Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | PEAPACK-GLADSTONE FINANCIAL CORPORATION | |
Entity Central Index Key | 0001050743 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2022 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 18,370,312 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Trading Symbol | PGC | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-16197 | |
Entity Tax Identification Number | 22-3537895 | |
Entity Address, Address Line One | 500 Hills Drive | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Bedminster | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07921-0700 | |
City Area Code | 908 | |
Local Phone Number | 234-0700 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | NJ | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Cash and due from banks | $ 8,849 | $ 5,929 | |
Interest-earning deposits | 105,111 | 140,875 | |
Total cash and cash equivalents | 113,960 | 146,804 | |
Securities available for sale | 601,163 | 796,753 | |
Securities held to maturity (fair value $100,314 at March 31, 2022 and $108,460 at December 31, 2021) | 106,816 | 108,680 | |
Equity security, at fair value | 14,003 | 14,685 | |
FHLB and FRB stock, at cost | 18,570 | 12,950 | |
Loans held for sale, at fair value | 605 | 3,040 | |
Loans held for sale, at lower of cost or fair value | 26,350 | 34,051 | |
Loans | 5,122,202 | 4,806,721 | |
Less: Allowance for credit losses | [1] | 58,386 | 61,697 |
Net loans | 5,063,816 | 4,745,024 | |
Premises and equipment | 22,960 | 23,044 | |
Accrued interest receivable | 22,890 | 21,589 | |
Bank owned life insurance | 46,805 | 46,663 | |
Goodwill | 36,212 | 36,212 | |
Other intangible assets | 12,259 | 12,690 | |
Finance lease right-of-use assets | 3,395 | 3,582 | |
Operating lease right-of-use assets | 14,725 | 9,775 | |
Due from brokers | 120,245 | ||
Other assets | 30,890 | 62,451 | |
TOTAL ASSETS | 6,255,664 | 6,077,993 | |
Deposits: | |||
Noninterest-bearing demand deposits | 1,023,208 | 956,482 | |
Interest-bearing deposits: | |||
Checking | [2] | 2,362,987 | 2,287,894 |
Savings | 162,116 | 154,914 | |
Money market accounts | 1,304,017 | 1,307,051 | |
Certificates of deposit - retail | 384,909 | 409,608 | |
Certificates of deposit - listing service | 31,348 | 31,382 | |
Subtotal deposits | 5,268,585 | 5,147,331 | |
Interest-bearing demand - brokered | 85,000 | 85,000 | |
Certificates of deposit - brokered | 33,831 | 33,818 | |
Total deposits | 5,387,416 | 5,266,149 | |
Short-term borrowings | 122,085 | ||
Finance lease liabilities | 5,573 | 5,820 | |
Operating lease liabilities | 15,155 | 10,111 | |
Subordinated debt, net | 132,772 | 132,701 | |
Deferred tax liabilities, net | 26,916 | 39,322 | |
Accrued expenses and other liabilities | 42,321 | 77,502 | |
TOTAL LIABILITIES | 5,732,238 | 5,531,605 | |
SHAREHOLDERS’ EQUITY | |||
Preferred stock (no par value; authorized 500,000 shares; liquidation preference of $1,000 per share) | |||
Common stock (no par value; stated value $0.83 per share; authorized 42,000,000 shares; issued shares, 20,933,112 at March 31, 2022 and 20,656,810 at December 31, 2021; outstanding shares, 18,370,312 at March 31, 2022 and 18,393,888 at December 31, 2021 | 17,450 | 17,220 | |
Surplus | 332,474 | 332,358 | |
Treasury stock at cost, 2,562,800 shares at March 31, 2022 and 2,262,922 shares at December 31, 2021 | (76,278) | (65,104) | |
Retained earnings | 290,718 | 274,288 | |
Accumulated other comprehensive loss, net of income tax | (40,938) | (12,374) | |
TOTAL SHAREHOLDERS’ EQUITY | 523,426 | 546,388 | |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | $ 6,255,664 | $ 6,077,993 | |
[1] | Commencing on January 1, 2022, the allowance calculation is based on the current expected credit loss methodology. Prior to January 1, 2022, the calculation was based on the incurred loss methodology. | ||
[2] | Interest-bearing checking includes |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Securities held to maturity fair value | $ 100,314 | $ 108,460 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 |
Common stock, stated value | $ 0.83 | $ 0.83 |
Common stock, shares authorized | 42,000,000 | 42,000,000 |
Common stock, shares issued | 20,933,112 | 20,656,810 |
Common stock, shares outstanding | 18,370,312 | 18,393,888 |
Treasury stock, shares | 2,562,800 | 2,262,922 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
INTEREST INCOME | |||
Interest and fees on loans | $ 40,472 | $ 35,384 | |
Interest on investments: | |||
Taxable | 3,607 | 2,629 | |
Tax-exempt | 21 | 43 | |
Interest on loans held for sale | 11 | 55 | |
Interest on interest-earning deposits | 29 | 128 | |
Total interest income | 44,140 | 38,239 | |
INTEREST EXPENSE | |||
Interest on savings and interest-bearing deposit accounts | 1,782 | 1,789 | |
Interest on certificates of deposit | 606 | 1,470 | |
Interest on borrowed funds | 64 | 209 | |
Interest on finance lease liability | 68 | 79 | |
Interest on subordinated debt | 1,364 | 2,145 | |
Subtotal - interest expense | 3,884 | 5,692 | |
Interest on interest-bearing demand - brokered | 373 | 493 | |
Interest on certificates of deposits - brokered | 261 | 261 | |
Total interest expense | 4,518 | 6,446 | |
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 39,622 | 31,793 | |
Provision for credit losses (1) | [1] | 2,375 | 225 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 37,247 | 31,568 | |
OTHER INCOME | |||
Wealth management fee income | 14,834 | 12,131 | |
Service charges and fees | 952 | 846 | |
Bank owned life insurance | 313 | 611 | |
Gain on loans held for sale at fair value (mortgage banking) | 247 | 1,025 | |
Gain on loans held for sale at lower of cost or fair value | 282 | ||
Gain on sale of SBA loans | 2,844 | 1,449 | |
Corporate advisory fee income | 1,561 | 1,098 | |
Other income | 1,254 | 643 | |
Loss on securities sale, net | (6,609) | ||
Fair value adjustment for CRA equity security | (682) | (265) | |
Total other income | 14,714 | 17,820 | |
OPERATING EXPENSES | |||
Compensation and employee benefits | 22,449 | 21,990 | |
Premises and equipment | 4,647 | 4,113 | |
FDIC insurance expense | 471 | 585 | |
Swap valuation allowance | 673 | ||
Other operating expense | 5,929 | 4,906 | |
Total operating expenses | 34,169 | 31,594 | |
INCOME BEFORE INCOME TAX EXPENSE | 17,792 | 17,794 | |
Income tax expense | 4,351 | 4,616 | |
NET INCOME | $ 13,441 | $ 13,178 | |
EARNINGS PER SHARE | |||
Basic | $ 0.73 | $ 0.70 | |
Diluted | $ 0.71 | $ 0.67 | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||
Basic | 18,339,013 | 18,950,305 | |
Diluted | 18,946,683 | 19,531,689 | |
[1] | Commencing on January 1, 2022, the allowance calculation is based on the current expected credit loss methodology. Prior to January 1, 2022, the calculation was based on the incurred loss methodology. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 13,441 | $ 13,178 |
Unrealized (losses)/gains on available for sale securities: | ||
Unrealized holding losses arising during the period | (46,799) | (17,618) |
Reclassification adjustment for amounts included in net income | 6,609 | |
Before tax | (40,190) | (17,618) |
Tax effect | 9,616 | 4,203 |
Net of tax | (30,574) | (13,415) |
Unrealized gains/(losses) on cash flow hedges: | ||
Unrealized holding gains arising during the period | 2,796 | 1,450 |
Before tax | 2,796 | 1,450 |
Tax effect | (786) | (407) |
Net of tax | 2,010 | 1,043 |
Total other comprehensive loss | (28,564) | (12,372) |
Total comprehensive (loss)/income | $ (15,123) | $ 806 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Surplus [Member] | Surplus [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Treasury Stock [Member] | Treasury Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] |
Balance at Dec. 31, 2020 | $ 527,122 | $ 16,958 | $ 326,592 | $ (36,477) | $ 221,441 | $ (1,392) | ||||||||
Net income | 13,178 | 13,178 | ||||||||||||
Comprehensive loss | (12,372) | (12,372) | ||||||||||||
Restricted stock units issued | 223 | (223) | ||||||||||||
Restricted stock units/awards repurchased on vesting to pay taxes | (2,002) | (54) | (1,948) | |||||||||||
Amortization of restricted stock awards/units | 1,615 | 1,615 | ||||||||||||
Cash dividends declared on common stock | (949) | (949) | ||||||||||||
Share repurchase | (4,379) | (4,379) | ||||||||||||
Common stock options exercised | 10 | 1 | 9 | |||||||||||
Exercise of warrants | 5 | (5) | ||||||||||||
Issuance of shares for Employee Stock Purchase Plan | 218 | 7 | 211 | |||||||||||
Balance at Mar. 31, 2021 | 522,441 | 17,140 | 326,251 | (40,856) | 233,670 | (13,764) | ||||||||
Balance at Dec. 31, 2021 | 546,388 | $ 550,297 | 17,220 | $ 17,220 | 332,358 | $ 332,358 | (65,104) | $ (65,104) | 274,288 | $ 278,197 | (12,374) | $ (12,374) | ||
Balance (ASU 2016-13 [Member]) at Dec. 31, 2021 | $ 3,909 | $ 3,909 | ||||||||||||
Net income | 13,441 | 13,441 | ||||||||||||
Comprehensive loss | (28,564) | (28,564) | ||||||||||||
Restricted stock units issued | 256 | (256) | ||||||||||||
Restricted stock units/awards repurchased on vesting to pay taxes | (2,504) | (57) | (2,447) | |||||||||||
Amortization of restricted stock awards/units | 2,475 | 2,475 | ||||||||||||
Cash dividends declared on common stock | (920) | (920) | ||||||||||||
Share repurchase | (11,174) | (11,174) | ||||||||||||
Common stock options exercised | 120 | 7 | 113 | |||||||||||
Exercise of warrants | 18 | (18) | ||||||||||||
Issuance of shares for Employee Stock Purchase Plan | 255 | 6 | 249 | |||||||||||
Balance at Mar. 31, 2022 | $ 523,426 | $ 17,450 | $ 332,474 | $ (76,278) | $ 290,718 | $ (40,938) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shares outstanding | 18,393,888 | |
Common stock options exercised, shares | 9,260 | |
Issuance of shares for Employee Stock Purchase Plan, shares | 6,808 | 8,425 |
Shares outstanding | 18,370,312 | |
Common Stock [Member] | ||
Shares outstanding | 18,393,888 | 18,974,703 |
Restricted stock units issued, shares | 306,684 | 267,148 |
Restricted stock units/awards repurchased on vesting to pay taxes, shares | (67,999) | (64,653) |
Cash dividends declared on common stock, per share | $ 0.05 | $ 0.05 |
Share repurchase, share | (299,878) | (158,033) |
Common stock options exercised, shares | 9,260 | 820 |
Common stock options exercised, used to exercise, shares | 62 | |
Common stock options exercised, net of shares used to exercise, shares | 758 | |
Exercise of warrants, shares | 49,860 | 20,000 |
Exercise of warrants, used to exercise, shares | 28,311 | 13,478 |
Exercise of warrants, net of shares used to exercise, shares | 21,549 | 6,522 |
Issuance of shares for Employee Stock Purchase Plan, shares | 6,808 | 8,425 |
Shares outstanding | 18,370,312 | 19,034,870 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||
OPERATING ACTIVITIES: | ||||
Net income | $ 13,441 | $ 13,178 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 839 | 784 | ||
Amortization of premium and accretion of discount on securities, net | 947 | 1,578 | ||
Amortization of restricted stock | 2,475 | 1,615 | ||
Amortization of intangible assets | 431 | 368 | ||
Amortization of subordinated debt costs | 71 | 43 | ||
Provision for credit losses | [1] | 2,375 | 225 | |
Swap valuation allowance | 673 | |||
Deferred tax benefit | (3,575) | (841) | ||
Stock-based compensation and employee stock purchase plan expense | 35 | 30 | ||
Fair value adjustment for equity security | 682 | 265 | ||
Loss on securities available for sale | 6,609 | |||
Loans originated for sale | [2] | (34,779) | (53,886) | |
Proceeds from sales of loans held for sale | [2] | 43,006 | 64,900 | |
Gain on loans held for sale | [2] | (3,091) | (2,474) | |
Gain on loans held for sale at lower of cost or fair value | (282) | |||
Gain on life insurance death benefit | (302) | |||
Increase in cash surrender value of life insurance, net | (142) | (153) | ||
Increase in accrued interest receivable | (1,301) | (1,421) | ||
Decrease in other assets | 2,810 | 4,956 | ||
(Decrease)/increase in accrued expenses and other liabilities | (587) | 1,722 | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 30,919 | 30,305 | ||
INVESTING ACTIVITIES: | ||||
Principal repayments, maturities and calls of securities available for sale | 102,224 | 52,781 | ||
Principal repayments, maturities and calls of securities held to maturity | 1,829 | |||
Redemptions of FHLB and FRB stock | 16,771 | 10 | ||
Purchase of securities available for sale | (74,590) | (324,589) | ||
Purchase of FHLB and FRB stock | (22,391) | |||
Proceeds from sales of loans held for sale at lower of cost or fair value | 7,221 | |||
Net increase in loans, net of participations sold | (316,167) | (51,268) | ||
Purchase of premises and equipment | (568) | (2,248) | ||
Proceeds from life insurance death benefit | 582 | |||
NET CASH USED IN INVESTING ACTIVITIES | (292,892) | (317,511) | ||
FINANCING ACTIVITIES: | ||||
Net increase in deposits | 121,267 | 126,429 | ||
Net increase in overnight borrowings | 122,085 | |||
Repayments of Paycheck Protection Program Liquidity Facility | (8,906) | |||
Dividends paid on common stock | (920) | (949) | ||
Exercise of stock options, net of stock swaps | 120 | 10 | ||
Restricted stock repurchased on vesting to pay taxes | (2,504) | (2,002) | ||
Issuance of shares for employee stock purchase plan | 255 | 218 | ||
Shares repurchased | (11,174) | (4,379) | ||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 229,129 | 110,421 | ||
Net decrease in cash and cash equivalents | (32,844) | (176,785) | ||
Cash and cash equivalents at beginning of period | 146,804 | 653,322 | $ 653,322 | |
Cash and cash equivalents at end of period | 113,960 | 476,537 | $ 146,804 | |
Cash paid during the period for: | ||||
Interest | 3,099 | 4,413 | ||
Income tax, net | 199 | 200 | ||
Transfer of loans to loans held for sale | $ 45,776 | |||
Security sales due from broker | $ 120,245 | |||
[1] | Commencing on January 1, 2022, the allowance calculation is based on the current expected credit loss methodology. Prior to January 1, 2022, the calculation was based on the incurred loss methodology. | |||
[2] | Includes mortgage loans originated with the intent to sell which are carried at fair value. In addition, this includes the guaranteed portion of Small Business Administration (“SBA”) loans which are carried at the lower of cost or fair value |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2021 for Peapack-Gladstone Financial Corporation (the “Corporation” or the “Company”). In the opinion of the management of the Corporation, the accompanying unaudited consolidated interim financial statements contain all adjustments (consisting solely of normal and recurring accruals) necessary to present fairly the financial position as of March 31, 2022, and the results of operations, comprehensive income/(loss), changes in shareholders’ equity and cash flow statements for the three months ended March 31, 2022 and 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the full year or for any future period. Principles of Consolidation and Organization: The consolidated financial statements of the Company are prepared on the accrual basis and include the accounts of the Company and its wholly-owned subsidiary, Peapack-Gladstone Bank (the “Bank”). The consolidated financial statements also include the Bank’s wholly-owned subsidiaries: • PGB Trust & Investments of Delaware • Peapack Capital Corporation (“PCC”) • Murphy Capital Management (“Murphy Capital”) • Peapack-Gladstone Mortgage Group, Inc., which owns 99 percent of Peapack Ventures, LLC and 79 percent of Peapack-Gladstone Realty, Inc., a New Jersey real estate investment company • PGB Trust & Investments of Delaware, which owns one percent of Peapack Ventures, LLC • Peapack Ventures, LLC, which owns the remaining 21 percent of Peapack-Gladstone Realty, Inc. • PGB Securities, Inc. (formed in the second quarter of 2020) While the following footnotes include the consolidated results of the Company, the Bank and their subsidiaries, these footnotes primarily reflect the Bank’s and its subsidiaries’ activities. All significant intercompany balances and transactions have been eliminated from the accompanying consolidated financial statements. Basis of Financial Statement Presentation : The consolidated financial statements have been prepared in accordance with GAAP. In preparing the financial statements, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the statement of condition and revenues and expenses for the periods presented. Actual results could differ from those estimates. Adoption of New Accounting Standards : On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”) which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan and lease receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet commitments. Results for reporting periods beginning after January 1, 2022, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $3.9 million as of January 1, 2022, for the cumulative effect of adopting ASC 326. The transition adjustment includes a $5.5 million reduction to our allowance for credit losses. The lower allowance was in part attributed to historically low charge-offs combined with the shorter duration of the loan portfolio employed in our CECL analysis. Further, the incurred loss method required significant qualitative factors, including factors related to Covid, and the use of a multiplier for potential losses on criticized and classified loans, neither of which are included within the CECL methodology. The CECL methodology utilizes significantly less qualitative factors as it uses economic factors and historical losses over a full economic cycle and calculates losses based on DCF on an individual loan basis. Accordingly, the CECL model quantitatively accounts for some of the qualitative factors utilized in the incurred loss methodology. The following table illustrates the impact to our financial statements as of January 1, 2022 upon adoption of ASC 326: January 1, 2022 (In thousands) Impact to Consolidated Statement of Condition from ASC-326 Adoption Tax Effect Impact to Retained Earnings from ASC-326 Adoption Allowance for credit losses on loans $ (5,536 ) $ 1,490 $ 4,046 Allowance for credit losses on off-balance sheet commitments 188 (51 ) 137 Total impact from ASC 326 adoption $ (5,348 ) $ 1,439 $ (3,909 ) Segment Information : The Company’s business is conducted through two business segments: (1) its banking segment (“Banking”), which involves the delivery of loan and deposit products to customers, and (2) the Peapack Private Wealth Management Division (“Peapack Private”), which includes asset management services to individuals and institutions. Management uses certain methodologies to allocate income and expense to the business segments. The Banking segment includes: commercial (includes commercial and industrial (“C&I”) and equipment financing), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support services. Peapack Private includes: investment management services for individuals and institutions; personal trust services, including services as executor, trustee, administrator and custodian; and other financial planning and advisory services. This segment also includes the activity from the Delaware subsidiary, PGB Trust & Investments of Delaware, and Murphy Capital. Wealth management fees are primarily earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management and/or administration (“AUM”) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed (i.e. trade date). Cash and Cash Equivalents: For purposes of the statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits and federal funds sold. Generally, federal funds are sold for one-day Interest-Earning Deposits in Other Financial Institutions : Interest-earning deposits in other financial institutions mature within one year and are carried at cost. Securities : Prior to January 1, 2022 , Management evaluated securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warranted. For securities in an unrealized loss position, Management considered the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assessed whether it intended to sell, or it is more likely than not that it was required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value was recognized as impairment through earnings. For debt securities that did not meet the aforementioned criteria, the amount of impairment was split into two components as follows: (1) other-than-temporary impairment related to credit loss, which would be recognized through the income statement and (2) other-than-temporary impairment related to other factors, which would be recognized in other comprehensive income. Effective January 1, 2022 , - , Debt securities are classified as held to maturity and carried at amortized cost when Management has the positive intent and ability to hold them to maturity. Other debt securities are classified as available for sale and are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. The Company also has an investment in a Community Reinvestment Act (“CRA”) investment fund, which is classified as an equity security. Interest income includes amortization of purchase premiums and discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated, and premiums on callable debt securities, which are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock, based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank is also a member of the Federal Reserve Bank of New York and required to own a certain amount of FRB stock. FRB stock is carried at cost and classified as a restricted security. Dividends are reported as income. Loans Held for Sale: Mortgage loans originated with the intent to sell in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released; therefore, no servicing rights are recorded. Gains and losses on sales of mortgage loans, shown as gain on sale of loans on the Statement of Income, are based on the difference between the selling price and the carrying value of the related loan sold. SBA loans originated with the intent to sell in the secondary market are carried at the lower of cost or fair value. SBA loans are generally sold with the servicing rights retained. Gains and losses on the sale of SBA loans are based on the difference between the selling price and the carrying value of the related loan sold. Total SBA loans serviced totaled $118.1 million and $97.5 million as of March 31, 2022 and December 31, 2021, respectively. SBA loans held for sale totaled $26.4 million and $32.5 million at March 31, 2022 and December 31, 2021, respectively. Loans originated with the intent to hold and subsequently transferred to loans held for sale are carried at the lower of cost or fair value. These are loans that the Company no longer has the intent to hold for the foreseeable future. Loans: Loans that Management has the intent and ability to hold for the foreseeable future or until maturity are stated at the principal amount outstanding. Interest on loans is recognized based upon the principal amount outstanding. Loans are stated at face value, less purchased premium and discounts and net deferred fees. Loan origination fees and certain direct loan origination costs are deferred and recognized on a level-yield method over the life of the loan as an adjustment to the loan’s yield. The definition of recorded investment in loans includes accrued interest receivable and deferred fees/costs, however, for the Company’s loan disclosures, accrued interest and deferred fees/costs were excluded as the impact was not material. Loans are considered past due when they are not paid within 30 days in accordance with contractual terms. The accrual of income on loans, including individually evaluated loans, is discontinued if, in the opinion of Management, principal or interest is not likely to be paid in accordance with the terms of the loan agreement, or when principal or interest is past due 90 days unless the asset is both well secured and in the process of collection. All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Payments received on nonaccrual loans are recorded as principal payments. A nonaccrual loan is returned to accrual status only when interest and principal payments are brought current and future payments are reasonably assured, generally when the Bank receives contractual payments for a minimum of six consecutive months. Commercial loans are generally charged off , in whole or in part, after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Consumer closed-end loans are generally charged off after they become 120 days past due and open-end loans after 180 days . Subsequent payments are credited to income only if collection of principal is not in doubt. If principal and interest payments are brought contractually current and future collectability is reasonably assured, loans may be returned to accrual status. Nonaccrual mortgage loans are generally charged off to the extent that the value of the underlying collateral does not cover the outstanding principal balance. The majority of the Company ’s loans are secured by real estate in New Jersey, New York and Pennsylvania. Allowance for Credit Losses : On January 1, 2022, the Company adopted ASU 2016-13, Topic 326) which replaced the incurred loss methodology with CECL for financial instruments measured at amortized cost and other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable economic forecasts of future events and circumstances. The allowance for credit losses (“ACL”) on loans held for investment is the combination of the allowance for loan losses and the reserve for unfunded loan commitments. The allowance for loan losses is reported as a reduction of the amortized cost basis of loans, while the reserve for unfunded loan commitments is included within "other liabilities" on the Consolidated Statements of Condition. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates. The amortized cost basis of loans does not include accrued interest receivable, which is included in "accrued interest receivable" on the Consolidated Statements of Condition. The "Provision for credit losses" on the Consolidated Statements of Income is a combination of the provision for credit losses and the provision for unfunded loan commitments. Allowance for Loan Losses under incurred methodology prior to CECL Adoption on January 1, 2022 The allowance for loan and lease losses is a valuation allowance for credit losses that is Management’s estimate of probable incurred losses in the loan portfolio. Under this accounting method, the process to determine reserves utilizes analytical tools and Management judgment and is reviewed on a quarterly basis. When Management is reasonably certain that a loan balance is not fully collectable, an impairment analysis is completed whereby a specific reserve may be established or a full or partial charge off is recorded against the allowance. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the size and composition of the portfolio, information about specific borrower situations, estimated collateral values, asset quality information, economic conditions and other factors. Allocations of the allowance may be made for specific loans via a specific reserve, but the entire allowance is available for any loan that, in Management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans are individually evaluated for impairment when they are classified as substandard by Management. If a loan is considered impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or if repayment is expected solely from the underlying collateral, the loan principal balance is compared to the fair value of collateral less estimated disposition costs to determine the need, if any, for a charge off. The general component of the allowance covers non-impaired loans and is based primarily on the Company’s historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company on a weighted average basis over the previous three years. This actual loss experience is adjusted by other qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies, charge- offs and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staffing and experience; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. For loans that are graded as non-impaired, the Company allocates a higher general reserve percentage than pass-rated loans using a multiple that is calculated annually through a migration analysis. At both December 31, 2021 and 2020, respectively, the multiple was 2.25 times for non-impaired special mention loans and 3.25 times for non-impaired substandard loans. ACL in accordance with CECL methodology With respect to pools of similar loans, that are collectively evaluated, an appropriate level of general allowance is determined by portfolio segment using a non-linear discounted cash flow (“DCF”) model. The DCF model captures losses over the historical charge-off and prepayment cycle and applies those losses at a loan level over the remaining maturity of the loan. The model then calculates a historical loss rate using the average losses over the reporting period, which is then applied to each segment utilizing a standard reversion rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, including but not limited to unemployment rates, national consumer price and confidence indices. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. Also included in the ACL are qualitative factors based on the risks present for each portfolio segment. These qualitative factors include the following: levels of and trends in delinquencies and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staffing and experience; industry conditions; and effects of changes in credit concentrations. When management identifies loans that do not share common risk characteristics (i.e., are not similar to other loans within a pool) they are evaluated on an individual basis. These loans are not included in the collective evaluation. For loans identified as having a likelihood of foreclosure or that the borrower is experiencing financial difficulty, a collateral dependent approach is used. These are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral. Under CECL, for collateral dependent loans, the Company has adopted the practical expedient method to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The CECL methodology requires a significant amount of management judgment in determining the appropriate allowance for credit losses. Several of the steps in the methodology involve judgment and are subjective in nature including, among other things: segmenting the loan portfolio; determining the amount of loss history to consider; selecting predictive econometric regression models that use appropriate macroeconomic variables; determining the methodology to forecast prepayments; selecting the most appropriate economic forecast scenario; determining the length of the reasonable and supportable forecast and reversion periods; estimating expected utilization rates on unfunded loan commitments; and assessing relevant and appropriate qualitative factors. In addition, the CECL methodology is dependent on economic forecasts, which are inherently imprecise and will change from period to period. Although the allowance for credit losses is considered appropriate, there can be no In determining an appropriate amount for the allowance, the Bank segments and aggregated the loan portfolio based on common characteristics. The following segments have been identified: Primary Residential Mortgages Junior Lien Loan on Residence (which include home equity lines of credit) loans are subordinate to a first mortgage which may be from another lending institution. Primary risk characteristics associated with JLLs and home equity lines of credit typically involve : major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as for major medical issues or catastrophic events; and divorce or death. Further, real estate values could drop significantly and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank. In addition, home equity lines of credit typically are made with variable or floating interest rates, which could expose the borrower to higher debt service requirements in a rising interest rate environment. Further, real estate values could drop significantly and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank. Multifamily Owner-Occupied Commercial Real Estate Loans Investment Commercial Real Estate Loans. Commercial and Industrial Loans Leasing Finance Asset risk in PCC’s portfolio is generally recognized through changes to loan income, or through changes to lease related income streams due to fluctuations in lease rates. Changes to lease income can occur when the existing lease contract expires, the asset comes off lease or the business seeks to enter a new lease agreement. Asset risk may also change through depreciation, resulting from changes in the residual value of the operating lease asset or through impairment of the asset carrying value, which can occur at any time during the life of the asset. Credit risk in PCC’s portfolio generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions. Credit losses can impact multiple parts of the income statement including loss of interest/lease/rental income and/or higher costs and expenses related to the repossession, refurbishment, re-marketing and or re-leasing of assets. Construction Risks common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Consumer and Other A troubled debt restructuring (“TDR”) is a modified loan with concessions made by the lender to a borrower who is experiencing financial difficulty. TDRs are impaired and are generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral, less estimated disposition costs. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for credit losses. The Coronavirus Aid, Relief, and Economic Security ("CARES”) Act, which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP, a llows financial institutions to suspend application of certain current TDR accounting guidance under ASC 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest or change the interest rate on the loan. The revised CARES Act extended TDR relief to loan modifications through January 1, 2022. In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide further interpretation of when a borrower is experiencing financial difficulty, specifically indicating that if the modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not experiencing financial difficulty under ASC 310-40. The Company continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing an appropriate allowance for credit losses on its loan portfolio. The Company approved total loan modifications under the CARES Act of $947.0 million, of which $12.7 million remain outstanding as of March 31, 2022. Another key program under the CARES Act is the Paycheck Protection Program (“PPP”) administered by the SBA which provided funding to qualifying businesses and organizations. Under this program, the Company provided fundings of approximately $650 million. In the third quarter of 2020 and second quarter of 2021, the Company sold approximately $355.0 million and $56.5 million, respectively, of such loans, servicing rights released to a third party. The Company also referred approximately $124 million of PPP loans to a third party during the first six months of 2021. The Company has approximately $9.6 million of PPP loans remaining in its portfolio as of March 31, 2022 and believes that substantially all of these loans will be forgiven by the SBA. These loans are fully guaranteed by the SBA and provide for full forgiveness of the loans during a specified forgiveness period that meet specific guidelines provided by the SBA. Loans that do not meet the forgiveness criteria will enter a repayment period of 2 or 5 years Leases: At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding right-of-use (“ROU”) asset and operating lease liability are recorded as separate line items on the statement of condition. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made. If the rate implicit in the lease is not readily determinable, the incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s statement of condition, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. The Company maintains certain property and equipment under direct financing and operating leases. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space and are classified as operating leases. The ROU asset is measured at the amount of the lease liability adjusted for lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the ROU asset. Operating lease expense consists of: a single lease cost allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the ROU asset. There are no terms or conditions related to residual value guarantees and no restrictions or covenants that would impact the Company’s ability to pay dividends or to incur additional financial obligations. Derivatives: At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”); (2) a hedge of a forecasted transaction or the variability of cash flows t |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
Investment Securities Available For Sale [Abstract] | |
INVESTMENT SECURITIES AVAILABLE FOR SALE | 2. INVESTMENT SECURITIES A summary of amortized cost and approximate fair value of investment securities available for sale and held to maturity included in the Consolidated Statements of Condition as of March 31, 2022 and December 31, 2021 follows: March 31, 2022 Gross Gross Amortized Unrealized Unrealized Allowance for Fair (In thousands) Cost Gains Losses Credit Losses Value Securities Available for Sale: U.S government-sponsored agencies $ 244,761 $ — $ (26,498 ) $ — $ 218,263 Mortgage-backed securities–residential 364,177 378 (24,042 ) — 340,513 SBA pool securities 38,326 2 (2,853 ) — 35,475 State and political subdivisions 4,523 3 (6 ) — 4,520 Corporate bond 2,500 — (108 ) — 2,392 Total securities available for sale $ 654,287 $ 383 $ (53,507 ) $ — $ 601,163 Securities Held to Maturity: U.S. government-sponsored agencies $ 40,000 $ — $ (1,982 ) $ — $ 38,018 Mortgage-backed securities–residential 66,816 — (4,520 ) — 62,296 Total $ 106,816 $ — $ (6,502 ) $ — $ 100,314 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Securities Available for Sale: U.S government-sponsored agencies $ 280,045 $ — $ (7,824 ) $ 272,221 Mortgage-backed securities–residential 481,062 3,849 (7,937 ) 476,974 SBA pool securities 40,649 12 (1,100 ) 39,561 State and political subdivisions 5,431 45 — 5,476 Corporate bond 2,500 21 — 2,521 Total securities available for sale $ 809,687 $ 3,927 $ (16,861 ) $ 796,753 Securities Held to Maturity: U.S. government-sponsored agencies $ 40,000 $ 7 $ (25 ) $ 39,982 Mortgage-backed securities–residential 68,680 67 (269 ) 68,478 Total $ 108,680 $ 74 $ (294 ) $ 108,460 The following table presents a summary of the gross gains, gross losses and net tax benefit related to proceeds on sales of securities available for sale for the quarter ended March 31, 2022: (In thousands) March 31, 2022 Proceeds from sales $ 120,245 Gross gains 3 Gross losses (6,612 ) Net tax (benefit)/expense 1,581 The following tables present the Company’s available for sale and held to maturity securities with continuous unrealized losses and the approximate fair value of these investments as of March 31, 2022 and December 31, 2021. March 31, 2022 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Securities Available for Sale: U.S. government-sponsored agencies $ 90,578 $ (9,277 ) $ 127,685 $ (17,221 ) $ 218,263 $ (26,498 ) Mortgage-backed securities residential 132,068 (7,083 ) 156,945 (16,959 ) 289,013 (24,042 ) SBA pool securities 24,484 (1,653 ) 9,393 (1,200 ) 33,877 (2,853 ) State and political subdivisions 1,609 (6 ) — — 1,609 (6 ) Corporate bond 2,392 (108 ) — — 2,392 (108 ) Total securities available for sale $ 251,131 $ (18,127 ) $ 294,023 $ (35,380 ) $ 545,154 $ (53,507 ) Securities Held to Maturity: U.S. government-sponsored agencies $ 38,018 $ (1,982 ) $ — $ — $ 38,018 $ (1,982 ) Mortgage-backed securities residential 62,296 (4,520 ) — — 62,296 (4,520 ) Total securities held to maturity $ 100,314 $ (6,502 ) $ — $ — $ 100,314 $ (6,502 ) Total securities $ 351,445 $ (24,629 ) $ 294,023 $ (35,380 ) $ 645,468 $ (60,009 ) December 31, 2021 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Securities Available for Sale: U.S. government-sponsored agencies $ 243,187 $ (6,858 ) $ 29,034 $ (966 ) $ 272,221 $ (7,824 ) Mortgage-backed securities residential 265,403 (7,053 ) 33,455 (884 ) 298,858 (7,937 ) SBA pool securities 22,057 (567 ) 10,562 (533 ) 32,619 (1,100 ) Total securities available for sale $ 530,647 $ (14,478 ) $ 73,051 $ (2,383 ) $ 603,698 $ (16,861 ) Securities Held to Maturity: U.S. government-sponsored agencies $ 24,975 $ (25 ) $ — $ — $ 24,975 $ (25 ) Mortgage-backed securities residential 48,307 (269 ) — — 48,307 (269 ) Total securities held to maturity $ 73,282 $ (294 ) $ — $ — $ 73,282 $ (294 ) Total securities $ 603,929 $ (14,772 ) $ 73,051 $ (2,383 ) $ 676,980 $ (17,155 ) Available for sale and held to maturity securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statements of Income when management intends to sell, or may be required to sell, the securities before they recover in value. The issuers of securities currently in a continuous loss position continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at March 31, 2022. Primarily all of the investment securities are backed by loans guaranteed by either U.S. government agencies or U.S government-sponsored entities, and management believes that default is highly unlikely given the lack of historical credit losses and governmental backing. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. Therefore, no T he Company has an investment in a CRA investment fund with a fair value of $14.0 million at March 31, 2022. This investment is classified as an equity security in our Consolidated Statements of Condition. This security had a loss of $682,000 for the three months ended March 31, 2022. This amount is included in securities gains/(losses), net on the Consolidated Statements of Income |
LOANS AND LEASES
LOANS AND LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
LOANS AND LEASES | 3. LOANS AND LEASES Loans outstanding, excluding those held for sale, by general ledger classification, as of March 31, 2022 and December 31, 2021, consisted of the following: % of % of March 31, Totals December 31, Total (Dollars in thousands) 2022 Loans 2021 Loans Residential mortgage $ 512,684 10.01 % $ 498,300 10.37 % Multifamily mortgage 1,850,097 36.12 1,595,866 33.20 Commercial mortgage 669,899 13.09 662,626 13.78 Commercial loans (including equipment financing) (1) 1,997,798 39.00 1,955,157 40.67 Commercial construction 17,572 0.34 20,044 0.42 Home equity lines of credit 38,604 0.75 40,803 0.85 Consumer loans, including fixed rate home equity loans 35,322 0.69 33,687 0.70 Other loans 226 0.00 238 0.01 Total loans $ 5,122,202 100.00 % $ 4,806,721 100.00 % (1) Includes PPP loans of $9.6 million at March 31, 2022 and $13.8 million at December 31, 2021 In determining an appropriate amount for the allowance, the Bank segments and aggregated the loan portfolio based on common characteristics. The following pool segments identified as of March 31, 2022 are based on the CECL methodology: % of March 31, Totals (Dollars in thousands) 2022 Loans Primary residential mortgage $ 516,350 10.09 % Junior lien loan on residence 41,747 0.81 Multifamily property 1,850,097 36.15 Owner-occupied commercial real estate 256,345 5.01 Investment commercial real estate 1,056,755 20.65 Commercial and industrial (1) 1,019,501 19.92 Lease financing 312,133 6.10 Construction 22,826 0.45 Consumer and other 41,853 0.82 Total loans 5,117,607 100.00 % Net deferred costs 4,595 Total loans including net deferred costs $ 5,122,202 (1) Includes PPP loans of $ 9.6 . The portfolio classes identified as of December 31, 2021 are based on the incurred loss methodology and are segmented by federal Call Report codes: % of December 31, Total (Dollars in thousands) 2021 Loans Primary residential mortgage $ 500,243 10.42 % Home equity lines of credit 40,803 0.85 Junior lien loan on residence 3,191 0.07 Multifamily property 1,595,866 33.23 Owner-occupied commercial real estate 252,603 5.26 Investment commercial real estate 1,003,979 20.90 Commercial and industrial (1) 992,332 20.66 Lease financing 345,868 7.20 Farmland/agricultural production 6,871 0.14 Commercial construction loans 20,174 0.42 Consumer and other loans 40,828 0.85 Total loans 4,802,758 100.00 % Net deferred costs 3,963 Total loans including net deferred costs $ 4,806,721 (1) Includes PPP loans of $13.8 million at December 31, 2021 The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2022 and December 31, 2021: March 31, 2022 Loans Past Due 90 Days or Over And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 2,385 $ — Junior lien loan on residence 17 — Owner-occupied commercial real estate 420 — Investment commercial real estate 12,500 — Commercial and industrial 562 — Total $ 15,884 $ — December 31, 2021 Loans Past Due 90 Days or Over And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 1,851 $ — Junior lien loan on residence 18 — Owner-occupied commercial real estate 458 — Investment commercial real estate 12,750 — Commercial and industrial 496 — Total $ 15,573 $ — The following tables present the aging of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021 by class of loans, excluding nonaccrual loans: March 31, 2022 30-59 60-89 90 Days or Days Days Greater Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 332 $ — $ — $ 332 Commercial and industrial 274 — — 274 Total $ 606 $ — $ — $ 606 December 31, 2021 30-59 60-89 90 Days or Days Days Greater Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 639 $ — $ — $ 639 Commercial and industrial 7,825 142 — 7,967 Total $ 8,464 $ 142 $ — $ 8,606 Credit Quality Indicators: The Company places all commercial loans into various credit risk rating categories based on an assessment of the expected ability of the borrowers to properly service their debt. The assessment considers numerous factors including, but not limited to, current financial information on the borrower, historical payment experience, strength of any guarantor, nature of and value of any collateral, acceptability of the loan structure and documentation, relevant public information and current economic trends. This credit risk rating analysis is performed when the loan is initially underwritten and then annually based on set criteria in the loan policy. In addition, the Bank has engaged an independent loan review firm to validate risk ratings and to ensure compliance with our policies and procedures. This review of the following types of loans is performed quarterly: • A large sample of relationships or new lending to existing relationships greater than $1,000,000 booked since the prior review; • All criticized and classified rated borrowers with relationship exposure of more than $500,000; • A large sample of Pass-rated (including Pass Watch) borrowers with total relationships in excess of $1,000,000 and a small sample of Pass related relationships less than $1,000,000; • All leveraged loans of $1,000,000 or greater; • At least two borrowing relationships managed by each commercial banker; • Any new Regulation “O” loan commitments over $1,000,000; and • Any other credits requested by Bank senior management or a member of the Board of Directors and any borrower for which the reviewer determines a review is warranted based upon knowledge of the portfolio, local events, industry stresses, etc. The review excludes borrowers with commitments of less than $500,000. The Company uses the following regulatory definitions for criticized and classified risk ratings: Special Mention: These loans have a potential weakness that deserves Management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the loans or of the institution’s credit position at some future date. Substandard: These loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: These loans have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, based on currently existing facts, conditions and values. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. With the adoption of CECL, loans that are in the process of or expected to be in foreclosure are deemed to be collateral dependent with respect to measuring potential loss and allowance adequacy and are individually evaluated by Management. Loans that do not share common risk characteristics are also evaluated on an individual basis. All other loans are evaluated using a non-linear discounted cashflow methodology for measuring potential loss and allowance adequacy. The following is a summary of the credit risk profile of loans by internally assigned grade as of the periods indicated, the years represent the year of origination for non-revolving loans: March 31, 2022 2017 Revolving- (In thousands) 2022 2021 2020 2019 2018 and Prior Revolving Term Total Primary residential mortgage: Pass $ 38,233 $ 102,596 $ 68,550 $ 45,913 $ 29,968 $ 227,138 $ 700 $ 375 $ 513,473 Special mention — — — — — 319 — — 319 Substandard — — 469 215 287 1,587 — — 2,558 Doubtful — — — — — — — — — Total primary residential mortgages 38,233 102,596 69,019 46,128 30,255 229,044 700 375 516,350 Junior lien loan on residence: Pass 441 208 53 721 422 1,281 — 38,081 41,207 Special mention — — — — — — — — — Substandard — — — — — 17 — 523 540 Doubtful — — — — — — — — — Total junior lien loan on residence 441 208 53 721 422 1,298 — 38,604 41,747 Multifamily property: Pass 312,564 688,845 120,104 285,468 59,972 358,853 7,578 1,949 1,835,333 Special mention — — — 2,888 — 3,564 — — 6,452 Substandard — — — — — 8,312 — — 8,312 Doubtful — — — — — — — — — Total multifamily property 312,564 688,845 120,104 288,356 59,972 370,729 7,578 1,949 1,850,097 Owner-occupied commercial real estate: Pass 1,731 44,926 21,276 12,587 25,860 146,302 2,112 884 255,678 Special mention — — — — — — — — — Substandard — — — — — 420 247 — 667 Doubtful — — — — — — — — — Total owner-occupied commercial real estate 1,731 44,926 21,276 12,587 25,860 146,722 2,359 884 256,345 Investment commercial real estate: Pass 59,535 164,327 65,408 160,095 116,607 340,366 36,005 13,130 955,473 Special mention — — — 36,220 7,852 40,257 — 2,411 86,740 Substandard — — — 2,042 12,500 — — — 14,542 Doubtful — — — — — — — — — Total investment commercial real estate 59,535 164,327 65,408 198,357 136,959 380,623 36,005 15,541 1,056,755 Commercial and industrial: Pass 77,506 315,130 135,158 113,694 40,005 15,034 13,445 272,328 982,300 Special mention — — — 5,291 196 — 6,345 4,602 16,434 Substandard — — 13 — 20,488 230 — 36 20,767 Doubtful — — — — — — — — — Total commercial and industrial 77,506 315,130 135,171 118,985 60,689 15,264 19,790 276,966 1,019,501 Lease financing: Pass 5,630 106,238 70,994 66,563 39,897 22,811 — — 312,133 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total lease financing 5,630 106,238 70,994 66,563 39,897 22,811 — — 312,133 Construction loans: Pass — — — 1,462 — 8 10,195 11,088 22,753 Special mention — — — — — 73 — — 73 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total commercial construction loans — — — 1,462 — 81 10,195 11,088 22,826 Consumer and other loans: Pass — 437 270 20 — 6,197 3,331 31,598 41,853 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total consumer and other loans — 437 270 20 — 6,197 3,331 31,598 41,853 Total: Pass 495,640 1,422,707 481,813 686,523 312,731 1,117,990 73,366 369,433 4,960,203 Special mention — — — 44,399 8,048 44,213 6,345 7,013 110,018 Substandard — — 482 2,257 33,275 10,566 247 559 47,386 Doubtful — — — — — — — — — Total Loans $ 495,640 $ 1,422,707 $ 482,295 $ 733,179 $ 354,054 $ 1,172,769 $ 79,958 $ 377,005 $ 5,117,607 As of December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 494,444 $ 557 $ 5,242 $ — Home equity lines of credit 40,274 — 529 — Junior lien loan on residence 3,173 — 18 — Multifamily property 1,579,776 7,720 8,370 — Owner-occupied commercial real estate 251,229 663 711 — Investment commercial real estate 901,877 87,297 14,805 — Commercial and industrial 951,127 20,178 21,027 — Lease financing 345,868 — — — Farmland/agricultural production 6,871 — — — Commercial construction loans 20,099 75 — — Consumer and other loans 40,828 — — — Total $ 4,635,566 $ 116,490 $ 50,702 $ — At March 31, 2022, $15.9 million of substandard loans were also considered individually evaluated, compared to $15.7 million at December 31, 2021. Loan Modifications: The CARES Act allows financial institutions to suspend application of certain current TDR accounting guidance under ASC 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. The revised CARES Act extended TDR relief to loan modifications through January 1, 2022. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest or change the interest rate on the loan. In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide further interpretation of when a borrower is experiencing financial difficulty, specifically indicating that if the modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not experiencing financial difficulty under ASC 310-40. As of March 31, 2022, the Bank had modified 542 loans with a balance of $947.0 million resulting in the deferral of principal and/or interest. The table below summarizes the outstanding deferrals as of March 31, 2022. All of these loans were performing in accordance with their terms prior to modification and are in conformance with the CARES Act. Post-Modification Outstanding Number of Recorded (Dollars in thousands) Loans Investment Commercial and industrial 4 $ 12,656 Total 4 $ 12,656 Troubled Debt Restructurings: The Company has allocated $2.5 million of specific reserves on TDRs as of March 31, 2022. The Company did not allocate specific reserves to customers whose loan terms had been modified in troubled debt restructurings as of December 31, 2021. There were no unfunded commitments to lend additional amounts to customers with outstanding loans that are classified as TDRs. The following table presents loans by class modified as TDRs during the three-month period ended March 31, 2022: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Investment commercial real estate 1 $ 12,500 $ 12,500 Total 1 $ 12,500 $ 12,500 There were no loans modified as TDRs during the three-month period ended March 31, 2021. The identification of the TDRs did not have a significant impact on the allowance for credit losses. The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2022: Number of Recorded (Dollars in thousands) Loans Investment Primary residential mortgage 1 $ 215 Total 1 $ 215 The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2021: Number of Recorded (Dollars in thousands) Loans Investment Primary residential mortgage 1 $ 132 Total 1 $ 132 In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The modification of the terms of such loans may include one or more of the following: (1) a reduction of the stated interest rate of the loan to a rate that is lower than the current market rate for new debt with similar risk; (2) an extension of an interest only period for a predetermined period of time; (3) an extension of the maturity date; or (4) an extension of the amortization period over which future payments will be computed. At the time a loan is restructured, the Bank performs a full underwriting analysis, which includes, at a minimum, obtaining current financial statements and tax returns, copies of all leases, and an updated independent appraisal of the property. A loan will continue to accrue interest if it can be reasonably determined that the borrower should be able to perform under the modified terms, that the loan has not been chronically delinquent (both to debt service and real estate taxes) or in nonaccrual status since its inception, and that there have been no charge-offs on the loan. Restructured loans with previous charge-offs would not accrue interest at the time of the TDR. At a minimum, six consecutive months of contractual payments would need to be made on a restructured loan before returning it to accrual status. Once a loan is classified as a TDR, the loan is reported as a TDR until the loan is paid in full, sold or charged-off. In rare circumstances, a loan may be removed from TDR status if it meets the requirements of ASC 310-40-50-2. |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | 4. ALLOWANCE FOR CREDIT LOSSES On January 1, 2022, the Company adopted ASU 2016-13, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. See Note 1, Summary of Significant Accounting Policies for additional information on Topic 326. The Company does not estimate expected credit losses on accrued interest receivable (“AIR”) on loans, as AIR is reversed or written off when the full collection of the AIR related to a loan becomes doubtful. AIR on loans totaled $20.8 million at March 31, 2022 and $19.1 million at December 31, 2021. The following table presents the loan balances by segment, and the corresponding balances in the allowance as of March 31, 2022. For the period ended March 31, 2022, the allowance is based on the CECL methodology. March 31, 2022 Ending ACL Ending ACL Total Attributable Total Attributable Individually To Individually Loans To Loans Total Evaluated Evaluated Collectively Collectively Total Ending (In thousands) Loans Loans Evaluated Evaluated Loans ACL Primary residential mortgage $ 385 $ — $ 515,965 $ 3,545 $ 516,350 $ 3,545 Junior lien loan on residence — — 41,747 242 41,747 242 Multifamily property — — 1,850,097 15,480 1,850,097 15,480 Owner-occupied commercial real estate 328 — 256,017 4,903 256,345 4,903 Investment commercial real estate 