asset/liability management strategy. Such securities are carried at estimated fair value and unrealized gains and losses, net of related tax effect, are excluded from earnings, but are included as a separate component of stockholders’ equity and as part of comprehensive income. Discounts and premiums on securities are accreted or amortized using the level-yield method over the estimated lives of the securities, including the effect of prepayments. Gains or losses on the sale of such securities are included in other income using the specific identification method. Other-Than-Temporary Impairment on Securities One of the significant estimates related to securities is the evaluation for other-than-temporary impairment. If a determination is made that a debt security is other-than-temporarily impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as an other-than-temporary impairment charge in non-interest income as a component of gain (loss) on securities, net. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income, net of tax. The evaluation of securities for impairment is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether declines in the estimated fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions, the issuer’s financial condition and/or future prospects, the effects of changes in interest rates or credit spreads and the expected recovery period. On a quarterly basis the Company evaluates the securities portfolio for other-than-temporary impairment. Securities that are in an unrealized loss position are reviewed to determine if an other-than-temporary impairment is present based on certain quantitative factors. The primary factors considered in evaluating whether a decline in value is other-than-temporary include: (a) the length of time and extent to which the estimated fair value has been less than cost or amortized cost and the expected recovery period of the security, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments and (d) whether the Company intends to sell the security and whether it is more likely than not that the Company will not be required to sell the security. Loans Receivable Loans receivable, other than loans held-for-sale, are stated at unpaid principal balance, plus unamortized premiums less unearned discounts, net of deferred loan origination and commitment fees and costs, and the allowance for loan losses. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income using the level-yield method over the contractual life of the specifically identified loans, adjusted for actual prepayments. For each loan class, a loan is considered past due when a payment has not been received in accordance with the contractual terms. Loans which are more than 90 days past due, including impaired loans, and other loans in the process of foreclosure are placed on non-accrual status. Interest income previously accrued on these loans, but not yet received, is reversed in the current period. Any interest subsequently collected is credited to income in the period of recovery only after the full principal balance has been brought current. A loan is returned to accrual status when all amounts due have been received and the remaining principal balance is deemed collectible. A loan is considered impaired when it is deemed probable that the Company will not collect all amounts due according to the contractual terms of the loan agreement. The Company has defined the population of impaired loans to be all non-accrual commercial real estate, multi-family, land, construction and commercial and industrial loans in excess of $250,000 . Impaired loans are individually assessed to determine that the loan’s carrying value is not in excess of the estimated fair value of the collateral or the present value of the loan’s expected future cash flows. Smaller balance homogeneous loans that are collectively evaluated for impairment, such as residential mortgage loans and consumer loans, are specifically excluded from the impaired loan portfolio, except when they are modified in a trouble debt restructuring. Loan losses are charged-off in the period the loans, or portion, thereof are deemed uncollectible, generally after the loan becomes 120 days delinquent. The Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated fair value of the underlying collateral, less cost to sell, if it is determined that it is probable that recovery will come primarily from the sale of the collateral. Purchased credit-impaired (“PCI”) loans are acquired at a discount that is due, in part, to credit quality. PCI loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Interest income on loans acquired at a discount is based on the acquired loans’ expected cash flows. The acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flow. The difference between the undiscounted cash flows expected at acquisition and the investment in the loans, or the “accretable yield”, is recognized as interest income utilizing the level-yield method over the life of each pool. Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment of the yield on the pool over its remaining life, while decreases in expected cash flows are recognized as impairment through a loss provision and an increase in the allowance for loan losses. Therefore, the allowance for loan losses on these impaired pools reflect only losses incurred after the acquisition (representing the present value of all cash flows that were expected at acquisition but currently are not expected to be received). The Bank periodically evaluates the remaining contractual required payments due and estimates of cash flows expected to be collected. These evaluations require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Changes in the contractual required payments due and estimated cash flows expected to be collected may result in changes in the accretable yield and non-accretable difference or reclassifications between accretable yield and the non-accretable difference. For the pools with better than expected cash flows, the forecasted increase is recorded as an additional accretable yield that is recognized as a prospective increase to interest income on loans. Loans Held for Sale The Company may sell part of its mortgage loan originations in order to manage interest rate risk and liquidity. Prior to 2017, the Bank had generally sold fixed-rate mortgage loans with final maturities in excess of 15 years . However, with few exceptions, since the beginning of 2017, the Bank generally retains newly originated mortgage loans in its portfolio. In determining whether to retain mortgages, management considers the Company’s overall interest rate risk position, the volume of such loans, the loan yield and the types and amount of funding sources. The Company may also retain mortgage loan production in order to improve yields and increase balance sheet leverage. In addition, management periodically considers the sale of commercial and other loans as part of its management of credit risk. Loans held for sale are carried at the lower of unpaid principal balance, net, or estimated fair value on an aggregate basis. Estimated fair value is determined based on bid quotations from securities dealers. Allowance for Loan Losses The allowance for loan losses is a valuation account that reflects probable incurred losses in the loan portfolio. The adequacy of the allowance for loan losses is based on management’s evaluation of the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic and regulatory conditions, as well as organizational changes. Additions to the allowance arise from charges to operations through the provision for loan losses or from the recovery of amounts previously charged-off. The allowance is reduced by loan charge-offs. The allowance for loan losses is maintained at an amount management considers sufficient to provide for probable losses. A cquired loans are marked to fair value on the date of acquisition and are evaluated on a quarterly basis to ensure the necessary purchase accounting updates are made in parallel with the allowance for loan loss calculation. Acquired loans that have been renewed since acquisition are included in the allowance for loan loss calculation since these loans have been underwritten to the Bank’s guidelines. Acquired loans that have not been renewed since acquisition, or that have a PCI mark, are excluded from the allowance for loan loss calculation. The Bank calculates a general valuation allowance for these excluded acquired loans and compares that to the remaining general credit and interest rate marks. To the extent the remaining general credit and interest rate marks exceed the calculated general valuation allowance, no additional reserve is required. If the calculated general valuation allowance exceeds the remaining general credit and interest rate marks, the Bank would record an adjustment to the extent necessary. The Bank’s allowance for loan losses includes specific allowances and a general allowance, each updated on a quarterly basis. A specific allowance is determined for all impaired loans (excluding PCI loans). The Bank defines an impaired loan as all non-accrual commercial real estate, multi-family, land, construction and commercial loans in excess of $250,000. Impaired loans also include all loans modified as troubled debt restructurings. For collateral dependent loans, the specific allowance represents the difference between the Bank’s recorded investment in the loan, net of any interim charge-offs, and the estimated fair value of the collateral, less estimated selling costs. Impairment for all other impaired loans is calculated using the present value of the expected future cash flows. If a loan becomes 90 days delinquent, the Bank obtains an updated collateral appraisal. For residential real estate loans, the appraisal is updated annually if the loan remains delinquent for an extended period. For non-accrual commercial real estate loans, the Bank assesses whether there has likely been an adverse change in the collateral value supporting the loan. The Bank utilizes information based on its knowledge of changes in real estate conditions in its lending area to identify whether a possible deterioration of collateral value has occurred. Based on the severity of the changes in market conditions, management determines if an updated commercial real estate appraisal is warranted or if downward adjustments to the previous appraisal are warranted. If it is determined that the deterioration of the collateral value is significant enough to warrant ordering a new appraisal, an estimate of the downward adjustments to the existing appraised value is used in assessing if additional specific reserves are necessary until the updated appraisal is received. A general allowance is determined for all loans that are not individually evaluated for impairment (excluding acquired loans that have not been renewed under the Bank’s underwriting criteria). In determining the level of the general allowance, the Bank segments the loan portfolio into the following loan segments: residential real estate; consumer; investor-owned commercial real estate; owner-occupied commercial real estate; and commercial and industrial. The portfolio segments are further segmented by delinquency status and risk rating (Pass, Special Mention, Substandard and Doubtful). An estimated loss factor is then applied to each delinquency status and risk rating category. To determine the loss factor, the Bank utilizes historical loss experience as a percent of the outstanding loan principal balance adjusted for certain qualitative factors and the loss emergence period. The Bank’s historical loss experience is based on a rolling 24 -month look-back period for each portfolio segment. The look-back period was selected based on (1) management’s judgment that this period captures sufficient loss events (in both dollar terms and number of individual events) to be relevant; and (2) that the Bank’s underwriting criteria and risk characteristics have remained relatively stable throughout this period. The historical loss experience is adjusted for certain qualitative factors including, but not limited to, (1) delinquency trends, (2) net charge-off trends, (3) nature and volume of the loan portfolio, (4) loan policies and underwriting standards, (5) experience and ability of lending personnel, (6) concentrations of credit, (7) loan review system, and external factors such as (8) changes in current economic conditions, (9) local competition and (10) regulation. Economic factors that the Bank considered in its estimate of the allowance for loan losses include: local and regional trends in economic growth, unemployment and real estate values. The Bank considers the applicability of each of these qualitative factors in estimating the general allowance for each portfolio segment. Each quarter, the Bank considers the current conditions for each of the qualitative factors, as well as a forward looking view on trends and events, to support an assessment unique to each portfolio segment. The Bank calculates and analyzes the loss emergence period on an annual basis or more frequently if conditions warrant. The Bank’s methodology is to use loss events in the past eight quarters to determine the loss emergence period for each loan segment. The loss emergence period is specific to each loan segment. It represents the amount of time that has elapsed between (1) the occurrence of a loss event, which resulted in a potential loss and (2) the confirmation of the potential loss, when the Bank records an initial charge-off or downgrades the risk-rating of the loan to substandard. The Bank also maintains an unallocated portion of the allowance for loan losses. The primary purpose of the unallocated component is to account for the inherent factors that cannot be practically assigned to individual loss categories, including the periodic update of appraisals, subjectivity of the Bank’s credit review and risk rating process, and continued economic uncertainty that may not be fully captured in the Bank’s loss history or the qualitative factors. Upon completion of the aforementioned procedures, an overall management review is performed including ratio analyses to identify divergent trends compared with the Bank’s own historical loss experience, the historical loss experience of the Bank’s peer group and management’s understanding of general regulatory expectations. Based on that review, management may identify issues or factors that previously had not been considered in the estimation process, which may warrant further analysis or adjustments to estimated loss factors or the allowance for loan losses. Reserve for Repurchased Loans and Loss Sharing Obligations The reserve for repurchased loans and loss sharing obligations relates to potential losses on loans sold which may have to be repurchased due to a violation of representations and warranties and an estimate of the Bank’s obligation under a loss sharing arrangement for loans sold to the Federal Home Loan Bank (“FHLB”). Provisions for losses are charged to gain on sale of loans and credited to the reserve while actual losses are charged to the reserve. The reserve represents the Company’s estimate of the total losses expected to occur and is considered to be adequate by management based upon the Company’s evaluation of the potential exposure related to the loan sale agreements over the period of repurchase risk. The reserve for repurchased loans and loss sharing obligations is included in other liabilities on the Company’s consolidated statement of financial condition. Other Real Estate Owned Other real estate owned (“OREO”) is carried at the lower of cost or estimated fair value, less estimated costs to sell. When a property is acquired, the excess of the loan balance over estimated fair value is charged to the allowance for loan losses. Operating results from other real estate owned, including rental income, operating expenses, gains and losses realized from the sales of other real estate owned and subsequent write-downs are recorded as incurred. Premises and Equipment Land is carried at cost and premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation and amortization or, in the case of acquired premises, the value on the acquisition date. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or leases. Generally, depreciable lives are as follows: computer equipment: 3 years ; furniture, fixtures and other electronic equipment: 5 years ; building improvements: 10 years ; and buildings: 30 years . Repair and maintenance items are expensed and improvements are capitalized. Gains and losses on dispositions are reflected in current operations. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Any interest and penalties on taxes payable are included as part of the provision for income taxes. Impact of New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” and subsequent related Updates modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other guidance. The updates also requires new qualitative and quantitative disclosures, including disaggregation of revenues and descriptions of performance obligations. The Company will adopt the guidance in first quarter of 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other United States Generally Accepted Accounting Principles (“U.S. GAAP”), the new revenue recognition standard does not have a material impact on the Company’s consolidated financial statements. The Company’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts. No material changes related to the timing or amount of revenue recognition have been identified. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities.” The main objective in developing this new ASU is to enhance the reporting model for financial instruments to provide users of financial statements with more useful information. The update requires equity investments to be measured at fair value with changes in fair value recognized in net income. It simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a quantitative assessment to identify impairment. The amendment eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. It requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Financial assets and financial liabilities are to be presented separately by measurement category and the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated with other deferred tax assets. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact that the guidance will have on the Company’s consolidated financial statements. The Company has begun its evaluation of the amended guidance including the potential impact on its consolidated financial statements. To date, the Company has identified its leased real estate as within the scope of the guidance. The Company continues to evaluate the impact of the guidance, including determining whether other contracts exist that are deemed to be in scope. As such, no conclusions have yet been reached regarding the potential impact of adoption on the Company’s consolidated financial statements, although total assets and total liabilities will increase by similar amounts. Further, to date, no guidance has been issued by either the Company’s or the Bank’s primary regulator with respect to how the impact of the amended standard is to be treated for regulatory capital purposes. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718).” The objective of the Update is to simplify accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the Update, all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. An entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current accounting) or account for forfeitures when they occur. Within the Cash Flow Statement, excess tax benefits should be classified along with other income tax cash flows as an operating activity, and cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. The amendments in this Update were effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted this ASU on January 1, 2017, resulting in an equity reclassification of $11.1 million and an income statement benefit through a $1.8 million decrease in income tax expense. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company has begun its evaluation of the amended guidance including the potential impact on its consolidated financial statements. As a result of the required change in approach toward determining estimated credit losses from the current “incurred loss” model to one based on estimated cash flows over a loan’s contractual life, adjusted for prepayments (a “life of loan” model), the Company expects that the new guidance will result in an increase in the allowance for loan losses, particularly for longer duration loan portfolios. The Company also expects that the new guidance may result in an allowance for debt securities. In both cases, the extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Further, to date, no guidance has been issued by either the Company’s or the Bank’s primary regulator with respect to how the impact of the amended standard is to be treated for regulatory purposes. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | 2: Regulatory Matters Applicable regulations require the Bank to maintain minimum levels of regulatory capital. Under the regulations in effect at December 31, 2017 , the Bank was required to maintain a minimum ratio of Tier 1 capital to total adjusted assets of 4.0% ; a minimum ratio of common equity T ier 1 capital to risk-weighted assets of 5.75% ; a minimum ratio of Tier 1 capital to risk weighted assets of 7.25% ; and, a minimum ratio of total (core and supplementary) capital to risk-weighted assets of 9.25% . With its conversion to a bank holding company on January 31, 2018, the Company became subject to substantially similar consolidated capital requirements imposed by FRB regulation. Under the regulatory framework for prompt corrective action, Federal regulators are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution. Such actions could have a direct material effect on the institution’s financial statements. The regulations establish a framework for the classification of banking institutions into five categories: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Generally an institution is considered well-capitalized if it has a Tier 1 capital ratio of 5.0% ; a common equity Tier1 risk-based ratio of at least 6.5% ; a Tier 1 risk-based ratio of at least 8.0% ; and a total risk-based capital ratio of at least 10.0% . At December 31, 2017 and 2016 , the Company and the Bank exceeded all regulatory capital requirements currently applicable . The following is a summary of the Bank and the Company’s regulatory capital amounts and ratios as of December 31, 2017 and 2016 compared to the regulatory minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized institution then in effect (dollars in thousands): As of December 31, 2017 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 459,031 8.75 % $ 209,760 4.000 % $ 262,200 5.00 % Common equity Tier 1 (to risk-weighted assets) 459,031 12.41 212,705 5.750 (1) 240,450 6.50 Tier 1 capital (to risk-weighted assets) 459,031 12.41 268,194 7.250 (1) 295,938 8.00 Total capital (to risk-weighted assets) 475,379 12.85 342,178 9.250 (1) 369,923 10.00 OceanFirst Financial Corp: Tier 1 capital (to average assets) $ 465,554 8.87 % $ 209,943 4.000 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 449,991 12.15 212,907 5.750 (1) N/A N/A Tier 1 capital (to risk-weighted assets) 465,554 12.57 268,448 7.250 (1) N/A N/A Total capital (to risk-weighted assets) 516,902 13.96 342,502 9.250 (1) N/A N/A As of December 31, 2016 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 450,414 10.19 % (2) $ 176,856 4.000 % $ 221,071 5.00 % Common equity Tier 1 (to risk-weighted assets) 450,414 12.81 180,178 5.125 (3) 228,519 6.50 Tier 1 capital (to risk-weighted assets) 450,414 12.81 232,913 6.625 (3) 281,254 8.00 Total capital (to risk-weighted assets) 466,224 13.26 303,227 8.625 (3) 351,567 10.00 OceanFirst Financial Corp: Tier 1 capital (to average assets) $ 440,552 9.96 % (2) $ 176,897 4.000 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 426,855 12.12 180,512 5.125 (3) N/A N/A Tier 1 capital (to risk-weighted assets) 440,552 12.51 233,345 6.625 (3) N/A N/A Total capital (to risk-weighted assets) 491,362 13.95 303,788 8.625 (3) N/A N/A (1) Includes the Capital Conservation Buffer of 1.25% . (2) Tier 1 capital ratios are calculated based on outstanding capital at the end of the quarter divided by average assets for the quarter. The December 31, 2016 Tier 1 capital ratios for the Bank and the Company bas ed on total assets as of the end of the period are 8.85% and 8.75% , respectively. (3) Includes the Capital Conservation Buffer of 0.625% . The Bank satisfies the criteria to be “well-capitalized” under the Prompt Corrective Action Regulations. The capital conservation buffer requirement is being phased in over four years beginning January 1, 2016. The capital conservation buffer requirement is being phased in incrementally, and started at 0.625% on January 1, 2016, increased to 1.25% on January 1, 2017, and increases to 1.875% on January 1, 2018, and 2.50% on January 1, 2019, when the full capital conservation buffer requirement will be effective. Capital distributions and certain discretionary bonus payments are limited if the capital conservation buffer is not maintained. Applicable regulations also impose limitations upon capital distributions by the Company, such as dividends and payments to repurchase or otherwise acquire shares. The Company may not declare or pay cash dividends on or repurchase any of its shares of common stock if the effect thereof would cause stockholders’ equity to be reduced below applicable regulatory capital minimum requirements or if such declaration and payment would otherwise violate regulatory requirements. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination As a result of the following acquisitions and the June 30, 2017 definitive agreement and plan of merger with Sun Bancorp, Inc. (“Sun”), which closed on January 31, 2018, the Company incurred merger related expenses of $8.3 million , $16.5 million , and $1.9 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Refer to Note 17 Subsequent Events, for additional information related to the Sun acquisition. The following table summarizes the merger related expenses for the years ended December 31, 2017 , 2016 and 2015 is as follows: For the Year Ended December 31, 2017 2016 2015 (in thousands) Data processing fees $ 3,956 $ 4,844 $ 371 Professional fees 2,771 5,982 524 Employee severance payments 1,177 5,457 763 Other/miscellaneous fees 389 251 220 Merger related expenses $ 8,293 $ 16,534 $ 1,878 Branch Acquisition On March 11, 2016, the Company completed its acquisition of an existing retail branch in the Toms River market (“Toms River Retail Branch”). Under the terms of the Purchase and Assumption Agreement dated July 31, 2015, the Company paid a deposit premium of $340,000 , equal to 2.50% of core deposits; i.e., all deposits other than time deposits, government deposits, and fiducia ry accounts. Up to 1.00% of the deposit premium was contingent on the core deposit balance seventy-five days after closing. The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired has been recorded as goodwill. The following table presents the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands): At March 11, 2016 Book Value Fair Value Fair Value Assets Acquired Cash and cash equivalents $ 16,727 $ — $ 16,727 Loans 9 — 9 Other assets 15 — 15 Core deposit intangible — 66 66 Total assets acquired $ 16,751 $ 66 $ 16,817 Liabilities Assumed Deposits $ 16,953 $ 4 $ 16,957 Other liabilities assumed 138 — 138 Total liabilities assumed $ 17,091 $ 4 $ 17,095 Goodwill $ 278 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. On March 11, 2017, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. Cape Bancorp Inc. Acquisition On May 2, 2016 , the Company completed its acquisition of Cape Bancorp, Inc. (“Cape”), which after purchase accounting adjustments added $1.5 billion to assets, $1.2 billion to loans, and $1.2 billion to deposits. Total consideration paid for Cape was $196.4 million , including cash consideration of $30.5 million . Cape was merged with and into the Company as of the date of acquisition. The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired has been recorded as goodwill. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Cape, net of total consideration paid (in thousands): At May 2, 2016 Cape Purchase Fair Value Total Purchase Price: $ 196,403 Assets acquired: Cash and cash equivalents $ 30,025 $ — $ 30,025 Securities and Federal Home Loan Bank Stock 218,577 361 218,938 Loans 1,169,568 (12,849 ) 1,156,719 Premises and equipment 27,972 (1,973 ) 25,999 Other real estate owned 2,343 (660 ) 1,683 Deferred tax asset 9,407 8,419 17,826 Other assets 61,793 — 61,793 Core deposit intangible 831 2,887 3,718 Total assets acquired 1,520,516 (3,815 ) 1,516,701 Liabilities assumed: Deposits (1,247,688 ) (679 ) (1,248,367 ) Borrowings (123,587 ) (879 ) (124,466 ) Other liabilities (7,611 ) (5,156 ) (12,767 ) Total liabilities assumed (1,378,886 ) (6,714 ) (1,385,600 ) Net assets acquired $ 141,630 $ (10,529 ) 131,101 Goodwill recorded in the merger $ 65,302 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. On May 2, 2017, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. Ocean Shore Holding Co. Acquisition On November 30, 2016 , the Company completed its acquisition of Ocean Shore Holding Co. (“Ocean Shore”), which after purchase accounting adjustments added $991.3 million to assets, $773.3 million to loans, and $875.1 million to deposits. Total consideration paid for Ocean Shore was $180.7 million , including cash consideration of $28.4 million . Ocean Shore was merged with and into the Company on the date of acquisition. The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired has been recorded as goodwill. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Ocean Shore, net of total consideration paid (in thousands): At November 30, 2016 Ocean Shore Purchase Fair Value Total Purchase Price: $ 180,732 Assets acquired: Cash and cash equivalents $ 60,871 $ — $ 60,871 Securities and Federal Home Loan Bank Stock 94,109 24 94,133 Loans 790,396 (17,129 ) 773,267 Premises and equipment 11,696 3,372 15,068 Other real estate owned 1,090 (46 ) 1,044 Deferred tax asset 5,587 (1,535 ) 4,052 Other assets 35,369 (22 ) 35,347 Core deposit intangible 348 7,158 7,506 Total assets acquired 999,466 (8,178 ) 991,288 Liabilities assumed: Deposits (874,301 ) (772 ) (875,073 ) Borrowings (3,694 ) — (3,694 ) Other liabilities (17,629 ) 2,717 (14,912 ) Total liabilities assumed (895,624 ) 1,945 (893,679 ) Net assets acquired $ 103,842 $ (6,233 ) 97,609 Goodwill recorded in the merger $ 83,123 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. On November 30, 2017, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. Supplemental Pro Forma Financial Information The following table presents financial information regarding the former Cape operations included in the Consolidated Statements of Income from the date of the acquisition ( May 2, 2016 ) through December 31, 2016 and regarding the former Ocean Shore operations included in the Consolidated Statements of Income from the date of the acquisition (December 1, 2016) through December 31, 2016. In addition, the table provides condensed pro forma financial information assuming the Cape and Ocean Shore acquisitions had been completed as of January 1, 2016, for the year ended December 31, 2016 , and as of January 1, 2015, for the year ended December 31, 2015 . The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisitions occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of Cape’s and Ocean Shore’s operations. The pro forma information shown reflects adjustments related to certain purchase ac counting fair value adjustments; amortization of core deposit and other intangibles; and related income tax effects. Cape Actual from May 2, 2016 to December 31, 2016 Ocean Shore Pro forma Pro forma (in thousands, except per share amounts) (Unaudited) Net interest income $ 34,565 $ 3,109 $ 166,462 $ 159,351 Provision for loan losses 498 — 4,400 4,639 Non-interest income 3,503 349 25,761 33,292 Non-interest expense 19,258 1,337 161,090 123,762 Net income $ 12,311 $ 1,397 $ 16,772 $ 43,471 Fully diluted earnings per share $ 0.52 $ 1.39 Core Deposit Intangible The estimated future amortization expense for the core deposit intangible over the next five years is as follows (in thousands): For the Year Ended December 31, Amortization Expense 2018 $ 1,828 2019 1,618 2020 1,408 2021 1,197 2022 987 Thereafter 1,847 Total $ 8,885 Fair Value Measurement of Assets Acquired and Liabilities Assumed The methods used to determine the fair value of the assets acquired and liabilities assumed in the Toms River Retail Branch, Cape and Ocean Shore acquisitions are described below. Refer to Note 15 Fair Value Measurements, for a discussion of the fair value hierarchy. Securities The estimated fair values of the securities were calculated utilizing Level 2 inputs. The securities acquired are bought and sold in active markets. Prices for these instruments were obtained through security industry sources that actively participate in the buying and selling of securities. Loans The acquired loan portfolio was valued utilizing Level 3 inputs and included the use of present value techniques employing cash flow estimates and incorporated assumptions that marketplace participants would use in estimating fair values. In instances where reliable market information was not available, the Company used its own assumptions in an effort to determine reasonable fair value. Specifically, the Company utilized three separate fair value analyses which a market participant would employ in estimating the total fair value adjustment. The three separate fair valuation methodologies used were: (1) interest rate loan fair value analysis; (2) general credit fair value adjustment; and (3) specific credit fair value adjustment. To prepare the interest rate fair value analysis, loans were grouped by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various external data sources and reviewed by Company management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value adjustment. The general credit fair value adjustment was calculated using a two part general credit fair value analysis: (1) expected lifetime losses and (2) estimated fair value adjustment for qualitative factors. The expected lifetime losses were calculated after consideration of historical losses of the Company, the acquired bank and peer banks. The adjustment related to qualitative factors was impacted by general economic conditions and the risk related to lack of experience with the originator’s underwriting process. To calculate the specific credit fair value adjustment the Company reviewed the acquired loan portfolio for loans meeting the definition of an impaired loan with deteriorated credit quality. Loans meeting this criteria were reviewed by comparing the contractual cash flows to expected collectible cash flows. The aggregate expected cash flows less the acquisition date fair value resulted in an accretable yield amount which will be recognized over the life of the loans on a level yield basis as an adjustment to yield. Premises and Equipment Fair values are based upon appraisals from independent third parties. In addition to owned properties, Cape operated eight properties subject to lease agreements, and Ocean Shore operated two properties subject to lease agreements. Deposits and Core Deposit Premium Core deposit premium represents the value assigned to non-interest-bearing demand deposits, interest-bearing checking, money market and saving accounts acquired as part of the acquisition. The core deposit premium value represents the future economic benefit, including the present value of future tax benefits, of the potential cost saving from acquiring the core deposits as part of an acquisition compared to the cost of alternative funding sources and is valued utilizing Level 2 inputs. At the acquisition dates, the core deposit premium totaled $66,000 , $3.7 million , and $7.5 million , for the Toms River Retail Branch, Cape, and Ocean Shore acquisitions, respectively, and is being amortized over its estimated useful life of approximately 10 years using an accelerated method. Time deposits are not considered to be core deposits as they are assumed to have a low expected average life upon acquisition. The fair value of time deposits represents the present value of the expected contractual payments discounted by market rates for similar time deposits and is valued utilizing Level 2 inputs. Borrowings Fair value estimates are based on discounting contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and estimated fair value of securities available-for-sale and held-to-maturity at December 31, 2017 and 2016 are as follows (in thousands): Amortized Gross Gross Estimated At December 31, 2017 Available-for-sale: Investment securities: U.S. agency obligations $ 82,378 $ — $ (797 ) $ 81,581 Other investments 8,947 — (247 ) 8,700 Total available-for-sale $ 91,325 $ — $ (1,044 ) $ 90,281 Held-to-maturity: Investment securities: U.S. agency obligations $ 14,968 $ — $ (65 ) $ 14,903 State and municipal obligations 149,958 219 (1,475 ) 148,702 Corporate debt securities 76,024 312 (3,962 ) 72,374 Total investment securities 240,950 531 (5,502 ) 235,979 Mortgage-backed securities: FHLMC 186,921 151 (2,937 ) 184,135 FNMA 263,103 1,193 (3,000 ) 261,296 GNMA 75,243 64 (928 ) 74,379 SBA 5,843 28 — 5,871 Total mortgage-backed securities 531,110 1,436 (6,865 ) 525,681 Total held-to-maturity $ 772,060 $ 1,967 $ (12,367 ) $ 761,660 Total securities $ 863,385 $ 1,967 $ (13,411 ) $ 851,941 At December 31, 2016 Available-for-sale: Investment securities: U.S. agency obligations $ 12,542 $ — $ (318 ) $ 12,224 Other investments 8,778 — (227 ) 8,551 Total available-for-sale $ 21,320 $ — $ (545 ) $ 20,775 Held-to-maturity: Investment securities: U.S. agency obligations $ 19,960 $ 69 $ — $ 20,029 State and municipal obligations 39,155 10 (856 ) 38,309 Corporate debt securities 77,057 85 (6,001 ) 71,141 Total investment securities 136,172 164 (6,857 ) 129,479 Mortgage-backed securities: FHLMC 144,016 195 (2,457 ) 141,754 FNMA 217,445 2,209 (2,524 ) 217,130 GNMA 92,475 119 (364 ) 92,230 SBA 8,947 28 — 8,975 Total mortgage-backed securities 462,883 2,551 (5,345 ) 460,089 Total held-to-maturity $ 599,055 $ 2,715 $ (12,202 ) $ 589,568 Total securities $ 620,375 $ 2,715 $ (12,747 ) $ 610,343 During the third quarter 2013, the Bank transferred $536.0 million of previously designated available-for-sale securities to a held-to-maturity designation at estimated fair value. The securities transferred had an unrealized net loss of $13.3 million at the time of transfer which continues to be reflected in accumulated other comprehensive loss on the consolidated balance sheet, net of subsequent amortization, which is being recognized over the life of the securities. The carrying value of the held-to-maturity securities at December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 2016 Amortized cost $ 772,060 $ 599,055 Net loss on date of transfer from available-for-sale (13,347 ) (13,347 ) Accretion of unrealized loss on securities reclassified to held-to-maturity 5,349 4,204 Carrying value $ 764,062 $ 589,912 There were no realized gains or losses on the sale of securities for the year ended December 31, 2017 . Realized gains on the sale of securities were $75,000 for the year ended December 31, 2016 and realized losses were $87,000 . There were no realized gains or losses on the sale of securities for the year ended December 31, 2015 . The amortized cost and estimated fair value of investment securities at December 31, 2017 by contractual maturity, are shown below (in thousands). Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2017 , corporate debt securities with an amortized cost and estimated fair value of $59.9 million and $56.3 million , respectively, were callable prior to the maturity date. December 31, 2017 Amortized Estimated Less than one year $ 45,944 $ 45,867 Due after one year through five years 158,397 156,862 Due after five years through ten years 88,986 87,180 Due after ten years 30,001 27,651 $ 323,328 $ 317,560 Other investments consist of mutual funds that do not have a contractual maturity date and are excluded from the table above. Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments. The estimated fair value of securities pledged as required security for deposits and for other purposes required by law amounted to $466.4 million and $506.0 million , at December 31, 2017 and 2016 , respectively. The estimated fair value of securities pledged as collateral for reverse repurchase agreements amounted to $58.0 million and $67.5 million at December 31, 2017 and 2016 , respectively. The estimated fair value and unrealized loss for securities available-for-sale and held-to-maturity at December 31, 2017 and December 31, 2016 , segregated by the duration of the unrealized loss, are as follows (in thousands): As of December 31, 2017 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Available-for-sale: Investment securities: U.S. agency obligations $ 69,375 $ (496 ) $ 12,206 $ (301 ) $ 81,581 $ (797 ) Other investments — — 8,700 (247 ) 8,700 (247 ) Total available-for-sale 69,375 (496 ) 20,906 (548 ) 90,281 (1,044 ) Held-to-maturity: Investment securities: U.S. agency obligations 14,903 (65 ) — — 14,903 (65 ) State and municipal obligations 104,883 (1,153 ) 14,363 (322 ) 119,246 (1,475 ) Corporate debt securities 4,035 (30 ) 56,106 (3,932 ) 60,141 (3,962 ) Total investment securities 123,821 (1,248 ) 70,469 (4,254 ) 194,290 (5,502 ) Mortgage-backed securities: FHLMC 98,138 (781 ) 68,238 (2,156 ) 166,376 (2,937 ) FNMA 132,982 (1,058 ) 65,060 (1,942 ) 198,042 (3,000 ) GNMA 26,105 (223 ) 45,281 (705 ) 71,386 (928 ) Total mortgage-backed securities 257,225 (2,062 ) 178,579 (4,803 ) 435,804 (6,865 ) Total held-to-maturity 381,046 (3,310 ) 249,048 (9,057 ) 630,094 (12,367 ) Total securities $ 450,421 $ (3,806 ) $ 269,954 $ (9,605 ) $ 720,375 $ (13,411 ) As of December 31, 2016 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Available-for-sale: Investment securities: U.S. agency obligations $ 12,224 $ (318 ) $ — $ — $ 12,224 $ (318 ) Other investments 8,551 (227 ) — — 8,551 (227 ) Total available-for-sale 20,775 (545 ) — — 20,775 (545 ) Held-to-maturity: Investment securities: State and municipal obligations 32,995 (856 ) — — 32,995 (856 ) Corporate debt securities 12,450 (120 ) 49,119 (5,881 ) 61,569 (6,001 ) Total investment securities 45,445 (976 ) 49,119 (5,881 ) 94,564 (6,857 ) Mortgage-backed securities: FHLMC 102,461 (1,665 ) 26,898 (792 ) 129,359 (2,457 ) FNMA 124,403 (2,185 ) 8,925 (339 ) 133,328 (2,524 ) GNMA 79,116 (364 ) — — 79,116 (364 ) Total mortgage-backed securities 305,980 (4,214 ) 35,823 (1,131 ) 341,803 (5,345 ) Total held-to-maturity 351,425 (5,190 ) 84,942 (7,012 ) 436,367 (12,202 ) Total securities $ 372,200 $ (5,735 ) $ 84,942 $ (7,012 ) $ 457,142 $ (12,747 ) At December 31, 2017 , the amortized cost, estimated fair value and credit rating of the individual corporate debt securities in an unrealized loss position for greater than one year are as follows (in thousands): As of December 31, 2017 Security Description Amortized Cost Estimated Credit Rating BankAmerica Capital $ 15,000 $ 14,038 Baa3/BBB- Chase Capital 10,000 9,350 Baa2/BBB- Wells Fargo Capital 5,000 4,713 A1/BBB+ Huntington Capital 5,000 4,450 Baa2/BB Keycorp Capital 5,000 4,675 Baa2/BB+ PNC Capital 5,000 4,675 Baa1/BBB- State Street Capital 5,000 4,625 A3/BBB SunTrust Capital 5,000 4,575 Not Rated/BB+ Southern Company 1,524 1,509 Baa2/BBB+ AT&T Inc. 1,514 1,498 Baa1/BBB+ MetLife Global Funding 1,000 999 Aa3/AA- State Street Corporation 1,000 999 A1/A $ 60,038 $ 56,106 At December 31, 2017 , the estimated fair value of each of the above corporate debt securities was below cost. The Company concluded that these corporate debt securities were only temporarily impaired at December 31, 2017 . In concluding that the impairments were only temporary, the Company considered several factors in its analysis. The Company noted that each issuer made all the contractually due payments when required. There were no defaults on principal or interest payments and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the Company does not have the intent to sell these corporate debt securities and it is more likely than not that the Company will not be required to sell the securities. Historically, the Company has not utilized securities sales as a source of liquidity. The Company’s long range liquidity plans indicate adequate sources of liquidity outside the securities portfolio. The mortgage-backed securities are issued and guaranteed by either the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”), or the Small Business Administration (“SBA”) corporations which are chartered by the United States Government and whose debt obligations are typically rated AA+ by one of the internationally-recognized credit rating services. The Company considers the unrealized losses to be the result of changes in interest rates which over time can have both a positive and negative impact on the estimated fair value of the mortgage-backed securities. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost. As a result, the Company concluded that these securities were only temporarily impaired at December 31, 2017 . |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans Receivable, Net | Loans Receivable, Net A summary of loans receivable at December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 2016 Commercial: Commercial and industrial $ 187,645 $ 152,569 Commercial real estate - owner occupied 569,497 534,214 Commercial real estate - investor 1,186,302 1,132,075 Total commercial 1,943,444 1,818,858 Consumer: Residential mortgage 1,694,042 1,647,154 Residential construction 54,548 51,070 Home equity loans and lines 281,143 288,991 Other consumer 1,225 1,564 Total consumer 2,030,958 1,988,779 3,974,402 3,807,637 Purchased credit impaired loans 1,712 7,575 Total loans 3,976,114 3,815,212 Deferred origination costs, net 5,380 3,414 Allowance for loan losses (15,721 ) (15,183 ) Loans receivable, net $ 3,965,773 $ 3,803,443 The Bank’s eligible mortgage loans are pledged to secure FHLB advances. At December 31, 2017 , 2016 and 2015 , loans in the amount of $20.9 million , $13.6 million , and $18.3 million , respectively, were three or more months delinquent or in the process of foreclosure and the Company was not accruing interest income on these loans. There were no loans that were ninety days or greater past due and still accruing interest. Non-accrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The recorded investment in mortgage and consumer loans collateralized by residential real estate which are in the process of foreclosure amounted to $1.1 million at December 31, 2017 . The amount of foreclosed residential real estate property held by the Company was $1.1 million at December 31, 2017 . The Company defines an impaired loan as a non-accrual commercial real estate, multi-family, land, construction and commercial loans in excess of $250,000 . Impaired loans also include all loans modified as troubled debt restructurings. At December 31, 2017 , the impaired loan portfolio totaled $47.0 million , for which there was no specific allocation in the allowance for loan losses. At December 31, 2016 , the impaired loan portfolio totaled $31.0 million , for which there was a specific allocation in the allowance for loan losses of $510,000 . The average balance of impaired loans for the years ended December 31, 2017 , 2016 and 2015 was $39.8 million , $38.4 million , and $41.5 million , respectively. If interest income on non-accrual loans and impaired loans had been current in accordance with their original terms, ap proximately $639,000 , $391,000 , and $848,000 of interest income for the years ended December 31, 2017 , 2016 and 2015 , respec tively, would have been recorded. At December 31, 2017 , there were no commitments to lend additional funds to borrowers whose loans are in non-accrual status. An analysis of the allowance for loan losses for the years ended December 31, 2017 , 2016 and 2015 is as follows (in thousands): At or For the Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 15,183 $ 16,722 $ 16,317 Provision charged to operations 4,445 2,623 1,275 Charge-offs (5,384 ) (4,490 ) (1,135 ) Recoveries 1,477 328 265 Balance at end of year $ 15,721 $ 15,183 $ 16,722 The following table present s an analysis of the allowance for loan losses for the years ended December 31, 2017 and 2016 , the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2017 and 2016 excluding PCI loans (in thousands): Residential Commercial Real Estate - Owner Occupied Commercial Real Estate - Investor Consumer Commercial Unallocated Total For the year ended December 31, 2017 Allowance for loan losses: Balance at beginning of year $ 2,245 $ 2,999 $ 6,361 $ 1,110 $ 2,037 $ 431 $ 15,183 Provision (benefit) charged to operations 2,742 203 2,444 (509 ) (379 ) (56 ) 4,445 Charge-offs (3,820 ) (150 ) (899 ) (135 ) (380 ) — (5,384 ) Recoveries 637 123 46 148 523 — 1,477 Balance at end of year $ 1,804 $ 3,175 $ 7,952 $ 614 $ 1,801 $ 375 $ 15,721 For the year ended December 31, 2016 Allowance for loan losses: Balance at beginning of year $ 6,590 $ 2,292 $ 4,873 $ 1,095 $ 1,639 $ 233 $ 16,722 Provision (benefit) charged to operations (3,858 ) 2,210 3,200 310 563 198 2,623 Charge-offs (558 ) (1,509 ) (1,890 ) (349 ) (184 ) — (4,490 ) Recoveries 71 6 178 54 19 — 328 Balance at end of year $ 2,245 $ 2,999 $ 6,361 $ 1,110 $ 2,037 $ 431 $ 15,183 December 31, 2017 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,804 3,175 7,952 614 1,801 375 15,721 Total ending allowance balance $ 1,804 $ 3,175 $ 7,952 $ 614 $ 1,801 $ 375 $ 15,721 Loans: Loans individually evaluated for impairment $ 10,605 $ 15,132 $ 17,923 $ 2,464 $ 864 $ — $ 46,988 Loans collectively evaluated for impairment 1,737,985 554,365 1,168,379 279,904 186,781 — 3,927,414 Total ending loan balance $ 1,748,590 $ 569,497 $ 1,186,302 $ 282,368 $ 187,645 $ — $ 3,974,402 December 31, 2016 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ 266 $ — $ 119 $ 125 $ — $ — $ 510 Collectively evaluated for impairment 1,979 2,999 6,242 985 2,037 431 14,673 Total ending allowance balance $ 2,245 $ 2,999 $ 6,361 $ 1,110 $ 2,037 $ 431 $ 15,183 Loans: Loans individually evaluated for impairment $ 13,306 $ 11,123 $ 3,789 $ 2,556 $ 268 $ — $ 31,042 Loans collectively evaluated for impairment 1,684,918 523,091 1,128,286 287,999 152,301 — 3,776,595 Total ending loan balance $ 1,698,224 $ 534,214 $ 1,132,075 $ 290,555 $ 152,569 $ — $ 3,807,637 A summary of impaired loans at December 31, 2017 and 2016 is as follows, excluding PCI loans (in thousands): December 31, 2017 2016 Impaired loans with no allocated allowance for loan losses $ 46,988 $ 25,228 Impaired loans with allocated allowance for loan losses — 5,814 $ 46,988 $ 31,042 Amount of the allowance for loan losses allocated $ — $ 510 At December 31, 2017 , impaired loans include troubled debt restructured loans of $42.1 million , of which $33.3 million were performing in accordance with their restructured terms for a minimum of six months and were accruing interest. At December 31, 2016 impaired loans include troubled debt restructured loans of $30.5 million , of which $27.0 million were performing in accordance with their restructured terms for a minimum of six months and were accruing interest. The summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2017 and 2016 and for the years ended December 31, 2017 and 2016 is as follows, excluding PCI loans (in thousands): Unpaid Recorded Allowance for At December 31, 2017 With no related allowance recorded: Residential real estate $ 10,951 $ 10,605 $ — Commercial real estate – owner occupied 15,832 15,132 — Commercial real estate – investor 19,457 17,923 — Consumer 2,941 2,464 — Commercial and industrial 895 864 — $ 50,076 $ 46,988 $ — With an allowance recorded: Residential real estate $ — $ — $ — Commercial real estate – owner occupied — — — Commercial real estate – investor — — — Consumer — — — Commercial and industrial — — — $ — $ — $ — At December 31, 2016 With no related allowance recorded: Residential real estate $ 9,848 $ 9,694 $ — Commercial real estate – owner occupied 11,886 11,123 — Commercial real estate – investor 2,239 1,897 — Consumer 2,559 2,246 — Commercial and industrial 300 268 — $ 26,832 $ 25,228 $ — With an allowance recorded: Residential real estate $ 3,998 $ 3,612 $ 266 Commercial real estate – owner occupied — — — Commercial real estate – investor 2,011 1,892 119 Consumer 581 310 125 Commercial and industrial — — — $ 6,590 $ 5,814 $ 510 (continued) For the Year Ended December 31, 2017 2016 Average Interest Average Interest With no related allowance recorded: Residential real estate $ 10,928 $ 481 $ 14,497 $ 394 Commercial real estate – owner occupied 11,890 797 18,095 467 Commercial real estate – investor 8,825 768 535 98 Consumer 2,388 144 2,549 122 Commercial and industrial 643 60 411 13 $ 34,674 $ 2,250 $ 36,087 $ 1,094 With an allowance recorded: Residential real estate $ 1,585 $ 62 $ 786 $ 163 Commercial real estate – owner occupied — — 466 — Commercial real estate – investor 3,386 81 1,027 79 Consumer 119 6 67 29 Commercial and industrial — — — — $ 5,090 $ 149 $ 2,346 $ 271 The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of December 31, 2017 and 2016 , excluding PCI loans (in thousands): December 31, 2017 2016 Residential real estate $ 4,190 $ 8,126 Commercial real estate – owner occupied 5,962 2,414 Commercial real estate – investor 8,281 521 Consumer 1,929 2,064 Commercial and industrial 503 441 $ 20,865 $ 13,566 The following table presents the aging of the recorded investment in past due loans as of December 31, 2017 and 2016 by loan portfolio segment, excluding PCI loans (in thousands): 30-59 60-89 Greater Total Loans Not Total December 31, 2017 Residential real estate $ 13,197 $ 2,351 $ 3,372 $ 18,920 $ 1,729,670 $ 1,748,590 Commercial real estate – owner occupied 222 — 5,402 5,624 563,873 569,497 Commercial real estate – investor 135 1,426 4,507 6,068 1,180,234 1,186,302 Consumer 1,067 310 1,687 3,064 279,304 282,368 Commercial and industrial 2,694 36 503 3,233 184,412 187,645 $ 17,315 $ 4,123 $ 15,471 $ 36,909 $ 3,937,493 $ 3,974,402 December 31, 2016 Residential real estate $ 9,532 $ 3,038 $ 7,159 $ 19,729 $ 1,678,495 $ 1,698,224 Commercial real estate – owner occupied 3,962 1,032 890 5,884 528,330 534,214 Commercial real estate – investor — — 521 521 1,131,554 1,132,075 Consumer 1,519 436 1,963 3,918 286,637 290,555 Commercial and industrial 5,548 181 384 6,113 146,456 152,569 $ 20,561 $ 4,687 $ 10,917 $ 36,165 $ 3,771,472 $ 3,807,637 The Company categorizes all commercial and commercial real estate loans, except for small business loans, into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The Company uses the following definitions for risk ratings: Pass : Loans classified as Pass are well protected by the paying capacity and net worth of the borrower. Special Mention : Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date. Substandard : Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. As of December 31, 2017 and 2016 , and based on the most recent analysis performed, the risk category of loans by loan portfolio segment is as follows, excluding PCI loans (in thousands): Pass Special Substandard Doubtful Total December 31, 2017 Commercial real estate – owner occupied $ 546,569 $ 4,337 $ 18,591 $ — $ 569,497 Commercial real estate – investor 1,146,630 14,644 25,028 — 1,186,302 Commercial and industrial 181,438 3,153 3,054 — 187,645 $ 1,874,637 $ 22,134 $ 46,673 $ — $ 1,943,444 December 31, 2016 Commercial real estate – owner occupied $ 501,652 $ 7,680 $ 24,882 $ — $ 534,214 Commercial real estate – investor 1,106,747 713 24,615 — 1,132,075 Commercial and industrial 150,474 757 1,338 — 152,569 $ 1,758,873 $ 9,150 $ 50,835 $ — $ 1,818,858 For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2017 and 2016 , excluding PCI loans (in thousands): Residential Real Estate Residential Consumer December 31, 2017 Performing $ 1,744,400 $ 280,439 Non-performing 4,190 1,929 $ 1,748,590 $ 282,368 December 31, 2016 Performing $ 1,690,098 $ 288,491 Non-performing 8,126 2,064 $ 1,698,224 $ 290,555 The Company classifies certain loans as troubled debt restructurings when credit terms to a borrower in financial difficulty are modified. The modifications may include a reduction in rate, an extension in term, the capitalization of past due amounts and/or the restructuring of scheduled principal payments. One-to-four family and consumer loans where the borrower’s debt is discharged in a bankruptcy filing are also considered troubled debt restructurings. For these loans, the Bank retains its security interest in the real estate collateral. Included in the non-accrual loan total at December 31, 2017 , 2016 and 2015 were $8.8 million , $3.5 million , and $4.9 million , respectively, of troubled debt restructurings. At December 31, 2017 , there were no specific reserves allocated to loans which were classified as troubled debt restructurings. At December 31, 2016 and 2015 the Company had allocated $510,000 , and $262,000 , respectively, of specific reserves to loans which are classified as troubled debt restructurings. Non-accrual loans which become troubled debt restructurings are generally returned to accrual status after six months of performance. In addition to the troubled debt restructurings included in non-accrual loans, the Company also has loans classified as troubled debt restructuring which are accruing at December 31, 2017 , 2016 and 2015 which totaled $33.3 million , $27.0 million , and $26.3 million , respectively. Troubled debt restructurings are considered in the allowance for loan losses similar to other impaired loans. The following table presents information about troubled debt restructurings which occurred during the years ended December 31, 2017 and 2016 , and troubled debt restructurings modified within the previous year and which defaulted during the years ended December 31, 2017 and 2016 (dollars in thousands): Number Pre-modification Post-modification For the year ended December 31, 2017 Troubled Debt Restructurings: Residential real estate 8 $ 1,637 $ 1,600 Commercial real estate – owner occupied 7 6,977 6,977 Commercial real estate – investor 7 10,904 11,026 Commercial and industrial 1 665 665 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number Pre-modification Post-modification For the year ended December 31, 2016 Troubled Debt Restructurings: Residential real estate 7 $ 1,574 $ 1,523 Commercial real estate – investor 1 1,592 1,592 Consumer 8 852 846 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None As part of the Ocean Shore and Cape acquisitions, PCI loans were acquired at a discount primarily due to deteriorated credit quality. PCI loans are accounted for at fair value, based upon the present value of expected future cash flows, with no related allowance for loan losses. The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Ocean Shore at December 1, 2016 and Cape at May 2, 2016 (in thousands): Ocean Shore Cape December 1, 2016 May 2, 2016 Contractually required principal and interest $ 7,385 $ 21,345 Contractual cash flows not expected to be collected (non-accretable discount) (4,666 ) (12,387 ) Expected cash flows to be collected at acquisition 2,719 8,958 Interest component of expected cash flows (accretable yield) (401 ) (576 ) Fair value of acquired loans $ 2,318 $ 8,382 The following table summarizes the changes in accretable yield for PCI loans during the years ended December 31, 2017 and 2016 (in thousands): For the Year Ended December 31, 2017 2016 Beginning balance $ 749 $ 75 Acquisition — 977 Accretion (921 ) (459 ) Reclassification from non-accretable difference 333 156 Ending balance $ 161 $ 749 |
Interest and Dividends Receivab
