Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36441 | |
Entity Registrant Name | Investors Bancorp, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4702118 | |
Entity Address, Address Line One | 101 JFK Parkway, | |
Entity Address, City or Town | Short Hills, | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07078 | |
City Area Code | 973 | |
Local Phone Number | 924-5100 | |
Title of each class | Common | |
Trading Symbol(s) | ISBC | |
Name of each exchange on which registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 249,907,901 | |
Entity Central Index Key | 0001594012 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 735,234 | $ 174,915 |
Equity securities | 6,190 | 6,039 |
Debt securities available-for-sale, at estimated fair value | 2,886,567 | 2,695,390 |
Debt securities held-to-maturity, net (estimated fair value of $1,262,808 and $1,190,104 at June 30, 2020 and December 31, 2019, respectively) | 1,198,401 | |
Debt securities held-to-maturity, net (estimated fair value of $1,262,808 and $1,190,104 at June 30, 2020 and December 31, 2019, respectively) | 1,148,815 | |
Loans receivable, net | 21,078,644 | 21,476,056 |
Loans held-for-sale | 39,767 | 29,797 |
Federal Home Loan Bank stock | 229,829 | 267,219 |
Accrued interest receivable | 81,609 | 79,313 |
Other real estate owned and other repossessed assets | 9,094 | 13,538 |
Office properties and equipment, net | 165,609 | 169,614 |
Operating lease right-of-use assets | 172,432 | 175,143 |
Net deferred tax asset | 106,885 | 64,220 |
Bank owned life insurance | 221,509 | 218,517 |
Goodwill and intangible assets | 109,178 | 97,869 |
Other assets | 153,200 | 82,321 |
Total assets | 27,194,148 | 26,698,766 |
Liabilities: | ||
Deposits | 19,487,302 | 17,860,338 |
Borrowed funds | 4,632,016 | 5,827,111 |
Advance payments by borrowers for taxes and insurance | 125,472 | 121,719 |
Operating lease liabilities | 184,572 | 185,827 |
Other liabilities | 141,886 | 81,821 |
Total liabilities | 24,571,248 | 24,076,816 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 100,000,000 authorized shares; none issued | 0 | 0 |
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 361,869,872 and 359,070,852 issued at June 30, 2020 and December 31, 2019, respectively; 249,908,507 and 247,439,902 outstanding at June 30, 2020 and December 31, 2019, respectively | 3,619 | 3,591 |
Additional paid-in capital | 2,851,306 | 2,822,364 |
Retained earnings | 1,259,605 | 1,245,793 |
Treasury stock, at cost; 111,961,365 and 111,630,950 shares at June 30, 2020 and December 31, 2019, respectively | (1,355,626) | (1,352,910) |
Unallocated common stock held by the employee stock ownership plan | (76,768) | (78,266) |
Accumulated other comprehensive loss | (59,236) | (18,622) |
Total stockholders’ equity | 2,622,900 | 2,621,950 |
Total liabilities and stockholders’ equity | $ 27,194,148 | $ 26,698,766 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Debt securities held-to-maturity, estimated fair value | $ 1,262,808 | $ 1,190,104 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 361,869,872 | 359,070,852 |
Common stock, shares outstanding (shares) | 249,908,507 | 247,439,902 |
Treasury stock (shares) | 111,961,365 | 111,630,950 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest and dividend income: | ||||
Loans receivable and loans held-for-sale | $ 217,733 | $ 227,462 | $ 442,262 | $ 452,352 |
Securities: | ||||
Equity | 32 | 35 | 65 | 72 |
Government-sponsored enterprise obligations | 310 | 267 | 616 | 533 |
Mortgage-backed securities | 20,572 | 23,883 | 43,156 | 47,513 |
Municipal bonds and other debt | 3,276 | 2,734 | 6,651 | 5,256 |
Interest-bearing deposits | 294 | 609 | 1,134 | 1,144 |
Federal Home Loan Bank stock | 3,997 | 4,078 | 8,429 | 8,415 |
Total interest and dividend income | 246,214 | 259,068 | 502,313 | 515,285 |
Interest expense: | ||||
Deposits | 38,991 | 67,828 | 92,170 | 133,250 |
Borrowed funds | 25,236 | 32,072 | 54,873 | 60,189 |
Total interest expense | 64,227 | 99,900 | 147,043 | 193,439 |
Net interest income | 181,987 | 159,168 | 355,270 | 321,846 |
Provision for credit losses | 33,278 | (3,000) | 64,504 | 0 |
Net interest income after provision for credit losses | 148,709 | 162,168 | 290,766 | 321,846 |
Non-interest income | ||||
Fees and service charges | 1,376 | 5,654 | 7,402 | 10,989 |
Income on bank owned life insurance | 1,596 | 1,540 | 2,992 | 3,117 |
Gain on loans, net | 3,557 | 1,015 | 5,403 | 1,448 |
Gain (loss) on securities, net | 55 | (5,617) | 257 | (5,553) |
(Loss) gain on sale of other real estate owned, net | (89) | 281 | 651 | 505 |
Other income | 3,645 | 4,108 | 8,095 | 7,669 |
Total non-interest income | 10,140 | 6,981 | 24,800 | 18,175 |
Non-interest expense | ||||
Compensation and fringe benefits | 55,791 | 59,854 | 116,183 | 120,852 |
Advertising and promotional expense | 2,199 | 4,282 | 4,562 | 7,894 |
Office occupancy and equipment expense | 16,470 | 15,423 | 32,421 | 31,594 |
Federal deposit insurance premiums | 3,400 | 3,300 | 7,801 | 6,600 |
General and administrative | 593 | 692 | 1,127 | 1,176 |
Professional fees | 4,306 | 3,461 | 8,289 | 6,401 |
Data processing and communication | 9,908 | 7,642 | 17,700 | 15,641 |
Other operating expenses | 7,353 | 9,150 | 14,495 | 17,055 |
Total non-interest expenses | 100,020 | 103,804 | 202,578 | 207,213 |
Income before income tax expense | 58,829 | 65,345 | 112,988 | 132,808 |
Income tax expense | 16,218 | 18,721 | 30,865 | 38,026 |
Net income | $ 42,611 | $ 46,624 | $ 82,123 | $ 94,782 |
Basic earnings per share (usd per share) | $ 0.18 | $ 0.18 | $ 0.35 | $ 0.36 |
Diluted earnings per share (usd per share) | $ 0.18 | $ 0.18 | $ 0.35 | $ 0.36 |
Weighted average shares outstanding | ||||
Basic (shares) | 236,248,296 | 263,035,892 | 234,755,591 | 265,337,191 |
Diluted (shares) | 236,382,103 | 263,477,477 | 234,927,420 | 265,831,421 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 42,611 | $ 46,624 | $ 82,123 | $ 94,782 |
Other comprehensive (loss) income, net of tax: | ||||
Change in funded status of retirement obligations | 299 | 14 | 319 | 27 |
Unrealized (losses) gains on debt securities available-for-sale | (997) | 16,568 | 36,631 | 32,807 |
Accretion of loss on debt securities reclassified to held to maturity | 56 | 318 | 112 | 431 |
Reclassification adjustment for security losses included in net income | 0 | 4,221 | 0 | 4,221 |
Other-than-temporary impairment accretion on debt securities | 277 | 181 | 457 | 361 |
Net losses on derivatives | (7,485) | (29,038) | (78,133) | (44,689) |
Total other comprehensive loss | (7,850) | (7,736) | (40,614) | (6,842) |
Total comprehensive income | $ 34,761 | $ 38,888 | $ 41,509 | $ 87,940 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | Common stock | Additional paid-in capital | Retained earnings | Retained earningsCumulative Effect, Period Of Adoption, Adjustment | Treasury stock | Unallocated common stock held by ESOP | Accumulated other comprehensive loss |
Balance, beginning of period at Dec. 31, 2018 | $ 3,005,330 | $ 3,591 | $ 2,805,423 | $ 1,173,897 | $ (884,750) | $ (81,262) | $ (11,569) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 94,782 | 94,782 | |||||||
Other comprehensive loss, net of tax | (6,842) | (6,842) | |||||||
Purchase of treasury stock | (117,755) | (117,755) | |||||||
Treasury stock allocated to restricted stock plan | (8,011) | (68) | 8,079 | ||||||
Compensation cost for stock options and restricted stock | 9,566 | 9,566 | |||||||
Exercise of stock options | 659 | (286) | 945 | ||||||
Restricted stock forfeitures | 1,885 | (101) | (1,784) | ||||||
Cash dividend paid | (61,637) | (61,637) | |||||||
ESOP shares allocated or committed to be released | 2,772 | 1,274 | 1,498 | ||||||
Balance, end of period at Jun. 30, 2019 | $ 2,926,875 | 3,591 | 2,809,851 | 1,206,873 | (995,265) | (79,764) | (18,411) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||
Balance, beginning of period at Mar. 31, 2019 | $ 2,955,830 | 3,591 | 2,810,832 | 1,191,020 | (958,425) | (80,513) | (10,675) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 46,624 | 46,624 | |||||||
Other comprehensive loss, net of tax | (7,736) | (7,736) | |||||||
Purchase of treasury stock | (44,023) | (44,023) | |||||||
Treasury stock allocated to restricted stock plan | 0 | (6,500) | (118) | 6,618 | |||||
Compensation cost for stock options and restricted stock | 4,993 | 4,993 | |||||||
Exercise of stock options | 491 | (221) | 712 | ||||||
Restricted stock forfeitures | 0 | 154 | (7) | (147) | |||||
Cash dividend paid | (30,646) | (30,646) | |||||||
ESOP shares allocated or committed to be released | 1,342 | 593 | 749 | ||||||
Balance, end of period at Jun. 30, 2019 | 2,926,875 | 3,591 | 2,809,851 | 1,206,873 | (995,265) | (79,764) | (18,411) | ||
Balance, beginning of period at Dec. 31, 2019 | 2,621,950 | $ (8,491) | 3,591 | 2,822,364 | 1,245,793 | $ (8,491) | (1,352,910) | (78,266) | (18,622) |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 82,123 | 82,123 | |||||||
Other comprehensive loss, net of tax | (40,614) | (40,614) | |||||||
Common stock issued to finance acquisition | 20,881 | 28 | 20,853 | ||||||
Purchase of treasury stock | (3,361) | (3,361) | |||||||
Treasury stock allocated to restricted stock plan | (736) | (103) | 839 | ||||||
Compensation cost for stock options and restricted stock | 7,850 | 7,850 | |||||||
Restricted stock forfeitures | 197 | (3) | (194) | ||||||
Cash dividend paid | (59,714) | (59,714) | |||||||
ESOP shares allocated or committed to be released | 2,276 | 778 | 1,498 | ||||||
Balance, end of period at Jun. 30, 2020 | $ 2,622,900 | 3,619 | 2,851,306 | 1,259,605 | (1,355,626) | (76,768) | (59,236) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||
Balance, beginning of period at Mar. 31, 2020 | $ 2,594,758 | 3,591 | 2,826,288 | 1,247,028 | (1,353,246) | (77,517) | (51,386) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 42,611 | 42,611 | |||||||
Other comprehensive loss, net of tax | (7,850) | (7,850) | |||||||
Common stock issued to finance acquisition | 20,881 | 28 | 20,853 | ||||||
Purchase of treasury stock | (2,429) | (2,429) | |||||||
Treasury stock allocated to restricted stock plan | 0 | (36) | (13) | 49 | |||||
Compensation cost for stock options and restricted stock | 3,954 | 3,954 | |||||||
Cash dividend paid | (30,021) | (30,021) | |||||||
ESOP shares allocated or committed to be released | 996 | 247 | 749 | ||||||
Balance, end of period at Jun. 30, 2020 | $ 2,622,900 | $ 3,619 | $ 2,851,306 | $ 1,259,605 | $ (1,355,626) | $ (76,768) | $ (59,236) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Purchase of treasury stock (shares) | 298,977 | 3,829,780 | 383,366 | 10,038,159 |
Treasury stock allocated to restricted stock plan (shares) | 4,000 | 538,756 | 68,923 | 658,419 |
Cash dividend paid (usd per share) | $ 0.12 | $ 0.11 | $ 0.24 | $ 0.22 |
Restricted stock forfeitures (shares) | 12,267 | 15,973 | 149,333 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2017 | |
Cash flows from operating activities: | |||||
Net income | $ 42,611 | $ 46,624 | $ 82,123 | $ 94,782 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
ESOP and stock-based compensation expense | 10,126 | 12,338 | |||
Amortization of premiums and accretion of discounts on securities, net | 5,060 | 3,953 | |||
Amortization of premiums and accretion of fees and costs on loans, net | 2,885 | (2,983) | |||
Amortization of other intangible assets | 680 | 792 | |||
Amortization of debt modification costs and premium on borrowings | 1,132 | 0 | |||
Provision for credit losses | 33,278 | (3,000) | 64,504 | 0 | |
Loss from extinguishment of debt | 326 | 0 | |||
Depreciation and amortization of office properties and equipment | 10,671 | 9,356 | |||
(Gain) loss on securities, net | (55) | 5,617 | (257) | 5,553 | |
Mortgage loans originated for sale | (280,236) | (77,732) | |||
Proceeds from mortgage loan sales | 275,328 | 66,624 | |||
Gain on sales of mortgage loans, net | (5,062) | (1,229) | |||
Gain on sale of other real estate owned | 89 | (281) | (651) | (505) | |
Income on bank owned life insurance | (2,992) | (3,117) | |||
Amortization of lease right-of-use assets | 9,841 | 8,001 | |||
Increase in accrued interest receivable | (1,013) | (5,514) | |||
Deferred tax (benefit) expense | (16,903) | 3,414 | |||
Increase in other assets | (71,498) | (18,176) | |||
Decrease in other liabilities | (74,517) | (48,707) | |||
Net cash provided by operating activities | 9,547 | 46,850 | |||
Cash flows from investing activities: | |||||
Purchases of loans receivable | (60,000) | (216,419) | |||
Net payoffs (originations) of loans receivable | 819,559 | (195,937) | |||
Proceeds from disposition of loans receivable | 26,755 | 25,857 | |||
Gain on disposition of loans receivable | (341) | (219) | |||
Gain on disposition of leased equipment | (1,824) | 0 | |||
Net proceeds from sale of other real estate owned | 5,617 | 2,754 | |||
Proceeds from principal repayments/calls/maturities of debt securities available for sale | 411,671 | 162,787 | |||
Proceeds from sales of debt securities available for sale | 399,400 | 0 | 399,435 | ||
Proceeds from principal repayments/calls/maturities of debt securities held to maturity | 126,260 | 137,035 | |||
Purchases of equity securities | (45) | (47) | |||
Purchases of debt securities available for sale | (507,598) | (686,504) | |||
Purchases of debt securities held-to-maturity | (170,348) | (106,748) | |||
Proceeds from redemptions of Federal Home Loan Bank stock | 98,053 | 157,325 | |||
Purchases of Federal Home Loan Bank stock | (60,042) | (191,246) | |||
Purchases of office properties and equipment | (6,181) | (6,587) | |||
Cash received, net of cash consideration paid for acquisitions | 7,274 | $ 0 | |||
Net cash provided by (used in) investing activities | 688,810 | (518,514) | |||
Cash flows from financing activities: | |||||
Net increase in deposits | 1,137,083 | 64,202 | |||
Repayments of principal under finance leases | (784) | 0 | |||
Funds borrowed under other repurchase agreements | 0 | 197,606 | |||
Net (repayments) proceeds of borrowed funds | (1,211,326) | 450,450 | |||
Principal applied on affordable housing project advance | (78) | 0 | |||
Net increase (decrease) in advance payments by borrowers for taxes and insurance | 142 | (4,370) | |||
Dividends paid | (59,714) | (61,637) | |||
Exercise of stock options | 0 | 659 | |||
Purchase of treasury stock | (3,361) | (117,755) | |||
Net cash (used in) provided by financing activities | (138,038) | 529,155 | |||
Net increase in cash and cash equivalents | 560,319 | 57,491 | |||
Cash and cash equivalents at beginning of period | 174,915 | 196,891 | |||
Cash and cash equivalents at end of period | $ 735,234 | $ 254,382 | 735,234 | 254,382 | |
Non-cash investing activities: | |||||
Real estate acquired through foreclosure and other assets repossessed | 750 | 2,957 | |||
Cash paid during the year for: | |||||
Interest | 154,370 | 193,071 | |||
Income taxes | 6,218 | 13,824 | |||
Significant non-cash transactions: | |||||
Debt securities transferred from held-to-maturity to available-for-sale | 0 | 393,067 | |||
Right-of-use assets obtained in exchange for new lease liabilities | 4,140 | 1,791 | |||
Non-cash assets acquired: | |||||
Debt securities available-for-sale | 51,524 | 0 | |||
Debt securities held to maturity | 8,402 | 0 | |||
Loans receivable, net | 443,499 | 0 | |||
Office properties and equipment, net | 485 | 0 | |||
Accrued interest receivable | 1,283 | 0 | |||
Right of use assets - leases | 3,697 | 0 | |||
Deferred tax asset | 3,915 | 0 | |||
Intangible assets, net | 14,491 | 0 | |||
Other assets | 705 | 0 | |||
Total non-cash assets acquired | 528,001 | 0 | |||
Liabilities assumed: | |||||
Deposits | 489,881 | 0 | |||
Borrowed funds | 14,851 | 0 | |||
Advance payment by borrowers | 3,611 | 0 | |||
Other liabilities | 6,051 | 0 | |||
Total liabilities assumed | 514,394 | 0 | |||
Common stock issued for acquisitions | $ 20,881 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Principles | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles | Summary of Significant Accounting Principles Basis of Presentation The consolidated financial statements are comprised of the accounts of Investors Bancorp, Inc. and its wholly owned subsidiary, Investors Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries (collectively, the “Company”). In the opinion of management, all the adjustments (consisting of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for the three and six months ended June 30, 2020 are not necessarily indicative of the results of operations that may be expected for subsequent periods or the full year results. Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the preparation of the Form 10-Q. The consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s December 31, 2019 Annual Report on Form 10-K. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. Adoption of New Accounting Standards On January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The Company adopted ASU 2016-13 using a modified retrospective approach. Results for reporting periods beginning after January 1, 2020 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. At adoption, the Company increased its allowance for credit losses by $11.7 million , comprised of $12.7 million and $2.6 million , respectively, for unfunded commitments and held-to-maturity debt securities, partially offset by a decrease of $3.6 million for loans. Upon adoption the Company recorded a cumulative effect adjustment that reduced stockholders’ equity by $8.5 million , net of tax. Allowance for Credit Losses The allowance for credit losses includes both the allowance for loan and lease losses and the reserve for unfunded lending commitments and represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through the provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for loan and security losses is reported separately as contra-assets to loans and securities on the consolidated balance sheet. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated balance sheet in other liabilities. The provision for credit losses related to loans, unfunded commitments and debt securities is reported on the consolidated statement of income. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether the loans in a pool continue to exhibit similar risk characteristics as the other loans in the pool. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the allowance on an individual basis. The Company evaluates the segmentation at least annually to determine whether loans continue to share similar risk characteristics. Loans are charged off against the allowance when the Company believes the loan balances become uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages the risk of the type of credit. The Company’s segments for loans include multi-family, commercial real estate, commercial and industrial, construction, residential and consumer. The Company calculates estimated credit loss on its loan portfolio typically using a probability of default and loss given default quantitative model methodology. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. For a small portion of the loan portfolio, i.e. unsecured consumer loans, small business loans and loans to individuals, the Company utilizes a loss rate method to calculate the expected credit loss of that asset segment. The Company estimates the allowance for credit losses on loans using relevant available information from internal and external sources related to past events and current conditions as well as the incorporation of reasonable and supportable forecasts. The Company evaluates the use of multiple economic scenarios and the weighting of those scenarios on a quarterly basis. The scenarios that are chosen and the amount of weighting given to each scenario depend on a variety of factors including third party economists and firms, industry trends and other available published economic information. After the reasonable and supportable forecast period, the Company reverts to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company. Also included in the allowance for loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative method or the economic assumptions described above. For example, factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, and the legal and regulatory requirements, among other. Furthermore, the Company considers the inherent uncertainty in quantitative models that are built on historical data. Individually evaluated On a case-by-case basis, the Company may conclude a loan should be evaluated on an individual basis based on its disparate risk characteristics. The Company individually evaluates loans that meet the following criteria for expected credit loss, as the Company has determined that these loans generally do not share similar risk characteristics with other loans in the portfolio: • Commercial loans with an outstanding balance greater than $1.0 million and on non-accrual status; • Troubled debt restructured loans; and • Other commercial loans with greater than $1.0 million in outstanding principal, if management has specific information that it is probable they will not collect all principal amounts due under the contractual terms of the loan agreement. When the Company determines that the loan no longer shares similar risk characteristics of other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable, to ensure that the credit loss is not delayed until actual loss. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Acquired assets Acquired assets are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired asset is recorded depends on whether it has been classified as a Purchased Financial Asset with Credit Deterioration (“PCD”). PCD assets are assets acquired at a discount that is due, in part, to credit quality. PCD assets are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD assets is recorded through a gross-up effect, while the allowance for acquired non-PCD assets such as loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which assets are PCD and non-PCD can have a significant effect on the accounting for these assets. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans. Additionally, TDR identification for acquired loans (PCD and non-PCD) will be consistent with the TDR identification for originated loans. Allowance for Credit Losses on Debt Securities Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Management classifies the held-to-maturity portfolio into the following major security types: mortgage-backed residential securities, municipal bonds, trust preferred securities (“TruPs”) and other. Nearly all of the mortgage-backed securities in the Company's portfolio are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S government, are highly rated by major rating agencies and have a long history of no credit losses and therefore the expectation of non-payment is zero. Other securities consist primarily of investments in pooled trust preferred securities. At each reporting period, the Company evaluates whether the securities in a segment continue to exhibit similar risk characteristics as the other securities in the segment. If the risk characteristics of a security change, such that they are no longer similar to other securities in the segment, the Company will evaluate the security with a different segment that shares more similar risk characteristics. In estimating the net amount expected to be collected for mortgage-backed residential securities and municipal bonds, a range of historical losses method is utilized. In estimating the net amount expected to be collected for TruPs, the Company employs a single scenario forecast methodology. The scenario is informed by historical industry default data as well as current and near term operating conditions for the banks and other financial institutions that are the underlying issuers. In addition, prepayment assumptions are included in the analysis of the individually assessed TruPs applied at the collateral level. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company is required to include the unfunded commitment that is expected to be funded in the future within the allowance calculation. The Company participates in lending that results in an off-balance sheet unfunded commitment balance. The Company currently underwrites funding commitments with conditionally cancelable language. To determine the expected funding balance remaining, the Company uses a historical utilization rate for each of the segments to calculate the expected commitment balance. The reserve percentage for each respective loan portfolio is applied to the remaining unused portion of the expected commitment balance and the expected funded commitment in determining the allowance for credit loss on off-balance sheet credit exposures. Section 4013 of the CARES Act The Company implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Company elected to not apply troubled debt restructuring classification to any COVID-19 related loan modifications that were performed after March 1, 2020 to borrowers who were current as of December 31, 2019. Accordingly, these modifications were not classified as troubled debt restructurings (“TDRs”). In addition, for loans modified in response to the COVID-19 pandemic that did not meet the above criteria (e.g., current payment status at December 31, 2019), the Company applied the guidance included in an interagency statement issued by the bank regulatory agencies. This guidance states that loan modifications performed in light of the COVID-19 pandemic, including loan payment deferrals that are up to six months in duration, that were granted to borrowers who were current as of the implementation date of a loan modification program or modifications granted under government mandated modification programs, are not TDRs. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and non-accrual status has not been impacted during the deferral period. Deferrals consist mainly of 90-day principal and interest deferral with the ability to extend an additional 90-day period at the Bank’s option. Interest income has continued to be recognized over the contractual life of the loan. At June 30, 2020, loans with an aggregate outstanding balance of approximately $4.07 billion were in COVID-19 related deferment. For the three months ended June 30, 2020, accrued and unpaid interest for loans on deferral totaled $31.5 million . |
