Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-11713 | |
Entity Registrant Name | OceanFirst Financial Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3412577 | |
Entity Address, Address Line One | 110 West Front Street, | |
Entity Address, City or Town | Red Bank, | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07701 | |
City Area Code | 732 | |
Local Phone Number | 240-4500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,378,120 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001004702 | |
Current Fiscal Year End Date | --12-31 | |
Common stock, $0.01 par value per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | OCFC | |
Security Exchange Name | NASDAQ | |
Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock) | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock) | |
Trading Symbol | OCFCP | |
Security Exchange Name | NASDAQ |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 980,870 | $ 120,544 |
Debt securities available-for-sale, at estimated fair value | 169,634 | 150,960 |
Debt securities held-to-maturity, net of allowance for credit losses of $2,393 at September 30, 2020 (estimated fair value of $902,418 at September 30, 2020 and $777,290 at December 31, 2019) | 871,688 | 768,873 |
Equity investments, at estimated fair value | 63,846 | 10,136 |
Restricted equity investments, at cost | 67,505 | 62,356 |
Loans receivable, net of allowance for credit losses of $56,350 at September 30, 2020 and $16,852 at December 31, 2019 | 7,943,390 | 6,207,680 |
Loans held-for-sale | 388,763 | 0 |
Interest and dividends receivable | 40,671 | 21,674 |
Other real estate owned | 106 | 264 |
Premises and equipment, net | 103,249 | 102,691 |
Bank owned life insurance | 264,167 | 237,411 |
Assets held for sale | 6,717 | 3,785 |
Goodwill | 500,849 | 374,632 |
Core deposit intangible | 25,194 | 15,607 |
Other assets | 224,648 | 169,532 |
Total assets | 11,651,297 | 8,246,145 |
Liabilities and Stockholders’ Equity | ||
Deposits | 9,283,288 | 6,328,777 |
Federal Home Loan Bank advances | 343,452 | 519,260 |
Securities sold under agreements to repurchase with retail customers | 142,823 | 71,739 |
Other borrowings | 246,941 | 96,801 |
Advances by borrowers for taxes and insurance | 20,104 | 13,884 |
Other liabilities | 152,975 | 62,565 |
Total liabilities | 10,189,583 | 7,093,026 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, and 57,370 shares issued at September 30, 2020 and no shares issued at December 31, 2019 | 1 | 0 |
Common stock, $.01 par value, 150,000,000 shares authorized, 61,026,971 shares issued and 60,378,120 and 50,405,048 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 609 | 519 |
Additional paid-in capital | 1,137,155 | 840,691 |
Retained earnings | 356,397 | 358,668 |
Accumulated other comprehensive income (loss) | 940 | (1,208) |
Less: Unallocated common stock held by Employee Stock Ownership Plan | (7,737) | (8,648) |
Treasury stock, 648,851 and 1,586,808 shares at September 30, 2020 and December 31, 2019, respectively | (25,651) | (36,903) |
Total stockholders’ equity | 1,461,714 | 1,153,119 |
Total liabilities and stockholders’ equity | $ 11,651,297 | $ 8,246,145 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Debt securities, held to maturity, allowance for credit losses | $ 2,393 | $ 0 |
Debt securities, held to maturity, fair value | 902,418 | 777,290 |
Loan receivable, allowance for credit losses | $ 56,350 | $ 16,852 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 57,370 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (shares) | 61,026,971 | 61,026,971 |
Common stock, shares outstanding (shares) | 60,378,120 | 50,405,048 |
Treasury stock, shares (shares) | 648,851 | 1,586,808 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income | ||||
Loans | $ 85,933 | $ 69,715 | $ 264,224 | $ 209,633 |
Mortgage-backed securities | 3,212 | 3,761 | 10,649 | 11,748 |
Debt securities, equity investments and other | 3,817 | 3,411 | 12,173 | 10,338 |
Total interest income | 92,962 | 76,887 | 287,046 | 231,719 |
Interest expense | ||||
Deposits | 11,370 | 9,817 | 37,611 | 28,218 |
Borrowed funds | 4,804 | 3,678 | 14,335 | 10,884 |
Total interest expense | 16,174 | 13,495 | 51,946 | 39,102 |
Net interest income | 76,788 | 63,392 | 235,100 | 192,617 |
Credit loss expense | 35,714 | 305 | 55,332 | 1,281 |
Net interest income after credit loss expense | 41,074 | 63,087 | 179,768 | 191,336 |
Other income | ||||
Bankcard services revenue | 3,097 | 2,658 | 8,319 | 7,622 |
Net gain on sales of loans | 1,001 | 0 | 1,930 | 15 |
Net (loss) gain on equity investments | (3,576) | 89 | (3,273) | 330 |
Net gain (loss) from other real estate operations | 214 | (108) | 12 | (235) |
Income from bank owned life insurance | 1,530 | 1,431 | 4,626 | 4,045 |
Commercial loan swap income | 1,425 | 2,138 | 7,964 | 3,223 |
Other | 266 | 99 | 310 | 520 |
Total other income | 8,179 | 11,543 | 33,306 | 30,934 |
Operating expenses | ||||
Compensation and employee benefits | 29,012 | 21,276 | 86,832 | 67,394 |
Occupancy | 5,270 | 4,159 | 15,814 | 13,088 |
Equipment | 1,906 | 2,062 | 5,831 | 5,944 |
Marketing | 963 | 562 | 2,485 | 2,629 |
Federal deposit insurance and regulatory assessments | 1,212 | 297 | 3,012 | 1,931 |
Data processing | 4,517 | 3,398 | 12,843 | 10,736 |
Check card processing | 1,385 | 1,639 | 3,951 | 4,399 |
Professional fees | 3,354 | 2,580 | 8,339 | 5,697 |
Other operating expense | 3,644 | 3,902 | 12,708 | 11,153 |
Amortization of core deposit intangible | 1,538 | 1,009 | 4,660 | 3,029 |
Branch consolidation expense | 830 | 1,696 | 4,287 | 8,782 |
Merger related expenses | 3,156 | 777 | 14,753 | 6,761 |
Total operating expenses | 56,787 | 43,357 | 175,515 | 141,543 |
(Loss) income before (benefit) provision for income taxes | (7,534) | 31,273 | 37,559 | 80,727 |
(Benefit) provision for income taxes | (2,608) | 6,302 | 7,314 | 15,603 |
Net (loss) income | (4,926) | 24,971 | 30,245 | 65,124 |
Dividends on preferred shares | 1,093 | 0 | 1,093 | 0 |
Net (loss) income available to common stockholders | $ (6,019) | $ 24,971 | $ 29,152 | $ 65,124 |
Basic (loss) earnings per share (in dollars per share) | $ (0.10) | $ 0.50 | $ 0.49 | $ 1.30 |
Diluted (loss) earnings per share (in dollars per share) | $ (0.10) | $ 0.49 | $ 0.49 | $ 1.28 |
Average basic shares outstanding (in shares) | 59,935 | 50,491 | 59,901 | 50,242 |
Average diluted shares outstanding (in shares) | 59,935 | 50,966 | 60,076 | 50,830 |
Trust and asset management revenue | ||||
Other income | ||||
Other income | $ 490 | $ 557 | $ 1,560 | $ 1,624 |
Fees and service charges | ||||
Other income | ||||
Other income | $ 3,732 | $ 4,679 | $ 11,858 | $ 13,790 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (4,926) | $ 24,971 | $ 30,245 | $ 65,124 |
Other comprehensive income | ||||
Unrealized (loss) gain on debt securities (net of tax benefit of $105 and tax expense of $604 in 2020, and net of tax expense of $55 and $489 in 2019, respectively) | (461) | 164 | 1,644 | 1,723 |
Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $75 and $235 in 2020, and net of tax expense of $86 and $257 in 2019, respectively) | 108 | 124 | 336 | 372 |
Reclassification adjustment for gains included in net income (net of tax expense of $45 and $45 in 2020 and $0 in 2019) | 168 | 0 | 168 | 0 |
Other comprehensive income, net of tax | (185) | 288 | 2,148 | 2,095 |
Total comprehensive (loss) income | (5,111) | 25,259 | 32,393 | 67,219 |
Dividends on preferred shares | 1,093 | 0 | 1,093 | 0 |
Comprehensive (loss) income available to common stockholders | $ (6,204) | $ 25,259 | $ 31,300 | $ 67,219 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain on securities, tax expense (benefit) | $ 105 | $ 55 | $ 604 | $ 489 |
Accretion of unrealized loss on securities reclassified to held-to-maturity, tax expense | 75 | 86 | 235 | 257 |
Reclassification adjustment for gains included in net income, tax expense | $ 45 | $ 0 | $ 45 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Employee Stock Ownership Plan | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Capital Bank of New Jersey | Capital Bank of New JerseyCommon Stock | Capital Bank of New JerseyAdditional Paid-In Capital | Two River Bancorp Inc. | Two River Bancorp Inc.Common Stock | Two River Bancorp Inc.Additional Paid-In Capital | Two River Bancorp Inc.Treasury Stock | Country Bank Holding Company, Inc | Country Bank Holding Company, IncCommon Stock | Country Bank Holding Company, IncAdditional Paid-In Capital | Cumulative Effect, Period Of Adoption, Adjustment | Cumulative Effect, Period Of Adoption, AdjustmentRetained Earnings |
Beginning Balance at Dec. 31, 2018 | $ 1,039,358 | $ (9,857) | $ 0 | $ 483 | $ 757,963 | $ 305,056 | $ (3,450) | $ (10,837) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net (loss) income | 65,124 | 65,124 | ||||||||||||||||||
Other comprehensive income, net of tax | 2,095 | 2,095 | ||||||||||||||||||
Stock awards | 3,140 | 2 | 3,138 | |||||||||||||||||
Allocation of ESOP stock | 1,182 | 907 | 275 | |||||||||||||||||
Cash dividend per share | (25,943) | (25,943) | ||||||||||||||||||
Exercise of stock options | 1,145 | 2 | 1,751 | (608) | ||||||||||||||||
Purchase of shares of common stock | (18,054) | (18,054) | ||||||||||||||||||
Acquisition, value | $ 76,481 | $ 32 | $ 76,449 | |||||||||||||||||
Ending Balance at Sep. 30, 2019 | 1,144,528 | (8,950) | 0 | 519 | 839,576 | 343,629 | (1,355) | (28,891) | ||||||||||||
Beginning Balance at Dec. 31, 2018 | 1,039,358 | (9,857) | 0 | 483 | 757,963 | 305,056 | (3,450) | (10,837) | ||||||||||||
Ending Balance at Dec. 31, 2019 | $ 1,153,119 | (8,648) | 0 | 519 | 840,691 | 358,668 | (1,208) | (36,903) | $ (4) | $ (4) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||||||||
Beginning Balance at Jun. 30, 2019 | $ 1,137,295 | (9,252) | 0 | 518 | 838,610 | 327,297 | (1,643) | (18,235) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net (loss) income | 24,971 | 24,971 | ||||||||||||||||||
Other comprehensive income, net of tax | 288 | 288 | ||||||||||||||||||
Stock awards | 538 | 538 | ||||||||||||||||||
Allocation of ESOP stock | 381 | 302 | 79 | |||||||||||||||||
Cash dividend per share | (8,639) | (8,639) | ||||||||||||||||||
Exercise of stock options | 350 | 1 | 349 | 0 | ||||||||||||||||
Purchase of shares of common stock | (10,656) | (10,656) | ||||||||||||||||||
Ending Balance at Sep. 30, 2019 | 1,144,528 | (8,950) | 0 | 519 | 839,576 | 343,629 | (1,355) | (28,891) | ||||||||||||
Beginning Balance at Dec. 31, 2019 | 1,153,119 | (8,648) | 0 | 519 | 840,691 | 358,668 | (1,208) | (36,903) | $ (4) | $ (4) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net (loss) income | 30,245 | 30,245 | ||||||||||||||||||
Other comprehensive income, net of tax | 2,148 | 2,148 | ||||||||||||||||||
Stock awards | 3,729 | 2 | 3,727 | |||||||||||||||||
Allocation of ESOP stock | 866 | 911 | (45) | |||||||||||||||||
Cash dividend per share | (30,630) | (30,630) | ||||||||||||||||||
Exercise of stock options | 1,174 | 2 | 1,961 | (789) | ||||||||||||||||
Purchase of shares of common stock | (14,814) | 0 | (14,814) | |||||||||||||||||
Proceeds from preferred stock issuance, net of costs | 55,529 | 1 | 55,528 | |||||||||||||||||
Preferred stock dividend | (1,093) | (1,093) | ||||||||||||||||||
Acquisition, value | $ 148,609 | $ 42 | $ 122,501 | $ 26,066 | $ 112,836 | $ 44 | $ 112,792 | |||||||||||||
Ending Balance at Sep. 30, 2020 | 1,461,714 | (7,737) | 1 | 609 | 1,137,155 | 356,397 | 940 | (25,651) | ||||||||||||
Beginning Balance at Jun. 30, 2020 | 1,476,434 | (8,041) | 1 | 609 | 1,135,839 | 372,552 | 1,125 | (25,651) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net (loss) income | (4,926) | (4,926) | ||||||||||||||||||
Other comprehensive income, net of tax | (185) | (185) | ||||||||||||||||||
Stock awards | 1,250 | 1,250 | ||||||||||||||||||
Allocation of ESOP stock | 258 | 304 | (46) | |||||||||||||||||
Cash dividend per share | (10,136) | (10,136) | ||||||||||||||||||
Exercise of stock options | 296 | 296 | ||||||||||||||||||
Proceeds from preferred stock issuance, net of costs | (184) | (184) | ||||||||||||||||||
Preferred stock dividend | (1,093) | (1,093) | ||||||||||||||||||
Ending Balance at Sep. 30, 2020 | $ 1,461,714 | $ (7,737) | $ 1 | $ 609 | $ 1,137,155 | $ 356,397 | $ 940 | $ (25,651) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Retained Earnings | ||||
Cash dividend per share (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.51 | $ 0.51 |
Treasury Stock | ||||
Purchase of common stock (in shares) | 477,400 | 648,851 | 786,567 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ 30,245 | $ 65,124 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of premises and equipment | 6,291 | 6,448 |
Allocation of ESOP stock | 866 | 1,182 |
Stock awards | 3,729 | 3,140 |
Net excess tax benefit on stock compensation | 123 | (243) |
Amortization of servicing asset | 65 | 33 |
Net premium amortization in excess of discount accretion on securities | 2,126 | 2,387 |
Net amortization of deferred costs on borrowings | 355 | 161 |
Amortization of core deposit intangible | 4,660 | 3,029 |
Net accretion of purchase accounting adjustments | (15,802) | (10,588) |
Net amortization of deferred costs and discounts on loans | 1,135 | 1,028 |
Provision for credit losses | 55,332 | 1,281 |
Net (gain) loss on sale and write-down of other real estate owned | (101) | 20 |
Net loss on sale and write down of fixed assets held-for-sale to net realizable value | 4,193 | 7,289 |
Net loss (gain) on sale of fixed assets | 6 | (27) |
Net unrealized loss (gain) on equity securities | 3,220 | (330) |
Net gain on sales of loans | (1,930) | (15) |
Proceeds from sales of mortgage loans held for sale | 113,708 | 912 |
Mortgage loans originated for sale | (134,907) | (1,007) |
Increase in value of bank owned life insurance | (4,626) | (4,045) |
Net loss on sale of assets held for sale | 0 | 5 |
Increase in interest and dividends receivable | (14,836) | (462) |
Deferred tax provision | 99 | 336 |
Decrease (increase) in other assets | 2,301 | (27,786) |
Increase in other liabilities | 71,285 | 34,110 |
Total adjustments | 97,292 | 16,858 |
Net cash provided by operating activities | 127,537 | 81,982 |
Cash flows from investing activities | ||
Net increase in loans receivable | (654,461) | (92,658) |
Proceeds from sale of loans | 71,604 | 5,901 |
Purchase of loans receivable | 0 | (101,674) |
Purchase of debt investment securities available-for-sale | (57,487) | (35,106) |
Purchase of debt investment securities held-to-maturity | (651) | (3,577) |
Payments to Acquire Mortgage Backed Securities (MBS) categorized as Held-to-maturity | (78,464) | 0 |
Purchase of equity investments | (53,726) | (160) |
Proceeds from sale of equity investments | 891 | 0 |
Proceeds from maturities and calls of debt investment securities available-for-sale | 41,101 | 28,447 |
Proceeds from maturities and calls of debt investment securities held-to-maturity | 41,583 | 25,547 |
Proceeds from sales of debt investment securities available-for-sale | 5,869 | 0 |
Principal repayments on debt mortgage-backed securities available-for-sale | 256 | 0 |
Proceeds from bank owned life insurance | 310 | 716 |
Proceeds from the redemption of restricted equity investments | 62,354 | 85,894 |
Purchases of restricted equity investments | (59,489) | (90,892) |
Proceeds from sales of other real estate owned | 713 | 2,060 |
Proceeds from sales of assets held-for-sale | 0 | 412 |
Purchases of premises and equipment | (9,014) | (3,245) |
Net cash consideration received for acquisition | 23,460 | 59,395 |
Net cash used in investing activities | (536,468) | (28,324) |
Cash flows from financing activities | ||
Increase (decrease) in deposits | 1,362,996 | (42,306) |
(Decrease) increase in short-term borrowings | (211,649) | 107,307 |
Proceeds from Federal Home Loan Bank advances | 525,000 | 35,000 |
Repayments of Federal Home Loan Bank advances | (496,200) | (76,618) |
Proceeds from Federal Reserve Bank advances | 3,778 | 0 |
Net proceeds from issuance of subordinated notes | 122,180 | 0 |
Repayments of other borrowings | (80) | (216) |
Increase in advances by borrowers for taxes and insurance | 5 | 2,164 |
Exercise of stock options | 1,174 | 1,145 |
Payment of employee taxes withheld from stock awards | (2,084) | (2,786) |
Purchase of treasury stock | (14,814) | (18,054) |
Net proceeds from the issuance of preferred stock | 55,529 | 0 |
Dividends paid | (31,723) | (25,943) |
Net cash provided by (used in) financing activities | 1,314,112 | (20,307) |
Net increase in cash and due from banks and restricted cash | 905,181 | 33,351 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash and due from banks and restricted cash at beginning of period | 133,226 | 122,328 |
Cash and due from banks at beginning of period | 120,544 | 120,792 |
Restricted cash at beginning of period | 12,682 | 1,536 |
Cash and due from banks at end of period | 980,870 | 140,901 |
Restricted cash at end of period | 57,537 | 14,778 |
Cash and due from banks and restricted cash at end of period | 1,038,407 | 155,679 |
Cash paid during the period for | ||
Interest | 51,494 | 39,293 |
Income taxes | 5,232 | 16,506 |
Accretion of unrealized loss on securities reclassified to held-to-maturity | 570 | 629 |
Net loan charge-offs | 15,917 | 1,222 |
Transfer of premises and equipment to assets held-for-sale | 4,043 | 1,607 |
Transfer of loans receivable to loans held-for-sale | 365,634 | 0 |
Transfer of loans receivable to other real estate owned | 106 | 993 |
Non-cash assets acquired | ||
Securities | 208,880 | 103,775 |
Restricted equity investments | 5,334 | 313 |
Loans | 1,558,480 | 307,778 |
Premises and equipment | 9,744 | 3,389 |
Accrued interest receivable | 4,161 | 1,390 |
Bank owned life insurance | 22,440 | 10,460 |
Deferred tax asset | (509) | 3,829 |
Other assets | 10,073 | 1,405 |
Goodwill and other intangible assets, net | 140,031 | 38,780 |
Total non-cash assets acquired | 1,958,634 | 471,119 |
Liabilities assumed: | ||
Deposits | 1,594,403 | 449,018 |
Borrowings | 92,618 | 0 |
Other liabilities | 33,628 | 5,015 |
Total liabilities assumed | 1,720,649 | 454,033 |
Debt Securities | ||
Cash flows from investing activities | ||
Principal repayments on debt | 857 | 1,334 |
Mortgage-backed Securities Held-to-Maturity | ||
Cash flows from investing activities | ||