Interest and Dividends Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Interest and Dividends Receivable | Interest and Dividends Receivable Interest and dividends receivable at December 31, 2017 and 2016 are summarized as follows (in thousands): December 31, 2017 2016 Loans $ 10,750 $ 10,499 Investment securities 2,430 582 Mortgage-backed securities 1,074 908 $ 14,254 $ 11,989 |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment, net at December 31, 2017 and 2016 are summarized as follows (in thousands): December 31, 2017 2016 Land $ 24,876 $ 19,080 Buildings and improvements 97,463 63,955 Leasehold improvements 6,613 6,598 Furniture and equipment 30,545 33,375 Other 1,450 3,240 Total 160,947 126,248 Accumulated depreciation and amortization (59,171 ) (54,863 ) $ 101,776 $ 71,385 During 2017, the Company acquired an administrative office building in Red Bank, New Jersey for $42.5 million , which it expects to occupy in April 2018 while consolidating multiple operating facilities into two locations. Depreciation and amortization expense for the years ended December 31, 2017 , 2016 , and 2015 amounted to $6.3 million , $4.8 million and $3.3 million , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits Deposits, including accrued interest payable of $22,000 at December 31, 2017 and $31,000 at December 31, 2016 , are summarized as follows (in thousands): December 31, 2017 2016 Amount Weighted Average Cost Amount Weighted Average Cost Non-interest-bearing accounts $ 756,513 — % $ 782,504 — % Interest-bearing checking accounts 1,954,358 0.32 1,626,713 0.19 Money market deposit accounts 363,656 0.33 458,911 0.30 Savings accounts 661,167 0.04 672,519 0.08 Time deposits 607,104 1.18 647,103 1.14 Total deposits $ 4,342,798 0.34 % $ 4,187,750 0.30 % Included in time deposits at December 31, 2017 and 2016 , is $270.6 million and $269.0 million , respectively, in deposits of $100,000 and over. Time deposits at December 31, 2017 mature as follows (in thousands): For the Year Ended December 31, Time Deposit Maturities 2018 $ 308,237 2019 110,598 2020 66,959 2021 42,060 2022 75,620 Thereafter 3,630 Total $ 607,104 Interest expense on deposits for the years ended December 31, 2017 , 2016 and 2015 is as follows (in thousands): For the Year Ended December 31, 2017 2016 2015 Interest-bearing checking accounts $ 4,533 $ 2,114 $ 952 Money market deposit accounts 1,213 858 187 Savings accounts 345 191 102 Time deposits 6,245 4,354 3,060 Total interest expense on deposits $ 12,336 $ 7,517 $ 4,301 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds are summarized as follows (in thousands): December 31, 2017 2016 Amount Weighted Average Rate Amount Weighted Average Rate Federal Home Loan Bank advances $ 288,691 1.74 % $ 250,498 1.75 % Securities sold under agreements to repurchase 79,668 0.21 69,935 0.13 Other borrowings 56,519 4.48 56,559 4.21 $ 424,878 1.82 % $ 376,992 1.81 % Information concerning FHLB advances and securities sold under agreements to repurchase (“reverse repurchase agreements”) is summarized as follows (in thousands): FHLB Advances Reverse Repurchase Agreements 2017 2016 2017 2016 Average balance $ 258,870 $ 266,981 $ 74,712 $ 75,227 Maximum amount outstanding at any month end 291,615 252,229 80,945 81,738 Average interest rate for the year 1.73 % 1.67 % 0.16 % 0.14 % Amortized cost of collateral: Mortgage-backed securities — — $ 58,020 $ 67,224 Estimated fair value of collateral: Mortgage-backed securities — — 58,007 67,452 The securities collateralizing the reverse repurchase agreements are delivered to the lender with whom each transaction is executed or to a third-party custodian. The lender, who may sell, loan or otherwise dispose of such securities to other parties in the normal course of their operations, agrees to resell to the Company substantially the same securities at the maturity of the reverse repurchase agreements. (Refer to Note 4 Securities) FHLB advances and reverse repurchase agreements have contractual maturities at December 31, 2017 as follows (in thousands): FHLB Advances Reverse Repurchase Agreements For the Year Ended December 31, 2018 $ 96,958 $ 79,668 2019 81,618 — 2020 75,115 — 2021 25,000 — 2022 10,000 — Total $ 288,691 $ 79,668 During September 2016, the Company issued $35.0 million of subordinated notes, which carry a fixed rate of 5.125% for the first five years and a floating rate of 392 basis points over 3-month LIBOR for the subsequent five years . Accrued interest is payable semi-annually during the fixed rate period and quarterly thereafter and principal is due at maturity on September 30, 2026. During 2007, the Company issued $10.0 million of trust preferred securities which carry a floating rate of 175 basis points over 3 -month LIBOR adjusted quarterly. Accrued interest is due quarterly with principal due at the maturity date of September 1, 2037 . During 2006, the Company issued $12.5 million of trust preferred securities. The trust preferred securities carry a floating rate of 166 basis points over 3-month LIBOR adjusted quarterly. Accrued interest is due quarterly with principal due at the maturity date in 2036 . Interest expense on borrowings for the years ended December 31, 2017 , 2016 , and 2015 is as follows (in thousands): For the Year Ended December 31, 2017 2016 2015 Federal Home Loan Bank advances $ 4,486 $ 4,471 $ 3,850 Securities sold under agreements to repurchase 121 102 103 Other borrowings 2,668 1,073 780 $ 7,275 $ 5,646 $ 4,733 All FHLB advances are secured by the Bank’s mortgage loans and FHLB stock. As a member of the FHLB of New York, the Bank is required to maintain a minimum investment in the capital stock of the FHLB, at cost, in an amount equal to 0.20% of the Bank’s mortgage-related assets, plus 4.5% of the specified value of certain transactions between the Bank and the FHLB. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2017 , 2016 and 2015 consists of the following (in thousands): For the Year Ended December 31, 2017 2016 2015 Current Federal $ (12,754 ) $ 6,259 $ 8,378 State 169 96 1,064 Total current (12,585 ) 6,355 9,442 Deferred Federal 35,440 5,798 1,349 State — — 92 Total deferred 35,440 5,798 1,441 $ 22,855 $ 12,153 $ 10,883 Included in other comprehensive income is income tax expense attributable to the net accretion of unrealized losses on securities available-for-sale arising during the year in the amount of $276,000 , $330,000 , and $600,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. Effective January 1, 2017, the Company adopted ASU 2016-09 “Compensation - Stock Compensation,” which decreased income tax expense by $1.8 million for the year ended December 31, 2017 . Under the ASU, the tax benefits of exercised stock options and vested stock awards are recognized as a benefit to income tax expense in the reporting period which they occur. Prior to the adoption of the ASU, included in stockholders’ equity is income tax benefit attributable to stock plans in the amount of $62,000 , and $32,000 for the years ended December 31, 2016 , and 2015 , respectively. A reconciliation between the provision for income taxes and the expected amount computed by multiplying income before the provision for income taxes times the applicable statutory Federal income tax rate for the years ended December 31, 2017 , 2016 and 2015 is as follows (in thousands): For the Year Ended December 31, 2017 2016 2015 Income before provision for income taxes $ 65,325 $ 35,199 $ 31,205 Applicable statutory Federal income tax rate 35.0 % 35.0 % 35.0 % Computed “expected” Federal income tax expense $ 22,864 $ 12,320 $ 10,922 (Decrease) increase in Federal income tax expense resulting from Tax exempt interest (839 ) (390 ) (291 ) ESOP fair market value adjustment 223 131 111 ESOP dividends (230 ) (223 ) (234 ) Earnings on BOLI (1,155 ) (781 ) (525 ) Merger related expenses 478 1,005 132 State income taxes net of Federal benefit 110 62 751 Stock compensation (1,823 ) — — Impact of Tax Cuts and Jobs Act (“Tax Reform”) 3,643 — — Other items, net (416 ) 29 17 $ 22,855 $ 12,153 $ 10,883 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are presented in the following table (in thousands): December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 3,311 $ 6,269 Reserve for repurchased loans 97 346 Reserve for uncollected interest 49 70 Incentive compensation — 1,695 Deferred compensation 519 1,549 Other reserves 115 375 Stock plans 864 2,151 ESOP 126 224 Purchase accounting adjustments 3,436 16,905 Net operating loss carryforward related to acquisition 3,741 5,829 Other real estate owned 170 26 Unrealized loss on securities 1,898 5,211 Federal and state alternative minimum tax 2,451 2,220 Total gross deferred tax assets 16,777 42,870 Deferred tax liabilities: Incentive compensation (127 ) — Excess servicing on sale of mortgage loans (28 ) (76 ) Investments, discount accretion (244 ) (434 ) Deferred loan and commitment costs, net (1,119 ) (1,261 ) Premises and equipment, differences in depreciation (373 ) (52 ) Undistributed REIT income (12,322 ) (2,167 ) Other (642 ) — Total gross deferred tax liabilities (14,855 ) (3,990 ) Net deferred tax assets $ 1,922 $ 38,880 The Company has Federal net operating losses from the acquisitions of Colonial American and Cape. At both December 31, 2017 and 2016, the net operating losses from Colonial American were $5.9 million . These net operating losses are subject to annual limitation under Code Section 382 in the amount of approximately $330,000 and will expire between 2029 and 2034. At both December 31, 2017 and 2016, the net operating losses from Cape were $10.5 million . These net operating losses are subject to annual limitation under Code Section 382 of approximately $4.5 million , and will expire between 2020-2023. As of December 31, 2017 and 2016, the Company had $1.8 million of New Jersey AMA Tax Credits. These credits do not expire. As of December 31, 2017 and 2016, the Company had $1.0 million of AMT Tax Credits that were part of the Cape acquisition. These credits are subject to the same Code Section 382 limitation as indicated above but do not expire. At December 31, 2017 , 2016 and 2015 , the Company determined that it is not required to establis h a valuation reserve for the remaining net deferred tax assets since it is “more likely than not” that the net deferred tax assets will be realized through future reversals of existing taxable temporary differences, future taxable income and tax planning strategies. The conclusion that it is “more likely than not” that the remaining net deferred tax assets will be realized is based on the history of earnings and the prospects for continued growth. Management will continue to review the tax criteria related to the recognition of deferred tax assets. Retained earnings at December 31, 2017 includes approximately $10.8 million for which no provision for income tax has been made. This amount represents an allocation of income to bad debt deductions for tax purposes only. Events that would result in taxation of these reserves include failure to qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock redemptions and excess distributions to stockholders. At December 31, 2017 , the Company had an unrecognized deferred tax liability of $2.3 million with respect to this reserve. There were no unrecognized tax benefits for the years ended December 31, 2017 , 2016 and 2015 . The tax years that remain subject to examination by the Federal government and the state of New York include the years ended December 31, 2014 and forward. The tax years that remain subject to examination by the state of New Jersey include the years ended December 31, 2013 and forward. With the enactment of the Tax Reform on December 22, 2017, the federal corporate income tax rate was reduced from 35% to 21% effective January 1, 2018. Accounting guidance requires that the effect of income tax law changes on deferred taxes should be recognized as a component of income tax expense related to continuing operations, but also to items initially recognized in other comprehensive income. As a result of the reduction in the U. S. federal statutory income tax rate, the Company recognized an additional income tax expense of $3.6 million for the year ended December 31, 2017. Because accounting guidance requires the effect of income tax law changes on deferred taxes to be recognized as a component of income tax expense related to continuing operations, this additional income tax expense included $1.8 million related to items recognized in other comprehensive income. These amounts will continue to be reported as separate components of accumulated other comprehensive income until such time as the underlying transactions from which such amounts arose are settled through continuing operations. At such time, the reclassification from accumulated other comprehensive income will be recognized as a net tax benefit. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Stock Ownership Plan | Employee Stock Ownership Plan As part of its mutual to stock conversion, the Bank established an Employee Stock Ownership Plan and in 2006 the Bank established a Matching Contribution Employee Stock Ownership Plan (collectively the “ESOP”) to provide retirement benefits for eligible employees. Effective December 31, 2015, the Matching Contribution Employee Stock Ownership Plan was terminated and merged into the Employee Stock Ownership Plan. All full-time employees are eligible to participate in the ESOP after they attain age 21 and complete one year of service during which they work at least 1000 hours . ESOP shares are allocated among participants on the basis of compensation earned during the year. Employees are fully vested in their ESOP account after the completion of five years of credited service or completely if service was terminated due to death, retirement, disability or change in control of the Company. ESOP participants are entitled to receive distributions from the ESOP account only upon termination of service, which includes retirement and death except that a participant may elect to have dividends distributed as a cash payment on a quarterly basis. The ESOP originally borrowed $13.4 million from the Company to purchase 2,013,137 shares of common stock issued in the conversion. On May 12, 1998, the initial loan agreement was amended to allow the ESOP to borrow an additional $8.2 million in order to fund the purchase of 633,750 shares of common stock. At the same time the term of the loan was extended from the initial twelve years to thirty years . As part of the establishment of the Matching Contribution Employee Stock Ownership Plan the term of the loan was reduced by one year and now expires in 2026 . The amended loan is to be repaid from contributions by the Bank to the ESOP trust. The Bank is required to make contributions to the ESOP in amounts at least equal to the principal and interest requirement of the debt, assuming a fixed interest rate of 8.25% . The Bank’s obligation to make such contributions is reduced to the extent of any dividends paid by the Company on unallocated shares and any investment earnings realized on such dividends. As of December 31, 2017 and 2016 , contributions to the ESOP, which were used to fund principal and interest payments on the ESOP debt, totaled $505,000 and $507,000 , respectively. During 2017 and 2016 , $195,000 and $194,000 , respectively, of dividends paid on unallocated ESOP shares were used for debt service. At December 31, 2017 and 2016 , the loan had an outstanding balance of $3.1 million and $3.3 million , respectively, and the ESOP had unallocated shares of 293,860 and 327,362 , respectively. At December 31, 2017 , the unallocated shares had a fair value of $7.7 million . The unamortized balance of the ESOP is shown as unallocated common stock held by the ESOP and is reflected as a reduction of stockholders’ equity. For the years ended December 31, 2017 , 2016 and 2015 , the Bank recorded compensation expense related to the ESOP of $919,000 , $657,000 , and $603,000 , respectively, including $637,000 , $373,000 , and $318,000 , respectively, representing additional compensation expense to reflect the increase in the average fair value of committed to be released and allocated shares in excess of the Bank’s cost. As of December 31, 2017 , 2,319,525 shares had been allocated to participants and 33,502 shares were committed to be released. |
Incentive Plan
Incentive Plan | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Plan | Incentive Plan On April 20, 2006, the OceanFirst Financial Corp. 2006 Stock Incentive Plan, which authorizes the granting of stock options or awards of common stock, was approved by stockholders. On May 5, 2011, the OceanFirst Financial Corp. 2011 Stock Incentive Plan, which also authorizes the granting of stock options or awards of common stock, was approved by stockholders. This plan was subsequently amended on June 2, 2017. The purpose of these plans is to attract and retain qualified personnel in key positions, provide officers, employees and non-employee directors (“Outside Directors”) with a proprietary interest in the Company as an incentive to contribute to the success of the Company, align the interests of management with those of other stockholders and reward employees for outstanding performance. All officers, other employees and Outside Directors of the Company and its affiliates are eligible to receive awards under the plans. Under the amended 2011 Stock Incentive Plan, the Company is authorized to issue up to an additional 4,000,000 shares subject to option or, in lieu of options, up to 1,600,000 shares in the form of stock awards. At December 31, 2017 , 1,799,047 options or 719,619 awards remain to be issued. Under the 2006 Stock Incentive Plan, the Company was authorized to issue up to an additional 1,000,000 shares subject to options, or in lieu of options, up to 333,333 shares in the form of stock awards. At December 31, 2017 , no options or awards remain to be issued. As part of the Colonial American acquisition, 370,000 options were granted in 2015 for the conversion of Colonial American outstanding options. These options had a weighted average exercise price of $26.11 and were fully vested upon acquisition. As part of the Cape acquisition, 599,373 options were granted in 2016 for the conversion of outstanding Cape options. These options had a weighted average exercise price of $10.34 per option and were fully vested upon acquisition. As part of the Ocean Shore acquisition, 287,595 options were granted in 2016 for the conversion of outstanding Ocean Shore options. These options had a weighted average exercise price of $9.37 per option and were fully vested upon acquisition. The Company will not recognize compensation expense in the future on these options as they have been accounted for as part of the acquisition. All options expire 10 years from the date of grant and generally vest at the rate of 20% per year. The exercise price of each option equals the closing market price of the Company’s stock on the date of grant. The Company typically issues Treasury shares or authorized but unissued shares to satisfy stock option exercises. The Company recognizes the grant-date fair value of stock options and other stock-based compensation issued to employees in the income statement. The modified prospective transition method was adopted and, as a result, the income statement includes $1.2 million , $829,000 , and $783,000 , of expense for stock option grants and $1.0 million , $684,000 , and $517,000 , of expense for stock award grants, for the years ended December 31, 2017 , 2016 and 2015 , respectively. At December 31, 2017 , the Company had $5.4 million in compensation cost related to non-vested options and stock awards not yet recognized. This cost will be recognized over the remaining vesting period of 3.4 years. The fair value of stock options granted by the Company was estimated through the use of the Black-Scholes option pricing model applying the following assumptions: 2017 2016 2015 Risk-free interest rate 2.31 % 1.69 % 1.72 % Expected option life 7 years 7 years 7 years Expected volatility 21 % 21 % 28 % Expected dividend yield 2.07 % 3.01 % 2.99 % Weighted average fair value of an option share granted during the year $ 5.62 $ 2.64 $ 3.58 Intrinsic value of options exercised during the year (in thousands) 7,882 3,412 136 The risk-free interest rate is based on the U.S. Treasury rate with a term equal to the expected option life. The expected option life conforms to the Company’s actual experience. Expected volatility is based on actual historical results. Compensation cost is recognized on a straight line basis over the vesting period. A summary of option activity for the years ended December 31, 2017 , 2016 and 2015 are as follows: 2017 2016 2015 Number of Shares Weighted Average Exercise Price Number Of Shares Weighted Average Exercise Price Number Of Shares Weighted Average Exercise Price Outstanding at beginning of year 2,758,833 $ 14.94 2,281,931 $ 17.62 1,751,270 $ 15.94 Granted 335,150 29.01 317,460 17.27 238,305 17.39 Assumed in acquisition — — 886,968 10.30 370,000 26.11 Exercised (567,153 ) 14.39 (375,576 ) 13.20 (29,480 ) 13.43 Forfeited (35,099 ) 18.42 (11,625 ) 16.37 (8,900 ) 14.56 Expired (2,417 ) 11.70 (340,325 ) 25.02 (39,264 ) 25.31 Outstanding at end of year 2,489,314 $ 16.91 2,758,833 $ 14.94 2,281,931 $ 17.62 Options exercisable 1,608,762 1,912,630 1,497,960 The following table summarizes information about stock options outstanding at December 31, 2017 : Options Outstanding Options Exercisable Exercise Prices Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 8.44 to 9.98 283,707 2.6 years $ 8.97 283,707 2.6 years $ 8.97 9.99 to 12.28 293,557 2.8 10.74 293,557 2.8 10.74 12.40 to 14.62 648,568 4.3 14.07 588,243 4.2 14.05 16.06 to 18.45 787,082 7.0 17.40 304,505 6.2 17.42 23.00 to 29.01 476,400 7.7 28.50 138,750 4.1 27.34 2,489,314 5.4 years $ 16.91 1,608,762 4.0 years $ 14.34 The aggregate intrinsic value for stock options outstanding and stock options exercisable at December 31, 2017 is $24.3 million and $19.3 million , respectively. A summary of the granted but unvested stock award activity for the years ended December 31, 2017 , 2016 and 2015 are as follows: 2017 2016 2015 Number of Shares Weighted Average Grant Date Fair Value Number Of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding at beginning of year: 156,945 $ 17.25 126,960 $ 16.90 81,775 $ 15.85 Granted 69,175 28.70 66,770 17.66 70,890 17.39 Vested (47,379 ) 17.32 (33,651 ) 16.31 (23,587 ) 14.86 Forfeited (9,038 ) 19.14 (3,134 ) 16.54 (2,118 ) 15.16 Outstanding at end of year 169,703 $ 21.79 156,945 $ 17.25 126,960 $ 16.90 |
Commitments, Contingencies and
Commitments, Contingencies and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Concentrations of Credit Risk | Commitments, Contingencies and Concentrations of Credit Risk The Company, in the normal course of business, is party to financial instruments and commitments which involve, to varying degrees, elements of risk in excess of the amounts recognized in the consolidated financial statements. These financial instruments and commitments include unused consumer lines of credit and commitments to extend credit. At December 31, 2017 , the following commitments and contingent liabilities existed which are not reflected in the accompanying consolidated financial statements (in thousands): December 31, 2017 Unused consumer and construction loan lines of credit (primarily floating-rate) $ 207,006 Unused commercial loan lines of credit (primarily floating-rate) 315,400 Other commitments to extend credit: Fixed-Rate 63,819 Adjustable-Rate 2,379 Floating-Rate 22,740 The Company’s fixed-rate loan commitments expire within 90 days of issuance and carried interest rates ranging from 2.25% to 5.99% at December 31, 2017 . The Company’s maximum exposure to credit losses in the event of nonperformance by the other party to these financial instruments and commitments is represented by the contractual amounts. The Company uses the same credit policies in granting commitments and conditional obligations as it does for financial instruments recorded in the consolidated statements of financial condition. These commitments and obligations do not necessarily represent future cash flow requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s assessment of risk. Substantially all of the unused consumer and construction loan lines of credit are collateralized by mortgages on real estate. At December 31, 2017 , the Company is obligated under noncancelable operating leases for premises and equipment. Rental expense under these leases aggregated approximately $3.2 million , $3.1 million , and $2.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The projected minimum rental commitments as of December 31, 2017 are as follows (in thousands): For the Year Ended December 31, 2018 $ 2,009 2019 1,990 2020 1,968 2021 1,798 2022 1,612 Thereafter 6,859 Total $ 16,236 The Company grants one-to-four family and commercial first mortgage real estate loans to borrowers primarily located in central and southern New Jersey. The ability of borrowers to repay their obligations is dependent upon various factors including the borrowers’ income and net worth, cash flows generated by the underlying collateral, value of the underlying collateral and priority of the Company’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the Company’s control; the Company is, therefore, subject to risk of loss. A decline in real estate values could cause some residential and commercial mortgage loans to become inadequately collateralized, which would expose the Bank to a greater risk of loss. The Company believes its lending policies and procedures adequately minimize the potential exposure to such risks. Collateral and/or guarantees are required for all loans. The Company is a defendant in certain claims and legal actions arising in the ordinary course of business. Management and its legal counsel are of the opinion that the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following reconciles average shares outstanding for basic and diluted earnings per share for the years ended December 31, 2017 , 2016 and 2015 (in thousands): December 31, 2017 2016 2015 Weighted average shares outstanding 32,490 23,481 17,037 Less: Unallocated ESOP shares (311 ) (344 ) (378 ) Unallocated incentive award shares and shares held by deferred compensation plan (66 ) (44 ) (59 ) Average basic shares outstanding 32,113 23,093 16,600 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan 1,012 433 211 Average diluted shares outstanding 33,125 23,526 16,811 For the years ended December 31, 2017 , 2016 and 2015 , 331,000 , 882,000 , and 926,000 , respectively, of antidilutive stock options were excluded from earnings per share calculations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair market value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or the most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The Company uses valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability and developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and developed based on the best information available in the circumstances. In that regard, a fair value hierarchy has been established for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Movements within the fair value hierarchy are recognized at the end of the applicable reporting period. There were no transfers between the levels of the fair value hierarchy for the years ended December 31, 2017 , 2016 and 2015 . The fair value hierarchy is as follows: Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlations or other means. Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. Assets and Liabilities Measured at Fair Value A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Secur ities Available-for-Sale Securities classified as available-for-sale are reported at fair value. Fair value for these securities is determined using a quoted price in an active market or exchange (Level 1) or estimated by using inputs other than quoted prices that are based on market observable information (Level 2). Level 2 securities are priced through third-party pricing services or s ecurity industry sources that actively participate in the buying and selling of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain securities without relying exclusively on quoted prices for the specific securities, but comparing the securities to benchmark or comparable securities. Other Real Estate Owned and Impaired Loans Other real estate owned and loans measured for impairment based on the fair value of the underlying collateral are recorded at estimated fair value, less estimated selling costs. Fair value is based on independent appraisals. The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2017 and 2016 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Fair Value Measurements at Reporting Date Using: Total Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs December 31, 2017 Items measured on a recurring basis: Investment securities available-for-sale: U.S. agency obligations $ 81,581 $ — $ 81,581 $ — Other investments 8,700 8,700 — — Items measured on a non-recurring basis: Other real estate owned 8,186 — — 8,186 Loans measured for impairment based on the fair value of the underlying collateral 16,496 — — 16,496 December 31, 2016 Items measured on a recurring basis: Investment securities available-for-sale: U.S. agency obligations $ 12,224 $ — $ 12,224 $ — Other investments 8,551 8,551 — — Items measured on a non-recurring basis: Other real estate owned 9,803 — — 9,803 Loans measured for impairment based on the fair value of the underlying collateral 2,419 — — 2,419 Assets and Liabilities Disclosed at Fair Value A description of the valuation methodologies used for assets and liabilities disclosed at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Cash and Due from Banks For cash and due from banks, the carrying amount approximates fair value. Securities Held-to-Maturity Securities classified as held-to-maturity are carried at amortized cost, as the Company has the positive intent and ability to hold these securities to maturity. The Company determines the fair value of the securities utilizing Level 1, Level 2 and, infrequently, Level 3 inputs. In general, fair value is based upon quoted market prices, where available. Most of the Company’s investment and mortgage-backed securities, however, are fixed income instruments that are not quoted on an exchange, but are bought and sold in active markets. Prices for these instruments are obtained through third-party pricing vendors or security industry sources that actively participate in the buying and selling of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain securities without relying exclusively on quoted prices for the specific securities, but comparing the securities to benchmark or comparable securities. Fair value estimates are made at a point in time, based on relevant market data as well as the best information available about the security. Fair value estimates for securities for which limited observable market data is available are based on judgments regarding current economic conditions, liquidity discounts, credit and interest rate risks, and other factors. These estimates involve significant uncertainties and judgments and cannot be determined with precision. As a result, such calculated fair value estimates may not be realizable in a current sale or immediate settlement of the security. The Company utilizes third-party pricing services to obtain fair values for most of its securities held-to-maturity. Management’s policy is to obtain and review all available documentation from the third-party pricing service relating to their fair value determinations, including their methodology and summary of inputs. Management reviews this documentation, makes inquiries of the third-party pricing service and makes a determination as to the level of the valuation inputs. Based on the Company’s review of the available documentation from the third-party pricing service, management concluded that Level 2 inputs were utilized for all securities except for certain investments classified as Level 1, which are derived from quoted market prices in active markets and certain state and municipal obligations known as bond anticipation notes (“BANs”) where management utilized Level 3 inputs. In the case of the Level 2 securities, the significant observable inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, other market information and observations of equity and credit default swap curves related to the issuer. Management based its fair value estimate of the BANs on the local nature of the issuing entities, the short-term life of the security and current economic conditions. Federal Home Loan Bank of New York Stock The fair value for Federal Home Loan Bank of New York stock is its carrying value since this is the amount for which it could be redeemed. There is no active market for this stock and the Company is required to maintain a minimum investment based upon the outstanding balance of mortgage related assets and outstanding borrowings. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential mortgage, consumer and commercial. Each loan category is further segmented into fixed and adjustable rate interest terms. Fair value of performing and non-performing loans was estimated by discounting the future cash flows, net of estimated prepayments, at a rate for which similar loans would be originated to new borrowers with similar terms. Fair values estimated in this manner do not fully incorporate an exit price approach to fair value, but instead are based on a comparison to current market rates for comparable loans. Deposits Other than Time Deposits The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and interest-bearing checking accounts and money market accounts are, by definition, equal to the amount payable on demand. The related insensitivity of the majority of these deposits to interest rate changes creates a significant inherent value which is not reflected in the fair value reported. Time Deposits The fair value of time deposits are based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Securities Sold Under Agreements to Repurchase with Retail Customers Fair value approximates the carrying amount as these borrowings are payable on demand and the interest rate adjusts monthly. Borrowed Funds Fair value estimates are based on discounting contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities. The book value and estimated fair value of the Bank’s significant financial instruments not recorded at fair value as of December 31, 2017 and December 31, 2016 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Value Level 1 Inputs Level 2 Inputs Level 3 Inputs December 31, 2017 Financial Assets: Cash and due from banks $ 109,613 $ 109,613 $ — $ — Securities held-to-maturity 764,062 — 751,182 10,478 Federal Home Loan Bank of New York stock 19,724 — — 19,724 Loans receivable and mortgage loans held-for-sale 3,966,014 — — 3,962,689 Financial Liabilities: Deposits other than time deposits 3,735,694 — 3,735,694 — Time deposits 607,104 — 599,677 — Securities sold under agreements to repurchase with retail customers 79,668 79,668 — — Federal Home Loan Bank advances and other borrowings 345,210 — 341,820 — December 31, 2016 Financial Assets: Cash and due from banks $ 301,373 $ 301,373 $ — $ — Securities held-to-maturity 589,912 — 586,504 3,030 Federal Home Loan Bank of New York stock 19,313 — — 19,313 Loans receivable and mortgage loans held-for-sale 3,804,994 — — 3,834,677 Financial Liabilities: Deposits other than time deposits 3,540,647 — 3,540,647 — Time deposits 647,103 — 644,354 — Securities sold under agreements to repurchase with retail customers 69,935 69,935 — — Federal Home Loan Bank advances and other borrowings 307,057 — 304,901 — Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because a limited market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other significant unobservable inputs. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include premises and equipment, Bank Owned Life Insurance, deferred tax assets and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Parent-Only Financial Informati