Stock Transactions
Stock Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stock Transactions | Stock Transactions Stock Repurchase Program On October 25, 2018, the Company announced its fourth share repurchase program, which authorized the purchase of 10% of its publicly-held outstanding shares of common stock, or 28,886,780 shares. The fourth program commenced immediately upon completion of the third program on December 10, 2018 and remains the Company’s current program as of June 30, 2020 . During the six months ended June 30, 2020 , the Company purchased 383,366 shares at a cost of approximately $3.4 million , or $8.77 per share. All shares purchased during the six months ended June 30, 2020 were purchased in connection with the vesting of shares of restricted stock under our 2015 Equity Incentive Plan and the withholding of shares to pay income taxes. These shares are repurchased pursuant to the terms of the 2015 Equity Incentive Plan and therefore are not part of the Company’s repurchase program. The changes in the components of stockholders’ equity for the three months ended June 30, 2020 and 2019 are as follows: Common stock Additional paid-in capital Retained earnings Treasury stock Unallocated common stock held by ESOP Accumulated other comprehensive loss Total stockholders’ equity (In thousands) Balance at March 31, 2019 $ 3,591 2,810,832 1,191,020 (958,425 ) (80,513 ) (10,675 ) 2,955,830 Net income — — 46,624 — — — 46,624 Other comprehensive loss, net of tax — — — — — (7,736 ) (7,736 ) Purchase of treasury stock (3,829,780 shares) — — — (44,023 ) — — (44,023 ) Treasury stock allocated to restricted stock plan (538,756 shares) — (6,500 ) (118 ) 6,618 — — — Compensation cost for stock options and restricted stock — 4,993 — — — — 4,993 Exercise of stock options — (221 ) — 712 — — 491 Restricted stock forfeitures (12,267 shares) — 154 (7 ) (147 ) — — — Cash dividend paid ($0.11 per common share) — — (30,646 ) — — — (30,646 ) ESOP shares allocated or committed to be released — 593 — — 749 — 1,342 Balance at June 30, 2019 $ 3,591 2,809,851 1,206,873 (995,265 ) (79,764 ) (18,411 ) 2,926,875 Balance at March 31, 2020 $ 3,591 2,826,288 1,247,028 (1,353,246 ) (77,517 ) (51,386 ) 2,594,758 Net income — — 42,611 — — — 42,611 Other comprehensive loss, net of tax — — — — — (7,850 ) (7,850 ) Common stock issued to finance acquisition 28 20,853 — — — — 20,881 Purchase of treasury stock (298,977 shares) — — — (2,429 ) — — (2,429 ) Treasury stock allocated to restricted stock plan (4,000 shares) — (36 ) (13 ) 49 — — — Compensation cost for stock options and restricted stock — 3,954 — — — — 3,954 Cash dividend paid ($0.12 per common share) — — (30,021 ) — — — (30,021 ) ESOP shares allocated or committed to be released — 247 — — 749 — 996 Balance at June 30, 2020 $ 3,619 2,851,306 1,259,605 (1,355,626 ) (76,768 ) (59,236 ) 2,622,900 |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Gold Coast Bancorp As of the close of business on April 3, 2020, the Company completed its acquisition of Gold Coast Bancorp (“Gold Coast”) pursuant to the Agreement and Plan of Merger, dated as of July 24, 2019 by and between the Company and Gold Coast. As a result of the completion of the acquisition, the Company issued approximately 2.8 million shares to the former stockholders of Gold Coast and paid approximately $31.0 million in cash to the former stockholders of Gold Coast. Under the terms of the merger agreement, 50% of the common shares of Gold Coast were converted into Investors Bancorp common stock and the remaining 50% was exchanged for cash. For each share of Gold Coast Bancorp common stock, Gold Coast shareholders were given an option to receive either (i) 1.422 shares of Investors Bancorp common stock, $0.01 par value per share, (ii) a cash payment of $15.75 , or (iii) a combination of Investors Bancorp common stock and cash. The foregoing was subject to proration to ensure that, in the aggregate, 50% of Gold Coast’s shares would be converted into Investors Bancorp common stock. The acquisition was accounted for under the acquisition method of accounting as prescribed by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”, as amended. Under this method of accounting, the purchase price has been allocated to the respective assets acquired based on their estimated fair values, net of applicable income tax effects. The excess cost over fair value of assets acquired, or $12.0 million , has been recorded as goodwill. The acquired portfolio was fair valued on the date of acquisition based on guidance from ASC 820-10 which defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The valuation methods utilized took into consideration adjustments for interest rate risk, funding cost, servicing cost, residual risk, credit and liquidity risk. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for Gold Coast, net of cash consideration paid: At April 3, 2020 (In millions) Cash and cash equivalents $ 7.3 Debt securities available-for-sale 51.5 Debt securities held to maturity 8.4 Loans receivable, net 443.5 Accrued interest receivable 1.3 Right-of-use assets 3.7 Net deferred tax asset 3.9 Intangible assets 14.5 Other assets 1.2 Total assets acquired 535.3 Deposits 489.9 Borrowed funds 14.9 Other liabilities 9.7 Total liabilities assumed 514.5 Net assets acquired $ 20.8 As the Company finalizes its analysis of these assets, there may be adjustments to the recorded carrying values. Any adjustments to carrying values will be recorded in goodwill. The calculation of goodwill is subject to change for up to one year after closing date of the transaction as additional information relative to closing date estimates and uncertainties becomes available. Financial assets acquired in a business combination after January 1, 2020 are recorded in accordance with ASC Topic 326, after which acquired assets are separated into two types. PCD assets are acquired assets that, as of the acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. Non-PCD assets are acquired assets that have experienced no or insignificant deterioration in credit quality since origination. To distinguish between the two types of acquired assets, the Company evaluates risk characteristics that have been determined to be indicators of deteriorated credit quality. In the case of loans, the determining criteria may involve general characteristics, such as loan payment history or changes in creditworthiness since the loan was originated, while others are relevant to recent economic conditions, such as borrowers in industries impacted by the pandemic. In its acquisition of Gold Coast, the Company has purchased loans which have been determined to be PCD. The carrying amount of those loans was as follows: At April 3, 2020 (In millions) Purchase price of loans at acquisition $ 244.7 Allowance for credit losses at acquisition 4.2 Non-credit discount (premium) at acquisition 2.6 Par value of acquired loans at acquisition $ 251.5 There were no PCD securities in the acquisition. Fair Value Measurement of Assets Acquired and Liabilities Assumed Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the Gold Coast acquisition based on guidance from ASC 820-10 which defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Securities . The securities acquired are bought and sold in active markets. The estimated fair values of securities were calculated using external third party broker opinions of the market values. Due to the instability of the market at the time of acquisition as well as the odd lot position sizes of the securities, the Company reviewed the data and assumptions used in pricing the securities by third-parties and made qualitative adjustments to reflect the odd lot size of the securities and the price that would be received in an orderly transaction. Loans. The estimated fair values of the loan portfolio generally consider adjustments for interest rate risk, required funding costs, servicing costs, prepayments, credit and liquidity. Level 3 inputs were utilized to determine the fair value of the acquired loan portfolio and included the use of present value techniques employing cash flow estimates and incorporated assumptions that market participants would use in estimating fair values. In instances where reliable market information was not available, the Company used its own assumptions in an effort to determine fair value. The primary approach to determining the fair value of the loan portfolio was a discounted cash flow methodology that considered factors including the type of loan, underlying collateral, classification status or grade, interest rate structure (fixed or variable interest rate), and remaining term. For the non-credit component, loans were grouped together according to similar characteristics when applying the various valuations techniques. For the credit component, loans were also grouped based on whether they had more than insignificant deterioration in credit since origination (purchase credit deteriorated “PCD” as defined by ASC 326-20). The expected life of loan loss estimates were calculated based on an annual loss rate developed by using the historical annual average charge-off percentages for New York institutions as a proxy for how a market participant acquirer would value the portfolio. Additionally, a qualitative credit adjustment was applied to the historical annual loss rates, due to COVID-19 and the uncertainty of future losses. Deposits / Core Deposit Intangible. The core deposit intangible represents the value assigned to the stable and below market rate funding sources within the acquired deposit base; typically demand deposits, interest checking, money market and savings accounts. The core deposit intangible value represents the value of the relationships with deposit customers as a below market rate funding source. The fair value was based on a discounted cash flow methodology that gave appropriate consideration to expected deposit attrition rates, net maintenance costs of the deposit base, projected interest costs and the alternative cost of funds. Certificates of deposit (time deposits) are not considered to be core deposits as they are less stable and do not have an “all-in” favorable funding advantage to the alternative cost of funds. The fair value of certificates of deposit represents the present value of the certificates’ expected contractual payments discounted by market rates for similar certificates and is determined utilizing Level 2 inputs. Borrowed Funds. A discounted cash flow approach was used to determine the fair value of the debt acquired. The fair value of the liability represents the present value of the expected payments discounted using a risk adjusted discount rate. The discount rate was developed based on comparable rated securities, as that backed by companies with similar credit ratings as the Company. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a summary of our earnings per share calculations and reconciliation of basic to diluted earnings per share. For the Three Months Ended June 30, 2020 2019 (Dollars in thousands, except per share data) Earnings for basic and diluted earnings per common share Earnings applicable to common stockholders $ 42,611 $ 46,624 Shares Weighted-average common shares outstanding - basic 236,248,296 263,035,892 Effect of dilutive common stock equivalents (1) 133,807 441,585 Weighted-average common shares outstanding - diluted 236,382,103 263,477,477 Earnings per common share Basic $ 0.18 $ 0.18 Diluted $ 0.18 $ 0.18 (1) For the three months ended June 30, 2020 and 2019 , there were 7,442,906 and 10,749,549 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. For the Six Months Ended June 30, 2020 2019 (Dollars in thousands, except per share data) Earnings for basic and diluted earnings per common share Earnings applicable to common stockholders $ 82,123 $ 94,782 Shares Weighted-average common shares outstanding - basic 234,755,591 265,337,191 Effect of dilutive common stock equivalents (1) 171,829 494,230 Weighted-average common shares outstanding - diluted 234,927,420 265,831,421 Earnings per common share Basic $ 0.35 $ 0.36 Diluted $ 0.35 $ 0.36 (1) For the six months ended June 30, 2020 and 2019 , there were 6,378,766 and 10,705,374 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Equity Securities Equity securities are reported at fair value on the Company’s Consolidated Balance Sheets. The Company’s portfolio of equity securities had an estimated fair value of $6.2 million and $6.0 million as of June 30, 2020 and December 31, 2019 , respectively. Realized gains and losses from sales of equity securities as well as changes in fair value of equity securities still held at the reporting date are recognized in the Consolidated Statements of Income. The following table presents the disaggregated net gains on equity securities reported in the Consolidated Statements of Income: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Net gains recognized on equity securities $ 28 71 107 135 Less: Net gains recognized on equity securities sold — — — — Unrealized gains recognized on equity securities $ 28 71 107 135 Debt Securities The following tables present the carrying value, gross unrealized gains and losses, and estimated fair value for available-for-sale debt securities and the amortized cost, net unrealized losses, carrying value, gross unrecognized gains and losses, estimated fair value and allowance for credit losses for held-to-maturity debt securities as of the dates indicated. At June 30, 2020 Carrying value Gross unrealized gains Gross unrealized losses Estimated fair value (In thousands) Available-for-sale: Debt securities: Government-sponsored enterprises $ 4,598 267 33 4,832 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 1,240,918 34,920 13 1,275,825 Federal National Mortgage Association 1,267,304 44,212 379 1,311,137 Government National Mortgage Association 286,873 8,043 143 294,773 Total mortgage-backed securities available-for-sale 2,795,095 87,175 535 2,881,735 Total debt securities available-for-sale $ 2,799,693 87,442 568 2,886,567 At June 30, 2020 Amortized cost Net unrealized losses (1) Carrying value Gross unrecognized gains (2) Gross unrecognized losses (2) Estimated fair value (In thousands) Held-to-maturity: Debt securities: Government-sponsored enterprises $ 51,884 — 51,884 3,477 — 55,361 Municipal bonds 238,725 — 238,725 9,519 — 248,244 Corporate and other debt securities 110,163 14,150 96,013 14,742 2,907 107,848 Total debt securities held-to-maturity 400,772 14,150 386,622 27,738 2,907 411,453 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 266,073 98 265,975 10,257 — 276,232 Federal National Mortgage Association 491,267 261 491,006 23,564 42 514,528 Government National Mortgage Association 58,042 — 58,042 2,553 — 60,595 Total mortgage-backed securities held-to-maturity 815,382 359 815,023 36,374 42 851,355 Total debt securities held-to-maturity $ 1,216,154 14,509 1,201,645 64,112 2,949 1,262,808 Allowance for credit losses 3,244 Total debt securities held-to-maturity, net of allowance for credit losses 1,198,401 (1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the previously recorded other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities. (2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet. Effective January 1, 2020, held-to-maturity debt securities are evaluated for credit losses to determine if an allowance is necessary. Any allowance required is recorded through the provision for credit losses. At December 31, 2019 Carrying value Gross unrealized gains Gross unrealized losses Estimated fair value (In thousands) Available-for-sale: Mortgage-backed securities: Federal Home Loan Mortgage Corporation $ 1,223,587 17,528 736 1,240,379 Federal National Mortgage Association 1,159,446 18,917 314 1,178,049 Government National Mortgage Association 273,676 3,333 47 276,962 Total debt securities available-for-sale $ 2,656,709 39,778 1,097 2,695,390 At December 31, 2019 Amortized cost Net unrealized losses (1) Carrying value Gross unrecognized gains (2) Gross unrecognized losses (2) Estimated fair value (In thousands) Held-to-maturity: Debt securities: Government-sponsored enterprises $ 58,624 — 58,624 188 500 58,312 Municipal bonds 143,151 — 143,151 3,797 43 146,905 Corporate and other debt securities 87,322 14,785 72,537 26,158 — 98,695 Total debt securities held-to-maturity 289,097 14,785 274,312 30,143 543 303,912 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 262,079 134 261,945 3,533 129 265,349 Federal National Mortgage Association 542,583 373 542,210 7,959 307 549,862 Government National Mortgage Association 70,348 — 70,348 633 — 70,981 Total mortgage-backed securities held-to-maturity 875,010 507 874,503 12,125 436 886,192 Total debt securities held-to-maturity $ 1,164,107 15,292 1,148,815 42,268 979 1,190,104 (1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities. (2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet. Gross unrealized losses on debt securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019 , were as follows: June 30, 2020 Less than 12 months 12 months or more Total Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses (In thousands) Available-for-sale: Debt securities: Government-sponsored enterprises $ 2,429 33 — — 2,429 33 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 34,659 13 — — 34,659 13 Federal National Mortgage Association 100,489 379 — — 100,489 379 Government National Mortgage Association 48,150 143 — — 48,150 143 Total mortgage-backed securities available-for-sale 183,298 535 — — 183,298 535 Total debt securities available-for-sale 185,727 568 — — 185,727 568 Held-to-maturity: Debt securities: Corporate and other debt securities 32,610 2,907 — — 32,610 2,907 Mortgage-backed securities: Federal National Mortgage Association 5,073 42 — — 5,073 42 Total debt securities held-to-maturity 37,683 2,949 — — 37,683 2,949 Total $ 223,410 3,517 — — 223,410 3,517 December 31, 2019 Less than 12 months 12 months or more Total Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses (In thousands) Available-for-sale: Mortgage-backed securities: Federal Home Loan Mortgage Corporation $ 215,160 736 — — 215,160 736 Federal National Mortgage Association 80,298 297 12,972 17 93,270 314 Government National Mortgage Association 20,078 47 — — 20,078 47 Total debt securities available-for-sale 315,536 1,080 12,972 17 328,508 1,097 Held-to-maturity: Debt securities: Government-sponsored enterprises 31,696 500 — — 31,696 500 Municipal bonds 23,596 43 — — 23,596 43 Total debt securities held-to-maturity 55,292 543 — — 55,292 543 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 20,860 64 11,065 65 31,925 129 Federal National Mortgage Association 7,911 52 37,316 255 45,227 307 Total mortgage-backed securities held-to-maturity 28,771 116 48,381 320 77,152 436 Total debt securities held-to-maturity 84,063 659 48,381 320 132,444 979 Total $ 399,599 1,739 61,353 337 460,952 2,076 We conduct periodic reviews of individual securities to assess whether an allowance for credit loss is required. Held-to-maturity debt securities are evaluated for expected credit loss utilizing a historical loss methodology, or a discounted cash flows approach which is assessed against the book value of the investment security excluding accrued interest. Refer to Note 1, Summary of Significant Accounting Principles, for additional information. Available-for-sale debt 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 statement of income when management intends to sell (or may be required to sell) the securities before they recover in value. The majority of our held-to-maturity debt securities portfolio is comprised of agency mortgage-backed securities. For agency (FNMA, FGLMC and GNMA) mortgage-backed securities, and other agency debt instruments, the expectation of non-payment is zero. The timely payment of principal and interest on FNMA and FGLMC securities is guaranteed by each corporation. As each of these corporations is in conservatorship with the federal government, the payment guarantees are considered implicit obligations of the US government. GNMA securities carry the full faith and credit guarantee of the federal government. Because of the existence of government guarantees of timely payment of principal and interest, expected losses on agency securities are assumed to be zero. Changes in the fair value of agency securities in this portfolio are primarily driven by changes in interest rates and other non-credit related factors. At June 30, 2020 , our held-to-maturity debt securities portfolio had an allowance for credit losses of $3.2 million . The allowance is related to non-agency corporate and other debt securities. The majority of the allowance is related to a portfolio of collateralized debt obligations backed by pooled TruPs, principally issued by banks and to a lesser extent insurance companies and real estate investment trusts. At June 30, 2020 , the TruPs had a carrying value before allowance for credit losses and estimated fair value of $48.5 million and $60.6 million , respectively. The Company does not have the intent to sell these securities and does not believe it is more likely than not that the Company will be required to sell these securities before a recovery of amortized cost. At June 30, 2020 , the available-for-sale debt securities portfolio was almost entirely comprised of agency securities. As such, the unrealized losses in this portfolio are primarily driven by changes in interest rates and other non-credit related factors. The Company does not have the intent to sell these securities and does not believe it is more likely than not that the Company will be required to sell these securities before a recovery of amortized cost. As of June 30, 2020 , there is no allowance for credit losses related to the Company’s available-for-sale debt securities as the decline in fair value did not result from credit issues. For additional information about the review of securities under previous other-than-temporary impairment guidance, refer to page 82 in Note 4 to the consolidated financial statements included under Item 15. Exhibits and Financial Statement Schedules in the Company’s December 31, 2019 Form 10-K. Debt securities with a carrying value before allowance for credit losses of $1.38 billion and an estimated fair value of $1.42 billion are pledged to secure borrowings and municipal deposits. The contractual maturities of the Bank’s mortgage-backed securities are generally less than 20 years with effective lives expected to be shorter due to prepayments. Expected maturities may differ from contractual maturities due to underlying loan prepayments or early call privileges of the issuer; therefore, mortgage-backed securities are not included in the following table. Excluding the allowance for credit losses, the amortized cost and estimated fair value of debt securities other than mortgage-backed securities at June 30, 2020 , by contractual maturity, are shown below. June 30, 2020 Carrying value Estimated fair value (In thousands) Due in one year or less $ 55,512 55,512 Due after one year through five years 10,397 10,516 Due after five years through ten years 60,761 62,734 Due after ten years 259,952 282,691 Total $ 386,622 411,453 Realized Gains and Losses Gains and losses on the sale of all securities are determined using the specific identification method. For the three and six months ended June 30, 2020 , there were no sales of equity or debt securities; however, the Company received proceeds of $16.5 million from the call of a held-to-maturity security which resulted in a gain of $124,000 . The Company recognized net unrealized gains on equity securities of $28,000 and $107,000 , respectively, for the three and six months ended June 30, 2020 . For the three and six months ended June 30, 2019 , the Company received proceeds of $399.4 million on securities sold from the debt securities available-for-sale portfolio resulting in a loss of $5.7 million recognized in non-interest income. Proceeds from the sale were reinvested in higher yielding debt securities. There were no sales of equity securities or debt securities held-to-maturity for the three and six months ended June 30, 2019 . The Company recognized net unrealized gains on equity securities of $71,000 and $135,000 , respectively, for the three and six months ended June 30, 2019 . |
Loans Receivable, Net