Principal repayments on debt | $ 127,826 | $ 89,282 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of OceanFirst Financial Corp. (the “Company”) and its wholly-owned subsidiaries, OceanFirst Bank N.A. (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 Hooper Holdings, LLC., TRREO Holdings LLC, Casaba Real Estate Holdings Corporation, Cohensey Bridge, L.L.C., Prosperis Financial, LLC, CBNJ Investments Corp., Country Property Holdings, Inc., and TRCB Investment Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. The interim consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results of operations that may be expected for the full year 2020. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and the results of operations for the period. Actual results could differ from these estimates. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments (Topic 326).” This ASU significantly changed how entities measure credit losses for financial assets and certain other instruments that are measured at amortized cost. The standard replaced the “incurred loss” approach with an “expected loss” model, which necessitates a forecast of lifetime losses. The new model, referred to as the CECL model, applies 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. The ASU simplifies the accounting model for purchased credit-impaired debt securities and loans. The standard’s provisions are to be applied 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 adopted ASU 2016-13 As allowed by ASC 326, the Company elected not to maintain pools of loans accounted for under ASC 310-30. At December 31, 2019, purchase credit impaired (“PCI”) loans totaled $13.3 million. In accordance with the standard, management did not reassess whether modifications individually acquired financial assets accounted for in pools were troubled debt restructured loans as of the date of adoption. Upon adoption, the Company’s PCI loans were converted to PCD loans as defined by ASC 326. The transition adjustment for the PCI loans to PCD loans resulted in a reclassification of $3.2 million from the specific credit fair value adjustment to the allowance for credit losses on loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. At September 30, 2020, the Company utilized the September 15, 2020 forecast, from Oxford Economics, the most recent forecast available as of quarter end, to provide the macroeconomic forecasts for select variables. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. 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. The adoption of this update did not have an impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU updates the disclosure requirements on Fair Value measurements by 1) removing: the disclosures for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements; 2) modifying: disclosures for timing of liquidation of an investee’s assets and disclosures for uncertainty in measurement as of reporting date; and 3) adding: disclosures for changes in unrealized gains and losses included in other comprehensive income for recurring level 3 fair value measurements and disclosures for the range and weighted average of the significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted to any removed or modified disclosures and delay adoption of additional disclosures until the effective date. With the exception of the following, which should be applied prospectively, disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement, all other changes should be applied retrospectively to all periods presented upon the effective date. The adoption of this update did not have an impact on the Company’s consolidated financial statements. Refer to Note 7 Fair Value Measurements, for additional information. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Capital Bank of New Jersey Acquisition On January 31, 2019, the Company completed its acquisition of Capital Bank of New Jersey (“Capital Bank”), which after purchase accounting adjustments added $494.4 million to assets, $307.3 million to loans, and $449.0 million to deposits. Total consideration paid for Capital Bank was $76.8 million, including cash consideration of $353,000. Capital Bank was merged with and into the Bank 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 fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Capital Bank, net of total consideration paid (in thousands): At January 31, 2019 Fair Value Total purchase price: $ 76,834 Assets acquired: Cash and cash equivalents $ 59,748 Securities 103,775 Loans 307,300 Accrued interest receivable 1,390 Bank owned life insurance 10,460 Deferred tax asset 4,101 Other assets 4,980 Core deposit intangible 2,662 Total assets acquired 494,416 Liabilities assumed: Deposits (449,018) Other liabilities (5,210) Total liabilities assumed (454,228) Net assets acquired $ 40,188 Goodwill recorded in the merger $ 36,646 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 January 31, 2020, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. Two River Bancorp Acquisition On January 1, 2020, the Company completed its acquisition of Two River Bancorp (“Two River”), which after purchase accounting adjustments added $1.11 billion to assets, $940.1 million to loans, and $941.8 million to deposits. Total consideration paid for Two River was $197.1 million, including cash consideration of $48.4 million. Two River 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 Two River, net of total consideration paid (in thousands): At January 1, 2020 Estimated Total purchase price: $ 197,050 Assets acquired: Cash and cash equivalents $ 51,102 Securities 64,381 Loans 940,072 Accrued interest receivable 2,382 Bank owned life insurance 22,440 Deferred tax asset 3,578 Other assets 15,956 Core deposit intangible 12,130 Total assets acquired 1,112,041 Liabilities assumed: Deposits (941,750) Other liabilities (59,006) Total liabilities assumed (1,000,756) Net assets acquired $ 111,285 Goodwill recorded in the merger $ 85,765 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. As the Company finalizes its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values may be required. Country Bank Holding Company, Inc. Acquisition On January 1, 2020, the Company completed its acquisition of Country Bank Holding Company, Inc. (“Country Bank”), which after purchase accounting adjustments added $792.7 million to assets, $618.4 million to loans, and $652.7 million to deposits. Total consideration paid for Country Bank was $112.8 million. Country Bank 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 Country Bank, net of total consideration paid (in thousands): At January 1, 2020 Estimated Total purchase price: $ 112,836 Assets acquired: Cash and cash equivalents $ 20,799 Securities 144,499 Loans 618,408 Accrued interest receivable 1,779 Deferred tax asset (4,087) Other assets 9,195 Core deposit intangible 2,117 Total assets acquired 792,710 Liabilities assumed: Deposits (652,653) Other liabilities (67,240) Total liabilities assumed (719,893) Net assets acquired $ 72,817 Goodwill recorded in the merger $ 40,019 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. As the Company finalizes its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values may be required. Supplemental Pro Forma Financial Information The following table presents financial information regarding the former Two River and Country Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 1, 2020) through September 30, 2020. The table also presents financial information regarding the former Capital Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 31, 2019) through September 30, 2020. In addition, the table provides unaudited condensed pro forma financial information assuming the Two River, Country Bank, and Capital Bank acquisitions had been completed as of January 1, 2019 for the nine months ended September 30, 2019. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain accounting policies of the acquired company to the Company’s policies that may have occurred as a result of the integration and consolidation of Two River, Country Bank, and Capital Bank’s operations. The pro forma information shown reflects adjustments related to certain purchase accounting fair value adjustments; amortization of core deposit and other intangibles; and related income tax effects. (in thousands) Two River Country Bank Actual for Capital Bank Pro Forma Net interest income $ 31,354 $ 20,456 $ 12,700 $ 247,550 Credit loss expense 6,471 4,398 280 2,211 Non-interest income 1,886 408 991 35,010 Non-interest expense 23,422 14,470 11,035 176,294 Provision for income taxes 809 482 499 20,233 Net income $ 2,538 $ 1,514 $ 1,877 $ 83,822 Fully diluted earnings per share $ 1.36 Fair Value Measurement of Assets Assumed and Liabilities Assumed The methods used to determine the fair value of the assets acquired and liabilities assumed in the Capital Bank, Two River and Country Bank acquisitions were as follows. Refer to Note 7, 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 using an average of historical losses of the acquired bank or historical loss experiences of peer groups where deemed appropriate. 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, subsequent to January 1, 2020, the Company identified loans that have experienced more-than-insignificant deterioration in credit quality since origination. 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, Capital Bank, Two River and Country Bank operated one, 14, and five properties, respectively, 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. The core deposit premium totaled $2.7 million, $12.1 million, and $2.1 million, for the acquisitions of Capital Bank, Two River, and Country Bank, 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. |
Earnings_(Loss) per Share
Earnings/(Loss) per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) per Share | Earnings/(Loss) per Share The following reconciles shares outstanding for basic and diluted earnings/(loss) per share for the three and nine months ended September 30, 2020 and September 30, 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Weighted average shares outstanding 60,363 51,039 60,349 50,792 Less: Unallocated ESOP shares (418) (484) (435) (501) Unallocated incentive award shares and shares held by deferred compensation plan (10) (64) (13) (49) Average basic shares outstanding 59,935 50,491 59,901 50,242 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan — 475 175 588 Average diluted shares outstanding 59,935 50,966 60,076 50,830 For the three and nine months ended September 30, 2020, antidilutive stock options of 2,251,000 and 2,067,000, respectively, were excluded from earnings/(loss) per share calculations. For the three and nine months ended September 30, 2019, antidilutive stock options of 997,000 and 993,000, respectively, were excluded from earnings/(loss) per share calculations. For the three months ended September 30, 2020, 87,000 shares related to incentive awards and shares held by deferred compensation plan were excluded from the diluted earnings/(loss) per share calculation as they were antidilutive. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost, estimated fair value, and allowance for credit losses of debt securities available-for-sale and held-to-maturity at September 30, 2020, and December 31, 2019, are as follows (in thousands): Amortized Gross Gross Estimated Allowance for Credit Losses At September 30, 2020 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 158,778 $ 3,653 $ (3) $ 162,428 $ — State and municipal obligations 2,402 — — 2,402 — Corporate debt securities 4,500 61 — 4,561 — Total investment securities 165,680 3,714 (3) 169,391 — Mortgage-backed securities - FNMA 240 3 — 243 — Total debt securities available-for-sale $ 165,920 $ 3,717 $ (3) $ 169,634 $ — Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 4,997 $ 14 $ — $ 5,011 $ — State and municipal obligations 214,865 9,375 (225) 224,015 (33) Corporate debt securities 72,289 1,700 (3,867) 70,122 (1,579) Total investment securities 292,151 11,089 (4,092) 299,148 (1,612) Mortgage-backed securities: FHLMC 202,329 6,093 (135) 208,287 — FNMA 245,524 7,799 (141) 253,182 — GNMA 82,230 2,457 (16) 84,671 — SBA 5,634 — (60) 5,574 — CMO 49,745 1,811 — 51,556 (781) Total mortgage-backed securities 585,462 18,160 (352) 603,270 (781) Total debt securities held-to-maturity $ 877,613 $ 29,249 $ (4,444) $ 902,418 $ (2,393) Total debt securities $ 1,043,533 $ 32,966 $ (4,447) $ 1,072,052 $ (2,393) There was no allowance for credit losses on debt securities available-for-sale at September 30, 2020. Amortized Gross Gross Estimated At December 31, 2019 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 149,120 $ 1,408 $ (93) $ 150,435 State and municipal obligations 25 — — 25 Total investment securities 149,145 1,408 (93) 150,460 Mortgage-backed securities - FNMA 495 5 — 500 Total debt securities available-for-sale $ 149,640 $ 1,413 $ (93) $ 150,960 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 4,984 $ 14 $ — $ 4,998 State and municipal obligations 124,430 1,537 (208) 125,759 Corporate debt securities 79,547 833 (2,421) 77,959 Total investment securities 208,961 2,384 (2,629) 208,716 Mortgage-backed securities: FHLMC 206,985 2,221 (524) 208,682 FNMA 244,428 2,680 (493) 246,615 GNMA 110,661 939 (212) 111,388 SBA 1,940 — (51) 1,889 Total mortgage-backed securities 564,014 5,840 (1,280) 568,574 Total debt securities held-to-maturity $ 772,975 $ 8,224 $ (3,909) $ 777,290 Total debt securities $ 922,615 $ 9,637 $ (4,002) $ 928,250 The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the nine months ended September 30, 2020 (in thousands): Investment securities Mortgage-backed securities Allowance for credit losses Beginning balance $ — $ — Impact of CECL adoption (1,268) — Provision for credit loss expense (344) (781) Total ending allowance balance $ (1,612) $ (781) 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 debt securities held-to-maturity at September 30, 2020, and December 31, 2019, is as follows (in thousands): September 30, 2020 December 31, 2019 Amortized cost $ 877,613 $ 772,975 Net loss on date of transfer from available-for-sale (13,347) (13,347) Allowance for credit loss (2,393) — Accretion of net unrealized loss on securities reclassified as held-to-maturity 9,815 9,245 Carrying value $ 871,688 $ 768,873 During the three and nine months ended September 30, 2020 there were $244,000 of realized gains on debt securities. There were no realized gains or losses on debt securities for the three and nine months ended September 30, 2019. During the three and nine months ended September 30, 2020, there were $0 and $53,000, respectively, of realized losses on equity securities. There were no realized gains or losses on equity securities in the three and nine months ended September 30, 2019. The realized and unrealized gains or losses on equity securities for the three and nine months ended September 30, 2020 and September 30, 2019 are shown in the table below (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net (loss) gain on equity investments $ (3,576) $ 89 $ (3,273) $ 330 Less: Net losses recognized on equity securities sold — — (53) — Unrealized (loss) gain recognized on equity securities still held $ (3,576) $ 89 $ (3,220) $ 330 The amortized cost and estimated fair value of investment securities at September 30, 2020 by contractual maturity are shown below (in thousands). Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2020, corporate debt securities with an amortized cost of $38.5 million and estimated fair value of $39.8 million were callable prior to the maturity date. September 30, 2020 Amortized Estimated Less than one year $ 95,990 $ 96,765 Due after one year through five years 180,827 186,965 Due after five years through ten years 78,064 75,630 Due after ten years 102,950 109,180 $ 457,831 $ 468,540 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 amounted to $456.6 million and $475.6 million, at September 30, 2020 and December 31, 2019, respectively, which includes $148.1 million and $81.4 million at September 30, 2020 and December 31, 2019, respectively, pledged as collateral for securities sold under agreements to repurchase. At September 30, 2020, there were no holdings of securities of any one issuer, other than the US government and its agencies, in an amount greater than 10% of stockholders’ equity. The estimated fair value and unrealized losses of debt securities available-for-sale and held-to-maturity at September 30, 2020 and December 31, 2019, segregated by the duration of the unrealized losses, are as follows (in thousands): At September 30, 2020 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 17,060 $ (3) $ — $ — $ 17,060 $ (3) Total debt securities available-for-sale 17,060 (3) — — 17,060 (3) Debt securities held-to-maturity: Investment securities: State and municipal obligations $ 3,635 $ (42) $ 7,383 $ (183) $ 11,018 $ (225) Corporate debt securities 9,429 (434) 34,899 (3,433) 44,328 (3,867) Total investment securities 13,064 (476) 42,282 (3,616) 55,346 (4,092) Mortgage-backed securities: FHLMC 31,267 (127) 965 (8) 32,232 (135) FNMA 39,572 (127) 485 (14) 40,057 (141) GNMA 6,008 (14) 228 (2) 6,236 (16) SBA 3,850 (11) 1,724 (49) 5,574 (60) CMO — — — — — — Total mortgage-backed securities 80,697 (279) 3,402 (73) 84,099 (352) Total debt securities held-to-maturity 93,761 (755) 45,684 (3,689) 139,445 (4,444) Total debt securities $ 110,821 $ (758) $ 45,684 $ (3,689) $ 156,505 $ (4,447) At December 31, 2019 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 25,021 $ (54) $ 22,451 $ (39) $ 47,472 $ (93) Total debt securities available-for-sale 25,021 (54) 22,451 (39) 47,472 (93) Debt securities held-to-maturity: Investment securities: State and municipal obligations 7,308 (58) 14,531 (150) 21,839 (208) Corporate debt securities 9,727 (213) 37,628 (2,208) 47,355 (2,421) Total investment securities 17,035 (271) 52,159 (2,358) 69,194 (2,629) Mortgage-backed securities: FHLMC 6,329 (29) 38,641 (495) 44,970 (524) FNMA 13,682 (59) 38,568 (434) 52,250 (493) GNMA 30,268 (93) 19,828 (119) 50,096 (212) SBA — — 1,889 (51) 1,889 (51) Total mortgage-backed securities 50,279 (181) 98,926 (1,099) 149,205 (1,280) Total debt securities held-to-maturity 67,314 (452) 151,085 (3,457) 218,399 (3,909) Total debt securities $ 92,335 $ (506) $ 173,536 $ (3,496) $ 265,871 $ (4,002) At September 30, 2020, 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): Security Description Amortized Estimated Credit Rating Chase Capital $ 10,000 $ 9,205 Baa1/BBB- Wells Fargo Capital 5,000 4,495 A1/BBB- Huntington Capital 5,000 4,432 Baa2/BB+ Keycorp Capital 5,000 4,513 Baa2/BB+ PNC Capital 5,000 4,577 Baa1/BBB- SunTrust Capital 5,000 4,670 Not Rated/BBB- State Street Capital 3,332 3,007 A3/BBB $ 38,332 $ 34,899 At September 30, 2020, 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 September 30, 2020. 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 intend 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. Additionally, there are private label commercial mortgage-backed securities with credit ratings from multiple credit rating services ranging between Aaa and Aa2. The Company considers the unrealized losses to be the result of changes in interest rates, and not credit quality, 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 September 30, 2020. The Company monitors the credit quality of debt securities held-to-maturity on a quarterly basis through the use of credit ratings. The following table summarized the amortized cost of debt securities held-to-maturity at September 30, 2020, aggregated by credit quality indicator (in thousands): AAA AA A BBB BB Total As of September 30, 2020 Investment securities: U.S. government and agency obligations $ — $ 4,997 $ — $ — $ — $ 4,997 State and municipal obligations 35,280 128,128 46,390 5,067 — 214,865 Corporate debt securities — 1,495 11,960 47,502 11,332 72,289 Total investment securities 35,280 134,620 58,350 52,569 11,332 292,151 Mortgage-backed securities: CMO 16,909 32,836 — — — 49,745 Total mortgage-backed securities 16,909 32,836 — — — 49,745 Total debt securities held-to-maturity $ 52,189 $ 167,456 $ 58,350 $ 52,569 $ 11,332 $ 341,896 A debt security is considered to be past due once it is 30 days past due under the terms of the agreement. At September 30, 2020, there were no debt securities that were past due, on non-accrual, or past due over 89 days and still accruing. |
Loans Receivable, Net