12,500 2,500 1,044,255 8,469 1,056,755 10,969 Commercial and industrial 266 — 1,019,235 18,653 1,019,501 18,653 Lease financing — — 312,133 3,354 312,133 3,354 Construction loans — — 22,826 532 22,826 532 Consumer and other loans — — 41,853 708 41,853 708 Total ACL $ 13,479 $ 2,500 $ 5,104,128 $ 55,886 $ 5,117,607 $ 58,386 The following table presents the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance as of December 31, 2021. For the year ended December 31, 2021, the allowance was calculated based on the incurred loss methodology: December 31, 2021 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 2,242 $ — $ 498,001 $ 1,432 $ 500,243 $ 1,432 Home equity lines of credit — — 40,803 83 40,803 83 Junior lien loan on residence 18 — 3,173 5 3,191 5 Multifamily property — — 1,595,866 9,806 1,595,866 9,806 Owner-occupied commercial real estate 458 — 252,145 1,998 252,603 1,998 Investment commercial real estate 12,750 4,234 991,229 22,849 1,003,979 27,083 Commercial and industrial 2,584 — 989,748 17,509 992,332 17,509 Lease financing — — 345,868 3,440 345,868 3,440 Farmland/agricultural production — — 6,871 84 6,871 84 Commercial construction loans — — 20,174 42 20,174 42 Consumer and other loans — — 40,828 215 40,828 215 Total ALLL $ 18,052 $ 4,234 $ 4,784,706 $ 57,463 $ 4,802,758 $ 61,697 Individually evaluated allocated to TDR loans totaled $ 2.5 million at March 31, 2022, of which all was allocated to one nonaccrual loan. At December 31, 2021, there was no allowance allocated to TDR loans. All accruing TDR loans were paying in accordance with restructured terms as of March 31, 2022. The Company has not committed to lend additional amounts as of March 31, 2022 to customers with outstanding loans that are classified as TDR loans. Under Topic 326, the Company's methodology for determining the ACL on loans is based upon key assumptions, including historic net charge-off factors, economic forecasts, reversion periods, prepayments and qualitative adjustments. The allowance is measured on a collective, or pool, basis when similar risk characteristics exist. Loans that do not share common risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. The following tables present collateral dependent loans individually evaluated by segment as of March 31, 2022: March 31, 2022 Unpaid Average Principal Recorded Related Individually Evaluated (In thousands) Balance Investment Allowance Loans With no related allowance recorded: Primary residential mortgage $ 445 $ 385 $ — $ 343 Owner-occupied commercial real estate 357 328 — 342 Commercial and industrial 282 266 — 282 Total loans with no related allowance $ 1,084 $ 979 $ — $ 967 With related allowance recorded: Investment commercial real estate $ 12,500 $ 12,500 $ 2,500 $ 12,667 Total loans with related allowance $ 12,500 $ 12,500 $ 2,500 $ 12,667 Total loans individually evaluated $ 13,584 $ 13,479 $ 2,500 $ 13,634 The following table presents, under previously applicable GAAP, loans individually evaluated for impairment as of December 31, 2021 (the average impaired loans on the following tables represent year to date impaired loans): December 31, 2021 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 2,453 $ 2,242 $ — $ 1,818 Owner-occupied commercial real estate 492 458 — 540 Junior lien loan on residence 18 18 — 3 Commercial and industrial 4,549 2,584 — 3,153 Total loans with no related allowance $ 7,512 $ 5,302 $ — $ 5,514 With related allowance recorded: Investment commercial real estate $ 19,887 $ 12,750 $ 4,234 $ 6,034 Total loans with related allowance $ 19,887 $ 12,750 $ 4,234 $ 6,034 Total loans individually evaluated for impairment $ 27,399 $ 18,052 $ 4,234 $ 11,548 Interest income recognized on individually evaluated loans for the quarter ended March 31, 2022 and 2021 was not material. The Company did not recognize any income on non-accruing impaired loans for the three months ended March 31, 2022 and 2021. The activity in the allowance for credit losses for the three months ended March 31, 2022 is summarized below: December 31, March 31, 2021 2022 Prior to adoption Impact of Provision Ending (In thousands) of Topic 326 adopting Topic 326 Charge-offs Recoveries (Credit) ACL Primary residential mortgage $ 1,510 $ 1,604 $ — $ — $ 431 $ 3,545 Junior lien loan on residence 88 174 — — (20 ) 242 Multifamily property 9,806 3,763 — — 1,911 15,480 Owner-occupied commercial real estate 1,998 2,934 — — (29 ) 4,903 Investment commercial real estate 27,083 (13,450 ) (250 ) — (2,414 ) 10,969 Commercial and industrial 17,509 (1,646 ) — 4 2,786 18,653 Lease financing 3,440 156 — — (242 ) 3,354 Construction loans 48 418 — — 66 532 Consumer and other loans 215 511 (20 ) 2 — 708 Total ACL $ 61,697 $ (5,536 ) $ (270 ) $ 6 $ 2,489 $ 58,386 For the accounting policy on the allowance for loan losses that was in effect prior to the adoption of Topic 326, refer to Note 1, Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year-ended December 31, 2021. The activity in the allowance for loan and lease losses for the three months ended March 31, 2021 is summarized below: January 1, March 31, 2021 2021 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 2,905 $ — $ — $ (129 ) $ 2,776 Home equity lines of credit 218 — 9 (29 ) 198 Junior lien loan on residence 15 — — 1 16 Multifamily property 9,945 — — 482 10,427 Owner-occupied commercial real estate 3,050 — — (186 ) 2,864 Investment commercial real estate 27,713 — — (1,020 ) 26,693 Commercial and industrial 19,047 — 7 1,071 20,125 Lease financing 3,936 — — 31 3,967 Farmland/agricultural production 43 — — 4 47 Commercial construction loans 158 — — 3 161 Consumer and other loans 279 (15 ) 1 (3 ) 262 Total ALLL $ 67,309 $ (15 ) $ 17 $ 225 $ 67,536 Allowance for Credit Losses on Off Balance Sheet Commitments The following table presets the activity in the ACL for off balance sheet commitments for the three months ended March 31, 2022: December 31, 2021 Prior to adoption Impact of Provision March 31, 2022 (In thousands) of Topic 326 adopting Topic 326 (Credit) Ending ACL Off balance sheet commitments $ — $ 302 $ (114 ) $ 188 Total ACL $ — $ 302 $ (114 ) $ 188 |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
DEPOSITS | 5. DEPOSITS Certificates of deposit that met or exceeded $250,000 totaled $131.5 million and $140.4 million at March 31, 2022 and December 31, 2021, respectively. These totals excluded brokered certificates of deposit. The following table sets forth the details of total deposits as of March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 (Dollars in thousands) Noninterest-bearing demand deposits $ 1,023,208 18.99 % $ 956,482 18.16 % Interest-bearing checking (1) 2,362,987 43.86 2,287,894 43.45 Savings 162,116 3.01 154,914 2.94 Money market 1,304,017 24.21 1,307,051 24.82 Certificates of deposit - retail 384,909 7.14 409,608 7.78 Certificates of deposit - listing service 31,348 0.58 31,382 0.60 Subtotal deposits 5,268,585 97.79 5,147,331 97.75 Interest-bearing demand - Brokered 85,000 1.58 85,000 1.61 Certificates of deposit - Brokered 33,831 0.63 33,818 0.64 Total deposits $ 5,387,416 100.00 % $ 5,266,149 100.00 % (1) Interest-bearing checking includes The scheduled maturities of certificates of deposit, including brokered certificates of deposit, as of March 31, 2022, are as follows: (In thousands) 2022 $ 294,833 2023 80,394 2024 34,021 2025 29,271 2026 11,027 Over 5 Years 542 Total $ 450,088 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 6. FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS At March 31, 2022, the Company had $122.1 million of overnight borrowings at the FHLB at a rate of 72 basis points compared to no |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | 7. BUSINESS SEGMENTS The Company assesses its results among two operating segments, Banking and Peapack Private. Management uses certain methodologies to allocate income and expense to the business segments. A funds transfer pricing methodology is used to assign interest income and interest expense. Certain indirect expenses are allocated to segments. These include support unit expenses such as technology and operations and other support functions. Taxes are allocated to each segment based on the effective rate for the period shown. Banking The Banking segment includes: commercial (includes C&I and equipment finance), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support and sales. Peapack Private Peapack Private, which includes the operations of PGB Trust & Investments of Delaware and Murphy Capital, consists of: investment management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; and other financial planning, tax preparation and advisory services. The following tables present the statements of income and total assets for the Company’s reportable segments for the three months ended March 31, 2022 and 2021. Three Months Ended March 31, 2022 Peapack (In thousands) Banking Private Total Net interest income $ 37,999 $ 1,623 $ 39,622 Noninterest income (429 ) 15,143 14,714 Total income 37,570 16,766 54,336 Provision for credit losses 2,375 — 2,375 Compensation and employee benefits 16,403 6,046 22,449 Premises and equipment expense 3,931 716 4,647 FDIC insurance expense 471 — 471 Other operating expense 4,166 2,436 6,602 Total operating expense 27,346 9,198 36,544 Income before income tax expense 10,224 7,568 17,792 Income tax expense 2,300 2,051 4,351 Net income $ 7,924 $ 5,517 $ 13,441 Total assets at period end $ 6,155,011 $ 100,653 $ 6,255,664 Three Months Ended March 31, 2021 Peapack (In thousands) Banking Private Total Net interest income $ 30,226 $ 1,567 $ 31,793 Noninterest income 5,140 12,680 17,820 Total income 35,366 14,247 49,613 Provision for loan and lease losses 225 — 225 Compensation and employee benefits 16,428 5,562 21,990 Premises and equipment expense 3,570 543 4,113 FDIC insurance expense 585 — 585 Other operating expense 2,391 2,515 4,906 Total operating expense 23,199 8,620 31,819 Income before income tax (benefit)/expense 12,167 5,627 17,794 Income tax (benefit)/expense 3,159 1,457 4,616 Net income $ 9,008 $ 4,170 $ 13,178 Total assets at period end $ 5,883,553 $ 86,074 $ 5,969,627 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 8. FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value: Investment Securities: Loans Held for Sale, at Fair Value: Derivatives Individually Evaluated Loans: Other Real Estate Owned: Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by Management. Once received, a third party conducts a review of the appraisal for compliance with the Uniform Standards of Professional Appraisal Practice and appropriate analysis methods for the type of property. Subsequently, a member of the Credit Department reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals on collateral dependent impaired loans and other real estate owned (consistent for all loan types) are obtained on an annual basis, unless a significant change in the market or other factors warrants a more frequent appraisal. On an annual basis, Management compares the actual selling price of any collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value for other properties. The most recent analysis performed indicated that a discount up to 15 percent should be applied to appraisals on properties. The discount is determined based on the nature of the underlying properties, aging of appraisals and other factors. For each collateral-dependent impaired loan, we consider other factors, such as certain indices or other market information, as well as property specific circumstances to determine if an adjustment to the appraised value is needed. In situations where there is evidence of change in value, the Bank will determine if there is a need for an adjustment to the specific reserve on the collateral dependent impaired loans. When the Bank applies an interim adjustment, it generally shows the adjustment as an incremental specific reserve against the loan until it has received the full updated appraisal. All collateral-dependent impaired loans and other real estate owned valuations were supported by an appraisal less than 12 months old or in the process of obtaining an appraisal as of March 31, 2022. The following table summarizes, at the dates indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option: Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable March 31, Assets Inputs Inputs (In thousands) 2022 (Level 1) (Level 2) (Level 3) Assets: Available for sale: U.S. government-sponsored agencies $ 218,263 $ — $ 218,263 $ — Mortgage-backed securities-residential 340,513 — 340,513 — SBA pool securities 35,475 — 35,475 — State and political subdivisions 4,520 — 4,520 — Corporate bond 2,392 — 2,392 — CRA investment fund 14,003 14,003 — — Loans held for sale, at fair value 605 — 605 — Derivatives: Cash flow hedges 391 — 391 — Loan level swaps 8,908 — 8,908 — Total $ 625,070 $ 14,003 $ 611,067 $ — Liabilities: Derivatives: Cash flow hedges $ 1,074 $ — $ 1,074 $ — Loan level swaps 9,034 — 9,034 — Total $ 10,108 $ — $ 10,108 $ — Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2021 (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 272,221 $ — $ 272,221 $ — Mortgage-backed securities-residential 476,974 — 476,974 — SBA pool securities 39,561 — 39,561 — State and political subdivisions 5,476 — 5,476 — Corporate bond 2,521 — 2,521 — CRA investment fund 14,685 14,685 — — Loans held for sale, at fair value 3,040 — 3,040 — Derivatives: Loan level swaps 32,326 — 32,326 — Total $ 846,804 $ 14,685 $ 832,119 $ — Liabilities: Derivatives: Cash flow hedges $ 3,479 $ — $ 3,479 $ — Loan level swaps 34,569 — 34,569 — Total $ 38,048 $ — $ 38,048 $ — The Company has elected the fair value option for certain loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due nor on nonaccrual as of March 31, 2022 and December 31, 2021. The following tables present residential loans held for sale, at fair value at the dates indicated: (In thousands) March 31, 2022 December 31, 2021 Residential loans contractual balance $ 595 $ 2,992 Fair value adjustment 10 48 Total fair value of residential loans held for sale $ 605 $ 3,040 There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2022. The following tables summarize, at the dates indicated, assets measured at fair value on a non-recurring basis: Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable March 31, Assets Inputs Inputs (In thousands) 2022 (Level 1) (Level 2) (Level 3) Assets: Individually evaluated loans: Investment commercial real estate $ 10,000 $ — $ — $ 10,000 Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2021 (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Investment commercial real estate $ 8,516 $ — $ — $ 8,516 The carrying amounts and estimated fair values of financial instruments at March 31, 2022 are as follows: Fair Value Measurements at March 31, 2022 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 113,960 $ 113,960 $ — $ — $ 113,960 Securities available for sale 601,163 — 601,163 — 601,163 Securities held to maturity 106,816 — 100,314 — 100,314 CRA investment fund 14,003 14,003 — — 14,003 FHLB and FRB stock 18,570 — — — N/A Loans held for sale, at fair value 605 — 605 — 605 Loans held for sale, at lower of cost or fair value 26,350 — 29,644 — 29,644 Loans, net of allowance for credit losses 5,063,816 — — 4,887,836 4,887,836 Accrued interest receivable 22,890 — 2,071 20,819 22,890 Accrued interest receivable loan level swaps (1) 3,642 — 3,642 — 3,642 Cash flow hedges 391 — 391 — 391 Loan level swaps 8,908 — 8,908 — 8,908 Financial liabilities Deposits $ 5,387,416 $ 4,937,328 $ 446,422 $ — $ 5,383,750 Short-term borrowings 122,085 — 122,085 — 122,085 Subordinated debt 132,772 — — 131,839 131,839 Accrued interest payable 1,928 163 400 1,365 1,928 Accrued interest payable loan level swaps (2) 3,642 — 3,642 — 3,642 Cash flow hedges 1,074 — 1,074 — 1,074 Loan level swap 9,034 — 9,034 — 9,034 (1) Included in other assets in the Consolidated Statement of Condition. (2) Included in accrued expenses and other liabilities in the Consolidated Statement of Condition. The carrying amounts and estimated fair values of financial instruments at December 31, 2021 are as follows: Fair Value Measurements at December 31, 2021 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 146,804 $ 146,804 $ — $ — $ 146,804 Securities available for sale 796,753 — 796,753 — 796,753 Securities held to maturity 108,680 — 108,460 — 108,460 CRA investment fund 14,685 14,685 — — 14,685 FHLB and FRB stock 12,950 — — — N/A Loans held for sale, at fair value 3,040 — 3,040 — 3,040 Loans held for sale, at lower of cost or fair value 34,051 — 37,538 — 37,538 Loans, net of allowance for loan and lease losses 4,745,024 — — 4,767,293 4,767,293 Accrued interest receivable 21,589 — 2,443 19,146 21,589 Accrued interest receivable loan level swaps (1) 4,842 — 4,842 — 4,842 Loan level swaps 32,326 — 32,326 — 32,326 Financial liabilities Deposits $ 5,266,149 $ 4,791,341 $ 476,659 $ — $ 5,268,000 Subordinated debt 132,701 — — 140,556 140,556 Accrued interest payable 651 130 446 75 651 Accrued interest payable loan level swaps (2) 4,842 — 4,842 — 4,842 Cash flow hedges 3,479 — 3,479 — 3,479 Loan level swaps 34,569 — 34,569 — 34,569 (1) Included in other assets in the Consolidated Statement of Condition. (2) Included in accrued expenses and other liabilities in the Consolidated Statement of Condition. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9. REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following tables present the sources of noninterest income for the periods indicated: For the Three Months Ended March 31, (In thousands) 2022 2021 Service charges on deposits Overdraft fees $ 113 $ 93 Interchange income 342 317 Other 497 436 Wealth management fees (1) 14,834 12,131 Corporate advisory fee income 1,561 1,098 Other (2) (2,633 ) 3,745 Total noninterest other income $ 14,714 $ 17,820 ( 1) Includes investment brokerage fees. ( 2) All of the other category is outside the scope of ASC 606. The following table presents the sources of noninterest income by operating segment for the periods indicated: For the Three Months Ended March 31, For the Three Months Ended March 31, 2022 2021 (In thousands) Wealth Wealth Revenue by Operating Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 113 $ — $ 113 $ 93 $ — $ 93 Interchange income 342 — 342 317 — 317 Other 497 — 497 436 — 436 Wealth management fees (1) — 14,834 14,834 — 12,131 12,131 Corporate advisory fee income 1,561 — 1,561 1,098 — 1,098 Other (2) (2,942 ) 309 (2,633 ) 3,196 549 3,745 Total noninterest income $ (429 ) $ 15,143 $ 14,714 $ 5,140 $ 12,680 $ 17,820 (1) Includes investment brokerage fees. (2) All of the other category is outside the scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 follows: Service charges on deposit accounts Interchange income Wealth management fees (gross) Investment brokerage fees (net) th Corporate advisory fee income: The Company’s mergers and acquisition advisory fees generally consist of a nonrefundable up-front fee and success fee. The nonrefundable fee is recorded as deferred revenue upon receipt and recognized at a point in time when the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management’s judgement is required in determining when a transaction is considered to be terminated. Gains/(losses) on sales of OREO : The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform its obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. Other |
OTHER OPERATING EXPENSES
OTHER OPERATING EXPENSES | 3 Months Ended |
Mar. 31, 2022 | |
Other Income And Expenses [Abstract] | |
OTHER OPERATING EXPENSES | 10. OTHER OPERATING EXPENSES The following table presents the major components of other operating expenses for the periods indicated: Three Months Ended March 31, (In thousands) 2022 2021 Professional and legal fees $ 1,138 $ 1,256 Telephone 334 334 Advertising 290 214 Amortization of intangible assets 431 368 Branch restructure 372 — Other operating expenses 3,364 2,734 Total other operating expenses $ 5,929 $ 4,906 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 11. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the three months ended March 31, 2022 and 2021: Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive March 31, March 31, (In thousands) 2022 Reclassifications Income/(Loss) 2022 2022 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ (9,873 ) $ (35,602 ) $ 5,028 $ (30,574 ) $ (40,447 ) Gain/(loss) on cash flow hedges (2,501 ) 2,010 — 2,010 (491 ) Accumulated other comprehensive gain/(loss), net of tax $ (12,374 ) $ (33,592 ) $ 5,028 $ (28,564 ) $ (40,938 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive March 31, March 31, (In thousands) 2021 Reclassifications Income/(Loss) 2021 2021 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ 5,521 $ (13,415 ) $ — $ (13,415 ) $ (7,894 ) Gain/(loss) on cash flow hedges (6,913 ) 1,043 — 1,043 (5,870 ) Accumulated other comprehensive gain/(loss), net of tax $ (1,392 ) $ (12,372 ) $ — $ (12,372 ) $ (13,764 ) The following represents the reclassifications out of accumulated other comprehensive income/(loss) for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, (In thousands) 2022 2021 Affected Line Item in Income Statement Unrealized gains/(losses) on securities available for sale: Reclassification adjustment for amounts included in net income $ 6,609 $ — Securities losses, net Tax effect (1,581 ) — Income tax expense Total reclassifications, net of tax $ 5,028 $ — |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 12. DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest Rate Swaps Designated as Cash Flow Hedges: In March 2022, the Company entered into four forward starting interest rate swaps with a total notional amount of $100.0 million. These swaps will effectively extend the interest rate protection of four existing swaps that are maturing in 2023 for an additional five years. As such, they are designated as cash flow hedges of certain interest-bearing deposits. The Company will receive variable amounts and pay fixed amounts. The weighted-average fixed pay rate on these forward swaps was 2.25% as of March 31, 2022. As of March 31, 2022, an unrealized loss of $18,000 was recorded in accumulated other comprehensive income related to these forward starting swaps. The tables below do not include the impact of these forward swaps. The following table presents information about the interest rate swaps designated as cash flow hedges as of March 31, 2022 and December 31, 2021: (Dollars in thousands) March 31, 2022 December 31, 2021 Notional amount $ 230,000 $ 230,000 Weighted average pay rate 1.99 % 1.99 % Weighted average receive rate 0.23 % 0.20 % Weighted average maturity 0.79 years 1.04 years Unrealized loss, net $ (665 ) $ (3,479 ) Number of contracts 11 13 March 31, 2022 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ (665 ) Total included in other assets 80,000 234 Total included in other liabilities 150,000 (899 ) December 31, 2021 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ (3,479 ) Total included in other assets — — Total included in other liabilities 230,000 (3,479 ) Cash Flow Hedges The following table presents the net gain/(loss) recorded in accumulated other comprehensive income/(loss) and the consolidated financial statements relating to the cash flow derivative instruments for the three months ended March 31, 2022 and 2021: For the Three Months Ended March 31, (In thousands) 2022 2021 Interest rate contracts Gain/(loss) recognized in other comprehensive income (effective portion) $ 2,796 $ 1,450 Gain/(loss) reclassified from other comprehensive income to interest expense — — Gain/(loss) recognized in other noninterest income — — Net interest expense recorded on these swap transactions totaled $999,000 and $1.2 million for the three months ended March 31, 2022 and 2021, respectively. Derivatives Not Designated as Accounting Hedges The Company offers facility specific/loan level swaps to its customers and offsets its exposure from such contracts by entering mirror image swaps with a financial institution/swap counterparty (loan level / back-to-back swap program). The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting (“standalone derivatives”). The notional amount of the swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual contracts. The fair value of the swaps is recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal amounts for these transactions. The Company maintains a valuation allowance on these loan level swaps of $126,000 $3.6 Information about these swaps is as follows: (Dollars in thousands) March 31, 2022 December 31, 2021 Notional amount $ 677,502 $ 702,210 Fair value $ 9,034 $ 32,326 Weighted average pay rates 3.98 % 4.00 % Weighted average receive rates 2.20 % 1.83 % Weighted average maturity 5.2 years 5.5 years Number of contracts 85 86 |
SUBORDINATED DEBT
SUBORDINATED DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Subordinated Longterm Debt Current And Noncurrent [Abstract] | |