Loans Receivable, Net | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans Receivable, Net | Loans Receivable, Net The Company adopted the CECL methodology for measuring credit losses as of January 1, 2020. All disclosures as of and for the three and six months ended June 30, 2020 are presented in accordance with Topic 326. The Company did not recast comparative financial periods and has presented those disclosures under previously applicable GAAP. The detail of the loan portfolio as of June 30, 2020 and December 31, 2019 was as follows: June 30, December 31, (In thousands) Multi-family loans $ 7,377,929 7,813,236 Commercial real estate loans 4,873,353 4,831,347 Commercial and industrial loans 3,428,916 2,951,306 Construction loans 304,460 262,866 Total commercial loans 15,984,658 15,858,755 Residential mortgage loans 4,702,957 5,144,718 Consumer and other loans 674,392 699,796 Total loans 21,362,007 21,703,269 Deferred fees, premiums and other, net (1) (10,044 ) 907 Allowance for credit losses (273,319 ) (228,120 ) Net loans $ 21,078,644 21,476,056 (1) Included in deferred fees and premiums are accretable purchase accounting adjustments in connection with loans acquired and an adjustment to the carrying amount of the residential loans hedged. The Company has lending policies and procedures that provide target market, underwriting and other criteria for identified lending segments to codify the level of credit risk the Company is willing to accept. Approval authority levels are delegated to qualified individuals and approval bodies for the extension of credit within the guidance of these policies and procedures. In addition, the Company maintains an independent loan review department that reviews and validates risk assessment on a continual basis. The Company assigns ratings to borrowers and transactions based on the assessment of a borrower’s ability to service their debt based on relevant information such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. In connection with the adoption of Topic 326 on January 1, 2020, the Company implemented new risk rating models for borrowers and transactions within its commercial loan portfolio. The risk rating methodology transitioned to a dual risk rating framework which bifurcates ratings into probability of default (PD) and loss given default (LGD). Relevant risks are evaluated prior to approving a transaction to determine if the transaction is within the Company’s risk appetite and the appropriate rating. Strong credit analysis requires current, reliable financial information and documented assessment of the customer’s: • ability to perform in accordance with the terms of the credit, including adherence to covenants; • assets and liabilities, liquidity, net worth, and contingent and other off-balance sheet items; • tax liabilities; • cash reserves and ability to convert assets to cash; • income statement and the sources, level, stability, and quality of earnings: • projected performance, sensitized for stressed circumstances; and • industry performance relative to peers and industry. Each commercial credit facility is assigned a PD and LGD rating for the purpose of informing a credit decision, facilitating the determination of the expected level of credit loss and other portfolio management activities (as well as relationship profitability). The dual risk rating framework and risk rating methodologies allow for consistent determination of risk across the Commercial business as indicated by the risk rating assigned. The methodology used by the Bank applies the same criteria for identification of a credit as for the regulatory definitions of risk ratings: Pass - “Pass” assets are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Watch - A “Watch” asset has all the characteristics of a Pass asset but warrants more than the normal level of supervision. These loans may require more detailed reporting to management because some aspects of underwriting may not conform to policy or adverse events may have affected or could affect the cash flow or ability to continue operating profitably, provided, however, the events do not constitute an undue credit risk. Residential and consumer loans delinquent 30 - 59 days are considered watch if not a troubled debt restructuring (“TDR”). Special Mention - A “Special Mention” asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Residential and consumer loans delinquent 60 - 89 days are considered special mention if not a TDR. Substandard - A “Substandard” asset is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must 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. Residential and consumer loans delinquent 90 days or greater as well as TDRs are considered substandard. Doubtful - An asset classified “Doubtful” has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. Loss - An asset or portion thereof, classified “Loss” is considered uncollectible and of such little value that its continuance on the institution’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. This classification does not necessarily mean that an asset has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur. As such, it is not practical or desirable to defer the write-off. The following table presents the risk category of loans as of June 30, 2020 by class of loan and vintage year: Term Loans by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Total (In thousands) Multi-family Pass $ 365,777 711,763 1,384,829 833,115 1,762,574 1,450,948 9,751 6,518,757 Watch 13,160 21,171 107,311 104,589 149,425 58,043 1,700 455,399 Special mention 4,595 — 7,465 3,310 77,663 55,343 — 148,376 Substandard — — — 9,455 93,115 151,446 1,381 255,397 Total Multi-family 383,532 732,934 1,499,605 950,469 2,082,777 1,715,780 12,832 7,377,929 Commercial real estate Pass 193,001 861,323 765,976 519,365 965,191 985,225 25,409 4,315,490 Watch 10,237 38,913 35,808 31,466 120,624 29,793 1,885 268,726 Special mention — — 2,511 17,993 45,067 44,774 5,534 115,879 Substandard — 1,000 4,649 26,549 52,915 88,145 — 173,258 Total Commercial real estate 203,238 901,236 808,944 595,373 1,183,797 1,147,937 32,828 4,873,353 Commercial and industrial Pass 644,002 709,236 361,615 174,106 413,043 234,237 215,366 2,751,605 Watch 31,947 127,673 56,168 82,914 31,107 31,816 30,133 391,758 Special mention — 26,265 2,616 26,424 28,854 54,555 6,470 145,184 Substandard 3,250 5,511 62,411 4,655 28,456 21,702 14,384 140,369 Total Commercial and industrial 679,199 868,685 482,810 288,099 501,460 342,310 266,353 3,428,916 Construction Pass 20,953 53,744 39,970 — — — 156,408 271,075 Watch 9,523 — — — — — 11,732 21,255 Special mention — — — — — — — — Substandard — — — — — — 12,130 12,130 Total Construction 30,476 53,744 39,970 — — — 180,270 304,460 Residential mortgage Pass 188,712 605,763 592,532 713,647 654,831 1,881,016 — 4,636,501 Watch 112 — 1,048 514 63 7,328 — 9,065 Special mention — — 1,164 312 630 2,234 — 4,340 Substandard — 1,523 2,010 443 839 48,134 102 53,051 Total residential mortgage 188,824 607,286 596,754 714,916 656,363 1,938,712 102 4,702,957 Consumer and other Pass 2,433 8,815 7,170 9,328 13,725 62,461 553,837 657,769 Watch — 134 — — 117 514 10,260 11,025 Special mention — — — — — 177 2,969 3,146 Substandard — — — — 123 1,738 591 2,452 Total Consumer and other 2,433 8,949 7,170 9,328 13,965 64,890 567,657 674,392 Total $ 1,487,702 3,172,834 3,435,253 2,558,185 4,438,362 5,209,629 1,060,042 21,362,007 The following table presents the risk category of loans as of December 31, 2019 by class of loan: Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Commercial loans: Multi-family $ 6,326,412 942,438 167,748 376,638 — — 7,813,236 Commercial real estate 4,023,642 489,514 118,426 199,765 — — 4,831,347 Commercial and industrial 2,031,148 693,397 111,389 115,372 — — 2,951,306 Construction 169,236 75,319 — 18,311 — — 262,866 Total commercial loans 12,550,438 2,200,668 397,563 710,086 — — 15,858,755 Residential mortgage 5,074,334 14,414 5,429 50,541 — — 5,144,718 Consumer and other 687,302 9,157 1,174 2,163 — — 699,796 Total $ 18,312,074 2,224,239 404,166 762,790 — — 21,703,269 In the absence of other intervening factors, loans granted payment deferrals related to COVID-19 are not reported as past due or placed on non-accrual status provided the borrowers have met the criteria in the CARES Act or otherwise have met the criteria included in an interagency statement issued by bank regulatory agencies. See Note 1, Summary of Significant Accounting Principles . The following tables present the payment status of the recorded investment in past due loans as of June 30, 2020 and December 31, 2019 by class of loans: June 30, 2020 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 25,795 19,139 46,970 91,904 7,286,025 7,377,929 Commercial real estate 11,420 3,328 5,143 19,891 4,853,462 4,873,353 Commercial and industrial 7,513 1,178 7,588 16,279 3,412,637 3,428,916 Construction — — — — 304,460 304,460 Total commercial loans 44,728 23,645 59,701 128,074 15,856,584 15,984,658 Residential mortgage 9,835 4,588 31,947 46,370 4,656,587 4,702,957 Consumer and other 11,084 3,147 1,769 16,000 658,392 674,392 Total $ 65,647 31,380 93,417 190,444 21,171,563 21,362,007 December 31, 2019 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 45,606 1,946 22,055 69,607 7,743,629 7,813,236 Commercial real estate 7,958 525 3,787 12,270 4,819,077 4,831,347 Commercial and industrial 7,774 2,767 5,053 15,594 2,935,712 2,951,306 Construction — — — — 262,866 262,866 Total commercial loans 61,338 5,238 30,895 97,471 15,761,284 15,858,755 Residential mortgage 16,980 6,195 27,729 50,904 5,093,814 5,144,718 Consumer and other 9,157 1,174 1,330 11,661 688,135 699,796 Total $ 87,475 12,607 59,954 160,036 21,543,233 21,703,269 The following table presents non-accrual loans at the date indicated: June 30, 2020 December 31, 2019 # of loans Amount # of loans Amount (Dollars in thousands) Non-accrual: Multi-family 14 $ 48,363 8 $ 23,322 Commercial real estate 22 12,289 22 11,945 Commercial and industrial 29 15,627 18 12,482 Construction — — — — Total commercial loans 65 76,279 48 47,749 Residential mortgage and consumer 255 50,564 260 47,566 Total non-accrual loans 320 $ 126,843 308 $ 95,315 The Company recognized $818,000 of interest income on non-accrual loans during the six months ended June 30, 2020 . Loans which meet certain criteria are individually evaluated as part of the process of calculating the allowance for credit losses. The evaluation is determined on an individual basis using the present value of expected cash flows or the fair value of the collateral as of the reporting date. When management determines that the fair value of collateral securing a collateral dependent loan inadequately covers the balance of net principal, the net principal balance is written down to the fair value of the collateral, net of estimated selling costs as applicable, rather than assigning an allowance. See Note 16, Fair Value Measurements , for information regarding the valuation process for collateral dependent loans. The following table presents individually evaluated collateral-dependent loans by class of loans at the date indicated: June 30, 2020 Real Estate Other Total (Dollars in thousands) Multi-family $ 41,911 — 41,911 Commercial real estate 6,697 — 6,697 Commercial and industrial 4,369 9,711 14,080 Construction — — — Total commercial loans 52,977 9,711 62,688 Residential mortgage and consumer 25,724 114 25,838 Total collateral-dependent loans $ 78,701 9,825 88,526 Included in the non-accrual tables above are TDR loans whose payment status is current, but the Company has classified as non-accrual as the loans have not maintained their current payment status for six consecutive months under the restructured terms and therefore do not meet the criteria for accrual status. As of June 30, 2020 and December 31, 2019 , these loans are comprised of the following: June 30, 2020 December 31, 2019 # of loans Amount # of loans Amount (Dollars in thousands) TDR with payment status current classified as non-accrual: Commercial real estate 2 $ 3,631 2 $ 2,360 Residential mortgage and consumer 33 5,758 25 4,218 Total TDR with payment status current classified as non-accrual 35 $ 9,389 27 $ 6,578 The following table presents TDR loans which were also 30 - 89 days delinquent and classified as non-accrual at the dates indicated: June 30, 2020 December 31, 2019 # of loans Amount # of loans Amount (Dollars in thousands) TDR 30-89 days delinquent classified as non-accrual: Residential mortgage and consumer 8 $ 1,079 18 $ 3,331 Total TDR 30-89 days delinquent classified as non-accrual 8 $ 1,079 18 $ 3,331 The Company has no loans past due 90 days or more delinquent that are still accruing interest. Troubled Debt Restructurings On a case-by-case basis, the Company may agree to modify the contractual terms of a borrower’s loan to remain competitive and assist customers who may be experiencing financial difficulty, as well as preserve the Company’s position in the loan. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a TDR. Substantially all of our TDR loan modifications involve lowering the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan, or a combination of these two methods. These modifications rarely result in the forgiveness of principal or accrued interest. In addition, we frequently obtain additional collateral or guarantor support when modifying commercial loans. Restructured loans remain on non-accrual status until there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. Consistent with the CARES Act and interagency guidance which allows temporary relief for current borrowers affected by COVID-19, we are working with borrowers and granting certain modifications through programs related to COVID-19 relief. At June 30, 2020, loans with an aggregate outstanding balance of approximately $4.07 billion have been granted short-term modifications as a result of financial disruptions associated with the COVID-19 pandemic. Also, consistent with the CARES Act and the interagency guidelines, such modifications are not included in our TDR totals and discussion below. For more information on the criteria for classifying loans as TDRs, see Note 1, Summary of Significant Accounting Principles - Section 4013 of the CARES Act and Executive Summary COVID-19 Pandemic. The following tables present the total TDR loans at June 30, 2020 and December 31, 2019 : June 30, 2020 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Commercial real estate — $ — 2 $ 3,631 2 $ 3,631 Commercial and industrial 3 2,805 2 3,881 5 6,686 Total commercial loans 3 2,805 4 7,512 7 10,317 Residential mortgage and consumer 49 9,347 79 16,491 128 25,838 Total 52 $ 12,152 83 $ 24,003 135 $ 36,155 December 31, 2019 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Commercial real estate — $ — 3 $ 2,362 3 $ 2,362 Commercial and industrial 3 2,535 2 4,682 5 7,217 Total commercial loans 3 2,535 5 7,044 8 9,579 Residential mortgage and consumer 54 10,549 78 16,458 132 27,007 Total 57 $ 13,084 83 $ 23,502 140 $ 36,586 The following tables present information about TDRs that occurred during the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, 2020 2019 Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment (Dollars in thousands) Troubled Debt Restructurings: Commercial real estate 1 $ 1,330 $ 1,330 — $ — $ — Residential mortgage and consumer — — — 4 732 732 Six Months Ended June 30, 2020 2019 Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment (Dollars in thousands) Troubled Debt Restructurings: Commercial real estate 1 $ 1,330 $ 1,330 — $ — $ — Commercial and industrial 1 933 933 — — — Residential mortgage and consumer — — — 10 2,396 2,396 Post-modification recorded investment represents the net book balance immediately following modification. Collateral dependent loans classified as TDRs were written down to the estimated fair value of the collateral. There were $163,000 in charge-offs for TDRs of unsecured commercial and industrial loans during the three and six months ended June 30, 2020 . There were $96,000 and $573,000 in charge-offs for TDRs of unsecured commercial and industrial loans during the three and six months ended June 30, 2019 , respectively. The allowance for loan losses associated with the TDRs presented in the above tables totaled $1.6 million and $1.8 million as of June 30, 2020 and December 31, 2019 , respectively. Loan modifications generally involve the reduction in loan interest rate and/or extension of loan maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. All residential loans deemed to be TDRs were modified to reflect a reduction in interest rates to current market rates. The commercial loan modification which qualified as a TDR in the three months ended June 30, 2020 was a loan which had already been on non-accrual status and was granted a 90-day deferral of payment due to circumstances related to COVID-19. The commercial loan modification which qualified as a TDR in the first quarter of 2020 had its maturity extended. There were no commercial loan modifications which qualified as TDRs in the six months ended June 30, 2019 . The following tables present information about pre and post modification interest yield for TDRs which occurred during the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, 2020 2019 Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Troubled Debt Restructurings: Commercial real estate 1 3.88 % 3.88 % — — % — % Residential mortgage and consumer — — % — % 4 5.22 % 4.96 % Six Months Ended June 30, 2020 2019 Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Troubled Debt Restructurings: Commercial real estate 1 3.88 % 3.88 % — — % — % Commercial and industrial 1 4.75 % 4.75 % — — % — % Residential mortgage and consumer — — % — % 10 5.25 % 4.92 % Payment defaults for loans modified as a TDR in the previous 12 months to June 30, 2020 consisted of one residential loan with a recorded investment of $201,000 at June 30, 2020 . Payment defaults for loans modified as a TDR in the previous 12 months to June 30, 2019 consisted of one residential loan and one commercial real estate loan with a recorded investment of $270,000 and $2.5 million , respectively, at June 30, 2019 . The following table presents, under previously applicable GAAP, loans individually evaluated for impairment by portfolio segment as of December 31, 2019 : December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance: Multi-family $ 22,169 23,581 — 23,298 47 Commercial real estate 7,875 10,913 — 8,127 199 Commercial and industrial 12,476 21,090 — 14,860 351 Construction — — — — — Total commercial loans 43 56 — 46 1 Residential mortgage and consumer 13,783 18,066 — 13,811 267 With an allowance recorded: Multi-family — — — — — Commercial real estate — — — — — Commercial and industrial — — — — — Construction — — — — — Total commercial loans — — — — — Residential mortgage and consumer 13,220 13,881 1,763 13,321 153 Total: Multi-family 22,169 23,581 — 23,298 47 Commercial real estate 7,875 10,913 — 8,127 199 Commercial and industrial 12,476 21,090 — 14,860 351 Construction — — — — — Total commercial loans 43 56 — 46 1 Residential mortgage and consumer 27,003 31,947 1,763 27,132 420 Total impaired loans $ 69,523 87,531 1,763 73,417 1,017 The average recorded investment is the annual average calculated based upon the ending quarterly balances. The interest income recognized is the year to date interest income recognized on a cash basis. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses On January 1, 2020, the Company adopted ASU 2016-13 , “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. See Note 1, Summary of Significant Accounting Principle s . Allowance for Credit Losses on Loans Receivable An analysis of the allowance for credit losses for loans receivable is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Balance at beginning of the period $ 243,288 234,717 228,120 235,817 Impact of adopting ASC 326 — — (3,551 ) — Gross charge offs (5,059 ) (2,181 ) (15,988 ) (7,626 ) Recoveries 985 2,401 3,881 3,746 Net charge-offs (4,074 ) 220 (12,107 ) (3,880 ) Allowance at acquisition on loans purchased with credit deterioration 4,180 — 4,180 — Provision for credit loss expense 29,925 (3,000 ) 56,677 — Balance at end of the period $ 273,319 231,937 273,319 231,937 Accrued interest receivable on loans, reported as a component of accrued interest receivable on the balance sheet, totaled $71.3 million at June 30, 2020 and is excluded from the estimate of credit losses. The lifetime estimate considers multiple economic scenarios, including recessionary scenarios that assume deterioration in key economic variables such as gross domestic product, unemployment rate and real estate prices. As of January 1, 2020, the Company’s economic outlook was weighted to include a moderate potential of a recession with some expectation of tail risk similar to the severely adverse scenario used in stress testing. During the six months ended June 30, 2020, there was a significant change in the economic outlook impacting the allowance for credit losses, with key economic factors such as the unemployment rate and gross domestic product severely affected by the impact of COVID-19. In response to these changes, the Company reassessed the selection and probability weightings of the economic scenarios. All scenarios utilized by the Company at June 30, 2020, assume recessionary environments of varying degrees resulting from the COVID-19 pandemic. In addition, the allowance for credit losses at June 30, 2020 included qualitative reserves for certain segments that may not be fully recognized through its quantitative models. There are still many unknowns including the duration of the impact of COVID-19 on the economy and the results of the government fiscal and monetary actions along with recently implemented payment deferral programs, and the Company will continue to evaluate the allowance for credit losses and the related economic outlook each quarter. The following tables present the balance in the allowance for credit losses for loans by portfolio segment as of June 30, 2020 and December 31, 2019 : June 30, 2020 Multi- Family Loans Commercial Real Estate Loans Commercial and Industrial Loans Construction Loans Residential Mortgage Loans Consumer and Other Loans Unallocated Total (Dollars in thousands) Allowance for credit losses: Beginning balance-December 31, 2019 $ 74,099 50,925 74,396 6,816 17,391 2,548 1,945 228,120 Impact of adopting ASC 326 (9,741 ) (4,631 ) (7,511 ) (1,901 ) 20,089 2,089 (1,945 ) (3,551 ) Charge-offs (4,144 ) (189 ) (10,835 ) — (805 ) (15 ) — (15,988 ) Recoveries — 320 2,939 — 487 135 — 3,881 Allowance at acquisition on loans purchased with credit deterioration 209 3,208 287 127 344 5 — 4,180 Provision for credit loss expense (237 ) 34,800 21,340 4,268 (3,910 ) 416 — 56,677 Ending balance-June 30, 2020 $ 60,186 84,433 80,616 9,310 33,596 5,178 — 273,319 December 31, 2019 Multi- Family Loans Commercial Real Estate Loans Commercial and Industrial Loans Construction Loans Residential Mortgage Loans Consumer and Other Loans Unallocated Total (Dollars in thousands) Allowance for credit losses: Beginning balance-December 31, 2018 $ 82,876 48,449 71,084 7,486 20,776 3,102 2,044 235,817 Charge-offs (2,973 ) (151 ) (6,833 ) — (2,241 ) (934 ) — (13,132 ) Recoveries 1,244 2,204 1,203 — 1,448 336 — 6,435 Provision for credit loss expense (7,048 ) 423 8,942 (670 ) (2,592 ) 44 (99 ) (1,000 ) Ending balance-December 31, 2019 $ 74,099 50,925 74,396 6,816 17,391 2,548 1,945 228,120 Allowance for Credit Losses on Debt Securities An analysis of the allowance for credit losses for debt securities held-to-maturity is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 (In thousands) Balance at beginning of the period $ 2,995 — Impact of adopting ASC 326 — 2,564 Provision for credit losses 249 680 Balance at end of the period $ 3,244 3,244 The following tables present the balance in the allowance for credit losses for debt securities held-to-maturity by portfolio segment as of June 30, 2020 : June 30, 2020 Municipal Bonds Corporate and Other Debt Securities Total (Dollars in thousands) Allowance for credit losses: Beginning balance-December 31, 2019 $ — — — Impact of adopting ASC 326 17 2,547 2,564 Provision for credit loss 10 670 680 Ending balance-June 30, 2020 $ 27 3,217 3,244 Accrued interest receivable on debt securities held-to-maturity totaled $10.3 million at June 30, 2020 and is excluded from the estimate of credit losses. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures An analysis of the allowance for credit losses for off-balance sheet credit exposures is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 (In thousands) Balance at beginning of the period $ 17,142 425 Impact of adopting ASC 326 — 12,674 Provision for credit losses 3,105 7,148 Balance at end of the period $ 20,247 20,247 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are summarized as follows: June 30, 2020 December 31, 2019 (In thousands) Non-interest bearing: Checking accounts $ 3,040,450 2,472,232 Interest bearing: Checking accounts 5,852,330 5,512,979 Money market deposits 4,311,095 3,817,718 Savings 2,062,445 2,050,101 Certificates of deposit 4,220,982 4,007,308 Total deposits $ 19,487,302 17,860,338 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table summarizes goodwill and intangible assets at June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 (In thousands) Mortgage servicing rights $ 9,667 12,125 Core deposit premiums 4,351 2,530 Other 625 668 Total other intangible assets 14,643 15,323 Goodwill 94,535 82,546 Goodwill and intangible assets $ 109,178 97,869 The following table summarizes other intangible assets as of June 30, 2020 and December 31, 2019 : Gross Intangible Asset Accumulated Amortization Valuation Allowance Net Intangible Assets (In thousands) June 30, 2020 Mortgage servicing rights $ 16,942 (4,621 ) (2,654 ) 9,667 Core deposit premiums 23,063 (18,712 ) — 4,351 Other 1,150 (525 ) — 625 Total other intangible assets $ 41,155 (23,858 ) (2,654 ) 14,643 December 31, 2019 Mortgage servicing rights $ 19,368 (7,140 ) (103 ) 12,125 Core deposit premiums 20,561 (18,031 ) — 2,530 Other 1,150 (482 ) — 668 Total other intangible assets $ 41,079 (25,653 ) (103 ) 15,323 Mortgage servicing rights are accounted for using the amortization method. Under this method, the Company amortizes the loan servicing asset in proportion to, and over the period of, estimated net servicing revenues. The Company sells loans on a servicing-retained basis. Loans that were sold on this basis had an unpaid principal balance of $1.77 billion and $1.67 billion at June 30, 2020 and December 31, 2019 , respectively, all of which relate to mortgage loans. At June 30, 2020 and December 31, 2019 , the servicing asset, included in other intangible assets, had an estimated fair value of $10.1 million and $14.1 million , respectively. At June 30, 2020 , fair value was based on expected future cash flows considering a weighted average discount rate of 12.04% , a weighted average constant prepayment rate on mortgages of 23.70% and a weighted average life of 3.5 years . Based on an analysis of fair values as of June 30, 2020 , the Company determined that a $2.6 million increase to the valuation allowance for mortgage servicing rights was required. See Note 16 for additional details. Core deposit premiums are amortized using an accelerated method and having a weighted average amortization period of 10 years . For the three months ended June 30, 2020 , the Company recorded $2.5 million in core deposit premiums resulting from the acquisition of Gold Coast. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices, branch locations and certain equipment. For these operating leases, the Company recognizes a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. The Company’s leases have remaining lease terms of up to 16 years , some of which include options to extend the leases for up to 10 years , and some of which include options to terminate the leases within 1 year . Certain of our operating leases for branch locations contain variable lease payments related to consumer price index adjustments. The following table presents the balance sheet information related to our operating leases: June 30, 2020 December 31, 2019 (Dollars in thousands) Operating lease right-of-use assets $ 172,432 175,143 Operating lease liabilities 184,572 185,827 Weighted average remaining lease term 9.3 years 9.7 years Weighted average discount rate 2.70 % 2.74 % In determining the present value of lease payments, the discount rate used for each individual lease is the rate implicit in the lease, unless that rate cannot be readily determined, in which case the Company is required to use its incremental borrowing rate based on the information available at commencement date. For its incremental borrowing rate, the Company uses the borrowing rates offered to the Company by the Federal Home Loan Bank, which reflects the rates a lender would charge the Company to obtain a collateralized loan. The following table presents the components of total operating lease cost recognized in the Consolidated Statements of Income: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Included in office occupancy and equipment expense: Operating lease cost $ 6,526 6,323 12,807 12,643 Short-term lease cost 103 72 189 155 Variable lease cost — — (1 ) — Included in other income: Sublease income 51 67 118 134 The following table presents supplemental cash flow information related to operating leases: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 5,872 6,158 11,579 12,296 Operating lease liabilities arising from obtaining right-of-use assets (non-cash): Operating leases 7,278 1,773 7,837 1,791 Future minimum operating lease payments and reconciliation to operating lease liabilities at June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 (In thousands) 2020 $ 13,105 24,013 2021 25,232 23,888 2022 23,589 22,270 2023 22,486 21,227 2024 22,440 21,162 Thereafter 103,066 100,662 Total lease payments 209,918 213,222 Less: Imputed interest (25,346 ) (27,395 ) Total operating lease liabilities $ 184,572 185,827 The Company also has finance leases for certain equipment. The Company’s right-of-use assets and lease liabilities for finance leases were both $3.1 million at June 30, 2020 |