Loans Receivable, Net | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans Receivable, Net | Loans Receivable, Net Loans receivable, net at September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Commercial: Commercial and industrial $ 599,188 $ 396,434 Commercial real estate – owner occupied 1,176,529 792,653 Commercial real estate – investor 3,453,276 2,296,410 Total commercial 5,228,993 3,485,497 Consumer: Residential real estate 2,407,178 2,321,157 Home equity loans and lines 301,712 318,576 Other consumer 63,095 89,422 Total consumer 2,771,985 2,729,155 Total loans 8,000,978 6,214,652 Deferred origination (fees) costs, net (1,238) 9,880 Allowance for credit losses (56,350) (16,852) Total loans, net $ 7,943,390 $ 6,207,680 The Company categorizes all 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. This includes borrowers that have been negatively affected by the pandemic but demonstrate some degree of liquidity. This liquidity may or may not be adequate to resume operations. 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. This includes borrowers whose operations were negatively affected by the pandemic and whom, in our assessment, do not have adequate liquidity available to resume operations at levels sufficient to service their current debt levels. 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. The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands): 2020 2019 2018 2017 2016 2015 and prior Revolving lines of credit Total September 30, 2020 Commercial and industrial Pass $ 238,326 $ 47,785 $ 32,607 $ 23,576 $ 38,353 $ 70,681 $ 123,071 $ 574,399 Special Mention — 629 759 1,431 892 200 2,597 6,508 Substandard 355 1,092 1,351 1,557 53 3,264 10,609 18,281 Total commercial and industrial 238,681 49,506 34,717 26,564 39,298 74,145 136,277 599,188 Commercial real estate - owner occupied Pass 78,646 125,479 132,958 136,186 117,713 466,072 10,742 1,067,796 Special Mention — 1,736 8,263 1,374 5,440 15,477 393 32,683 Substandard — 33,661 5,924 3,700 5,947 25,975 843 76,050 Total commercial real estate - owner occupied 78,646 160,876 147,145 141,260 129,100 507,524 11,978 1,176,529 Commercial real estate - investor Pass 479,468 632,528 309,128 437,510 323,544 894,433 209,485 3,286,096 Special Mention — 7,296 22,274 9,756 9,657 48,393 150 97,526 Substandard 4,311 7,673 2,058 11,251 8,129 32,523 3,709 69,654 Total commercial real estate - investor 483,779 647,497 333,460 458,517 341,330 975,349 213,344 3,453,276 Residential real estate (1) Pass 464,423 489,832 268,996 185,249 161,255 825,373 — 2,395,128 Special Mention 162 — — 1,112 — 2,891 — 4,165 Substandard — — 895 368 — 6,622 — 7,885 Total residential real estate 464,585 489,832 269,891 186,729 161,255 834,886 — 2,407,178 Consumer (1) Pass 18,711 28,994 94,536 28,558 17,947 166,364 5,003 360,113 Special Mention 90 167 — — — 328 — 585 Substandard — 225 33 — 69 3,782 — 4,109 Total consumer 18,801 29,386 94,569 28,558 18,016 170,474 5,003 364,807 Total loans $ 1,284,492 $ 1,377,097 $ 879,782 $ 841,628 $ 688,999 $ 2,562,378 $ 366,602 $ 8,000,978 (1) For residential and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. An analysis of the allowance for credit losses on loans for the three and nine months ended September 30, 2020 and September 30, 2019 is as follows (in thousands): Commercial Commercial Commercial Residential Consumer Unallocated Total For the three months ended Allowance for credit losses on loans Balance at beginning of period $ 4,979 $ 2,765 $ 8,860 $ 17,685 $ 4,220 $ — $ 38,509 Credit loss (benefit) expense (106) 5,166 30,131 (1,891) (464) — 32,836 Charge-offs (575) (2,252) (12,037) (6) (541) — (15,411) Recoveries 29 2 32 320 33 — 416 Balance at end of period $ 4,327 $ 5,681 $ 26,986 $ 16,108 $ 3,248 $ — $ 56,350 For the three months ended Allowance for credit losses on loans Balance at beginning of period $ 1,639 $ 2,868 $ 8,406 $ 1,966 $ 512 $ 744 $ 16,135 Credit loss (benefit) expense (352) 80 711 193 10 (337) 305 Charge-offs — (142) (57) (27) (127) — (353) Recoveries 49 114 292 39 55 — 549 Balance at end of period $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 For the nine months ended Allowance for credit losses on loans Balance at beginning of period $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Impact of CECL adoption 2,416 (1,109) (5,395) 3,833 2,981 (25) 2,701 Credit loss (benefit) expense (275) 6,120 34,208 10,749 (727) — 50,075 Initial allowance for credit losses on PCD loans 1,221 26 260 109 1,023 — 2,639 Charge-offs (575) (2,253) (12,062) (1,351) (723) — (16,964) Recoveries 82 4 92 766 103 — 1,047 Balance at end of period $ 4,327 $ 5,681 $ 26,986 $ 16,108 $ 3,248 $ — $ 56,350 For the nine months ended Allowance for credit losses on loans Balance at beginning of period $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Credit loss (benefit) expense (406) 1,192 26 899 185 (615) 1,281 Charge-offs — (663) (143) (1,221) (332) — (2,359) Recoveries 133 114 699 80 111 — 1,137 Balance at end of period $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. At September 30, 2020, the Company had collateral dependent loans with an amortized cost balance as follows: commercial and industrial of $3.3 million, commercial real estate - owner occupied of $12.4 million, and commercial real estate - investor of $10.3 million. In addition, the Company had residential and consumer loans collateralized by residential real estate, which are in the process of foreclosure, with an amortized cost balance of $1.7 million at September 30, 2020. The amount of foreclosed residential real estate property held by the Company was $106,000 at September 30, 2020. In accordance with ASC 310, prior to the adoption of ASU 2016-13, the following table presents the balance in the allowance for credit losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019, excluding PCD loans (in thousands): Commercial Commercial Commercial Residential Consumer Unallocated Total December 31, 2019 Allowance for credit losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ 474 $ — $ — $ 2 $ — $ 476 Collectively evaluated for impairment 1,458 2,419 9,883 2,002 589 25 16,376 Total ending allowance balance $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Loans: Loans individually evaluated for impairment $ 243 $ 6,163 $ 5,584 $ 11,009 $ 3,511 $ — $ 26,510 Loans collectively evaluated for impairment 395,848 785,778 2,279,114 2,309,812 404,325 — 6,174,877 Total ending loan balance $ 396,091 $ 791,941 $ 2,284,698 $ 2,320,821 $ 407,836 $ — $ 6,201,387 As of December 31, 2019, the Company defined an impaired loan as 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, 2019, the impaired loan portfolio totaled $26.5 million for which there was $476,000 specific allocation in the allowance for credit losses. The average balance of impaired loans for the three and nine months ended September 30, 2019 were $31.5 million and $30.9 million, respectively. In accordance with ASC 310, prior to the adoption of ASU 2016-13, the summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2019 and for the three and nine months ended September 30, 2019, is as follows, excluding PCI loans (in thousands): Unpaid Recorded Allowance As of December 31, 2019 With no related allowance recorded: Commercial and industrial $ 265 $ 243 $ — Commercial real estate – owner occupied 4,062 3,968 — Commercial real estate – investor 6,665 5,584 — Residential real estate 11,009 11,009 — Consumer 3,734 3,509 — $ 25,735 $ 24,313 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied 2,376 2,195 474 Commercial real estate – investor — — — Residential real estate — — — Consumer 2 2 2 $ 2,378 $ 2,197 $ 476 Three Months Ended September 30, 2019 Nine months ended September 30, 2019 Average Interest Average Interest With no related allowance recorded: Commercial and industrial $ 249 $ 1 $ 708 $ 4 Commercial real estate – owner occupied 3,808 80 4,337 122 Commercial real estate – investor 10,882 22 10,501 158 Residential real estate 10,104 140 10,090 271 Consumer 3,270 48 3,171 94 $ 28,313 $ 291 $ 28,807 $ 649 With an allowance recorded: Commercial and industrial $ — $ — $ — $ — Commercial real estate – owner occupied 3,197 — — — Commercial real estate – investor — — 2,131 36 Residential real estate — — — — Consumer — — — — $ 3,197 $ — $ 2,131 $ 36 The following table presents the recorded investment in non-accrual loans held-for-investment by loan portfolio segment as of September 30, 2020 and December 31, 2019 (in thousands). The September 30, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020). September 30, 2020 December 31, 2019 Commercial and industrial $ 3,263 $ 207 Commercial real estate – owner occupied 12,376 4,811 Commercial real estate – investor 10,259 2,917 Residential real estate 12,620 7,181 Consumer 3,524 2,733 $ 42,042 $ 17,849 At September 30, 2020, the non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At September 30, 2020 and December 31, 2019, there were no loans that were ninety days or greater past due and still accruing interest. The following table presents the aging of the recorded investment in past due loans as of September 30, 2020 and December 31, 2019 by loan portfolio segment (in thousands). The September 30, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020). 30-59 60-89 Greater Total Loans Not Total September 30, 2020 Commercial and industrial $ 680 $ 123 $ 1,663 $ 2,466 $ 596,722 $ 599,188 Commercial real estate – owner occupied 68 78 8,302 8,448 1,168,081 1,176,529 Commercial real estate – investor 212 7,248 4,969 12,429 3,440,847 3,453,276 Residential real estate 612 4,165 7,885 12,662 2,394,516 2,407,178 Consumer 747 585 4,109 5,441 359,366 364,807 $ 2,319 $ 12,199 $ 26,928 $ 41,446 $ 7,959,532 $ 8,000,978 December 31, 2019 Commercial and industrial $ 100 $ — $ 207 $ 307 $ 395,784 $ 396,091 Commercial real estate – owner occupied 1,541 1,203 1,040 3,784 788,157 791,941 Commercial real estate – investor 381 938 2,792 4,111 2,280,587 2,284,698 Residential real estate 8,161 3,487 2,859 14,507 2,306,314 2,320,821 Consumer 1,048 491 2,388 3,927 403,909 407,836 $ 11,231 $ 6,119 $ 9,286 $ 26,636 $ 6,174,751 $ 6,201,387 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. At September 30, 2020 and December 31, 2019, troubled debt restructured (“TDR”) loans totaled $22.6 million and $24.6 million, respectively. Included in the non-accrual loan total at September 30, 2020, and December 31, 2019, were $9.9 million and $6.6 million, respectively, of troubled debt restructurings. At September 30, 2020, and December 31, 2019, the Company had $448,000 and $476,000, respectively, of specific reserves allocated to loans that 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 accruing troubled debt restructurings at September 30, 2020 and December 31, 2019, which totaled $12.8 million and $18.0 million, respectively. The following table presents information about troubled debt restructurings which occurred during the three and nine months ended September 30, 2020 and September 30, 2019, and troubled debt restructurings modified within the previous year and which defaulted during the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): Number of Loans Pre-modification Post-modification Three months ended September 30, 2020 Troubled Debt Restructurings: Consumer 1 $ 16 $ 16 Commercial real estate – investor 1 928 993 Residential real estate 1 418 418 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number of Loans Pre-modification Post-modification Nine months ended September 30, 2020 Troubled Debt Restructurings: Consumer 5 $ 175 $ 193 Commercial real estate – owner occupied 1 1,112 1,143 Commercial real estate – investor 1 928 993 Residential real estate 5 849 865 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number of Loans Pre-modification Post-modification Three Months Ended September 30, 2019 Troubled Debt Restructurings: Consumer 1 $ 54 $ 54 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted None None Number of Loans Pre-modification Post-modification Nine months ended September 30, 2019 Troubled Debt Restructurings: Consumer 5 $ 496 $ 516 Residential real estate 5 921 972 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None In response to the COVID-19 pandemic and its economic impact on customers, short-term modification programs that comply with the CARES Act were implemented to provide temporary payment relief to those borrowers directly impacted by COVID-19. The Commercial Borrower Relief Program allowed for the deferral of principal and interest or principal only. For principal and interest deferrals as well as principal only deferrals, all payments received will first be applied to all accrued and unpaid interest and the balance, if any, on account of unpaid principal, then to fees, expenses and other amounts due to the Bank. Monthly payments shall continue until the maturity date when all then unpaid principal, interest, fees, and all other charges are due and payable to the Bank. The Consumer Borrower Relief Program allowed for the deferral of principal and interest. The deferred payments along with interest accrued during the deferral period are due and payable on the maturity date. Provided these loans were current as of either year end or the date of the modification, these loans are not considered TDR loans at September 30, 2020 and will not be reported as past due during the deferral period. As part of the Two River and Country Bank acquisitions, the Company has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows (in thousands): Two River Country Bank January 1, 2020 Purchase price of loans at acquisition $ 26,354 $ 24,667 Allowance for credit losses at acquisition 1,343 1,296 Non-credit discount at acquisition 3,589 5,334 Par value of acquired loans at acquisition $ 31,286 $ 31,297 In accordance with ASC 310, prior to the adoption of ASU 2016-13, the following table summarizes the changes in accretable yield for PCI loans during the three and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended 2019 2019 Beginning balance $ 3,183 $ 3,630 Acquisition — 691 Accretion (599) (1,783) Reclassification from non-accretable difference 69 115 Ending balance $ 2,653 $ 2,653 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Deposits | Deposits The major types of deposits at September 30, 2020 and December 31, 2019 were as follows (in thousands): Type of Account September 30, 2020 December 31, 2019 Non-interest-bearing $ 2,240,799 $ 1,377,396 Interest-bearing checking 3,317,296 2,539,428 Money market deposit 691,872 578,147 Savings 1,471,554 898,174 Time deposits 1,561,767 935,632 Total deposits $ 9,283,288 $ 6,328,777 Included in time deposits at September 30, 2020 and December 31, 2019, is $544.3 million and $150.6 million, respectively, in deposits of $250,000 and over. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
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 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 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 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 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 unadjusted 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 three and nine months ended September 30, 2020. 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). Debt Securities Available-For-Sale Debt securities classified as available-for-sale are reported at fair value. Fair value for these debt securities is determined using inputs other than quoted prices that are based on market observable information (Level 2) and Level 3 inputs which were utilized for certain state and municipal obligations known as bond anticipation notes (“BANs”). Level 2 debt securities are priced through third-party pricing services 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 debt securities without relying exclusively on quoted prices for the specific securities, but comparing the debt securities to benchmark or comparable debt securities. Equity Investments Equity investments are reported at fair value. Fair value for these investments is determined using a quoted price in an active market or exchange (Level 1). Interest Rate Swaps The Company’s interest rate swaps are reported at fair value utilizing models provided by an independent, third-party and observable market data. When entering into an interest rate swap agreement, the Company is exposed to fair value changes due to interest rate movements, and also the potential nonperformance of our contract counterparty. 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 September 30, 2020 and December 31, 2019, 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 Level 1 Level 2 Level 3 September 30, 2020 Items measured on a recurring basis: Debt securities available-for-sale $ 169,634 $ — $ 167,232 $ 2,402 Equity investments 63,846 63,846 — — Interest rate swap asset 55,516 — 55,516 — Interest rate swap liability (55,719) — (55,719) — Items measured on a non-recurring basis: Other real estate owned 106 — — 106 Loans measured for impairment based on the fair value of the underlying collateral 27,562 — — 27,562 December 31, 2019 Items measured on a recurring basis: Debt securities available-for-sale $ 150,960 $ — $ 150,935 $ 25 Equity investments 10,136 10,136 — — Interest rate swap asset 10,141 — 10,141 — Interest rate swap liability (10,708) — (10,708) — Items measured on a non-recurring basis: Other real estate owned 264 — — 264 Loans measured for impairment based on the fair value of the underlying collateral 8,794 — — 8,794 The following table reconciles, for the three and nine months ended September 30, 2020, the beginning and ending balances for debt securities available-for-sale that are recognized at fair value on a recurring basis, in the consolidated statements of financial condition, using significant unobservable inputs (in thousands): Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Beginning Balance $ 2,402 $ 25 Total gains (losses) included in earnings — — Purchases — 2,377 Transfers into Level 3 — — Transfers out of Level 3 — — Ending Balance $ 2,402 $ 2,402 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. Debt Securities Held-to-Maturity Debt securities classified as held-to-maturity are carried at amortized cost, as the Company has the positive intent and ability to hold these debt securities to maturity. The Company determines the fair value of the debt 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 debt securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific debt securities, but comparing the debt securities to benchmark or comparable debt securities. 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 decides 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 state and municipal obligations known as BANs where management utilized Level 3 inputs. Restricted Equity Investments The fair value for Federal Home Loan Bank of New York and Federal Reserve Bank of Philadelphia 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 as stipulated by the respective agencies. 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. In accordance with the prospective adoption of ASU 2016-01, the fair value of loans was measured using the exit price notion. 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 is, 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 is 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 September 30, 2020 and December 31, 2019 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Level 1 Level 2 Level 3 September 30, 2020 Financial Assets: Cash and due from banks $ 980,870 $ 980,870 $ — $ — Debt securities held-to-maturity 871,688 — 900,099 2,320 Restricted equity investments 67,505 — — 67,505 Loans receivable, net and loans held-for-sale 8,332,153 — — 8,400,464 Financial Liabilities: Deposits other than time deposits 7,721,521 — 7,721,521 — Time deposits 1,561,767 — 1,578,325 — Federal Home Loan Bank advances and other borrowings 590,393 — 619,102 — Securities sold under agreements to repurchase with retail customers 142,823 142,823 — — December 31, 2019 Financial Assets: Cash and due from banks $ 120,544 $ 120,544 $ — $ — Debt securities held-to-maturity 768,873 — 774,805 2,485 Restricted equity investments 62,356 — — 62,356 Loans receivable, net and loans held-for-sale 6,207,680 — — 6,173,237 Financial Liabilities: Deposits other than time deposits 5,393,145 — 5,393,145 — Time deposits 935,632 — 936,318 — Federal Home Loan Bank advances and other borrowings 616,061 — 626,225 — Securities sold under agreements to repurchase with retail customers 71,739 71,739 — — 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. |
Derivatives, Hedging Activities