Parent-Only Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent-Only Financial Information | Parent-Only Financial Information The following condensed statements of financial condition at December 31, 2017 and 2016 and condensed statements of operations and cash flows for the years ended December 31, 2017 , 2016 and 2015 for OceanFirst Financial Corp. (parent company only) reflects the Company’s investment in its wholly-owned subsidiaries, the Bank and OceanFirst Risk Management, Inc., using the equity method of accounting. Condensed Statement of Financial Condition (in thousands) December 31, 2017 2016 Assets: Cash and due from banks $ 16 $ 9,100 Advances to subsidiary Bank 33,749 12,358 Investment securities 1,000 1,000 ESOP loan receivable 3,051 3,285 Investment in subsidiary Bank 617,866 602,274 Other assets 3,343 3,522 Total assets $ 659,025 $ 631,539 Liabilities and Stockholders’ Equity: Borrowings $ 56,519 $ 56,398 Other liabilities 565 3,238 Stockholders’ equity 601,941 571,903 Total liabilities and stockholders’ equity $ 659,025 $ 631,539 Condensed Statements of Operations (in thousands) For the Year Ended December 31, 2017 2016 2015 Dividend income – subsidiary Bank $ 32,000 $ 4,000 $ 16,000 Interest and dividend income – investment securities 63 62 3 Interest income – advances to subsidiary Bank 280 118 51 Interest income – ESOP loan receivable 321 322 306 Total income 32,664 4,502 16,360 Interest expense – borrowings 2,592 1,049 736 Operating expenses 1,788 1,697 1,452 Income before income taxes and undistributed earnings of subsidiary Bank 28,284 1,756 14,172 Benefit for income taxes 973 780 634 Income before undistributed earnings of subsidiary Bank 29,257 2,536 14,806 Undistributed earnings of subsidiary Bank 13,213 20,510 5,516 Net Income $ 42,470 $ 23,046 $ 20,322 Condensed Statements of Cash Flows (in thousands) For the Year Ended December 31, 2017 2016 2015 Cash flows from operating activities: Net income $ 42,470 $ 23,046 $ 20,322 (Increase) decrease in advances to subsidiary Bank (23,371 ) 3,838 6,580 Undistributed earnings of subsidiary Bank (13,213 ) (20,510 ) (5,516 ) Amortization of deferred costs on borrowings 121 — — Change in other assets and other liabilities 607 (1,619 ) (707 ) Net cash provided by operating activities 6,614 4,755 20,679 Cash flows from investing activities: Purchase of investment securities — — (1,000 ) Repayments on ESOP loan receivable 234 218 204 Cash consideration for acquisition, net of cash received — (19,274 ) (127 ) Net cash provided by (used in) investing activities 234 (19,056 ) (923 ) Cash flows from financing activities: Net proceeds from issuance of subordinated notes — 33,899 — Repayment of borrowings — — (5,000 ) Dividends paid (19,286 ) (12,616 ) (8,693 ) Purchase of treasury stock — (1,878 ) (6,459 ) Exercise of stock options 3,354 3,989 396 Net cash (used in) provided by financing activities (15,932 ) 23,394 (19,756 ) Net (decrease) increase in cash and due from banks (9,084 ) 9,093 — Cash and due from banks at beginning of year 9,100 7 7 Cash and due from banks at end of year $ 16 $ 9,100 $ 7 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On June 30, 2017, the Company announced a definitive agreement and plan of merger with Sun, headquartered in Mount Laurel, New Jersey. The transaction closed on January 31, 2018 and based on the $26.45 per share closing price of the Company’s common stock on January 31, 2018, the total transaction value was $474.9 million . The total number of shares issued in the transaction was approximately 15,093,000 . Sun operated 30 full-service banking offices, three loan offices and two administrative offices. The acquisition added $2.1 billion to assets, $1.5 billion to loans, and $1.6 billion to deposits. Effective January 31, 2018, the Bank converted to a national bank charter and the Company became a bank holding company. The conversions on January 31, 2018 do not change the entities which regulate and supervise the Bank and Company. |
Selected Consolidated Quarterly
Selected Consolidated Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Consolidated Quarterly Financial Data | SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (dollars in thousands, except per share data) (Unaudited) For the Quarter Ended December 31 September 30 June 30 March 31 2017 Interest income $ 47,906 $ 48,030 $ 46,879 $ 46,014 Interest expense 5,401 4,974 4,705 4,531 Net interest income 42,505 43,056 42,174 41,483 Provision for loans losses 1,415 1,165 1,165 700 Net interest income after provision for loan losses 41,090 41,891 41,009 40,783 Other income 6,745 7,359 6,973 5,995 Operating expenses (excluding merger related and branch consolidation expenses) 26,434 27,580 28,527 29,481 Merger related and branch consolidation expenses 1,259 3,153 8,606 1,480 Income before provision for income taxes 20,142 18,517 10,849 15,817 Provision for income taxes 10,186 5,700 3,170 3,799 Net income $ 9,956 $ 12,817 $ 7,679 $ 12,018 Basic earnings per share $ 0.31 $ 0.40 $ 0.24 $ 0.38 Diluted earnings per share $ 0.30 $ 0.39 $ 0.23 $ 0.36 2016 Interest income $ 39,904 $ 37,307 $ 33,141 $ 23,073 Interest expense 4,150 3,372 3,127 2,514 Net interest income 35,754 33,935 30,014 20,559 Provision for loans losses 510 888 662 563 Net interest income after provision for loan losses 35,244 33,047 29,352 19,996 Other income 6,257 5,896 4,883 3,376 Operating expenses (excluding merger related expenses) 25,833 23,715 21,457 15,313 Merger related expenses 6,632 1,311 7,189 1,402 Income before provision for income taxes 9,036 13,917 5,589 6,657 Provision for income taxes 2,984 4,789 1,928 2,452 Net income $ 6,052 $ 9,128 $ 3,661 $ 4,205 Basic earnings per share $ 0.22 $ 0.36 $ 0.16 $ 0.25 Diluted earnings per share $ 0.22 $ 0.35 $ 0.16 $ 0.25 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of OceanFirst Financial Corp. (the “Company”) and its wholly-owned subsidiaries, OceanFirst Bank (the “Bank”) and OceanFirst Risk Management, Inc., and the Bank’s wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., and its wholly-owned subsidiary OceanFirst Management Corp., and its wholly-owned subsidiary OceanFirst Realty Corp., OceanFirst Services, LLC and its wholly-owned subsidiary OFB Reinsurance, Ltd., 975 Holdings, LLC, Hooper Holdings, LLC., TRREO Holdings LLC, Casaba Real Estate Holdings Corporation, and Cohensey Bridge, L.L.C.. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts previously reported have been reclassified to conform to the current year’s presentation. |
Business | Business The Bank provides a range of community banking services to customers through a network of branches and offices in central and southern New Jersey. The Bank is subject to competition from other financial institutions; it is also subject to the regulations of certain regulatory agencies and undergoes periodic examinations by those regulatory authorities. |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The preparation of the accompanying consolidated financial statements in conformity with these accounting principles requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the evaluation of securities and goodwill for other-than-temporary impairment. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of interest-bearing deposits in other financial institutions and loans of Federal funds. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. |
Securities | Securities Securities include securities held-to-maturity and securities available-for-sale. Management determines the appropriate classification at the time of purchase. If management has the positive intent not to sell and the Company would not be required to sell prior to maturity, the securities are classified as held-to-maturity securities. Such securities are stated at amortized cost. During 2013, the Company transferred $536.0 million of previously designated available-for-sale securities to held-to-maturity designation at estimated fair value. The Company has the ability and intent to hold these securities as an investment until maturity or call. The securities transferred had an unrealized loss of $13.3 million at the time of transfer which continues to be reflected in accumulated other comprehensive income, net of subsequent amortization, which is being recognized over the remaining life of the securities. Securities in the available-for-sale category are securities which the Company may sell prior to maturity as part of its asset/liability management strategy. Such securities are carried at estimated fair value and unrealized gains and losses, net of related tax effect, are excluded from earnings, but are included as a separate component of stockholders’ equity and as part of comprehensive income. Discounts and premiums on securities are accreted or amortized using the level-yield method over the estimated lives of the securities, including the effect of prepayments. Gains or losses on the sale of such securities are included in other income using the specific identification method. |
Other-Than-Temporary Impairments on Securities | Other-Than-Temporary Impairment on Securities One of the significant estimates related to securities is the evaluation for other-than-temporary impairment. If a determination is made that a debt security is other-than-temporarily impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as an other-than-temporary impairment charge in non-interest income as a component of gain (loss) on securities, net. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income, net of tax. The evaluation of securities for impairment is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether declines in the estimated fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions, the issuer’s financial condition and/or future prospects, the effects of changes in interest rates or credit spreads and the expected recovery period. On a quarterly basis the Company evaluates the securities portfolio for other-than-temporary impairment. Securities that are in an unrealized loss position are reviewed to determine if an other-than-temporary impairment is present based on certain quantitative factors. The primary factors considered in evaluating whether a decline in value is other-than-temporary include: (a) the length of time and extent to which the estimated fair value has been less than cost or amortized cost and the expected recovery period of the security, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments and (d) whether the Company intends to sell the security and whether it is more likely than not that the Company will not be required to sell the security. |
Loans Receivable | Loans Receivable Loans receivable, other than loans held-for-sale, are stated at unpaid principal balance, plus unamortized premiums less unearned discounts, net of deferred loan origination and commitment fees and costs, and the allowance for loan losses. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income using the level-yield method over the contractual life of the specifically identified loans, adjusted for actual prepayments. For each loan class, a loan is considered past due when a payment has not been received in accordance with the contractual terms. Loans which are more than 90 days past due, including impaired loans, and other loans in the process of foreclosure are placed on non-accrual status. Interest income previously accrued on these loans, but not yet received, is reversed in the current period. Any interest subsequently collected is credited to income in the period of recovery only after the full principal balance has been brought current. A loan is returned to accrual status when all amounts due have been received and the remaining principal balance is deemed collectible. A loan is considered impaired when it is deemed probable that the Company will not collect all amounts due according to the contractual terms of the loan agreement. The Company has defined the population of impaired loans to be all non-accrual commercial real estate, multi-family, land, construction and commercial and industrial loans in excess of $250,000 . Impaired loans are individually assessed to determine that the loan’s carrying value is not in excess of the estimated fair value of the collateral or the present value of the loan’s expected future cash flows. Smaller balance homogeneous loans that are collectively evaluated for impairment, such as residential mortgage loans and consumer loans, are specifically excluded from the impaired loan portfolio, except when they are modified in a trouble debt restructuring. Loan losses are charged-off in the period the loans, or portion, thereof are deemed uncollectible, generally after the loan becomes 120 days delinquent. The Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated fair value of the underlying collateral, less cost to sell, if it is determined that it is probable that recovery will come primarily from the sale of the collateral. Purchased credit-impaired (“PCI”) loans are acquired at a discount that is due, in part, to credit quality. PCI loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Interest income on loans acquired at a discount is based on the acquired loans’ expected cash flows. The acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flow. The difference between the undiscounted cash flows expected at acquisition and the investment in the loans, or the “accretable yield”, is recognized as interest income utilizing the level-yield method over the life of each pool. Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment of the yield on the pool over its remaining life, while decreases in expected cash flows are recognized as impairment through a loss provision and an increase in the allowance for loan losses. Therefore, the allowance for loan losses on these impaired pools reflect only losses incurred after the acquisition (representing the present value of all cash flows that were expected at acquisition but currently are not expected to be received). The Bank periodically evaluates the remaining contractual required payments due and estimates of cash flows expected to be collected. These evaluations require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Changes in the contractual required payments due and estimated cash flows expected to be collected may result in changes in the accretable yield and non-accretable difference or reclassifications between accretable yield and the non-accretable difference. For the pools with better than expected cash flows, the forecasted increase is recorded as an additional accretable yield that is recognized as a prospective increase to interest income on loans. |
Loans Held-for-sale | Loans Held for Sale The Company may sell part of its mortgage loan originations in order to manage interest rate risk and liquidity. Prior to 2017, the Bank had generally sold fixed-rate mortgage loans with final maturities in excess of 15 years . However, with few exceptions, since the beginning of 2017, the Bank generally retains newly originated mortgage loans in its portfolio. In determining whether to retain mortgages, management considers the Company’s overall interest rate risk position, the volume of such loans, the loan yield and the types and amount of funding sources. The Company may also retain mortgage loan production in order to improve yields and increase balance sheet leverage. In addition, management periodically considers the sale of commercial and other loans as part of its management of credit risk. Loans held for sale are carried at the lower of unpaid principal balance, net, or estimated fair value on an aggregate basis. Estimated fair value is determined based on bid quotations from securities dealers. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation account that reflects probable incurred losses in the loan portfolio. The adequacy of the allowance for loan losses is based on management’s evaluation of the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic and regulatory conditions, as well as organizational changes. Additions to the allowance arise from charges to operations through the provision for loan losses or from the recovery of amounts previously charged-off. The allowance is reduced by loan charge-offs. The allowance for loan losses is maintained at an amount management considers sufficient to provide for probable losses. A cquired loans are marked to fair value on the date of acquisition and are evaluated on a quarterly basis to ensure the necessary purchase accounting updates are made in parallel with the allowance for loan loss calculation. Acquired loans that have been renewed since acquisition are included in the allowance for loan loss calculation since these loans have been underwritten to the Bank’s guidelines. Acquired loans that have not been renewed since acquisition, or that have a PCI mark, are excluded from the allowance for loan loss calculation. The Bank calculates a general valuation allowance for these excluded acquired loans and compares that to the remaining general credit and interest rate marks. To the extent the remaining general credit and interest rate marks exceed the calculated general valuation allowance, no additional reserve is required. If the calculated general valuation allowance exceeds the remaining general credit and interest rate marks, the Bank would record an adjustment to the extent necessary. The Bank’s allowance for loan losses includes specific allowances and a general allowance, each updated on a quarterly basis. A specific allowance is determined for all impaired loans (excluding PCI loans). The Bank defines an impaired loan as all non-accrual commercial real estate, multi-family, land, construction and commercial loans in excess of $250,000. Impaired loans also include all loans modified as troubled debt restructurings. For collateral dependent loans, the specific allowance represents the difference between the Bank’s recorded investment in the loan, net of any interim charge-offs, and the estimated fair value of the collateral, less estimated selling costs. Impairment for all other impaired loans is calculated using the present value of the expected future cash flows. If a loan becomes 90 days delinquent, the Bank obtains an updated collateral appraisal. For residential real estate loans, the appraisal is updated annually if the loan remains delinquent for an extended period. For non-accrual commercial real estate loans, the Bank assesses whether there has likely been an adverse change in the collateral value supporting the loan. The Bank utilizes information based on its knowledge of changes in real estate conditions in its lending area to identify whether a possible deterioration of collateral value has occurred. Based on the severity of the changes in market conditions, management determines if an updated commercial real estate appraisal is warranted or if downward adjustments to the previous appraisal are warranted. If it is determined that the deterioration of the collateral value is significant enough to warrant ordering a new appraisal, an estimate of the downward adjustments to the existing appraised value is used in assessing if additional specific reserves are necessary until the updated appraisal is received. A general allowance is determined for all loans that are not individually evaluated for impairment (excluding acquired loans that have not been renewed under the Bank’s underwriting criteria). In determining the level of the general allowance, the Bank segments the loan portfolio into the following loan segments: residential real estate; consumer; investor-owned commercial real estate; owner-occupied commercial real estate; and commercial and industrial. The portfolio segments are further segmented by delinquency status and risk rating (Pass, Special Mention, Substandard and Doubtful). An estimated loss factor is then applied to each delinquency status and risk rating category. To determine the loss factor, the Bank utilizes historical loss experience as a percent of the outstanding loan principal balance adjusted for certain qualitative factors and the loss emergence period. The Bank’s historical loss experience is based on a rolling 24 -month look-back period for each portfolio segment. The look-back period was selected based on (1) management’s judgment that this period captures sufficient loss events (in both dollar terms and number of individual events) to be relevant; and (2) that the Bank’s underwriting criteria and risk characteristics have remained relatively stable throughout this period. The historical loss experience is adjusted for certain qualitative factors including, but not limited to, (1) delinquency trends, (2) net charge-off trends, (3) nature and volume of the loan portfolio, (4) loan policies and underwriting standards, (5) experience and ability of lending personnel, (6) concentrations of credit, (7) loan review system, and external factors such as (8) changes in current economic conditions, (9) local competition and (10) regulation. Economic factors that the Bank considered in its estimate of the allowance for loan losses include: local and regional trends in economic growth, unemployment and real estate values. The Bank considers the applicability of each of these qualitative factors in estimating the general allowance for each portfolio segment. Each quarter, the Bank considers the current conditions for each of the qualitative factors, as well as a forward looking view on trends and events, to support an assessment unique to each portfolio segment. The Bank calculates and analyzes the loss emergence period on an annual basis or more frequently if conditions warrant. The Bank’s methodology is to use loss events in the past eight quarters to determine the loss emergence period for each loan segment. The loss emergence period is specific to each loan segment. It represents the amount of time that has elapsed between (1) the occurrence of a loss event, which resulted in a potential loss and (2) the confirmation of the potential loss, when the Bank records an initial charge-off or downgrades the risk-rating of the loan to substandard. The Bank also maintains an unallocated portion of the allowance for loan losses. The primary purpose of the unallocated component is to account for the inherent factors that cannot be practically assigned to individual loss categories, including the periodic update of appraisals, subjectivity of the Bank’s credit review and risk rating process, and continued economic uncertainty that may not be fully captured in the Bank’s loss history or the qualitative factors. Upon completion of the aforementioned procedures, an overall management review is performed including ratio analyses to identify divergent trends compared with the Bank’s own historical loss experience, the historical loss experience of the Bank’s peer group and management’s understanding of general regulatory expectations. Based on that review, management may identify issues or factors that previously had not been considered in the estimation process, which may warrant further analysis or adjustments to estimated loss factors or the allowance for loan losses. |
Reserve for Repurchased Loans and Loss Sharing Obligations | Reserve for Repurchased Loans and Loss Sharing Obligations The reserve for repurchased loans and loss sharing obligations relates to potential losses on loans sold which may have to be repurchased due to a violation of representations and warranties and an estimate of the Bank’s obligation under a loss sharing arrangement for loans sold to the Federal Home Loan Bank (“FHLB”). Provisions for losses are charged to gain on sale of loans and credited to the reserve while actual losses are charged to the reserve. The reserve represents the Company’s estimate of the total losses expected to occur and is considered to be adequate by management based upon the Company’s evaluation of the potential exposure related to the loan sale agreements over the period of repurchase risk. The reserve for repurchased loans and loss sharing obligations is included in other liabilities on the Company’s consolidated statement of financial condition. |
Other Real Estate Owned ("OREO") | Other Real Estate Owned Other real estate owned (“OREO”) is carried at the lower of cost or estimated fair value, less estimated costs to sell. When a property is acquired, the excess of the loan balance over estimated fair value is charged to the allowance for loan losses. Operating results from other real estate owned, including rental income, operating expenses, gains and losses realized from the sales of other real estate owned and subsequent write-downs are recorded as incurred. |
Premises and Equipment | Premises and Equipment Land is carried at cost and premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation and amortization or, in the case of acquired premises, the value on the acquisition date. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or leases. Generally, depreciable lives are as follows: computer equipment: 3 years ; furniture, fixtures and other electronic equipment: 5 years ; building improvements: 10 years ; and buildings: 30 years . Repair and maintenance items are expensed and improvements are capitalized. Gains and losses on dispositions are reflected in current operations. |
Income Taxes | Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Any interest and penalties on taxes payable are included as part of the provision for income taxes. |
Impact of New Accounting Pronouncements | Impact of New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” and subsequent related Updates modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other guidance. The updates also requires new qualitative and quantitative disclosures, including disaggregation of revenues and descriptions of performance obligations. The Company will adopt the guidance in first quarter of 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other United States Generally Accepted Accounting Principles (“U.S. GAAP”), the new revenue recognition standard does not have a material impact on the Company’s consolidated financial statements. The Company’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts. No material changes related to the timing or amount of revenue recognition have been identified. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities.” The main objective in developing this new ASU is to enhance the reporting model for financial instruments to provide users of financial statements with more useful information. The update requires equity investments to be measured at fair value with changes in fair value recognized in net income. It simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a quantitative assessment to identify impairment. The amendment eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. It requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Financial assets and financial liabilities are to be presented separately by measurement category and the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated with other deferred tax assets. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact that the guidance will have on the Company’s consolidated financial statements. The Company has begun its evaluation of the amended guidance including the potential impact on its consolidated financial statements. To date, the Company has identified its leased real estate as within the scope of the guidance. The Company continues to evaluate the impact of the guidance, including determining whether other contracts exist that are deemed to be in scope. As such, no conclusions have yet been reached regarding the potential impact of adoption on the Company’s consolidated financial statements, although total assets and total liabilities will increase by similar amounts. Further, to date, no guidance has been issued by either the Company’s or the Bank’s primary regulator with respect to how the impact of the amended standard is to be treated for regulatory capital purposes. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718).” The objective of the Update is to simplify accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the Update, all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. An entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current accounting) or account for forfeitures when they occur. Within the Cash Flow Statement, excess tax benefits should be classified along with other income tax cash flows as an operating activity, and cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. The amendments in this Update were effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted this ASU on January 1, 2017, resulting in an equity reclassification of $11.1 million and an income statement benefit through a $1.8 million decrease in income tax expense. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company has begun its evaluation of the amended guidance including the potential impact on its consolidated financial statements. As a result of the required change in approach toward determining estimated credit losses from the current “incurred loss” model to one based on estimated cash flows over a loan’s contractual life, adjusted for prepayments (a “life of loan” model), the Company expects that the new guidance will result in an increase in the allowance for loan losses, particularly for longer duration loan portfolios. The Company also expects that the new guidance may result in an allowance for debt securities. In both cases, the extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Further, to date, no guidance has been issued by either the Company’s or the Bank’s primary regulator with respect to how the impact of the amended standard is to be treated for regulatory purposes. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” This ASU is intended to reduce diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, with early adoption permitted, including adoption in an interim period. A retrospective transition method should be applied to each period presented, unless it is impracticable to apply the amendments retrospectively for some of the issues, then the amendments for those issues would be applied prospectively as of the earliest date practicable. T he adoption of this update did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” This ASU narrows the definition of a business and clarifies that, to be considered a business, the fair value of the gross assets acquired (or disposed of) may not be substantially all concentrated in a single identifiable asset or group of similar assets. In addition, in order to be considered a business, a set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. This ASU is effective for fiscal years beginning after December 15, 2017; early adoption is permitted on a limited basis. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” This ASU intends to simplify the subsequent measurement of goodwill, eliminating Step 2 from the goodwill impairment test. Instead, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ASU No. 2017-04 is effective for fiscal years beginning after December 15, 2019; early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” This ASU requires the amortization of premiums to the earliest call date on debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates. This ASU does not impact securities held as a discount, as the discount continues to be amortized to the contractual maturity. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this update is not expected to have a material impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the newly enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. The Company has early adopted ASU 2018-02 for the year ended December 31, 2017, and has elected not to reclassify the income tax effects of the Tax Reform from accumulated other comprehensive loss to retained earnings. |