Equity Incentive Plan
Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan At the annual meeting held on June 9, 2015, stockholders of the Company approved the Investors Bancorp, Inc. 2015 Equity Incentive Plan (“2015 Plan”) which provides for the issuance or delivery of up to 30,881,296 shares ( 13,234,841 restricted stock awards and 17,646,455 stock options) of Investors Bancorp, Inc. common stock. Restricted shares granted under the 2015 Plan vest in equal installments, over the service period generally ranging from 5 to 7 years beginning one year from the date of grant. Additionally, certain restricted shares awarded are performance vesting awards, which may or may not vest depending upon the attainment of certain corporate financial targets. The vesting of restricted stock may accelerate in accordance with the terms of the 2015 Plan. The product of the number of shares granted and the grant date closing market price of the Company’s common stock determine the fair value of restricted shares under the 2015 Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period. For the six months ended June 30, 2020 and June 30, 2019 , the Company granted 68,923 and 658,419 shares of restricted stock awards under the 2015 Plan, respectively. Stock options granted under the 2015 Plan vest in equal installments, over the service period generally ranging from 5 to 7 years beginning one year from the date of grant. The vesting of stock options may accelerate in accordance with the terms of the 2015 Plan. Stock options were granted at an exercise price equal to the fair value of the Company’s common stock on the grant date based on the closing market price and have an expiration period of 10 years. For the six months ended June 30, 2020 and June 30, 2019 , the Company granted no stock options and 50,000 stock options under the 2015 Plan, respectively. The fair value of stock options granted as part of the 2015 Plan was estimated utilizing the Black-Scholes option pricing model using the following assumptions for the periods presented below: Six Months Ended June 30, 2019 Weighted average expected life (in years) 6.50 Weighted average risk-free rate of return 2.50 % Weighted average volatility 18.70 % Dividend yield 3.57 % Weighted average fair value of options granted $ 1.60 Total stock options granted 50,000 The weighted average expected life of the stock option represents the period of time that stock options are expected to be outstanding and is estimated using historical data of stock option exercises and forfeitures. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the historical volatility of the Company’s stock. The Company recognizes compensation expense for the fair values of these awards, which have graded vesting, on a straight-line basis over the requisite service period of the awards. Upon exercise of vested options, management expects to draw on treasury stock as the source for shares. The following table presents the share-based compensation expense for the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Stock option expense $ 1,011 1,350 1,999 2,652 Restricted stock expense 2,943 3,636 5,844 6,907 Total share-based compensation expense $ 3,954 4,986 7,843 9,559 The following is a summary of the Company’s stock option activity and related information for the six months ended June 30, 2020 : Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2019 5,654,461 $ 12.46 5.5 $ 363 Granted — — — Exercised — — — Forfeited (10,802 ) 12.55 Expired (39,087 ) 12.54 Outstanding at June 30, 2020 5,604,572 12.46 5.0 29 Exercisable at June 30, 2020 3,800,760 $ 12.43 5.0 $ 29 Expected future expense relating to the non-vested options outstanding as of June 30, 2020 is $7.4 million over a weighted average period of 1.65 years. The following is a summary of the status of the Company’s restricted shares as of June 30, 2020 and changes therein during the six months ended: Number of Shares Awarded Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 2,894,352 $ 12.57 Granted 68,923 10.67 Vested (954,345 ) 12.63 Forfeited (15,973 ) 12.34 Outstanding and non-vested at June 30, 2020 1,992,957 $ 12.48 Expected future expense relating to the non-vested restricted shares outstanding as of June 30, 2020 is $22.5 million over a weighted average period of 2.48 |
Net Periodic Benefit Plan Expen
Net Periodic Benefit Plan Expense | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Plan Expense | Net Periodic Benefit Plan Expense The Company has an Executive Supplemental Retirement Wage Replacement Plan (“SERP II”) and the Supplemental ESOP and Retirement Plan (“SERP I”) (collectively, the “SERPs”). The SERP II is a nonqualified, defined benefit plan which provides benefits to certain executives as designated by the Compensation and Benefits Committee of the Board of Directors. More specifically, the SERP II was designed to provide participants with a normal retirement benefit equal to an annual benefit of 60% of the participant’s highest annual base salary and cash incentive (over a consecutive 36 -month period within the participant’s credited service period) reduced by the sum of the benefits provided under the Pentegra Defined Benefit Plan for Financial Institutions (“Pentegra DB Plan”) and the SERP I. Effective as of the close of business of December 31, 2016, the SERP II was amended to freeze future benefit accruals subsequent to the 2016 year of service. The SERP I compensates certain executives (as designated by the Compensation and Benefits Committee of the Board of Directors) participating in the ESOP whose contributions are limited by the Internal Revenue Code. The Company also maintains the Amended and Restated Director Retirement Plan (“Directors’ Plan”) for certain directors, which is a nonqualified, defined benefit plan. The Directors’ Plan was frozen on November 21, 2006 such that no new benefits accrued under, and no new directors were eligible to participate in the plan. The SERPs and the Directors’ Plan are unfunded and the costs of the plans are recognized over the period that services are provided. The components of net periodic benefit cost for the Directors’ Plan and the SERP II are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Interest cost $ 324 397 648 794 Amortization of: Net loss 299 — 598 — Total net periodic benefit cost $ 623 397 1,246 794 Due to the unfunded nature of the SERPs and the Directors’ Plan, no contributions have been made or were expected to be made during the six months ended June 30, 2020 . The Company also maintains the Pentegra DB Plan. Since it is a multi-employer plan, costs of the pension plan are based on contributions required to be made to the pension plan. As of December 31, 2016, the annual benefit provided under the Pentegra DB plan was frozen by an amendment to the plan. Freezing the plan eliminates all future benefit accruals and each participant’s frozen accrued benefit was determined as of December 31, 2016 and no further benefits will accrue beyond such date. There was no contribution required during the six months ended June 30, 2020 . We anticipate contributing funds to the plan to meet any minimum funding requirements for the remainder of 2020 . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s floating rate borrowings and pools of fixed-rate assets. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are primarily to reduce cost and add stability to interest expense in an effort to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of amounts subject to variability caused by changes in interest rates from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Changes in the fair value of derivatives designated and that qualify as cash flow hedges are initially recorded in other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Such derivatives were used to hedge the variability in cash flows associated with borrowings. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of seventeen months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate borrowings. During the next twelve months, the Company estimates that an additional $47.4 million will be reclassified as an increase to interest expense. Fair Value Hedges of Interest Rate Risk The Company is exposed to changes in the fair value of certain of its fixed- and adjustable-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. Such derivatives were used to hedge the changes in fair value of certain of its pools of prepayable fixed- and adjustable-rate assets. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. The Company terminated three interest rate swaps with an aggregate notional amount of $1.00 billion during the year ended December 31, 2019 . The terminated swaps were due to mature in February 2020. Derivatives Not Designated as Hedges The Company has credit derivatives resulting from participations in interest rate swaps provided to external lenders as part of loan participation arrangements which are, therefore, not used to manage interest rate risk in the Company’s assets or liabilities. Additionally, the Company provides interest rate risk management services to commercial customers, primarily interest rate swaps. The Company’s market risk from unfavorable movements in interest rates related to these derivative contracts is economically hedged by concurrently entering into offsetting derivative contracts that have identical notional values, terms and indices. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans and commercial customers. Fair Values of Derivative Instruments on the Balance Sheet Asset Derivatives Liability Derivatives June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (in millions) (In thousands) (in millions) (In thousands) (in millions) (In thousands) (in millions) (In thousands) Derivatives designated as hedging instruments: Interest Rate Swaps $ 3,900 Other assets $ 141 $ 2,675 Other assets $ 559 $ — Other liabilities $ — $ — Other liabilities $ — Total derivatives designated as hedging instruments $ 141 $ 559 $ — $ — Derivatives not designated as hedging instruments: Interest Rate Swaps $ 718 Other assets $ 35,831 $ 652 Other assets $ 5,430 $ — Other liabilities $ — $ — Other liabilities $ — Other Contracts — Other assets — — Other assets — 22 Other liabilities 250 22 Other liabilities 125 Total derivatives not designated as hedging instruments $ 35,831 $ 5,430 $ 250 $ 125 The Chicago Mercantile Exchange (“CME”) legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral. Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Loss) The following table presents the effect of the Company’s derivative financial instruments on the Accumulated Comprehensive Income (Loss) for the three months ended June 30, 2020 and 2019 . Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Cash Flow Hedges - Interest rate swaps Amount of loss recognized in other comprehensive income (loss) $ (17,040 ) (38,664 ) (117,401 ) (58,345 ) Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) to interest expense (6,628 ) 1,728 (8,717 ) 3,818 Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships The following table presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of June 30, 2020 and 2019 . For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 The effects of fair value and cash flow hedging: Income statement location (In thousands) Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items Interest income on loans $ (2,239 ) 5,297 4,530 6,219 Derivatives designated as hedging instruments Interest income on loans (136 ) (5,261 ) (7,324 ) (6,282 ) Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) Interest expense on borrowings (6,628 ) 1,728 (8,717 ) 3,818 Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) as a result that a forecasted transaction is no longer probable of occurring Interest expense on borrowings — — — — Total amounts of income and expense line items presented in the income statement in which the effects of fair value are recorded $ (9,003 ) 1,764 (11,511 ) 3,755 As of June 30, 2020 and December 31, 2019 , the following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustment for fair value hedges: Balance sheet location Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 (In thousands) Loans receivable, net (1)(2) $ 482,649 478,120 $ 10,515 6,426 (1) At June 30, 2020 , the amortized cost basis of the closed portfolios used in these hedging relationships was $1.23 billion ; the cumulative basis adjustments associated with these hedging relationships was $10.5 million ; and the amounts of the designated hedged items were $482.6 million . (2) The balance of Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) as of June 30, 2020 includes $2.9 million of hedging adjustment on discontinued hedging relationships. Location and Amount of Gain or (Loss) Recognized in Income on Derivatives Not Designated as Hedging Instruments The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income as of June 30, 2020 : Consolidated Statements of Income location Amount of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Other Contracts Other income / (expense) $ 4 (40 ) $ (125 ) (11 ) Total $ 4 (40 ) $ (125 ) (11 ) Offsetting Derivatives The following table presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 . The net amounts of derivative assets and liabilities can be reconciled to the tabular disclosure of the fair value hierarchy, see Note 16, Fair Value Measurements . The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Company’s Consolidated Balance Sheets. Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Posted Net Amount (In thousands) June 30, 2020 Assets: Derivative contracts $ 257 — 257 — — 257 Liabilities: Derivative contracts 250 — 250 — — 250 December 31, 2019 Assets: Derivative contracts $ 821 — 821 — — 821 Liabilities: Derivative contracts $ 125 — 125 — — 125 |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive Income The components of comprehensive income, gross and net of tax, are as follows: Three Months Ended June 30, 2020 2019 Gross Tax Net Gross Tax Net (Dollars in thousands) Net income $ 58,829 (16,218 ) 42,611 65,345 (18,721 ) 46,624 Other comprehensive loss: Change in funded status of retirement obligations 416 (117 ) 299 19 (5 ) 14 Unrealized (losses) gains on debt securities available-for-sale (1,216 ) 219 (997 ) 21,767 (5,199 ) 16,568 Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale 73 (17 ) 56 443 (125 ) 318 Reclassification adjustment for security losses included in net income — — — 5,690 (1,469 ) 4,221 Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 385 (108 ) 277 251 (70 ) 181 Net losses on derivatives (10,412 ) 2,927 (7,485 ) (40,392 ) 11,354 (29,038 ) Total other comprehensive loss (10,754 ) 2,904 (7,850 ) (12,222 ) 4,486 (7,736 ) Total comprehensive income $ 48,075 (13,314 ) 34,761 53,123 (14,235 ) 38,888 Six Months Ended June 30, 2020 2019 Gross Tax Net Gross Tax Net (Dollars in thousands) Net income $ 112,988 (30,865 ) 82,123 132,808 (38,026 ) 94,782 Other comprehensive loss: Change in funded status of retirement obligations 444 (125 ) 319 37 (10 ) 27 Unrealized gains on debt securities available-for-sale 48,193 (11,562 ) 36,631 43,281 (10,474 ) 32,807 Accretion of loss on securities reclassified to held-to-maturity from available-for-sale 147 (35 ) 112 600 (169 ) 431 Reclassification adjustment for security losses included in net income — — — 5,690 (1,469 ) 4,221 Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 635 (178 ) 457 502 (141 ) 361 Net losses on derivatives (108,684 ) 30,551 (78,133 ) (62,163 ) 17,474 (44,689 ) Total other comprehensive loss (59,265 ) 18,651 (40,614 ) (12,053 ) 5,211 (6,842 ) Total comprehensive income $ 53,723 (12,214 ) 41,509 120,755 (32,815 ) 87,940 The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the six months ended June 30, 2020 and 2019 : Change in funded status of retirement obligations Accretion of loss on debt securities reclassified to held-to-maturity Unrealized gains (losses) on debt securities available-for-sale and gains included in net income Other-than- temporary impairment accretion on debt securities Unrealized (losses) gains on derivatives Total accumulated other comprehensive loss (Dollars in thousands) Balance - December 31, 2019 $ (6,690 ) (386 ) 29,456 (10,629 ) (30,373 ) (18,622 ) Net change 319 112 36,631 457 (78,133 ) (40,614 ) Balance - June 30, 2020 $ (6,371 ) (274 ) 66,087 (10,172 ) (108,506 ) (59,236 ) Balance - December 31, 2018 $ (3,018 ) (921 ) (8,884 ) (11,397 ) 12,651 (11,569 ) Net change 27 431 37,028 361 (44,689 ) (6,842 ) Balance - June 30, 2019 $ (2,991 ) (490 ) 28,144 (11,036 ) (32,038 ) (18,411 ) The following table presents information about amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income and the affected line item in the statement where net income is presented. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Reclassification adjustment for losses included in net income Loss on securities, net $ — 5,690 — 5,690 Change in funded status of retirement obligations Amortization of net loss (gain) 299 (2 ) 599 (4 ) Interest expense Reclassification adjustment for unrealized losses (gains) on derivatives 6,092 (1,728 ) 8,181 (3,818 ) Total before tax 6,391 3,960 8,780 1,868 Income tax expense (1,762 ) (973 ) (2,398 ) (375 ) Net of tax $ 4,629 2,987 6,382 1,493 |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders’ Equity | Stock Transactions Stock Repurchase Program On October 25, 2018, the Company announced its fourth share repurchase program, which authorized the purchase of 10% of its publicly-held outstanding shares of common stock, or 28,886,780 shares. The fourth program commenced immediately upon completion of the third program on December 10, 2018 and remains the Company’s current program as of June 30, 2020 . During the six months ended June 30, 2020 , the Company purchased 383,366 shares at a cost of approximately $3.4 million , or $8.77 per share. All shares purchased during the six months ended June 30, 2020 were purchased in connection with the vesting of shares of restricted stock under our 2015 Equity Incentive Plan and the withholding of shares to pay income taxes. These shares are repurchased pursuant to the terms of the 2015 Equity Incentive Plan and therefore are not part of the Company’s repurchase program. The changes in the components of stockholders’ equity for the three months ended June 30, 2020 and 2019 are as follows: Common stock Additional paid-in capital Retained earnings Treasury stock Unallocated common stock held by ESOP Accumulated other comprehensive loss Total stockholders’ equity (In thousands) Balance at March 31, 2019 $ 3,591 2,810,832 1,191,020 (958,425 ) (80,513 ) (10,675 ) 2,955,830 Net income — — 46,624 — — — 46,624 Other comprehensive loss, net of tax — — — — — (7,736 ) (7,736 ) Purchase of treasury stock (3,829,780 shares) — — — (44,023 ) — — (44,023 ) Treasury stock allocated to restricted stock plan (538,756 shares) — (6,500 ) (118 ) 6,618 — — — Compensation cost for stock options and restricted stock — 4,993 — — — — 4,993 Exercise of stock options — (221 ) — 712 — — 491 Restricted stock forfeitures (12,267 shares) — 154 (7 ) (147 ) — — — Cash dividend paid ($0.11 per common share) — — (30,646 ) — — — (30,646 ) ESOP shares allocated or committed to be released — 593 — — 749 — 1,342 Balance at June 30, 2019 $ 3,591 2,809,851 1,206,873 (995,265 ) (79,764 ) (18,411 ) 2,926,875 Balance at March 31, 2020 $ 3,591 2,826,288 1,247,028 (1,353,246 ) (77,517 ) (51,386 ) 2,594,758 Net income — — 42,611 — — — 42,611 Other comprehensive loss, net of tax — — — — — (7,850 ) (7,850 ) Common stock issued to finance acquisition 28 20,853 — — — — 20,881 Purchase of treasury stock (298,977 shares) — — — (2,429 ) — — (2,429 ) Treasury stock allocated to restricted stock plan (4,000 shares) — (36 ) (13 ) 49 — — — Compensation cost for stock options and restricted stock — 3,954 — — — — 3,954 Cash dividend paid ($0.12 per common share) — — (30,021 ) — — — (30,021 ) ESOP shares allocated or committed to be released — 247 — — 749 — 996 Balance at June 30, 2020 $ 3,619 2,851,306 1,259,605 (1,355,626 ) (76,768 ) (59,236 ) 2,622,900 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Our debt securities available-for-sale and derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other assets or liabilities on a non-recurring basis, such as held-to-maturity debt securities, mortgage servicing rights (“MSR”), loans receivable and other real estate owned. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. Additionally, in connection with our mortgage banking activities we have commitments to fund loans held-for-sale and commitments to sell loans, which are considered free-standing derivative instruments, the fair values of which are not material to our financial condition or results of operations. In accordance with FASB ASC 820, “ Fair Value Measurements and Disclosures ”, we group our assets and liabilities at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. • Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets Measured at Fair Value on a Recurring Basis Equity securities Our equity securities portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses recognized in the Consolidated Statements of Income. The fair values of equity securities are based on quoted market prices (Level 1). Debt securities available-for-sale Our debt securities available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income (loss) in stockholders’ equity. The fair values of debt securities available-for-sale are based upon quoted prices for similar instruments in active markets (Level 2). The pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, benchmark yields, credit spreads, default rates, prepayment speeds and non-binding broker quotes. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in adjustment in the prices obtained from the pricing service. Derivatives Derivatives are reported at fair value utilizing Level 2 inputs. The fair values of interest rate swap and risk participation agreements are based on a valuation model that uses primarily observable inputs, such as benchmark yield curves and interest rate spreads. The following tables provide the level of valuation assumptions used to determine the carrying value of our assets and liabilities measured at fair value on a recurring basis at June 30, 2020 and December 31, 2019 . Carrying Value at June 30, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets: Equity securities $ 6,190 6,190 — — Debt securities available for sale: Government-sponsored enterprises $ 4,832 — 4,832 — Mortgage-backed securities: Federal Home Loan Mortgage Corporation 1,275,825 — 1,275,825 — Federal National Mortgage Association 1,311,137 — 1,311,137 — Government National Mortgage Association 294,773 — 294,773 — Total debt securities available-for-sale $ 2,886,567 — 2,886,567 — Interest rate swaps $ 35,972 — 35,972 — Liabilities: Derivatives: Other contracts $ 250 — 250 — Total derivatives $ 250 — 250 — Carrying Value at December 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets: Equity securities $ 6,039 6,039 — — Debt securities available for sale: Mortgage-backed securities: Federal Home Loan Mortgage Corporation $ 1,240,379 — 1,240,379 — Federal National Mortgage Association 1,178,049 — 1,178,049 — Government National Mortgage Association 276,962 — 276,962 — Total debt securities available-for-sale $ 2,695,390 — 2,695,390 — Interest rate swaps $ 5,989 — 5,989 — Liabilities: Derivatives: Other contracts 125 — 125 — Total derivatives $ 125 — 125 — There have been no changes in the methodologies used at June 30, 2020 from December 31, 2019 , and there were no transfers between Level 1 and Level 2 during the six months ended June 30, 2020 . There were no Level 3 assets measured at fair value on a recurring basis for the six months ended June 30, 2020 and December 31, 2019 . Assets Measured at Fair Value on a Non-Recurring Basis Mortgage Servicing Rights, Net Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSR is obtained through independent third-party valuations through an analysis of future cash flows, incorporating assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, including the market’s perception of future interest rate movements. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. At June 30, 2020 , the fair value model used prepayment speeds ranging from 9.54% to 27.12% and a discount rate of 12.04% for the valuation of the mortgage servicing rights. At December 31, 2019 , the fair value model used prepayment speeds ranging from 6.60% to 29.10% and a discount rate of 12.05% for the valuation of the mortgage servicing rights. A significant degree of judgment is involved in valuing the mortgage servicing rights using Level 3 inputs. The use of different assumptions could have a significant positive or negative effect on the fair value estimate. Collateral-Dependent Loans/Impaired Loans Receivable With the adoption of ASU 2016-13, loans which meet certain criteria are individually evaluated as part of the process of calculating the allowance for credit losses. Prior to adoption, such loans were evaluated for impairment. However, the valuation method remains unchanged. A loan is individually evaluated when it is a commercial loan with an outstanding balance greater than $1.0 million and on non-accrual status, loans modified in a troubled debt restructuring, and other commercial loans with $1.0 million in outstanding principal if management has specific information that it is probable they will not collect all amounts due under the contractual terms of the loan agreement. Collateral-dependent loans secured by property are carried at the estimated fair value of the collateral less estimated selling costs. Estimated fair value is calculated using an independent third-party appraiser. In the event the most recent appraisal does not reflect the current market conditions due to the passage of time and other factors, management will obtain an updated appraisal or make downward adjustments to the existing appraised value based on their knowledge of the property, local real estate market conditions, recent real estate transactions, and for estimated selling costs, if applicable. Appraisals were generally discounted in a range of 0% to 25% . For non-collateral-dependent loans management estimates the fair value using discounted cash flows based on inputs that are largely unobservable and instead reflect management’s own estimates of the assumptions as a market participant would in pricing such loans. Other Real Estate Owned and Other Repossessed Assets Other Real Estate Owned and Other Repossessed Assets are recorded at estimated fair value, less estimated selling costs when acquired, thus establishing a new cost basis. Fair value of foreclosed real estate property is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience and are discounted an additional 0% to 25% for estimated costs to sell. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, a writedown is recorded through expense. The valuation of foreclosed and repossessed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Operating costs after acquisition are generally expensed. Loans Held for Sale Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. When available, the Company uses observable secondary market data, including pricing on recent closed market transactions for loans with similar characteristics. The following tables provide the level of valuation assumptions used to determine the carrying value of our assets measured at fair value on a non-recurring basis at June 30, 2020 and December 31, 2019 . For the three months ended June 30, 2020 , there was no change to the carrying value of other real estate owned or loans held for sale. For the three months ended December 31, 2019 , there was no change to the carrying value of impaired loans or loans held for sale. Security Type Valuation Technique Unobservable Input Range Weighted Average Input Carrying Value at June 30, 2020 Minimum Maximum Total Level 1 Level 2 Level 3 (In thousands) MSR, net Estimated cash flow Prepayment speeds 9.5% 27.1% 23.70% $ 9,532 — — 9,532 Collateral-dependent loans Market comparable and estimated cash flow Lack of marketability and probability of default 0.06% 11.50% 10.18% 5,064 — — 5,064 $ 14,596 — — 14,596 Security Type Valuation Technique Unobservable Input Range Weighted Average Input Carrying Value at December 31, 2019 Minimum Maximum Total Level 1 Level 2 Level 3 (In thousands) MSR, net Estimated cash flow Prepayment speeds 6.6% 29.1% 11.04% $ 10,409 — — 10,409 Other real estate owned Market comparable Lack of marketability 0.0% 25.0% 2.70% 262 — — 262 $ 10,671 — — 10,671 Other Fair Value Disclosures Fair value estimates, methods and assumptions for the Company’s financial instruments not recorded at fair value on a recurring or non-recurring basis are set forth below. Cash and Cash Equivalents For cash, short-term U.S. Treasury securities and due from banks, the carrying amount approximates fair value. Debt Securities Held-to-Maturity Our debt securities held-to-maturity portfolio, consisting primarily of mortgage-backed securities and other debt securities for which we have a positive intent and ability to hold to maturity, is carried at amortized cost less any allowance for credit losses. Management utilizes various inputs to determine the fair value of the portfolio. The Company obtains one price for each security primarily from a third-party pricing service, which generally uses quoted or other observable inputs for the determination of fair value. The pricing service normally derives the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available observable market information. For securities not actively traded, the pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, benchmark yields, credit spreads, default rates, prepayment speeds and non-binding broker quotes. In the absence of quoted prices and in an illiquid market, valuation techniques, which require inputs that are both significant to the fair value measurement and unobservable, are used to determine fair value of the investment. Valuation techniques are based on various assumptions, including, but not limited to forecasted cash flows, discount rates, rate of return, adjustments for nonperformance and liquidity, and liquidation values. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in adjustment in the prices obtained from the pricing service. FHLB Stock The fair value of the Federal Home Loan Bank of New York (“FHLB”) stock is its carrying value, since this is the amount for which it could be redeemed. There is no active market for this stock and the Bank is required to hold a minimum investment based upon the balance of mortgage related assets held by the member and or FHLB advances outstanding. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential mortgage and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and non-performing categories. The fair value estimates are made at a specific point in time based on relevant market information. They do not reflect any premium or discount that could result from offering for sale a particular financial instrument. Fair value estimates are based on judgments regarding future expected loss experience, risk characteristics and economic conditions. These estimates are subjective, involve uncertainties, and cannot be determined with precision. Deposit Liabilities The fair value of deposits with no stated maturity, such as savings, checking accounts and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates which approximate currently offered for deposits of similar remaining maturities. Borrowings The fair value of borrowings are based on securities dealers’ estimated fair values, when available, or estimated using discounted contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities. Commitments to Extend Credit The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For commitments to originate fixed rate loans, fair value also considers the difference between current levels of interest rates and the committed rates. Due to the short-term nature of our outstanding commitments, the fair values of these commitments are immaterial to our financial condition. The carrying values and estimated fair values of the Company’s financial instruments are presented in the following table. June 30, 2020 Carrying Estimated Fair Value value Total Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 735,234 735,234 735,234 — — Equities 6,190 6,190 6,190 — — Debt securities available-for-sale 2,886,567 2,886,567 — 2,886,567 — Debt securities held-to-maturity, net 1,198,401 1,262,808 — 1,202,222 60,586 FHLB stock 229,829 229,829 229,829 — — Loans held for sale 39,767 39,767 — 39,767 — Net loans 21,078,644 21,369,385 — — 21,369,385 Derivative financial instruments 35,972 35,972 — 35,972 — Financial liabilities: Deposits, other than time deposits $ 15,266,320 15,266,320 15,266,320 — — Time deposits 4,220,982 4,243,734 — 4,243,734 — Borrowed funds 4,632,016 4,721,251 — 4,721,251 — Derivative financial instruments 250 250 — 250 — December 31, 2019 Carrying Estimated Fair Value value Total Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 174,915 174,915 174,915 — — Equities 6,039 6,039 6,039 — — Debt securities available-for-sale 2,695,390 2,695,390 — 2,695,390 — Debt securities held-to-maturity 1,148,815 1,190,104 — 1,116,771 73,333 FHLB stock 267,219 267,219 267,219 — — Loans held for sale 29,797 29,797 — 29,797 — Net loans 21,476,056 21,563,627 — — 21,563,627 Derivative financial instruments 5,989 5,989 — 5,989 — Financial liabilities: Deposits, other than time deposits $ 13,853,030 13,853,030 13,853,030 — — Time deposits 4,007,308 4,007,342 — 4,007,342 — Borrowed funds 5,827,111 5,834,895 — 5,834,895 — Derivative financial instruments 125 125 — 125 — Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets that are not considered financial assets include deferred tax assets, premises and equipment and bank owned life insurance. Liabilities for pension and other postretirement benefits are not considered financial liabilities. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s contracts with customers in the scope of Topic 606, Revenue from Contracts with Customers , are contracts for deposit accounts and contracts for non-deposit investment accounts through a third-party service provider. Both types of contracts result in non-interest income being recognized. The revenue resulting from deposit accounts, which includes fees such as insufficient funds fees, wire transfer fees and out-of-network ATM transaction fees, is included as a component of fees and service charges on the consolidated statements of income. The revenue resulting from non-deposit investment accounts is included as a component of other income on the Consolidated Statements of Income. Revenue from contracts with customers included in fees and service charges and other income was as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (Dollars in thousands) Revenue from contracts with customers included in: Fees and service charges $ 2,908 3,730 6,858 7,013 Other income 1,965 2,508 4,984 4,731 Total revenue from contracts with customers $ 4,873 6,238 11,842 11,744 For our contracts with customers, we satisfy our performance obligations each day as services are rendered. For our deposit account revenue, we receive payment on a daily basis as services are rendered and for our non-deposit investment account revenue, we receive payment on a monthly basis from our third-party service provider as services are rendered. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standard Description Required date of adoption Effect on Consolidated Financial Statements Standards Adopted in 2020 Measurement of Credit Losses on Financial Instruments This ASU changes how entities report credit losses for financial assets held at amortized cost and available-for-sale debt securities. The amendments replace the “incurred loss” approach with a methodology that incorporates macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios based on relevant information about past events, including historical loss experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The amendments apply to financial assets such as loans, leases and held-to-maturity investments; and certain off-balance sheet credit exposures. The amendments expand credit quality disclosure requirements. January 1, 2020 The Company adopted the standard’s provisions and all of its related updates on January 1, 2020. The amendments were applied on a modified retrospective basis. See Note 1 - Summary of Significant Accounting Principles for information on the impact of the adoption of ASU 2016-13 on the Company’s Consolidated Financial Statements. Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Specifically, where a cloud computing arrangement includes a license to internal-use software, the software license is accounted for by the customer in accordance with Subtopic 350-40, “Intangibles- Goodwill and Other-Internal-Use Software”. January 1, 2020 Early adoption permitted The Company will apply the amendments in this Update prospectively to all implementation costs incurred after January 1, 2020. The adoption of ASU No. 2018-15 did not have an impact on the Company’s Consolidated Financial Statements. Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The amendments remove the requirement to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of such transfers and the valuation processes for Level 3 fair value measurements. The ASU modifies the disclosure requirements for investments in certain entities that calculate net asset value and clarify the purpose of the measurement uncertainty disclosure. The ASU adds disclosure requirements about the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. January 1, 2020 Early adoption permitted to any removed or modified disclosures and delay of adoption of additional disclosures until the effective date Changes should be applied retrospectively to all periods presented upon the effective date with the exception of the following, which should be applied prospectively: disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement. The adoption of ASU 2018-13 did not have an impact on the Company’s Consolidated Financial Statements. Standard Description Required date of adoption Effect on Consolidated Financial Statements Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This ASU simplifies subsequent measurement of goodwill by eliminating Step 2 of the impairment test while retaining the option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. January 1, 2020 Early adoption permitted for interim or annual goodwill impairment testing dates beginning after January 1, 2017 The Company is applying the amendments in ASU 2017-04 prospectively for goodwill impairment testing conducted after January 1, 2020. Standards Not Yet Adopted Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments provide expedients and exceptions for applying GAAP to contracts or hedging relationships affected by the discontinuance of LIBOR as a benchmark rate to alleviate the burden and cost of such modifications. 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, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments also provide a one-time election to sell and/or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform. Effective for a limited time as of March 12, 2020 through December 31, 2022 The Company is evaluating its financial instruments indexed to USD-LIBOR for which the amendments provide expedients and administrative relief. Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force) This update clarifies the application of the alternative provided in ASU 2016-01 to measure certain equity securities without a readily determinable fair value. The amendments in this update clarify that a company should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323 for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments further provide clarification related to the accounting for certain forward contracts and purchased options. January 1, 2021 Early adoption permitted The update is to be applied prospectively. The Company does not expect ASU 2020-01 to have a material impact on its Consolidated Financial Statements. Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The amendments simplify the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and also clarify and amend existing guidance. January 1, 2021 Early adoption permitted This update will be effective for the Company January 1, 2021 with early adoption permitted. The Company does not expect ASU No. 2019-12 to have a material impact on its Consolidated Financial Statements. Standard Description Required date of adoption Effect on Consolidated Financial Statements Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures, and adding disclosure requirements identified as relevant. January 1, 2021 Early adoption permitted The update is to be applied on a retrospective basis. The Company will evaluate the effect of ASU 2018-14 on disclosures with regard to employee benefit plans but does not expect a material impact on the Company’s Consolidated Financial Statements. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As defined in FASB ASC 855, “ Subsequent Events ”, subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued or available to be issued. Financial statements are considered issued when they are widely distributed to stockholders and other financial statement users for general use and reliance in a form and format that complies with U.S. GAAP. Dividend On July 29, 2020, the Company declared a cash dividend of $0.12 per share. The $0.12 dividend per share will be paid to stockholders on August 25, 2020, with a record date of August 10, 2020. Sales-Leaseback On August 3, 2020, the Bank entered into an agreement for the sale-leaseback of 15 of its currently owned properties, subject to buyer due diligence. The properties consist of 15 branches. The Company expects to realize an after-tax gain of approximately $6.7 million net of transaction related expenses. The transaction is expected to close in the third quarter of 2020 and is subject to change or termination due to buyer due diligence on the identified properties and customary closing conditions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards On January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The Company adopted ASU 2016-13 using a modified retrospective approach. Results for reporting periods beginning after January 1, 2020 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. At adoption, the Company increased its allowance for credit losses by $11.7 million , comprised of $12.7 million and $2.6 million , respectively, for unfunded commitments and held-to-maturity debt securities, partially offset by a decrease of $3.6 million for loans. Upon adoption the Company recorded a cumulative effect adjustment that reduced stockholders’ equity by $8.5 million , net of tax. Standard Description Required date of adoption Effect on Consolidated Financial Statements Standards Adopted in 2020 Measurement of Credit Losses on Financial Instruments This ASU changes how entities report credit losses for financial assets held at amortized cost and available-for-sale debt securities. The amendments replace the “incurred loss” approach with a methodology that incorporates macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios based on relevant information about past events, including historical loss experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The amendments apply to financial assets such as loans, leases and held-to-maturity investments; and certain off-balance sheet credit exposures. The amendments expand credit quality disclosure requirements. January 1, 2020 The Company adopted the standard’s provisions and all of its related updates on January 1, 2020. The amendments were applied on a modified retrospective basis. See Note 1 - Summary of Significant Accounting Principles for information on the impact of the adoption of ASU 2016-13 on the Company’s Consolidated Financial Statements. Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Specifically, where a cloud computing arrangement includes a license to internal-use software, the software license is accounted for by the customer in accordance with Subtopic 350-40, “Intangibles- Goodwill and Other-Internal-Use Software”. January 1, 2020 Early adoption permitted The Company will apply the amendments in this Update prospectively to all implementation costs incurred after January 1, 2020. The adoption of ASU No. 2018-15 did not have an impact on the Company’s Consolidated Financial Statements. Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The amendments remove the requirement to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of such transfers and the valuation processes for Level 3 fair value measurements. The ASU modifies the disclosure requirements for investments in certain entities that calculate net asset value and clarify the purpose of the measurement uncertainty disclosure. The ASU adds disclosure requirements about the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. January 1, 2020 Early adoption permitted to any removed or modified disclosures and delay of adoption of additional disclosures until the effective date Changes should be applied retrospectively to all periods presented upon the effective date with the exception of the following, which should be applied prospectively: disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement. The adoption of ASU 2018-13 did not have an impact on the Company’s Consolidated Financial Statements. Standard Description Required date of adoption Effect on Consolidated Financial Statements Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This ASU simplifies subsequent measurement of goodwill by eliminating Step 2 of the impairment test while retaining the option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. January 1, 2020 Early adoption permitted for interim or annual goodwill impairment testing dates beginning after January 1, 2017 The Company is applying the amendments in ASU 2017-04 prospectively for goodwill impairment testing conducted after January 1, 2020. Standards Not Yet Adopted Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments provide expedients and exceptions for applying GAAP to contracts or hedging relationships affected by the discontinuance of LIBOR as a benchmark rate to alleviate the burden and cost of such modifications. 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, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments also provide a one-time election to sell and/or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform. Effective for a limited time as of March 12, 2020 through December 31, 2022 The Company is evaluating its financial instruments indexed to USD-LIBOR for which the amendments provide expedients and administrative relief. Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force) This update clarifies the application of the alternative provided in ASU 2016-01 to measure certain equity securities without a readily determinable fair value. The amendments in this update clarify that a company should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323 for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments further provide clarification related to the accounting for certain forward contracts and purchased options. January 1, 2021 Early adoption permitted The update is to be applied prospectively. The Company does not expect ASU 2020-01 to have a material impact on its Consolidated Financial Statements. Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The amendments simplify the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and also clarify and amend existing guidance. January 1, 2021 Early adoption permitted This update will be effective for the Company January 1, 2021 with early adoption permitted. The Company does not expect ASU No. 2019-12 to have a material impact on its Consolidated Financial Statements. Standard Description Required date of adoption Effect on Consolidated Financial Statements Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures, and adding disclosure requirements identified as relevant. January 1, 2021 Early adoption permitted The update is to be applied on a retrospective basis. The Company will evaluate the effect of ASU 2018-14 on disclosures with regard to employee benefit plans but does not expect a material impact on the Company’s Consolidated Financial Statements. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses includes both the allowance for loan and lease losses and the reserve for unfunded lending commitments and represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through the provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for loan and security losses is reported separately as contra-assets to loans and securities on the consolidated balance sheet. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated balance sheet in other liabilities. The provision for credit losses related to loans, unfunded commitments and debt securities is reported on the consolidated statement of income. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether the loans in a pool continue to exhibit similar risk characteristics as the other loans in the pool. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the allowance on an individual basis. The Company evaluates the segmentation at least annually to determine whether loans continue to share similar risk characteristics. Loans are charged off against the allowance when the Company believes the loan balances become uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages the risk of the type of credit. The Company’s segments for loans include multi-family, commercial real estate, commercial and industrial, construction, residential and consumer. The Company calculates estimated credit loss on its loan portfolio typically using a probability of default and loss given default quantitative model methodology. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. For a small portion of the loan portfolio, i.e. unsecured consumer loans, small business loans and loans to individuals, the Company utilizes a loss rate method to calculate the expected credit loss of that asset segment. The Company estimates the allowance for credit losses on loans using relevant available information from internal and external sources related to past events and current conditions as well as the incorporation of reasonable and supportable forecasts. The Company evaluates the use of multiple economic scenarios and the weighting of those scenarios on a quarterly basis. The scenarios that are chosen and the amount of weighting given to each scenario depend on a variety of factors including third party economists and firms, industry trends and other available published economic information. After the reasonable and supportable forecast period, the Company reverts to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company. Also included in the allowance for loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative method or the economic assumptions described above. For example, factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, and the legal and regulatory requirements, among other. Furthermore, the Company considers the inherent uncertainty in quantitative models that are built on historical data. Individually evaluated On a case-by-case basis, the Company may conclude a loan should be evaluated on an individual basis based on its disparate risk characteristics. The Company individually evaluates loans that meet the following criteria for expected credit loss, as the Company has determined that these loans generally do not share similar risk characteristics with other loans in the portfolio: • Commercial loans with an outstanding balance greater than $1.0 million and on non-accrual status; • Troubled debt restructured loans; and • Other commercial loans with greater than $1.0 million in outstanding principal, if management has specific information that it is probable they will not collect all principal amounts due under the contractual terms of the loan agreement. When the Company determines that the loan no longer shares similar risk characteristics of other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable, to ensure that the credit loss is not delayed until actual loss. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Acquired assets Acquired assets are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired asset is recorded depends on whether it has been classified as a Purchased Financial Asset with Credit Deterioration (“PCD”). PCD assets are assets acquired at a discount that is due, in part, to credit quality. PCD assets are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD assets is recorded through a gross-up effect, while the allowance for acquired non-PCD assets such as loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which assets are PCD and non-PCD can have a significant effect on the accounting for these assets. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans. Additionally, TDR identification for acquired loans (PCD and non-PCD) will be consistent with the TDR identification for originated loans. Allowance for Credit Losses on Debt Securities Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Management classifies the held-to-maturity portfolio into the following major security types: mortgage-backed residential securities, municipal bonds, trust preferred securities (“TruPs”) and other. Nearly all of the mortgage-backed securities in the Company's portfolio are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S government, are highly rated by major rating agencies and have a long history of no credit losses and therefore the expectation of non-payment is zero. Other securities consist primarily of investments in pooled trust preferred securities. At each reporting period, the Company evaluates whether the securities in a segment continue to exhibit similar risk characteristics as the other securities in the segment. If the risk characteristics of a security change, such that they are no longer similar to other securities in the segment, the Company will evaluate the security with a different segment that shares more similar risk characteristics. In estimating the net amount expected to be collected for mortgage-backed residential securities and municipal bonds, a range of historical losses method is utilized. In estimating the net amount expected to be collected for TruPs, the Company employs a single scenario forecast methodology. The scenario is informed by historical industry default data as well as current and near term operating conditions for the banks and other financial institutions that are the underlying issuers. In addition, prepayment assumptions are included in the analysis of the individually assessed TruPs applied at the collateral level. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company is required to include the unfunded commitment that is expected to be funded in the future within the allowance calculation. The Company participates in lending that results in an off-balance sheet unfunded commitment balance. The Company currently underwrites funding commitments with conditionally cancelable language. To determine the expected funding balance remaining, the Company uses a historical utilization rate for each of the segments to calculate the expected commitment balance. The reserve percentage for each respective loan portfolio is applied to the remaining unused portion of the expected commitment balance and the expected funded commitment in determining the allowance for credit loss on off-balance sheet credit exposures. Section 4013 of the CARES Act The Company implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Company elected to not apply troubled debt restructuring classification to any COVID-19 related loan modifications that were performed after March 1, 2020 to borrowers who were current as of December 31, 2019. Accordingly, these modifications were not classified as troubled debt restructurings (“TDRs”). In addition, for loans modified in response to the COVID-19 pandemic that did not meet the above criteria (e.g., current payment status at December 31, 2019), the Company applied the guidance included in an interagency statement issued by the bank regulatory agencies. This guidance states that loan modifications performed in light of the COVID-19 pandemic, including loan payment deferrals that are up to six months in duration, that were granted to borrowers who were current as of the implementation date of a loan modification program or modifications granted under government mandated modification programs, are not TDRs. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and non-accrual status has not been impacted during the deferral period. Deferrals consist mainly of 90-day principal and interest deferral with the ability to extend an additional 90-day period at the Bank’s option. Interest income has continued to be recognized over the contractual life of the loan. At June 30, 2020, loans with an aggregate outstanding balance of approximately $4.07 billion were in COVID-19 related deferment. For the three months ended June 30, 2020, accrued and unpaid interest for loans on deferral totaled $31.5 million . |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Summarizes the estimated fair values of the assets acquired and liabilities | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for Gold Coast, net of cash consideration paid: At April 3, 2020 (In millions) Cash and cash equivalents $ 7.3 Debt securities available-for-sale 51.5 Debt securities held to maturity 8.4 Loans receivable, net 443.5 Accrued interest receivable 1.3 Right-of-use assets 3.7 Net deferred tax asset 3.9 Intangible assets 14.5 Other assets 1.2 Total assets acquired 535.3 Deposits 489.9 Borrowed funds 14.9 Other liabilities 9.7 Total liabilities assumed 514.5 Net assets acquired $ 20.8 |
Summary of purchased loans for credit quality carrying amount | e Company has purchased loans which have been determined to be PCD. The carrying amount of those loans was as follows: At April 3, 2020 (In millions) Purchase price of loans at acquisition $ 244.7 Allowance for credit losses at acquisition 4.2 Non-credit discount (premium) at acquisition 2.6 Par value of acquired loans at acquisition $ 251.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Summary of our earnings per share calculations and reconciliation of basic to diluted earnings per share | The following is a summary of our earnings per share calculations and reconciliation of basic to diluted earnings per share. For the Three Months Ended June 30, 2020 2019 (Dollars in thousands, except per share data) Earnings for basic and diluted earnings per common share Earnings applicable to common stockholders $ 42,611 $ 46,624 Shares Weighted-average common shares outstanding - basic 236,248,296 263,035,892 Effect of dilutive common stock equivalents (1) 133,807 441,585 Weighted-average common shares outstanding - diluted 236,382,103 263,477,477 Earnings per common share Basic $ 0.18 $ 0.18 Diluted $ 0.18 $ 0.18 (1) For the three months ended June 30, 2020 and 2019 , there were 7,442,906 and 10,749,549 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. For the Six Months Ended June 30, 2020 2019 (Dollars in thousands, except per share data) Earnings for basic and diluted earnings per common share Earnings applicable to common stockholders $ 82,123 $ 94,782 Shares Weighted-average common shares outstanding - basic 234,755,591 265,337,191 Effect of dilutive common stock equivalents (1) 171,829 494,230 Weighted-average common shares outstanding - diluted 234,927,420 265,831,421 Earnings per common share Basic $ 0.35 $ 0.36 Diluted $ 0.35 $ 0.36 (1) For the six months ended June 30, 2020 and 2019 , there were 6,378,766 and 10,705,374 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of disaggregated net gains and losses on equity securities | The following table presents the disaggregated net gains on equity securities reported in the Consolidated Statements of Income: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Net gains recognized on equity securities $ 28 71 107 135 Less: Net gains recognized on equity securities sold — — — — Unrealized gains recognized on equity securities $ 28 71 107 135 |
Summary of securities | The following tables present the carrying value, gross unrealized gains and losses, and estimated fair value for available-for-sale debt securities and the amortized cost, net unrealized losses, carrying value, gross unrecognized gains and losses, estimated fair value and allowance for credit losses for held-to-maturity debt securities as of the dates indicated. At June 30, 2020 Carrying value Gross unrealized gains Gross unrealized losses Estimated fair value (In thousands) Available-for-sale: Debt securities: Government-sponsored enterprises $ 4,598 267 33 4,832 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 1,240,918 34,920 13 1,275,825 Federal National Mortgage Association 1,267,304 44,212 379 1,311,137 Government National Mortgage Association 286,873 8,043 143 294,773 Total mortgage-backed securities available-for-sale 2,795,095 87,175 535 2,881,735 Total debt securities available-for-sale $ 2,799,693 87,442 568 2,886,567 At June 30, 2020 Amortized cost Net unrealized losses (1) Carrying value Gross unrecognized gains (2) Gross unrecognized losses (2) Estimated fair value (In thousands) Held-to-maturity: Debt securities: Government-sponsored enterprises $ 51,884 — 51,884 3,477 — 55,361 Municipal bonds 238,725 — 238,725 9,519 — 248,244 Corporate and other debt securities 110,163 14,150 96,013 14,742 2,907 107,848 Total debt securities held-to-maturity 400,772 14,150 386,622 27,738 2,907 411,453 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 266,073 98 265,975 10,257 — 276,232 Federal National Mortgage Association 491,267 261 491,006 23,564 42 514,528 Government National Mortgage Association 58,042 — 58,042 2,553 — 60,595 Total mortgage-backed securities held-to-maturity 815,382 359 815,023 36,374 42 851,355 Total debt securities held-to-maturity $ 1,216,154 14,509 1,201,645 64,112 2,949 1,262,808 Allowance for credit losses 3,244 Total debt securities held-to-maturity, net of allowance for credit losses 1,198,401 (1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the previously recorded other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities. (2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet. Effective January 1, 2020, held-to-maturity debt securities are evaluated for credit losses to determine if an allowance is necessary. Any allowance required is recorded through the provision for credit losses. At December 31, 2019 Carrying value Gross unrealized gains Gross unrealized losses Estimated fair value (In thousands) Available-for-sale: Mortgage-backed securities: Federal Home Loan Mortgage Corporation $ 1,223,587 17,528 736 1,240,379 Federal National Mortgage Association 1,159,446 18,917 314 1,178,049 Government National Mortgage Association 273,676 3,333 47 276,962 Total debt securities available-for-sale $ 2,656,709 39,778 1,097 2,695,390 At December 31, 2019 Amortized cost Net unrealized losses (1) Carrying value Gross unrecognized gains (2) Gross unrecognized losses (2) Estimated fair value (In thousands) Held-to-maturity: Debt securities: Government-sponsored enterprises $ 58,624 — 58,624 188 500 58,312 Municipal bonds 143,151 — 143,151 3,797 43 146,905 Corporate and other debt securities 87,322 14,785 72,537 26,158 — 98,695 Total debt securities held-to-maturity 289,097 14,785 274,312 30,143 543 303,912 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 262,079 134 261,945 3,533 129 265,349 Federal National Mortgage Association 542,583 373 542,210 7,959 307 549,862 Government National Mortgage Association 70,348 — 70,348 633 — 70,981 Total mortgage-backed securities held-to-maturity 875,010 507 874,503 12,125 436 886,192 Total debt securities held-to-maturity $ 1,164,107 15,292 1,148,815 42,268 979 1,190,104 (1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities. (2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet. |
Gross unrealized losses on debt securities and the estimated fair value of the related securities, aggregated by investment category | Gross unrealized losses on debt securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019 , were as follows: June 30, 2020 Less than 12 months 12 months or more Total Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses (In thousands) Available-for-sale: Debt securities: Government-sponsored enterprises $ 2,429 33 — — 2,429 33 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 34,659 13 — — 34,659 13 Federal National Mortgage Association 100,489 379 — — 100,489 379 Government National Mortgage Association 48,150 143 — — 48,150 143 Total mortgage-backed securities available-for-sale 183,298 535 — — 183,298 535 Total debt securities available-for-sale 185,727 568 — — 185,727 568 Held-to-maturity: Debt securities: Corporate and other debt securities 32,610 2,907 — — 32,610 2,907 Mortgage-backed securities: Federal National Mortgage Association 5,073 42 — — 5,073 42 Total debt securities held-to-maturity 37,683 2,949 — — 37,683 2,949 Total $ 223,410 3,517 — — 223,410 3,517 December 31, 2019 Less than 12 months 12 months or more Total Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses (In thousands) Available-for-sale: Mortgage-backed securities: Federal Home Loan Mortgage Corporation $ 215,160 736 — — 215,160 736 Federal National Mortgage Association 80,298 297 12,972 17 93,270 314 Government National Mortgage Association 20,078 47 — — 20,078 47 Total debt securities available-for-sale 315,536 1,080 12,972 17 328,508 1,097 Held-to-maturity: Debt securities: Government-sponsored enterprises 31,696 500 — — 31,696 500 Municipal bonds 23,596 43 — — 23,596 43 Total debt securities held-to-maturity 55,292 543 — — 55,292 543 Mortgage-backed securities: Federal Home Loan Mortgage Corporation 20,860 64 11,065 65 31,925 129 Federal National Mortgage Association 7,911 52 37,316 255 45,227 307 Total mortgage-backed securities held-to-maturity 28,771 116 48,381 320 77,152 436 Total debt securities held-to-maturity 84,063 659 48,381 320 132,444 979 Total $ 399,599 1,739 61,353 337 460,952 2,076 |
The amortized cost and estimated fair value of debt securities by contract maturity | Excluding the allowance for credit losses, the amortized cost and estimated fair value of debt securities other than mortgage-backed securities at June 30, 2020 , by contractual maturity, are shown below. June 30, 2020 Carrying value Estimated fair value (In thousands) Due in one year or less $ 55,512 55,512 Due after one year through five years 10,397 10,516 Due after five years through ten years 60,761 62,734 Due after ten years 259,952 282,691 Total $ 386,622 411,453 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of loan portfolio | The detail of the loan portfolio as of June 30, 2020 and December 31, 2019 was as follows: June 30, December 31, (In thousands) Multi-family loans $ 7,377,929 7,813,236 Commercial real estate loans 4,873,353 4,831,347 Commercial and industrial loans 3,428,916 2,951,306 Construction loans 304,460 262,866 Total commercial loans 15,984,658 15,858,755 Residential mortgage loans 4,702,957 5,144,718 Consumer and other loans 674,392 699,796 Total loans 21,362,007 21,703,269 Deferred fees, premiums and other, net (1) (10,044 ) 907 Allowance for credit losses (273,319 ) (228,120 ) Net loans $ 21,078,644 21,476,056 (1) Included in deferred fees and premiums are accretable purchase accounting adjustments in connection with loans acquired and an adjustment to the carrying amount of the residential loans hedged. |
Financing receivable credit quality indicators | The following table presents the risk category of loans as of June 30, 2020 by class of loan and vintage year: Term Loans by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Total (In thousands) Multi-family Pass $ 365,777 711,763 1,384,829 833,115 1,762,574 1,450,948 9,751 6,518,757 Watch 13,160 21,171 107,311 104,589 149,425 58,043 1,700 455,399 Special mention 4,595 — 7,465 3,310 77,663 55,343 — 148,376 Substandard — — — 9,455 93,115 151,446 1,381 255,397 Total Multi-family 383,532 732,934 1,499,605 950,469 2,082,777 1,715,780 12,832 7,377,929 Commercial real estate Pass 193,001 861,323 765,976 519,365 965,191 985,225 25,409 4,315,490 Watch 10,237 38,913 35,808 31,466 120,624 29,793 1,885 268,726 Special mention — — 2,511 17,993 45,067 44,774 5,534 115,879 Substandard — 1,000 4,649 26,549 52,915 88,145 — 173,258 Total Commercial real estate 203,238 901,236 808,944 595,373 1,183,797 1,147,937 32,828 4,873,353 Commercial and industrial Pass 644,002 709,236 361,615 174,106 413,043 234,237 215,366 2,751,605 Watch 31,947 127,673 56,168 82,914 31,107 31,816 30,133 391,758 Special mention — 26,265 2,616 26,424 28,854 54,555 6,470 145,184 Substandard 3,250 5,511 62,411 4,655 28,456 21,702 14,384 140,369 Total Commercial and industrial 679,199 868,685 482,810 288,099 501,460 342,310 266,353 3,428,916 Construction Pass 20,953 53,744 39,970 — — — 156,408 271,075 Watch 9,523 — — — — — 11,732 21,255 Special mention — — — — — — — — Substandard — — — — — — 12,130 12,130 Total Construction 30,476 53,744 39,970 — — — 180,270 304,460 Residential mortgage Pass 188,712 605,763 592,532 713,647 654,831 1,881,016 — 4,636,501 Watch 112 — 1,048 514 63 7,328 — 9,065 Special mention — — 1,164 312 630 2,234 — 4,340 Substandard — 1,523 2,010 443 839 48,134 102 53,051 Total residential mortgage 188,824 607,286 596,754 714,916 656,363 1,938,712 102 4,702,957 Consumer and other Pass 2,433 8,815 7,170 9,328 13,725 62,461 553,837 657,769 Watch — 134 — — 117 514 10,260 11,025 Special mention — — — — — 177 2,969 3,146 Substandard — — — — 123 1,738 591 2,452 Total Consumer and other 2,433 8,949 7,170 9,328 13,965 64,890 567,657 674,392 Total $ 1,487,702 3,172,834 3,435,253 2,558,185 4,438,362 5,209,629 1,060,042 21,362,007 The following table presents the risk category of loans as of December 31, 2019 by class of loan: Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Commercial loans: Multi-family $ 6,326,412 942,438 167,748 376,638 — — 7,813,236 Commercial real estate 4,023,642 489,514 118,426 199,765 — — 4,831,347 Commercial and industrial 2,031,148 693,397 111,389 115,372 — — 2,951,306 Construction 169,236 75,319 — 18,311 — — 262,866 Total commercial loans 12,550,438 2,200,668 397,563 710,086 — — 15,858,755 Residential mortgage 5,074,334 14,414 5,429 50,541 — — 5,144,718 Consumer and other 687,302 9,157 1,174 2,163 — — 699,796 Total $ 18,312,074 2,224,239 404,166 762,790 — — 21,703,269 |
Payment status of the recorded investment in past due loans | The following tables present the payment status of the recorded investment in past due loans as of June 30, 2020 and December 31, 2019 by class of loans: June 30, 2020 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 25,795 19,139 46,970 91,904 7,286,025 7,377,929 Commercial real estate 11,420 3,328 5,143 19,891 4,853,462 4,873,353 Commercial and industrial 7,513 1,178 7,588 16,279 3,412,637 3,428,916 Construction — — — — 304,460 304,460 Total commercial loans 44,728 23,645 59,701 128,074 15,856,584 15,984,658 Residential mortgage 9,835 4,588 31,947 46,370 4,656,587 4,702,957 Consumer and other 11,084 3,147 1,769 16,000 658,392 674,392 Total $ 65,647 31,380 93,417 190,444 21,171,563 21,362,007 December 31, 2019 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 45,606 1,946 22,055 69,607 7,743,629 7,813,236 Commercial real estate 7,958 525 3,787 12,270 4,819,077 4,831,347 Commercial and industrial 7,774 2,767 5,053 15,594 2,935,712 2,951,306 Construction — — — — 262,866 262,866 Total commercial loans 61,338 5,238 30,895 97,471 15,761,284 15,858,755 Residential mortgage 16,980 6,195 27,729 50,904 5,093,814 5,144,718 Consumer and other 9,157 1,174 1,330 11,661 688,135 699,796 Total $ 87,475 12,607 59,954 160,036 21,543,233 21,703,269 |
Non-accrual loans status | The following table presents individually evaluated collateral-dependent loans by class of loans at the date indicated: June 30, 2020 Real Estate Other Total (Dollars in thousands) Multi-family $ 41,911 — 41,911 Commercial real estate 6,697 — 6,697 Commercial and industrial 4,369 9,711 14,080 Construction — — — Total commercial loans 52,977 9,711 62,688 Residential mortgage and consumer 25,724 114 25,838 Total collateral-dependent loans $ 78,701 9,825 88,526 June 30, 2020 and December 31, 2019 , these loans are comprised of the following: June 30, 2020 December 31, 2019 # of loans Amount # of loans Amount (Dollars in thousands) TDR with payment status current classified as non-accrual: Commercial real estate 2 $ 3,631 2 $ 2,360 Residential mortgage and consumer 33 5,758 25 4,218 Total TDR with payment status current classified as non-accrual 35 $ 9,389 27 $ 6,578 The following table presents TDR loans which were also 30 - 89 days delinquent and classified as non-accrual at the dates indicated: June 30, 2020 December 31, 2019 # of loans Amount # of loans Amount (Dollars in thousands) TDR 30-89 days delinquent classified as non-accrual: Residential mortgage and consumer 8 $ 1,079 18 $ 3,331 Total TDR 30-89 days delinquent classified as non-accrual 8 $ 1,079 18 $ 3,331 The following table presents non-accrual loans at the date indicated: June 30, 2020 December 31, 2019 # of loans Amount # of loans Amount (Dollars in thousands) Non-accrual: Multi-family 14 $ 48,363 8 $ 23,322 Commercial real estate 22 12,289 22 11,945 Commercial and industrial 29 15,627 18 12,482 Construction — — — — Total commercial loans 65 76,279 48 47,749 Residential mortgage and consumer 255 50,564 260 47,566 Total non-accrual loans 320 $ 126,843 308 $ 95,315 |