SUBORDINATED DEBT | 13. SUBORDINATED DEBT In December 2017, the Company issued $35.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “2017 Notes”) to certain institutional investors. The 2017 Notes are non-callable for five years, have a stated maturity of December 15, 2027, and bear interest at a fixed rate of 4.75 percent until December 15, 2022. From December 16, 2022 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month London Interbank Offered Rate (“LIBOR”) rate plus 254 basis points, payable quarterly in arrears. Debt issuance costs incurred totaled $875,000 and are being amortized to maturity. In December 2020, the Company issued $100.0 million in aggregate principal amount of fixed to floating subordinates notes (the “2020 Notes”) to certain institutional investors. The 2020 Notes are non-callable for five years, have a stated maturity of December 22, 2030, and bear interest at a fixed rate of 3.50 percent until December 22, 2025. From December 23, 2025 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 326 basis points, payable quarterly in arrears. Debt issuance costs incurred totaled $1.9 million and are being amortized to maturity. The Company may use the proceeds from the issuance of the 2020 Notes to refinance then-outstanding debt, for stock repurchases, acquisitions of wealth management firms, as well as other general corporate purposes. Subordinated debt is presented net of issuance costs on the Consolidated Statements of Condition. The subordinated debt issuances are included in the Company’s regulatory total capital amount and ratio. In connection with the issuance of the 2020 Notes, the Company obtained ratings from Kroll Bond Rating Agency (“KBRA”) and Moody’s Investors Services (“Moody’s). KBRA assigned an investment grade rating of BBB- and Moody’s assigned an investment grade rating of Baa3 for the 2020 Notes at the time of issuance. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | 14. LEASES The Company maintains certain property and equipment under direct financing and operating leases. As of March 31, 2022, the Company's operating lease ROU asset and operating lease liability totaled $14.7 million and $15.2 million, respectively. As of December 31, 2021, the Company's operating lease ROU asset and operating lease liability totaled $9.8 million and $10.1 million, respectively. A weighted average discount rate of 2.66 percent and 2.78 percent was used in the measurement of the ROU asset and lease liability as of March 31, 2022 and December 31, 2021, respectively. The Company's leases have remaining lease terms between one month to 15 years, with a weighted average lease term of 7.69 years at March 31, 2022. The Company's leases had remaining lease terms between four months to 15 years, with a weighted average lease term of 6.09 years at December 31, 2021. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. Total operating lease costs were $868,000 and $701,000 for the three months ended March 31, 2022 and 2021, respectively. The variable lease costs were $77,000 and $84,000 for the three months ended March 31, 2022 and 2021, respectively. The following is a schedule of the Company's operating lease liabilities by contractual maturity as of March 31, 2022: (In thousands) 2022 $ 1,995 2023 2,816 2024 2,299 2025 2,048 2026 1,487 Thereafter 6,194 Total lease payments 16,839 Less: imputed interest 1,684 Total present value of lease payments $ 15,155 The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the three months ended March 31, 2022 and 2021: For the Three Months Ended (In thousands) 2022 2021 Right-of-use asset obtained in exchange for lease obligation $ 5,446 $ 1,412 Operating cash flows from operating leases 665 619 Operating cash flows from direct finance leases 68 79 Financing cash flows from direct finance leases 187 187 |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | 15. ACCOUNTING PRONOUNCEMENTS In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this ASU can be adopted immediately and are effective through December 31, 2022. The Company is evaluating alternative reference rates including SOFR in preparation for a rate index replacement and the adoption of ASU 2020-04. In March 2022, FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815) (“ASU 2022-01”) which clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios and financial assets. Among other things, the amended guidance established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible and renamed that method the “portfolio layer” method. ASU 2022-01 is effective January 1, 2023 and is not expected to have a material impact on our consolidated financial statements. In March 2022, FASB issued ASU 2022-02, Financial Instruments–Credit Losses (Topic 326); Troubled Debt Restructurings and Vintage Disclosures Financial Instruments–Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Organization | Principles of Consolidation and Organization: The consolidated financial statements of the Company are prepared on the accrual basis and include the accounts of the Company and its wholly-owned subsidiary, Peapack-Gladstone Bank (the “Bank”). The consolidated financial statements also include the Bank’s wholly-owned subsidiaries: • PGB Trust & Investments of Delaware • Peapack Capital Corporation (“PCC”) • Murphy Capital Management (“Murphy Capital”) • Peapack-Gladstone Mortgage Group, Inc., which owns 99 percent of Peapack Ventures, LLC and 79 percent of Peapack-Gladstone Realty, Inc., a New Jersey real estate investment company • PGB Trust & Investments of Delaware, which owns one percent of Peapack Ventures, LLC • Peapack Ventures, LLC, which owns the remaining 21 percent of Peapack-Gladstone Realty, Inc. • PGB Securities, Inc. (formed in the second quarter of 2020) While the following footnotes include the consolidated results of the Company, the Bank and their subsidiaries, these footnotes primarily reflect the Bank’s and its subsidiaries’ activities. All significant intercompany balances and transactions have been eliminated from the accompanying consolidated financial statements. |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation : The consolidated financial statements have been prepared in accordance with GAAP. In preparing the financial statements, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the statement of condition and revenues and expenses for the periods presented. Actual results could differ from those estimates. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards : On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”) which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan and lease receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet commitments. Results for reporting periods beginning after January 1, 2022, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $3.9 million as of January 1, 2022, for the cumulative effect of adopting ASC 326. The transition adjustment includes a $5.5 million reduction to our allowance for credit losses. The lower allowance was in part attributed to historically low charge-offs combined with the shorter duration of the loan portfolio employed in our CECL analysis. Further, the incurred loss method required significant qualitative factors, including factors related to Covid, and the use of a multiplier for potential losses on criticized and classified loans, neither of which are included within the CECL methodology. The CECL methodology utilizes significantly less qualitative factors as it uses economic factors and historical losses over a full economic cycle and calculates losses based on DCF on an individual loan basis. Accordingly, the CECL model quantitatively accounts for some of the qualitative factors utilized in the incurred loss methodology. The following table illustrates the impact to our financial statements as of January 1, 2022 upon adoption of ASC 326: January 1, 2022 (In thousands) Impact to Consolidated Statement of Condition from ASC-326 Adoption Tax Effect Impact to Retained Earnings from ASC-326 Adoption Allowance for credit losses on loans $ (5,536 ) $ 1,490 $ 4,046 Allowance for credit losses on off-balance sheet commitments 188 (51 ) 137 Total impact from ASC 326 adoption $ (5,348 ) $ 1,439 $ (3,909 ) |
Segment Information | Segment Information : The Company’s business is conducted through two business segments: (1) its banking segment (“Banking”), which involves the delivery of loan and deposit products to customers, and (2) the Peapack Private Wealth Management Division (“Peapack Private”), which includes asset management services to individuals and institutions. Management uses certain methodologies to allocate income and expense to the business segments. The Banking segment includes: commercial (includes commercial and industrial (“C&I”) and equipment financing), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support services. Peapack Private includes: investment management services for individuals and institutions; personal trust services, including services as executor, trustee, administrator and custodian; and other financial planning and advisory services. This segment also includes the activity from the Delaware subsidiary, PGB Trust & Investments of Delaware, and Murphy Capital. Wealth management fees are primarily earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management and/or administration (“AUM”) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed (i.e. trade date). |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of the statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits and federal funds sold. Generally, federal funds are sold for one-day |
Interest-Earning Deposits in Other Financial Institutions | Interest-Earning Deposits in Other Financial Institutions : Interest-earning deposits in other financial institutions mature within one year and are carried at cost. |
Securities | Securities : Prior to January 1, 2022 , Management evaluated securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warranted. For securities in an unrealized loss position, Management considered the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assessed whether it intended to sell, or it is more likely than not that it was required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value was recognized as impairment through earnings. For debt securities that did not meet the aforementioned criteria, the amount of impairment was split into two components as follows: (1) other-than-temporary impairment related to credit loss, which would be recognized through the income statement and (2) other-than-temporary impairment related to other factors, which would be recognized in other comprehensive income. Effective January 1, 2022 , - , Debt securities are classified as held to maturity and carried at amortized cost when Management has the positive intent and ability to hold them to maturity. Other debt securities are classified as available for sale and are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. The Company also has an investment in a Community Reinvestment Act (“CRA”) investment fund, which is classified as an equity security. Interest income includes amortization of purchase premiums and discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated, and premiums on callable debt securities, which are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock | Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock, based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank is also a member of the Federal Reserve Bank of New York and required to own a certain amount of FRB stock. FRB stock is carried at cost and classified as a restricted security. Dividends are reported as income. |
Loans Held for Sale | Loans Held for Sale: Mortgage loans originated with the intent to sell in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released; therefore, no servicing rights are recorded. Gains and losses on sales of mortgage loans, shown as gain on sale of loans on the Statement of Income, are based on the difference between the selling price and the carrying value of the related loan sold. SBA loans originated with the intent to sell in the secondary market are carried at the lower of cost or fair value. SBA loans are generally sold with the servicing rights retained. Gains and losses on the sale of SBA loans are based on the difference between the selling price and the carrying value of the related loan sold. Total SBA loans serviced totaled $118.1 million and $97.5 million as of March 31, 2022 and December 31, 2021, respectively. SBA loans held for sale totaled $26.4 million and $32.5 million at March 31, 2022 and December 31, 2021, respectively. Loans originated with the intent to hold and subsequently transferred to loans held for sale are carried at the lower of cost or fair value. These are loans that the Company no longer has the intent to hold for the foreseeable future. |
Loans | Loans: Loans that Management has the intent and ability to hold for the foreseeable future or until maturity are stated at the principal amount outstanding. Interest on loans is recognized based upon the principal amount outstanding. Loans are stated at face value, less purchased premium and discounts and net deferred fees. Loan origination fees and certain direct loan origination costs are deferred and recognized on a level-yield method over the life of the loan as an adjustment to the loan’s yield. The definition of recorded investment in loans includes accrued interest receivable and deferred fees/costs, however, for the Company’s loan disclosures, accrued interest and deferred fees/costs were excluded as the impact was not material. Loans are considered past due when they are not paid within 30 days in accordance with contractual terms. The accrual of income on loans, including individually evaluated loans, is discontinued if, in the opinion of Management, principal or interest is not likely to be paid in accordance with the terms of the loan agreement, or when principal or interest is past due 90 days unless the asset is both well secured and in the process of collection. All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Payments received on nonaccrual loans are recorded as principal payments. A nonaccrual loan is returned to accrual status only when interest and principal payments are brought current and future payments are reasonably assured, generally when the Bank receives contractual payments for a minimum of six consecutive months. Commercial loans are generally charged off , in whole or in part, after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Consumer closed-end loans are generally charged off after they become 120 days past due and open-end loans after 180 days . Subsequent payments are credited to income only if collection of principal is not in doubt. If principal and interest payments are brought contractually current and future collectability is reasonably assured, loans may be returned to accrual status. Nonaccrual mortgage loans are generally charged off to the extent that the value of the underlying collateral does not cover the outstanding principal balance. The majority of the Company ’s loans are secured by real estate in New Jersey, New York and Pennsylvania. |
Allowance for Credit Losses | Allowance for Credit Losses : On January 1, 2022, the Company adopted ASU 2016-13, Topic 326) which replaced the incurred loss methodology with CECL for financial instruments measured at amortized cost and other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable economic forecasts of future events and circumstances. The allowance for credit losses (“ACL”) on loans held for investment is the combination of the allowance for loan losses and the reserve for unfunded loan commitments. The allowance for loan losses is reported as a reduction of the amortized cost basis of loans, while the reserve for unfunded loan commitments is included within "other liabilities" on the Consolidated Statements of Condition. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates. The amortized cost basis of loans does not include accrued interest receivable, which is included in "accrued interest receivable" on the Consolidated Statements of Condition. The "Provision for credit losses" on the Consolidated Statements of Income is a combination of the provision for credit losses and the provision for unfunded loan commitments. Allowance for Loan Losses under incurred methodology prior to CECL Adoption on January 1, 2022 The allowance for loan and lease losses is a valuation allowance for credit losses that is Management’s estimate of probable incurred losses in the loan portfolio. Under this accounting method, the process to determine reserves utilizes analytical tools and Management judgment and is reviewed on a quarterly basis. When Management is reasonably certain that a loan balance is not fully collectable, an impairment analysis is completed whereby a specific reserve may be established or a full or partial charge off is recorded against the allowance. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the size and composition of the portfolio, information about specific borrower situations, estimated collateral values, asset quality information, economic conditions and other factors. Allocations of the allowance may be made for specific loans via a specific reserve, but the entire allowance is available for any loan that, in Management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans are individually evaluated for impairment when they are classified as substandard by Management. If a loan is considered impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or if repayment is expected solely from the underlying collateral, the loan principal balance is compared to the fair value of collateral less estimated disposition costs to determine the need, if any, for a charge off. The general component of the allowance covers non-impaired loans and is based primarily on the Company’s historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company on a weighted average basis over the previous three years. This actual loss experience is adjusted by other qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies, charge- offs and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staffing and experience; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. For loans that are graded as non-impaired, the Company allocates a higher general reserve percentage than pass-rated loans using a multiple that is calculated annually through a migration analysis. At both December 31, 2021 and 2020, respectively, the multiple was 2.25 times for non-impaired special mention loans and 3.25 times for non-impaired substandard loans. ACL in accordance with CECL methodology With respect to pools of similar loans, that are collectively evaluated, an appropriate level of general allowance is determined by portfolio segment using a non-linear discounted cash flow (“DCF”) model. The DCF model captures losses over the historical charge-off and prepayment cycle and applies those losses at a loan level over the remaining maturity of the loan. The model then calculates a historical loss rate using the average losses over the reporting period, which is then applied to each segment utilizing a standard reversion rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, including but not limited to unemployment rates, national consumer price and confidence indices. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. Also included in the ACL are qualitative factors based on the risks present for each portfolio segment. These qualitative factors include the following: levels of and trends in delinquencies and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staffing and experience; industry conditions; and effects of changes in credit concentrations. When management identifies loans that do not share common risk characteristics (i.e., are not similar to other loans within a pool) they are evaluated on an individual basis. These loans are not included in the collective evaluation. For loans identified as having a likelihood of foreclosure or that the borrower is experiencing financial difficulty, a collateral dependent approach is used. These are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral. Under CECL, for collateral dependent loans, the Company has adopted the practical expedient method to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The CECL methodology requires a significant amount of management judgment in determining the appropriate allowance for credit losses. Several of the steps in the methodology involve judgment and are subjective in nature including, among other things: segmenting the loan portfolio; determining the amount of loss history to consider; selecting predictive econometric regression models that use appropriate macroeconomic variables; determining the methodology to forecast prepayments; selecting the most appropriate economic forecast scenario; determining the length of the reasonable and supportable forecast and reversion periods; estimating expected utilization rates on unfunded loan commitments; and assessing relevant and appropriate qualitative factors. In addition, the CECL methodology is dependent on economic forecasts, which are inherently imprecise and will change from period to period. Although the allowance for credit losses is considered appropriate, there can be no In determining an appropriate amount for the allowance, the Bank segments and aggregated the loan portfolio based on common characteristics. The following segments have been identified: Primary Residential Mortgages Junior Lien Loan on Residence (which include home equity lines of credit) loans are subordinate to a first mortgage which may be from another lending institution. Primary risk characteristics associated with JLLs and home equity lines of credit typically involve : major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as for major medical issues or catastrophic events; and divorce or death. Further, real estate values could drop significantly and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank. In addition, home equity lines of credit typically are made with variable or floating interest rates, which could expose the borrower to higher debt service requirements in a rising interest rate environment. Further, real estate values could drop significantly and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank. Multifamily Owner-Occupied Commercial Real Estate Loans Investment Commercial Real Estate Loans. Commercial and Industrial Loans Leasing Finance Asset risk in PCC’s portfolio is generally recognized through changes to loan income, or through changes to lease related income streams due to fluctuations in lease rates. Changes to lease income can occur when the existing lease contract expires, the asset comes off lease or the business seeks to enter a new lease agreement. Asset risk may also change through depreciation, resulting from changes in the residual value of the operating lease asset or through impairment of the asset carrying value, which can occur at any time during the life of the asset. Credit risk in PCC’s portfolio generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions. Credit losses can impact multiple parts of the income statement including loss of interest/lease/rental income and/or higher costs and expenses related to the repossession, refurbishment, re-marketing and or re-leasing of assets. Construction Risks common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Consumer and Other A troubled debt restructuring (“TDR”) is a modified loan with concessions made by the lender to a borrower who is experiencing financial difficulty. TDRs are impaired and are generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral, less estimated disposition costs. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for credit losses. The Coronavirus Aid, Relief, and Economic Security ("CARES”) Act, which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP, a llows financial institutions to suspend application of certain current TDR accounting guidance under ASC 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest or change the interest rate on the loan. The revised CARES Act extended TDR relief to loan modifications through January 1, 2022. In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide further interpretation of when a borrower is experiencing financial difficulty, specifically indicating that if the modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not experiencing financial difficulty under ASC 310-40. The Company continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing an appropriate allowance for credit losses on its loan portfolio. The Company approved total loan modifications under the CARES Act of $947.0 million, of which $12.7 million remain outstanding as of March 31, 2022. Another key program under the CARES Act is the Paycheck Protection Program (“PPP”) administered by the SBA which provided funding to qualifying businesses and organizations. Under this program, the Company provided fundings of approximately $650 million. In the third quarter of 2020 and second quarter of 2021, the Company sold approximately $355.0 million and $56.5 million, respectively, of such loans, servicing rights released to a third party. The Company also referred approximately $124 million of PPP loans to a third party during the first six months of 2021. The Company has approximately $9.6 million of PPP loans remaining in its portfolio as of March 31, 2022 and believes that substantially all of these loans will be forgiven by the SBA. These loans are fully guaranteed by the SBA and provide for full forgiveness of the loans during a specified forgiveness period that meet specific guidelines provided by the SBA. Loans that do not meet the forgiveness criteria will enter a repayment period of 2 or 5 years |
Leases | Leases: At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding right-of-use (“ROU”) asset and operating lease liability are recorded as separate line items on the statement of condition. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made. If the rate implicit in the lease is not readily determinable, the incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s statement of condition, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. The Company maintains certain property and equipment under direct financing and operating leases. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space and are classified as operating leases. The ROU asset is measured at the amount of the lease liability adjusted for lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the ROU asset. Operating lease expense consists of: a single lease cost allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the ROU asset. There are no terms or conditions related to residual value guarantees and no restrictions or covenants that would impact the Company’s ability to pay dividends or to incur additional financial obligations. |
Derivatives | Derivatives: At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”); (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”); or (3) an instrument with no hedging designation. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For cash flow hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative continues to be reported at fair value in the statement of condition, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminated, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company also offers facility specific / loan level swaps to its customers and offsets its exposure from such contracts by entering into mirror image swaps with a financial institution / swap counterparty (loan level / back-to-back swap program). The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting (“standalone derivatives”). The notional amount of the swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual contracts. The fair value of the swaps is recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal amounts for these transactions. The Company is exposed to losses if a customer counterparty fails to make its payments under a contract in which the Company is in a net receiving position. At this time, the Company anticipates that its counterparties will be able to fully satisfy their obligations under the agreements. All of the contracts to which the Company is a party settle monthly. Further, the Company has netting agreements with the dealers with which it does business. |
Stock-Based Compensation | Stock-Based Compensation: The Company’s 2006 Long-Term Stock Incentive Plan, 2012 Long-Term Stock Incentive Plan and 2021 Long-Term Stock Incentive Plan allow the granting of shares of the Company’s common stock as incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units and stock appreciation rights to directors, officers and employees of the Company and its subsidiaries. There are no shares remaining for issuance with respect to the stock option plan approved in 2002, however options granted under this plan are still included in the amounts below. Options granted under these plans are, in general, exercisable not earlier than one year after the date of grant, at a price equal to the fair value of common stock on the date of grant and expire not more than ten years after the date of grant. Stock options may vest during a period of up to five years after the date of grant. Some options granted to officers at or above the senior vice president level were immediately exercisable at the date of grant. The Company has a policy of using authorized but unissued shares to satisfy option exercises. Upon adoption of Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. For the Company’s stock option plans, changes in options outstanding during the three months ended March 31, 2022, were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2022 31,340 $ 14.59 Exercised during 2022 (9,260 ) 13.03 Expired during 2022 — — Forfeited during 2022 (480 ) 10.72 Balance, March 31, 2022 21,600 $ 15.35 0.94 years $ 419 Vested and expected to vest 21,600 $ 15.35 0.94 years $ 419 Exercisable at March 31, 2022 21,600 $ 15.35 0.94 years $ 419 The aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the first quarter of 2022 and the exercise price, multiplied by the number of in-the-money options. The Company’s closing stock price on March 31, 2022 was $34.75. There were no stock options granted during the three months ended March 31, 2022. The Company issued performance-based and service-based restricted stock units in 2022 and 2021. Service-based units vest ratably over a three- or five-year The performance-based awards are dependent upon the Company meeting certain performance criteria and, to the extent the performance criteria are met, will cliff vest at the end of the performance period, which is generally three years. There were 71,482 performance-based restricted stock units granted in the first quarter of 2022. Changes in non-vested shares dependent on performance criteria for the three months ended March 31, 2022 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2022 225,435 $ 20.29 Granted during 2022 71,482 35.93 Vested during 2022 (53,729 ) 26.34 Forfeited during 2022 (5,284 ) 17.92 Balance, March 31, 2022 237,904 $ 23.68 Changes in service-based restricted stock awards/units for the three months ended March 31, 2022 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2022 701,145 $ 21.93 Granted during 2022 233,910 36.86 Vested during 2022 (252,955 ) 21.46 Forfeited during 2022 (16,434 ) 19.80 Balance, March 31, 2022 665,666 $ 27.41 As of March 31, 2022, there was $20.9 million of total unrecognized compensation cost related to service-based and performance-based units. That cost is expected to be recognized over a weighted average period of 1.57 years. Stock compensation expense recorded for the first quarters of 2022 and 2021 totaled $1.9 million and $1.7 million, respectively. |