Comprehensive Income | Comprehensive Income Comprehensive income is comprised of net income and other comprehensive income (loss). Other comprehensive income (loss) includes items recorded directly in equity, such as unrealized gains or losses on securities available-for-sale and accretion of unrealized loss on securities reclassified to held-to-maturity. |
Bank Owned Life Insurance ("BOLI") | Bank Owned Life Insurance Bank Owned Life Insurance (“BOLI”) is accounted for using the cash surrender value method and is recorded at its realizable value. Part of the Company’s BOLI is invested in a separate account insurance product which is invested in a fixed income portfolio. The separate account includes stable value protection which maintains realizable value at book value with investment gains and losses amortized over future periods. Increases in cash surrender value are included in other non-interest income, while proceeds from death benefits are generally recorded as a reduction to the carrying value. |
Defined Benefit Plan | Defined Benefit Plan As part of the Cape Bancorp, Inc. acquisition, the Bank acquired a tax-qualified defined benefit pension plan, also now known as the Cape Bank Defined Benefit Plan. The Plan previously froze benefits as of December 31, 2008 for employees eligible to participate prior to January 1, 2008. The Bank is in the process of terminating the Plan and distributing accrued benefits and recorded a $3.7 million liability as part of the acquisition date purchase accounting adjustment. |
Intangible Assets | Intangible Assets Intangible assets resulting from acquisitions under the acquisition method of accounting consist of goodwill and core deposit intangible. Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions. Goodwill with an indefinite useful life is not amortized, but is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates. The Company prepares a qualitative assessment in determining whether goodwill may be impaired. The factors considered in the assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, among others. The Company completed its annual goodwill impairment test as of August 31, 2017 . Based upon its qualitative assessment of goodwill, the Company concluded that goodwill was not impaired and no further quantitative analysis was warranted. |
Segment Reporting | Segment Reporting The Company’s operations are solely in the financial services industry and include providing traditional banking and other financial services to its customers. The Company operates primarily in the geographical regions of central and southern New Jersey. Management makes operating decisions and assesses performance based on an ongoing review of the Bank’s consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding plus potential common stock, utilizing the treasury stock method. All share amounts exclude unallocated shares of stock held by the Employee Stock Ownership Plan (“ESOP”) and the Incentive Plan. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Summary of Regulatory Capital Amounts and Ratios | The following is a summary of the Bank and the Company’s regulatory capital amounts and ratios as of December 31, 2017 and 2016 compared to the regulatory minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized institution then in effect (dollars in thousands): As of December 31, 2017 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 459,031 8.75 % $ 209,760 4.000 % $ 262,200 5.00 % Common equity Tier 1 (to risk-weighted assets) 459,031 12.41 212,705 5.750 (1) 240,450 6.50 Tier 1 capital (to risk-weighted assets) 459,031 12.41 268,194 7.250 (1) 295,938 8.00 Total capital (to risk-weighted assets) 475,379 12.85 342,178 9.250 (1) 369,923 10.00 OceanFirst Financial Corp: Tier 1 capital (to average assets) $ 465,554 8.87 % $ 209,943 4.000 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 449,991 12.15 212,907 5.750 (1) N/A N/A Tier 1 capital (to risk-weighted assets) 465,554 12.57 268,448 7.250 (1) N/A N/A Total capital (to risk-weighted assets) 516,902 13.96 342,502 9.250 (1) N/A N/A As of December 31, 2016 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 450,414 10.19 % (2) $ 176,856 4.000 % $ 221,071 5.00 % Common equity Tier 1 (to risk-weighted assets) 450,414 12.81 180,178 5.125 (3) 228,519 6.50 Tier 1 capital (to risk-weighted assets) 450,414 12.81 232,913 6.625 (3) 281,254 8.00 Total capital (to risk-weighted assets) 466,224 13.26 303,227 8.625 (3) 351,567 10.00 OceanFirst Financial Corp: Tier 1 capital (to average assets) $ 440,552 9.96 % (2) $ 176,897 4.000 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 426,855 12.12 180,512 5.125 (3) N/A N/A Tier 1 capital (to risk-weighted assets) 440,552 12.51 233,345 6.625 (3) N/A N/A Total capital (to risk-weighted assets) 491,362 13.95 303,788 8.625 (3) N/A N/A (1) Includes the Capital Conservation Buffer of 1.25% . (2) Tier 1 capital ratios are calculated based on outstanding capital at the end of the quarter divided by average assets for the quarter. The December 31, 2016 Tier 1 capital ratios for the Bank and the Company bas ed on total assets as of the end of the period are 8.85% and 8.75% , respectively. (3) Includes the Capital Conservation Buffer of 0.625% |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Merger Related Expenses | The following table summarizes the merger related expenses for the years ended December 31, 2017 , 2016 and 2015 is as follows: For the Year Ended December 31, 2017 2016 2015 (in thousands) Data processing fees $ 3,956 $ 4,844 $ 371 Professional fees 2,771 5,982 524 Employee severance payments 1,177 5,457 763 Other/miscellaneous fees 389 251 220 Merger related expenses $ 8,293 $ 16,534 $ 1,878 |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition | The following table presents the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands): At March 11, 2016 Book Value Fair Value Fair Value Assets Acquired Cash and cash equivalents $ 16,727 $ — $ 16,727 Loans 9 — 9 Other assets 15 — 15 Core deposit intangible — 66 66 Total assets acquired $ 16,751 $ 66 $ 16,817 Liabilities Assumed Deposits $ 16,953 $ 4 $ 16,957 Other liabilities assumed 138 — 138 Total liabilities assumed $ 17,091 $ 4 $ 17,095 Goodwill $ 278 The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Cape, net of total consideration paid (in thousands): At May 2, 2016 Cape Purchase Fair Value Total Purchase Price: $ 196,403 Assets acquired: Cash and cash equivalents $ 30,025 $ — $ 30,025 Securities and Federal Home Loan Bank Stock 218,577 361 218,938 Loans 1,169,568 (12,849 ) 1,156,719 Premises and equipment 27,972 (1,973 ) 25,999 Other real estate owned 2,343 (660 ) 1,683 Deferred tax asset 9,407 8,419 17,826 Other assets 61,793 — 61,793 Core deposit intangible 831 2,887 3,718 Total assets acquired 1,520,516 (3,815 ) 1,516,701 Liabilities assumed: Deposits (1,247,688 ) (679 ) (1,248,367 ) Borrowings (123,587 ) (879 ) (124,466 ) Other liabilities (7,611 ) (5,156 ) (12,767 ) Total liabilities assumed (1,378,886 ) (6,714 ) (1,385,600 ) Net assets acquired $ 141,630 $ (10,529 ) 131,101 Goodwill recorded in the merger $ 65,302 The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Ocean Shore, net of total consideration paid (in thousands): At November 30, 2016 Ocean Shore Purchase Fair Value Total Purchase Price: $ 180,732 Assets acquired: Cash and cash equivalents $ 60,871 $ — $ 60,871 Securities and Federal Home Loan Bank Stock 94,109 24 94,133 Loans 790,396 (17,129 ) 773,267 Premises and equipment 11,696 3,372 15,068 Other real estate owned 1,090 (46 ) 1,044 Deferred tax asset 5,587 (1,535 ) 4,052 Other assets 35,369 (22 ) 35,347 Core deposit intangible 348 7,158 7,506 Total assets acquired 999,466 (8,178 ) 991,288 Liabilities assumed: Deposits (874,301 ) (772 ) (875,073 ) Borrowings (3,694 ) — (3,694 ) Other liabilities (17,629 ) 2,717 (14,912 ) Total liabilities assumed (895,624 ) 1,945 (893,679 ) Net assets acquired $ 103,842 $ (6,233 ) 97,609 Goodwill recorded in the merger $ 83,123 |
Business Acquisition, Pro Forma Information | Cape Actual from May 2, 2016 to December 31, 2016 Ocean Shore Pro forma Pro forma (in thousands, except per share amounts) (Unaudited) Net interest income $ 34,565 $ 3,109 $ 166,462 $ 159,351 Provision for loan losses 498 — 4,400 4,639 Non-interest income 3,503 349 25,761 33,292 Non-interest expense 19,258 1,337 161,090 123,762 Net income $ 12,311 $ 1,397 $ 16,772 $ 43,471 Fully diluted earnings per share $ 0.52 $ 1.39 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for the core deposit intangible over the next five years is as follows (in thousands): For the Year Ended December 31, Amortization Expense 2018 $ 1,828 2019 1,618 2020 1,408 2021 1,197 2022 987 Thereafter 1,847 Total $ 8,885 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity | The amortized cost and estimated fair value of securities available-for-sale and held-to-maturity at December 31, 2017 and 2016 are as follows (in thousands): Amortized Gross Gross Estimated At December 31, 2017 Available-for-sale: Investment securities: U.S. agency obligations $ 82,378 $ — $ (797 ) $ 81,581 Other investments 8,947 — (247 ) 8,700 Total available-for-sale $ 91,325 $ — $ (1,044 ) $ 90,281 Held-to-maturity: Investment securities: U.S. agency obligations $ 14,968 $ — $ (65 ) $ 14,903 State and municipal obligations 149,958 219 (1,475 ) 148,702 Corporate debt securities 76,024 312 (3,962 ) 72,374 Total investment securities 240,950 531 (5,502 ) 235,979 Mortgage-backed securities: FHLMC 186,921 151 (2,937 ) 184,135 FNMA 263,103 1,193 (3,000 ) 261,296 GNMA 75,243 64 (928 ) 74,379 SBA 5,843 28 — 5,871 Total mortgage-backed securities 531,110 1,436 (6,865 ) 525,681 Total held-to-maturity $ 772,060 $ 1,967 $ (12,367 ) $ 761,660 Total securities $ 863,385 $ 1,967 $ (13,411 ) $ 851,941 At December 31, 2016 Available-for-sale: Investment securities: U.S. agency obligations $ 12,542 $ — $ (318 ) $ 12,224 Other investments 8,778 — (227 ) 8,551 Total available-for-sale $ 21,320 $ — $ (545 ) $ 20,775 Held-to-maturity: Investment securities: U.S. agency obligations $ 19,960 $ 69 $ — $ 20,029 State and municipal obligations 39,155 10 (856 ) 38,309 Corporate debt securities 77,057 85 (6,001 ) 71,141 Total investment securities 136,172 164 (6,857 ) 129,479 Mortgage-backed securities: FHLMC 144,016 195 (2,457 ) 141,754 FNMA 217,445 2,209 (2,524 ) 217,130 GNMA 92,475 119 (364 ) 92,230 SBA 8,947 28 — 8,975 Total mortgage-backed securities 462,883 2,551 (5,345 ) 460,089 Total held-to-maturity $ 599,055 $ 2,715 $ (12,202 ) $ 589,568 Total securities $ 620,375 $ 2,715 $ (12,747 ) $ 610,343 |
Carrying Value of Held-to-Maturity Investment Securities | The carrying value of the held-to-maturity securities at December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 2016 Amortized cost $ 772,060 $ 599,055 Net loss on date of transfer from available-for-sale (13,347 ) (13,347 ) Accretion of unrealized loss on securities reclassified to held-to-maturity 5,349 4,204 Carrying value $ 764,062 $ 589,912 |
Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of investment securities at December 31, 2017 by contractual maturity, are shown below (in thousands). Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2017 , corporate debt securities with an amortized cost and estimated fair value of $59.9 million and $56.3 million , respectively, were callable prior to the maturity date. December 31, 2017 Amortized Estimated Less than one year $ 45,944 $ 45,867 Due after one year through five years 158,397 156,862 Due after five years through ten years 88,986 87,180 Due after ten years 30,001 27,651 $ 323,328 $ 317,560 |
Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity | The estimated fair value and unrealized loss for securities available-for-sale and held-to-maturity at December 31, 2017 and December 31, 2016 , segregated by the duration of the unrealized loss, are as follows (in thousands): As of December 31, 2017 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Available-for-sale: Investment securities: U.S. agency obligations $ 69,375 $ (496 ) $ 12,206 $ (301 ) $ 81,581 $ (797 ) Other investments — — 8,700 (247 ) 8,700 (247 ) Total available-for-sale 69,375 (496 ) 20,906 (548 ) 90,281 (1,044 ) Held-to-maturity: Investment securities: U.S. agency obligations 14,903 (65 ) — — 14,903 (65 ) State and municipal obligations 104,883 (1,153 ) 14,363 (322 ) 119,246 (1,475 ) Corporate debt securities 4,035 (30 ) 56,106 (3,932 ) 60,141 (3,962 ) Total investment securities 123,821 (1,248 ) 70,469 (4,254 ) 194,290 (5,502 ) Mortgage-backed securities: FHLMC 98,138 (781 ) 68,238 (2,156 ) 166,376 (2,937 ) FNMA 132,982 (1,058 ) 65,060 (1,942 ) 198,042 (3,000 ) GNMA 26,105 (223 ) 45,281 (705 ) 71,386 (928 ) Total mortgage-backed securities 257,225 (2,062 ) 178,579 (4,803 ) 435,804 (6,865 ) Total held-to-maturity 381,046 (3,310 ) 249,048 (9,057 ) 630,094 (12,367 ) Total securities $ 450,421 $ (3,806 ) $ 269,954 $ (9,605 ) $ 720,375 $ (13,411 ) As of December 31, 2016 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Available-for-sale: Investment securities: U.S. agency obligations $ 12,224 $ (318 ) $ — $ — $ 12,224 $ (318 ) Other investments 8,551 (227 ) — — 8,551 (227 ) Total available-for-sale 20,775 (545 ) — — 20,775 (545 ) Held-to-maturity: Investment securities: State and municipal obligations 32,995 (856 ) — — 32,995 (856 ) Corporate debt securities 12,450 (120 ) 49,119 (5,881 ) 61,569 (6,001 ) Total investment securities 45,445 (976 ) 49,119 (5,881 ) 94,564 (6,857 ) Mortgage-backed securities: FHLMC 102,461 (1,665 ) 26,898 (792 ) 129,359 (2,457 ) FNMA 124,403 (2,185 ) 8,925 (339 ) 133,328 (2,524 ) GNMA 79,116 (364 ) — — 79,116 (364 ) Total mortgage-backed securities 305,980 (4,214 ) 35,823 (1,131 ) 341,803 (5,345 ) Total held-to-maturity 351,425 (5,190 ) 84,942 (7,012 ) 436,367 (12,202 ) Total securities $ 372,200 $ (5,735 ) $ 84,942 $ (7,012 ) $ 457,142 $ (12,747 ) |
Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities | At December 31, 2017 , the amortized cost, estimated fair value and credit rating of the individual corporate debt securities in an unrealized loss position for greater than one year are as follows (in thousands): As of December 31, 2017 Security Description Amortized Cost Estimated Credit Rating BankAmerica Capital $ 15,000 $ 14,038 Baa3/BBB- Chase Capital 10,000 9,350 Baa2/BBB- Wells Fargo Capital 5,000 4,713 A1/BBB+ Huntington Capital 5,000 4,450 Baa2/BB Keycorp Capital 5,000 4,675 Baa2/BB+ PNC Capital 5,000 4,675 Baa1/BBB- State Street Capital 5,000 4,625 A3/BBB SunTrust Capital 5,000 4,575 Not Rated/BB+ Southern Company 1,524 1,509 Baa2/BBB+ AT&T Inc. 1,514 1,498 Baa1/BBB+ MetLife Global Funding 1,000 999 Aa3/AA- State Street Corporation 1,000 999 A1/A $ 60,038 $ 56,106 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Loans Receivable | A summary of loans receivable at December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 2016 Commercial: Commercial and industrial $ 187,645 $ 152,569 Commercial real estate - owner occupied 569,497 534,214 Commercial real estate - investor 1,186,302 1,132,075 Total commercial 1,943,444 1,818,858 Consumer: Residential mortgage 1,694,042 1,647,154 Residential construction 54,548 51,070 Home equity loans and lines 281,143 288,991 Other consumer 1,225 1,564 Total consumer 2,030,958 1,988,779 3,974,402 3,807,637 Purchased credit impaired loans 1,712 7,575 Total loans 3,976,114 3,815,212 Deferred origination costs, net 5,380 3,414 Allowance for loan losses (15,721 ) (15,183 ) Loans receivable, net $ 3,965,773 $ 3,803,443 |
Analysis of Allowance for Loan Losses | An analysis of the allowance for loan losses for the years ended December 31, 2017 , 2016 and 2015 is as follows (in thousands): At or For the Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 15,183 $ 16,722 $ 16,317 Provision charged to operations 4,445 2,623 1,275 Charge-offs (5,384 ) (4,490 ) (1,135 ) Recoveries 1,477 328 265 Balance at end of year $ 15,721 $ 15,183 $ 16,722 |
Allowance for Loan Loses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans | The following table present s an analysis of the allowance for loan losses for the years ended December 31, 2017 and 2016 , the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2017 and 2016 excluding PCI loans (in thousands): Residential Commercial Real Estate - Owner Occupied Commercial Real Estate - Investor Consumer Commercial Unallocated Total For the year ended December 31, 2017 Allowance for loan losses: Balance at beginning of year $ 2,245 $ 2,999 $ 6,361 $ 1,110 $ 2,037 $ 431 $ 15,183 Provision (benefit) charged to operations 2,742 203 2,444 (509 ) (379 ) (56 ) 4,445 Charge-offs (3,820 ) (150 ) (899 ) (135 ) (380 ) — (5,384 ) Recoveries 637 123 46 148 523 — 1,477 Balance at end of year $ 1,804 $ 3,175 $ 7,952 $ 614 $ 1,801 $ 375 $ 15,721 For the year ended December 31, 2016 Allowance for loan losses: Balance at beginning of year $ 6,590 $ 2,292 $ 4,873 $ 1,095 $ 1,639 $ 233 $ 16,722 Provision (benefit) charged to operations (3,858 ) 2,210 3,200 310 563 198 2,623 Charge-offs (558 ) (1,509 ) (1,890 ) (349 ) (184 ) — (4,490 ) Recoveries 71 6 178 54 19 — 328 Balance at end of year $ 2,245 $ 2,999 $ 6,361 $ 1,110 $ 2,037 $ 431 $ 15,183 December 31, 2017 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,804 3,175 7,952 614 1,801 375 15,721 Total ending allowance balance $ 1,804 $ 3,175 $ 7,952 $ 614 $ 1,801 $ 375 $ 15,721 Loans: Loans individually evaluated for impairment $ 10,605 $ 15,132 $ 17,923 $ 2,464 $ 864 $ — $ 46,988 Loans collectively evaluated for impairment 1,737,985 554,365 1,168,379 279,904 186,781 — 3,927,414 Total ending loan balance $ 1,748,590 $ 569,497 $ 1,186,302 $ 282,368 $ 187,645 $ — $ 3,974,402 December 31, 2016 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ 266 $ — $ 119 $ 125 $ — $ — $ 510 Collectively evaluated for impairment 1,979 2,999 6,242 985 2,037 431 14,673 Total ending allowance balance $ 2,245 $ 2,999 $ 6,361 $ 1,110 $ 2,037 $ 431 $ 15,183 Loans: Loans individually evaluated for impairment $ 13,306 $ 11,123 $ 3,789 $ 2,556 $ 268 $ — $ 31,042 Loans collectively evaluated for impairment 1,684,918 523,091 1,128,286 287,999 152,301 — 3,776,595 Total ending loan balance $ 1,698,224 $ 534,214 $ 1,132,075 $ 290,555 $ 152,569 $ — $ 3,807,637 |
Summary of Impaired Loans Excluding PCI Loans | A summary of impaired loans at December 31, 2017 and 2016 is as follows, excluding PCI loans (in thousands): December 31, 2017 2016 Impaired loans with no allocated allowance for loan losses $ 46,988 $ 25,228 Impaired loans with allocated allowance for loan losses — 5,814 $ 46,988 $ 31,042 Amount of the allowance for loan losses allocated $ — $ 510 |
Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans | The summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2017 and 2016 and for the years ended December 31, 2017 and 2016 is as follows, excluding PCI loans (in thousands): Unpaid Recorded Allowance for At December 31, 2017 With no related allowance recorded: Residential real estate $ 10,951 $ 10,605 $ — Commercial real estate – owner occupied 15,832 15,132 — Commercial real estate – investor 19,457 17,923 — Consumer 2,941 2,464 — Commercial and industrial 895 864 — $ 50,076 $ 46,988 $ — With an allowance recorded: Residential real estate $ — $ — $ — Commercial real estate – owner occupied — — — Commercial real estate – investor — — — Consumer — — — Commercial and industrial — — — $ — $ — $ — At December 31, 2016 With no related allowance recorded: Residential real estate $ 9,848 $ 9,694 $ — Commercial real estate – owner occupied 11,886 11,123 — Commercial real estate – investor 2,239 1,897 — Consumer 2,559 2,246 — Commercial and industrial 300 268 — $ 26,832 $ 25,228 $ — With an allowance recorded: Residential real estate $ 3,998 $ 3,612 $ 266 Commercial real estate – owner occupied — — — Commercial real estate – investor 2,011 1,892 119 Consumer 581 310 125 Commercial and industrial — — — $ 6,590 $ 5,814 $ 510 (continued) For the Year Ended December 31, 2017 2016 Average Interest Average Interest With no related allowance recorded: Residential real estate $ 10,928 $ 481 $ 14,497 $ 394 Commercial real estate – owner occupied 11,890 797 18,095 467 Commercial real estate – investor 8,825 768 535 98 Consumer 2,388 144 2,549 122 Commercial and industrial 643 60 411 13 $ 34,674 $ 2,250 $ 36,087 $ 1,094 With an allowance recorded: Residential real estate $ 1,585 $ 62 $ 786 $ 163 Commercial real estate – owner occupied — — 466 — Commercial real estate – investor 3,386 81 1,027 79 Consumer 119 6 67 29 Commercial and industrial — — — — $ 5,090 $ 149 $ 2,346 $ 271 |
Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans | The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of December 31, 2017 and 2016 , excluding PCI loans (in thousands): December 31, 2017 2016 Residential real estate $ 4,190 $ 8,126 Commercial real estate – owner occupied 5,962 2,414 Commercial real estate – investor 8,281 521 Consumer 1,929 2,064 Commercial and industrial 503 441 $ 20,865 $ 13,566 |
Aging of Recorded Investment in Past Due Loans Excluding PCI Loans | The following table presents the aging of the recorded investment in past due loans as of December 31, 2017 and 2016 by loan portfolio segment, excluding PCI loans (in thousands): 30-59 60-89 Greater Total Loans Not Total December 31, 2017 Residential real estate $ 13,197 $ 2,351 $ 3,372 $ 18,920 $ 1,729,670 $ 1,748,590 Commercial real estate – owner occupied 222 — 5,402 5,624 563,873 569,497 Commercial real estate – investor 135 1,426 4,507 6,068 1,180,234 1,186,302 Consumer 1,067 310 1,687 3,064 279,304 282,368 Commercial and industrial 2,694 36 503 3,233 184,412 187,645 $ 17,315 $ 4,123 $ 15,471 $ 36,909 $ 3,937,493 $ 3,974,402 December 31, 2016 Residential real estate $ 9,532 $ 3,038 $ 7,159 $ 19,729 $ 1,678,495 $ 1,698,224 Commercial real estate – owner occupied 3,962 1,032 890 5,884 528,330 534,214 Commercial real estate – investor — — 521 521 1,131,554 1,132,075 Consumer 1,519 436 1,963 3,918 286,637 290,555 Commercial and industrial 5,548 181 384 6,113 146,456 152,569 $ 20,561 $ 4,687 $ 10,917 $ 36,165 $ 3,771,472 $ 3,807,637 |
Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans | As of December 31, 2017 and 2016 , and based on the most recent analysis performed, the risk category of loans by loan portfolio segment is as follows, excluding PCI loans (in thousands): Pass Special Substandard Doubtful Total December 31, 2017 Commercial real estate – owner occupied $ 546,569 $ 4,337 $ 18,591 $ — $ 569,497 Commercial real estate – investor 1,146,630 14,644 25,028 — 1,186,302 Commercial and industrial 181,438 3,153 3,054 — 187,645 $ 1,874,637 $ 22,134 $ 46,673 $ — $ 1,943,444 December 31, 2016 Commercial real estate – owner occupied $ 501,652 $ 7,680 $ 24,882 $ — $ 534,214 Commercial real estate – investor 1,106,747 713 24,615 — 1,132,075 Commercial and industrial 150,474 757 1,338 — 152,569 $ 1,758,873 $ 9,150 $ 50,835 $ — $ 1,818,858 |
Recorded Investment in Residential and Consumer Loans Based on Payment Activity Excluding PCI Loans | The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2017 and 2016 , excluding PCI loans (in thousands): Residential Real Estate Residential Consumer December 31, 2017 Performing $ 1,744,400 $ 280,439 Non-performing 4,190 1,929 $ 1,748,590 $ 282,368 December 31, 2016 Performing $ 1,690,098 $ 288,491 Non-performing 8,126 2,064 $ 1,698,224 $ 290,555 |
Troubled Debt Restructurings | The following table presents information about troubled debt restructurings which occurred during the years ended December 31, 2017 and 2016 , and troubled debt restructurings modified within the previous year and which defaulted during the years ended December 31, 2017 and 2016 (dollars in thousands): Number Pre-modification Post-modification For the year ended December 31, 2017 Troubled Debt Restructurings: Residential real estate 8 $ 1,637 $ 1,600 Commercial real estate – owner occupied 7 6,977 6,977 Commercial real estate – investor 7 10,904 11,026 Commercial and industrial 1 665 665 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number Pre-modification Post-modification For the year ended December 31, 2016 Troubled Debt Restructurings: Residential real estate 7 $ 1,574 $ 1,523 Commercial real estate – investor 1 1,592 1,592 Consumer 8 852 846 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Ocean Shore at December 1, 2016 and Cape at May 2, 2016 (in thousands): Ocean Shore Cape December 1, 2016 May 2, 2016 Contractually required principal and interest $ 7,385 $ 21,345 Contractual cash flows not expected to be collected (non-accretable discount) (4,666 ) (12,387 ) Expected cash flows to be collected at acquisition 2,719 8,958 Interest component of expected cash flows (accretable yield) (401 ) (576 ) Fair value of acquired loans $ 2,318 $ 8,382 The following table summarizes the changes in accretable yield for PCI loans during the years ended December 31, 2017 and 2016 (in thousands): For the Year Ended December 31, 2017 2016 Beginning balance $ 749 $ 75 Acquisition — 977 Accretion (921 ) (459 ) Reclassification from non-accretable difference 333 156 Ending balance $ 161 $ 749 |
Interest and Dividends Receiv33
Interest and Dividends Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Summary of Interest and Dividends Receivable | Interest and dividends receivable at December 31, 2017 and 2016 are summarized as follows (in thousands): December 31, 2017 2016 Loans $ 10,750 $ 10,499 Investment securities 2,430 582 Mortgage-backed securities 1,074 908 $ 14,254 $ 11,989 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment, net at December 31, 2017 and 2016 are summarized as follows (in thousands): December 31, 2017 2016 Land $ 24,876 $ 19,080 Buildings and improvements 97,463 63,955 Leasehold improvements 6,613 6,598 Furniture and equipment 30,545 33,375 Other 1,450 3,240 Total 160,947 126,248 Accumulated depreciation and amortization (59,171 ) (54,863 ) $ 101,776 $ 71,385 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Summary of Deposits Including Accrued Interest Payable | Deposits, including accrued interest payable of $22,000 at December 31, 2017 and $31,000 at December 31, 2016 , are summarized as follows (in thousands): December 31, 2017 2016 Amount Weighted Average Cost Amount Weighted Average Cost Non-interest-bearing accounts $ 756,513 — % $ 782,504 — % Interest-bearing checking accounts 1,954,358 0.32 1,626,713 0.19 Money market deposit accounts 363,656 0.33 458,911 0.30 Savings accounts 661,167 0.04 672,519 0.08 Time deposits 607,104 1.18 647,103 1.14 Total deposits $ 4,342,798 0.34 % $ 4,187,750 0.30 % |
Summary of Time Deposits by Maturity | Time deposits at December 31, 2017 mature as follows (in thousands): For the Year Ended December 31, Time Deposit Maturities 2018 $ 308,237 2019 110,598 2020 66,959 2021 42,060 2022 75,620 Thereafter 3,630 Total $ 607,104 |
Summary of Interest Expense on Deposits | Interest expense on deposits for the years ended December 31, 2017 , 2016 and 2015 is as follows (in thousands): For the Year Ended December 31, 2017 2016 2015 Interest-bearing checking accounts $ 4,533 $ 2,114 $ 952 Money market deposit accounts 1,213 858 187 Savings accounts 345 191 102 Time deposits 6,245 4,354 3,060 Total interest expense on deposits $ 12,336 $ 7,517 $ 4,301 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Borrowed Funds | Borrowed funds are summarized as follows (in thousands): December 31, 2017 2016 Amount Weighted Average Rate Amount Weighted Average Rate Federal Home Loan Bank advances $ 288,691 1.74 % $ 250,498 1.75 % Securities sold under agreements to repurchase 79,668 0.21 69,935 0.13 Other borrowings 56,519 4.48 56,559 4.21 $ 424,878 1.82 % $ 376,992 1.81 % |
Summary of Federal Home Loan Bank Advances and Securities Sold Under Agreements to Repurchase | Information concerning FHLB advances and securities sold under agreements to repurchase (“reverse repurchase agreements”) is summarized as follows (in thousands): FHLB Advances Reverse Repurchase Agreements 2017 2016 2017 2016 Average balance $ 258,870 $ 266,981 $ 74,712 $ 75,227 Maximum amount outstanding at any month end 291,615 252,229 80,945 81,738 Average interest rate for the year 1.73 % 1.67 % 0.16 % 0.14 % Amortized cost of collateral: Mortgage-backed securities — — $ 58,020 $ 67,224 Estimated fair value of collateral: Mortgage-backed securities — — 58,007 67,452 |
Contractual Maturities of FHLB Advances and Reverse Repurchase Agreements | FHLB advances and reverse repurchase agreements have contractual maturities at December 31, 2017 as follows (in thousands): FHLB Advances Reverse Repurchase Agreements For the Year Ended December 31, 2018 $ 96,958 $ 79,668 2019 81,618 — 2020 75,115 — 2021 25,000 — 2022 10,000 — Total $ 288,691 $ 79,668 |
Interest Expense on Borrowings | Interest expense on borrowings for the years ended December 31, 2017 , 2016 , and 2015 is as follows (in thousands): For the Year Ended December 31, 2017 2016 2015 Federal Home Loan Bank advances $ 4,486 $ 4,471 $ 3,850 Securities sold under agreements to repurchase 121 102 103 Other borrowings 2,668 1,073 780 $ 7,275 $ 5,646 $ 4,733 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense Benefit | The provision (benefit) for income taxes for the years ended December 31, 2017 , 2016 and 2015 consists of the following (in thousands): For the Year Ended December 31, 2017 2016 2015 Current Federal $ (12,754 ) $ 6,259 $ 8,378 State 169 96 1,064 Total current (12,585 ) 6,355 9,442 Deferred Federal 35,440 5,798 1,349 State — — 92 Total deferred 35,440 5,798 1,441 $ 22,855 $ 12,153 $ 10,883 |
Schedule of Income Tax Reconciliation | A reconciliation between the provision for income taxes and the expected amount computed by multiplying income before the provision for income taxes times the applicable statutory Federal income tax rate for the years ended December 31, 2017 , 2016 and 2015 is as follows (in thousands): For the Year Ended December 31, 2017 2016 2015 Income before provision for income taxes $ 65,325 $ 35,199 $ 31,205 Applicable statutory Federal income tax rate 35.0 % 35.0 % 35.0 % Computed “expected” Federal income tax expense $ 22,864 $ 12,320 $ 10,922 (Decrease) increase in Federal income tax expense resulting from Tax exempt interest (839 ) (390 ) (291 ) ESOP fair market value adjustment 223 131 111 ESOP dividends (230 ) (223 ) (234 ) Earnings on BOLI (1,155 ) (781 ) (525 ) Merger related expenses 478 1,005 132 State income taxes net of Federal benefit 110 62 751 Stock compensation (1,823 ) — — Impact of Tax Cuts and Jobs Act (“Tax Reform”) 3,643 — — Other items, net (416 ) 29 17 $ 22,855 $ 12,153 $ 10,883 |