Troubled debt restructured loans | The following tables present the total TDR loans at June 30, 2020 and December 31, 2019 : June 30, 2020 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Commercial real estate — $ — 2 $ 3,631 2 $ 3,631 Commercial and industrial 3 2,805 2 3,881 5 6,686 Total commercial loans 3 2,805 4 7,512 7 10,317 Residential mortgage and consumer 49 9,347 79 16,491 128 25,838 Total 52 $ 12,152 83 $ 24,003 135 $ 36,155 December 31, 2019 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Commercial real estate — $ — 3 $ 2,362 3 $ 2,362 Commercial and industrial 3 2,535 2 4,682 5 7,217 Total commercial loans 3 2,535 5 7,044 8 9,579 Residential mortgage and consumer 54 10,549 78 16,458 132 27,007 Total 57 $ 13,084 83 $ 23,502 140 $ 36,586 |
Schedule of troubled debt restructuring | The following tables present information about TDRs that occurred during the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, 2020 2019 Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment (Dollars in thousands) Troubled Debt Restructurings: Commercial real estate 1 $ 1,330 $ 1,330 — $ — $ — Residential mortgage and consumer — — — 4 732 732 Six Months Ended June 30, 2020 2019 Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment (Dollars in thousands) Troubled Debt Restructurings: Commercial real estate 1 $ 1,330 $ 1,330 — $ — $ — Commercial and industrial 1 933 933 — — — Residential mortgage and consumer — — — 10 2,396 2,396 |
Schedule of troubled debt restructuring, interest yield | The following tables present information about pre and post modification interest yield for TDRs which occurred during the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, 2020 2019 Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Troubled Debt Restructurings: Commercial real estate 1 3.88 % 3.88 % — — % — % Residential mortgage and consumer — — % — % 4 5.22 % 4.96 % Six Months Ended June 30, 2020 2019 Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Troubled Debt Restructurings: Commercial real estate 1 3.88 % 3.88 % — — % — % Commercial and industrial 1 4.75 % 4.75 % — — % — % Residential mortgage and consumer — — % — % 10 5.25 % 4.92 % |
Impaired financing receivables | The following table presents, under previously applicable GAAP, loans individually evaluated for impairment by portfolio segment as of December 31, 2019 : December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance: Multi-family $ 22,169 23,581 — 23,298 47 Commercial real estate 7,875 10,913 — 8,127 199 Commercial and industrial 12,476 21,090 — 14,860 351 Construction — — — — — Total commercial loans 43 56 — 46 1 Residential mortgage and consumer 13,783 18,066 — 13,811 267 With an allowance recorded: Multi-family — — — — — Commercial real estate — — — — — Commercial and industrial — — — — — Construction — — — — — Total commercial loans — — — — — Residential mortgage and consumer 13,220 13,881 1,763 13,321 153 Total: Multi-family 22,169 23,581 — 23,298 47 Commercial real estate 7,875 10,913 — 8,127 199 Commercial and industrial 12,476 21,090 — 14,860 351 Construction — — — — — Total commercial loans 43 56 — 46 1 Residential mortgage and consumer 27,003 31,947 1,763 27,132 420 Total impaired loans $ 69,523 87,531 1,763 73,417 1,017 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Financing receivable, allowance for credit loss | An analysis of the allowance for credit losses for loans receivable is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Balance at beginning of the period $ 243,288 234,717 228,120 235,817 Impact of adopting ASC 326 — — (3,551 ) — Gross charge offs (5,059 ) (2,181 ) (15,988 ) (7,626 ) Recoveries 985 2,401 3,881 3,746 Net charge-offs (4,074 ) 220 (12,107 ) (3,880 ) Allowance at acquisition on loans purchased with credit deterioration 4,180 — 4,180 — Provision for credit loss expense 29,925 (3,000 ) 56,677 — Balance at end of the period $ 273,319 231,937 273,319 231,937 |
Summary of allowance for credit losses for loans by portfolio segment | The following tables present the balance in the allowance for credit losses for loans by portfolio segment as of June 30, 2020 and December 31, 2019 : June 30, 2020 Multi- Family Loans Commercial Real Estate Loans Commercial and Industrial Loans Construction Loans Residential Mortgage Loans Consumer and Other Loans Unallocated Total (Dollars in thousands) Allowance for credit losses: Beginning balance-December 31, 2019 $ 74,099 50,925 74,396 6,816 17,391 2,548 1,945 228,120 Impact of adopting ASC 326 (9,741 ) (4,631 ) (7,511 ) (1,901 ) 20,089 2,089 (1,945 ) (3,551 ) Charge-offs (4,144 ) (189 ) (10,835 ) — (805 ) (15 ) — (15,988 ) Recoveries — 320 2,939 — 487 135 — 3,881 Allowance at acquisition on loans purchased with credit deterioration 209 3,208 287 127 344 5 — 4,180 Provision for credit loss expense (237 ) 34,800 21,340 4,268 (3,910 ) 416 — 56,677 Ending balance-June 30, 2020 $ 60,186 84,433 80,616 9,310 33,596 5,178 — 273,319 December 31, 2019 Multi- Family Loans Commercial Real Estate Loans Commercial and Industrial Loans Construction Loans Residential Mortgage Loans Consumer and Other Loans Unallocated Total (Dollars in thousands) Allowance for credit losses: Beginning balance-December 31, 2018 $ 82,876 48,449 71,084 7,486 20,776 3,102 2,044 235,817 Charge-offs (2,973 ) (151 ) (6,833 ) — (2,241 ) (934 ) — (13,132 ) Recoveries 1,244 2,204 1,203 — 1,448 336 — 6,435 Provision for credit loss expense (7,048 ) 423 8,942 (670 ) (2,592 ) 44 (99 ) (1,000 ) Ending balance-December 31, 2019 $ 74,099 50,925 74,396 6,816 17,391 2,548 1,945 228,120 |
Debt securities, held-to-maturity, allowance for credit loss | An analysis of the allowance for credit losses for debt securities held-to-maturity is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 (In thousands) Balance at beginning of the period $ 2,995 — Impact of adopting ASC 326 — 2,564 Provision for credit losses 249 680 Balance at end of the period $ 3,244 3,244 The following tables present the balance in the allowance for credit losses for debt securities held-to-maturity by portfolio segment as of June 30, 2020 : June 30, 2020 Municipal Bonds Corporate and Other Debt Securities Total (Dollars in thousands) Allowance for credit losses: Beginning balance-December 31, 2019 $ — — — Impact of adopting ASC 326 17 2,547 2,564 Provision for credit loss 10 670 680 Ending balance-June 30, 2020 $ 27 3,217 3,244 |
Schedule of fair value, off-balance sheet risks | An analysis of the allowance for credit losses for off-balance sheet credit exposures is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 (In thousands) Balance at beginning of the period $ 17,142 425 Impact of adopting ASC 326 — 12,674 Provision for credit losses 3,105 7,148 Balance at end of the period $ 20,247 20,247 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deposits [Abstract] | |
Summary of deposits | Deposits are summarized as follows: June 30, 2020 December 31, 2019 (In thousands) Non-interest bearing: Checking accounts $ 3,040,450 2,472,232 Interest bearing: Checking accounts 5,852,330 5,512,979 Money market deposits 4,311,095 3,817,718 Savings 2,062,445 2,050,101 Certificates of deposit 4,220,982 4,007,308 Total deposits $ 19,487,302 17,860,338 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | The following table summarizes goodwill and intangible assets at June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 (In thousands) Mortgage servicing rights $ 9,667 12,125 Core deposit premiums 4,351 2,530 Other 625 668 Total other intangible assets 14,643 15,323 Goodwill 94,535 82,546 Goodwill and intangible assets $ 109,178 97,869 |
Summary of intangible assets | The following table summarizes other intangible assets as of June 30, 2020 and December 31, 2019 : Gross Intangible Asset Accumulated Amortization Valuation Allowance Net Intangible Assets (In thousands) June 30, 2020 Mortgage servicing rights $ 16,942 (4,621 ) (2,654 ) 9,667 Core deposit premiums 23,063 (18,712 ) — 4,351 Other 1,150 (525 ) — 625 Total other intangible assets $ 41,155 (23,858 ) (2,654 ) 14,643 December 31, 2019 Mortgage servicing rights $ 19,368 (7,140 ) (103 ) 12,125 Core deposit premiums 20,561 (18,031 ) — 2,530 Other 1,150 (482 ) — 668 Total other intangible assets $ 41,079 (25,653 ) (103 ) 15,323 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Balance sheet information related to leases | The following table presents the balance sheet information related to our operating leases: June 30, 2020 December 31, 2019 (Dollars in thousands) Operating lease right-of-use assets $ 172,432 175,143 Operating lease liabilities 184,572 185,827 Weighted average remaining lease term 9.3 years 9.7 years Weighted average discount rate 2.70 % 2.74 % |
Lease cost | The following table presents the components of total operating lease cost recognized in the Consolidated Statements of Income: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Included in office occupancy and equipment expense: Operating lease cost $ 6,526 6,323 12,807 12,643 Short-term lease cost 103 72 189 155 Variable lease cost — — (1 ) — Included in other income: Sublease income 51 67 118 134 The following table presents supplemental cash flow information related to operating leases: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 5,872 6,158 11,579 12,296 Operating lease liabilities arising from obtaining right-of-use assets (non-cash): Operating leases 7,278 1,773 7,837 1,791 |
Maturity of operating lease liabilities | Future minimum operating lease payments and reconciliation to operating lease liabilities at June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 (In thousands) 2020 $ 13,105 24,013 2021 25,232 23,888 2022 23,589 22,270 2023 22,486 21,227 2024 22,440 21,162 Thereafter 103,066 100,662 Total lease payments 209,918 213,222 Less: Imputed interest (25,346 ) (27,395 ) Total operating lease liabilities $ 184,572 185,827 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based payment award, stock options, valuation assumptions | The fair value of stock options granted as part of the 2015 Plan was estimated utilizing the Black-Scholes option pricing model using the following assumptions for the periods presented below: Six Months Ended June 30, 2019 Weighted average expected life (in years) 6.50 Weighted average risk-free rate of return 2.50 % Weighted average volatility 18.70 % Dividend yield 3.57 % Weighted average fair value of options granted $ 1.60 Total stock options granted 50,000 |
Schedule of share based compensation expense | The following table presents the share-based compensation expense for the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Stock option expense $ 1,011 1,350 1,999 2,652 Restricted stock expense 2,943 3,636 5,844 6,907 Total share-based compensation expense $ 3,954 4,986 7,843 9,559 |
Schedule of company’s stock option activity and related information | The following is a summary of the Company’s stock option activity and related information for the six months ended June 30, 2020 : Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2019 5,654,461 $ 12.46 5.5 $ 363 Granted — — — Exercised — — — Forfeited (10,802 ) 12.55 Expired (39,087 ) 12.54 Outstanding at June 30, 2020 5,604,572 12.46 5.0 29 Exercisable at June 30, 2020 3,800,760 $ 12.43 5.0 $ 29 |
Schedule of status of the Company’s restricted shares | The following is a summary of the status of the Company’s restricted shares as of June 30, 2020 and changes therein during the six months ended: Number of Shares Awarded Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 2,894,352 $ 12.57 Granted 68,923 10.67 Vested (954,345 ) 12.63 Forfeited (15,973 ) 12.34 Outstanding and non-vested at June 30, 2020 1,992,957 $ 12.48 |
Net Periodic Benefit Plan Exp_2
Net Periodic Benefit Plan Expense (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of of net periodic benefit cost for the Directors’ Plan and the wage replacement plan | The components of net periodic benefit cost for the Directors’ Plan and the SERP II are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Interest cost $ 324 397 648 794 Amortization of: Net loss 299 — 598 — Total net periodic benefit cost $ 623 397 1,246 794 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of the company’s derivative financial instruments | Fair Values of Derivative Instruments on the Balance Sheet Asset Derivatives Liability Derivatives June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (in millions) (In thousands) (in millions) (In thousands) (in millions) (In thousands) (in millions) (In thousands) Derivatives designated as hedging instruments: Interest Rate Swaps $ 3,900 Other assets $ 141 $ 2,675 Other assets $ 559 $ — Other liabilities $ — $ — Other liabilities $ — Total derivatives designated as hedging instruments $ 141 $ 559 $ — $ — Derivatives not designated as hedging instruments: Interest Rate Swaps $ 718 Other assets $ 35,831 $ 652 Other assets $ 5,430 $ — Other liabilities $ — $ — Other liabilities $ — Other Contracts — Other assets — — Other assets — 22 Other liabilities 250 22 Other liabilities 125 Total derivatives not designated as hedging instruments $ 35,831 $ 5,430 $ 250 $ 125 |
Effect of the company’s derivative financial instruments on the consolidated statement of income | The following table presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of June 30, 2020 and 2019 . For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 The effects of fair value and cash flow hedging: Income statement location (In thousands) Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items Interest income on loans $ (2,239 ) 5,297 4,530 6,219 Derivatives designated as hedging instruments Interest income on loans (136 ) (5,261 ) (7,324 ) (6,282 ) Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) Interest expense on borrowings (6,628 ) 1,728 (8,717 ) 3,818 Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) as a result that a forecasted transaction is no longer probable of occurring Interest expense on borrowings — — — — Total amounts of income and expense line items presented in the income statement in which the effects of fair value are recorded $ (9,003 ) 1,764 (11,511 ) 3,755 The following table presents the effect of the Company’s derivative financial instruments on the Accumulated Comprehensive Income (Loss) for the three months ended June 30, 2020 and 2019 . Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Cash Flow Hedges - Interest rate swaps Amount of loss recognized in other comprehensive income (loss) $ (17,040 ) (38,664 ) (117,401 ) (58,345 ) Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) to interest expense (6,628 ) 1,728 (8,717 ) 3,818 |
Schedule of cumulative basis adjustment for fair value hedges | As of June 30, 2020 and December 31, 2019 , the following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustment for fair value hedges: Balance sheet location Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 (In thousands) Loans receivable, net (1)(2) $ 482,649 478,120 $ 10,515 6,426 (1) At June 30, 2020 , the amortized cost basis of the closed portfolios used in these hedging relationships was $1.23 billion ; the cumulative basis adjustments associated with these hedging relationships was $10.5 million ; and the amounts of the designated hedged items were $482.6 million . (2) The balance of Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) as of June 30, 2020 includes $2.9 million of hedging adjustment on discontinued hedging relationships. |
Derivatives not designated as hedging instruments | The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income as of June 30, 2020 : Consolidated Statements of Income location Amount of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Other Contracts Other income / (expense) $ 4 (40 ) $ (125 ) (11 ) Total $ 4 (40 ) $ (125 ) (11 ) |
Offsetting assets | The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Company’s Consolidated Balance Sheets. Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Posted Net Amount (In thousands) June 30, 2020 Assets: Derivative contracts $ 257 — 257 — — 257 Liabilities: Derivative contracts 250 — 250 — — 250 December 31, 2019 Assets: Derivative contracts $ 821 — 821 — — 821 Liabilities: Derivative contracts $ 125 — 125 — — 125 |
Offsetting liabilities | The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Company’s Consolidated Balance Sheets. Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Posted Net Amount (In thousands) June 30, 2020 Assets: Derivative contracts $ 257 — 257 — — 257 Liabilities: Derivative contracts 250 — 250 — — 250 December 31, 2019 Assets: Derivative contracts $ 821 — 821 — — 821 Liabilities: Derivative contracts $ 125 — 125 — — 125 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Components of comprehensive income | The components of comprehensive income, gross and net of tax, are as follows: Three Months Ended June 30, 2020 2019 Gross Tax Net Gross Tax Net (Dollars in thousands) Net income $ 58,829 (16,218 ) 42,611 65,345 (18,721 ) 46,624 Other comprehensive loss: Change in funded status of retirement obligations 416 (117 ) 299 19 (5 ) 14 Unrealized (losses) gains on debt securities available-for-sale (1,216 ) 219 (997 ) 21,767 (5,199 ) 16,568 Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale 73 (17 ) 56 443 (125 ) 318 Reclassification adjustment for security losses included in net income — — — 5,690 (1,469 ) 4,221 Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 385 (108 ) 277 251 (70 ) 181 Net losses on derivatives (10,412 ) 2,927 (7,485 ) (40,392 ) 11,354 (29,038 ) Total other comprehensive loss (10,754 ) 2,904 (7,850 ) (12,222 ) 4,486 (7,736 ) Total comprehensive income $ 48,075 (13,314 ) 34,761 53,123 (14,235 ) 38,888 Six Months Ended June 30, 2020 2019 Gross Tax Net Gross Tax Net (Dollars in thousands) Net income $ 112,988 (30,865 ) 82,123 132,808 (38,026 ) 94,782 Other comprehensive loss: Change in funded status of retirement obligations 444 (125 ) 319 37 (10 ) 27 Unrealized gains on debt securities available-for-sale 48,193 (11,562 ) 36,631 43,281 (10,474 ) 32,807 Accretion of loss on securities reclassified to held-to-maturity from available-for-sale 147 (35 ) 112 600 (169 ) 431 Reclassification adjustment for security losses included in net income — — — 5,690 (1,469 ) 4,221 Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 635 (178 ) 457 502 (141 ) 361 Net losses on derivatives (108,684 ) 30,551 (78,133 ) (62,163 ) 17,474 (44,689 ) Total other comprehensive loss (59,265 ) 18,651 (40,614 ) (12,053 ) 5,211 (6,842 ) Total comprehensive income $ 53,723 (12,214 ) 41,509 120,755 (32,815 ) 87,940 |
Component of accumulated other comprehensive loss | The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the six months ended June 30, 2020 and 2019 : Change in funded status of retirement obligations Accretion of loss on debt securities reclassified to held-to-maturity Unrealized gains (losses) on debt securities available-for-sale and gains included in net income Other-than- temporary impairment accretion on debt securities Unrealized (losses) gains on derivatives Total accumulated other comprehensive loss (Dollars in thousands) Balance - December 31, 2019 $ (6,690 ) (386 ) 29,456 (10,629 ) (30,373 ) (18,622 ) Net change 319 112 36,631 457 (78,133 ) (40,614 ) Balance - June 30, 2020 $ (6,371 ) (274 ) 66,087 (10,172 ) (108,506 ) (59,236 ) Balance - December 31, 2018 $ (3,018 ) (921 ) (8,884 ) (11,397 ) 12,651 (11,569 ) Net change 27 431 37,028 361 (44,689 ) (6,842 ) Balance - June 30, 2019 $ (2,991 ) (490 ) 28,144 (11,036 ) (32,038 ) (18,411 ) The following table presents information about amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income and the affected line item in the statement where net income is presented. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Reclassification adjustment for losses included in net income Loss on securities, net $ — 5,690 — 5,690 Change in funded status of retirement obligations Amortization of net loss (gain) 299 (2 ) 599 (4 ) Interest expense Reclassification adjustment for unrealized losses (gains) on derivatives 6,092 (1,728 ) 8,181 (3,818 ) Total before tax 6,391 3,960 8,780 1,868 Income tax expense (1,762 ) (973 ) (2,398 ) (375 ) Net of tax $ 4,629 2,987 6,382 1,493 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of components of stockholders’ equity | The changes in the components of stockholders’ equity for the three months ended June 30, 2020 and 2019 are as follows: Common stock Additional paid-in capital Retained earnings Treasury stock Unallocated common stock held by ESOP Accumulated other comprehensive loss Total stockholders’ equity (In thousands) Balance at March 31, 2019 $ 3,591 2,810,832 1,191,020 (958,425 ) (80,513 ) (10,675 ) 2,955,830 Net income — — 46,624 — — — 46,624 Other comprehensive loss, net of tax — — — — — (7,736 ) (7,736 ) Purchase of treasury stock (3,829,780 shares) — — — (44,023 ) — — (44,023 ) Treasury stock allocated to restricted stock plan (538,756 shares) — (6,500 ) (118 ) 6,618 — — — Compensation cost for stock options and restricted stock — 4,993 — — — — 4,993 Exercise of stock options — (221 ) — 712 — — 491 Restricted stock forfeitures (12,267 shares) — 154 (7 ) (147 ) — — — Cash dividend paid ($0.11 per common share) — — (30,646 ) — — — (30,646 ) ESOP shares allocated or committed to be released — 593 — — 749 — 1,342 Balance at June 30, 2019 $ 3,591 2,809,851 1,206,873 (995,265 ) (79,764 ) (18,411 ) 2,926,875 Balance at March 31, 2020 $ 3,591 2,826,288 1,247,028 (1,353,246 ) (77,517 ) (51,386 ) 2,594,758 Net income — — 42,611 — — — 42,611 Other comprehensive loss, net of tax — — — — — (7,850 ) (7,850 ) Common stock issued to finance acquisition 28 20,853 — — — — 20,881 Purchase of treasury stock (298,977 shares) — — — (2,429 ) — — (2,429 ) Treasury stock allocated to restricted stock plan (4,000 shares) — (36 ) (13 ) 49 — — — Compensation cost for stock options and restricted stock — 3,954 — — — — 3,954 Cash dividend paid ($0.12 per common share) — — (30,021 ) — — — (30,021 ) ESOP shares allocated or committed to be released — 247 — — 749 — 996 Balance at June 30, 2020 $ 3,619 2,851,306 1,259,605 (1,355,626 ) (76,768 ) (59,236 ) 2,622,900 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on recurring basis | The following tables provide the level of valuation assumptions used to determine the carrying value of our assets and liabilities measured at fair value on a recurring basis at June 30, 2020 and December 31, 2019 . Carrying Value at June 30, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets: Equity securities $ 6,190 6,190 — — Debt securities available for sale: Government-sponsored enterprises $ 4,832 — 4,832 — Mortgage-backed securities: Federal Home Loan Mortgage Corporation 1,275,825 — 1,275,825 — Federal National Mortgage Association 1,311,137 — 1,311,137 — Government National Mortgage Association 294,773 — 294,773 — Total debt securities available-for-sale $ 2,886,567 — 2,886,567 — Interest rate swaps $ 35,972 — 35,972 — Liabilities: Derivatives: Other contracts $ 250 — 250 — Total derivatives $ 250 — 250 — Carrying Value at December 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets: Equity securities $ 6,039 6,039 — — Debt securities available for sale: Mortgage-backed securities: Federal Home Loan Mortgage Corporation $ 1,240,379 — 1,240,379 — Federal National Mortgage Association 1,178,049 — 1,178,049 — Government National Mortgage Association 276,962 — 276,962 — Total debt securities available-for-sale $ 2,695,390 — 2,695,390 — Interest rate swaps $ 5,989 — 5,989 — Liabilities: Derivatives: Other contracts 125 — 125 — Total derivatives $ 125 — 125 — |
Carrying value of our assets measured at fair value on a non-recurring basis | The following tables provide the level of valuation assumptions used to determine the carrying value of our assets measured at fair value on a non-recurring basis at June 30, 2020 and December 31, 2019 . For the three months ended June 30, 2020 , there was no change to the carrying value of other real estate owned or loans held for sale. For the three months ended December 31, 2019 , there was no change to the carrying value of impaired loans or loans held for sale. Security Type Valuation Technique Unobservable Input Range Weighted Average Input Carrying Value at June 30, 2020 Minimum Maximum Total Level 1 Level 2 Level 3 (In thousands) MSR, net Estimated cash flow Prepayment speeds 9.5% 27.1% 23.70% $ 9,532 — — 9,532 Collateral-dependent loans Market comparable and estimated cash flow Lack of marketability and probability of default 0.06% 11.50% 10.18% 5,064 — — 5,064 $ 14,596 — — 14,596 Security Type Valuation Technique Unobservable Input Range Weighted Average Input Carrying Value at December 31, 2019 Minimum Maximum Total Level 1 Level 2 Level 3 (In thousands) MSR, net Estimated cash flow Prepayment speeds 6.6% 29.1% 11.04% $ 10,409 — — 10,409 Other real estate owned Market comparable Lack of marketability 0.0% 25.0% 2.70% 262 — — 262 $ 10,671 — — 10,671 |