Derivatives, Hedging Activities, and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities, and Other Financial Instruments | Derivatives, Hedging Activities and Other Financial Instruments The Company enters into derivative financial instruments which involve, to varying degrees, interest rate, market and credit risk. The Company manages these risks as part of its asset and liability management process and through credit policies and procedures, seeking to minimize counterparty credit risk by establishing credit limits and collateral agreements. The Company utilizes certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. In general, the derivative transactions entered into by the Company fall into one of two types: an economic hedge of a derivative offering to Bank customers, or a cash flow hedge related to counter the cash variability of a recognized financial asset or liability. The Company does not use derivative financial instruments for trading purposes. Customer Derivatives – Interest Rate Swaps The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging, and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820, Fair Value Measurements. The Company recognized gains of $15,000 and $364,000, respectively, in other income resulting from fair value adjustments for the three and nine months ended September 30, 2020 as compared to losses of $407,000 and $602,000, respectively, during the three and nine months ended September 30, 2019. The notional amount of derivatives not designated as hedging instruments was $711.4 million and $337.6 million at September 30, 2020 and December 31, 2019, respectively. The table below presents the fair value of derivatives not designated as hedging instruments as well as their location on the consolidated statements of financial condition (in thousands): Fair Value Balance Sheet Location September 30, 2020 December 31, 2019 Other assets $ 55,516 $ 10,141 Other liabilities 55,719 10,708 Credit Risk-Related Contingent Features |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The majority of the Company’s leases are classified as operating leases, which are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company has one existing finance lease, which has a lease term through 2029. The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): September 30, 2020 December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 24,843 $ 18,682 Finance lease ROU asset Premises and equipment, net 1,744 1,534 Total Lease ROU Asset $ 26,587 $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 25,232 $ 18,893 Finance lease liability Other borrowings 2,145 1,953 Total Lease Liability $ 27,377 $ 20,846 The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, the Company uses the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception. September 30, 2020 December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 7.64 years 9.69 years Finance lease 8.85 years 9.60 years Weighted-Average Discount Rate Operating leases 2.95 % 3.45 % Finance lease 5.63 % 5.63 % The following table represents lease expenses and other lease information (in thousands): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Lease Expense Operating Lease Expense $ 1,585 $ 995 $ 4,898 $ 2,963 Finance Lease Expense: Amortization of ROU assets 43 41 124 234 Interest on lease liabilities (1) 27 29 80 147 Total $ 1,655 $ 1,065 $ 5,102 $ 3,344 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,756 $ 969 $ 4,808 $ 2,834 Operating cash flows from finance leases 27 29 80 147 Financing cash flows from finance leases 47 46 141 217 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. Future minimum payments for the finance lease and operating leases as of September 30, 2020 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended September 30, 2021 $ 306 $ 6,188 2022 307 5,634 2023 307 3,547 2024 307 2,813 2025 307 2,471 Thereafter 1,182 8,236 Total $ 2,716 $ 28,889 Less: Imputed Interest (571) (3,657) Total Lease Liabilities $ 2,145 $ 25,232 |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The majority of the Company’s leases are classified as operating leases, which are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company has one existing finance lease, which has a lease term through 2029. The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): September 30, 2020 December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 24,843 $ 18,682 Finance lease ROU asset Premises and equipment, net 1,744 1,534 Total Lease ROU Asset $ 26,587 $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 25,232 $ 18,893 Finance lease liability Other borrowings 2,145 1,953 Total Lease Liability $ 27,377 $ 20,846 The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, the Company uses the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception. September 30, 2020 December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 7.64 years 9.69 years Finance lease 8.85 years 9.60 years Weighted-Average Discount Rate Operating leases 2.95 % 3.45 % Finance lease 5.63 % 5.63 % The following table represents lease expenses and other lease information (in thousands): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Lease Expense Operating Lease Expense $ 1,585 $ 995 $ 4,898 $ 2,963 Finance Lease Expense: Amortization of ROU assets 43 41 124 234 Interest on lease liabilities (1) 27 29 80 147 Total $ 1,655 $ 1,065 $ 5,102 $ 3,344 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,756 $ 969 $ 4,808 $ 2,834 Operating cash flows from finance leases 27 29 80 147 Financing cash flows from finance leases 47 46 141 217 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. Future minimum payments for the finance lease and operating leases as of September 30, 2020 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended September 30, 2021 $ 306 $ 6,188 2022 307 5,634 2023 307 3,547 2024 307 2,813 2025 307 2,471 Thereafter 1,182 8,236 Total $ 2,716 $ 28,889 Less: Imputed Interest (571) (3,657) Total Lease Liabilities $ 2,145 $ 25,232 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events On October 16, 2020, the Company completed the sale of $25.4 million in commercial loans. These loans were considered non-performing held-for-sale and were carried at market value at September 30, 2020. An additional loss of $92,000 was recorded in the fourth quarter associated with this transaction. On October 29, 2020, the Company completed the sale of $298.1 million in PPP loans. These loans were considered held-for-sale and were carried at amortized cost at September 30, 2020. The Company recognized a net gain of $5.1 million in the fourth quarter associated with this transaction. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The consolidated financial statements include the accounts of OceanFirst Financial Corp. (the “Company”) and its wholly-owned subsidiaries, OceanFirst Bank N.A. (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 Hooper Holdings, LLC., TRREO Holdings LLC, Casaba Real Estate Holdings Corporation, Cohensey Bridge, L.L.C., Prosperis Financial, LLC, CBNJ Investments Corp., Country Property Holdings, Inc., and TRCB Investment Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Recent Accounting Pronouncements | In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments (Topic 326).” This ASU significantly changed how entities measure credit losses for financial assets and certain other instruments that are measured at amortized cost. The standard replaced the “incurred loss” approach with an “expected loss” model, which necessitates a forecast of lifetime losses. The new model, referred to as the CECL model, applies 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. The ASU simplifies the accounting model for purchased credit-impaired debt securities and loans. The standard’s provisions are to be applied 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 adopted ASU 2016-13 As allowed by ASC 326, the Company elected not to maintain pools of loans accounted for under ASC 310-30. At December 31, 2019, purchase credit impaired (“PCI”) loans totaled $13.3 million. In accordance with the standard, management did not reassess whether modifications individually acquired financial assets accounted for in pools were troubled debt restructured loans as of the date of adoption. Upon adoption, the Company’s PCI loans were converted to PCD loans as defined by ASC 326. The transition adjustment for the PCI loans to PCD loans resulted in a reclassification of $3.2 million from the specific credit fair value adjustment to the allowance for credit losses on loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. At September 30, 2020, the Company utilized the September 15, 2020 forecast, from Oxford Economics, the most recent forecast available as of quarter end, to provide the macroeconomic forecasts for select variables. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. 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. The adoption of this update did not have an impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU updates the disclosure requirements on Fair Value measurements by 1) removing: the disclosures for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements; 2) modifying: disclosures for timing of liquidation of an investee’s assets and disclosures for uncertainty in measurement as of reporting date; and 3) adding: disclosures for changes in unrealized gains and losses included in other comprehensive income for recurring level 3 fair value measurements and disclosures for the range and weighted average of the significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted to any removed or modified disclosures and delay adoption of additional disclosures until the effective date. With the exception of the following, which should be applied prospectively, disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement, all other changes should be applied retrospectively to all periods presented upon the effective date. The adoption of this update did not have an impact on the Company’s consolidated financial statements. Refer to Note 7 Fair Value Measurements, for additional information. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Assets Acquired and Liabilities Assumed and Their Initial Fair Value Estimates | The following table summarizes the fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Capital Bank, net of total consideration paid (in thousands): At January 31, 2019 Fair Value Total purchase price: $ 76,834 Assets acquired: Cash and cash equivalents $ 59,748 Securities 103,775 Loans 307,300 Accrued interest receivable 1,390 Bank owned life insurance 10,460 Deferred tax asset 4,101 Other assets 4,980 Core deposit intangible 2,662 Total assets acquired 494,416 Liabilities assumed: Deposits (449,018) Other liabilities (5,210) Total liabilities assumed (454,228) Net assets acquired $ 40,188 Goodwill recorded in the merger $ 36,646 The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Two River, net of total consideration paid (in thousands): At January 1, 2020 Estimated Total purchase price: $ 197,050 Assets acquired: Cash and cash equivalents $ 51,102 Securities 64,381 Loans 940,072 Accrued interest receivable 2,382 Bank owned life insurance 22,440 Deferred tax asset 3,578 Other assets 15,956 Core deposit intangible 12,130 Total assets acquired 1,112,041 Liabilities assumed: Deposits (941,750) Other liabilities (59,006) Total liabilities assumed (1,000,756) Net assets acquired $ 111,285 Goodwill recorded in the merger $ 85,765 The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Country Bank, net of total consideration paid (in thousands): At January 1, 2020 Estimated Total purchase price: $ 112,836 Assets acquired: Cash and cash equivalents $ 20,799 Securities 144,499 Loans 618,408 Accrued interest receivable 1,779 Deferred tax asset (4,087) Other assets 9,195 Core deposit intangible 2,117 Total assets acquired 792,710 Liabilities assumed: Deposits (652,653) Other liabilities (67,240) Total liabilities assumed (719,893) Net assets acquired $ 72,817 Goodwill recorded in the merger $ 40,019 |
Summary of Business Acquisition, Pro Forma Information | The following table presents financial information regarding the former Two River and Country Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 1, 2020) through September 30, 2020. The table also presents financial information regarding the former Capital Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 31, 2019) through September 30, 2020. In addition, the table provides unaudited condensed pro forma financial information assuming the Two River, Country Bank, and Capital Bank acquisitions had been completed as of January 1, 2019 for the nine months ended September 30, 2019. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain accounting policies of the acquired company to the Company’s policies that may have occurred as a result of the integration and consolidation of Two River, Country Bank, and Capital Bank’s operations. The pro forma information shown reflects adjustments related to certain purchase accounting fair value adjustments; amortization of core deposit and other intangibles; and related income tax effects. (in thousands) Two River Country Bank Actual for Capital Bank Pro Forma Net interest income $ 31,354 $ 20,456 $ 12,700 $ 247,550 Credit loss expense 6,471 4,398 280 2,211 Non-interest income 1,886 408 991 35,010 Non-interest expense 23,422 14,470 11,035 176,294 Provision for income taxes 809 482 499 20,233 Net income $ 2,538 $ 1,514 $ 1,877 $ 83,822 Fully diluted earnings per share $ 1.36 |
Earnings_(Loss) per Share (Tabl
Earnings/(Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Outstanding for Basic and Diluted Earnings/(Loss) per Share | The following reconciles shares outstanding for basic and diluted earnings/(loss) per share for the three and nine months ended September 30, 2020 and September 30, 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Weighted average shares outstanding 60,363 51,039 60,349 50,792 Less: Unallocated ESOP shares (418) (484) (435) (501) Unallocated incentive award shares and shares held by deferred compensation plan (10) (64) (13) (49) Average basic shares outstanding 59,935 50,491 59,901 50,242 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan — 475 175 588 Average diluted shares outstanding 59,935 50,966 60,076 50,830 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | The amortized cost, estimated fair value, and allowance for credit losses of debt securities available-for-sale and held-to-maturity at September 30, 2020, and December 31, 2019, are as follows (in thousands): Amortized Gross Gross Estimated Allowance for Credit Losses At September 30, 2020 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 158,778 $ 3,653 $ (3) $ 162,428 $ — State and municipal obligations 2,402 — — 2,402 — Corporate debt securities 4,500 61 — 4,561 — Total investment securities 165,680 3,714 (3) 169,391 — Mortgage-backed securities - FNMA 240 3 — 243 — Total debt securities available-for-sale $ 165,920 $ 3,717 $ (3) $ 169,634 $ — Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 4,997 $ 14 $ — $ 5,011 $ — State and municipal obligations 214,865 9,375 (225) 224,015 (33) Corporate debt securities 72,289 1,700 (3,867) 70,122 (1,579) Total investment securities 292,151 11,089 (4,092) 299,148 (1,612) Mortgage-backed securities: FHLMC 202,329 6,093 (135) 208,287 — FNMA 245,524 7,799 (141) 253,182 — GNMA 82,230 2,457 (16) 84,671 — SBA 5,634 — (60) 5,574 — CMO 49,745 1,811 — 51,556 (781) Total mortgage-backed securities 585,462 18,160 (352) 603,270 (781) Total debt securities held-to-maturity $ 877,613 $ 29,249 $ (4,444) $ 902,418 $ (2,393) Total debt securities $ 1,043,533 $ 32,966 $ (4,447) $ 1,072,052 $ (2,393) Amortized Gross Gross Estimated At December 31, 2019 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 149,120 $ 1,408 $ (93) $ 150,435 State and municipal obligations 25 — — 25 Total investment securities 149,145 1,408 (93) 150,460 Mortgage-backed securities - FNMA 495 5 — 500 Total debt securities available-for-sale $ 149,640 $ 1,413 $ (93) $ 150,960 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 4,984 $ 14 $ — $ 4,998 State and municipal obligations 124,430 1,537 (208) 125,759 Corporate debt securities 79,547 833 (2,421) 77,959 Total investment securities 208,961 2,384 (2,629) 208,716 Mortgage-backed securities: FHLMC 206,985 2,221 (524) 208,682 FNMA 244,428 2,680 (493) 246,615 GNMA 110,661 939 (212) 111,388 SBA 1,940 — (51) 1,889 Total mortgage-backed securities 564,014 5,840 (1,280) 568,574 Total debt securities held-to-maturity $ 772,975 $ 8,224 $ (3,909) $ 777,290 Total debt securities $ 922,615 $ 9,637 $ (4,002) $ 928,250 |
Schedule of Carrying Value of Held-to-Maturity Investment Securities | The amortized cost, estimated fair value, and allowance for credit losses of debt securities available-for-sale and held-to-maturity at September 30, 2020, and December 31, 2019, are as follows (in thousands): Amortized Gross Gross Estimated Allowance for Credit Losses At September 30, 2020 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 158,778 $ 3,653 $ (3) $ 162,428 $ — State and municipal obligations 2,402 — — 2,402 — Corporate debt securities 4,500 61 — 4,561 — Total investment securities 165,680 3,714 (3) 169,391 — Mortgage-backed securities - FNMA 240 3 — 243 — Total debt securities available-for-sale $ 165,920 $ 3,717 $ (3) $ 169,634 $ — Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 4,997 $ 14 $ — $ 5,011 $ — State and municipal obligations 214,865 9,375 (225) 224,015 (33) Corporate debt securities 72,289 1,700 (3,867) 70,122 (1,579) Total investment securities 292,151 11,089 (4,092) 299,148 (1,612) Mortgage-backed securities: FHLMC 202,329 6,093 (135) 208,287 — FNMA 245,524 7,799 (141) 253,182 — GNMA 82,230 2,457 (16) 84,671 — SBA 5,634 — (60) 5,574 — CMO 49,745 1,811 — 51,556 (781) Total mortgage-backed securities 585,462 18,160 (352) 603,270 (781) Total debt securities held-to-maturity $ 877,613 $ 29,249 $ (4,444) $ 902,418 $ (2,393) Total debt securities $ 1,043,533 $ 32,966 $ (4,447) $ 1,072,052 $ (2,393) Amortized Gross Gross Estimated At December 31, 2019 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 149,120 $ 1,408 $ (93) $ 150,435 State and municipal obligations 25 — — 25 Total investment securities 149,145 1,408 (93) 150,460 Mortgage-backed securities - FNMA 495 5 — 500 Total debt securities available-for-sale $ 149,640 $ 1,413 $ (93) $ 150,960 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 4,984 $ 14 $ — $ 4,998 State and municipal obligations 124,430 1,537 (208) 125,759 Corporate debt securities 79,547 833 (2,421) 77,959 Total investment securities 208,961 2,384 (2,629) 208,716 Mortgage-backed securities: FHLMC 206,985 2,221 (524) 208,682 FNMA 244,428 2,680 (493) 246,615 GNMA 110,661 939 (212) 111,388 SBA 1,940 — (51) 1,889 Total mortgage-backed securities 564,014 5,840 (1,280) 568,574 Total debt securities held-to-maturity $ 772,975 $ 8,224 $ (3,909) $ 777,290 Total debt securities $ 922,615 $ 9,637 $ (4,002) $ 928,250 September 30, 2020 December 31, 2019 Amortized cost $ 877,613 $ 772,975 Net loss on date of transfer from available-for-sale (13,347) (13,347) Allowance for credit loss (2,393) — Accretion of net unrealized loss on securities reclassified as held-to-maturity 9,815 9,245 Carrying value $ 871,688 $ 768,873 |
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the nine months ended September 30, 2020 (in thousands): Investment securities Mortgage-backed securities Allowance for credit losses Beginning balance $ — $ — Impact of CECL adoption (1,268) — Provision for credit loss expense (344) (781) Total ending allowance balance $ (1,612) $ (781) |
Schedule of Debt Securities, Trading, and Equity Securities, FV-NI | The realized and unrealized gains or losses on equity securities for the three and nine months ended September 30, 2020 and September 30, 2019 are shown in the table below (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net (loss) gain on equity investments $ (3,576) $ 89 $ (3,273) $ 330 Less: Net losses recognized on equity securities sold — — (53) — Unrealized (loss) gain recognized on equity securities still held $ (3,576) $ 89 $ (3,220) $ 330 |
Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of investment securities at September 30, 2020 by contractual maturity are shown below (in thousands). Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2020, corporate debt securities with an amortized cost of $38.5 million and estimated fair value of $39.8 million were callable prior to the maturity date. September 30, 2020 Amortized Estimated Less than one year $ 95,990 $ 96,765 Due after one year through five years 180,827 186,965 Due after five years through ten years 78,064 75,630 Due after ten years 102,950 109,180 $ 457,831 $ 468,540 |