Employee Stock Purchase Plan | Employee Stock Purchase Plan (“ESPP”): The ESPP provides for the granting of rights to purchase up to 150,000 shares of Peapack-Gladstone Financial Corporation common stock. In May 2020, shareholders approved an increase of 200,000 shares of Peapack-Gladstone Financial Corporation common stock to be issued under the ESPP. Subject to certain eligibility requirements and restrictions, the ESPP provided for a single Offering Period of twelve months in duration, which commenced on May 16, 2019 and ended on May 15, 2020. The ESPP was revised to allow for the purchase of shares during four three-month Offering Periods of each calendar year. The Offering Periods end on February 16, May 16, August 16 and November 16 of each calendar year. Each participant in the Offering Period is granted an option to purchase a number of shares and may contribute between one percent and 15 percent of their compensation. At the end of each Offering Period, the number of shares to be purchased by the employee is determined by dividing the employee’s contributions accumulated during the Offering Period by the applicable purchase price. The purchase price is an amount equal to 85 percent of the closing market price of a share of common stock on the purchase date. Participation in the ESPP is entirely voluntary and employees can cancel their purchases at any time during the period without penalty. The fair value of each share purchase right is determined using the Black-Scholes option pricing model. The Company recorded $35,000 and $30,000 in salaries and employee benefits expense for the three months ended March 31, 2022 and 2021, respectively related to the ESPP. Total shares issued under the ESPP during the first quarter of 2022 and 2021 were 6,808 and 8,425, respectively. |
Earnings per share - Basic and Diluted | Earnings per share – Basic and Diluted: The following is a reconciliation of the calculation of basic and diluted earnings per share. Basic net income per share is calculated by dividing net income available to shareholders by the weighted average shares outstanding during the reporting period. Diluted net income per share is computed similarly to that of basic net income per share, except that the denominator is increased to include the number of additional shares that would have been outstanding utilizing the Treasury Stock Method if all shares underlying potentially dilutive stock options were issued and all shares of restricted stock, stock warrants or restricted stock units were to vest during the reporting period. For the three months ended March 31, 2022, restricted stock units totaling 299,433 were not included in the computation of diluted earnings per share because they were anti-dilutive. For the three months ended March 31, 2021, restricted stock units totaling 239,472 were not included in the computation of diluted earnings per share because they were anti-dilutive. Anti-dilutive shares are common stock equivalents with weighted average exercise prices in excess of the average market value for the periods presented. Three Months Ended March 31, (Dollars in thousands, except per share data) 2022 2021 Net income available to common shareholders $ 13,441 $ 13,178 Basic weighted average shares outstanding 18,339,013 18,950,305 Plus: common stock equivalents 607,670 581,384 Diluted weighted average shares outstanding 18,946,683 19,531,689 Net income per share Basic $ 0.73 $ 0.70 Diluted 0.71 0.67 |
Income Taxes | Income Taxes: The Company files a consolidated Federal income tax return. Separate state income tax returns are filed for each subsidiary based on current laws and regulations. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on the enacted tax rates. Such tax assets and liabilities are adjusted for the effect of a change in tax rates in the period of enactment. The Company recognizes a tax position as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company is no longer subject to examination by the U.S. Federal tax authorities for years prior to 2018 or by New Jersey tax authorities for years prior to 2016. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements. |
Restrictions on Cash | Restrictions on Cash: A large portion of cash on hand or on deposit with the Federal Reserve Bank (“FRB”) was required to meet regulatory reserve and clearing requirements. Prior to March 2020, reserves were in the form of cash and balances with the FRB and included in interest-earning deposits in our statement of condition. The FRB suspended cash reserve requirements effective March 26, 2020. |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss): Comprehensive income/(loss) consists of net income and the change during the period in the Company’s net unrealized gains or losses on securities available for sale and unrealized gains and losses on cash flow hedge, net of tax, less adjustments for realized gains and losses. |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Risks and Uncertainties | Risks and Uncertainties: The Company expects COVID-19 to have an impact on our operations but cannot determine or estimate the full impact at this time. It is possible that estimates made in the Company’s consolidated financial statements could be materially and adversely impacted as a result of the conditions created by COVID-19, including estimates regarding expected provision for credit losses and impairment of goodwill. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree (if any), over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill , which includes assembled workforce has an indefinite life on our statement of financial condition. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill and assembled workforce are the intangible assets with an indefinite life on our balance sheet. Other intangible assets, which primarily consist of customer relationship intangible assets arising from acquisitions, are amortized on an accelerated basis over their estimated useful lives, which range from 5 to 15 years. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Impact to Financial Statements Upon Adoption of ASC 326 | The following table illustrates the impact to our financial statements as of January 1, 2022 upon adoption of ASC 326: January 1, 2022 (In thousands) Impact to Consolidated Statement of Condition from ASC-326 Adoption Tax Effect Impact to Retained Earnings from ASC-326 Adoption Allowance for credit losses on loans $ (5,536 ) $ 1,490 $ 4,046 Allowance for credit losses on off-balance sheet commitments 188 (51 ) 137 Total impact from ASC 326 adoption $ (5,348 ) $ 1,439 $ (3,909 ) |
Schedule of Changes in Options Outstanding | For the Company’s stock option plans, changes in options outstanding during the three months ended March 31, 2022, were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2022 31,340 $ 14.59 Exercised during 2022 (9,260 ) 13.03 Expired during 2022 — — Forfeited during 2022 (480 ) 10.72 Balance, March 31, 2022 21,600 $ 15.35 0.94 years $ 419 Vested and expected to vest 21,600 $ 15.35 0.94 years $ 419 Exercisable at March 31, 2022 21,600 $ 15.35 0.94 years $ 419 |
Schedule of Changes in Non-Vested Performance-Based Shares | Changes in non-vested shares dependent on performance criteria for the three months ended March 31, 2022 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2022 225,435 $ 20.29 Granted during 2022 71,482 35.93 Vested during 2022 (53,729 ) 26.34 Forfeited during 2022 (5,284 ) 17.92 Balance, March 31, 2022 237,904 $ 23.68 |
Schedule of Changes in Service-Based Restricted Stock Awards/Units | Changes in service-based restricted stock awards/units for the three months ended March 31, 2022 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2022 701,145 $ 21.93 Granted during 2022 233,910 36.86 Vested during 2022 (252,955 ) 21.46 Forfeited during 2022 (16,434 ) 19.80 Balance, March 31, 2022 665,666 $ 27.41 |
Schedule of Calculation of Basic and Diluted Earnings per Share | For the three months ended March 31, 2022, restricted stock units totaling 299,433 were not included in the computation of diluted earnings per share because they were anti-dilutive. For the three months ended March 31, 2021, restricted stock units totaling 239,472 were not included in the computation of diluted earnings per share because they were anti-dilutive. Anti-dilutive shares are common stock equivalents with weighted average exercise prices in excess of the average market value for the periods presented. Three Months Ended March 31, (Dollars in thousands, except per share data) 2022 2021 Net income available to common shareholders $ 13,441 $ 13,178 Basic weighted average shares outstanding 18,339,013 18,950,305 Plus: common stock equivalents 607,670 581,384 Diluted weighted average shares outstanding 18,946,683 19,531,689 Net income per share Basic $ 0.73 $ 0.70 Diluted 0.71 0.67 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investment Securities Available For Sale [Abstract] | |
Schedule of Amortized Cost and Approximate Fair Value of Securities Available for Sale | A summary of amortized cost and approximate fair value of investment securities available for sale and held to maturity included in the Consolidated Statements of Condition as of March 31, 2022 and December 31, 2021 follows: March 31, 2022 Gross Gross Amortized Unrealized Unrealized Allowance for Fair (In thousands) Cost Gains Losses Credit Losses Value Securities Available for Sale: U.S government-sponsored agencies $ 244,761 $ — $ (26,498 ) $ — $ 218,263 Mortgage-backed securities–residential 364,177 378 (24,042 ) — 340,513 SBA pool securities 38,326 2 (2,853 ) — 35,475 State and political subdivisions 4,523 3 (6 ) — 4,520 Corporate bond 2,500 — (108 ) — 2,392 Total securities available for sale $ 654,287 $ 383 $ (53,507 ) $ — $ 601,163 Securities Held to Maturity: U.S. government-sponsored agencies $ 40,000 $ — $ (1,982 ) $ — $ 38,018 Mortgage-backed securities–residential 66,816 — (4,520 ) — 62,296 Total $ 106,816 $ — $ (6,502 ) $ — $ 100,314 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Securities Available for Sale: U.S government-sponsored agencies $ 280,045 $ — $ (7,824 ) $ 272,221 Mortgage-backed securities–residential 481,062 3,849 (7,937 ) 476,974 SBA pool securities 40,649 12 (1,100 ) 39,561 State and political subdivisions 5,431 45 — 5,476 Corporate bond 2,500 21 — 2,521 Total securities available for sale $ 809,687 $ 3,927 $ (16,861 ) $ 796,753 Securities Held to Maturity: U.S. government-sponsored agencies $ 40,000 $ 7 $ (25 ) $ 39,982 Mortgage-backed securities–residential 68,680 67 (269 ) 68,478 Total $ 108,680 $ 74 $ (294 ) $ 108,460 |
Summary of Gross Gains, Gross Losses and Net Tax Benefit Related to Proceeds on Sales of Securities Available for Sale | The following table presents a summary of the gross gains, gross losses and net tax benefit related to proceeds on sales of securities available for sale for the quarter ended March 31, 2022: (In thousands) March 31, 2022 Proceeds from sales $ 120,245 Gross gains 3 Gross losses (6,612 ) Net tax (benefit)/expense 1,581 |
Schedule of Available for Sale Securities with Continuous Unrealized Losses and Approximate Fair Value of Investments | The following tables present the Company’s available for sale and held to maturity securities with continuous unrealized losses and the approximate fair value of these investments as of March 31, 2022 and December 31, 2021. March 31, 2022 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Securities Available for Sale: U.S. government-sponsored agencies $ 90,578 $ (9,277 ) $ 127,685 $ (17,221 ) $ 218,263 $ (26,498 ) Mortgage-backed securities residential 132,068 (7,083 ) 156,945 (16,959 ) 289,013 (24,042 ) SBA pool securities 24,484 (1,653 ) 9,393 (1,200 ) 33,877 (2,853 ) State and political subdivisions 1,609 (6 ) — — 1,609 (6 ) Corporate bond 2,392 (108 ) — — 2,392 (108 ) Total securities available for sale $ 251,131 $ (18,127 ) $ 294,023 $ (35,380 ) $ 545,154 $ (53,507 ) Securities Held to Maturity: U.S. government-sponsored agencies $ 38,018 $ (1,982 ) $ — $ — $ 38,018 $ (1,982 ) Mortgage-backed securities residential 62,296 (4,520 ) — — 62,296 (4,520 ) Total securities held to maturity $ 100,314 $ (6,502 ) $ — $ — $ 100,314 $ (6,502 ) Total securities $ 351,445 $ (24,629 ) $ 294,023 $ (35,380 ) $ 645,468 $ (60,009 ) December 31, 2021 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Securities Available for Sale: U.S. government-sponsored agencies $ 243,187 $ (6,858 ) $ 29,034 $ (966 ) $ 272,221 $ (7,824 ) Mortgage-backed securities residential 265,403 (7,053 ) 33,455 (884 ) 298,858 (7,937 ) SBA pool securities 22,057 (567 ) 10,562 (533 ) 32,619 (1,100 ) Total securities available for sale $ 530,647 $ (14,478 ) $ 73,051 $ (2,383 ) $ 603,698 $ (16,861 ) Securities Held to Maturity: U.S. government-sponsored agencies $ 24,975 $ (25 ) $ — $ — $ 24,975 $ (25 ) Mortgage-backed securities residential 48,307 (269 ) — — 48,307 (269 ) Total securities held to maturity $ 73,282 $ (294 ) $ — $ — $ 73,282 $ (294 ) Total securities $ 603,929 $ (14,772 ) $ 73,051 $ (2,383 ) $ 676,980 $ (17,155 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of composition of loans categorized by the type of loan | Loans outstanding, excluding those held for sale, by general ledger classification, as of March 31, 2022 and December 31, 2021, consisted of the following: % of % of March 31, Totals December 31, Total (Dollars in thousands) 2022 Loans 2021 Loans Residential mortgage $ 512,684 10.01 % $ 498,300 10.37 % Multifamily mortgage 1,850,097 36.12 1,595,866 33.20 Commercial mortgage 669,899 13.09 662,626 13.78 Commercial loans (including equipment financing) (1) 1,997,798 39.00 1,955,157 40.67 Commercial construction 17,572 0.34 20,044 0.42 Home equity lines of credit 38,604 0.75 40,803 0.85 Consumer loans, including fixed rate home equity loans 35,322 0.69 33,687 0.70 Other loans 226 0.00 238 0.01 Total loans $ 5,122,202 100.00 % $ 4,806,721 100.00 % (1) Includes PPP loans of $9.6 million at March 31, 2022 and $13.8 million at December 31, 2021 In determining an appropriate amount for the allowance, the Bank segments and aggregated the loan portfolio based on common characteristics. The following pool segments identified as of March 31, 2022 are based on the CECL methodology: % of March 31, Totals (Dollars in thousands) 2022 Loans Primary residential mortgage $ 516,350 10.09 % Junior lien loan on residence 41,747 0.81 Multifamily property 1,850,097 36.15 Owner-occupied commercial real estate 256,345 5.01 Investment commercial real estate 1,056,755 20.65 Commercial and industrial (1) 1,019,501 19.92 Lease financing 312,133 6.10 Construction 22,826 0.45 Consumer and other 41,853 0.82 Total loans 5,117,607 100.00 % Net deferred costs 4,595 Total loans including net deferred costs $ 5,122,202 (1) Includes PPP loans of $ 9.6 . The portfolio classes identified as of December 31, 2021 are based on the incurred loss methodology and are segmented by federal Call Report codes: % of December 31, Total (Dollars in thousands) 2021 Loans Primary residential mortgage $ 500,243 10.42 % Home equity lines of credit 40,803 0.85 Junior lien loan on residence 3,191 0.07 Multifamily property 1,595,866 33.23 Owner-occupied commercial real estate 252,603 5.26 Investment commercial real estate 1,003,979 20.90 Commercial and industrial (1) 992,332 20.66 Lease financing 345,868 7.20 Farmland/agricultural production 6,871 0.14 Commercial construction loans 20,174 0.42 Consumer and other loans 40,828 0.85 Total loans 4,802,758 100.00 % Net deferred costs 3,963 Total loans including net deferred costs $ 4,806,721 (1) Includes PPP loans of $13.8 million at December 31, 2021 |
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual | The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2022 and December 31, 2021: March 31, 2022 Loans Past Due 90 Days or Over And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 2,385 $ — Junior lien loan on residence 17 — Owner-occupied commercial real estate 420 — Investment commercial real estate 12,500 — Commercial and industrial 562 — Total $ 15,884 $ — December 31, 2021 Loans Past Due 90 Days or Over And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 1,851 $ — Junior lien loan on residence 18 — Owner-occupied commercial real estate 458 — Investment commercial real estate 12,750 — Commercial and industrial 496 — Total $ 15,573 $ — |
Schedule of aging of past due loans | The following tables present the aging of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021 by class of loans, excluding nonaccrual loans: March 31, 2022 30-59 60-89 90 Days or Days Days Greater Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 332 $ — $ — $ 332 Commercial and industrial 274 — — 274 Total $ 606 $ — $ — $ 606 December 31, 2021 30-59 60-89 90 Days or Days Days Greater Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 639 $ — $ — $ 639 Commercial and industrial 7,825 142 — 7,967 Total $ 8,464 $ 142 $ — $ 8,606 |
Schedule of credit risk profile of loans | The following is a summary of the credit risk profile of loans by internally assigned grade as of the periods indicated, the years represent the year of origination for non-revolving loans: March 31, 2022 2017 Revolving- (In thousands) 2022 2021 2020 2019 2018 and Prior Revolving Term Total Primary residential mortgage: Pass $ 38,233 $ 102,596 $ 68,550 $ 45,913 $ 29,968 $ 227,138 $ 700 $ 375 $ 513,473 Special mention — — — — — 319 — — 319 Substandard — — 469 215 287 1,587 — — 2,558 Doubtful — — — — — — — — — Total primary residential mortgages 38,233 102,596 69,019 46,128 30,255 229,044 700 375 516,350 Junior lien loan on residence: Pass 441 208 53 721 422 1,281 — 38,081 41,207 Special mention — — — — — — — — — Substandard — — — — — 17 — 523 540 Doubtful — — — — — — — — — Total junior lien loan on residence 441 208 53 721 422 1,298 — 38,604 41,747 Multifamily property: Pass 312,564 688,845 120,104 285,468 59,972 358,853 7,578 1,949 1,835,333 Special mention — — — 2,888 — 3,564 — — 6,452 Substandard — — — — — 8,312 — — 8,312 Doubtful — — — — — — — — — Total multifamily property 312,564 688,845 120,104 288,356 59,972 370,729 7,578 1,949 1,850,097 Owner-occupied commercial real estate: Pass 1,731 44,926 21,276 12,587 25,860 146,302 2,112 884 255,678 Special mention — — — — — — — — — Substandard — — — — — 420 247 — 667 Doubtful — — — — — — — — — Total owner-occupied commercial real estate 1,731 44,926 21,276 12,587 25,860 146,722 2,359 884 256,345 Investment commercial real estate: Pass 59,535 164,327 65,408 160,095 116,607 340,366 36,005 13,130 955,473 Special mention — — — 36,220 7,852 40,257 — 2,411 86,740 Substandard — — — 2,042 12,500 — — — 14,542 Doubtful — — — — — — — — — Total investment commercial real estate 59,535 164,327 65,408 198,357 136,959 380,623 36,005 15,541 1,056,755 Commercial and industrial: Pass 77,506 315,130 135,158 113,694 40,005 15,034 13,445 272,328 982,300 Special mention — — — 5,291 196 — 6,345 4,602 16,434 Substandard — — 13 — 20,488 230 — 36 20,767 Doubtful — — — — — — — — — Total commercial and industrial 77,506 315,130 135,171 118,985 60,689 15,264 19,790 276,966 1,019,501 Lease financing: Pass 5,630 106,238 70,994 66,563 39,897 22,811 — — 312,133 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total lease financing 5,630 106,238 70,994 66,563 39,897 22,811 — — 312,133 Construction loans: Pass — — — 1,462 — 8 10,195 11,088 22,753 Special mention — — — — — 73 — — 73 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total commercial construction loans — — — 1,462 — 81 10,195 11,088 22,826 Consumer and other loans: Pass — 437 270 20 — 6,197 3,331 31,598 41,853 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total consumer and other loans — 437 270 20 — 6,197 3,331 31,598 41,853 Total: Pass 495,640 1,422,707 481,813 686,523 312,731 1,117,990 73,366 369,433 4,960,203 Special mention — — — 44,399 8,048 44,213 6,345 7,013 110,018 Substandard — — 482 2,257 33,275 10,566 247 559 47,386 Doubtful — — — — — — — — — Total Loans $ 495,640 $ 1,422,707 $ 482,295 $ 733,179 $ 354,054 $ 1,172,769 $ 79,958 $ 377,005 $ 5,117,607 |
Schedule of the risk category of loans by class of loans | As of December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 494,444 $ 557 $ 5,242 $ — Home equity lines of credit 40,274 — 529 — Junior lien loan on residence 3,173 — 18 — Multifamily property 1,579,776 7,720 8,370 — Owner-occupied commercial real estate 251,229 663 711 — Investment commercial real estate 901,877 87,297 14,805 — Commercial and industrial 951,127 20,178 21,027 — Lease financing 345,868 — — — Farmland/agricultural production 6,871 — — — Commercial construction loans 20,099 75 — — Consumer and other loans 40,828 — — — Total $ 4,635,566 $ 116,490 $ 50,702 $ — |
Schedule of loans modified as troubled debt restructurings | Details with respect to loan modifications are as follows: Post-Modification Outstanding Number of Recorded (Dollars in thousands) Loans Investment Commercial and industrial 4 $ 12,656 Total 4 $ 12,656 The following table presents loans by class modified as TDRs during the three-month period ended March 31, 2022: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Investment commercial real estate 1 $ 12,500 $ 12,500 Total 1 $ 12,500 $ 12,500 The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2022: Number of Recorded (Dollars in thousands) Loans Investment Primary residential mortgage 1 $ 215 Total 1 $ 215 The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2021: Number of Recorded (Dollars in thousands) Loans Investment Primary residential mortgage 1 $ 132 Total 1 $ 132 |
Allowance For Credit Losses (Ta
Allowance For Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of loan balances by segment and the corresponding balances in the allowance for loan losses | The following table presents the loan balances by segment, and the corresponding balances in the allowance as of March 31, 2022. For the period ended March 31, 2022, the allowance is based on the CECL methodology. March 31, 2022 Ending ACL Ending ACL Total Attributable Total Attributable Individually To Individually Loans To Loans Total Evaluated Evaluated Collectively Collectively Total Ending (In thousands) Loans Loans Evaluated Evaluated Loans ACL Primary residential mortgage $ 385 $ — $ 515,965 $ 3,545 $ 516,350 $ 3,545 Junior lien loan on residence — — 41,747 242 41,747 242 Multifamily property — — 1,850,097 15,480 1,850,097 15,480 Owner-occupied commercial real estate 328 — 256,017 4,903 256,345 4,903 Investment commercial real estate 12,500 2,500 1,044,255 8,469 1,056,755 10,969 Commercial and industrial 266 — 1,019,235 18,653 1,019,501 18,653 Lease financing — — 312,133 3,354 312,133 3,354 Construction loans — — 22,826 532 22,826 532 Consumer and other loans — — 41,853 708 41,853 708 Total ACL $ 13,479 $ 2,500 $ 5,104,128 $ 55,886 $ 5,117,607 $ 58,386 The following table presents the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance as of December 31, 2021. For the year ended December 31, 2021, the allowance was calculated based on the incurred loss methodology: December 31, 2021 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 2,242 $ — $ 498,001 $ 1,432 $ 500,243 $ 1,432 Home equity lines of credit — — 40,803 83 40,803 83 Junior lien loan on residence 18 — 3,173 5 3,191 5 Multifamily property — — 1,595,866 9,806 1,595,866 9,806 Owner-occupied commercial real estate 458 — 252,145 1,998 252,603 1,998 Investment commercial real estate 12,750 4,234 991,229 22,849 1,003,979 27,083 Commercial and industrial 2,584 — 989,748 17,509 992,332 17,509 Lease financing — — 345,868 3,440 345,868 3,440 Farmland/agricultural production — — 6,871 84 6,871 84 Commercial construction loans — — 20,174 42 20,174 42 Consumer and other loans — — 40,828 215 40,828 215 Total ALLL $ 18,052 $ 4,234 $ 4,784,706 $ 57,463 $ 4,802,758 $ 61,697 |
Schedule of loans individually evaluated by segment | The following tables present collateral dependent loans individually evaluated by segment as of March 31, 2022: March 31, 2022 Unpaid Average Principal Recorded Related Individually Evaluated (In thousands) Balance Investment Allowance Loans With no related allowance recorded: Primary residential mortgage $ 445 $ 385 $ — $ 343 Owner-occupied commercial real estate 357 328 — 342 Commercial and industrial 282 266 — 282 Total loans with no related allowance $ 1,084 $ 979 $ — $ 967 With related allowance recorded: Investment commercial real estate $ 12,500 $ 12,500 $ 2,500 $ 12,667 Total loans with related allowance $ 12,500 $ 12,500 $ 2,500 $ 12,667 Total loans individually evaluated $ 13,584 $ 13,479 $ 2,500 $ 13,634 The following table presents, under previously applicable GAAP, loans individually evaluated for impairment as of December 31, 2021 (the average impaired loans on the following tables represent year to date impaired loans): December 31, 2021 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 2,453 $ 2,242 $ — $ 1,818 Owner-occupied commercial real estate 492 458 — 540 Junior lien loan on residence 18 18 — 3 Commercial and industrial 4,549 2,584 — 3,153 Total loans with no related allowance $ 7,512 $ 5,302 $ — $ 5,514 With related allowance recorded: Investment commercial real estate $ 19,887 $ 12,750 $ 4,234 $ 6,034 Total loans with related allowance $ 19,887 $ 12,750 $ 4,234 $ 6,034 Total loans individually evaluated for impairment $ 27,399 $ 18,052 $ 4,234 $ 11,548 |
Schedule of Activity in Allowance for Loan and Losses | The activity in the allowance for credit losses for the three months ended March 31, 2022 is summarized below: December 31, March 31, 2021 2022 Prior to adoption Impact of Provision Ending (In thousands) of Topic 326 adopting Topic 326 Charge-offs Recoveries (Credit) ACL Primary residential mortgage $ 1,510 $ 1,604 $ — $ — $ 431 $ 3,545 Junior lien loan on residence 88 174 — — (20 ) 242 Multifamily property 9,806 3,763 — — 1,911 15,480 Owner-occupied commercial real estate 1,998 2,934 — — (29 ) 4,903 Investment commercial real estate 27,083 (13,450 ) (250 ) — (2,414 ) 10,969 Commercial and industrial 17,509 (1,646 ) — 4 2,786 18,653 Lease financing 3,440 156 — — (242 ) 3,354 Construction loans 48 418 — — 66 532 Consumer and other loans 215 511 (20 ) 2 — 708 Total ACL $ 61,697 $ (5,536 ) $ (270 ) $ 6 $ 2,489 $ 58,386 For the accounting policy on the allowance for loan losses that was in effect prior to the adoption of Topic 326, refer to Note 1, Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year-ended December 31, 2021. The activity in the allowance for loan and lease losses for the three months ended March 31, 2021 is summarized below: January 1, March 31, 2021 2021 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 2,905 $ — $ — $ (129 ) $ 2,776 Home equity lines of credit 218 — 9 (29 ) 198 Junior lien loan on residence 15 — — 1 16 Multifamily property 9,945 — — 482 10,427 Owner-occupied commercial real estate 3,050 — — (186 ) 2,864 Investment commercial real estate 27,713 — — (1,020 ) 26,693 Commercial and industrial 19,047 — 7 1,071 20,125 Lease financing 3,936 — — 31 3,967 Farmland/agricultural production 43 — — 4 47 Commercial construction loans 158 — — 3 161 Consumer and other loans 279 (15 ) 1 (3 ) 262 Total ALLL $ 67,309 $ (15 ) $ 17 $ 225 $ 67,536 |
Schedule of Activity in ACL for Off Balance Sheet Commitments | The following table presets the activity in the ACL for off balance sheet commitments for the three months ended March 31, 2022: December 31, 2021 Prior to adoption Impact of Provision March 31, 2022 (In thousands) of Topic 326 adopting Topic 326 (Credit) Ending ACL Off balance sheet commitments $ — $ 302 $ (114 ) $ 188 Total ACL $ — $ 302 $ (114 ) $ 188 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Details of Total Deposits | The following table sets forth the details of total deposits as of March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 (Dollars in thousands) Noninterest-bearing demand deposits $ 1,023,208 18.99 % $ 956,482 18.16 % Interest-bearing checking (1) 2,362,987 43.86 2,287,894 43.45 Savings 162,116 3.01 154,914 2.94 Money market 1,304,017 24.21 1,307,051 24.82 Certificates of deposit - retail 384,909 7.14 409,608 7.78 Certificates of deposit - listing service 31,348 0.58 31,382 0.60 Subtotal deposits 5,268,585 97.79 5,147,331 97.75 Interest-bearing demand - Brokered 85,000 1.58 85,000 1.61 Certificates of deposit - Brokered 33,831 0.63 33,818 0.64 Total deposits $ 5,387,416 100.00 % $ 5,266,149 100.00 % (1) Interest-bearing checking includes |