Schedule of Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are presented in the following table (in thousands): December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 3,311 $ 6,269 Reserve for repurchased loans 97 346 Reserve for uncollected interest 49 70 Incentive compensation — 1,695 Deferred compensation 519 1,549 Other reserves 115 375 Stock plans 864 2,151 ESOP 126 224 Purchase accounting adjustments 3,436 16,905 Net operating loss carryforward related to acquisition 3,741 5,829 Other real estate owned 170 26 Unrealized loss on securities 1,898 5,211 Federal and state alternative minimum tax 2,451 2,220 Total gross deferred tax assets 16,777 42,870 Deferred tax liabilities: Incentive compensation (127 ) — Excess servicing on sale of mortgage loans (28 ) (76 ) Investments, discount accretion (244 ) (434 ) Deferred loan and commitment costs, net (1,119 ) (1,261 ) Premises and equipment, differences in depreciation (373 ) (52 ) Undistributed REIT income (12,322 ) (2,167 ) Other (642 ) — Total gross deferred tax liabilities (14,855 ) (3,990 ) Net deferred tax assets $ 1,922 $ 38,880 |
Incentive Plan (Tables)
Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Fair Value of Stock Options Granted | The fair value of stock options granted by the Company was estimated through the use of the Black-Scholes option pricing model applying the following assumptions: 2017 2016 2015 Risk-free interest rate 2.31 % 1.69 % 1.72 % Expected option life 7 years 7 years 7 years Expected volatility 21 % 21 % 28 % Expected dividend yield 2.07 % 3.01 % 2.99 % Weighted average fair value of an option share granted during the year $ 5.62 $ 2.64 $ 3.58 Intrinsic value of options exercised during the year (in thousands) 7,882 3,412 136 |
Summary of Option Activity | A summary of option activity for the years ended December 31, 2017 , 2016 and 2015 are as follows: 2017 2016 2015 Number of Shares Weighted Average Exercise Price Number Of Shares Weighted Average Exercise Price Number Of Shares Weighted Average Exercise Price Outstanding at beginning of year 2,758,833 $ 14.94 2,281,931 $ 17.62 1,751,270 $ 15.94 Granted 335,150 29.01 317,460 17.27 238,305 17.39 Assumed in acquisition — — 886,968 10.30 370,000 26.11 Exercised (567,153 ) 14.39 (375,576 ) 13.20 (29,480 ) 13.43 Forfeited (35,099 ) 18.42 (11,625 ) 16.37 (8,900 ) 14.56 Expired (2,417 ) 11.70 (340,325 ) 25.02 (39,264 ) 25.31 Outstanding at end of year 2,489,314 $ 16.91 2,758,833 $ 14.94 2,281,931 $ 17.62 Options exercisable 1,608,762 1,912,630 1,497,960 |
Summary of Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2017 : Options Outstanding Options Exercisable Exercise Prices Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 8.44 to 9.98 283,707 2.6 years $ 8.97 283,707 2.6 years $ 8.97 9.99 to 12.28 293,557 2.8 10.74 293,557 2.8 10.74 12.40 to 14.62 648,568 4.3 14.07 588,243 4.2 14.05 16.06 to 18.45 787,082 7.0 17.40 304,505 6.2 17.42 23.00 to 29.01 476,400 7.7 28.50 138,750 4.1 27.34 2,489,314 5.4 years $ 16.91 1,608,762 4.0 years $ 14.34 |
Summary of Granted but Unvested Stock Award Activity | A summary of the granted but unvested stock award activity for the years ended December 31, 2017 , 2016 and 2015 are as follows: 2017 2016 2015 Number of Shares Weighted Average Grant Date Fair Value Number Of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding at beginning of year: 156,945 $ 17.25 126,960 $ 16.90 81,775 $ 15.85 Granted 69,175 28.70 66,770 17.66 70,890 17.39 Vested (47,379 ) 17.32 (33,651 ) 16.31 (23,587 ) 14.86 Forfeited (9,038 ) 19.14 (3,134 ) 16.54 (2,118 ) 15.16 Outstanding at end of year 169,703 $ 21.79 156,945 $ 17.25 126,960 $ 16.90 |
Commitments, Contingencies an39
Commitments, Contingencies and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments and Contingent Liabilities | At December 31, 2017 , the following commitments and contingent liabilities existed which are not reflected in the accompanying consolidated financial statements (in thousands): December 31, 2017 Unused consumer and construction loan lines of credit (primarily floating-rate) $ 207,006 Unused commercial loan lines of credit (primarily floating-rate) 315,400 Other commitments to extend credit: Fixed-Rate 63,819 Adjustable-Rate 2,379 Floating-Rate 22,740 |
Summary of Projected Minimum Rental Commitments | The projected minimum rental commitments as of December 31, 2017 are as follows (in thousands): For the Year Ended December 31, 2018 $ 2,009 2019 1,990 2020 1,968 2021 1,798 2022 1,612 Thereafter 6,859 Total $ 16,236 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Outstanding for Basic and Diluted Earnings per Share | The following reconciles average shares outstanding for basic and diluted earnings per share for the years ended December 31, 2017 , 2016 and 2015 (in thousands): December 31, 2017 2016 2015 Weighted average shares outstanding 32,490 23,481 17,037 Less: Unallocated ESOP shares (311 ) (344 ) (378 ) Unallocated incentive award shares and shares held by deferred compensation plan (66 ) (44 ) (59 ) Average basic shares outstanding 32,113 23,093 16,600 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan 1,012 433 211 Average diluted shares outstanding 33,125 23,526 16,811 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Financial Liabilities Measured at Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2017 and 2016 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Fair Value Measurements at Reporting Date Using: Total Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs December 31, 2017 Items measured on a recurring basis: Investment securities available-for-sale: U.S. agency obligations $ 81,581 $ — $ 81,581 $ — Other investments 8,700 8,700 — — Items measured on a non-recurring basis: Other real estate owned 8,186 — — 8,186 Loans measured for impairment based on the fair value of the underlying collateral 16,496 — — 16,496 December 31, 2016 Items measured on a recurring basis: Investment securities available-for-sale: U.S. agency obligations $ 12,224 $ — $ 12,224 $ — Other investments 8,551 8,551 — — Items measured on a non-recurring basis: Other real estate owned 9,803 — — 9,803 Loans measured for impairment based on the fair value of the underlying collateral 2,419 — — 2,419 |
Book Value and Estimated Fair Value of Bank's Significant Financial Instruments Not Recorded at Fair Value | The book value and estimated fair value of the Bank’s significant financial instruments not recorded at fair value as of December 31, 2017 and December 31, 2016 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Value Level 1 Inputs Level 2 Inputs Level 3 Inputs December 31, 2017 Financial Assets: Cash and due from banks $ 109,613 $ 109,613 $ — $ — Securities held-to-maturity 764,062 — 751,182 10,478 Federal Home Loan Bank of New York stock 19,724 — — 19,724 Loans receivable and mortgage loans held-for-sale 3,966,014 — — 3,962,689 Financial Liabilities: Deposits other than time deposits 3,735,694 — 3,735,694 — Time deposits 607,104 — 599,677 — Securities sold under agreements to repurchase with retail customers 79,668 79,668 — — Federal Home Loan Bank advances and other borrowings 345,210 — 341,820 — December 31, 2016 Financial Assets: Cash and due from banks $ 301,373 $ 301,373 $ — $ — Securities held-to-maturity 589,912 — 586,504 3,030 Federal Home Loan Bank of New York stock 19,313 — — 19,313 Loans receivable and mortgage loans held-for-sale 3,804,994 — — 3,834,677 Financial Liabilities: Deposits other than time deposits 3,540,647 — 3,540,647 — Time deposits 647,103 — 644,354 — Securities sold under agreements to repurchase with retail customers 69,935 69,935 — — Federal Home Loan Bank advances and other borrowings 307,057 — 304,901 — |
Parent-Only Financial Informa42
Parent-Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Financial Condition | Condensed Statement of Financial Condition (in thousands) December 31, 2017 2016 Assets: Cash and due from banks $ 16 $ 9,100 Advances to subsidiary Bank 33,749 12,358 Investment securities 1,000 1,000 ESOP loan receivable 3,051 3,285 Investment in subsidiary Bank 617,866 602,274 Other assets 3,343 3,522 Total assets $ 659,025 $ 631,539 Liabilities and Stockholders’ Equity: Borrowings $ 56,519 $ 56,398 Other liabilities 565 3,238 Stockholders’ equity 601,941 571,903 Total liabilities and stockholders’ equity $ 659,025 $ 631,539 |
Condensed Statements of Operations | Condensed Statements of Operations (in thousands) For the Year Ended December 31, 2017 2016 2015 Dividend income – subsidiary Bank $ 32,000 $ 4,000 $ 16,000 Interest and dividend income – investment securities 63 62 3 Interest income – advances to subsidiary Bank 280 118 51 Interest income – ESOP loan receivable 321 322 306 Total income 32,664 4,502 16,360 Interest expense – borrowings 2,592 1,049 736 Operating expenses 1,788 1,697 1,452 Income before income taxes and undistributed earnings of subsidiary Bank 28,284 1,756 14,172 Benefit for income taxes 973 780 634 Income before undistributed earnings of subsidiary Bank 29,257 2,536 14,806 Undistributed earnings of subsidiary Bank 13,213 20,510 5,516 Net Income $ 42,470 $ 23,046 $ 20,322 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (in thousands) For the Year Ended December 31, 2017 2016 2015 Cash flows from operating activities: Net income $ 42,470 $ 23,046 $ 20,322 (Increase) decrease in advances to subsidiary Bank (23,371 ) 3,838 6,580 Undistributed earnings of subsidiary Bank (13,213 ) (20,510 ) (5,516 ) Amortization of deferred costs on borrowings 121 — — Change in other assets and other liabilities 607 (1,619 ) (707 ) Net cash provided by operating activities 6,614 4,755 20,679 Cash flows from investing activities: Purchase of investment securities — — (1,000 ) Repayments on ESOP loan receivable 234 218 204 Cash consideration for acquisition, net of cash received — (19,274 ) (127 ) Net cash provided by (used in) investing activities 234 (19,056 ) (923 ) Cash flows from financing activities: Net proceeds from issuance of subordinated notes — 33,899 — Repayment of borrowings — — (5,000 ) Dividends paid (19,286 ) (12,616 ) (8,693 ) Purchase of treasury stock — (1,878 ) (6,459 ) Exercise of stock options 3,354 3,989 396 Net cash (used in) provided by financing activities (15,932 ) 23,394 (19,756 ) Net (decrease) increase in cash and due from banks (9,084 ) 9,093 — Cash and due from banks at beginning of year 9,100 7 7 Cash and due from banks at end of year $ 16 $ 9,100 $ 7 |
Selected Consolidated Quarter43
Selected Consolidated Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | For the Quarter Ended December 31 September 30 June 30 March 31 2017 Interest income $ 47,906 $ 48,030 $ 46,879 $ 46,014 Interest expense 5,401 4,974 4,705 4,531 Net interest income 42,505 43,056 42,174 41,483 Provision for loans losses 1,415 1,165 1,165 700 Net interest income after provision for loan losses 41,090 41,891 41,009 40,783 Other income 6,745 7,359 6,973 5,995 Operating expenses (excluding merger related and branch consolidation expenses) 26,434 27,580 28,527 29,481 Merger related and branch consolidation expenses 1,259 3,153 8,606 1,480 Income before provision for income taxes 20,142 18,517 10,849 15,817 Provision for income taxes 10,186 5,700 3,170 3,799 Net income $ 9,956 $ 12,817 $ 7,679 $ 12,018 Basic earnings per share $ 0.31 $ 0.40 $ 0.24 $ 0.38 Diluted earnings per share $ 0.30 $ 0.39 $ 0.23 $ 0.36 2016 Interest income $ 39,904 $ 37,307 $ 33,141 $ 23,073 Interest expense 4,150 3,372 3,127 2,514 Net interest income 35,754 33,935 30,014 20,559 Provision for loans losses 510 888 662 563 Net interest income after provision for loan losses 35,244 33,047 29,352 19,996 Other income 6,257 5,896 4,883 3,376 Operating expenses (excluding merger related expenses) 25,833 23,715 21,457 15,313 Merger related expenses 6,632 1,311 7,189 1,402 Income before provision for income taxes 9,036 13,917 5,589 6,657 Provision for income taxes 2,984 4,789 1,928 2,452 Net income $ 6,052 $ 9,128 $ 3,661 $ 4,205 Basic earnings per share $ 0.22 $ 0.36 $ 0.16 $ 0.25 Diluted earnings per share $ 0.22 $ 0.35 $ 0.16 $ 0.25 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | May 02, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Maturity period of highly liquid debt instruments | Three months or less | ||||
Available-for-sale securities transferred to held-to-maturity securities | $ 536,000,000 | $ 536,000,000 | |||
Unrealized net loss on securities reclassified from available-for-sale to held-to-maturity, Gross | $ 13,300,000 | $ 13,300,000 | |||
Loans past due, minimum period | 90 days | ||||
Non-accrual business and commercial real estate loans | $ 250,000 | ||||
Delinquency period of losses on mortgage loan to be deemed uncollectible | 120 days | ||||
Allowance for loan losses | $ 0 | ||||
Mortgage loans sold on real estate, final maturity period | 15 years | ||||
Delinquency period of mortgage loans | 90 days | ||||
Share-based compensation, excess tax benefit, amount | $ 1,800,000 | $ 1,800,000 | |||
Computer Equipment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated depreciable life of assets | 3 years | ||||
Furniture, Fixtures and Other Electronic Equipment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated depreciable life of assets | 5 years | ||||
Building Improvements | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated depreciable life of assets | 10 years | ||||
Buildings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated depreciable life of assets | 30 years | ||||
Cape Bancorp, Inc. | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Defined benefit plan, liability | $ 3,700,000 | ||||
Retained Earnings | Accounting Standards Update 2016-09 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Equity reclassification | $ 11,100,000 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Minimum ratio of tier 1 capital to total adjusted assets | 4.00% | |
Minimum ratio of common equity tier 1 to risk-weighted assets | 5.80% | |
Minimum ratio of tier 1 leverage ratio, For capital adequacy purposes | 7.25% | 4.00% |
Minimum ratio of total capital to risk-weighted assets | 9.25% | |
Tier 1 capital ratio, To be well capitalized | 5.00% | |
Common equity tier 1 risk-based ratio, To be well capitalized | 6.50% | |
Tier 1 risk-based capital, To be well capitalized under prompt corrective action ratio | 8.00% | |
Total risk-based capital, To be well capitalized under prompt corrective action ratio | 10.00% |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Regulatory Capital Amounts and Ratios (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital (to average assets), Actual Ratio | 4.00% | |||
Common equity Tier 1 (to risk-weighted assets), Actual Ratio | 5.80% | |||
Tier 1 capital (to risk-weighted assets), Actual Ratio | 5.00% | |||
Tier 1 capital (to average assets), For capital adequacy purposes Ratio | 7.25% | 4.00% | ||
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio | 9.25% | |||
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Ratio | 5.00% | |||
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Ratio | 6.50% | |||
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio | 8.00% | |||
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio | 10.00% | |||
Capital conservation buffer (as a percent) | 1.25% | 0.625% | ||
OceanFirst Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital (to average assets), Actual Amount | $ 459,031,000 | $ 450,414,000 | ||
Common equity Tier 1 (to risk-weighted asset), Actual Amount | 459,031,000 | 450,414,000 | ||
Tier 1 capital (to risk-weighted assets), Actual Amount | 459,031,000 | 450,414,000 | ||
Total capital (to risk-weighted assets), Actual Amount | $ 475,379,000 | $ 466,224,000 | ||
Tier 1 capital (to average assets), Actual Ratio | 8.75% | 10.19% | ||
Common equity Tier 1 (to risk-weighted assets), Actual Ratio | 12.41% | 12.81% | ||
Tier 1 capital (to risk-weighted assets), Actual Ratio | 12.41% | 12.81% | ||
Total capital (to risk-weighted assets), Actual Ratio | 12.85% | 13.26% | ||
Tier 1 capital (to average assets), For capital adequacy purposes Amount | $ 209,759,640 | $ 176,856,400 | ||
Common equity Tier 1 (to risk-weighted asset), For capital adequacy purposes Amount | 212,705,495 | 180,178,087.5 | ||
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Amount | 268,193,885 | 232,913,137.5 | ||
Total capital (to risk-weighted assets), For capital adequacy purposes Amount | $ 342,178,405 | $ 303,226,537.5 | ||
Tier 1 capital (to average assets), For capital adequacy purposes Ratio | 4.00% | |||
Common equity Tier 1 (to risk-weighted assets), For capital adequacy purposes Ratio | 5.75% | 5.125% | ||
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Ratio | 7.25% | 6.625% | ||
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio | 9.25% | 8.625% | ||
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Amount | $ 262,199,550 | $ 221,070,500 | ||
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Amount | 240,449,690 | 228,518,550 | ||
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Amount | 295,938,080 | 281,253,600 | ||
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Amount | $ 369,922,600 | $ 351,567,000 | ||
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Ratio | 5.00% | |||
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Ratio | 6.50% | 6.50% | ||
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio | 8.00% | 8.00% | ||
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio | 10.00% | 10.00% | ||
Tier 1 capital ratio based on total assets (as a percent) | 8.85% | |||
OceanFirst Financial Corp. | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital (to average assets), Actual Amount | $ 465,554,000 | $ 440,552,000 | ||
Common equity Tier 1 (to risk-weighted asset), Actual Amount | 449,991,000 | 426,855,000 | ||
Tier 1 capital (to risk-weighted assets), Actual Amount | 465,554,000 | 440,552,000 | ||
Total capital (to risk-weighted assets), Actual Amount | $ 516,902,000 | $ 491,362,000 | ||
Tier 1 capital (to average assets), Actual Ratio | 8.87% | 9.96% | ||
Common equity Tier 1 (to risk-weighted assets), Actual Ratio | 12.15% | 12.12% | ||
Tier 1 capital (to risk-weighted assets), Actual Ratio | 12.57% | 12.51% | ||
Total capital (to risk-weighted assets), Actual Ratio | 13.96% | 13.95% | ||
Tier 1 capital (to average assets), For capital adequacy purposes Amount | $ 209,943,200 | $ 176,896,600 | ||
Common equity Tier 1 (to risk-weighted asset), For capital adequacy purposes Amount | 212,906,687.5 | 180,511,878.75 | ||
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Amount | 268,447,562.5 | 233,344,623.75 | ||
Total capital (to risk-weighted assets), For capital adequacy purposes Amount | $ 342,502,062.5 | $ 303,788,283.75 | ||
Tier 1 capital (to average assets), For capital adequacy purposes Ratio | 4.00% | 4.00% | ||
Common equity Tier 1 (to risk-weighted assets), For capital adequacy purposes Ratio | 5.75% | 5.125% | ||
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Ratio | 7.25% | 6.625% | ||
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio | 9.25% | 8.625% | ||
Tier 1 capital ratio based on total assets (as a percent) | 8.75% | |||
Scenario, Forecast | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Capital conservation buffer (as a percent) | 2.50% | 1.875% |
Business Combination - Addition
Business Combination - Additional Information (Detail) $ in Thousands | Nov. 30, 2016USD ($) | May 02, 2016USD ($) | Jul. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Property | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 11, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||||||||
Merger related expenses | $ 1,259 | $ 3,153 | $ 8,606 | $ 1,480 | $ 6,632 | $ 1,311 | $ 7,189 | $ 1,402 | $ 8,293 | $ 16,534 | $ 1,878 | ||||
Number of properties in lease agreements | Property | 8 | ||||||||||||||
Retail Branch | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Deposit premiums | $ 340 | ||||||||||||||
Percentage of deposits | 2.50% | ||||||||||||||
Percentage of deposit, premium contingent on core deposit (up to) | 1.00% | ||||||||||||||
Purchase accounting adjustments, assets | $ 16,817 | ||||||||||||||
Purchase accounting adjustments, loans | 9 | ||||||||||||||
Purchase accounting adjustments, deposits | $ 16,957 | ||||||||||||||
Cape Bancorp, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase accounting adjustments, assets | $ 1,500,000 | ||||||||||||||
Purchase accounting adjustments, loans | 1,200,000 | ||||||||||||||
Purchase accounting adjustments, deposits | 1,200,000 | ||||||||||||||
Consideration paid | 196,400 | ||||||||||||||
Cash consideration paid for outstanding warrants and fractional shares | $ 30,500 | ||||||||||||||
Ocean Shore Holdings Co. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase accounting adjustments, assets | $ 991,288 | ||||||||||||||
Purchase accounting adjustments, loans | 773,267 | ||||||||||||||
Purchase accounting adjustments, deposits | 875,073 | ||||||||||||||
Consideration paid | 180,732 | ||||||||||||||
Cash consideration paid for outstanding warrants and fractional shares | $ 28,400 |
Business Combination - Schedule
Business Combination - Schedule of Merger Related Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | |||||||||||
Data processing fees | $ 3,956 | $ 4,844 | $ 371 | ||||||||
Professional fees | 2,771 | 5,982 | 524 | ||||||||
Employee severance payments | 1,177 | 5,457 | 763 | ||||||||
Other/miscellaneous fees | 389 | 251 | 220 | ||||||||
Merger related expenses | $ 1,259 | $ 3,153 | $ 8,606 | $ 1,480 | $ 6,632 | $ 1,311 | $ 7,189 | $ 1,402 | $ 8,293 | $ 16,534 | $ 1,878 |
Business Combination - Summary
Business Combination - Summary of Assets Acquired and Liabilities Assumed and Their Initial Fair Value Estimates (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | May 02, 2016 | Mar. 11, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 150,501 | $ 145,064 | |||
Retail Branch | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 16,727 | ||||
Loans | 9 | ||||
Other assets | 15 | ||||
Total assets acquired | 16,817 | ||||
Deposits | 16,957 | ||||
Other liabilities assumed | 138 | ||||
Total liabilities assumed | 17,095 | ||||
Goodwill | 278 | ||||
Cape Bancorp, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 30,025 | ||||
Loans | 1,200,000 | ||||
Total assets acquired | 1,500,000 | ||||
Deposits | 1,200,000 | ||||
Other liabilities assumed | 12,767 | ||||
Total liabilities assumed | 1,385,600 | ||||
Goodwill | 65,302 | ||||
Ocean Shore Holdings Co. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 60,871 | ||||
Loans | 773,267 | ||||
Total assets acquired | 991,288 | ||||
Deposits | 875,073 | ||||
Other liabilities assumed | 14,912 | ||||
Total liabilities assumed | 893,679 | ||||
Goodwill | 83,123 | ||||
Core Deposit | Retail Branch | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible | 66 | 66 | |||
Core Deposit | Cape Bancorp, Inc. | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible | 3,700 | ||||
Core Deposit | Ocean Shore Holdings Co. | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible | $ 7,500 | ||||
Book Value | Retail Branch | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 16,727 | ||||
Loans | 9 | ||||
Other assets | 15 | ||||
Total assets acquired | 16,751 | ||||
Deposits | 16,953 | ||||
Other liabilities assumed | 138 | ||||
Total liabilities assumed | 17,091 | ||||
Book Value | Cape Bancorp, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 30,025 | ||||
Loans | 1,169,568 | ||||
Total assets acquired | 1,520,516 | ||||
Deposits | 1,247,688 | ||||
Other liabilities assumed | 7,611 | ||||
Total liabilities assumed | $ 1,378,886 | ||||
Book Value | Ocean Shore Holdings Co. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 60,871 | ||||
Loans | 790,396 | ||||
Total assets acquired | 999,466 | ||||
Deposits | 874,301 | ||||
Other liabilities assumed | 17,629 | ||||
Total liabilities assumed | $ 895,624 | ||||
Fair Value Adjustment | Retail Branch | |||||
Business Acquisition [Line Items] | |||||
Total assets acquired | 66 | ||||
Deposits | 4 | ||||
Total liabilities assumed | 4 | ||||
Fair Value Adjustment | Core Deposit | Retail Branch | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible | $ 66 |
Business Combination - Summar50
Business Combination - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) - USD ($) $ in Thousands | Nov. 30, 2016 | May 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities assumed: | ||||
Goodwill | $ 150,501 | $ 145,064 | ||
Cape Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Total Purchase Price: | $ 196,400 | |||
Assets acquired: | ||||
Cash and cash equivalents | 30,025 | |||
Securities | 218,938 | |||
Loans | 1,200,000 | |||
Premises and equipment | 25,999 | |||
Other real estate owned | 1,683 | |||
Deferred tax asset - recognition of net operating loss carryforward | 17,826 | |||
Other assets | 61,793 | |||
Core deposit intangible | 3,718 | |||
Total assets acquired | 1,500,000 | |||
Liabilities assumed: | ||||
Deposits | (1,200,000) | |||
Federal Home Loan Bank advances | (124,466) | |||
Other liabilities | (12,767) | |||
Total liabilities assumed | (1,385,600) | |||
Net assets acquired | 131,101 | |||
Goodwill | 65,302 | |||
Cape Bancorp, Inc. | Book Value | ||||
Assets acquired: | ||||
Cash and cash equivalents | 30,025 | |||
Securities | 218,577 | |||
Loans | 1,169,568 | |||
Premises and equipment | 27,972 | |||
Other real estate owned | 2,343 | |||
Deferred tax asset - recognition of net operating loss carryforward | 9,407 | |||
Other assets | 61,793 | |||
Core deposit intangible | 831 | |||
Total assets acquired | 1,520,516 | |||
Liabilities assumed: | ||||
Deposits | (1,247,688) | |||
Federal Home Loan Bank advances | (123,587) | |||
Other liabilities | (7,611) | |||
Total liabilities assumed | (1,378,886) | |||
Net assets acquired | 141,630 | |||
Cape Bancorp, Inc. | Purchase Accounting Adjustments | ||||
Assets acquired: | ||||
Securities | 361 | |||
Loans | (12,849) | |||
Premises and equipment | (1,973) | |||
Other real estate owned | (660) | |||
Deferred tax asset - recognition of net operating loss carryforward | 8,419 | |||
Other assets | 0 | |||
Core deposit intangible | 2,887 | |||
Total assets acquired | (3,815) | |||
Liabilities assumed: | ||||
Deposits | (679) | |||
Federal Home Loan Bank advances | (879) | |||
Other liabilities | (5,156) | |||
Total liabilities assumed | (6,714) | |||
Net assets acquired | $ (10,529) | |||
Ocean Shore Holdings Co. | ||||
Business Acquisition [Line Items] | ||||
Total Purchase Price: | $ 180,732 | |||
Assets acquired: | ||||
Cash and cash equivalents | 60,871 | |||
Securities | 94,133 | |||
Loans | 773,267 | |||
Premises and equipment | 15,068 | |||
Other real estate owned | 1,044 | |||
Deferred tax asset - recognition of net operating loss carryforward | 4,052 | |||
Other assets | 35,347 | |||
Core deposit intangible | 7,506 | |||
Total assets acquired | 991,288 | |||
Liabilities assumed: | ||||
Deposits | (875,073) | |||
Federal Home Loan Bank advances | (3,694) | |||
Other liabilities | (14,912) | |||
Total liabilities assumed | (893,679) | |||
Net assets acquired | 97,609 | |||
Goodwill | 83,123 | |||
Ocean Shore Holdings Co. | Book Value | ||||
Assets acquired: | ||||
Cash and cash equivalents | 60,871 | |||
Securities | 94,109 | |||
Loans | 790,396 | |||
Premises and equipment | 11,696 | |||
Other real estate owned | 1,090 | |||
Deferred tax asset - recognition of net operating loss carryforward | 5,587 | |||
Other assets | 35,369 | |||
Core deposit intangible | 348 | |||
Total assets acquired | 999,466 | |||
Liabilities assumed: | ||||
Deposits | (874,301) | |||
Federal Home Loan Bank advances | (3,694) | |||
Other liabilities | (17,629) | |||
Total liabilities assumed | (895,624) | |||
Net assets acquired | 103,842 | |||
Ocean Shore Holdings Co. | Purchase Accounting Adjustments | ||||
Assets acquired: | ||||
Securities | 24 | |||
Loans | (17,129) | |||
Premises and equipment | 3,372 | |||
Other real estate owned | (46) | |||
Deferred tax asset - recognition of net operating loss carryforward | (1,535) | |||
Other assets | (22) | |||
Core deposit intangible | 7,158 | |||
Total assets acquired | (8,178) | |||
Liabilities assumed: | ||||
Deposits | (772) | |||
Federal Home Loan Bank advances | 0 | |||
Other liabilities | 2,717 | |||
Total liabilities assumed | 1,945 | |||
Net assets acquired | $ (6,233) |
Business Combination - Schedu51
Business Combination - Schedule of Supplemental Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cape Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Net interest income, Actual | $ 34,565 | |||
Provision for loan losses, Actual | 498 | |||
Non-interest income, Actual | 3,503 | |||
Non-interest expense, Actual | 19,258 | |||
Net income, Actual | $ 12,311 | |||
Ocean Shore Holdings Co. | ||||
Business Acquisition [Line Items] | ||||
Net interest income, Actual | $ 3,109 | |||
Provision for loan losses, Actual | 0 | |||
Non-interest income, Actual | 349 | |||
Non-interest expense, Actual | 1,337 | |||
Net income, Actual | $ 1,397 | |||
Net interest income, Pro forma | $ 166,462 | $ 159,351 | ||
Provision for loan losses, Pro forma | 4,400 | 4,639 | ||
Non-interest income, Pro forma | 25,761 | 33,292 | ||
Non-interest expense, Pro forma | 161,090 | 123,762 | ||
Net income, Pro forma | $ 16,772 | $ 43,471 | ||
Fully diluted, Pro forma | $ 0.52 | $ 1.39 |
Business Combination - Schedu52
Business Combination - Schedule of Future Amortization Expense (Details) - Core Deposit $ in Thousands | Dec. 31, 2017USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2,018 | $ 1,828 |
2,019 | 1,618 |
2,020 | 1,408 |
2,021 | 1,197 |
2,022 | 987 |
Thereafter | 1,847 |
Total | $ 8,885 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Estimated Fair Value | $ 90,281 | $ 20,775 |
Held-to-maturity, Amortized Cost | 772,060 | 599,055 |
Held-to-maturity, Estimated Fair Value | 761,660 | 589,568 |
Total, Amortized Cost | 863,385 | 620,375 |
Total, Gross Unrealized Gains | 1,967 | 2,715 |
Total, Gross Unrealized Losses | (13,411) | (12,747) |
Total, Estimated Fair Value | 851,941 | 610,343 |
Corporate Debt Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 60,038 | |
Held-to-maturity, Estimated Fair Value | 56,106 | |
Held-to-Maturity Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 772,060 | 599,055 |
Held-to-maturity, Gross Unrealized Gains | 1,967 | 2,715 |
Held-to-maturity, Gross Unrealized Losses | (12,367) | (12,202) |
Held-to-maturity, Estimated Fair Value | 761,660 | 589,568 |
Held-to-Maturity Securities | Mortgage-Backed Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 531,110 | 462,883 |
Held-to-maturity, Gross Unrealized Gains | 1,436 | 2,551 |
Held-to-maturity, Gross Unrealized Losses | (6,865) | (5,345) |
Held-to-maturity, Estimated Fair Value | 525,681 | 460,089 |
Held-to-Maturity Securities | Mortgage-Backed Securities | FHLMC | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 186,921 | 144,016 |
Held-to-maturity, Gross Unrealized Gains | 151 | 195 |
Held-to-maturity, Gross Unrealized Losses | (2,937) | (2,457) |
Held-to-maturity, Estimated Fair Value | 184,135 | 141,754 |
Held-to-Maturity Securities | Mortgage-Backed Securities | FNMA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 263,103 | 217,445 |
Held-to-maturity, Gross Unrealized Gains | 1,193 | 2,209 |
Held-to-maturity, Gross Unrealized Losses | (3,000) | (2,524) |
Held-to-maturity, Estimated Fair Value | 261,296 | 217,130 |
Held-to-Maturity Securities | Mortgage-Backed Securities | GNMA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 75,243 | 92,475 |
Held-to-maturity, Gross Unrealized Gains | 64 | 119 |
Held-to-maturity, Gross Unrealized Losses | (928) | (364) |
Held-to-maturity, Estimated Fair Value | 74,379 | 92,230 |
Held-to-Maturity Securities | Mortgage-Backed Securities | SBA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 5,843 | 8,947 |
Held-to-maturity, Gross Unrealized Gains | 28 | 28 |
Held-to-maturity, Gross Unrealized Losses | 0 | 0 |
Held-to-maturity, Estimated Fair Value | 5,871 | 8,975 |
Investment Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 91,325 | 21,320 |
Held-to-maturity, Gross Unrealized Gains | 0 | 0 |
Held-to-maturity, Gross Unrealized Losses | (1,044) | (545) |
Held-to-maturity, Estimated Fair Value | 90,281 | 20,775 |