Summary of Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity | The estimated fair value and unrealized losses of debt securities available-for-sale and held-to-maturity at September 30, 2020 and December 31, 2019, segregated by the duration of the unrealized losses, are as follows (in thousands): At September 30, 2020 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 17,060 $ (3) $ — $ — $ 17,060 $ (3) Total debt securities available-for-sale 17,060 (3) — — 17,060 (3) Debt securities held-to-maturity: Investment securities: State and municipal obligations $ 3,635 $ (42) $ 7,383 $ (183) $ 11,018 $ (225) Corporate debt securities 9,429 (434) 34,899 (3,433) 44,328 (3,867) Total investment securities 13,064 (476) 42,282 (3,616) 55,346 (4,092) Mortgage-backed securities: FHLMC 31,267 (127) 965 (8) 32,232 (135) FNMA 39,572 (127) 485 (14) 40,057 (141) GNMA 6,008 (14) 228 (2) 6,236 (16) SBA 3,850 (11) 1,724 (49) 5,574 (60) CMO — — — — — — Total mortgage-backed securities 80,697 (279) 3,402 (73) 84,099 (352) Total debt securities held-to-maturity 93,761 (755) 45,684 (3,689) 139,445 (4,444) Total debt securities $ 110,821 $ (758) $ 45,684 $ (3,689) $ 156,505 $ (4,447) At December 31, 2019 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 25,021 $ (54) $ 22,451 $ (39) $ 47,472 $ (93) Total debt securities available-for-sale 25,021 (54) 22,451 (39) 47,472 (93) Debt securities held-to-maturity: Investment securities: State and municipal obligations 7,308 (58) 14,531 (150) 21,839 (208) Corporate debt securities 9,727 (213) 37,628 (2,208) 47,355 (2,421) Total investment securities 17,035 (271) 52,159 (2,358) 69,194 (2,629) Mortgage-backed securities: FHLMC 6,329 (29) 38,641 (495) 44,970 (524) FNMA 13,682 (59) 38,568 (434) 52,250 (493) GNMA 30,268 (93) 19,828 (119) 50,096 (212) SBA — — 1,889 (51) 1,889 (51) Total mortgage-backed securities 50,279 (181) 98,926 (1,099) 149,205 (1,280) Total debt securities held-to-maturity 67,314 (452) 151,085 (3,457) 218,399 (3,909) Total debt securities $ 92,335 $ (506) $ 173,536 $ (3,496) $ 265,871 $ (4,002) |
Schedule of Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities | At September 30, 2020, 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): Security Description Amortized Estimated Credit Rating Chase Capital $ 10,000 $ 9,205 Baa1/BBB- Wells Fargo Capital 5,000 4,495 A1/BBB- Huntington Capital 5,000 4,432 Baa2/BB+ Keycorp Capital 5,000 4,513 Baa2/BB+ PNC Capital 5,000 4,577 Baa1/BBB- SunTrust Capital 5,000 4,670 Not Rated/BBB- State Street Capital 3,332 3,007 A3/BBB $ 38,332 $ 34,899 |
Schedule of Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table summarized the amortized cost of debt securities held-to-maturity at September 30, 2020, aggregated by credit quality indicator (in thousands): AAA AA A BBB BB Total As of September 30, 2020 Investment securities: U.S. government and agency obligations $ — $ 4,997 $ — $ — $ — $ 4,997 State and municipal obligations 35,280 128,128 46,390 5,067 — 214,865 Corporate debt securities — 1,495 11,960 47,502 11,332 72,289 Total investment securities 35,280 134,620 58,350 52,569 11,332 292,151 Mortgage-backed securities: CMO 16,909 32,836 — — — 49,745 Total mortgage-backed securities 16,909 32,836 — — — 49,745 Total debt securities held-to-maturity $ 52,189 $ 167,456 $ 58,350 $ 52,569 $ 11,332 $ 341,896 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of Loans Receivable, Net | Loans receivable, net at September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Commercial: Commercial and industrial $ 599,188 $ 396,434 Commercial real estate – owner occupied 1,176,529 792,653 Commercial real estate – investor 3,453,276 2,296,410 Total commercial 5,228,993 3,485,497 Consumer: Residential real estate 2,407,178 2,321,157 Home equity loans and lines 301,712 318,576 Other consumer 63,095 89,422 Total consumer 2,771,985 2,729,155 Total loans 8,000,978 6,214,652 Deferred origination (fees) costs, net (1,238) 9,880 Allowance for credit losses (56,350) (16,852) Total loans, net $ 7,943,390 $ 6,207,680 |
Summary of Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans | The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands): 2020 2019 2018 2017 2016 2015 and prior Revolving lines of credit Total September 30, 2020 Commercial and industrial Pass $ 238,326 $ 47,785 $ 32,607 $ 23,576 $ 38,353 $ 70,681 $ 123,071 $ 574,399 Special Mention — 629 759 1,431 892 200 2,597 6,508 Substandard 355 1,092 1,351 1,557 53 3,264 10,609 18,281 Total commercial and industrial 238,681 49,506 34,717 26,564 39,298 74,145 136,277 599,188 Commercial real estate - owner occupied Pass 78,646 125,479 132,958 136,186 117,713 466,072 10,742 1,067,796 Special Mention — 1,736 8,263 1,374 5,440 15,477 393 32,683 Substandard — 33,661 5,924 3,700 5,947 25,975 843 76,050 Total commercial real estate - owner occupied 78,646 160,876 147,145 141,260 129,100 507,524 11,978 1,176,529 Commercial real estate - investor Pass 479,468 632,528 309,128 437,510 323,544 894,433 209,485 3,286,096 Special Mention — 7,296 22,274 9,756 9,657 48,393 150 97,526 Substandard 4,311 7,673 2,058 11,251 8,129 32,523 3,709 69,654 Total commercial real estate - investor 483,779 647,497 333,460 458,517 341,330 975,349 213,344 3,453,276 Residential real estate (1) Pass 464,423 489,832 268,996 185,249 161,255 825,373 — 2,395,128 Special Mention 162 — — 1,112 — 2,891 — 4,165 Substandard — — 895 368 — 6,622 — 7,885 Total residential real estate 464,585 489,832 269,891 186,729 161,255 834,886 — 2,407,178 Consumer (1) Pass 18,711 28,994 94,536 28,558 17,947 166,364 5,003 360,113 Special Mention 90 167 — — — 328 — 585 Substandard — 225 33 — 69 3,782 — 4,109 Total consumer 18,801 29,386 94,569 28,558 18,016 170,474 5,003 364,807 Total loans $ 1,284,492 $ 1,377,097 $ 879,782 $ 841,628 $ 688,999 $ 2,562,378 $ 366,602 $ 8,000,978 |
Analysis of Allowance for Loan Losses | An analysis of the allowance for credit losses on loans for the three and nine months ended September 30, 2020 and September 30, 2019 is as follows (in thousands): Commercial Commercial Commercial Residential Consumer Unallocated Total For the three months ended Allowance for credit losses on loans Balance at beginning of period $ 4,979 $ 2,765 $ 8,860 $ 17,685 $ 4,220 $ — $ 38,509 Credit loss (benefit) expense (106) 5,166 30,131 (1,891) (464) — 32,836 Charge-offs (575) (2,252) (12,037) (6) (541) — (15,411) Recoveries 29 2 32 320 33 — 416 Balance at end of period $ 4,327 $ 5,681 $ 26,986 $ 16,108 $ 3,248 $ — $ 56,350 For the three months ended Allowance for credit losses on loans Balance at beginning of period $ 1,639 $ 2,868 $ 8,406 $ 1,966 $ 512 $ 744 $ 16,135 Credit loss (benefit) expense (352) 80 711 193 10 (337) 305 Charge-offs — (142) (57) (27) (127) — (353) Recoveries 49 114 292 39 55 — 549 Balance at end of period $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 For the nine months ended Allowance for credit losses on loans Balance at beginning of period $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Impact of CECL adoption 2,416 (1,109) (5,395) 3,833 2,981 (25) 2,701 Credit loss (benefit) expense (275) 6,120 34,208 10,749 (727) — 50,075 Initial allowance for credit losses on PCD loans 1,221 26 260 109 1,023 — 2,639 Charge-offs (575) (2,253) (12,062) (1,351) (723) — (16,964) Recoveries 82 4 92 766 103 — 1,047 Balance at end of period $ 4,327 $ 5,681 $ 26,986 $ 16,108 $ 3,248 $ — $ 56,350 For the nine months ended Allowance for credit losses on loans Balance at beginning of period $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Credit loss (benefit) expense (406) 1,192 26 899 185 (615) 1,281 Charge-offs — (663) (143) (1,221) (332) — (2,359) Recoveries 133 114 699 80 111 — 1,137 Balance at end of period $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans | In accordance with ASC 310, prior to the adoption of ASU 2016-13, the following table presents the balance in the allowance for credit losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019, excluding PCD loans (in thousands): Commercial Commercial Commercial Residential Consumer Unallocated Total December 31, 2019 Allowance for credit losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ 474 $ — $ — $ 2 $ — $ 476 Collectively evaluated for impairment 1,458 2,419 9,883 2,002 589 25 16,376 Total ending allowance balance $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Loans: Loans individually evaluated for impairment $ 243 $ 6,163 $ 5,584 $ 11,009 $ 3,511 $ — $ 26,510 Loans collectively evaluated for impairment 395,848 785,778 2,279,114 2,309,812 404,325 — 6,174,877 Total ending loan balance $ 396,091 $ 791,941 $ 2,284,698 $ 2,320,821 $ 407,836 $ — $ 6,201,387 |
Summary of Impaired Loans Excluding PCI Loans | In accordance with ASC 310, prior to the adoption of ASU 2016-13, the following table presents the balance in the allowance for credit losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019, excluding PCD loans (in thousands): Commercial Commercial Commercial Residential Consumer Unallocated Total December 31, 2019 Allowance for credit losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ 474 $ — $ — $ 2 $ — $ 476 Collectively evaluated for impairment 1,458 2,419 9,883 2,002 589 25 16,376 Total ending allowance balance $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Loans: Loans individually evaluated for impairment $ 243 $ 6,163 $ 5,584 $ 11,009 $ 3,511 $ — $ 26,510 Loans collectively evaluated for impairment 395,848 785,778 2,279,114 2,309,812 404,325 — 6,174,877 Total ending loan balance $ 396,091 $ 791,941 $ 2,284,698 $ 2,320,821 $ 407,836 $ — $ 6,201,387 |
Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans | In accordance with ASC 310, prior to the adoption of ASU 2016-13, the summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2019 and for the three and nine months ended September 30, 2019, is as follows, excluding PCI loans (in thousands): Unpaid Recorded Allowance As of December 31, 2019 With no related allowance recorded: Commercial and industrial $ 265 $ 243 $ — Commercial real estate – owner occupied 4,062 3,968 — Commercial real estate – investor 6,665 5,584 — Residential real estate 11,009 11,009 — Consumer 3,734 3,509 — $ 25,735 $ 24,313 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied 2,376 2,195 474 Commercial real estate – investor — — — Residential real estate — — — Consumer 2 2 2 $ 2,378 $ 2,197 $ 476 Three Months Ended September 30, 2019 Nine months ended September 30, 2019 Average Interest Average Interest With no related allowance recorded: Commercial and industrial $ 249 $ 1 $ 708 $ 4 Commercial real estate – owner occupied 3,808 80 4,337 122 Commercial real estate – investor 10,882 22 10,501 158 Residential real estate 10,104 140 10,090 271 Consumer 3,270 48 3,171 94 $ 28,313 $ 291 $ 28,807 $ 649 With an allowance recorded: Commercial and industrial $ — $ — $ — $ — Commercial real estate – owner occupied 3,197 — — — Commercial real estate – investor — — 2,131 36 Residential real estate — — — — Consumer — — — — $ 3,197 $ — $ 2,131 $ 36 |
Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans | The following table presents the recorded investment in non-accrual loans held-for-investment by loan portfolio segment as of September 30, 2020 and December 31, 2019 (in thousands). The September 30, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020). September 30, 2020 December 31, 2019 Commercial and industrial $ 3,263 $ 207 Commercial real estate – owner occupied 12,376 4,811 Commercial real estate – investor 10,259 2,917 Residential real estate 12,620 7,181 Consumer 3,524 2,733 $ 42,042 $ 17,849 |
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 September 30, 2020 and December 31, 2019 by loan portfolio segment (in thousands). The September 30, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020). 30-59 60-89 Greater Total Loans Not Total September 30, 2020 Commercial and industrial $ 680 $ 123 $ 1,663 $ 2,466 $ 596,722 $ 599,188 Commercial real estate – owner occupied 68 78 8,302 8,448 1,168,081 1,176,529 Commercial real estate – investor 212 7,248 4,969 12,429 3,440,847 3,453,276 Residential real estate 612 4,165 7,885 12,662 2,394,516 2,407,178 Consumer 747 585 4,109 5,441 359,366 364,807 $ 2,319 $ 12,199 $ 26,928 $ 41,446 $ 7,959,532 $ 8,000,978 December 31, 2019 Commercial and industrial $ 100 $ — $ 207 $ 307 $ 395,784 $ 396,091 Commercial real estate – owner occupied 1,541 1,203 1,040 3,784 788,157 791,941 Commercial real estate – investor 381 938 2,792 4,111 2,280,587 2,284,698 Residential real estate 8,161 3,487 2,859 14,507 2,306,314 2,320,821 Consumer 1,048 491 2,388 3,927 403,909 407,836 $ 11,231 $ 6,119 $ 9,286 $ 26,636 $ 6,174,751 $ 6,201,387 |
Troubled Debt Restructurings | The following table presents information about troubled debt restructurings which occurred during the three and nine months ended September 30, 2020 and September 30, 2019, and troubled debt restructurings modified within the previous year and which defaulted during the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): Number of Loans Pre-modification Post-modification Three months ended September 30, 2020 Troubled Debt Restructurings: Consumer 1 $ 16 $ 16 Commercial real estate – investor 1 928 993 Residential real estate 1 418 418 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number of Loans Pre-modification Post-modification Nine months ended September 30, 2020 Troubled Debt Restructurings: Consumer 5 $ 175 $ 193 Commercial real estate – owner occupied 1 1,112 1,143 Commercial real estate – investor 1 928 993 Residential real estate 5 849 865 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number of Loans Pre-modification Post-modification Three Months Ended September 30, 2019 Troubled Debt Restructurings: Consumer 1 $ 54 $ 54 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted None None Number of Loans Pre-modification Post-modification Nine months ended September 30, 2019 Troubled Debt Restructurings: Consumer 5 $ 496 $ 516 Residential real estate 5 921 972 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None |
Financing Receivable, Purchased With Credit Deterioration | The carrying amount of those loans is as follows (in thousands): Two River Country Bank January 1, 2020 Purchase price of loans at acquisition $ 26,354 $ 24,667 Allowance for credit losses at acquisition 1,343 1,296 Non-credit discount at acquisition 3,589 5,334 Par value of acquired loans at acquisition $ 31,286 $ 31,297 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | In accordance with ASC 310, prior to the adoption of ASU 2016-13, the following table summarizes the changes in accretable yield for PCI loans during the three and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended 2019 2019 Beginning balance $ 3,183 $ 3,630 Acquisition — 691 Accretion (599) (1,783) Reclassification from non-accretable difference 69 115 Ending balance $ 2,653 $ 2,653 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Summary of Major Types of Deposits | The major types of deposits at September 30, 2020 and December 31, 2019 were as follows (in thousands): Type of Account September 30, 2020 December 31, 2019 Non-interest-bearing $ 2,240,799 $ 1,377,396 Interest-bearing checking 3,317,296 2,539,428 Money market deposit 691,872 578,147 Savings 1,471,554 898,174 Time deposits 1,561,767 935,632 Total deposits $ 9,283,288 $ 6,328,777 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2020 and December 31, 2019, 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 Level 1 Level 2 Level 3 September 30, 2020 Items measured on a recurring basis: Debt securities available-for-sale $ 169,634 $ — $ 167,232 $ 2,402 Equity investments 63,846 63,846 — — Interest rate swap asset 55,516 — 55,516 — Interest rate swap liability (55,719) — (55,719) — Items measured on a non-recurring basis: Other real estate owned 106 — — 106 Loans measured for impairment based on the fair value of the underlying collateral 27,562 — — 27,562 December 31, 2019 Items measured on a recurring basis: Debt securities available-for-sale $ 150,960 $ — $ 150,935 $ 25 Equity investments 10,136 10,136 — — Interest rate swap asset 10,141 — 10,141 — Interest rate swap liability (10,708) — (10,708) — Items measured on a non-recurring basis: Other real estate owned 264 — — 264 Loans measured for impairment based on the fair value of the underlying collateral 8,794 — — 8,794 |
Summary of Debt Securities, Available-for-sale | The following table reconciles, for the three and nine months ended September 30, 2020, the beginning and ending balances for debt securities available-for-sale that are recognized at fair value on a recurring basis, in the consolidated statements of financial condition, using significant unobservable inputs (in thousands): Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Beginning Balance $ 2,402 $ 25 Total gains (losses) included in earnings — — Purchases — 2,377 Transfers into Level 3 — — Transfers out of Level 3 — — Ending Balance $ 2,402 $ 2,402 |
Summary of 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 September 30, 2020 and December 31, 2019 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Level 1 Level 2 Level 3 September 30, 2020 Financial Assets: Cash and due from banks $ 980,870 $ 980,870 $ — $ — Debt securities held-to-maturity 871,688 — 900,099 2,320 Restricted equity investments 67,505 — — 67,505 Loans receivable, net and loans held-for-sale 8,332,153 — — 8,400,464 Financial Liabilities: Deposits other than time deposits 7,721,521 — 7,721,521 — Time deposits 1,561,767 — 1,578,325 — Federal Home Loan Bank advances and other borrowings 590,393 — 619,102 — Securities sold under agreements to repurchase with retail customers 142,823 142,823 — — December 31, 2019 Financial Assets: Cash and due from banks $ 120,544 $ 120,544 $ — $ — Debt securities held-to-maturity 768,873 — 774,805 2,485 Restricted equity investments 62,356 — — 62,356 Loans receivable, net and loans held-for-sale 6,207,680 — — 6,173,237 Financial Liabilities: Deposits other than time deposits 5,393,145 — 5,393,145 — Time deposits 935,632 — 936,318 — Federal Home Loan Bank advances and other borrowings 616,061 — 626,225 — Securities sold under agreements to repurchase with retail customers 71,739 71,739 — — |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities, and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts and Fair Value of Outstanding Derivative Positions | The table below presents the fair value of derivatives not designated as hedging instruments as well as their location on the consolidated statements of financial condition (in thousands): Fair Value Balance Sheet Location September 30, 2020 December 31, 2019 Other assets $ 55,516 $ 10,141 Other liabilities 55,719 10,708 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Lease Liabilities | The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): September 30, 2020 December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 24,843 $ 18,682 Finance lease ROU asset Premises and equipment, net 1,744 1,534 Total Lease ROU Asset $ 26,587 $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 25,232 $ 18,893 Finance lease liability Other borrowings 2,145 1,953 Total Lease Liability $ 27,377 $ 20,846 |
Schedule of Weighted Average Remaining Lease Term and Discount Rate | September 30, 2020 December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 7.64 years 9.69 years Finance lease 8.85 years 9.60 years Weighted-Average Discount Rate Operating leases 2.95 % 3.45 % Finance lease 5.63 % 5.63 % |
Schedule of Lease Costs and Other Lease Information | The following table represents lease expenses and other lease information (in thousands): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Lease Expense Operating Lease Expense $ 1,585 $ 995 $ 4,898 $ 2,963 Finance Lease Expense: Amortization of ROU assets 43 41 124 234 Interest on lease liabilities (1) 27 29 80 147 Total $ 1,655 $ 1,065 $ 5,102 $ 3,344 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,756 $ 969 $ 4,808 $ 2,834 Operating cash flows from finance leases 27 29 80 147 Financing cash flows from finance leases 47 46 141 217 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. |
Schedule of Future Minimum Payments for Finance Leases | Future minimum payments for the finance lease and operating leases as of September 30, 2020 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended September 30, 2021 $ 306 $ 6,188 2022 307 5,634 2023 307 3,547 2024 307 2,813 2025 307 2,471 Thereafter 1,182 8,236 Total $ 2,716 $ 28,889 Less: Imputed Interest (571) (3,657) Total Lease Liabilities $ 2,145 $ 25,232 |