Scheduled Maturities of Time Deposits | The scheduled maturities of certificates of deposit, including brokered certificates of deposit, as of March 31, 2022, are as follows: (In thousands) 2022 $ 294,833 2023 80,394 2024 34,021 2025 29,271 2026 11,027 Over 5 Years 542 Total $ 450,088 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Income and Total Assets for Reportable Segments | The following tables present the statements of income and total assets for the Company’s reportable segments for the three months ended March 31, 2022 and 2021. Three Months Ended March 31, 2022 Peapack (In thousands) Banking Private Total Net interest income $ 37,999 $ 1,623 $ 39,622 Noninterest income (429 ) 15,143 14,714 Total income 37,570 16,766 54,336 Provision for credit losses 2,375 — 2,375 Compensation and employee benefits 16,403 6,046 22,449 Premises and equipment expense 3,931 716 4,647 FDIC insurance expense 471 — 471 Other operating expense 4,166 2,436 6,602 Total operating expense 27,346 9,198 36,544 Income before income tax expense 10,224 7,568 17,792 Income tax expense 2,300 2,051 4,351 Net income $ 7,924 $ 5,517 $ 13,441 Total assets at period end $ 6,155,011 $ 100,653 $ 6,255,664 Three Months Ended March 31, 2021 Peapack (In thousands) Banking Private Total Net interest income $ 30,226 $ 1,567 $ 31,793 Noninterest income 5,140 12,680 17,820 Total income 35,366 14,247 49,613 Provision for loan and lease losses 225 — 225 Compensation and employee benefits 16,428 5,562 21,990 Premises and equipment expense 3,570 543 4,113 FDIC insurance expense 585 — 585 Other operating expense 2,391 2,515 4,906 Total operating expense 23,199 8,620 31,819 Income before income tax (benefit)/expense 12,167 5,627 17,794 Income tax (benefit)/expense 3,159 1,457 4,616 Net income $ 9,008 $ 4,170 $ 13,178 Total assets at period end $ 5,883,553 $ 86,074 $ 5,969,627 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | The following table summarizes, at the dates indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option: Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable March 31, Assets Inputs Inputs (In thousands) 2022 (Level 1) (Level 2) (Level 3) Assets: Available for sale: U.S. government-sponsored agencies $ 218,263 $ — $ 218,263 $ — Mortgage-backed securities-residential 340,513 — 340,513 — SBA pool securities 35,475 — 35,475 — State and political subdivisions 4,520 — 4,520 — Corporate bond 2,392 — 2,392 — CRA investment fund 14,003 14,003 — — Loans held for sale, at fair value 605 — 605 — Derivatives: Cash flow hedges 391 — 391 — Loan level swaps 8,908 — 8,908 — Total $ 625,070 $ 14,003 $ 611,067 $ — Liabilities: Derivatives: Cash flow hedges $ 1,074 $ — $ 1,074 $ — Loan level swaps 9,034 — 9,034 — Total $ 10,108 $ — $ 10,108 $ — Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2021 (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 272,221 $ — $ 272,221 $ — Mortgage-backed securities-residential 476,974 — 476,974 — SBA pool securities 39,561 — 39,561 — State and political subdivisions 5,476 — 5,476 — Corporate bond 2,521 — 2,521 — CRA investment fund 14,685 14,685 — — Loans held for sale, at fair value 3,040 — 3,040 — Derivatives: Loan level swaps 32,326 — 32,326 — Total $ 846,804 $ 14,685 $ 832,119 $ — Liabilities: Derivatives: Cash flow hedges $ 3,479 $ — $ 3,479 $ — Loan level swaps 34,569 — 34,569 — Total $ 38,048 $ — $ 38,048 $ — |
Schedule of Residential Loans Held for Sale | The following tables present residential loans held for sale, at fair value at the dates indicated: (In thousands) March 31, 2022 December 31, 2021 Residential loans contractual balance $ 595 $ 2,992 Fair value adjustment 10 48 Total fair value of residential loans held for sale $ 605 $ 3,040 |
Schedule of Assets Measured at Fair Value on Non-Recurring Basis | The following tables summarize, at the dates indicated, assets measured at fair value on a non-recurring basis: Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable March 31, Assets Inputs Inputs (In thousands) 2022 (Level 1) (Level 2) (Level 3) Assets: Individually evaluated loans: Investment commercial real estate $ 10,000 $ — $ — $ 10,000 Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2021 (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Investment commercial real estate $ 8,516 $ — $ — $ 8,516 |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments at March 31, 2022 are as follows: Fair Value Measurements at March 31, 2022 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 113,960 $ 113,960 $ — $ — $ 113,960 Securities available for sale 601,163 — 601,163 — 601,163 Securities held to maturity 106,816 — 100,314 — 100,314 CRA investment fund 14,003 14,003 — — 14,003 FHLB and FRB stock 18,570 — — — N/A Loans held for sale, at fair value 605 — 605 — 605 Loans held for sale, at lower of cost or fair value 26,350 — 29,644 — 29,644 Loans, net of allowance for credit losses 5,063,816 — — 4,887,836 4,887,836 Accrued interest receivable 22,890 — 2,071 20,819 22,890 Accrued interest receivable loan level swaps (1) 3,642 — 3,642 — 3,642 Cash flow hedges 391 — 391 — 391 Loan level swaps 8,908 — 8,908 — 8,908 Financial liabilities Deposits $ 5,387,416 $ 4,937,328 $ 446,422 $ — $ 5,383,750 Short-term borrowings 122,085 — 122,085 — 122,085 Subordinated debt 132,772 — — 131,839 131,839 Accrued interest payable 1,928 163 400 1,365 1,928 Accrued interest payable loan level swaps (2) 3,642 — 3,642 — 3,642 Cash flow hedges 1,074 — 1,074 — 1,074 Loan level swap 9,034 — 9,034 — 9,034 (1) Included in other assets in the Consolidated Statement of Condition. (2) Included in accrued expenses and other liabilities in the Consolidated Statement of Condition. The carrying amounts and estimated fair values of financial instruments at December 31, 2021 are as follows: Fair Value Measurements at December 31, 2021 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 146,804 $ 146,804 $ — $ — $ 146,804 Securities available for sale 796,753 — 796,753 — 796,753 Securities held to maturity 108,680 — 108,460 — 108,460 CRA investment fund 14,685 14,685 — — 14,685 FHLB and FRB stock 12,950 — — — N/A Loans held for sale, at fair value 3,040 — 3,040 — 3,040 Loans held for sale, at lower of cost or fair value 34,051 — 37,538 — 37,538 Loans, net of allowance for loan and lease losses 4,745,024 — — 4,767,293 4,767,293 Accrued interest receivable 21,589 — 2,443 19,146 21,589 Accrued interest receivable loan level swaps (1) 4,842 — 4,842 — 4,842 Loan level swaps 32,326 — 32,326 — 32,326 Financial liabilities Deposits $ 5,266,149 $ 4,791,341 $ 476,659 $ — $ 5,268,000 Subordinated debt 132,701 — — 140,556 140,556 Accrued interest payable 651 130 446 75 651 Accrued interest payable loan level swaps (2) 4,842 — 4,842 — 4,842 Cash flow hedges 3,479 — 3,479 — 3,479 Loan level swaps 34,569 — 34,569 — 34,569 (1) Included in other assets in the Consolidated Statement of Condition. (2) Included in accrued expenses and other liabilities in the Consolidated Statement of Condition. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Noninterest Income | The following tables present the sources of noninterest income for the periods indicated: For the Three Months Ended March 31, (In thousands) 2022 2021 Service charges on deposits Overdraft fees $ 113 $ 93 Interchange income 342 317 Other 497 436 Wealth management fees (1) 14,834 12,131 Corporate advisory fee income 1,561 1,098 Other (2) (2,633 ) 3,745 Total noninterest other income $ 14,714 $ 17,820 ( 1) Includes investment brokerage fees. ( 2) All of the other category is outside the scope of ASC 606. |
Schedule of Noninterest Income by Operating Segment | The following table presents the sources of noninterest income by operating segment for the periods indicated: For the Three Months Ended March 31, For the Three Months Ended March 31, 2022 2021 (In thousands) Wealth Wealth Revenue by Operating Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 113 $ — $ 113 $ 93 $ — $ 93 Interchange income 342 — 342 317 — 317 Other 497 — 497 436 — 436 Wealth management fees (1) — 14,834 14,834 — 12,131 12,131 Corporate advisory fee income 1,561 — 1,561 1,098 — 1,098 Other (2) (2,942 ) 309 (2,633 ) 3,196 549 3,745 Total noninterest income $ (429 ) $ 15,143 $ 14,714 $ 5,140 $ 12,680 $ 17,820 (1) Includes investment brokerage fees. (2) All of the other category is outside the scope of ASC 606. |
OTHER OPERATING EXPENSES (Table
OTHER OPERATING EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income And Expenses [Abstract] | |
Schedule of Components of Other Operating Expenses | The following table presents the major components of other operating expenses for the periods indicated: Three Months Ended March 31, (In thousands) 2022 2021 Professional and legal fees $ 1,138 $ 1,256 Telephone 334 334 Advertising 290 214 Amortization of intangible assets 431 368 Branch restructure 372 — Other operating expenses 3,364 2,734 Total other operating expenses $ 5,929 $ 4,906 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income/(Loss) Balances, Net of Tax | The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the three months ended March 31, 2022 and 2021: Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive March 31, March 31, (In thousands) 2022 Reclassifications Income/(Loss) 2022 2022 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ (9,873 ) $ (35,602 ) $ 5,028 $ (30,574 ) $ (40,447 ) Gain/(loss) on cash flow hedges (2,501 ) 2,010 — 2,010 (491 ) Accumulated other comprehensive gain/(loss), net of tax $ (12,374 ) $ (33,592 ) $ 5,028 $ (28,564 ) $ (40,938 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive March 31, March 31, (In thousands) 2021 Reclassifications Income/(Loss) 2021 2021 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ 5,521 $ (13,415 ) $ — $ (13,415 ) $ (7,894 ) Gain/(loss) on cash flow hedges (6,913 ) 1,043 — 1,043 (5,870 ) Accumulated other comprehensive gain/(loss), net of tax $ (1,392 ) $ (12,372 ) $ — $ (12,372 ) $ (13,764 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income/(loss) | The following represents the reclassifications out of accumulated other comprehensive income/(loss) for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, (In thousands) 2022 2021 Affected Line Item in Income Statement Unrealized gains/(losses) on securities available for sale: Reclassification adjustment for amounts included in net income $ 6,609 $ — Securities losses, net Tax effect (1,581 ) — Income tax expense Total reclassifications, net of tax $ 5,028 $ — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Schedule of Information about Interest Rate Swaps Designated as Cash Flow Hedges | The following table presents information about the interest rate swaps designated as cash flow hedges as of March 31, 2022 and December 31, 2021: (Dollars in thousands) March 31, 2022 December 31, 2021 Notional amount $ 230,000 $ 230,000 Weighted average pay rate 1.99 % 1.99 % Weighted average receive rate 0.23 % 0.20 % Weighted average maturity 0.79 years 1.04 years Unrealized loss, net $ (665 ) $ (3,479 ) Number of contracts 11 13 |
Schedule of Cash Flow Hedges Included in Financial Statements | March 31, 2022 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ (665 ) Total included in other assets 80,000 234 Total included in other liabilities 150,000 (899 ) December 31, 2021 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ (3,479 ) Total included in other assets — — Total included in other liabilities 230,000 (3,479 ) |
Schedule of Net Gains/(Loss) Recorded in Accumulated Other Comprehensive Income/(Loss) | The following table presents the net gain/(loss) recorded in accumulated other comprehensive income/(loss) and the consolidated financial statements relating to the cash flow derivative instruments for the three months ended March 31, 2022 and 2021: For the Three Months Ended March 31, (In thousands) 2022 2021 Interest rate contracts Gain/(loss) recognized in other comprehensive income (effective portion) $ 2,796 $ 1,450 Gain/(loss) reclassified from other comprehensive income to interest expense — — Gain/(loss) recognized in other noninterest income — — |
Not Designated as Hedging Instrument [Member] | |
Schedule of Information about Interest Rate Swaps Designated as Cash Flow Hedges | Information about these swaps is as follows: (Dollars in thousands) March 31, 2022 December 31, 2021 Notional amount $ 677,502 $ 702,210 Fair value $ 9,034 $ 32,326 Weighted average pay rates 3.98 % 4.00 % Weighted average receive rates 2.20 % 1.83 % Weighted average maturity 5.2 years 5.5 years Number of contracts 85 86 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities by Contractual Maturity | The following is a schedule of the Company's operating lease liabilities by contractual maturity as of March 31, 2022: (In thousands) 2022 $ 1,995 2023 2,816 2024 2,299 2025 2,048 2026 1,487 Thereafter 6,194 Total lease payments 16,839 Less: imputed interest 1,684 Total present value of lease payments $ 15,155 |
Summary of Supplemental Cash Flow Information Related to Direct Finance and Operating Leases | The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the three months ended March 31, 2022 and 2021: For the Three Months Ended (In thousands) 2022 2021 Right-of-use asset obtained in exchange for lease obligation $ 5,446 $ 1,412 Operating cash flows from operating leases 665 619 Operating cash flows from direct finance leases 68 79 Financing cash flows from direct finance leases 187 187 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
May 31, 2020shares | Mar. 31, 2022USD ($)segment$ / sharesshares | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)shares | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jan. 01, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net decrease to retained earnings | $ (290,718,000) | $ (274,288,000) | |||||||
Reduction to allowance for credit losses | $ (188,000) | ||||||||
Number of operating segments | segment | 2 | ||||||||
Federal funds sales periods | 1 day | ||||||||
Interest-earning deposits maturities period | 1 year | ||||||||
Servicing rights | $ 0 | ||||||||
Amount of loans serviced | $ 118,100,000 | $ 97,500,000 | |||||||
Threshold period for loan | 30 days | ||||||||
Threshold for determining nonaccrual status | 90 days | ||||||||
Non-impaired special mention loans multiple | 2.25 | ||||||||
Non-impaired substandard loans multiple | 3.25 | ||||||||
Loan modifications | $ 947,000,000 | ||||||||
Post-modification outstanding recorded investment | $ 12,500,000 | ||||||||
Sale of loans servicing released to third party | $ 56,500,000 | $ 355,000,000 | $ 124,000,000 | ||||||
Closing stock price of common stock | $ / shares | $ 34.75 | ||||||||
Stock options granted | shares | 0 | ||||||||
Issuance of shares for Employee Stock Purchase Plan, shares | shares | 6,808 | 8,425 | |||||||
Antidilutive securities | shares | 299,433 | 239,472 | |||||||
Restricted stock [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Shares granted | shares | 233,910 | ||||||||
Compensation cost | $ 1,900,000 | $ 1,700,000 | |||||||
Restricted stock [Member] | Tranche One [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Stock option vesting term | 3 years | ||||||||
Restricted stock [Member] | Tranche Two [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Stock option vesting term | 5 years | ||||||||
Performance Shares [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Shares granted | shares | 71,482 | ||||||||
Restricted Stock Units [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Unrecognized compensation cost | $ 20,900,000 | ||||||||
Weighted average period over which unrecognized compensation is expected to be recognized (in years) | 1 year 6 months 25 days | ||||||||
Employee Stock [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Compensation cost | $ 35,000 | $ 30,000 | |||||||
Number of share purchase rights authorized | shares | 150,000 | ||||||||
Additional common stock to be issued | shares | 200,000 | ||||||||
Share purchase rights offering period | 12 months | ||||||||
Percentage of closing market price on purchase date | 85.00% | ||||||||
Deferral [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Post-modification outstanding recorded investment | $ 12,656,000 | ||||||||
U.S. Small Business Administration (SBA) Loans [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Paycheck Protection Program, maximum credit facility | 650,000,000 | ||||||||
Paycheck protection program loans remaining balance | $ 9,600,000 | ||||||||
Consumer and Other [Member] | Closed-end Loans [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Threshold for determining nonaccrual status | 120 days | ||||||||
Consumer and Other [Member] | Open-end Loans [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Threshold for determining nonaccrual status | 180 days | ||||||||
Small Business Administration Loans [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Loans held for sale | $ 26,400,000 | $ 32,500,000 | |||||||
Maximum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Cash equivalents original maturities period | 90 days | ||||||||
Short term borrowings original maturities period | 90 days | ||||||||
Paycheck Protection Loans Repayment Period | 5 years | ||||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||||||
Maximum [Member] | Employee Stock Option [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Option term | 10 years | ||||||||
Stock option vesting term | 5 years | ||||||||
Maximum [Member] | Employee Stock [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of compensation contributable | 15.00% | ||||||||
Minimum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Paycheck Protection Loans Repayment Period | 2 years | ||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||||
Minimum [Member] | Employee Stock [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of compensation contributable | 1.00% | ||||||||
ASU 2016-13 [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net decrease to retained earnings | $ 3,900,000 | ||||||||
Reduction to allowance for credit losses | $ 5,500,000 | ||||||||
Peapack-Gladstone Mortgage Group, Inc. [Member] | Peapack Ventures, LLC [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of interest owned | 99.00% | ||||||||
Peapack-Gladstone Mortgage Group, Inc. [Member] | Peapack-Gladstone Realty, Inc [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of interest owned | 79.00% | ||||||||
PGB Trust & Investments of Delaware [Member] | Peapack Ventures, LLC [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of interest owned | 1.00% | ||||||||
Peapack Ventures, LLC [Member] | Peapack-Gladstone Realty, Inc [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of interest owned | 21.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Impact to Financial Statements Upon Adoption of ASC 326 (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Summary Of Significant Accounting Policies [Line Items] | |||||
Allowance for credit losses on off-balance sheet commitments | $ 137 | ||||
Total impact from ASC 326 adoption | (3,909) | $ 523,426 | $ 546,388 | $ 522,441 | $ 527,122 |
Tax Effect [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Allowance for credit losses on off-balance sheet commitments | (51) | ||||
Total impact from ASC 326 adoption | 1,439 | $ 550,297 | |||
Impact to Consolidated Statement of Condition from ASC-326 Adoption [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Allowance for credit losses on off-balance sheet commitments | 188 | ||||
Total impact from ASC 326 adoption | (5,348) | ||||
Allowance For Credit Losses on Loans [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assets | 4,046 | ||||
Allowance For Credit Losses on Loans [Member] | Tax Effect [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assets | 1,490 | ||||
Allowance For Credit Losses on Loans [Member] | Impact to Consolidated Statement of Condition from ASC-326 Adoption [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assets | $ (5,536) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Options Outstanding) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Number of Options | |
Balance | shares | 31,340 |
Exercised | shares | (9,260) |
Forfeited | shares | (480) |
Balance | shares | 21,600 |
Vested and expected to vest | shares | 21,600 |
Exercisable | shares | 21,600 |
Weighted Average Exercise Price | |
Balance | $ / shares | $ 14.59 |
Exercised | $ / shares | 13.03 |
Forfeited | $ / shares | 10.72 |
Balance | $ / shares | 15.35 |
Vested and expected to vest | $ / shares | 15.35 |
Exercisable | $ / shares | $ 15.35 |
Weighted Average Remaining Contractual Term | |
Balance | 11 months 8 days |
Vested and expected to vest | 11 months 8 days |
Exercisable | 11 months 8 days |
Aggregate Intrinsic Value | |
Balance | $ | $ 419 |
Vested and expected to vest | $ | 419 |
Exercisable | $ | $ 419 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Restricted Common Shares) (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Performance Shares [Member] | |
Number of Shares | |
Balance at Beginning | shares | 225,435 |
Shares granted | shares | 71,482 |
Vested | shares | (53,729) |
Forfeited | shares | (5,284) |
Balance at end | shares | 237,904 |
Weighted Average Grant Date Fair Value | |
Balance at Beginning | $ / shares | $ 20.29 |
Granted | $ / shares | 35.93 |
Vested | $ / shares | 26.34 |
Forfeited | $ / shares | 17.92 |
Balance at end | $ / shares | $ 23.68 |
Restricted stock [Member] | |
Number of Shares | |
Balance at Beginning | shares | 701,145 |
Shares granted | shares | 233,910 |
Vested | shares | (252,955) |
Forfeited | shares | (16,434) |
Balance at end | shares | 665,666 |
Weighted Average Grant Date Fair Value | |
Balance at Beginning | $ / shares | $ 21.93 |
Granted | $ / shares | 36.86 |
Vested | $ / shares | 21.46 |
Forfeited | $ / shares | 19.80 |
Balance at end | $ / shares | $ 27.41 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Calculation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Net income available to common shareholders | $ 13,441 | $ 13,178 |
Basic weighted average shares outstanding | 18,339,013 | 18,950,305 |
Plus: common stock equivalents | 607,670 | 581,384 |
Diluted weighted average shares outstanding | 18,946,683 | 19,531,689 |
Net income per share | ||
Basic | $ 0.73 | $ 0.70 |
Diluted | $ 0.71 | $ 0.67 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of Amortized Cost and Approximate Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Securities Available for Sale: | ||
Amortized Cost | $ 654,287 | $ 809,687 |
Gross Unrealized Gains | 383 | 3,927 |
Gross Unrealized Losses | (53,507) | (16,861) |
Fair Value | 601,163 | 796,753 |
Securities Held to Maturity: | ||
Amortized Cost | 106,816 | 108,680 |
Gross Unrealized Gains | 74 | |
Gross Unrealized Losses | (6,502) | (294) |
Fair Value | 100,314 | 108,460 |
U.S. Government-Sponsored Agencies [Member] | ||
Securities Available for Sale: | ||
Amortized Cost | 244,761 | 280,045 |
Gross Unrealized Losses | (26,498) | (7,824) |
Fair Value | 218,263 | 272,221 |
Securities Held to Maturity: | ||
Amortized Cost | 40,000 | 40,000 |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | (1,982) | (25) |
Fair Value | 38,018 | 39,982 |
Mortgage-Backed Securities-Residential [Member] | ||
Securities Available for Sale: | ||
Amortized Cost | 364,177 | 481,062 |
Gross Unrealized Gains | 378 | 3,849 |
Gross Unrealized Losses | (24,042) | (7,937) |
Fair Value | 340,513 | 476,974 |
Securities Held to Maturity: | ||
Amortized Cost | 66,816 | 68,680 |
Gross Unrealized Gains | 67 | |
Gross Unrealized Losses | (4,520) | (269) |
Fair Value | 62,296 | 68,478 |
SBA Pool Securities [Member] | ||
Securities Available for Sale: | ||
Amortized Cost | 38,326 | 40,649 |
Gross Unrealized Gains | 2 | 12 |
Gross Unrealized Losses | (2,853) | (1,100) |
Fair Value | 35,475 | 39,561 |
State and Political Subdivisions [Member] | ||
Securities Available for Sale: | ||
Amortized Cost | 4,523 | 5,431 |
Gross Unrealized Gains | 3 | 45 |
Gross Unrealized Losses | (6) | |
Fair Value | 4,520 | 5,476 |
Corporate Bond [Member] | ||
Securities Available for Sale: | ||
Amortized Cost | 2,500 | 2,500 |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (108) | |
Fair Value | $ 2,392 | $ 2,521 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of Gross Gains, Gross Losses and Net Tax Benefit Related to Proceeds on Sales of Securities Available for Sale (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Proceeds from sales | $ 120,245 |
Gross gains | 3 |
Gross losses | (6,612) |
Net tax (benefit)/expense | $ 1,581 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of Available for Sale Securities in Continuous Unrealized Loss Position and Approximate Fair Value of Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for Sale Securities, Fair Value | ||
Less Than 12 Months | $ 251,131 | $ 530,647 |
12 Months or Longer | 294,023 | 73,051 |
Total | 545,154 | 603,698 |
Approximate Fair Value | ||
Less Than 12 Months | (18,127) | (14,478) |
12 Months or Longer | (35,380) | (2,383) |
Total | (53,507) | (16,861) |
Held to Maturity Securities, Fair Value | ||
Less Than 12 Months | 100,314 | 73,282 |
12 Months or Longer | 0 | |
Total | 100,314 | 73,282 |
Held to Maturity Securities, Unrealized Losses | ||
Less Than 12 Months | (6,502) | (294) |
12 Months or Longer | 0 | |
Total | (6,502) | (294) |
Approximate Fair Value | ||
Fair Value, Less than 12 months | 351,445 | 603,929 |
Fair Value, 12 months or longer | 294,023 | 73,051 |
Fair Value | 645,468 | 676,980 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 months | (24,629) | (14,772) |
Unrealized Losses, 12 months or longer | (35,380) | (2,383) |
Unrealized Losses | (60,009) | (17,155) |
U.S. Government-Sponsored Agencies [Member] | ||
Available for Sale Securities, Fair Value | ||
Less Than 12 Months | 90,578 | 243,187 |
12 Months or Longer | 127,685 | 29,034 |
Total | 218,263 | 272,221 |
Approximate Fair Value | ||
Less Than 12 Months | (9,277) | (6,858) |
12 Months or Longer | (17,221) | (966) |
Total | (26,498) | (7,824) |
Held to Maturity Securities, Fair Value | ||
Less Than 12 Months | 38,018 | 24,975 |
12 Months or Longer | 0 | |
Total | 38,018 | 24,975 |
Held to Maturity Securities, Unrealized Losses | ||
Less Than 12 Months | (1,982) | (25) |
12 Months or Longer | 0 | |
Total | (1,982) | (25) |
Mortgage-Backed Securities-Residential [Member] | ||
Available for Sale Securities, Fair Value | ||
Less Than 12 Months | 132,068 | 265,403 |
12 Months or Longer | 156,945 | 33,455 |
Total | 289,013 | 298,858 |
Approximate Fair Value | ||
Less Than 12 Months | (7,083) | (7,053) |
12 Months or Longer | (16,959) | (884) |
Total | (24,042) | (7,937) |
Held to Maturity Securities, Fair Value | ||
Less Than 12 Months | 62,296 | 48,307 |
12 Months or Longer | 0 | |
Total | 62,296 | 48,307 |
Held to Maturity Securities, Unrealized Losses | ||
Less Than 12 Months | (4,520) | (269) |
12 Months or Longer | 0 | |
Total | (4,520) | (269) |
SBA Pool Securities [Member] | ||
Available for Sale Securities, Fair Value | ||
Less Than 12 Months | 24,484 | 22,057 |
12 Months or Longer | 9,393 | 10,562 |
Total | 33,877 | 32,619 |
Approximate Fair Value | ||
Less Than 12 Months | (1,653) | (567) |
12 Months or Longer | (1,200) | (533) |
Total | (2,853) | $ (1,100) |
State and Political Subdivisions [Member] | ||
Available for Sale Securities, Fair Value | ||
Less Than 12 Months | 1,609 | |
12 Months or Longer | 0 | |
Total | 1,609 | |
Approximate Fair Value | ||
Less Than 12 Months | (6) | |
12 Months or Longer | 0 | |
Total | (6) | |
Corporate Bond [Member] | ||
Available for Sale Securities, Fair Value | ||
Less Than 12 Months | 2,392 | |
12 Months or Longer | 0 | |
Total | 2,392 | |
Approximate Fair Value | ||
Less Than 12 Months | (108) | |
12 Months or Longer | 0 | |
Total | $ (108) |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment with fair value classified as equity security | $ 14,003,000 | $ 14,685,000 |
Loss on securities sale, net | (6,609,000) | |
CRA Investment Fund [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment with fair value classified as equity security | 14,000,000 | |
Loss on securities sale, net | $ 682,000 |
LOANS AND LEASES (Schedule of L
LOANS AND LEASES (Schedule of Loans Outstanding, by Type of Loan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | ||
Total loans | $ 5,122,202 | $ 4,806,721 | |
Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 100.00% | 100.00% | |
Unallocated Financing Receivables [Member] | |||
Total loans | $ 226 | $ 238 | |
Unallocated Financing Receivables [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 0.00% | 0.01% | |
Primary Residential Mortgage [Member] | Residential Portfolio Segment [Member] | |||
Total loans | $ 512,684 | $ 498,300 | |
Primary Residential Mortgage [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 10.01% | 10.37% | |
Multifamily Property [Member] | Residential Portfolio Segment [Member] | |||
Total loans | $ 1,850,097 | $ 1,595,866 | |
Multifamily Property [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 36.12% | 33.20% | |
Commercial Mortgage [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Total loans | $ 669,899 | $ 662,626 | |
Commercial Mortgage [Member] | Commercial Real Estate Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 13.09% | 13.78% | |
Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Total loans | [1] | $ 1,997,798 | $ 1,955,157 |
Commercial Loans Including Equipment Financing [Member] | Commercial Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | [1] | 39.00% | 40.67% |
Construction [Member] | Commercial Portfolio Segment [Member] | |||
Total loans | $ 17,572 | $ 20,044 | |
Construction [Member] | Commercial Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 0.34% | 0.42% | |
Home Equity Line of Credit [Member] | Residential Portfolio Segment [Member] | |||
Total loans | $ 38,604 | $ 40,803 | |
Home Equity Line of Credit [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 0.75% | 0.85% | |