Investment Securities | U.S. Agency Obligations | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 82,378 | 12,542 |
Available-for-sale, Gross Unrealized Gains | 0 | 0 |
Available-for-sale, Gross Unrealized Losses | (797) | (318) |
Available-for-sale, Estimated Fair Value | 81,581 | 12,224 |
Investment Securities | Other investments | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 8,947 | 8,778 |
Held-to-maturity, Gross Unrealized Gains | 0 | 0 |
Held-to-maturity, Gross Unrealized Losses | (247) | (227) |
Held-to-maturity, Estimated Fair Value | 8,700 | 8,551 |
Investment Securities | Held-to-Maturity Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 240,950 | 136,172 |
Held-to-maturity, Gross Unrealized Gains | 531 | 164 |
Held-to-maturity, Gross Unrealized Losses | (5,502) | (6,857) |
Held-to-maturity, Estimated Fair Value | 235,979 | 129,479 |
Investment Securities | Held-to-Maturity Securities | U.S. Agency Obligations | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 14,968 | 19,960 |
Held-to-maturity, Gross Unrealized Gains | 0 | 69 |
Held-to-maturity, Gross Unrealized Losses | (65) | 0 |
Held-to-maturity, Estimated Fair Value | 14,903 | 20,029 |
Investment Securities | Held-to-Maturity Securities | State and Municipal Obligations | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 149,958 | 39,155 |
Held-to-maturity, Gross Unrealized Gains | 219 | 10 |
Held-to-maturity, Gross Unrealized Losses | (1,475) | (856) |
Held-to-maturity, Estimated Fair Value | 148,702 | 38,309 |
Investment Securities | Held-to-Maturity Securities | Corporate Debt Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 76,024 | 77,057 |
Held-to-maturity, Gross Unrealized Gains | 312 | 85 |
Held-to-maturity, Gross Unrealized Losses | (3,962) | (6,001) |
Held-to-maturity, Estimated Fair Value | $ 72,374 | $ 71,141 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Investment [Line Items] | |||||
Available-for-sale securities transferred to held-to-maturity securities | $ 536,000 | $ 536,000 | |||
Unrealized net loss on securities reclassified from available-for-sale to held-to-maturity, Gross | $ 13,300 | $ 13,300 | |||
Realized gains on the sale of securities | $ 0 | $ 75 | $ 0 | ||
Realized losses on sale of investment securities | 87 | ||||
Corporate debt securities, callable, amortized cost | 59,900 | ||||
Corporate debt securities, callable, estimated fair value | 56,300 | ||||
Estimated fair value of securities pledged for deposits and other purposes | 466,400 | 506,000 | |||
Reverse Repurchase Agreements | |||||
Investment [Line Items] | |||||
Estimated fair value of securities pledged for reverse repurchase agreements | $ 58,000 | $ 67,500 |
Securities - Carrying Value of
Securities - Carrying Value of Held-to-Maturity Investment Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost | $ 772,060 | $ 599,055 |
Net loss on date of transfer from available-for-sale | (13,347) | (13,347) |
Accretion of unrealized loss on securities reclassified to held-to-maturity | 5,349 | 4,204 |
Carrying value | $ 764,062 | $ 589,912 |
Securities - Amortized Cost a56
Securities - Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Less than one year, Amortized Cost | $ 45,944 |
Due after one year through five years, Amortized Cost | 158,397 |
Due after five years through ten years, Amortized Cost | 88,986 |
Due after ten years, Amortized Cost | 30,001 |
Total Amortized Cost | 323,328 |
Less than one year, Estimated Fair Value | 45,867 |
Due after one year through five years, Estimated Fair Value | 156,862 |
Due after five years through ten years, Estimated Fair Value | 87,180 |
Due after ten years, Estimated Fair Value | 27,651 |
Total Estimated Fair Value | $ 317,560 |
Securities - Estimated Fair Val
Securities - Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Total securities, Less than 12 months, Estimated Fair Value | $ 450,421 | $ 372,200 |
Total securities, Less than 12 months, Unrealized Losses | (3,806) | (5,735) |
Total securities, 12 months or longer, Estimated Fair Value | 269,954 | 84,942 |
Total securities, 12 months or longer, Unrealized Losses | (9,605) | (7,012) |
Total securities, Estimated Fair Value | 720,375 | 457,142 |
Total securities, Unrealized Losses | (13,411) | (12,747) |
Investment Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 69,375 | 20,775 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (496) | (545) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 20,906 | 0 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (548) | 0 |
Held-to-maturity, Total, Estimated Fair Value | 90,281 | 20,775 |
Held-to-maturity, Total, Unrealized Losses | (1,044) | (545) |
Investment Securities | U.S. Agency Obligations | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less than 12 months, Estimated Market Value | 69,375 | 12,224 |
Available-for-sale, Less than 12 months, Unrealized Losses | (496) | (318) |
Available-for-sale, 12 months or longer, Estimated Market Value | 12,206 | 0 |
Available-for-sale, 12 months or longer, Unrealized Losses | (301) | 0 |
Available-for-sale, Total, Estimated Market Value | 81,581 | 12,224 |
Available-for-sale, Total, Unrealized Losses | (797) | (318) |
Investment Securities | Other investments | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 0 | 8,551 |
Held-to-maturity, Less than 12 months, Unrealized Losses | 0 | (227) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 8,700 | 0 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (247) | 0 |
Held-to-maturity, Total, Estimated Fair Value | 8,700 | 8,551 |
Held-to-maturity, Total, Unrealized Losses | (247) | (227) |
Held-to-Maturity Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 381,046 | 351,425 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (3,310) | (5,190) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 249,048 | 84,942 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (9,057) | (7,012) |
Held-to-maturity, Total, Estimated Fair Value | 630,094 | 436,367 |
Held-to-maturity, Total, Unrealized Losses | (12,367) | (12,202) |
Held-to-Maturity Securities | Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 257,225 | 305,980 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (2,062) | (4,214) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 178,579 | 35,823 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (4,803) | (1,131) |
Held-to-maturity, Total, Estimated Fair Value | 435,804 | 341,803 |
Held-to-maturity, Total, Unrealized Losses | (6,865) | (5,345) |
Held-to-Maturity Securities | FHLMC | Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 98,138 | 102,461 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (781) | (1,665) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 68,238 | 26,898 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (2,156) | (792) |
Held-to-maturity, Total, Estimated Fair Value | 166,376 | 129,359 |
Held-to-maturity, Total, Unrealized Losses | (2,937) | (2,457) |
Held-to-Maturity Securities | FNMA | Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 132,982 | 124,403 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (1,058) | (2,185) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 65,060 | 8,925 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (1,942) | (339) |
Held-to-maturity, Total, Estimated Fair Value | 198,042 | 133,328 |
Held-to-maturity, Total, Unrealized Losses | (3,000) | (2,524) |
Held-to-Maturity Securities | GNMA | Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 26,105 | 79,116 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (223) | (364) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 45,281 | 0 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (705) | 0 |
Held-to-maturity, Total, Estimated Fair Value | 71,386 | 79,116 |
Held-to-maturity, Total, Unrealized Losses | (928) | (364) |
Held-to-Maturity Securities | Investment Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 123,821 | 45,445 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (1,248) | (976) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 70,469 | 49,119 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (4,254) | (5,881) |
Held-to-maturity, Total, Estimated Fair Value | 194,290 | 94,564 |
Held-to-maturity, Total, Unrealized Losses | (5,502) | (6,857) |
Held-to-Maturity Securities | Investment Securities | U.S. Agency Obligations | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 14,903 | |
Held-to-maturity, Less than 12 months, Unrealized Losses | (65) | |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 0 | |
Held-to-maturity, 12 months or longer, Unrealized Losses | 0 | |
Held-to-maturity, Total, Estimated Fair Value | 14,903 | |
Held-to-maturity, Total, Unrealized Losses | (65) | 0 |
Held-to-Maturity Securities | Investment Securities | State and Municipal Obligations | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 104,883 | 32,995 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (1,153) | (856) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 14,363 | 0 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (322) | 0 |
Held-to-maturity, Total, Estimated Fair Value | 119,246 | 32,995 |
Held-to-maturity, Total, Unrealized Losses | (1,475) | (856) |
Held-to-Maturity Securities | Investment Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 4,035 | 12,450 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (30) | (120) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 56,106 | 49,119 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (3,932) | (5,881) |
Held-to-maturity, Total, Estimated Fair Value | 60,141 | 61,569 |
Held-to-maturity, Total, Unrealized Losses | $ (3,962) | $ (6,001) |
Securities - Amortized Cost, Es
Securities - Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 772,060 | $ 599,055 |
Estimated Fair Value | 761,660 | $ 589,568 |
BankAmerica Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 15,000 | |
Estimated Fair Value | $ 14,038 | |
Credit Rating Moody's/S&P | Baa3/BBB- | |
Chase Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 10,000 | |
Estimated Fair Value | $ 9,350 | |
Credit Rating Moody's/S&P | Baa2/BBB- | |
Wells Fargo Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,713 | |
Credit Rating Moody's/S&P | A1/BBB+ | |
Huntington Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,450 | |
Credit Rating Moody's/S&P | Baa2/BB | |
Keycorp Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,675 | |
Credit Rating Moody's/S&P | Baa2/BB+ | |
PNC Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,675 | |
Credit Rating Moody's/S&P | Baa1/BBB- | |
State Street Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,625 | |
Credit Rating Moody's/S&P | A3/BBB | |
SunTrust Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,575 | |
Credit Rating Moody's/S&P | Not Rated/BB+ | |
Southern Company | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,524 | |
Estimated Fair Value | $ 1,509 | |
Credit Rating Moody's/S&P | Baa2/BBB+ | |
AT&T Inc. | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,514 | |
Estimated Fair Value | $ 1,498 | |
Credit Rating Moody's/S&P | Baa1/BBB+ | |
MetLife Global Funding | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,000 | |
Estimated Fair Value | $ 999 | |
Credit Rating Moody's/S&P | Aa3/AA- | |
State Street Corporation | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,000 | |
Estimated Fair Value | $ 999 | |
Credit Rating Moody's/S&P | A1/A | |
Corporate Debt Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 60,038 | |
Estimated Fair Value | $ 56,106 |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Loans Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Real estate mortgage | $ 1,943,444 | $ 1,818,858 | ||
Consumer | 2,030,958 | 1,988,779 | ||
Total loans | 3,974,402 | 3,807,637 | ||
Purchased credit-impaired ("PCI") loans | 1,712 | 7,575 | ||
Total net loans | 3,976,114 | 3,815,212 | ||
Deferred origination costs, net | 5,380 | 3,414 | ||
Allowance for loan losses | (15,721) | (15,183) | $ (16,722) | $ (16,317) |
Loans receivable, net | 3,965,773 | 3,803,443 | ||
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Real estate mortgage | 187,645 | 152,569 | ||
Total loans | 187,645 | 152,569 | ||
Allowance for loan losses | (1,801) | (2,037) | (1,639) | |
Commercial Real Estate, Owner Occupied | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Real estate mortgage | 569,497 | 534,214 | ||
Total loans | 569,497 | 534,214 | ||
Allowance for loan losses | (3,175) | (2,999) | (2,292) | |
Commercial real estate – investor | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Real estate mortgage | 1,186,302 | 1,132,075 | ||
Total loans | 1,186,302 | 1,132,075 | ||
Allowance for loan losses | (7,952) | (6,361) | (4,873) | |
One-to-Four Family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Consumer | 1,694,042 | 1,647,154 | ||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Consumer | 54,548 | 51,070 | ||
Residential Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Consumer | 281,143 | 288,991 | ||
Total loans | 1,748,590 | 1,698,224 | ||
Allowance for loan losses | (1,804) | (2,245) | (6,590) | |
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Consumer | 1,225 | 1,564 | ||
Total loans | 282,368 | 290,555 | ||
Allowance for loan losses | $ (614) | $ (1,110) | $ (1,095) |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Detail) - USD ($) | Jul. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans with non-accrual of interest | $ 20,865,000 | $ 13,566,000 | $ 18,300,000 | |
Financing receivables 90 days past due and still accruing | 0 | |||
Impaired loans on non-accrual commercial real estate, multi-family, land, construction, commercial and industrial loans | 250,000 | |||
Impaired loan portfolio total | 46,988,000 | 31,042,000 | ||
Specific reserves to loans accruing troubled debt restructurings | 0 | 510,000 | 262,000 | |
Allocation in allowance for loan losses | 0 | |||
Average balance of impaired loans | 39,800,000 | 38,400,000 | 41,500,000 | |
Interest income on non-accrual loans | 639,000 | 391,000 | 848,000 | |
Commitments to lend additional funds to borrowers | 0 | |||
Troubled debt restructuring loans | 42,100,000 | 30,500,000 | ||
Troubled debt restructuring loans with accrual interest | 33,300,000 | 27,000,000 | 26,300,000 | |
Non-accrual loan total troubled debt restructurings | 8,800,000 | 3,500,000 | $ 4,900,000 | |
Allowance for loan losses | 0 | |||
Colonial American Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 0 | |||
Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans with non-accrual of interest | 4,190,000 | $ 8,126,000 | ||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 1,100,000 | |||
Foreclosed property held | $ 1,100,000 |
Loans Receivable, Net - Analysi
Loans Receivable, Net - Analysis of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance at beginning of year | $ 15,183 | $ 16,722 | $ 15,183 | $ 16,722 | $ 16,317 | ||||||
Provision charged to operations | $ 1,415 | $ 1,165 | $ 1,165 | $ 700 | $ 510 | $ 888 | $ 662 | $ 563 | 4,445 | 2,623 | 1,275 |
Charge-offs | (5,384) | (4,490) | (1,135) | ||||||||
Recoveries | 1,477 | 328 | 265 | ||||||||
Balance at end of year | $ 15,721 | $ 15,183 | $ 15,721 | $ 15,183 | $ 16,722 |
Loans Receivable, Net - Allowan
Loans Receivable, Net - Allowance for Loan Loses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 15,183 | $ 16,722 | $ 16,317 |
Provision (benefit) charged to operations | 4,445 | 2,623 | |
Charge-offs | (5,384) | (4,490) | (1,135) |
Recoveries | 1,477 | 328 | 265 |
Balance at end of year | 15,721 | 15,183 | 16,722 |
Loans: | |||
Loans individually evaluated for impairment | 46,988 | 31,042 | |
Loans collectively evaluated for impairment | 3,927,414 | 3,776,595 | |
Total loans | 3,974,402 | 3,807,637 | |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 510 | |
Collectively evaluated for impairment | 15,721 | 14,673 | |
Total ending allowance balance | 15,721 | 15,183 | |
Residential Real Estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 2,245 | 6,590 | |
Provision (benefit) charged to operations | 2,742 | (3,858) | |
Charge-offs | (3,820) | (558) | |
Recoveries | 637 | 71 | |
Balance at end of year | 1,804 | 2,245 | 6,590 |
Loans: | |||
Loans individually evaluated for impairment | 10,605 | 13,306 | |
Loans collectively evaluated for impairment | 1,737,985 | 1,684,918 | |
Total loans | 1,748,590 | 1,698,224 | |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 266 | |
Collectively evaluated for impairment | 1,804 | 1,979 | |
Total ending allowance balance | 1,804 | 2,245 | |
Commercial Real Estate, Owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 2,999 | 2,292 | |
Provision (benefit) charged to operations | 203 | 2,210 | |
Charge-offs | (150) | (1,509) | |
Recoveries | 123 | 6 | |
Balance at end of year | 3,175 | 2,999 | 2,292 |
Loans: | |||
Loans individually evaluated for impairment | 15,132 | 11,123 | |
Loans collectively evaluated for impairment | 554,365 | 523,091 | |
Total loans | 569,497 | 534,214 | |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 3,175 | 2,999 | |
Total ending allowance balance | 3,175 | 2,999 | |
Commercial real estate – investor | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 6,361 | 4,873 | |
Provision (benefit) charged to operations | 2,444 | 3,200 | |
Charge-offs | (899) | (1,890) | |
Recoveries | 46 | 178 | |
Balance at end of year | 7,952 | 6,361 | 4,873 |
Loans: | |||
Loans individually evaluated for impairment | 17,923 | 3,789 | |
Loans collectively evaluated for impairment | 1,168,379 | 1,128,286 | |
Total loans | 1,186,302 | 1,132,075 | |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 119 | |
Collectively evaluated for impairment | 7,952 | 6,242 | |
Total ending allowance balance | 7,952 | 6,361 | |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 1,110 | 1,095 | |
Provision (benefit) charged to operations | (509) | 310 | |
Charge-offs | (135) | (349) | |
Recoveries | 148 | 54 | |
Balance at end of year | 614 | 1,110 | 1,095 |
Loans: | |||
Loans individually evaluated for impairment | 2,464 | 2,556 | |
Loans collectively evaluated for impairment | 279,904 | 287,999 | |
Total loans | 282,368 | 290,555 | |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 125 | |
Collectively evaluated for impairment | 614 | 985 | |
Total ending allowance balance | 614 | 1,110 | |
Commercial and Industrial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 2,037 | 1,639 | |
Provision (benefit) charged to operations | (379) | 563 | |
Charge-offs | (380) | (184) | |
Recoveries | 523 | 19 | |
Balance at end of year | 1,801 | 2,037 | 1,639 |
Loans: | |||
Loans individually evaluated for impairment | 864 | 268 | |
Loans collectively evaluated for impairment | 186,781 | 152,301 | |
Total loans | 187,645 | 152,569 | |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,801 | 2,037 | |
Total ending allowance balance | 1,801 | 2,037 | |
Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 431 | 233 | |
Provision (benefit) charged to operations | (56) | 198 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Balance at end of year | 375 | 431 | $ 233 |
Loans: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 0 | 0 | |
Total loans | 0 | 0 | |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 375 | 431 | |
Total ending allowance balance | $ 375 | $ 431 |
Loans Receivable, Net - Summa63
Loans Receivable, Net - Summary of Impaired Loans Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | |||
Impaired loans with no allocated allowance for loan losses | $ 46,988 | $ 25,228 | |
Impaired loans with allocated allowance for loan losses | 0 | 5,814 | |
Total | 46,988 | 31,042 | |
Amount of the allowance for loan losses allocated | 0 | ||
Specific Reserves On Nonaccrual Troubled Debt Restructurings | $ 0 | $ 510 | $ 262 |
Loans Receivable, Net - Summa64
Loans Receivable, Net - Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 46,988 | $ 31,042 |
Allowance for Loan Losses Allocated | 0 | |
With No Related Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 50,076 | 26,832 |
Recorded Investment | 46,988 | 25,228 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 34,674 | 36,087 |
Interest Income Recognized | 2,250 | 1,094 |
With an Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 6,590 |
Recorded Investment | 0 | 5,814 |
Allowance for Loan Losses Allocated | 0 | 510 |
Average Recorded Investment | 5,090 | 2,346 |
Interest Income Recognized | 149 | 271 |
Residential Real Estate | With No Related Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 10,951 | 9,848 |
Recorded Investment | 10,605 | 9,694 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 10,928 | 14,497 |
Interest Income Recognized | 481 | 394 |
Residential Real Estate | With an Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 3,998 |
Recorded Investment | 0 | 3,612 |
Allowance for Loan Losses Allocated | 0 | 266 |
Average Recorded Investment | 1,585 | 786 |
Interest Income Recognized | 62 | 163 |
Commercial Real Estate | With an Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 0 | 466 |
Interest Income Recognized | 0 | 0 |
Commercial Real Estate, Owner Occupied | With No Related Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 15,832 | 11,886 |
Recorded Investment | 15,132 | 11,123 |
Allowance for Loan Losses Allocated | 0 | |
Average Recorded Investment | 11,890 | 18,095 |
Interest Income Recognized | 797 | 467 |
Commercial Real Estate, Owner Occupied | With an Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Commercial real estate – investor | With No Related Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 19,457 | 2,239 |
Recorded Investment | 17,923 | 1,897 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 8,825 | 535 |
Interest Income Recognized | 768 | 98 |
Commercial real estate – investor | With an Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 2,011 |
Recorded Investment | 0 | 1,892 |
Allowance for Loan Losses Allocated | 0 | 119 |
Average Recorded Investment | 3,386 | 1,027 |
Interest Income Recognized | 81 | 79 |
Consumer | With No Related Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,941 | 2,559 |
Recorded Investment | 2,464 | 2,246 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 2,388 | 2,549 |
Interest Income Recognized | 144 | 122 |
Consumer | With an Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 581 |
Recorded Investment | 0 | 310 |
Allowance for Loan Losses Allocated | 0 | 125 |
Average Recorded Investment | 119 | 67 |
Interest Income Recognized | 6 | 29 |
Commercial and Industrial | With No Related Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 895 | 300 |
Recorded Investment | 864 | 268 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 643 | 411 |
Interest Income Recognized | 60 | 13 |
Commercial and Industrial | With an Allowance Recorded | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
Loans Receivable, Net - Recorde
Loans Receivable, Net - Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded Investment in Non-accrual Loans | $ 20,865 | $ 13,566 | $ 18,300 |
Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded Investment in Non-accrual Loans | 4,190 | 8,126 | |
Commercial Real Estate, Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded Investment in Non-accrual Loans | 5,962 | 2,414 | |
Commercial real estate – investor | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded Investment in Non-accrual Loans | 8,281 | 521 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded Investment in Non-accrual Loans | 1,929 | 2,064 | |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded Investment in Non-accrual Loans | $ 503 | $ 441 |
Loans Receivable, Net - Aging o
Loans Receivable, Net - Aging of Recorded Investment in Past Due Loans Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 36,909 | $ 36,165 |
Greater than 90 Days Past Due | 15,471 | 10,917 |
Loans Not Past Due | 3,937,493 | 3,771,472 |
Total loans | 3,974,402 | 3,807,637 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17,315 | 20,561 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,123 | 4,687 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,920 | 19,729 |
Greater than 90 Days Past Due | 3,372 | 7,159 |
Loans Not Past Due | 1,729,670 | 1,678,495 |
Total loans | 1,748,590 | 1,698,224 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13,197 | 9,532 |
Residential Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,351 | 3,038 |
Commercial Real Estate, Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,624 | 5,884 |
Greater than 90 Days Past Due | 5,402 | 890 |
Loans Not Past Due | 563,873 | 528,330 |
Total loans | 569,497 | 534,214 |
Commercial Real Estate, Owner Occupied | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 222 | 3,962 |
Commercial Real Estate, Owner Occupied | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1,032 |
Commercial real estate – investor | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,068 | 521 |
Greater than 90 Days Past Due | 4,507 | 521 |
Loans Not Past Due | 1,180,234 | 1,131,554 |
Total loans | 1,186,302 | 1,132,075 |
Commercial real estate – investor | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 135 | 0 |
Commercial real estate – investor | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,426 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,064 | 3,918 |
Greater than 90 Days Past Due | 1,687 | 1,963 |
Loans Not Past Due | 279,304 | 286,637 |
Total loans | 282,368 | 290,555 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,067 | 1,519 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 310 | 436 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,233 | 6,113 |
Greater than 90 Days Past Due | 503 | 384 |
Loans Not Past Due | 184,412 | 146,456 |
Total loans | 187,645 | 152,569 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,694 | 5,548 |
Commercial and Industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 36 | $ 181 |
Loans Receivable, Net - Risk Ca
Loans Receivable, Net - Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | $ 1,943,444 | $ 1,818,858 |
Commercial Real Estate, Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 569,497 | |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 534,214 | |
Commercial real estate – investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 1,186,302 | 1,132,075 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 187,645 | 152,569 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 1,874,637 | 1,758,873 |
Pass | Commercial Real Estate, Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 546,569 | |
Pass | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 501,652 | |
Pass | Commercial real estate – investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 1,146,630 | 1,106,747 |
Pass | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 181,438 | 150,474 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 22,134 | 9,150 |
Special Mention | Commercial Real Estate, Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 4,337 | |
Special Mention | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 7,680 | |
Special Mention | Commercial real estate – investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 14,644 | 713 |
Special Mention | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 3,153 | 757 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 46,673 | 50,835 |
Substandard | Commercial Real Estate, Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 18,591 | |
Substandard | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 24,882 | |
Substandard | Commercial real estate – investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 25,028 | 24,615 |
Substandard | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 3,054 | 1,338 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 0 | 0 |
Doubtful | Commercial Real Estate, Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 0 | |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 0 | |
Doubtful | Commercial real estate – investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | 0 | 0 |
Doubtful | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan | $ 0 | $ 0 |
Loans Receivable, Net - Recor68
Loans Receivable, Net - Recorded Investment in Residential and Consumer Loans Based on Payment Activity Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Non-performing | $ 20,865 | $ 13,566 | $ 18,300 |
Total loans | 3,974,402 | 3,807,637 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-performing | 4,190 | 8,126 | |
Total loans | 1,748,590 | 1,698,224 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-performing | 1,929 | 2,064 | |
Total loans | 282,368 | 290,555 | |
Residential Real Estate | Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Performing | 1,744,400 | 1,690,098 | |
Non-performing | 4,190 | 8,126 | |
Total loans | 1,698,224 | ||
Residential Real Estate | Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Performing | 280,439 | 288,491 | |
Non-performing | $ 1,929 | 2,064 | |
Total loans | $ 290,555 |
Loans Receivable, Net - Trouble
Loans Receivable, Net - Troubled Debt Restructurings (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)SecurityLoan | Dec. 31, 2016USD ($)SecurityLoan | |
Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 8 | 7 |
Pre-modification Recorded Investment | $ 1,637 | $ 1,574 |
Post-modification Recorded Investment | $ 1,600 | $ 1,523 |
Commercial real estate – owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 7 | |
Pre-modification Recorded Investment | $ 6,977 | |
Post-modification Recorded Investment | $ 6,977 | |
Commercial real estate – investor | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 7 | 1 |
Pre-modification Recorded Investment | $ 10,904 | $ 1,592 |
Post-modification Recorded Investment | $ 11,026 | $ 1,592 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 1 | |
Pre-modification Recorded Investment | $ 665 | |
Post-modification Recorded Investment | $ 665 | |
Subsequently Defaulted | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 0 | 0 |
Recorded Investment | $ 0 | $ 0 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 8 | |
Pre-modification Recorded Investment | $ 852 | |
Post-modification Recorded Investment | $ 846 |
Loans Receivable, Net - PCI Loa
Loans Receivable, Net - PCI Loans Acquired (Detail) - USD ($) $ in Thousands | Dec. 01, 2016 | May 02, 2016 |
Ocean Shore Holdings Co. | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Contractually required principal and interest | $ 7,385 | |
Contractual cash flows not expected to be collected (non-accretable discount) | (4,666) | |
Expected cash flows to be collected at acquisition | 2,719 | |
Interest component of expected cash flows (accretable yield) | (401) | |
Fair value of acquired loans | $ 2,318 | |
Cape Bancorp, Inc. | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Contractually required principal and interest | $ 21,345 | |
Contractual cash flows not expected to be collected (non-accretable discount) | (12,387) | |
Expected cash flows to be collected at acquisition | 8,958 | |
Interest component of expected cash flows (accretable yield) | (576) | |
Fair value of acquired loans | $ 8,382 |
Loans Receivable, Net - Summa71
Loans Receivable, Net - Summary of Changes in Accretable Yield (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 749 | $ 75 |
Acquisition | 0 | 977 |
Accretion | (921) | (459) |
Reclassification from non-accretable difference | 333 | 156 |
Ending balance | $ 161 | $ 749 |
Interest and Dividends Receiv72
Interest and Dividends Receivable - Summary of Interest and Dividends Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Interest and dividends receivable, Loans | $ 10,750 | $ 10,499 |
Interest and dividends receivable, Investment securities | 2,430 | 582 |
Interest and dividends receivable, Mortgage-backed securities | 1,074 | 908 |
Interest and dividends receivable | $ 14,254 | $ 11,989 |
Premises and Equipment, Net - S
Premises and Equipment, Net - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 24,876 | $ 19,080 |
Buildings and improvements | 97,463 | 63,955 |