Schedule of Future Minimum Payments for Operating Leases | Future minimum payments for the finance lease and operating leases as of September 30, 2020 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended September 30, 2021 $ 306 $ 6,188 2022 307 5,634 2023 307 3,547 2024 307 2,813 2025 307 2,471 Thereafter 1,182 8,236 Total $ 2,716 $ 28,889 Less: Imputed Interest (571) (3,657) Total Lease Liabilities $ 2,145 $ 25,232 |
Basis of Presentation - Recentl
Basis of Presentation - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||
Adoption of stockholders' equity | $ (1,461,714) | $ (1,153,119) | $ (1,476,434) | $ (1,144,528) | $ (1,137,295) | $ (1,039,358) |
Financing receivable, allowance for credit loss, period increase (decrease) | (475) | |||||
Debt securities, held-to-maturity, allowance for credit loss, period increase (decrease) | 1,300 | |||||
Decrease in off-balance sheet credit exposure | 788 | |||||
Purchased credit impaired (“PCI”) loans | 13,300 | |||||
Financing receivable, allowance for credit losses, effect of change in method | $ 3,200 | |||||
Cumulative Effect, Period Of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Adoption of stockholders' equity | $ 4 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | Jan. 01, 2020USD ($) | Jan. 31, 2019USD ($) | Sep. 30, 2020USD ($)property |
Capital Bank | |||
Business Acquisition [Line Items] | |||
Purchase accounting adjustments, assets | $ 494,416 | ||
Purchase accounting adjustments, loans | 307,300 | ||
Purchase accounting adjustments, deposits | 449,018 | ||
Total consideration paid | 76,834 | ||
Cash consideration | 353 | ||
Core deposit intangible | $ 2,662 | $ 2,700 | |
Two River Bancorp Inc. | |||
Business Acquisition [Line Items] | |||
Purchase accounting adjustments, assets | $ 1,112,041 | ||
Purchase accounting adjustments, loans | 940,072 | ||
Purchase accounting adjustments, deposits | 941,750 | ||
Total consideration paid | 197,050 | ||
Cash consideration | 48,400 | ||
Core deposit intangible | 12,130 | 12,100 | |
Country Bank Holding Company, Inc | |||
Business Acquisition [Line Items] | |||
Purchase accounting adjustments, assets | 792,710 | ||
Purchase accounting adjustments, loans | 618,408 | ||
Purchase accounting adjustments, deposits | 652,653 | ||
Total consideration paid | 112,836 | ||
Core deposit intangible | $ 2,117 | $ 2,100 | |
Core Deposits | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||
Capital Bank | |||
Business Acquisition [Line Items] | |||
Number of properties subject to lease agreement | property | 1 | ||
Two River Bancorp Inc. | |||
Business Acquisition [Line Items] | |||
Number of properties subject to lease agreement | property | 14 | ||
Country Bank Holding Company, Inc | |||
Business Acquisition [Line Items] | |||
Number of properties subject to lease agreement | property | 5 |
Business Combinations - Summary
Business Combinations - Summary of Assets Acquired and Liabilities Assumed and Their Initial Fair Value Estimates (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Jan. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
Assets acquired: | ||||
Bank owned life insurance | $ 264,167 | $ 237,411 | ||
Liabilities assumed: | ||||
Goodwill recorded in the merger | 500,849 | $ 374,632 | ||
Capital Bank | ||||
Estimated Fair Value | ||||
Total purchase price: | $ 76,834 | |||
Assets acquired: | ||||
Cash and cash equivalents | 59,748 | |||
Securities | 103,775 | |||
Loans | 307,300 | |||
Accrued interest receivable | 1,390 | |||
Bank owned life insurance | 10,460 | |||
Deferred tax asset | 4,101 | |||
Other assets | 4,980 | |||
Core deposit intangible | 2,662 | 2,700 | ||
Total assets acquired | 494,416 | |||
Liabilities assumed: | ||||
Deposits | (449,018) | |||
Other liabilities | (5,210) | |||
Total liabilities assumed | (454,228) | |||
Net assets acquired | 40,188 | |||
Goodwill recorded in the merger | $ 36,646 | |||
Two River Bancorp Inc. | ||||
Estimated Fair Value | ||||
Total purchase price: | $ 197,050 | |||
Assets acquired: | ||||
Cash and cash equivalents | 51,102 | |||
Securities | 64,381 | |||
Loans | 940,072 | |||
Accrued interest receivable | 2,382 | |||
Bank owned life insurance | 22,440 | |||
Deferred tax asset | 3,578 | |||
Other assets | 15,956 | |||
Core deposit intangible | 12,130 | 12,100 | ||
Total assets acquired | 1,112,041 | |||
Liabilities assumed: | ||||
Deposits | (941,750) | |||
Other liabilities | (59,006) | |||
Total liabilities assumed | (1,000,756) | |||
Net assets acquired | 111,285 | |||
Goodwill recorded in the merger | 85,765 | |||
Country Bank Holding Company, Inc | ||||
Estimated Fair Value | ||||
Total purchase price: | 112,836 | |||
Assets acquired: | ||||
Cash and cash equivalents | 20,799 | |||
Securities | 144,499 | |||
Loans | 618,408 | |||
Accrued interest receivable | 1,779 | |||
Deferred tax asset | (4,087) | |||
Other assets | 9,195 | |||
Core deposit intangible | 2,117 | $ 2,100 | ||
Total assets acquired | 792,710 | |||
Liabilities assumed: | ||||
Deposits | (652,653) | |||
Other liabilities | (67,240) | |||
Total liabilities assumed | (719,893) | |||
Net assets acquired | 72,817 | |||
Goodwill recorded in the merger | $ 40,019 |
Business Combinations - Schedul
Business Combinations - Schedule of Supplemental Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings per share, pro forma: | |||
Net interest income, pro forma | $ 247,550 | ||
Provision for loan losses, pro forma | 2,211 | ||
Non-interest income, pro forma | 35,010 | ||
Non-interest expense, pro forma | 176,294 | ||
Provision (benefit) for income taxes, pro forma | 20,233 | ||
Net income, pro forma | $ 83,822 | ||
Fully diluted, pro forma (in usd per share) | $ 1.36 | ||
Two River Bancorp Inc. | |||
Earnings per share, actual: | |||
Net interest income, actual | $ 31,354 | ||
Provision for loan losses, actual | 6,471 | ||
Non-interest income, actual | 1,886 | ||
Non-interest expense, actual | 23,422 | ||
Provision (benefit) for income taxes, actual | 809 | ||
Net income, actual | 2,538 | ||
Country Bank Holding Company, Inc | |||
Earnings per share, actual: | |||
Net interest income, actual | 20,456 | ||
Provision for loan losses, actual | 4,398 | ||
Non-interest income, actual | 408 | ||
Non-interest expense, actual | 14,470 | ||
Provision (benefit) for income taxes, actual | 482 | ||
Net income, actual | $ 1,514 | ||
Capital Bank | |||
Earnings per share, actual: | |||
Net interest income, actual | $ 12,700 | ||
Provision for loan losses, actual | 280 | ||
Non-interest income, actual | 991 | ||
Non-interest expense, actual | 11,035 | ||
Provision (benefit) for income taxes, actual | 499 | ||
Net income, actual | $ 1,877 |
Earnings_(Loss) per Share - Rec
Earnings/(Loss) per Share - Reconciliation of Shares Outstanding for Basic and Diluted Earnings/(Loss) per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding (in shares) | 60,363 | 51,039 | 60,349 | 50,792 |
Less: Unallocated ESOP shares (in shares) | (418) | (484) | (435) | (501) |
Unallocated incentive award shares and shares held by deferred compensation plan (in shares) | (10) | (64) | (13) | (49) |
Average basic shares outstanding (in shares) | 59,935 | 50,491 | 59,901 | 50,242 |
Add: Effect of dilutive securities: | ||||
Incentive awards and shares held by deferred compensation plan (in shares) | 0 | 475 | 175 | 588 |
Average diluted shares outstanding (in shares) | 59,935 | 50,966 | 60,076 | 50,830 |
Earnings_(Loss) per Share - Add
Earnings/(Loss) per Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive stock options excluded from earnings/(loss) per share calculations (shares) | 2,251 | 997 | 2,067 | 993 |
Share-based Payment Arrangement | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive stock options excluded from earnings/(loss) per share calculations (shares) | 87 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Available-for-sale, amortized cost | $ 165,920,000 | $ 149,640,000 |
Available-for-sale, gross unrealized gains | 3,717,000 | 1,413,000 |
Available-for-sale, gross unrealized losses | (3,000) | (93,000) |
Available-for-sale, estimated fair value | 169,634,000 | 150,960,000 |
Allowance for Credit Losses | 0 | |
Held-to-maturity, amortized cost | 877,613,000 | |
Amortized Cost | 877,613,000 | 772,975,000 |
Held-to-maturity, gross unrealized gains | 29,249,000 | 8,224,000 |
Held-to-maturity, gross unrealized losses | (4,444,000) | (3,909,000) |
Estimated Fair Value | 902,418,000 | 777,290,000 |
Allowance for Credit Losses | (2,393,000) | 0 |
Total, amortized cost | 1,043,533,000 | 922,615,000 |
Total, gross unrealized gains | 32,966,000 | 9,637,000 |
Total, gross unrealized losses | (4,447,000) | (4,002,000) |
Total, estimated fair value | 1,072,052,000 | 928,250,000 |
Investment securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, amortized cost | 165,680,000 | 149,145,000 |
Available-for-sale, gross unrealized gains | 3,714,000 | 1,408,000 |
Available-for-sale, gross unrealized losses | (3,000) | (93,000) |
Available-for-sale, estimated fair value | 169,391,000 | 150,460,000 |
Allowance for Credit Losses | 0 | |
Held-to-maturity, amortized cost | 292,151,000 | |
Amortized Cost | 208,961,000 | |
Held-to-maturity, gross unrealized gains | 11,089,000 | 2,384,000 |
Held-to-maturity, gross unrealized losses | (4,092,000) | (2,629,000) |
Estimated Fair Value | 299,148,000 | 208,716,000 |
Allowance for Credit Losses | (1,612,000) | |
U.S. government and agency obligations | Investment securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, amortized cost | 158,778,000 | 149,120,000 |
Available-for-sale, gross unrealized gains | 3,653,000 | 1,408,000 |
Available-for-sale, gross unrealized losses | (3,000) | (93,000) |
Available-for-sale, estimated fair value | 162,428,000 | 150,435,000 |
Allowance for Credit Losses | 0 | |
Held-to-maturity, amortized cost | 4,997,000 | |
Amortized Cost | 4,984,000 | |
Held-to-maturity, gross unrealized gains | 14,000 | 14,000 |
Held-to-maturity, gross unrealized losses | 0 | 0 |
Estimated Fair Value | 5,011,000 | 4,998,000 |
Allowance for Credit Losses | 0 | |
State and municipal obligations | Investment securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, amortized cost | 2,402,000 | 25,000 |
Available-for-sale, gross unrealized gains | 0 | 0 |
Available-for-sale, gross unrealized losses | 0 | 0 |
Available-for-sale, estimated fair value | 2,402,000 | 25,000 |
Allowance for Credit Losses | 0 | |
Held-to-maturity, amortized cost | 214,865,000 | |
Amortized Cost | 124,430,000 | |
Held-to-maturity, gross unrealized gains | 9,375,000 | 1,537,000 |
Held-to-maturity, gross unrealized losses | (225,000) | (208,000) |
Estimated Fair Value | 224,015,000 | 125,759,000 |
Allowance for Credit Losses | (33,000) | |
Corporate debt securities | ||
Securities Financing Transaction [Line Items] | ||
Amortized Cost | 38,332,000 | |
Estimated Fair Value | 34,899,000 | |
Corporate debt securities | Investment securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, amortized cost | 4,500,000 | |
Available-for-sale, gross unrealized gains | 61,000 | |
Available-for-sale, gross unrealized losses | 0 | |
Available-for-sale, estimated fair value | 4,561,000 | |
Held-to-maturity, amortized cost | 72,289,000 | |
Amortized Cost | 79,547,000 | |
Held-to-maturity, gross unrealized gains | 1,700,000 | 833,000 |
Held-to-maturity, gross unrealized losses | (3,867,000) | (2,421,000) |
Estimated Fair Value | 70,122,000 | 77,959,000 |
Allowance for Credit Losses | (1,579,000) | |
Mortgage-backed securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, amortized cost | 585,462,000 | |
Amortized Cost | 564,014,000 | |
Held-to-maturity, gross unrealized gains | 18,160,000 | 5,840,000 |
Held-to-maturity, gross unrealized losses | (352,000) | (1,280,000) |
Estimated Fair Value | 603,270,000 | 568,574,000 |
Allowance for Credit Losses | (781,000) | 0 |
Mortgage-backed securities | FHLMC | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, amortized cost | 202,329,000 | |
Amortized Cost | 206,985,000 | |
Held-to-maturity, gross unrealized gains | 6,093,000 | 2,221,000 |
Held-to-maturity, gross unrealized losses | (135,000) | (524,000) |
Estimated Fair Value | 208,287,000 | 208,682,000 |
Allowance for Credit Losses | 0 | |
Mortgage-backed securities | FNMA | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, amortized cost | 240,000 | 495,000 |
Available-for-sale, gross unrealized gains | 3,000 | 5,000 |
Available-for-sale, gross unrealized losses | 0 | 0 |
Available-for-sale, estimated fair value | 243,000 | 500,000 |
Allowance for Credit Losses | 0 | |
Held-to-maturity, amortized cost | 245,524,000 | |
Amortized Cost | 244,428,000 | |
Held-to-maturity, gross unrealized gains | 7,799,000 | 2,680,000 |
Held-to-maturity, gross unrealized losses | (141,000) | (493,000) |
Estimated Fair Value | 253,182,000 | 246,615,000 |
Allowance for Credit Losses | 0 | |
Mortgage-backed securities | GNMA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, amortized cost | 82,230,000 | |
Amortized Cost | 110,661,000 | |
Held-to-maturity, gross unrealized gains | 2,457,000 | 939,000 |
Held-to-maturity, gross unrealized losses | (16,000) | (212,000) |
Estimated Fair Value | 84,671,000 | 111,388,000 |
Allowance for Credit Losses | 0 | |
Mortgage-backed securities | SBA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, amortized cost | 5,634,000 | |
Amortized Cost | 1,940,000 | |
Held-to-maturity, gross unrealized gains | 0 | 0 |
Held-to-maturity, gross unrealized losses | (60,000) | (51,000) |
Estimated Fair Value | 5,574,000 | $ 1,889,000 |
Allowance for Credit Losses | 0 | |
Mortgage-backed securities | CMO | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, amortized cost | 49,745,000 | |
Held-to-maturity, gross unrealized gains | 1,811,000 | |
Held-to-maturity, gross unrealized losses | 0 | |
Estimated Fair Value | 51,556,000 | |
Allowance for Credit Losses | $ (781,000) |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2013 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, allowance for credit loss | $ 0 | $ 0 | ||||
Available-for-sale securities transferred to held-to-maturity securities | $ 536,000,000 | |||||
Unrealized net loss on securities transferred from available-for-sale to held-to-maturity, gross | $ 13,300,000 | |||||
Realized gains on the sale of available-for-sale securities | 244,000 | 244,000 | ||||
Realized gain or losses on the sale of available-for-sale securities | $ 0 | $ 0 | ||||
Equity securities, realized loss | 0 | $ 0 | 53,000 | $ 0 | ||
Corporate debt securities, callable, amortized cost | 38,500,000 | 38,500,000 | ||||
Corporate debt securities, callable, estimated fair value | 39,800,000 | 39,800,000 | ||||
Securities pledged for other debt obligations, at fair value | 456,600,000 | 456,600,000 | $ 475,600,000 | |||
Reverse Repurchase Agreement | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Securities pledged for repurchase agreements, at fair value | $ 148,100,000 | $ 148,100,000 | $ 81,400,000 |
Securities - Allowance for Cred
Securities - Allowance for Credit Losses (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 0 |
Total ending allowance balance | (2,393) |
Investment securities | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 0 |
Provision for credit loss expense | (344) |
Total ending allowance balance | (1,612) |
Mortgage-backed securities | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 0 |
Provision for credit loss expense | (781) |
Total ending allowance balance | (781) |
Cumulative Effect, Period Of Adoption, Adjustment | Investment securities | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | (1,268) |
Cumulative Effect, Period Of Adoption, Adjustment | Mortgage-backed securities | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 0 |
Securities - Carrying Value of
Securities - Carrying Value of Held-to-Maturity Investment Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost | $ 877,613 | $ 772,975 |
Net loss on date of transfer from available-for-sale | (13,347) | (13,347) |
Allowance for credit loss | (2,393) | 0 |
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 9,815 | 9,245 |
Carrying value | $ 871,688 | $ 768,873 |
Securities - Equity Securities
Securities - Equity Securities Realized Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net (loss) gain on equity investments | $ (3,576,000) | $ 89,000 | $ (3,273,000) | $ 330,000 |
Less: Net losses recognized on equity securities sold | 0 | 0 | (53,000) | 0 |
Unrealized (loss) gain recognized on equity securities still held | $ (3,576,000) | $ 89,000 | $ (3,220,000) | $ 330,000 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Amortized Cost | |
Less than one year, amortized cost | $ 95,990 |
Due after one year through five years, amortized cost | 180,827 |
Due after five years through ten years, amortized cost | 78,064 |
Due after ten years, amortized cost | 102,950 |
Total amortized cost | 457,831 |
Estimated Fair Value | |
Less than one year, estimated fair value | 96,765 |
Due after one year through five years, estimated fair value | 186,965 |
Due after five years through ten years, estimated fair value | 75,630 |
Due after ten years, estimated fair value | 109,180 |
Total estimated fair value | $ 468,540 |
Securities - Estimated Fair Val
Securities - Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, less than 12 months, estimated fair value | $ 17,060 | $ 25,021 |
Available-for-sale, less than 12 months, unrealized losses | (3) | (54) |
Available-for-sale, 12 months or longer, estimated fair value | 0 | 22,451 |
Available-for-sale, 12 months or longer, unrealized losses | 0 | (39) |
Available-for-sale, total, estimated fair value | 17,060 | 47,472 |
Available-for-sale, total, unrealized losses | (3) | (93) |
Held-to-maturity, less than 12 months, estimated fair value | 93,761 | 67,314 |
Held-to-maturity, less than 12 months, unrealized losses | (755) | (452) |
Held-to-maturity, 12 months or longer, estimated fair value | 45,684 | 151,085 |
Held-to-maturity, 12 months or longer, unrealized losses | (3,689) | (3,457) |
Held-to-maturity, total, estimated fair value | 139,445 | 218,399 |
Held-to-maturity, total, unrealized losses | (4,444) | (3,909) |
Total securities, less than 12 months, estimated fair value | 110,821 | 92,335 |
Total securities, less than 12 months, unrealized losses | (758) | (506) |
Total securities, 12 months or longer, estimated fair value | 45,684 | 173,536 |
Total securities, 12 months or longer, unrealized losses | (3,689) | (3,496) |
Total securities, estimated fair value | 156,505 | 265,871 |
Total securities, unrealized losses | (4,447) | (4,002) |
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 | 13,064 | 17,035 |
Held-to-maturity, less than 12 months, unrealized losses | (476) | (271) |
Held-to-maturity, 12 months or longer, estimated fair value | 42,282 | 52,159 |
Held-to-maturity, 12 months or longer, unrealized losses | (3,616) | (2,358) |
Held-to-maturity, total, estimated fair value | 55,346 | 69,194 |
Held-to-maturity, total, unrealized losses | (4,092) | (2,629) |
U.S. government and agency obligations | Investment securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, less than 12 months, estimated fair value | 17,060 | 25,021 |
Available-for-sale, less than 12 months, unrealized losses | (3) | (54) |
Available-for-sale, 12 months or longer, estimated fair value | 0 | 22,451 |
Available-for-sale, 12 months or longer, unrealized losses | 0 | (39) |
Available-for-sale, total, estimated fair value | 17,060 | 47,472 |
Available-for-sale, total, unrealized losses | (3) | (93) |
Held-to-maturity, total, unrealized losses | 0 | 0 |
State and municipal obligations | 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 | 3,635 | 7,308 |
Held-to-maturity, less than 12 months, unrealized losses | (42) | (58) |
Held-to-maturity, 12 months or longer, estimated fair value | 7,383 | 14,531 |
Held-to-maturity, 12 months or longer, unrealized losses | (183) | (150) |
Held-to-maturity, total, estimated fair value | 11,018 | 21,839 |
Held-to-maturity, total, unrealized losses | (225) | (208) |
Corporate debt 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 | 9,429 | 9,727 |
Held-to-maturity, less than 12 months, unrealized losses | (434) | (213) |
Held-to-maturity, 12 months or longer, estimated fair value | 34,899 | 37,628 |
Held-to-maturity, 12 months or longer, unrealized losses | (3,433) | (2,208) |
Held-to-maturity, total, estimated fair value | 44,328 | 47,355 |