Consumer Loans, Including Home Equity Loans [Member] | Consumer and Other Loans [Member] | |||
Total loans | $ 35,322 | $ 33,687 | |
Consumer Loans, Including Home Equity Loans [Member] | Consumer and Other Loans [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 0.69% | 0.70% | |
[1] | Includes PPP loans of $9.6 million at March 31, 2022 and $13.8 million at December 31, 2021 |
LOANS AND LEASES (Schedule of_2
LOANS AND LEASES (Schedule of Loans Outstanding, by Type of Loan) (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Total loans | $ 5,122,202 | $ 4,806,721 | |
Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Total loans | [1] | 1,997,798 | 1,955,157 |
U.S. Small Business Administration (SBA) Loans [Member] | Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Total loans | $ 9,600 | $ 13,800 | |
[1] | Includes PPP loans of $9.6 million at March 31, 2022 and $13.8 million at December 31, 2021 |
LOANS AND LEASES (Schedule of_3
LOANS AND LEASES (Schedule of Loan Balances by Pool Segment and Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | |||
Total loans | $ 5,117,607 | $ 4,802,758 | ||
Net deferred costs | 3,963 | |||
Total loans including net deferred costs | 5,122,202 | $ 4,806,721 | ||
Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 100.00% | |||
Current Expected Credit Loss Methodology [Member] | ||||
Total loans | 5,117,607 | |||
Net deferred costs | 4,595 | |||
Total loans including net deferred costs | $ 5,122,202 | |||
Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 100.00% | |||
Construction [Member] | ||||
Total loans | $ 22,826 | |||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||||
Total loans | 516,350 | $ 500,243 | ||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 10.42% | |||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | $ 516,350 | |||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 10.09% | |||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||||
Total loans | $ 1,850,097 | $ 1,595,866 | ||
Total loans including net deferred costs | 1,850,097 | $ 1,595,866 | ||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 33.23% | |||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | $ 1,850,097 | |||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 36.15% | |||
Residential Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||||
Total loans | $ 40,803 | |||
Total loans including net deferred costs | $ 38,604 | $ 40,803 | ||
Residential Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 0.85% | |||
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||||
Total loans | 41,747 | $ 3,191 | ||
Residential Portfolio Segment [Member] | Junior Lien [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 0.07% | |||
Residential Portfolio Segment [Member] | Junior Lien [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | $ 41,747 | |||
Residential Portfolio Segment [Member] | Junior Lien [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 0.81% | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||||
Total loans | $ 256,345 | $ 252,603 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 5.26% | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | $ 256,345 | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 5.01% | |||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||||
Total loans | $ 1,056,755 | $ 1,003,979 | ||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 20.90% | |||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | $ 1,056,755 | |||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 20.65% | |||
Commercial Portfolio Segment [Member] | Construction [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | $ 22,826 | |||
Commercial Portfolio Segment [Member] | Construction [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 0.45% | |||
Commercial Portfolio Segment [Member] | Construction [Member] | ||||
Total loans | $ 22,826 | $ 20,174 | ||
Total loans including net deferred costs | 17,572 | $ 20,044 | ||
Commercial Portfolio Segment [Member] | Construction [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 0.42% | |||
Consumer and Other Loans [Member] | ||||
Total loans | 41,853 | $ 40,828 | ||
Consumer and Other Loans [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 0.85% | |||
Consumer and Other Loans [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | $ 41,853 | |||
Consumer and Other Loans [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 0.82% | |||
Commercial and Industrial [Member] | Commercial Portfolio Segment [Member] | ||||
Total loans | $ 1,019,501 | $ 992,332 | [1] | |
Commercial and Industrial [Member] | Commercial Portfolio Segment [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | [1] | 20.66% | ||
Commercial and Industrial [Member] | Commercial Portfolio Segment [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | [2] | $ 1,019,501 | ||
Commercial and Industrial [Member] | Commercial Portfolio Segment [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | [2] | 19.92% | ||
Lease Financing [Member] | ||||
Total loans | $ 312,133 | $ 345,868 | ||
Lease Financing [Member] | Current Expected Credit Loss Methodology [Member] | ||||
Total loans | $ 312,133 | |||
Lease Financing [Member] | Commercial Portfolio Segment [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 7.20% | |||
Lease Financing [Member] | Commercial Portfolio Segment [Member] | Current Expected Credit Loss Methodology [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 6.10% | |||
Secured by Farmland and Agricultural [Member] | ||||
Total loans | $ 6,871 | |||
Secured by Farmland and Agricultural [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||||
Total loans (in percent) | 0.14% | |||
[1] | Includes PPP loans of $13.8 million at December 31, 2021 | |||
[2] | Includes PPP loans of $ 9.6 . |
LOANS AND LEASES (Schedule of_4
LOANS AND LEASES (Schedule of Loan Balances by Pool Segment and Portfolio Class) (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Total loans | $ 5,122,202 | $ 4,806,721 |
U.S. Small Business Administration (SBA) Loans [Member] | Commercial and Industrial [Member] | Commercial Portfolio Segment [Member] | ||
Total loans | $ 9,600 | $ 13,800 |
LOANS AND LEASES (Schedule of I
LOANS AND LEASES (Schedule of Investment in Nonaccrual and Loans Past Due Over 90 Days) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Impaired non-accrual loans | $ 15,884 | $ 15,573 |
Loans Past Due 90 Days or Over And Still Accruing Interest | 0 | 0 |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Impaired non-accrual loans | 17 | 18 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Impaired non-accrual loans | 2,385 | 1,851 |
Loans Past Due 90 Days or Over And Still Accruing Interest | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Impaired non-accrual loans | 420 | 458 |
Loans Past Due 90 Days or Over And Still Accruing Interest | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Impaired non-accrual loans | 12,500 | 12,750 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Impaired non-accrual loans | 562 | 496 |
Loans Past Due 90 Days or Over And Still Accruing Interest | $ 0 | $ 0 |
LOANS AND LEASES (Schedule of A
LOANS AND LEASES (Schedule of Aging of Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
30 to 59 Days Past Due [Member] | ||
Total past due loans | $ 606 | $ 8,464 |
30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total past due loans | 332 | 639 |
30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Total past due loans | 274 | 7,825 |
60 to 89 Days Past Due [Member] | ||
Total past due loans | 142 | |
60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Total past due loans | 142 | |
90 Days or Greater [Member] | ||
Total past due loans | 0 | 0 |
90 Days or Greater [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total past due loans | 0 | 0 |
Total Past Due [Member] | ||
Total past due loans | 606 | 8,606 |
Total Past Due [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total past due loans | 332 | 639 |
Total Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Total past due loans | $ 274 | $ 7,967 |
LOANS AND LEASES - Additional I
LOANS AND LEASES - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)ContractLoan | Mar. 31, 2021Contract | Dec. 31, 2021USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Loan receivable, validate risk ratings performed for large sample or new lending to existing relationships | $ 1,000,000 | ||
Loan receivable, validate risk ratings performed for criticized and classified rated borrowers with relationship exposure, value | 500,000 | ||
Loan receivable, validate risk ratings performed for new regulation "O" loan commitments, value | 1,000,000 | ||
Loan receivable validate risk ratings performed for leveraged loans, value | 1,000,000 | ||
Loan receivable validate risk ratings performed for no borrower with commitments, value | 500,000 | ||
Loan modifications | 947,000,000 | ||
Troubled debt restructurings specific reserves | $ 2,500,000 | $ 0 | |
Number of Loans | 1 | 0 | |
Deferral [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Bank modified loans and contracts | Contract | 542 | ||
Number of Loans | Loan | 4 | ||
Substandard [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable individually evaluated loan | $ 15,900,000 | $ 15,700,000 | |
Minimum [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Loan receivable, validate risk ratings performed for large sample of borrowers with relationship, value | 1,000,000 | ||
Maximum [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Loan receivable, validate risk ratings performed for small sample of borrowers with relationship, value | $ 1,000,000 |
LOANS AND LEASES (Summary of Cr
LOANS AND LEASES (Summary of Credit Risk Profile of Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
2022 | $ 495,640 | ||
2021 | 1,422,707 | ||
2020 | 482,295 | ||
2019 | 733,179 | ||
2018 | 354,054 | ||
2017 and Prior | 1,172,769 | ||
Revolving | 79,958 | ||
Revolving-Term | 377,005 | ||
Total loans | 5,117,607 | $ 4,802,758 | |
Pass [Member] | |||
2022 | 495,640 | ||
2021 | 1,422,707 | ||
2020 | 481,813 | ||
2019 | 686,523 | ||
2018 | 312,731 | ||
2017 and Prior | 1,117,990 | ||
Revolving | 73,366 | ||
Revolving-Term | 369,433 | ||
Total loans | 4,960,203 | 4,635,566 | |
Special Mention [Member] | |||
2019 | 44,399 | ||
2018 | 8,048 | ||
2017 and Prior | 44,213 | ||
Revolving | 6,345 | ||
Revolving-Term | 7,013 | ||
Total loans | 110,018 | 116,490 | |
Substandard [Member] | |||
2020 | 482 | ||
2019 | 2,257 | ||
2018 | 33,275 | ||
2017 and Prior | 10,566 | ||
Revolving | 247 | ||
Revolving-Term | 559 | ||
Total loans | 47,386 | 50,702 | |
Lease Financing [Member] | |||
2022 | 5,630 | ||
2021 | 106,238 | ||
2020 | 70,994 | ||
2019 | 66,563 | ||
2018 | 39,897 | ||
2017 and Prior | 22,811 | ||
Total loans | 312,133 | 345,868 | |
Lease Financing [Member] | Pass [Member] | |||
2022 | 5,630 | ||
2021 | 106,238 | ||
2020 | 70,994 | ||
2019 | 66,563 | ||
2018 | 39,897 | ||
2017 and Prior | 22,811 | ||
Total loans | 312,133 | 345,868 | |
Construction [Member] | |||
Total loans | 22,826 | ||
Residential Portfolio Segment [Member] | Junior Lien [Member] | |||
2022 | 441 | ||
2021 | 208 | ||
2020 | 53 | ||
2019 | 721 | ||
2018 | 422 | ||
2017 and Prior | 1,298 | ||
Revolving-Term | 38,604 | ||
Total loans | 41,747 | 3,191 | |
Residential Portfolio Segment [Member] | Junior Lien [Member] | Pass [Member] | |||
2022 | 441 | ||
2021 | 208 | ||
2020 | 53 | ||
2019 | 721 | ||
2018 | 422 | ||
2017 and Prior | 1,281 | ||
Revolving-Term | 38,081 | ||
Total loans | 41,207 | 3,173 | |
Residential Portfolio Segment [Member] | Junior Lien [Member] | Substandard [Member] | |||
2017 and Prior | 17 | ||
Revolving-Term | 523 | ||
Total loans | 540 | 18 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||
2022 | 38,233 | ||
2021 | 102,596 | ||
2020 | 69,019 | ||
2019 | 46,128 | ||
2018 | 30,255 | ||
2017 and Prior | 229,044 | ||
Revolving | 700 | ||
Revolving-Term | 375 | ||
Total loans | 516,350 | 500,243 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Pass [Member] | |||
2022 | 38,233 | ||
2021 | 102,596 | ||
2020 | 68,550 | ||
2019 | 45,913 | ||
2018 | 29,968 | ||
2017 and Prior | 227,138 | ||
Revolving | 700 | ||
Revolving-Term | 375 | ||
Total loans | 513,473 | 494,444 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Special Mention [Member] | |||
2017 and Prior | 319 | ||
Total loans | 319 | 557 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Substandard [Member] | |||
2020 | 469 | ||
2019 | 215 | ||
2018 | 287 | ||
2017 and Prior | 1,587 | ||
Total loans | 2,558 | 5,242 | |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||
2022 | 312,564 | ||
2021 | 688,845 | ||
2020 | 120,104 | ||
2019 | 288,356 | ||
2018 | 59,972 | ||
2017 and Prior | 370,729 | ||
Revolving | 7,578 | ||
Revolving-Term | 1,949 | ||
Total loans | 1,850,097 | 1,595,866 | |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Pass [Member] | |||
2022 | 312,564 | ||
2021 | 688,845 | ||
2020 | 120,104 | ||
2019 | 285,468 | ||
2018 | 59,972 | ||
2017 and Prior | 358,853 | ||
Revolving | 7,578 | ||
Revolving-Term | 1,949 | ||
Total loans | 1,835,333 | 1,579,776 | |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Special Mention [Member] | |||
2019 | 2,888 | ||
2017 and Prior | 3,564 | ||
Total loans | 6,452 | 7,720 | |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Substandard [Member] | |||
2017 and Prior | 8,312 | ||
Total loans | 8,312 | 8,370 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||
2022 | 1,731 | ||
2021 | 44,926 | ||
2020 | 21,276 | ||
2019 | 12,587 | ||
2018 | 25,860 | ||
2017 and Prior | 146,722 | ||
Revolving | 2,359 | ||
Revolving-Term | 884 | ||
Total loans | 256,345 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Pass [Member] | |||
2022 | 1,731 | ||
2021 | 44,926 | ||
2020 | 21,276 | ||
2019 | 12,587 | ||
2018 | 25,860 | ||
2017 and Prior | 146,302 | ||
Revolving | 2,112 | ||
Revolving-Term | 884 | ||
Total loans | 255,678 | 251,229 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Special Mention [Member] | |||
Total loans | 663 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Substandard [Member] | |||
2017 and Prior | 420 | ||
Revolving | 247 | ||
Total loans | 667 | 711 | |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||
2022 | 59,535 | ||
2021 | 164,327 | ||
2020 | 65,408 | ||
2019 | 198,357 | ||
2018 | 136,959 | ||
2017 and Prior | 380,623 | ||
Revolving | 36,005 | ||
Revolving-Term | 15,541 | ||
Total loans | 1,056,755 | 1,003,979 | |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Pass [Member] | |||
2022 | 59,535 | ||
2021 | 164,327 | ||
2020 | 65,408 | ||
2019 | 160,095 | ||
2018 | 116,607 | ||
2017 and Prior | 340,366 | ||
Revolving | 36,005 | ||
Revolving-Term | 13,130 | ||
Total loans | 955,473 | 901,877 | |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Special Mention [Member] | |||
2019 | 36,220 | ||
2018 | 7,852 | ||
2017 and Prior | 40,257 | ||
Revolving-Term | 2,411 | ||
Total loans | 86,740 | 87,297 | |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Substandard [Member] | |||
2019 | 2,042 | ||
2018 | 12,500 | ||
Total loans | 14,542 | 14,805 | |
Consumer and Other [Member] | |||
2021 | 437 | ||
2020 | 270 | ||
2019 | 20 | ||
2017 and Prior | 6,197 | ||
Revolving | 3,331 | ||
Revolving-Term | 31,598 | ||
Total loans | 41,853 | 40,828 | |
Consumer and Other [Member] | Pass [Member] | |||
2021 | 437 | ||
2020 | 270 | ||
2019 | 20 | ||
2017 and Prior | 6,197 | ||
Revolving | 3,331 | ||
Revolving-Term | 31,598 | ||
Total loans | 41,853 | 40,828 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
2022 | 77,506 | ||
2021 | 315,130 | ||
2020 | 135,171 | ||
2019 | 118,985 | ||
2018 | 60,689 | ||
2017 and Prior | 15,264 | ||
Revolving | 19,790 | ||
Revolving-Term | 276,966 | ||
Total loans | 1,019,501 | 992,332 | [1] |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Pass [Member] | |||
2022 | 77,506 | ||
2021 | 315,130 | ||
2020 | 135,158 | ||
2019 | 113,694 | ||
2018 | 40,005 | ||
2017 and Prior | 15,034 | ||
Revolving | 13,445 | ||
Revolving-Term | 272,328 | ||
Total loans | 982,300 | 951,127 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member] | |||
2019 | 5,291 | ||
2018 | 196 | ||
Revolving | 6,345 | ||
Revolving-Term | 4,602 | ||
Total loans | 16,434 | 20,178 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Substandard [Member] | |||
2020 | 13 | ||
2018 | 20,488 | ||
2017 and Prior | 230 | ||
Revolving-Term | 36 | ||
Total loans | 20,767 | 21,027 | |
Commercial Portfolio Segment [Member] | Construction [Member] | |||
2019 | 1,462 | ||
2017 and Prior | 81 | ||
Revolving | 10,195 | ||
Revolving-Term | 11,088 | ||
Total loans | 22,826 | 20,174 | |
Commercial Portfolio Segment [Member] | Construction [Member] | Pass [Member] | |||
2019 | 1,462 | ||
2017 and Prior | 8 | ||
Revolving | 10,195 | ||
Revolving-Term | 11,088 | ||
Total loans | 22,753 | 20,099 | |
Commercial Portfolio Segment [Member] | Construction [Member] | Special Mention [Member] | |||
2017 and Prior | 73 | ||
Total loans | $ 73 | $ 75 | |
[1] | Includes PPP loans of $13.8 million at December 31, 2021 |
LOANS AND LEASES (Schedule of R
LOANS AND LEASES (Schedule of Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Total loans | $ 5,117,607 | $ 4,802,758 | |
Lease Financing [Member] | |||
Total loans | 312,133 | 345,868 | |
Secured by Farmland and Agricultural [Member] | |||
Total loans | 6,871 | ||
Construction [Member] | |||
Total loans | 22,826 | ||
Residential Portfolio Segment [Member] | Junior Lien [Member] | |||
Total loans | 41,747 | 3,191 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||
Total loans | 516,350 | 500,243 | |
Residential Portfolio Segment [Member] | Home Equity Line of Credit [Member] | |||
Total loans | 40,803 | ||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||
Total loans | 1,850,097 | 1,595,866 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||
Total loans | 256,345 | ||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||
Total loans | 1,056,755 | 1,003,979 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Total loans | 1,019,501 | 992,332 | [1] |
Commercial Portfolio Segment [Member] | Construction [Member] | |||
Total loans | 22,826 | 20,174 | |
Consumer and Other Loans [Member] | |||
Total loans | 41,853 | 40,828 | |
Pass [Member] | |||
Total loans | 4,960,203 | 4,635,566 | |
Pass [Member] | Lease Financing [Member] | |||
Total loans | 312,133 | 345,868 | |
Pass [Member] | Secured by Farmland and Agricultural [Member] | |||
Total loans | 6,871 | ||
Pass [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member] | |||
Total loans | 41,207 | 3,173 | |
Pass [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||
Total loans | 513,473 | 494,444 | |
Pass [Member] | Residential Portfolio Segment [Member] | Home Equity Line of Credit [Member] | |||
Total loans | 40,274 | ||
Pass [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||
Total loans | 1,835,333 | 1,579,776 | |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||
Total loans | 255,678 | 251,229 | |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||
Total loans | 955,473 | 901,877 | |
Pass [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Total loans | 982,300 | 951,127 | |
Pass [Member] | Commercial Portfolio Segment [Member] | Construction [Member] | |||
Total loans | 22,753 | 20,099 | |
Pass [Member] | Consumer and Other Loans [Member] | |||
Total loans | 41,853 | 40,828 | |
Special Mention [Member] | |||
Total loans | 110,018 | 116,490 | |
Special Mention [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||
Total loans | 319 | 557 | |
Special Mention [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||
Total loans | 6,452 | 7,720 | |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||
Total loans | 663 | ||
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||
Total loans | 86,740 | 87,297 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Total loans | 16,434 | 20,178 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | Construction [Member] | |||
Total loans | 73 | 75 | |
Substandard [Member] | |||
Total loans | 47,386 | 50,702 | |
Substandard [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member] | |||
Total loans | 540 | 18 | |
Substandard [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||
Total loans | 2,558 | 5,242 | |
Substandard [Member] | Residential Portfolio Segment [Member] | Home Equity Line of Credit [Member] | |||
Total loans | 529 | ||
Substandard [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||
Total loans | 8,312 | 8,370 | |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||
Total loans | 667 | 711 | |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||
Total loans | 14,542 | 14,805 | |
Substandard [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Total loans | $ 20,767 | $ 21,027 | |
[1] | Includes PPP loans of $13.8 million at December 31, 2021 |
LOANS AND LEASES (Schedule of_5
LOANS AND LEASES (Schedule of Loan Modifications) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)Loan | Mar. 31, 2021Contract | |
Number of Loans | 1 | 0 |
Post-Modification Outstanding Recorded Investment | $ 12,500 | |
Deferral [Member] | ||
Number of Loans | Loan | 4 | |
Post-Modification Outstanding Recorded Investment | $ 12,656 | |
Deferral [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Number of Loans | Loan | 4 | |
Post-Modification Outstanding Recorded Investment | $ 12,656 |
LOANS AND LEASES (Schedule of_6
LOANS AND LEASES (Schedule of Loans Modified as Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)Loan | Mar. 31, 2021Contract | |
Number of Loans | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 12,500 | |
Post-Modification Outstanding Recorded Investment | $ 12,500 | |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Number of Loans | Loan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 12,500 | |
Post-Modification Outstanding Recorded Investment | $ 12,500 |
LOANS AND LEASES (Schedule of M
LOANS AND LEASES (Schedule of Modified as Troubled Debt Restructurings Subsequently Defaulted) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)Contract | Mar. 31, 2021USD ($)Contract | |
Number of Subsequently Defaulted Loans | Contract | 1 | 1 |
Subsequently Defaulted Recorded Investment | $ | $ 215 | $ 132 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Number of Subsequently Defaulted Loans | Contract | 1 | 1 |
Subsequently Defaulted Recorded Investment | $ | $ 215 | $ 132 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Additional Information (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accrued interest receivable | $ 22,890,000 | $ 21,589,000 |
Impaired non-accrual loans | 15,884,000 | 15,573,000 |
Individually evaluated loans balance | 12,500,000 | 19,887,000 |
Recording charge-off | 7,400,000 | |
Individually evaluated non-accrual loans performing troubled debt restructured | 2,400,000 | 2,500,000 |
Allowance allocated to troubled debt restructured loans | 2,500,000 | 0 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Individually evaluated loans balance | 12,500,000 | |
Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accrued interest receivable | $ 20,800,000 | $ 19,100,000 |
Allowance for Credit Losses (Sc
Allowance for Credit Losses (Schedule of Balances by Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Individually Evaluated for Impairment | $ 13,479 | $ 18,052 | ||||
Ending ACL Attributable to Loans Individually Evaluated for Impairment | 2,500 | 4,234 | ||||
Total Loans Collectively Evaluated for Impairment | 5,104,128 | 4,784,706 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 55,886 | 57,463 | ||||
Total Loans | 5,117,607 | 4,802,758 | ||||
Total Ending ACL | 58,386 | [1] | 61,697 | [1] | $ 67,536 | $ 67,309 |
Lease Financing [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Collectively Evaluated for Impairment | 312,133 | 345,868 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 3,354 | 3,440 | ||||
Total Loans | 312,133 | 345,868 | ||||
Total Ending ACL | 3,354 | 3,440 | ||||
Secured by Farmland and Agricultural [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Collectively Evaluated for Impairment | 6,871 | |||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 84 | |||||
Total Loans | 6,871 | |||||
Total Ending ACL | 84 | 47 | 43 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Individually Evaluated for Impairment | 266 | 2,584 | ||||
Total Loans Collectively Evaluated for Impairment | 1,019,235 | 989,748 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 18,653 | 17,509 | ||||
Total Loans | 1,019,501 | 992,332 | [2] | |||
Total Ending ACL | 18,653 | 17,509 | 20,125 | 19,047 | ||
Consumer and Other [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Collectively Evaluated for Impairment | 41,853 | 40,828 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 708 | 215 | ||||
Total Loans | 41,853 | 40,828 | ||||
Total Ending ACL | 708 | 215 | 262 | 279 | ||
Junior Lien [Member] | Residential Portfolio Segment [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Individually Evaluated for Impairment | 18 | |||||
Total Loans Collectively Evaluated for Impairment | 41,747 | 3,173 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 242 | 5 | ||||
Total Loans | 41,747 | 3,191 | ||||
Total Ending ACL | 242 | 5 | 16 | 15 | ||
Primary Residential Mortgages [Member] | Residential Portfolio Segment [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Individually Evaluated for Impairment | 385 | 2,242 | ||||
Total Loans Collectively Evaluated for Impairment | 515,965 | 498,001 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 3,545 | 1,432 | ||||
Total Loans | 516,350 | 500,243 | ||||
Total Ending ACL | 3,545 | 1,432 | 2,776 | 2,905 | ||
Home Equity Line of Credit [Member] | Residential Portfolio Segment [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Collectively Evaluated for Impairment | 40,803 | |||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 83 | |||||
Total Loans | 40,803 | |||||
Total Ending ACL | 83 | 198 | 218 | |||
Multifamily Property [Member] | Residential Portfolio Segment [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Collectively Evaluated for Impairment | 1,850,097 | 1,595,866 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 15,480 | 9,806 | ||||
Total Loans | 1,850,097 | 1,595,866 | ||||
Total Ending ACL | 15,480 | 9,806 | 10,427 | 9,945 | ||
Owner Occupied Property [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Individually Evaluated for Impairment | 328 | 458 | ||||
Total Loans Collectively Evaluated for Impairment | 256,017 | 252,145 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 4,903 | 1,998 | ||||
Total Loans | 256,345 | 252,603 | ||||
Total Ending ACL | 4,903 | 1,998 | 2,864 | 3,050 | ||
Investment Property [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Individually Evaluated for Impairment | 12,500 | 12,750 | ||||
Ending ACL Attributable to Loans Individually Evaluated for Impairment | 2,500 | 4,234 | ||||
Total Loans Collectively Evaluated for Impairment | 1,044,255 | 991,229 | ||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 8,469 | 22,849 | ||||
Total Loans | 1,056,755 | 1,003,979 | ||||
Total Ending ACL | 10,969 | 27,083 | 26,693 | 27,713 | ||
Construction [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Collectively Evaluated for Impairment | 22,826 | |||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 532 | |||||
Total Loans | 22,826 | |||||
Total Ending ACL | 532 | |||||
Construction [Member] | Commercial Portfolio Segment [Member] | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans Collectively Evaluated for Impairment | 20,174 | |||||
Ending ACL Attributable to Loans Collectively Evaluated for Impairment | 42 | |||||
Total Loans | $ 22,826 | 20,174 | ||||
Total Ending ACL | $ 42 | $ 161 | $ 158 | |||
[1] | Commencing on January 1, 2022, the allowance calculation is based on the current expected credit loss methodology. Prior to January 1, 2022, the calculation was based on the incurred loss methodology. | |||||
[2] | Includes PPP loans of $13.8 million at December 31, 2021 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Schedule of Loans Individually Evaluated by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Unpaid Principal Balance | ||
With no related allowance recorded | $ 1,084 | $ 7,512 |
With related allowance recorded: | 12,500 | 19,887 |
Total loans individually evaluated | 13,584 | 27,399 |
Recorded Investment | ||
With no related allowance recorded | 979 | 5,302 |
With related allowance recorded: | 12,500 | 12,750 |
Total loans individually evaluated | 13,479 | 18,052 |
Related Allowance | 2,500 | 4,234 |
Average Individually Evaluated Loans | ||
With no related allowance recorded | 967 | 5,514 |
With related allowance recorded: | 12,667 | 6,034 |