Leasehold improvements | 6,613 | 6,598 |
Furniture and equipment | 30,545 | 33,375 |
Construction in progress | 1,450 | 3,240 |
Total | 160,947 | 126,248 |
Accumulated depreciation and amortization | (59,171) | (54,863) |
Premises and equipment, net | $ 101,776 | $ 71,385 |
Premises and Equipment, Net - N
Premises and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Purchases of premises and equipment | $ 48,698 | $ 6,670 | $ 3,891 |
Depreciation and amortization expense | 6,300 | $ 4,800 | $ 3,300 |
Office Building | |||
Property, Plant and Equipment [Line Items] | |||
Purchases of premises and equipment | $ 42,500 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Accrued interest payable | $ 22 | $ 31 |
Time deposits, $100,000 and over | $ 270,600 | $ 269,000 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits Including Accrued Interest Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Non-interest-bearing accounts, Amount | $ 756,513 | $ 782,504 |
Interest-bearing checking accounts, Amount | 1,954,358 | 1,626,713 |
Money market deposit accounts, Amount | 363,656 | 458,911 |
Savings accounts, Amount | 661,167 | 672,519 |
Time deposits, Amount | 607,104 | 647,103 |
Total deposits | $ 4,342,798 | $ 4,187,750 |
Non-interest-bearing accounts, Weighted Average Cost | 0.00% | 0.00% |
Interest-bearing checking accounts, Weighted Average Cost | 0.32% | 0.19% |
Money market deposit accounts, Weighted Average Cost | 0.33% | 0.30% |
Savings accounts, Weighted Average Cost | 0.04% | 0.08% |
Time deposits, Weighted Average Cost | 1.18% | 1.14% |
Weighted Average Cost | 0.34% | 0.30% |
Deposits - Summary of Time Depo
Deposits - Summary of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
2,018 | $ 308,237 | |
2,019 | 110,598 | |
2,020 | 66,959 | |
2,021 | 42,060 | |
2,022 | 75,620 | |
Thereafter | 3,630 | |
Total time deposits | $ 607,104 | $ 647,103 |
Deposits - Summary of Interest
Deposits - Summary of Interest Expense on Deposits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |||
Interest-bearing checking accounts | $ 4,533 | $ 2,114 | $ 952 |
Money market deposit accounts | 1,213 | 858 | 187 |
Savings accounts | 345 | 191 | 102 |
Time deposits | 6,245 | 4,354 | 3,060 |
Total interest expense on deposits | $ 12,336 | $ 7,517 | $ 4,301 |
Borrowed Funds - Summary of Bor
Borrowed Funds - Summary of Borrowed Funds (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Federal Home Loan Bank advances, Amount | $ 288,691 | $ 250,498 |
Securities sold under agreements to repurchase, Amount | 79,668 | 69,935 |
Other borrowings, Amount | 56,519 | 56,559 |
Borrowed funds, Amount | $ 424,878 | $ 376,992 |
Weighted Average | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Federal Home Loan Bank advances, Weighted Average Rate | 1.74% | 1.75% |
Securities sold under agreements to repurchase, Weighted Average Rate | 0.21% | 0.13% |
Other borrowings, Weighted Average Rate | 4.48% | 4.21% |
Borrowed funds, Weighted Average Rate | 1.82% | 1.81% |
Borrowed Funds - Summary of Fed
Borrowed Funds - Summary of Federal Home Loan Bank Advances and Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Average balance | $ 258,870 | $ 266,981 |
Maximum amount outstanding at any month end | $ 291,615 | $ 252,229 |
Average interest rate for the year | 1.73% | 1.67% |
Reverse Repurchase Agreements | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Average balance | $ 74,712 | $ 75,227 |
Maximum amount outstanding at any month end | $ 80,945 | $ 81,738 |
Average interest rate for the year | 0.16% | 0.14% |
Amortized cost of collateral, Mortgage-backed securities | $ 58,020 | $ 67,224 |
Estimated fair value of collateral, Mortgage-backed securities | $ 58,007 | $ 67,452 |
Borrowed Funds - Contractual Ma
Borrowed Funds - Contractual Maturities of FHLB Advances and Reverse Repurchase Agreements (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB Advances, 2017 | $ 96,958 | |
FHLB Advances, 2018 | 81,618 | |
FHLB Advances, 2019 | 75,115 | |
FHLB Advances, 2020 | 25,000 | |
FHLB Advances, 2021 | 10,000 | |
FHLB Advances contractual maturities, net | 288,691 | $ 250,498 |
Reverse Repurchase Agreements | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
2,017 | 79,668 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Contractual maturities, net | $ 79,668 |
Borrowed Funds - Additional Inf
Borrowed Funds - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2007 | Dec. 31, 2006 | |
Deposits [Line Items] | ||||
Subordinated debt issued | $ 35 | |||
Subordinated debt at a fixed interest rate | 5.125% | |||
Length of fixed interest rate (in years) | 5 years | |||
Trust preferred securities issued | $ 10 | $ 12.5 | ||
Trust preferred securities, principal maturity date | Sep. 1, 2037 | |||
Trust preferred securities, principal maturity date | 2,036 | |||
Minimum investment in the capital stock of the FHLB | 0.20% | |||
Specified value of certain transactions between the Bank and the FHLB | 4.50% | |||
Trust Preferred Securities | ||||
Deposits [Line Items] | ||||
Floating rate percentage | 1.75% | 1.66% | ||
Floating rate description | 3-month LIBOR | |||
Subordinated Debt | ||||
Deposits [Line Items] | ||||
Floating rate percentage | 3.92% | |||
London Interbank Offered Rate (LIBOR) | Subordinated Debt | ||||
Deposits [Line Items] | ||||
Long-term Debt, Percentage Bearing Variable Interest, Term | 5 years |
Borrowed Funds - Interest Expen
Borrowed Funds - Interest Expense on Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |||
Federal Home Loan Bank advances | $ 4,486 | $ 4,471 | $ 3,850 |
Securities sold under agreements to repurchase | 121 | 102 | 103 |
Other borrowings | 2,668 | 1,073 | 780 |
Net interest expense on borrowed funds | $ 7,275 | $ 5,646 | $ 4,733 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ (12,754) | $ 6,259 | $ 8,378 | ||||||||
State | 169 | 96 | 1,064 | ||||||||
Total current | (12,585) | 6,355 | 9,442 | ||||||||
Deferred: | |||||||||||
Federal | 35,440 | 5,798 | 1,349 | ||||||||
State | 0 | 0 | 92 | ||||||||
Total deferred | 35,440 | 5,798 | 1,441 | ||||||||
Income tax expense (benefit) | $ 10,186 | $ 5,700 | $ 3,170 | $ 3,799 | $ 2,984 | $ 4,789 | $ 1,928 | $ 2,452 | $ 22,855 | $ 12,153 | $ 10,883 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Unrealized gains (loss) on securities, tax expense | $ 276,000 | $ 330,000 | $ 600,000 |
Share-based compensation, excess tax benefit, amount | 1,800,000 | 1,800,000 | |
Income tax benefit (expense) attributable to stock plans prior to ASU adoption | 62,000 | 32,000 | |
Retained earnings not provided for provision for income tax | 10,800,000 | ||
Unrecognized deferred tax liability | 2,300,000 | ||
Unrecognized tax benefits | 0 | 0 | $ 0 |
Tax Cuts and Jobs Act of 2017, change in tax rate, income tax expense (benefit) | 3,600,000 | ||
Colonial American Bank | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 5,900,000 | 5,900,000 | |
Operating loss carryforwards, subject to expiration | 330,000 | ||
Cape Bancorp, Inc. | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 10,500,000 | 10,800,000 | |
Operating loss carryforwards, subject to expiration | 4,500,000 | ||
Tax credit | 1,000,000 | ||
New Jersey | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit | 1,800,000 | $ 1,800,000 | |
Other Comprehensive Income | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Cuts and Jobs Act of 2017, change in tax rate, income tax expense (benefit) | $ 1,800,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Reconciliation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income before provision for income taxes | $ 65,325 | $ 35,199 | $ 31,205 | ||||||||
Applicable statutory Federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Computed "expected" Federal income tax expense | $ 22,864 | $ 12,320 | $ 10,922 | ||||||||
Increase (decrease) in Federal income tax expense resulting from: | |||||||||||
Tax exempt interest | (839) | (390) | (291) | ||||||||
ESOP fair market value adjustment | 223 | 131 | 111 | ||||||||
ESOP dividends | (230) | (223) | (234) | ||||||||
Earnings on BOLI | (1,155) | (781) | (525) | ||||||||
Merger related expenses | 478 | 1,005 | 132 | ||||||||
State income taxes net of Federal benefit | 110 | 62 | 751 | ||||||||
Stock compensation | (1,823) | 0 | 0 | ||||||||
Impact of Tax Cuts and Jobs Act (“Tax Reform”) | 3,643 | 0 | 0 | ||||||||
Other items, net | (416) | 29 | 17 | ||||||||
Income tax expense (benefit) | $ 10,186 | $ 5,700 | $ 3,170 | $ 3,799 | $ 2,984 | $ 4,789 | $ 1,928 | $ 2,452 | $ 22,855 | $ 12,153 | $ 10,883 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,311 | $ 6,269 |
Reserve for repurchased loans | 97 | 346 |
Reserve for uncollected interest | 49 | 70 |
Incentive compensation | 0 | 1,695 |
Deferred compensation | 519 | 1,549 |
Other reserves | 115 | 375 |
Stock plans | 864 | 2,151 |
ESOP | 126 | 224 |
Purchase accounting adjustments | 3,436 | 16,905 |
Net operating loss carryforward related to acquisition | 3,741 | 5,829 |
Other real estate owned | 170 | 26 |
Unrealized loss on securities | 1,898 | 5,211 |
Total gross deferred tax assets | 16,777 | 42,870 |
Deferred tax liabilities: | ||
Incentive compensation | (127) | 0 |
Excess servicing on sale of mortgage loans | (28) | (76) |
Investments, discount accretion | (244) | (434) |
Deferred loan and commitment costs, net | (1,119) | (1,261) |
Premises and equipment, differences in depreciation | (373) | (52) |
Undistributed REIT income | (12,322) | (2,167) |
Other | (642) | 0 |
Total gross deferred tax liabilities | (14,855) | (3,990) |
Net deferred tax assets | 1,922 | 38,880 |
Domestic Tax Authority | ||
Deferred tax assets: | ||
Alternative minimum tax | $ 2,451 | $ 2,220 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) $ in Thousands | May 12, 1998 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Purchase of common stock shares | 2,013,137 | |||
Fixed interest rate | 8.25% | |||
Contributions to ESOP | $ 505 | $ 507 | ||
Dividends paid unallocated ESOP shares | 195 | 194 | ||
Outstanding loan | $ 3,100 | $ 3,300 | ||
Unallocated shares of ESOP | 293,860 | 327,362 | ||
Fair value of unallocated shares | $ 7,700 | |||
Shares allocated to participants | 2,319,525 | |||
Shares committed to be released | 33,502 | |||
Minimum | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Extended loan term | 12 years | |||
Maximum | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Extended loan term | 30 years | |||
Employee Stock Ownership Plan | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Minimum age limit for employees to participate in ESOP | 21 years | |||
Minimum number of working hours | 1000 hours | |||
ESOP original borrowings | $ 13,400 | |||
Additional borrowings | $ 8,200 | |||
Additional common stock shares | 633,750 | |||
Expiration period | 2,026 | |||
Compensation expense related to ESOP | $ 919 | $ 657 | $ 603 | |
Increase in the average fair value | $ 637 | $ 373 | $ 318 |
Incentive Plan - Additional Inf
Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, assumed in acquisition | 0 | 886,968 | |
Weighted average exercise price, assumed in acquisition (in dollars per share) | $ 0 | $ 10.30 | |
Compensation cost related to non-vested awards not yet recognized | $ 5,400 | ||
Aggregate intrinsic value for stock options outstanding | 24,300 | ||
Aggregate intrinsic value for stock options exercisable | $ 19,300 | ||
Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock incentive plan expiration period | 10 years | ||
Expense for stock option grants | $ 1,164 | $ 829 | $ 783 |
Vesting period of compensation cost related to non-vested awards | 3 years 4 months 21 days | ||
Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense for stock option grants | $ 1,017 | $ 684 | $ 517 |
2011 Stock Incentive Plan | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock incentive plan, number of additional shares authorized | 4,000,000 | ||
Stock incentive plan remaining options or awards | 1,799,047 | ||
2011 Stock Incentive Plan | Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock incentive plan, number of additional shares authorized | 1,600,000 | ||
Stock incentive plan remaining options or awards | 719,619 | ||
2006 Stock Incentive Plan | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock incentive plan, number of additional shares authorized | 1,000,000 | ||
Stock incentive plan remaining options or awards | 0 | ||
2006 Stock Incentive Plan | Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock incentive plan, number of additional shares authorized | 333,333 | ||
Tranche One | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock incentive plan vesting rate | 20.00% | ||
Colonial American Bank | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, assumed in acquisition | 370,000 | ||
Weighted average exercise price, assumed in acquisition (in dollars per share) | $ 26.11 | ||
Cape Bancorp, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, assumed in acquisition | 599,373 | ||
Weighted average exercise price, assumed in acquisition (in dollars per share) | $ 10.34 | ||
Ocean Shore Holdings Co. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, assumed in acquisition | 287,595 | ||
Weighted average exercise price, assumed in acquisition (in dollars per share) | $ 9.37 |
Incentive Plan - Summary of Fai
Incentive Plan - Summary of Fair Value of Stock Options Granted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 2.31% | 1.69% | 1.72% |
Expected option life | 7 years | 7 years | 7 years |
Expected volatility | 21.00% | 21.00% | 28.00% |
Expected dividend yield | 2.07% | 3.01% | 2.99% |
Weighted average fair value of an option share granted during the year | $ 5.62 | $ 2.64 | $ 3.58 |
Intrinsic value of options exercised during the year | $ 7,882 | $ 3,412 | $ 136 |
Incentive Plan - Summary of Opt
Incentive Plan - Summary of Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Shares, Outstanding at beginning of year | 2,758,833 | 2,281,931 | 1,751,270 |
Number of Shares, Granted | 335,150 | 317,460 | 238,305 |
Number of Shares, Assumed in acquisition | 0 | 886,968 | |
Number of Shares, Exercised | (567,153) | (375,576) | (29,480) |
Number of Shares, Forfeited | (35,099) | (11,625) | (8,900) |
Number of Shares, Expired | (2,417) | (340,325) | (39,264) |
Number of Shares, Outstanding at end of year | 2,489,314 | 2,758,833 | 2,281,931 |
Number of Shares, Options exercisable at end of year | 1,608,762 | 1,912,630 | 1,497,960 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Outstanding at beginning of year (in dollars per share) | $ 14.94 | $ 17.62 | $ 15.94 |
Weighted Average Exercise Price, Granted (in dollars per share) | 29.01 | 17.27 | 17.39 |
Weighted Average Exercise Price, Assumed in acquisition | 0 | 10.30 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | 14.39 | 13.20 | 13.43 |
Weighted Average Exercise Price, Forfeited (in dollars per share) | 18.42 | 16.37 | 14.56 |
Weighted Average Exercise Price, Expired (in dollars per share) | 11.70 | 25.02 | 25.31 |
Weighted Average Exercise Price, Outstanding at end of year (in dollars per share) | $ 16.91 | $ 14.94 | $ 17.62 |
Incentive Plan - Summary of Sto
Incentive Plan - Summary of Stock Options Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding | shares | 2,489,314 |
Weighted Average Remaining Contractual Life, Options Outstanding | 5 years 5 months 2 days |
Weighted Average Exercise Price, Options Outstanding | $ 16.91 |
Number Of Options Exercisable | shares | 1,608,762 |
Weighted Average Remaining Contractual Life, Options Exercisable | 4 years 5 days |
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 14.34 |
Exercise Prices From 8.44 to 9.98 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices Lower Limit | 8.44 |
Exercise Prices Higher Limit | $ 9.98 |
Number of Options Outstanding | shares | 283,707 |
Weighted Average Remaining Contractual Life, Options Outstanding | 2 years 7 months 12 days |
Weighted Average Exercise Price, Options Outstanding | $ 8.97 |
Number Of Options Exercisable | shares | 283,707 |
Weighted Average Remaining Contractual Life, Options Exercisable | 2 years 7 months 14 days |
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 8.97 |
Exercise Prices From 10.00 to 12.28 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices Lower Limit | 9.99 |
Exercise Prices Higher Limit | $ 12.28 |
Number of Options Outstanding | shares | 293,557 |
Weighted Average Remaining Contractual Life, Options Outstanding | 2 years 9 months 8 days |
Weighted Average Exercise Price, Options Outstanding | $ 10.74 |
Number Of Options Exercisable | shares | 293,557 |
Weighted Average Remaining Contractual Life, Options Exercisable | 2 years 9 months 6 days |
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 10.74 |
Exercise Prices From 12.40 to 14.62 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices Lower Limit | 12.40 |
Exercise Prices Higher Limit | $ 14.62 |
Number of Options Outstanding | shares | 648,568 |
Weighted Average Remaining Contractual Life, Options Outstanding | 4 years 3 months 21 days |
Weighted Average Exercise Price, Options Outstanding | $ 14.07 |
Number Of Options Exercisable | shares | 588,243 |
Weighted Average Remaining Contractual Life, Options Exercisable | 4 years 2 months 3 days |
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 14.05 |
Exercise Prices From 16.06 to 18.45 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices Lower Limit | 16.06 |
Exercise Prices Higher Limit | $ 18.45 |
Number of Options Outstanding | shares | 787,082 |
Weighted Average Remaining Contractual Life, Options Outstanding | 6 years 11 months 15 days |
Weighted Average Exercise Price, Options Outstanding | $ 17.40 |
Number Of Options Exercisable | shares | 304,505 |
Weighted Average Remaining Contractual Life, Options Exercisable | 6 years 1 month 25 days |
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 17.42 |
Exercise Prices From 20.25 to 23.48 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices Lower Limit | 20.25 |
Exercise Prices Higher Limit | $ 23.48 |
Number of Options Outstanding | shares | 476,400 |
Weighted Average Remaining Contractual Life, Options Outstanding | 7 years 8 months 10 days |
Weighted Average Exercise Price, Options Outstanding | $ 28.50 |
Number Of Options Exercisable | shares | 138,750 |
Weighted Average Remaining Contractual Life, Options Exercisable | 4 years 1 month 14 days |
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 27.34 |
Exercise Prices 27.34 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices Lower Limit | $ 27.34 |
Incentive Plan - Summary of Gra
Incentive Plan - Summary of Granted but Unvested Stock Award Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Shares, Outstanding at beginning of year | 156,945 | 126,960 | 81,775 |
Number of Shares, Granted | 69,175 | 66,770 | 70,890 |
Number of Shares, Vested | (47,379) | (33,651) | (23,587) |
Number of Shares, Forfeited | (9,038) | (3,134) | (2,118) |
Number of Shares, Outstanding at end of year | 169,703 | 156,945 | 126,960 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted Average Grant Date Fair Value, Outstanding at beginning of year | $ 17.25 | $ 16.90 | $ 15.85 |
Weighted Average Grant Date Fair Value, Granted | 28.70 | 17.66 | 17.39 |
Weighted Average Grant Date Fair Value, Vested | 17.32 | 16.31 | 14.86 |
Weighted Average Grant Date Fair Value, Forfeited | 19.14 | 16.54 | 15.16 |
Weighted Average Grant Date Fair Value, Outstanding at end of year | $ 21.79 | $ 17.25 | $ 16.90 |
Commitments, Contingencies an94
Commitments, Contingencies and Concentrations of Credit Risk - Summary of Commitments and Contingent Liabilities (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
Fixed-Rate | $ 63,819 |
Adjustable-Rate | 2,379 |
Floating-Rate | 22,740 |
Unused consumer and construction loan lines of credit (primarily floating-rate) | |
Debt Instrument [Line Items] | |
Unused loan lines of credit (primarily floating-rate) | 207,006 |
Unused commercial loan lines of credit (primarily floating-rate) | |
Debt Instrument [Line Items] | |
Unused loan lines of credit (primarily floating-rate) | $ 315,400 |
Commitments, Contingencies an95
Commitments, Contingencies and Concentrations of Credit Risk - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Commitments [Line Items] | |||
Fixed-rate loan commitments | 90 days | ||
Rental expense | $ 3.2 | $ 3.1 | $ 2.3 |
Minimum | |||
Other Commitments [Line Items] | |||
Interest rates | 2.25% | ||
Maximum | |||
Other Commitments [Line Items] | |||
Interest rates | 5.99% |
Commitments, Contingencies an96
Commitments, Contingencies and Concentrations of Credit Risk - Summary of Projected Minimum Rental Commitments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 2,009 |
2,019 | 1,990 |
2,020 | 1,968 |
2,021 | 1,798 |
2,022 | 1,612 |
Thereafter | 6,859 |
Total | $ 16,236 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Shares Outstanding for Basic and Diluted Earnings per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding | 32,490 | 23,481 | 17,037 |
Less: Unallocated ESOP shares | (311) | (344) | (378) |
Unallocated Incentive award shares and shares held by deferred compensation plan | (66) | (44) | (59) |
Average basic shares outstanding | 32,113 | 23,093 | 16,600 |
Add: Effect of dilutive securities: | |||
Incentive awards and shares held by deferred compensation plan | 1,012 | 433 | 211 |
Average diluted shares outstanding | 33,125 | 23,526 | 16,811 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Antidilutive stock options excluded from earnings per share calculations | 331 | 882 | 926 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Estimated selling costs percentage of loans measured for impairment | 15.00% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Financial Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 90,281 | $ 20,775 |
Items Measured on a Recurring Basis | U.S. Agency Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 81,581 | 12,224 |
Items Measured on a Recurring Basis | Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 8,700 | 8,551 |
Items Measured on a Non-Recurring Basis | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 8,186 | 9,803 |
Items Measured on a Non-Recurring Basis | Loans Measured for Impairment Based on the Fair Value of Underlying Collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 16,496 | 2,419 |
Level 1 Inputs | Items Measured on a Recurring Basis | Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 8,700 | 8,551 |
Level 2 Inputs | Items Measured on a Recurring Basis | U.S. Agency Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 81,581 | 12,224 |
Level 3 Inputs | Items Measured on a Non-Recurring Basis | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 8,186 | 9,803 |
Level 3 Inputs | Items Measured on a Non-Recurring Basis | Loans Measured for Impairment Based on the Fair Value of Underlying Collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 16,496 | $ 2,419 |
Fair Value Measurements - Book
Fair Value Measurements - Book Value and Estimated Fair Value of Bank's Significant Financial Instruments Not Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||
Securities held-to-maturity | $ 761,660 | $ 589,568 |
Financial Liabilities: | ||
Time deposits | 607,104 | 647,103 |
Securities sold under agreements to repurchase with retail customers | 79,668 | 69,935 |
Book Value | ||
Financial Assets: | ||
Cash and due from banks | 109,613 | 301,373 |
Securities held-to-maturity | 764,062 | 589,912 |
Federal Home Loan Bank of New York stock | 19,724 | 19,313 |
Loans receivable and mortgage loans held-for-sale | 3,966,014 | 3,804,994 |
Financial Liabilities: | ||
Deposits other than time deposits | 3,735,694 | 3,540,647 |
Time deposits | 607,104 | 647,103 |
Federal Home Loan Bank advances and other borrowings | 345,210 | 307,057 |
Level 1 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 109,613 | 301,373 |
Securities held-to-maturity | 0 | 0 |
Financial Liabilities: | ||
Securities sold under agreements to repurchase with retail customers | 79,668 | 69,935 |
Level 2 Inputs | ||
Financial Assets: | ||
Securities held-to-maturity | 751,182 | 586,504 |
Financial Liabilities: | ||
Deposits other than time deposits | 3,735,694 | 3,540,647 |
Time deposits | 599,677 | 644,354 |
Federal Home Loan Bank advances and other borrowings | 341,820 | 304,901 |
Level 3 Inputs | ||
Financial Assets: | ||
Securities held-to-maturity | 10,478 | 3,030 |
Federal Home Loan Bank of New York stock | 19,724 | 19,313 |
Loans receivable and mortgage loans held-for-sale | $ 3,962,689 | $ 3,834,677 |
Parent-Only Financial Inform102
Parent-Only Financial Information - Condensed Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and due from banks | $ 109,613 | $ 301,373 | $ 43,946 | $ 36,117 |
Investment securities | 90,281 | 20,775 | ||
Other assets | 41,895 | 9,973 | ||
Total assets | 5,416,006 | 5,166,917 | ||
Liabilities and Stockholders’ Equity | ||||
Borrowings | 424,878 | 376,992 | ||
Other liabilities | 35,233 | 16,242 | ||
Stockholder's equity | 601,941 | 571,903 | $ 238,446 | $ 218,259 |
Total liabilities and stockholders’ equity | 5,416,006 | 5,166,917 | ||
OceanFirst Financial Corp. | ||||
Assets | ||||
Cash and due from banks | 16 | 9,100 | ||
Advances to subsidiary Bank | 33,749 | 12,358 | ||
Investment securities | 1,000 | 1,000 | ||
ESOP loan receivable | 3,051 | 3,285 | ||
Investment in subsidiary Bank | 617,866 | 602,274 | ||
Other assets | 3,343 | 3,522 | ||
Total assets | 659,025 | 631,539 | ||
Liabilities and Stockholders’ Equity | ||||
Borrowings | 56,519 | 56,398 | ||
Other liabilities | 565 | 3,238 | ||
Stockholder's equity | 601,941 | 571,903 | ||
Total liabilities and stockholders’ equity | $ 659,025 | $ 631,539 |
Parent-Only Financial Inform103
Parent-Only Financial Information - Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest expense - borrowings | $ 7,275 | $ 5,646 | $ 4,733 | ||||||||
Operating expenses | $ 26,434 | $ 27,580 | $ 28,527 | $ 29,481 | $ 25,833 | $ 23,715 | $ 21,457 | $ 15,313 | 126,520 | 102,852 | 60,775 |
Benefit for income taxes | (10,186) | (5,700) | (3,170) | (3,799) | (2,984) | (4,789) | (1,928) | (2,452) | (22,855) | (12,153) | (10,883) |
Net income | $ 9,956 | $ 12,817 | $ 7,679 | $ 12,018 | $ 6,052 | $ 9,128 | $ 3,661 | $ 4,205 | 42,470 | 23,046 | 20,322 |
OceanFirst Financial Corp. | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividend income - subsidiary Bank | 32,000 | 4,000 | 16,000 | ||||||||
Interest and dividend income - investment securities | 63 | 62 | 3 | ||||||||
Interest income - advances to subsidiary Bank | 280 | 118 | 51 | ||||||||
Interest income - ESOP loan receivable | 321 | 322 | 306 | ||||||||
Total income | 32,664 | 4,502 | 16,360 | ||||||||
Interest expense - borrowings | 2,592 | 1,049 | 736 | ||||||||
Operating expenses | 1,788 | 1,697 | 1,452 | ||||||||
Income before income taxes and undistributed earnings of subsidiary Bank | 28,284 | 1,756 | 14,172 | ||||||||
Benefit for income taxes | 973 | 780 | 634 | ||||||||
Income before undistributed earnings of subsidiary Bank | 29,257 | 2,536 | 14,806 | ||||||||
Undistributed earnings of subsidiary Bank | 13,213 | 20,510 | 5,516 | ||||||||
Net income | $ 42,470 | $ 23,046 | $ 20,322 |
Parent-Only Financial Inform104
Parent-Only Financial Information - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 9,956 | $ 12,817 | $ 7,679 | $ 12,018 | $ 6,052 | $ 9,128 | $ 3,661 | $ 4,205 | $ 42,470 | $ 23,046 | $ 20,322 |
Cash flows from investing activities: | |||||||||||
Purchase of investment securities | (69,987) | (10,021) | (9,972) | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of borrowings | 0 | (10,000) | (5,000) | ||||||||
Dividends paid | (19,286) | (12,616) | (8,693) | ||||||||
Purchase of treasury stock | 0 | (1,878) | (6,459) | ||||||||
Exercise of stock options | 3,354 | 3,989 | 396 | ||||||||
Net (decrease) increase in cash and due from banks | (191,760) | 257,427 | 7,829 | ||||||||
OceanFirst Financial Corp. | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 42,470 | 23,046 | 20,322 | ||||||||
(Increase) decrease in advances to subsidiary Bank | (23,371) | 3,838 | 6,580 | ||||||||
Undistributed earnings of subsidiary Bank | (13,213) | (20,510) | (5,516) | ||||||||
Amortization of deferred costs on borrowings | 121 | 0 | 0 | ||||||||
Change in other assets and other liabilities | 607 | (1,619) | (707) | ||||||||
Net cash provided by operating activities | 6,614 | 4,755 | 20,679 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchase of investment securities | 0 | 0 | (1,000) | ||||||||
Repayments on ESOP loan receivable | 234 | 218 | 204 | ||||||||
Cash consideration for acquisition, net of cash received | 0 | (19,274) | (127) | ||||||||
Net cash provided by (used in) investing activities | 234 | (19,056) | (923) | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of subordinated notes | 0 | 33,899 | 0 | ||||||||
Repayment of borrowings | 0 | 0 | (5,000) | ||||||||
Dividends paid | (19,286) | (12,616) | (8,693) | ||||||||
Purchase of treasury stock | 0 | (1,878) | (6,459) | ||||||||
Exercise of stock options | 3,354 | 3,989 | 396 | ||||||||
Net cash (used in) provided by financing activities | (15,932) | 23,394 | (19,756) | ||||||||
Net (decrease) increase in cash and due from banks | (9,084) | 9,093 | 0 | ||||||||
Cash and due from banks at beginning of year | $ 9,100 | $ 7 | 9,100 | 7 | 7 | ||||||
Cash and due from banks at end of year | $ 16 | $ 9,100 | $ 16 | $ 9,100 | $ 7 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Sun Bancorp, Inc. - Subsequent Event $ / shares in Units, shares in Thousands, $ in Millions | Jan. 31, 2018USD ($)administrative_officebank_officeloan_office$ / sharesshares |
Subsequent Event [Line Items] | |
Share price | $ / shares | $ 26.45 |
Consideration paid | $ 474.9 |
Stock issued during period, shares, acquisitions | shares | 15,093 |
Number of bank offices | bank_office | 30 |
Number of loan offices | loan_office | 3 |
Number of administrative offices | administrative_office | 2 |
Purchase accounting adjustments, assets | $ 2,100 |
Purchase accounting adjustments, loans | 1,500 |
Purchase accounting adjustments, deposits | $ 1,600 |
Selected Consolidated Quarte106
Selected Consolidated Quarterly Financial Data - Summary of Consolidated Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 47,906 | $ 48,030 | $ 46,879 | $ 46,014 | $ 39,904 | $ 37,307 | $ 33,141 | $ 23,073 | $ 188,829 | $ 133,425 | $ 85,863 |
Interest expense | 5,401 | 4,974 | 4,705 | 4,531 | 4,150 | 3,372 | 3,127 | 2,514 | 19,611 | 13,163 | 9,034 |
Net interest income | 42,505 | 43,056 | 42,174 | 41,483 | 35,754 | 33,935 | 30,014 | 20,559 | 169,218 | 120,262 | 76,829 |
Provision for loan losses | 1,415 | 1,165 | 1,165 | 700 | 510 | 888 | 662 | 563 | 4,445 | 2,623 | 1,275 |
Net interest income after provision for loan losses | 41,090 | 41,891 | 41,009 | 40,783 | 35,244 | 33,047 | 29,352 | 19,996 | 164,773 | 117,639 | 75,554 |
Other income | 6,745 | 7,359 | 6,973 | 5,995 | 6,257 | 5,896 | 4,883 | 3,376 | |||
Operating expenses (excluding merger related expenses) | 26,434 | 27,580 | 28,527 | 29,481 | 25,833 | 23,715 | 21,457 | 15,313 | 126,520 | 102,852 | 60,775 |
Merger related expenses | 1,259 | 3,153 | 8,606 | 1,480 | 6,632 | 1,311 | 7,189 | 1,402 | 8,293 | 16,534 | 1,878 |
Income before provision for income taxes | 20,142 | 18,517 | 10,849 | 15,817 | 9,036 | 13,917 | 5,589 | 6,657 | |||
Provision for income taxes | 10,186 | 5,700 | 3,170 | 3,799 | 2,984 | 4,789 | 1,928 | 2,452 | 22,855 | 12,153 | 10,883 |
Net income | $ 9,956 | $ 12,817 | $ 7,679 | $ 12,018 | $ 6,052 | $ 9,128 | $ 3,661 | $ 4,205 | $ 42,470 | $ 23,046 | $ 20,322 |
Basic earnings per share (in dollars per share) | $ 0.31 | $ 0.40 | $ 0.24 | $ 0.38 | $ 0.22 | $ 0.36 | $ 0.16 | $ 0.25 | $ 1.32 | $ 1 | $ 1.22 |
Diluted earnings per share (in dollars per share) | $ 0.30 | $ 0.39 | $ 0.23 | $ 0.36 | $ 0.22 | $ 0.35 | $ 0.16 | $ 0.25 | $ 1.28 | $ 0.98 | $ 1.21 |