Held-to-maturity, total, unrealized losses | (3,867) | (2,421) |
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 | 80,697 | 50,279 |
Held-to-maturity, less than 12 months, unrealized losses | (279) | (181) |
Held-to-maturity, 12 months or longer, estimated fair value | 3,402 | 98,926 |
Held-to-maturity, 12 months or longer, unrealized losses | (73) | (1,099) |
Held-to-maturity, total, estimated fair value | 84,099 | 149,205 |
Held-to-maturity, total, unrealized losses | (352) | (1,280) |
Mortgage-backed securities | FHLMC | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, less than 12 months, estimated fair value | 31,267 | 6,329 |
Held-to-maturity, less than 12 months, unrealized losses | (127) | (29) |
Held-to-maturity, 12 months or longer, estimated fair value | 965 | 38,641 |
Held-to-maturity, 12 months or longer, unrealized losses | (8) | (495) |
Held-to-maturity, total, estimated fair value | 32,232 | 44,970 |
Held-to-maturity, total, unrealized losses | (135) | (524) |
Mortgage-backed securities | FNMA | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, less than 12 months, estimated fair value | 39,572 | 13,682 |
Held-to-maturity, less than 12 months, unrealized losses | (127) | (59) |
Held-to-maturity, 12 months or longer, estimated fair value | 485 | 38,568 |
Held-to-maturity, 12 months or longer, unrealized losses | (14) | (434) |
Held-to-maturity, total, estimated fair value | 40,057 | 52,250 |
Held-to-maturity, total, unrealized losses | (141) | (493) |
Mortgage-backed securities | GNMA | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, less than 12 months, estimated fair value | 6,008 | 30,268 |
Held-to-maturity, less than 12 months, unrealized losses | (14) | (93) |
Held-to-maturity, 12 months or longer, estimated fair value | 228 | 19,828 |
Held-to-maturity, 12 months or longer, unrealized losses | (2) | (119) |
Held-to-maturity, total, estimated fair value | 6,236 | 50,096 |
Held-to-maturity, total, unrealized losses | (16) | (212) |
Mortgage-backed securities | SBA | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, less than 12 months, estimated fair value | 3,850 | 0 |
Held-to-maturity, less than 12 months, unrealized losses | (11) | 0 |
Held-to-maturity, 12 months or longer, estimated fair value | 1,724 | 1,889 |
Held-to-maturity, 12 months or longer, unrealized losses | (49) | (51) |
Held-to-maturity, total, estimated fair value | 5,574 | 1,889 |
Held-to-maturity, total, unrealized losses | (60) | $ (51) |
Mortgage-backed securities | CMO | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, less than 12 months, estimated fair value | 0 | |
Held-to-maturity, less than 12 months, unrealized losses | 0 | |
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 | 0 | |
Held-to-maturity, total, unrealized losses | $ 0 |
Securities - Amortized Cost, Es
Securities - Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 877,613 | $ 772,975 |
Estimated Fair Value | 902,418 | $ 777,290 |
Chase Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 10,000 | |
Estimated Fair Value | $ 9,205 | |
Credit Rating Moody’s/ S&P | Baa1/BBB- | |
Wells Fargo Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,495 | |
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 | $ 4,432 | |
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 | $ 4,513 | |
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 | $ 4,577 | |
Credit Rating Moody’s/ S&P | Baa1/BBB- | |
SunTrust Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,670 | |
Credit Rating Moody’s/ S&P | Not Rated/BBB- | |
State Street Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 3,332 | |
Estimated Fair Value | $ 3,007 | |
Credit Rating Moody’s/ S&P | A3/BBB | |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 38,332 | |
Estimated Fair Value | $ 34,899 |
Securities - Credit Quality Ind
Securities - Credit Quality Indicator (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | $ 877,613 |
Mortgage Backed Securities With Credit Quality Indicators | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 49,745 |
Mortgage Backed Securities With Credit Quality Indicators | AAA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 16,909 |
Mortgage Backed Securities With Credit Quality Indicators | AA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 32,836 |
Mortgage Backed Securities With Credit Quality Indicators | A | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Mortgage Backed Securities With Credit Quality Indicators | BBB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Mortgage Backed Securities With Credit Quality Indicators | BB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Investment And Mortgage-Backed Securities | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 341,896 |
Investment And Mortgage-Backed Securities | AAA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 52,189 |
Investment And Mortgage-Backed Securities | AA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 167,456 |
Investment And Mortgage-Backed Securities | A | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 58,350 |
Investment And Mortgage-Backed Securities | BBB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 52,569 |
Investment And Mortgage-Backed Securities | BB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 11,332 |
Investment securities | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 292,151 |
Investment securities | AAA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 35,280 |
Investment securities | AA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 134,620 |
Investment securities | A | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 58,350 |
Investment securities | BBB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 52,569 |
Investment securities | BB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 11,332 |
Investment securities | U.S. government and agency obligations | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 4,997 |
Investment securities | U.S. government and agency obligations | AAA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Investment securities | U.S. government and agency obligations | AA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 4,997 |
Investment securities | U.S. government and agency obligations | A | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Investment securities | U.S. government and agency obligations | BBB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Investment securities | U.S. government and agency obligations | BB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Investment securities | State and municipal obligations | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 214,865 |
Investment securities | State and municipal obligations | AAA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 35,280 |
Investment securities | State and municipal obligations | AA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 128,128 |
Investment securities | State and municipal obligations | A | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 46,390 |
Investment securities | State and municipal obligations | BBB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 5,067 |
Investment securities | State and municipal obligations | BB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Investment securities | Corporate debt securities | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 72,289 |
Investment securities | Corporate debt securities | AAA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Investment securities | Corporate debt securities | AA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 1,495 |
Investment securities | Corporate debt securities | A | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 11,960 |
Investment securities | Corporate debt securities | BBB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 47,502 |
Investment securities | Corporate debt securities | BB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 11,332 |
CMO | Mortgage Backed Securities With Credit Quality Indicators | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 49,745 |
CMO | Mortgage Backed Securities With Credit Quality Indicators | AAA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 16,909 |
CMO | Mortgage Backed Securities With Credit Quality Indicators | AA | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 32,836 |
CMO | Mortgage Backed Securities With Credit Quality Indicators | A | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
CMO | Mortgage Backed Securities With Credit Quality Indicators | BBB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
CMO | Mortgage Backed Securities With Credit Quality Indicators | BB | |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | $ 0 |
Loans Receivable, Net - Compone
Loans Receivable, Net - Components of Loans Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | $ 8,000,978 | $ 6,214,652 | ||||
Deferred origination (fees) costs, net | (1,238) | 9,880 | ||||
Allowance for credit losses | (56,350) | $ (38,509) | (16,852) | $ (16,636) | $ (16,135) | $ (16,577) |
Total loans, net | 7,943,390 | 6,207,680 | ||||
Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 5,228,993 | 3,485,497 | ||||
Commercial | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 599,188 | 396,434 | ||||
Commercial | Commercial real estate – owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 1,176,529 | 792,653 | ||||
Commercial | Commercial real estate – investor | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 3,453,276 | 2,296,410 | ||||
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 2,771,985 | 2,729,155 | ||||
Allowance for credit losses | (3,248) | $ (4,220) | (591) | $ (450) | $ (512) | $ (486) |
Consumer | Residential real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 2,407,178 | 2,321,157 | ||||
Consumer | Home equity loans and lines | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 301,712 | 318,576 | ||||
Consumer | Other consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | $ 63,095 | $ 89,422 |
Loans Receivable, Net - Credit
Loans Receivable, Net - Credit Grades and Risk Characteristics (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 1,284,492 | |
2019 | 1,377,097 | |
2018 | 879,782 | |
2017 | 841,628 | |
2016 | 688,999 | |
2015 and prior | 2,562,378 | |
Revolving lines of credit | 366,602 | |
Total | 8,000,978 | $ 6,214,652 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 238,681 | |
2019 | 49,506 | |
2018 | 34,717 | |
2017 | 26,564 | |
2016 | 39,298 | |
2015 and prior | 74,145 | |
Revolving lines of credit | 136,277 | |
Total | 599,188 | |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 238,326 | |
2019 | 47,785 | |
2018 | 32,607 | |
2017 | 23,576 | |
2016 | 38,353 | |
2015 and prior | 70,681 | |
Revolving lines of credit | 123,071 | |
Total | 574,399 | |
Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 629 | |
2018 | 759 | |
2017 | 1,431 | |
2016 | 892 | |
2015 and prior | 200 | |
Revolving lines of credit | 2,597 | |
Total | 6,508 | |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 355 | |
2019 | 1,092 | |
2018 | 1,351 | |
2017 | 1,557 | |
2016 | 53 | |
2015 and prior | 3,264 | |
Revolving lines of credit | 10,609 | |
Total | 18,281 | |
Commercial real estate – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 78,646 | |
2019 | 160,876 | |
2018 | 147,145 | |
2017 | 141,260 | |
2016 | 129,100 | |
2015 and prior | 507,524 | |
Revolving lines of credit | 11,978 | |
Total | 1,176,529 | |
Commercial real estate – owner occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 78,646 | |
2019 | 125,479 | |
2018 | 132,958 | |
2017 | 136,186 | |
2016 | 117,713 | |
2015 and prior | 466,072 | |
Revolving lines of credit | 10,742 | |
Total | 1,067,796 | |
Commercial real estate – owner occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 1,736 | |
2018 | 8,263 | |
2017 | 1,374 | |
2016 | 5,440 | |
2015 and prior | 15,477 | |
Revolving lines of credit | 393 | |
Total | 32,683 | |
Commercial real estate – owner occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 33,661 | |
2018 | 5,924 | |
2017 | 3,700 | |
2016 | 5,947 | |
2015 and prior | 25,975 | |
Revolving lines of credit | 843 | |
Total | 76,050 | |
Commercial real estate – investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 483,779 | |
2019 | 647,497 | |
2018 | 333,460 | |
2017 | 458,517 | |
2016 | 341,330 | |
2015 and prior | 975,349 | |
Revolving lines of credit | 213,344 | |
Total | 3,453,276 | |
Commercial real estate – investor | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 479,468 | |
2019 | 632,528 | |
2018 | 309,128 | |
2017 | 437,510 | |
2016 | 323,544 | |
2015 and prior | 894,433 | |
Revolving lines of credit | 209,485 | |
Total | 3,286,096 | |
Commercial real estate – investor | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 7,296 | |
2018 | 22,274 | |
2017 | 9,756 | |
2016 | 9,657 | |
2015 and prior | 48,393 | |
Revolving lines of credit | 150 | |
Total | 97,526 | |
Commercial real estate – investor | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 4,311 | |
2019 | 7,673 | |
2018 | 2,058 | |
2017 | 11,251 | |
2016 | 8,129 | |
2015 and prior | 32,523 | |
Revolving lines of credit | 3,709 | |
Total | 69,654 | |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,771,985 | 2,729,155 |
Consumer | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 464,585 | |
2019 | 489,832 | |
2018 | 269,891 | |
2017 | 186,729 | |
2016 | 161,255 | |
2015 and prior | 834,886 | |
Revolving lines of credit | 0 | |
Total | 2,407,178 | $ 2,321,157 |
Consumer | Home Equity Lines and Other Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 18,801 | |
2019 | 29,386 | |
2018 | 94,569 | |
2017 | 28,558 | |
2016 | 18,016 | |
2015 and prior | 170,474 | |
Revolving lines of credit | 5,003 | |
Total | 364,807 | |
Consumer | Pass | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 464,423 | |
2019 | 489,832 | |
2018 | 268,996 | |
2017 | 185,249 | |
2016 | 161,255 | |
2015 and prior | 825,373 | |
Revolving lines of credit | 0 | |
Total | 2,395,128 | |
Consumer | Pass | Home Equity Lines and Other Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 18,711 | |
2019 | 28,994 | |
2018 | 94,536 | |
2017 | 28,558 | |
2016 | 17,947 | |
2015 and prior | 166,364 | |
Revolving lines of credit | 5,003 | |
Total | 360,113 | |
Consumer | Special Mention | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 162 | |
2019 | 0 | |
2018 | 0 | |
2017 | 1,112 | |
2016 | 0 | |
2015 and prior | 2,891 | |
Revolving lines of credit | 0 | |
Total | 4,165 | |
Consumer | Special Mention | Home Equity Lines and Other Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 90 | |
2019 | 167 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 and prior | 328 | |
Revolving lines of credit | 0 | |
Total | 585 | |
Consumer | Substandard | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 895 | |
2017 | 368 | |
2016 | 0 | |
2015 and prior | 6,622 | |
Revolving lines of credit | 0 | |
Total | 7,885 | |
Consumer | Substandard | Home Equity Lines and Other Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 225 | |
2018 | 33 | |
2017 | 0 | |
2016 | 69 | |
2015 and prior | 3,782 | |
Revolving lines of credit | 0 | |
Total | $ 4,109 |
Loans Receivable, Net - Allowan
Loans Receivable, Net - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Allowance for credit losses on loans | ||||||
Balance at beginning of period | $ 38,509 | $ 16,135 | $ 16,852 | $ 16,577 | ||
Credit loss (benefit) expense | 32,836 | 50,075 | ||||
Initial allowance for credit losses on PCD loans | 2,639 | |||||
Credit loss (benefit) expense | 35,714 | 305 | 55,332 | 1,281 | ||
Charge-offs | (15,411) | (353) | (16,964) | (2,359) | ||
Recoveries | 416 | 549 | 1,047 | 1,137 | ||
Balance at end of period | 56,350 | 16,636 | 56,350 | 16,636 | ||
Ending allowance balance attributed to loans | ||||||
Individually evaluated for impairment | $ 476 | |||||
Collectively evaluated for impairment | 16,376 | |||||
Total ending allowance balance | 38,509 | 16,636 | 16,852 | 16,636 | $ 56,350 | 16,852 |
Loans | ||||||
Loans individually evaluated for impairment | 26,510 | |||||
Loans collectively evaluated for impairment | 6,174,877 | |||||
Total | 8,000,978 | 6,201,387 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 2,701 | |||||
Ending allowance balance attributed to loans | ||||||
Total ending allowance balance | 2,701 | 2,701 | ||||
Commercial and industrial | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 4,979 | 1,639 | 1,458 | 1,609 | ||
Credit loss (benefit) expense | (106) | (275) | ||||
Initial allowance for credit losses on PCD loans | 1,221 | |||||
Credit loss (benefit) expense | (352) | (406) | ||||
Charge-offs | (575) | 0 | (575) | 0 | ||
Recoveries | 29 | 49 | 82 | 133 | ||
Balance at end of period | 4,327 | 1,336 | 4,327 | 1,336 | ||
Ending allowance balance attributed to loans | ||||||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 1,458 | |||||
Total ending allowance balance | 4,327 | 1,336 | 1,458 | 1,609 | 4,327 | 1,458 |
Loans | ||||||
Loans individually evaluated for impairment | 243 | |||||
Loans collectively evaluated for impairment | 395,848 | |||||
Total | 599,188 | 396,091 | ||||
Commercial and industrial | Cumulative Effect, Period Of Adoption, Adjustment | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 2,416 | |||||
Ending allowance balance attributed to loans | ||||||
Total ending allowance balance | 2,416 | 2,416 | ||||
Commercial real estate – owner occupied | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 2,765 | 2,868 | 2,893 | 2,277 | ||
Credit loss (benefit) expense | 5,166 | 6,120 | ||||
Initial allowance for credit losses on PCD loans | 26 | |||||
Credit loss (benefit) expense | 80 | 1,192 | ||||
Charge-offs | (2,252) | (142) | (2,253) | (663) | ||
Recoveries | 2 | 114 | 4 | 114 | ||
Balance at end of period | 5,681 | 2,920 | 5,681 | 2,920 | ||
Ending allowance balance attributed to loans | ||||||
Individually evaluated for impairment | 474 | |||||
Collectively evaluated for impairment | 2,419 | |||||
Total ending allowance balance | 5,681 | 2,920 | 2,893 | 2,277 | 5,681 | 2,893 |
Loans | ||||||
Loans individually evaluated for impairment | 6,163 | |||||
Loans collectively evaluated for impairment | 785,778 | |||||
Total | 1,176,529 | 791,941 | ||||
Commercial real estate – owner occupied | Cumulative Effect, Period Of Adoption, Adjustment | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | (1,109) | |||||
Ending allowance balance attributed to loans | ||||||
Total ending allowance balance | (1,109) | (1,109) | ||||
Commercial Real Estate – Investor | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 8,860 | 8,406 | 9,883 | 8,770 | ||
Credit loss (benefit) expense | 30,131 | 34,208 | ||||
Initial allowance for credit losses on PCD loans | 260 | |||||
Credit loss (benefit) expense | 711 | 26 | ||||
Charge-offs | (12,037) | (57) | (12,062) | (143) | ||
Recoveries | 32 | 292 | 92 | 699 | ||
Balance at end of period | 26,986 | 9,352 | 26,986 | 9,352 | ||
Ending allowance balance attributed to loans | ||||||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 9,883 | |||||
Total ending allowance balance | 26,986 | 9,352 | 9,883 | 9,352 | 26,986 | 9,883 |
Loans | ||||||
Loans individually evaluated for impairment | 5,584 | |||||
Loans collectively evaluated for impairment | 2,279,114 | |||||
Total | 3,453,276 | 2,284,698 | ||||
Commercial Real Estate – Investor | Cumulative Effect, Period Of Adoption, Adjustment | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | (5,395) | |||||
Ending allowance balance attributed to loans | ||||||
Total ending allowance balance | (5,395) | (5,395) | ||||
Residential Real Estate | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 17,685 | 1,966 | 2,002 | 2,413 | ||
Credit loss (benefit) expense | (1,891) | 10,749 | ||||
Initial allowance for credit losses on PCD loans | 109 | |||||
Credit loss (benefit) expense | 193 | 899 | ||||
Charge-offs | (6) | (27) | (1,351) | (1,221) | ||
Recoveries | 320 | 39 | 766 | 80 | ||
Balance at end of period | 16,108 | 2,171 | 16,108 | 2,171 | ||
Ending allowance balance attributed to loans | ||||||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 2,002 | |||||