Total loans individually evaluated | 13,634 | 11,548 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 445 | 2,453 |
Recorded Investment | ||
With no related allowance recorded | 385 | 2,242 |
Average Individually Evaluated Loans | ||
With no related allowance recorded | 343 | 1,818 |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 18 | |
Recorded Investment | ||
With no related allowance recorded | 18 | |
Average Individually Evaluated Loans | ||
With no related allowance recorded | 3 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Unpaid Principal Balance | ||
With related allowance recorded: | 12,500 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 357 | 492 |
Recorded Investment | ||
With no related allowance recorded | 328 | 458 |
Average Individually Evaluated Loans | ||
With no related allowance recorded | 342 | 540 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Unpaid Principal Balance | ||
With related allowance recorded: | 12,500 | 19,887 |
Recorded Investment | ||
With related allowance recorded: | 12,500 | 12,750 |
Related Allowance | 2,500 | 4,234 |
Average Individually Evaluated Loans | ||
With related allowance recorded: | 12,667 | 6,034 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 282 | 4,549 |
Recorded Investment | ||
With no related allowance recorded | 266 | 2,584 |
Average Individually Evaluated Loans | ||
With no related allowance recorded | $ 282 | $ 3,153 |
Allowance for Credit Losses (_3
Allowance for Credit Losses (Schedule of Activity in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | $ 61,697 | [1] | $ 67,309 |
Charge-Offs | (270) | (15) | |
Recoveries | 6 | 17 | |
Provision (Credit) | 2,489 | 225 | |
Ending ALLL | 58,386 | [1] | 67,536 |
Secured by Farmland and Agricultural [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 84 | 43 | |
Provision (Credit) | 4 | ||
Ending ALLL | 47 | ||
Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 61,697 | ||
Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | (5,536) | ||
Construction [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Provision (Credit) | 66 | ||
Ending ALLL | 532 | ||
Construction [Member] | Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 48 | ||
Construction [Member] | Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | 418 | ||
Residential Portfolio Segment [Member] | Junior Lien [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 5 | 15 | |
Provision (Credit) | (20) | 1 | |
Ending ALLL | 242 | 16 | |
Residential Portfolio Segment [Member] | Junior Lien [Member] | Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 88 | ||
Residential Portfolio Segment [Member] | Junior Lien [Member] | Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | 174 | ||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 1,432 | 2,905 | |
Provision (Credit) | 431 | (129) | |
Ending ALLL | 3,545 | 2,776 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 1,510 | ||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | 1,604 | ||
Residential Portfolio Segment [Member] | Home Equity Line of Credit [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 83 | 218 | |
Recoveries | 9 | ||
Provision (Credit) | (29) | ||
Ending ALLL | 198 | ||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 9,806 | 9,945 | |
Provision (Credit) | 1,911 | 482 | |
Ending ALLL | 15,480 | 10,427 | |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 9,806 | ||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | 3,763 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 1,998 | 3,050 | |
Provision (Credit) | (29) | (186) | |
Ending ALLL | 4,903 | 2,864 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 1,998 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | 2,934 | ||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 27,083 | 27,713 | |
Charge-Offs | (250) | ||
Provision (Credit) | (2,414) | (1,020) | |
Ending ALLL | 10,969 | 26,693 | |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 27,083 | ||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | (13,450) | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 17,509 | 19,047 | |
Recoveries | 4 | 7 | |
Provision (Credit) | 2,786 | 1,071 | |
Ending ALLL | 18,653 | 20,125 | |
Commercial Portfolio Segment [Member] | Pre-ASC-326 Adoption [Member] | Commercial and Industrial [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 17,509 | ||
Commercial Portfolio Segment [Member] | Impact of ASC-326 Adoption [Member] | Commercial and Industrial [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | (1,646) | ||
Commercial Portfolio Segment [Member] | Lease Financing [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 3,936 | ||
Provision (Credit) | (242) | 31 | |
Ending ALLL | 3,354 | 3,967 | |
Commercial Portfolio Segment [Member] | Lease Financing [Member] | Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 3,440 | ||
Commercial Portfolio Segment [Member] | Lease Financing [Member] | Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | 156 | ||
Commercial Portfolio Segment [Member] | Construction [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 42 | 158 | |
Provision (Credit) | 3 | ||
Ending ALLL | 161 | ||
Consumer and Other [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 215 | 279 | |
Charge-Offs | (20) | (15) | |
Recoveries | 2 | 1 | |
Provision (Credit) | (3) | ||
Ending ALLL | 708 | $ 262 | |
Consumer and Other [Member] | Pre-ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Beginning ALLL | 215 | ||
Consumer and Other [Member] | Impact of ASC-326 Adoption [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Impact of adopting Topic 326 | $ 511 | ||
[1] | Commencing on January 1, 2022, the allowance calculation is based on the current expected credit loss methodology. Prior to January 1, 2022, the calculation was based on the incurred loss methodology. |
Allowance for Credit Losses (_4
Allowance for Credit Losses (Schedule of Activity in ACL for Off Balance Sheet Commitments) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Credit Loss [Abstract] | |
Off balance sheet commitments, Impact of adiopting Topic 326 | $ 302 |
Off balance sheet commitments, Provision (Credit) | (114) |
Off balance sheet commitments, Ending ACL | 188 |
Total ACL, Impact of adopting Topic 326 | 302 |
Total ACL, Provision (Credit) | (114) |
Total ACL, Ending ACL | $ 188 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Time deposits met or exceeded $250,000 | $ 131,500 | $ 140,400 |
DEPOSITS (Schedule of Details o
DEPOSITS (Schedule of Details of Total Deposits) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Deposits: | |||
Noninterest-bearing demand deposits | $ 1,023,208 | $ 956,482 | |
Interest-bearing checking | [1] | 2,362,987 | 2,287,894 |
Savings | 162,116 | 154,914 | |
Money market | 1,304,017 | 1,307,051 | |
Certificates of deposit - retail | 384,909 | 409,608 | |
Certificates of deposit - listing service | 31,348 | 31,382 | |
Subtotal deposits | 5,268,585 | 5,147,331 | |
Interest-bearing demand - Brokered | 85,000 | 85,000 | |
Certificates of deposit - Brokered | 33,831 | 33,818 | |
Total deposits | $ 5,387,416 | $ 5,266,149 | |
% | |||
Noninterest-bearing demand deposits | 18.99% | 18.16% | |
Interest-bearing checking | [1] | 43.86% | 43.45% |
Savings | 3.01% | 2.94% | |
Money market | 24.21% | 24.82% | |
Certificates of deposit - retail | 7.14% | 7.78% | |
Certificates of deposit - listing service | 0.58% | 0.60% | |
Subtotal deposits | 97.79% | 97.75% | |
Interest-bearing demand - Brokered | 1.58% | 1.61% | |
Certificates of deposit - Brokered | 0.63% | 0.64% | |
Total deposits | 100.00% | 100.00% | |
[1] | Interest-bearing checking includes |
DEPOSITS (Details of Total Depo
DEPOSITS (Details of Total Deposits) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits: | ||
Reciprocal balances | $ 665 | $ 647.8 |
DEPOSITS (Scheduled Maturities
DEPOSITS (Scheduled Maturities of Time Deposits) (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Scheduled maturities of time deposits | |
2022 | $ 294,833 |
2023 | 80,394 |
2024 | 34,021 |
2025 | 29,271 |
2026 | 11,027 |
Over 5 Years | 542 |
Total | $ 450,088 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Overnight borrowings with FHLB | $ 122,085 | |
Unused commitments from FHLB | 1,800,000 | |
Unused short-term or overnight borrowings from correspondent banks | 22,000 | |
Unused short-term or overnight borrowings from FRB | 1,600,000 | |
Federal Reserve Bank of New York [Member] | ||
Debt Instrument [Line Items] | ||
Overnight borrowings with FHLB | $ 122,100 | $ 0 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
BUSINESS SEGMENTS - Schedule of
BUSINESS SEGMENTS - Schedule of Income and Total Assets for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||
Net interest income | $ 39,622 | $ 31,793 | ||
Noninterest income | 14,714 | 17,820 | ||
Total income | 54,336 | 49,613 | ||
Provision for credit losses | [1] | 2,375 | 225 | |
Compensation and employee benefits | 22,449 | 21,990 | ||
Premises and equipment | 4,647 | 4,113 | ||
FDIC insurance expense | 471 | 585 | ||
Other operating expense | 6,602 | 4,906 | ||
Total operating expense | 36,544 | 31,819 | ||
INCOME BEFORE INCOME TAX EXPENSE | 17,792 | 17,794 | ||
Income tax expense | 4,351 | 4,616 | ||
NET INCOME | 13,441 | 13,178 | ||
Total assets at period end | 6,255,664 | 5,969,627 | $ 6,077,993 | |
Banking Segment [Member] | ||||
Net interest income | 37,999 | 30,226 | ||
Noninterest income | (429) | 5,140 | ||
Total income | 37,570 | 35,366 | ||
Provision for credit losses | 2,375 | 225 | ||
Compensation and employee benefits | 16,403 | 16,428 | ||
Premises and equipment | 3,931 | 3,570 | ||
FDIC insurance expense | 471 | 585 | ||
Other operating expense | 4,166 | 2,391 | ||
Total operating expense | 27,346 | 23,199 | ||
INCOME BEFORE INCOME TAX EXPENSE | 10,224 | 12,167 | ||
Income tax expense | 2,300 | 3,159 | ||
NET INCOME | 7,924 | 9,008 | ||
Total assets at period end | 6,155,011 | 5,883,553 | ||
Peapack Private Segment [Member] | ||||
Net interest income | 1,623 | 1,567 | ||
Noninterest income | 15,143 | 12,680 | ||
Total income | 16,766 | 14,247 | ||
Provision for credit losses | 0 | 0 | ||
Compensation and employee benefits | 6,046 | 5,562 | ||
Premises and equipment | 716 | 543 | ||
FDIC insurance expense | 0 | 0 | ||
Other operating expense | 2,436 | 2,515 | ||
Total operating expense | 9,198 | 8,620 | ||
INCOME BEFORE INCOME TAX EXPENSE | 7,568 | 5,627 | ||
Income tax expense | 2,051 | 1,457 | ||
NET INCOME | 5,517 | 4,170 | ||
Total assets at period end | $ 100,653 | $ 86,074 | ||
[1] | Commencing on January 1, 2022, the allowance calculation is based on the current expected credit loss methodology. Prior to January 1, 2022, the calculation was based on the incurred loss methodology. |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value transfers between level 1 and level 2 | $ 0 |
Loans [Member] | Property A [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Discount rate | 15.00% |
Age of appraisal | 12 months |
FAIR VALUE (Schedule of Assets
FAIR VALUE (Schedule of Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Securities available for sale | $ 601,163 | $ 796,753 |
Loans held for sale, at fair value | 605 | 3,040 |
Recurring Basis [Member] | ||
Loans held for sale, at fair value | 605 | 3,040 |
Total | 625,070 | 846,804 |
Derivatives | 10,108 | 38,048 |
Recurring Basis [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives | 391 | |
Derivatives | 1,074 | 3,479 |
Recurring Basis [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives | 8,908 | 32,326 |
Derivatives | 9,034 | 34,569 |
Recurring Basis [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | ||
Total | 14,003 | 14,685 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Loans held for sale, at fair value | 605 | 3,040 |
Total | 611,067 | 832,119 |
Derivatives | 10,108 | 38,048 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives | 391 | |
Derivatives | 1,074 | 3,479 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives | 8,908 | 32,326 |
Derivatives | 9,034 | 34,569 |
U.S. Government-Sponsored Agencies [Member] | ||
Securities available for sale | 218,263 | 272,221 |
U.S. Government-Sponsored Agencies [Member] | Recurring Basis [Member] | ||
Securities available for sale | 218,263 | 272,221 |
U.S. Government-Sponsored Agencies [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 218,263 | 272,221 |
Mortgage-Backed Securities-Residential [Member] | ||
Securities available for sale | 340,513 | 476,974 |
Mortgage-Backed Securities-Residential [Member] | Recurring Basis [Member] | ||
Securities available for sale | 340,513 | 476,974 |
Mortgage-Backed Securities-Residential [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 340,513 | 476,974 |
SBA Pool Securities [Member] | ||
Securities available for sale | 35,475 | 39,561 |
SBA Pool Securities [Member] | Recurring Basis [Member] | ||
Securities available for sale | 35,475 | 39,561 |
SBA Pool Securities [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 35,475 | 39,561 |
State and Political Subdivisions [Member] | ||
Securities available for sale | 4,520 | 5,476 |
State and Political Subdivisions [Member] | Recurring Basis [Member] | ||
Securities available for sale | 4,520 | 5,476 |
State and Political Subdivisions [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 4,520 | 5,476 |
Corporate Bond [Member] | ||
Securities available for sale | 2,392 | 2,521 |
Corporate Bond [Member] | Recurring Basis [Member] | ||
Securities available for sale | 2,392 | 2,521 |
Corporate Bond [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 2,392 | 2,521 |
CRA Investment Fund [Member] | Recurring Basis [Member] | ||
Securities available for sale | 14,003 | 14,685 |
CRA Investment Fund [Member] | Recurring Basis [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | ||
Securities available for sale | $ 14,003 | $ 14,685 |
FAIR VALUE (Schedule of Residen
FAIR VALUE (Schedule of Residential Loans Held for Sale, at Fair Value) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Residential loans contractual balance | $ 595 | $ 2,992 |
Fair value adjustment | 10 | 48 |
Total fair value of residential loans held for sale | $ 605 | $ 3,040 |
FAIR VALUE (Schedule of Asset_2
FAIR VALUE (Schedule of Assets Measured on a Non-Recurring Basis) (Details) - Non-Recurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Individually evaluated loans | $ 10,000 | |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Individually evaluated loans | $ 10,000 | |
Investment Property [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Individually evaluated loans | $ 8,516 | |
Investment Property [Member] | Commercial Real Estate Portfolio Segment [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Individually evaluated loans | $ 8,516 |
FAIR VALUE (Schedule of Financi
FAIR VALUE (Schedule of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Securities available for sale | $ 601,163 | $ 796,753 |
Securities held to maturity | 106,816 | 108,680 |
FHLB and FRB stock | 18,570 | 12,950 |
Loans held for sale, at fair value | 605 | 3,040 |
Loans held for sale, at lower of cost or fair value | 26,350 | 34,051 |
Accrued interest receivable | 22,890 | 21,589 |
Fair Value | 601,163 | 796,753 |
Securities held to maturity (fair value $100,314 at March 31, 2022 and $108,460 at December 31, 2021) | 106,816 | 108,680 |
Financial Liabilities: | ||
Overnight borrowings with FHLB | 122,085 | |
Carrying Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 113,960 | 146,804 |
Securities available for sale | 601,163 | 796,753 |
Securities held to maturity | 106,816 | 108,680 |
CRA investment fund | 14,003 | 14,685 |
FHLB and FRB stock | 18,570 | 12,950 |
Loans held for sale, at fair value | 605 | 3,040 |
Loans held for sale, at lower of cost or fair value | 26,350 | 34,051 |
Loans, net of allowance for credit losses | 5,063,816 | |
Loans, net of allowance for loan and lease losses | 4,745,024 | |
Accrued interest receivable | 22,890 | 21,589 |
Fair Value | 601,163 | 796,753 |
Securities held to maturity (fair value $100,314 at March 31, 2022 and $108,460 at December 31, 2021) | 106,816 | 108,680 |
Financial Liabilities: | ||
Deposits | 5,387,416 | 5,266,149 |
Overnight borrowings with FHLB | 122,085 | |
Subordinated debt | 132,772 | 132,701 |
Accrued interest payable | 1,928 | 651 |
Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | ||
Financial Assets: | ||
Accrued interest receivable | 3,642 | 4,842 |
Derivatives | 8,908 | 32,326 |
Financial Liabilities: | ||
Accrued interest payable | 3,642 | 4,842 |
Derivatives | 9,034 | 34,569 |
Carrying Value [Member] | Designated as Hedging Instrument [Member] | ||
Financial Assets: | ||
Derivatives | 391 | |
Financial Liabilities: | ||
Derivatives | 1,074 | 3,479 |
Fair value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 113,960 | 146,804 |
Securities available for sale | 601,163 | 796,753 |
Securities held to maturity | 100,314 | 108,460 |
CRA investment fund | 14,003 | 14,685 |
Loans held for sale, at fair value | 605 | 3,040 |
Loans held for sale, at lower of cost or fair value | 29,644 | 37,538 |
Loans, net of allowance for credit losses | 4,887,836 | |
Loans, net of allowance for loan and lease losses | 4,767,293 | |
Accrued interest receivable | 22,890 | 21,589 |
Fair Value | 601,163 | 796,753 |
Securities held to maturity (fair value $100,314 at March 31, 2022 and $108,460 at December 31, 2021) | 100,314 | 108,460 |
Financial Liabilities: | ||
Deposits | 5,383,750 | 5,268,000 |
Overnight borrowings with FHLB | 122,085 | |
Subordinated debt | 131,839 | 140,556 |
Accrued interest payable | 1,928 | 651 |
Fair value [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 113,960 | 146,804 |
CRA investment fund | 14,003 | 14,685 |
Financial Liabilities: | ||
Deposits | 4,937,328 | 4,791,341 |
Accrued interest payable | 163 | 130 |
Fair value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Securities available for sale | 601,163 | 796,753 |
Securities held to maturity | 100,314 | 108,460 |
Loans held for sale, at fair value | 605 | 3,040 |
Loans held for sale, at lower of cost or fair value | 29,644 | 37,538 |
Accrued interest receivable | 2,071 | 2,443 |
Fair Value | 601,163 | 796,753 |
Securities held to maturity (fair value $100,314 at March 31, 2022 and $108,460 at December 31, 2021) | 100,314 | 108,460 |
Financial Liabilities: | ||
Deposits | 446,422 | 476,659 |
Overnight borrowings with FHLB | 122,085 | |
Accrued interest payable | 400 | 446 |
Fair value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Assets: | ||
Loans, net of allowance for credit losses | 4,887,836 | |
Loans, net of allowance for loan and lease losses | 4,767,293 | |
Accrued interest receivable | 20,819 | 19,146 |
Financial Liabilities: | ||
Subordinated debt | 131,839 | 140,556 |
Accrued interest payable | 1,365 | 75 |
Fair value [Member] | Not Designated as Hedging Instrument [Member] | ||
Financial Assets: | ||
Accrued interest receivable | 3,642 | 4,842 |
Derivatives | 8,908 | 32,326 |
Financial Liabilities: | ||
Accrued interest payable | 3,642 | 4,842 |
Derivatives | 9,034 | 34,569 |
Fair value [Member] | Not Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Accrued interest receivable | 3,642 | 4,842 |
Derivatives | 8,908 | 32,326 |
Financial Liabilities: | ||
Accrued interest payable | 3,642 | 4,842 |
Derivatives | 9,034 | 34,569 |
Fair value [Member] | Designated as Hedging Instrument [Member] | ||
Financial Assets: | ||
Derivatives | 391 | |
Financial Liabilities: | ||
Derivatives | 1,074 | 3,479 |
Fair value [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Derivatives | 391 | |
Financial Liabilities: | ||
Derivatives | $ 1,074 | $ 3,479 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of Noninterest Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Service charges on deposits | |||
Overdraft fees | $ 113 | $ 93 | |
Interchange income | 342 | 317 | |
Other | 497 | 436 | |
Wealth management fees | [1] | 14,834 | 12,131 |
Corporate advisory fee income | 1,561 | 1,098 | |
Other | [2] | (2,633) | 3,745 |
Total other income | $ 14,714 | $ 17,820 | |
[1] | Includes investment brokerage fees | ||
[2] | All of the other category is outside the scope of ASC 606 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of Noninterest Income by Operating Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Service charges on deposits | |||
Overdraft fees | $ 113 | $ 93 | |
Interchange income | 342 | 317 | |
Other | 497 | 436 | |
Wealth management fees | [1] | 14,834 | 12,131 |
Corporate advisory fee income | 1,561 | 1,098 | |
Other | [2] | (2,633) | 3,745 |
Total other income | 14,714 | 17,820 | |
Banking Segment [Member] | |||
Service charges on deposits | |||
Overdraft fees | 113 | 93 | |
Interchange income | 342 | 317 | |
Other | 497 | 436 | |
Corporate advisory fee income | 1,561 | 1,098 | |
Other | [2] | (2,942) | 3,196 |
Total other income | (429) | 5,140 | |
Wealth Management Division [Member] | |||
Service charges on deposits | |||
Overdraft fees | 0 | 0 | |
Interchange income | 0 | 0 | |
Other | 0 | 0 | |
Wealth management fees | [1] | 14,834 | 12,131 |
Other | [2] | 309 | 549 |
Total other income | $ 15,143 | $ 12,680 | |
[1] | Includes investment brokerage fees | ||
[2] | All of the other category is outside the scope of ASC 606 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interchange income | $ 342,000 | $ 317,000 |
Cardholder Rewards [Member] | ||
Interchange income | $ 30,000 | $ 29,000 |
OTHER OPERATING EXPENSES (Sched
OTHER OPERATING EXPENSES (Schedule of Components of Other Operating Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other operating expenses | ||
Professional and legal fees | $ 1,138 | $ 1,256 |
Telephone | 334 | 334 |
Advertising | 290 | 214 |
Amortization of intangible assets | 431 | 368 |
Branch restructure | 372 | |
Other operating expenses | 3,364 | 2,734 |
Total other operating expenses | $ 5,929 | $ 4,906 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Schedule of Accumulated Other Comprehensive Income/(Loss) Balances, Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 546,388 | $ 527,122 |
Total other comprehensive loss | (28,564) | (12,372) |
Balance | 523,426 | 522,441 |
Net Unrealized Holding Gain/(Loss) on Securities Available for Sale, Net of Tax [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (9,873) | 5,521 |
Other Comprehensive Income/(Loss) Before Reclassifications | (35,602) | (13,415) |
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss) | 5,028 | |
Total other comprehensive loss | (30,574) | (13,415) |
Balance | (40,447) | (7,894) |
Gain/(Loss) on Cash Flow Hedge [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (2,501) | (6,913) |
Other Comprehensive Income/(Loss) Before Reclassifications | 2,010 | 1,043 |
Total other comprehensive loss | 2,010 | 1,043 |
Balance | (491) | (5,870) |
Accumulated Other Comprehensive Gain/(Loss), Net of Tax [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (12,374) | (1,392) |
Other Comprehensive Income/(Loss) Before Reclassifications | (33,592) | (12,372) |
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss) | 5,028 | |
Total other comprehensive loss | (28,564) | (12,372) |
Balance | $ (40,938) | $ (13,764) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Schedule of Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (4,518) | $ (6,446) |
Income tax expense | (4,351) | (4,616) |
NET INCOME | 13,441 | $ 13,178 |
Reclassification out of Accumulated Other Comprehensive Income | Gain/(Loss) on Cash Flow Hedge [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | 6,609 | |
Income tax expense | (1,581) | |
NET INCOME | $ 5,028 |
DERIVATIVES - Additional Inform
DERIVATIVES - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)Contract | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Derivative [Line Items] | |||
Net interest income | $ 39,622,000 | $ 31,793,000 | |
Swap valuation allowance | 673,000 | ||
Accrued interest receivable | 22,890,000 | $ 21,589,000 | |
Not Designated as Hedging Instrument [Member] | Commercial Real Estate Loan [Member] | |||
Derivative [Line Items] | |||
Swap valuation provision placed on non-accrual status | 2,100,000 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional amount | 230,000,000 | 230,000,000 | |
Unrealized loss | (665,000) | (3,479,000) | |
Net interest income | 999,000 | $ 1,200,000 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Notional amount | 80,000,000 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Notional amount | 150,000,000 | 230,000,000 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 100,000,000 | ||
Derivative, maturity year | 2023 | ||
Derivative, maturity term | 5 years | ||
Weighted-average fixed pay rate | 2.25% | ||
Number of forward contract | Contract | 4 | ||
Unrealized loss | $ 18,000 | ||
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional amount | 677,502,000 | 702,210,000 | |
Swap valuation allowance | 126,000 | 126,000 | |
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Accrued interest receivable | 3,600,000 | 3,600,000 | |
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Accrued interest payable | $ 4,800,000 | $ 4,800,000 |
DERIVATIVES - (Schedule of Info
DERIVATIVES - (Schedule of Information about Interest Rate Swaps Designated as Cash Flow Hedges) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)N | Dec. 31, 2021USD ($)N | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 230,000,000 | $ 230,000,000 |
Fair Value | $ (665,000) | $ (3,479,000) |
Weighted average pay rate | 1.99% | 1.99% |
Weighted average receive rate | 0.23% | 0.20% |
Weighted average maturity | 9 months 14 days | 1 year 14 days |
Unrealized loss, net | $ (665,000) | $ (3,479,000) |
Number of contracts | N | 11 | 13 |
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 677,502,000 | $ 702,210,000 |
Fair Value | $ 9,034,000 | $ 32,326,000 |
Weighted average pay rate | 3.98% | 4.00% |
Weighted average receive rate | 2.20% | 1.83% |
Weighted average maturity | 5 years 2 months 12 days | 5 years 6 months |
Number of contracts | N | 85 | 86 |
DERIVATIVES - (Schedule of Cash
DERIVATIVES - (Schedule of Cash Flow Hedges Included in Financial Statements) (Details) - Designated as Hedging Instrument [Member] - Interest Rate Swap [Member] - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional Amount | $ 230,000,000 | $ 230,000,000 |
Fair Value | (665,000) | (3,479,000) |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 80,000,000 | |
Fair Value | 234,000 | |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 150,000,000 | 230,000,000 |
Fair Value | $ (899,000) | $ (3,479,000) |
DERIVATIVES - (Schedule of Net
DERIVATIVES - (Schedule of Net Gains/(Loss) Recorded in Accumulated Other Comprehensive Income/(Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Gain/(loss) recognized in other comprehensive income (effective portion) | $ 2,010 | $ 1,043 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Gain/(loss) recognized in other comprehensive income (effective portion) | $ 2,796 | $ 1,450 |
SUBORDINATED DEBT - Additional
SUBORDINATED DEBT - Additional Information (Details) - Subordinated Debt [Member] - USD ($) $ in Thousands | 1 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Principal amount | $ 100,000 | $ 35,000 |
Non-callable term | 5 years | 5 years |
Notes maturity date | Dec. 22, 2030 | Dec. 15, 2027 |
Fixed interest rate | 3.50% | 4.75% |
LIBOR spread | 3.26% | 2.54% |
Debt issuance costs | $ 1,900 | $ 875 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | |||
Operating lease right-of-use assets | $ 14,725,000 | $ 9,775,000 | |
Operating lease liabilities | $ 15,155,000 | $ 10,111,000 | |
Weighted average discount rate | 2.66% | 2.78% | |
Weighted average lease term | 7 years 8 months 8 days | 6 years 1 month 2 days | |
Operating lease costs | $ 868,000 | $ 701,000 | |
Variable lease costs | $ 77,000 | $ 84,000 | |
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Remaining lease term | 1 month | 4 months | |
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Remaining lease term | 15 years | 15 years |
LEASES (Schedule of Operating L
LEASES (Schedule of Operating Lease Liabilities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 1,995 | |
2023 | 2,816 | |
2024 | 2,299 | |
2025 | 2,048 | |
2026 | 1,487 | |
Thereafter | 6,194 | |
Total lease payments | 16,839 | |
Less: imputed interest | 1,684 | |
Total present value of lease payments | $ 15,155 | $ 10,111 |
LEASES (Summary of Supplemental
LEASES (Summary of Supplemental Cash Flow Information Related to Direct Finance and Operating Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Right-of-use asset obtained in exchange for lease obligation | $ 5,446 | $ 1,412 |
Operating cash flows from operating leases | 665 | 619 |
Operating cash flows from direct finance leases | 68 | 79 |
Financing cash flows from direct finance leases | $ 187 | $ 187 |