Total ending allowance balance | 16,108 | 2,171 | 2,002 | 2,413 | 16,108 | 2,002 |
Loans | ||||||
Loans individually evaluated for impairment | 11,009 | |||||
Loans collectively evaluated for impairment | 2,309,812 | |||||
Total | 2,407,178 | 2,320,821 | ||||
Residential Real Estate | Cumulative Effect, Period Of Adoption, Adjustment | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 3,833 | |||||
Ending allowance balance attributed to loans | ||||||
Total ending allowance balance | 3,833 | 3,833 | ||||
Consumer | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 4,220 | 512 | 591 | 486 | ||
Credit loss (benefit) expense | (464) | (727) | ||||
Initial allowance for credit losses on PCD loans | 1,023 | |||||
Credit loss (benefit) expense | 10 | 185 | ||||
Charge-offs | (541) | (127) | (723) | (332) | ||
Recoveries | 33 | 55 | 103 | 111 | ||
Balance at end of period | 3,248 | 450 | 3,248 | 450 | ||
Ending allowance balance attributed to loans | ||||||
Individually evaluated for impairment | 2 | |||||
Collectively evaluated for impairment | 589 | |||||
Total ending allowance balance | 3,248 | 450 | 3,248 | 486 | 3,248 | 591 |
Loans | ||||||
Loans individually evaluated for impairment | 3,511 | |||||
Loans collectively evaluated for impairment | 404,325 | |||||
Total | 364,807 | 407,836 | ||||
Consumer | Cumulative Effect, Period Of Adoption, Adjustment | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 2,981 | |||||
Ending allowance balance attributed to loans | ||||||
Total ending allowance balance | 2,981 | 2,981 | ||||
Unallocated | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | 0 | 744 | 25 | 1,022 | ||
Credit loss (benefit) expense | 0 | 0 | ||||
Initial allowance for credit losses on PCD loans | 0 | |||||
Credit loss (benefit) expense | (337) | (615) | ||||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Balance at end of period | 0 | 407 | 0 | 407 | ||
Ending allowance balance attributed to loans | ||||||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 25 | |||||
Total ending allowance balance | $ 0 | $ 407 | 0 | $ 1,022 | $ 0 | 25 |
Loans | ||||||
Loans individually evaluated for impairment | 0 | |||||
Loans collectively evaluated for impairment | 0 | |||||
Total | 0 | |||||
Unallocated | Cumulative Effect, Period Of Adoption, Adjustment | ||||||
Allowance for credit losses on loans | ||||||
Balance at beginning of period | (25) | |||||
Ending allowance balance attributed to loans | ||||||
Total ending allowance balance | $ (25) | $ (25) |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 26,500 | ||
With no related allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 25,735 | ||
Recorded Investment | 24,313 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | $ 28,313 | $ 28,807 | |
Interest Income Recognized | 291 | 649 | |
With an allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 2,378 | ||
Recorded Investment | 2,197 | ||
Allowance for Credit Losses Allocated | 476 | ||
Average Recorded Investment | 3,197 | 2,131 | |
Interest Income Recognized | 0 | 36 | |
Commercial and industrial | With no related allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 265 | ||
Recorded Investment | 243 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | 249 | 708 | |
Interest Income Recognized | 1 | 4 | |
Commercial and industrial | With an allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 0 | ||
Recorded Investment | 0 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Commercial real estate – owner occupied | With no related allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 4,062 | ||
Recorded Investment | 3,968 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | 3,808 | 4,337 | |
Interest Income Recognized | 80 | 122 | |
Commercial real estate – owner occupied | With an allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 2,376 | ||
Recorded Investment | 2,195 | ||
Allowance for Credit Losses Allocated | 474 | ||
Average Recorded Investment | 3,197 | 0 | |
Interest Income Recognized | 0 | 0 | |
Commercial real estate – investor | With no related allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 6,665 | ||
Recorded Investment | 5,584 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | 10,882 | 10,501 | |
Interest Income Recognized | 22 | 158 | |
Commercial real estate – investor | With an allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 0 | ||
Recorded Investment | 0 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | 0 | 2,131 | |
Interest Income Recognized | 0 | 36 | |
Residential real estate | With no related allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 11,009 | ||
Recorded Investment | 11,009 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | 10,104 | 10,090 | |
Interest Income Recognized | 140 | 271 | |
Residential real estate | With an allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 0 | ||
Recorded Investment | 0 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Consumer | With no related allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 3,734 | ||
Recorded Investment | 3,509 | ||
Allowance for Credit Losses Allocated | 0 | ||
Average Recorded Investment | 3,270 | 3,171 | |
Interest Income Recognized | 48 | 94 | |
Consumer | With an allowance recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 2 | ||
Recorded Investment | 2 | ||
Allowance for Credit Losses Allocated | $ 2 | ||
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 (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | $ 42,042 | $ 17,849 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | 3,263 | 207 |
Commercial real estate – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | 12,376 | 4,811 |
Commercial real estate – investor | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | 10,259 | 2,917 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | 12,620 | 7,181 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | $ 3,524 | $ 2,733 |
Loans Receivable, Net - Aging o
Loans Receivable, Net - Aging of Recorded Investment in Past Due Loans Excluding PCI Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Greater than 90 Days Past Due | $ 26,928 | $ 9,286 |
Total Past Due | 41,446 | 26,636 |
Loans Not Past Due | 7,959,532 | 6,174,751 |
Total | 8,000,978 | 6,201,387 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,319 | 11,231 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 12,199 | 6,119 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Greater than 90 Days Past Due | 1,663 | 207 |
Total Past Due | 2,466 | 307 |
Loans Not Past Due | 596,722 | 395,784 |
Total | 599,188 | 396,091 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 680 | 100 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 123 | 0 |
Commercial real estate – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Greater than 90 Days Past Due | 8,302 | 1,040 |
Total Past Due | 8,448 | 3,784 |
Loans Not Past Due | 1,168,081 | 788,157 |
Total | 1,176,529 | 791,941 |
Commercial real estate – owner occupied | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 68 | 1,541 |
Commercial real estate – owner occupied | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 78 | 1,203 |
Commercial real estate – investor | ||
Financing Receivable, Past Due [Line Items] | ||
Greater than 90 Days Past Due | 4,969 | 2,792 |
Total Past Due | 12,429 | 4,111 |
Loans Not Past Due | 3,440,847 | 2,280,587 |
Total | 3,453,276 | 2,284,698 |
Commercial real estate – investor | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 212 | 381 |
Commercial real estate – investor | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,248 | 938 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Greater than 90 Days Past Due | 7,885 | 2,859 |
Total Past Due | 12,662 | 14,507 |
Loans Not Past Due | 2,394,516 | 2,306,314 |
Total | 2,407,178 | 2,320,821 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 612 | 8,161 |
Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,165 | 3,487 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Greater than 90 Days Past Due | 4,109 | 2,388 |
Total Past Due | 5,441 | 3,927 |
Loans Not Past Due | 359,366 | 403,909 |
Total | 364,807 | 407,836 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 747 | 1,048 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 585 | $ 491 |
Loans Receivable, Net - Trouble
Loans Receivable, Net - Troubled Debt Restructurings (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)SecurityLoan | Sep. 30, 2019USD ($)SecurityLoan | Sep. 30, 2020USD ($)SecurityLoan | Sep. 30, 2019USD ($)SecurityLoan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans, Which Subsequently Defaulted | SecurityLoan | 0 | 0 | 0 | 0 |
Recorded Investment, Which Subsequently Defaulted | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 1 | 1 | 5 | 5 |
Pre-modification Recorded Investment | $ 16,000 | $ 54,000 | $ 175,000 | $ 496,000 |
Post-modification Recorded Investment | $ 16,000 | $ 54,000 | $ 193,000 | $ 516,000 |
Commercial real estate – owner occupied | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 1 | |||
Pre-modification Recorded Investment | $ 1,112,000 | |||
Post-modification Recorded Investment | $ 1,143,000 | |||
Commercial real estate – investor | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 1 | 1 | ||
Pre-modification Recorded Investment | $ 928,000 | $ 928,000 | ||
Post-modification Recorded Investment | $ 993,000 | $ 993,000 | ||
Residential real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 1 | 5 | 5 | |
Pre-modification Recorded Investment | $ 418,000 | $ 849,000 | $ 921,000 | |
Post-modification Recorded Investment | $ 418,000 | $ 865,000 | $ 972,000 |
Loans Receivable, Net - PCD Loa
Loans Receivable, Net - PCD Loans Acquired (Details) $ in Thousands | Jan. 01, 2020USD ($) |
Two River | |
Financing Receivable, Impaired [Line Items] | |
Purchase price of loans at acquisition | $ 26,354 |
Allowance for credit losses at acquisition | 1,343 |
Non-credit discount at acquisition | 3,589 |
Par value of acquired loans at acquisition | 31,286 |
Country Bank Holding Company, Inc | |
Financing Receivable, Impaired [Line Items] | |
Purchase price of loans at acquisition | 24,667 |
Allowance for credit losses at acquisition | 1,296 |
Non-credit discount at acquisition | 5,334 |
Par value of acquired loans at acquisition | $ 31,297 |
Loans Receivable, Net - Summa_2
Loans Receivable, Net - Summary of Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 3,183 | $ 3,630 |
Acquisition | 0 | 691 |
Accretion | (599) | (1,783) |
Reclassification from non-accretable difference | 69 | 115 |
Ending balance | $ 2,653 | $ 2,653 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired loans on non-accrual commercial real estate, multi-family, land, construction, commercial and industrial loans | $ 250,000 | |||
Impaired loan portfolio total | 26,500,000 | |||
Specific reserves to loans accruing troubled debt restructurings | $ 448,000 | 476,000 | ||
Average balance of impaired loans | $ 31,500,000 | $ 30,900,000 | ||
Financing receivables 90 days past due and still accruing | 0 | 0 | ||
Troubled debt restructured loans | 22,600,000 | 24,600,000 | ||
Non-accrual loan total troubled debt restructurings | 9,900,000 | 6,600,000 | ||
Troubled debt restructured loans with accrual interest | 12,800,000 | $ 18,000,000 | ||
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 3,300,000 | |||
Commercial real estate – owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 12,400,000 | |||
Commercial Real Estate – Investor | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 10,300,000 | |||
Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 1,700,000 | |||
Foreclosed property held | $ 106,000 |
Deposits - Summary of Major Typ
Deposits - Summary of Major Types of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Banking and Thrift, Other Disclosures [Abstract] | ||
Non-interest-bearing | $ 2,240,799 | $ 1,377,396 |
Interest-bearing checking | 3,317,296 | 2,539,428 |
Money market deposit | 691,872 | 578,147 |
Savings | 1,471,554 | 898,174 |
Time deposits | 1,561,767 | 935,632 |
Total deposits | $ 9,283,288 | $ 6,328,777 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Banking and Thrift, Other Disclosures [Abstract] | ||
Time deposits, $250,000 and over | $ 544.3 | $ 150.6 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Financial Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | $ 169,634 | $ 150,960 |
Equity investments | 63,846 | 10,136 |
Interest rate swap liability | 55,700 | 10,700 |
Other real estate owned | 106 | 264 |
Items measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | 169,634 | 150,960 |
Equity investments | 63,846 | 10,136 |
Interest rate swap asset | 55,516 | 10,141 |
Interest rate swap liability | (55,719) | (10,708) |
Items measured on a recurring basis | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Equity investments | 63,846 | 10,136 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Items measured on a recurring basis | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | 167,232 | 150,935 |
Equity investments | 0 | 0 |
Interest rate swap asset | 55,516 | 10,141 |
Interest rate swap liability | (55,719) | (10,708) |
Items measured on a recurring basis | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | 2,402 | 25 |
Equity investments | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Items measured on a nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 106 | 264 |
Items measured on a nonrecurring basis | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 27,562 | 8,794 |
Items measured on a nonrecurring basis | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Items measured on a nonrecurring basis | Level 1 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Items measured on a nonrecurring basis | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Items measured on a nonrecurring basis | Level 2 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Items measured on a nonrecurring basis | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 106 | 264 |
Items measured on a nonrecurring basis | Level 3 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | $ 27,562 | $ 8,794 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Securities Available for Sale Reconciliation (Details) - Items measured on a recurring basis - Level 3 Inputs - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Debt Securities, Available For Sale, Fair Value [Roll Forward] | ||
Beginning Balance | $ 2,402 | $ 25 |
Total gains (losses) included in earnings | 0 | 0 |
Purchases | 0 | 2,377 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 2,402 | $ 2,402 |
Fair Value Measurements - Book
Fair Value Measurements - Book Value and Estimated Fair Value of Bank's Significant Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Debt securities held-to-maturity | $ 902,418 | $ 777,290 |
Restricted equity investments, at cost | 67,505 | 62,356 |
Financial Liabilities: | ||
Time deposits | 1,561,767 | 935,632 |
Securities sold under agreements to repurchase with retail customers | 142,823 | 71,739 |
Book Value | ||
Financial Assets: | ||
Cash and due from banks | 980,870 | 120,544 |
Debt securities held-to-maturity | 871,688 | 768,873 |
Restricted equity investments, at cost | 67,505 | 62,356 |
Loans receivable, net and loans held-for-sale | 8,332,153 | 6,207,680 |
Financial Liabilities: | ||
Deposits other than time deposits | 7,721,521 | 5,393,145 |
Time deposits | 1,561,767 | 935,632 |
Federal Home Loan Bank advances and other borrowings | 590,393 | 616,061 |
Securities sold under agreements to repurchase with retail customers | 142,823 | 71,739 |
Level 1 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 980,870 | 120,544 |
Debt securities held-to-maturity | 0 | 0 |
Restricted equity investments, at cost | 0 | 0 |
Loans receivable, net and loans held-for-sale | 0 | 0 |
Financial Liabilities: | ||
Deposits other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Securities sold under agreements to repurchase with retail customers | 142,823 | 71,739 |
Level 2 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Debt securities held-to-maturity | 900,099 | 774,805 |
Restricted equity investments, at cost | 0 | 0 |
Loans receivable, net and loans held-for-sale | 0 | 0 |
Financial Liabilities: | ||
Deposits other than time deposits | 7,721,521 | 5,393,145 |
Time deposits | 1,578,325 | 936,318 |
Federal Home Loan Bank advances and other borrowings | 619,102 | 626,225 |
Securities sold under agreements to repurchase with retail customers | 0 | 0 |
Level 3 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Debt securities held-to-maturity | 2,320 | 2,485 |
Restricted equity investments, at cost | 67,505 | 62,356 |
Loans receivable, net and loans held-for-sale | 8,400,464 | 6,173,237 |
Financial Liabilities: | ||
Deposits other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Securities sold under agreements to repurchase with retail customers | $ 0 | $ 0 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities, and Other Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||
Collateral already posted, fair value | $ 57,500 | $ 57,500 | $ 13,700 | ||
Derivative liability | 55,700 | 55,700 | 10,700 | ||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Income (expense) in fair value adjustments | 15 | $ 407 | 364 | $ 602 | |
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 711,400 | $ 711,400 | $ 337,600 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities, and Other Financial Instruments - Notional and Fair Value of Derivatives Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other assets | ||
Derivative [Line Items] | ||
Credit risk derivative asset, fair value | $ 55,516 | $ 10,141 |
Other liabilities | ||
Derivative [Line Items] | ||
Credit risk derivative liability, fair value | $ 55,719 | $ 10,708 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020lease | |
Leases [Abstract] | |
Number of finance leases | 1 |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease ROU asset | $ 24,843 | $ 18,682 |
Finance lease ROU asset | 1,744 | 1,534 |
Total Lease ROU Asset | 26,587 | 20,216 |
Operating lease liability | 25,232 | 18,893 |
Finance lease liability | 2,145 | 1,953 |
Total Lease Liability | $ 27,377 | $ 20,846 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherBorrowings | us-gaap:OtherBorrowings |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term (years) | 7 years 7 months 20 days | 9 years 8 months 8 days |
Finance lease, weighted average remaining lease term (years) | 8 years 10 months 6 days | 9 years 7 months 6 days |
Operating lease, weighted average discount rate (percent) | 2.95% | 3.45% |
Finance lease, weighted average discount rate (percent) | 5.63% | 5.63% |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lease Expense | ||||
Operating Lease Expense | $ 1,585 | $ 995 | $ 4,898 | $ 2,963 |
Finance Lease Expense: | ||||
Amortization of ROU assets | 43 | 41 | 124 | 234 |
Interest on lease liabilities | 27 | 29 | 80 | 147 |
Total | 1,655 | 1,065 | 5,102 | 3,344 |
Operating cash flows from operating leases | 1,756 | 969 | 4,808 | 2,834 |
Operating cash flows from finance leases | 27 | 29 | 80 | 147 |
Financing cash flows from finance leases | $ 47 | $ 46 | $ 141 | $ 217 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments for Operating and Financing Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finance Lease | ||
2021 | $ 306 | |
2022 | 307 | |
2023 | 307 | |
2024 | 307 | |
2025 | 307 | |
Thereafter | 1,182 | |
Total | 2,716 | |
Less: Imputed Interest | (571) | |
Total Lease Liabilities | 2,145 | $ 1,953 |
Operating Leases | ||
2021 | 6,188 | |
2022 | 5,634 | |
2023 | 3,547 | |
2024 | 2,813 | |
2025 | 2,471 | |
Thereafter | 8,236 | |
Total | 28,889 | |
Less: Imputed Interest | (3,657) | |
Total Lease Liabilities | $ 25,232 | $ 18,893 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event - USD ($) $ in Thousands | Oct. 29, 2020 | Oct. 16, 2020 | Dec. 31, 2020 |
Commercial Loans | |||
Subsequent Event [Line Items] | |||
Sale of loans held-for-sale | $ 25,400 | ||
Gain (loss) on sale of loans | $ (92) | ||
PPP Loans | |||
Subsequent Event [Line Items] | |||
Sale of loans held-for-sale | $ 298,100 | ||
Gain (loss) on sale of loans | $ 5,100 |