Carrying amounts and estimated fair values | The carrying values and estimated fair values of the Company’s financial instruments are presented in the following table. June 30, 2020 Carrying Estimated Fair Value value Total Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 735,234 735,234 735,234 — — Equities 6,190 6,190 6,190 — — Debt securities available-for-sale 2,886,567 2,886,567 — 2,886,567 — Debt securities held-to-maturity, net 1,198,401 1,262,808 — 1,202,222 60,586 FHLB stock 229,829 229,829 229,829 — — Loans held for sale 39,767 39,767 — 39,767 — Net loans 21,078,644 21,369,385 — — 21,369,385 Derivative financial instruments 35,972 35,972 — 35,972 — Financial liabilities: Deposits, other than time deposits $ 15,266,320 15,266,320 15,266,320 — — Time deposits 4,220,982 4,243,734 — 4,243,734 — Borrowed funds 4,632,016 4,721,251 — 4,721,251 — Derivative financial instruments 250 250 — 250 — December 31, 2019 Carrying Estimated Fair Value value Total Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 174,915 174,915 174,915 — — Equities 6,039 6,039 6,039 — — Debt securities available-for-sale 2,695,390 2,695,390 — 2,695,390 — Debt securities held-to-maturity 1,148,815 1,190,104 — 1,116,771 73,333 FHLB stock 267,219 267,219 267,219 — — Loans held for sale 29,797 29,797 — 29,797 — Net loans 21,476,056 21,563,627 — — 21,563,627 Derivative financial instruments 5,989 5,989 — 5,989 — Financial liabilities: Deposits, other than time deposits $ 13,853,030 13,853,030 13,853,030 — — Time deposits 4,007,308 4,007,342 — 4,007,342 — Borrowed funds 5,827,111 5,834,895 — 5,834,895 — Derivative financial instruments 125 125 — 125 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Revenue from contracts with customers included in fees and service charges and other income was as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (Dollars in thousands) Revenue from contracts with customers included in: Fees and service charges $ 2,908 3,730 6,858 7,013 Other income 1,965 2,508 4,984 4,731 Total revenue from contracts with customers $ 4,873 6,238 11,842 11,744 |
Summary of Significant Accoun_3
Summary of Significant Accounting Principles (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Accounting Policies | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Allowance for credit loss | $ 273,319,000 | $ 273,319,000 | $ 231,937,000 | $ 243,288,000 | $ 228,120,000 | $ 234,717,000 | $ 235,817,000 | |
Debt securities, allowance for credit loss | 3,244,000 | 3,244,000 | 2,995,000 | 0 | ||||
Financing receivables gross | 21,362,007,000 | 21,362,007,000 | 21,703,269,000 | |||||
Cumulative effect change from ASU | 2,622,900,000 | 2,622,900,000 | $ 2,926,875,000 | 2,594,758,000 | 2,621,950,000 | 2,955,830,000 | 3,005,330,000 | |
Loans impairment analysis to include minimum commercial real estate, multi-family and construction loans outstanding balance | 1,000,000 | |||||||
Outstanding minimum balance of loans that are evaluated for impairment individually | 1,000,000 | 1,000,000 | ||||||
Loans deferred | 4,070,000,000 | 4,070,000,000 | ||||||
Accrued interest | 31,500,000 | |||||||
Accrued interest | $ 31,500,000 | $ 31,500,000 | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | ||||||||
Schedule of Accounting Policies | ||||||||
Allowance for credit loss | 0 | $ 11,700,000 | (3,551,000) | $ 0 | $ 0 | |||
Unfunded commitments, allowance for credit loss | 12,700,000 | |||||||
Debt securities, allowance for credit loss | $ 0 | 2,600,000 | 2,564,000 | |||||
Financing receivables gross | (3,600,000) | |||||||
Cumulative effect change from ASU | $ (8,500,000) | $ (8,491,000) |
Stock Transactions (Details)
Stock Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 25, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Equity [Abstract] | |||||
Percentage of shares to be repurchased (percentage) | 10.00% | ||||
Number of shares authorized to be repurchased (shares) | 28,886,780 | ||||
Purchase of treasury stock (shares) | 298,977 | 3,829,780 | 383,366 | 10,038,159 | |
Stock repurchased during period, value | $ 2,429 | $ 44,023 | $ 3,361 | $ 117,755 | |
Stock repurchase cost, per share (usd per share) | $ 8.77 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ / shares in Units, $ in Thousands, shares in Millions | Apr. 03, 2020USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares |
Business Acquisition | |||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | |
Goodwill | $ | $ 94,535 | $ 82,546 | |
Gold Coast Bancorp, Inc. | |||
Business Acquisition | |||
Shares issued to acquire business (shares) | shares | 2.8 | ||
Payments to acquire business | $ | $ 31,000 | ||
Percentage of common shares of acquiree converted into Investors Bancorp common stock (percentage) | 50.00% | ||
Percentage of acquiree shares exchanged for cash (percentage) | 50.00% | ||
Shares received in merger (shares) | 1.422 | ||
Common stock, par value (usd per share) | $ 0.01 | ||
Cash per share received in merger (usd per share) | $ 15.75 | ||
Goodwill | $ | $ 12,000 |
Business Combinations (Summariz
Business Combinations (Summarizes the estimated fair values of the assets acquired and liabilities) (Details) - Gold Coast Bancorp, Inc. $ in Millions | Apr. 03, 2020USD ($) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | |
Cash and cash equivalents | $ 7.3 |
Debt securities available-for-sale | 51.5 |
Debt securities held to maturity | 8.4 |
Loans receivable, net | 443.5 |
Accrued interest receivable | 1.3 |
Right-of-use assets | 3.7 |
Net deferred tax asset | 3.9 |
Intangible assets | 14.5 |
Other assets | 1.2 |
Total assets acquired | 535.3 |
Deposits | 489.9 |
Borrowed funds | 14.9 |
Other liabilities | 9.7 |
Total liabilities assumed | 514.5 |
Net assets acquired | $ 20.8 |
Business Combinations (Carrying
Business Combinations (Carrying amount of those loans) (Details) - Gold Coast Bancorp, Inc. $ in Millions | Apr. 03, 2020USD ($) |
Business Acquisition | |
Purchase price of loans at acquisition | $ 244.7 |
Allowance for credit losses at acquisition | 4.2 |
Non-credit discount (premium) at acquisition | 2.6 |
Par value of acquired loans at acquisition | $ 251.5 |
Earnings Per Share (Summary of
Earnings Per Share (Summary of Calculations and Reconciliation of Basic to Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings for basic and diluted earnings per common share | ||||
Earnings applicable to common stockholders | $ 42,611 | $ 46,624 | $ 82,123 | $ 94,782 |
Shares | ||||
Weighted-average common shares outstanding - basic (shares) | 236,248,296 | 263,035,892 | 234,755,591 | 265,337,191 |
Effect of dilutive common stock equivalents (shares) | 133,807 | 441,585 | 171,829 | 494,230 |
Weighted-average common shares outstanding - diluted (shares) | 236,382,103 | 263,477,477 | 234,927,420 | 265,831,421 |
Earnings per common share | ||||
Basic (usd per share) | $ 0.18 | $ 0.18 | $ 0.35 | $ 0.36 |
Diluted (usd per share) | $ 0.18 | $ 0.18 | $ 0.35 | $ 0.36 |
Equity awards | ||||
Earnings per common share | ||||
Securities excluded from computation of diluted earnings per share (shares) | 7,442,906 | 10,749,549 | 6,378,766 | 10,705,374 |
Securities (Narrative) (Details
Securities (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Marketable Securities | ||||||
Equity securities | $ 6,190,000 | $ 6,190,000 | $ 6,039,000 | |||
Debt securities, allowance for credit loss | 3,244,000 | 3,244,000 | $ 2,995,000 | 0 | ||
Carrying value of held to maturity security | 1,148,815,000 | |||||
Estimated fair value | 1,262,808,000 | 1,262,808,000 | 1,190,104,000 | |||
Held-to-maturity securities pledged as collateral | 1,380,000,000 | 1,380,000,000 | ||||
Held-to-maturity securities pledged as collateral, fair value | 1,420,000,000 | 1,420,000,000 | ||||
Proceeds from sale of held to maturity securities | 0 | $ 0 | 0 | $ 0 | ||
Proceeds from sale and maturity of held-to-maturity securities | 16,500,000 | 16,500,000 | ||||
Gain on sale of securities sold | 124,000 | 124,000 | ||||
Unrealized gains (losses) recognized during the period on equity securities | 28,000 | 71,000 | 107,000 | 135,000 | ||
Proceeds from sales of debt securities available for sale | 399,400,000 | 0 | 399,435,000 | |||
Loss on sale of securities | $ 5,700,000 | $ 5,700,000 | ||||
Corporate and other debt securities | ||||||
Marketable Securities | ||||||
Carrying value of held to maturity security | 96,013,000 | 96,013,000 | 72,537,000 | |||
Estimated fair value | 107,848,000 | $ 107,848,000 | $ 98,695,000 | |||
Debt maturities, term (in years) | 20 years | |||||
Corporate and other debt securities | Corporate and Other Debt Securities | ||||||
Marketable Securities | ||||||
Carrying value of held to maturity security | 48,500,000 | $ 48,500,000 | ||||
Estimated fair value | $ 60,600,000 | $ 60,600,000 |
Securities (Equity Securities)
Securities (Equity Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains recognized on equity securities | $ 28 | $ 71 | $ 107 | $ 135 |
Less: Net gains recognized on equity securities sold | 0 | 0 | 0 | 0 |
Unrealized gains recognized on equity securities | $ 28 | $ 71 | $ 107 | $ 135 |
Securities (Summary of Securiti
Securities (Summary of Securities- AFS) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale | ||
Carrying value | $ 2,799,693 | $ 2,656,709 |
Gross unrealized gains | 87,442 | 39,778 |
Gross unrealized losses | 568 | 1,097 |
Debt securities available-for-sale, at estimated fair value | 2,886,567 | 2,695,390 |
Government-sponsored enterprises | ||
Debt Securities, Available-for-sale | ||
Carrying value | 4,598 | |
Gross unrealized gains | 267 | |
Gross unrealized losses | 33 | |
Debt securities available-for-sale, at estimated fair value | 4,832 | |
Federal Home Loan Mortgage Corporation | ||
Debt Securities, Available-for-sale | ||
Carrying value | 1,240,918 | 1,223,587 |
Gross unrealized gains | 34,920 | 17,528 |
Gross unrealized losses | 13 | 736 |
Debt securities available-for-sale, at estimated fair value | 1,275,825 | 1,240,379 |
Federal National Mortgage Association | ||
Debt Securities, Available-for-sale | ||
Carrying value | 1,267,304 | 1,159,446 |
Gross unrealized gains | 44,212 | 18,917 |
Gross unrealized losses | 379 | 314 |
Debt securities available-for-sale, at estimated fair value | 1,311,137 | 1,178,049 |
Government National Mortgage Association | ||
Debt Securities, Available-for-sale | ||
Carrying value | 286,873 | 273,676 |
Gross unrealized gains | 8,043 | 3,333 |
Gross unrealized losses | 143 | 47 |
Debt securities available-for-sale, at estimated fair value | 294,773 | $ 276,962 |
Mortgage-backed securities: | ||
Debt Securities, Available-for-sale | ||
Carrying value | 2,795,095 | |
Gross unrealized gains | 87,175 | |
Gross unrealized losses | 535 | |
Debt securities available-for-sale, at estimated fair value | $ 2,881,735 |
Securities (Summary of Securi_2
Securities (Summary of Securities- HTM) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities | |||
Carrying value | $ 1,148,815 | ||
Gross unrealized losses | $ 2,949 | 979 | |
Estimated fair value | 1,262,808 | 1,190,104 | |
Allowance for credit losses | 3,244 | $ 2,995 | 0 |
Total debt securities held-to-maturity, net of allowance for credit losses | 1,198,401 | ||
Held-to-maturity: | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 1,216,154 | 1,164,107 | |
Net unrealized losses | 14,509 | 15,292 | |
Carrying value | 1,201,645 | 1,148,815 | |
Gross unrecognized gains | 64,112 | 42,268 | |
Gross unrealized losses | 2,949 | 979 | |
Estimated fair value | 1,262,808 | 1,190,104 | |
Total debt securities held-to-maturity | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 400,772 | 289,097 | |
Net unrealized losses | 14,150 | 14,785 | |
Carrying value | 386,622 | 274,312 | |
Gross unrecognized gains | 27,738 | 30,143 | |
Gross unrealized losses | 2,907 | 543 | |
Estimated fair value | 411,453 | 303,912 | |
Government-sponsored enterprises | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 51,884 | 58,624 | |
Net unrealized losses | 0 | 0 | |
Carrying value | 51,884 | 58,624 | |
Gross unrecognized gains | 3,477 | 188 | |
Gross unrealized losses | 0 | 500 | |
Estimated fair value | 55,361 | 58,312 | |
Municipal bonds | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 238,725 | 143,151 | |
Net unrealized losses | 0 | 0 | |
Carrying value | 238,725 | 143,151 | |
Gross unrecognized gains | 9,519 | 3,797 | |
Gross unrealized losses | 0 | 43 | |
Estimated fair value | 248,244 | 146,905 | |
Corporate and other debt securities | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 110,163 | 87,322 | |
Net unrealized losses | 14,150 | 14,785 | |
Carrying value | 96,013 | 72,537 | |
Gross unrecognized gains | 14,742 | 26,158 | |
Gross unrealized losses | 2,907 | 0 | |
Estimated fair value | 107,848 | 98,695 | |
Mortgage-backed securities: | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 815,382 | 875,010 | |
Net unrealized losses | 359 | 507 | |
Carrying value | 815,023 | 874,503 | |
Gross unrecognized gains | 36,374 | 12,125 | |
Gross unrealized losses | 42 | 436 | |
Estimated fair value | 851,355 | 886,192 | |
Federal Home Loan Mortgage Corporation | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 266,073 | 262,079 | |
Net unrealized losses | 98 | 134 | |
Carrying value | 265,975 | 261,945 | |
Gross unrecognized gains | 10,257 | 3,533 | |
Gross unrealized losses | 0 | 129 | |
Estimated fair value | 276,232 | 265,349 | |
Federal National Mortgage Association | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 491,267 | 542,583 | |
Net unrealized losses | 261 | 373 | |
Carrying value | 491,006 | 542,210 | |
Gross unrecognized gains | 23,564 | 7,959 | |
Gross unrealized losses | 42 | 307 | |
Estimated fair value | 514,528 | 549,862 | |
Government National Mortgage Association | |||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 58,042 | 70,348 | |
Net unrealized losses | 0 | 0 | |
Carrying value | 58,042 | 70,348 | |
Gross unrecognized gains | 2,553 | 633 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | $ 60,595 | $ 70,981 |
Securities (Investment Securiti
Securities (Investment Securities, Continuous Unrealized Loss Position And Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Open Option Contracts Written [Line Items] | ||
Less than 12 months | $ 185,727 | $ 315,536 |
12 months or more | 0 | 12,972 |
Total | 185,727 | 328,508 |
Available-for-sale, Unrealized Losses | ||
Less than 12 months | 568 | 1,080 |
12 months or more | 0 | 17 |
Total | 568 | 1,097 |
Held-to-maturity Securities, Estimated Fair Value | ||
Less than 12 months | 37,683 | 84,063 |
12 months or more | 0 | 48,381 |
Total | 37,683 | 132,444 |
Held-to-maturity Securities, Unrealized Losses | ||
Less than 12 months | 2,949 | 659 |
12 months or more | 0 | 320 |
Total | 2,949 | 979 |
Estimated fair value, less than 12 months, total | 223,410 | 399,599 |
Unrealized losses, less than 12 months, total | 3,517 | 1,739 |
Estimated fair value, 12 months or more, total | 0 | 61,353 |
Unrealized losses, 12 months or more, total | 0 | 337 |
Estimated fair value, total | 223,410 | 460,952 |
Unrealized losses, total | 3,517 | 2,076 |
Mortgage-backed securities: | ||
Open Option Contracts Written [Line Items] | ||
Less than 12 months | 183,298 | |
12 months or more | 0 | |
Total | 183,298 | |
Available-for-sale, Unrealized Losses | ||
Less than 12 months | 535 | |
12 months or more | 0 | |
Total | 535 | |
Held-to-maturity Securities, Estimated Fair Value | ||
Less than 12 months | 28,771 | |
12 months or more | 48,381 | |
Total | 77,152 | |
Held-to-maturity Securities, Unrealized Losses | ||
Less than 12 months | 116 | |
12 months or more | 320 | |
Total | 42 | 436 |
Federal Home Loan Mortgage Corporation | ||
Open Option Contracts Written [Line Items] | ||
Less than 12 months | 34,659 | 215,160 |
12 months or more | 0 | 0 |
Total | 34,659 | 215,160 |
Available-for-sale, Unrealized Losses | ||
Less than 12 months | 13 | 736 |
12 months or more | 0 | 0 |
Total | 13 | 736 |
Held-to-maturity Securities, Estimated Fair Value | ||
Less than 12 months | 20,860 | |
12 months or more | 11,065 | |
Total | 31,925 | |
Held-to-maturity Securities, Unrealized Losses | ||
Less than 12 months | 64 | |
12 months or more | 65 | |
Total | 0 | 129 |
Federal National Mortgage Association | ||
Open Option Contracts Written [Line Items] | ||
Less than 12 months | 100,489 | 80,298 |
12 months or more | 0 | 12,972 |
Total | 100,489 | 93,270 |
Available-for-sale, Unrealized Losses | ||
Less than 12 months | 379 | 297 |
12 months or more | 0 | 17 |
Total | 379 | 314 |
Held-to-maturity Securities, Estimated Fair Value | ||
Less than 12 months | 5,073 | 7,911 |
12 months or more | 0 | 37,316 |
Total | 5,073 | 45,227 |
Held-to-maturity Securities, Unrealized Losses | ||
Less than 12 months | 42 | 52 |
12 months or more | 0 | 255 |
Total | 42 | 307 |
Government National Mortgage Association | ||
Open Option Contracts Written [Line Items] | ||
Less than 12 months | 48,150 | 20,078 |
12 months or more | 0 | 0 |
Total | 48,150 | 20,078 |
Available-for-sale, Unrealized Losses | ||
Less than 12 months | 143 | 47 |
12 months or more | 0 | 0 |
Total | 143 | 47 |
Held-to-maturity Securities, Unrealized Losses | ||
Total | 0 | 0 |
Total debt securities held-to-maturity | ||
Held-to-maturity Securities, Estimated Fair Value | ||
Less than 12 months | 55,292 | |
12 months or more | 0 | |
Total | 55,292 | |
Held-to-maturity Securities, Unrealized Losses | ||
Less than 12 months | 543 | |
12 months or more | 0 | |
Total | 2,907 | 543 |
Government-sponsored enterprises | ||
Open Option Contracts Written [Line Items] | ||
Less than 12 months | 2,429 | |
12 months or more | 0 | |
Total | 2,429 | |
Less than 12 months | 33 | |
12 months or more | 0 | |
Total | 33 | |
Held-to-maturity Securities, Estimated Fair Value | ||
Less than 12 months | 31,696 | |
12 months or more | 0 | |
Total | 31,696 | |
Held-to-maturity Securities, Unrealized Losses | ||
Less than 12 months | 500 | |
12 months or more | 0 | |
Total | 0 | 500 |
Municipal bonds | ||
Held-to-maturity Securities, Estimated Fair Value | ||
Less than 12 months | 23,596 | |
12 months or more | 0 | |
Total | 23,596 | |
Held-to-maturity Securities, Unrealized Losses | ||
Less than 12 months | 43 | |
12 months or more | 0 | |
Total | 0 | 43 |
Corporate and other debt securities | ||
Held-to-maturity Securities, Estimated Fair Value | ||
Less than 12 months | 32,610 | |
12 months or more | 0 | |
Total | 32,610 | |
Held-to-maturity Securities, Unrealized Losses | ||
Less than 12 months | 2,907 | |
12 months or more | 0 | |
Total | $ 2,907 | $ 0 |
Securities (Amortized Cost and
Securities (Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying value | ||
Carrying value | $ 1,148,815 | |
Estimated fair value | ||
Total | $ 1,262,808 | $ 1,190,104 |
Debt Securities Other than Securities Pledged | ||
Carrying value | ||
Due in one year or less | 55,512 | |
Due after one year through five years | 10,397 | |
Due after five years through ten years | 60,761 | |
Due after ten years | 259,952 | |
Carrying value | 386,622 | |
Estimated fair value | ||
Due in one year or less | 55,512 | |
Due after one year through five years | 10,516 | |
Due after five years through ten years | 62,734 | |
Due after ten years | 282,691 | |
Total | $ 411,453 |
Loans Receivable, Net (Narrativ
Loans Receivable, Net (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable | |||||
Delinquency period in days | 90 days | ||||
Interest income on non accrual loans | $ 818,000 | ||||
Loans that are 90 days past due and still accruing | $ 0 | 0 | |||
Loans deferred | 4,070,000,000 | $ 4,070,000,000 | |||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Delinquency period in days | 30 days | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Delinquency period in days | 89 days | ||||
Watch | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Delinquency period in days | 30 days | ||||
Watch | Maximum | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Delinquency period in days | 59 days | ||||
Commercial Portfolio Segment | Retail Site | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Number loans modified as TDR in the last 12 months for which there was a default payment | loan | 1 | ||||
Consumer Portfolio Segment | Residential Mortgage Loans | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Number loans modified as TDR in the last 12 months for which there was a default payment | loan | 1 | 1 | |||
Recorded investment | $ 201,000 | $ 270,000 | |||
Consumer Portfolio Segment | Retail Site | Residential Mortgage Loans | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Recorded investment | 2,500,000 | ||||
Special Mention Residential | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Delinquency period in days | 60 days | ||||
Special Mention Residential | Maximum | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Delinquency period in days | 89 days | ||||
Substandard Residential | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Delinquency period in days | 90 days | ||||
Collateral Dependent Tdrs | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Allowance for loan losses, charge-offs | 0 | $ 96,000 | $ 163,000 | $ 573,000 | |
Allowance for loan losses, individually evaluated for impairment | $ 1,600,000 | $ 1,600,000 | $ 1,800,000 |
Loans Receivable, Net (Summary
Loans Receivable, Net (Summary of Loan Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | $ 21,362,007 | $ 21,703,269 | ||||
Deferred fees, premiums and other, net | (10,044) | 907 | ||||
Allowance for credit losses | (273,319) | $ (243,288) | (228,120) | $ (231,937) | $ (234,717) | $ (235,817) |
Net loans | 21,078,644 | 21,476,056 | ||||
Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 15,984,658 | 15,858,755 | ||||
Commercial Portfolio Segment | Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 3,428,916 | 2,951,306 | ||||
Allowance for credit losses | (80,616) | (74,396) | (71,084) | |||
Commercial Portfolio Segment | Construction Loans | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 304,460 | 262,866 | ||||
Allowance for credit losses | (9,310) | (6,816) | (7,486) | |||
Commercial Portfolio Segment | Multifamily | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 7,813,236 | |||||
Commercial Portfolio Segment | Multifamily | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 7,377,929 | 7,813,236 | ||||
Allowance for credit losses | (60,186) | (74,099) | (82,876) | |||
Commercial Portfolio Segment | Retail Site | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 4,873,353 | 4,831,347 | ||||
Allowance for credit losses | (84,433) | (50,925) | (48,449) | |||
Consumer Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 21,362,007 | 699,796 | ||||
Consumer Portfolio Segment | Residential Mortgage Loans | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 4,702,957 | 5,144,718 | ||||
Allowance for credit losses | (33,596) | (17,391) | (20,776) | |||
Consumer Portfolio Segment | Consumer and Other Loans | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Total loans at amortized cost | 674,392 | 699,796 | ||||
Allowance for credit losses | $ (5,178) | $ (2,548) | $ (3,102) |
Loans Receivable, Net (Amortize
Loans Receivable, Net (Amortized Cost Basis By Year of Origination) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator | ||
Total | $ 21,362,007 | $ 21,703,269 |
Pass | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 18,312,074 | |
Watch | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 2,224,239 | |
Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 404,166 | |
Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 762,790 | |
Doubtful | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Loss | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 15,984,658 | 15,858,755 |
Commercial Portfolio Segment | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 12,550,438 | |
Commercial Portfolio Segment | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 2,200,668 | |
Commercial Portfolio Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 397,563 | |
Commercial Portfolio Segment | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 710,086 | |
Commercial Portfolio Segment | Doubtful | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Commercial Portfolio Segment | Loss | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 679,199 | |
2019 | 868,685 | |
2018 | 482,810 | |
2017 | 288,099 | |
2016 | 501,460 | |
Prior | 342,310 | |
Revolving Loans | 266,353 | |
Total | 3,428,916 | 2,951,306 |
Commercial Portfolio Segment | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 644,002 | |
2019 | 709,236 | |
2018 | 361,615 | |
2017 | 174,106 | |
2016 | 413,043 | |
Prior | 234,237 | |
Revolving Loans | 215,366 | |
Total | 2,751,605 | 2,031,148 |
Commercial Portfolio Segment | Commercial and industrial | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 31,947 | |
2019 | 127,673 | |
2018 | 56,168 | |
2017 | 82,914 | |
2016 | 31,107 | |
Prior | 31,816 | |
Revolving Loans | 30,133 | |
Total | 391,758 | 693,397 |
Commercial Portfolio Segment | Commercial and industrial | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 26,265 | |
2018 | 2,616 | |
2017 | 26,424 | |
2016 | 28,854 | |
Prior | 54,555 | |
Revolving Loans | 6,470 | |
Total | 145,184 | 111,389 |
Commercial Portfolio Segment | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 3,250 | |
2019 | 5,511 | |
2018 | 62,411 | |
2017 | 4,655 | |
2016 | 28,456 | |
Prior | 21,702 | |
Revolving Loans | 14,384 | |
Total | 140,369 | 115,372 |
Commercial Portfolio Segment | Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Commercial Portfolio Segment | Commercial and industrial | Loss | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Commercial Portfolio Segment | Construction Loans | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 30,476 | |
2019 | 53,744 | |
2018 | 39,970 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 180,270 | |
Total | 304,460 | 262,866 |
Commercial Portfolio Segment | Construction Loans | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 20,953 | |
2019 | 53,744 | |
2018 | 39,970 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 156,408 | |
Total | 271,075 | |
Commercial Portfolio Segment | Construction Loans | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 9,523 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 11,732 | |
Total | 21,255 | |
Commercial Portfolio Segment | Construction Loans | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Construction Loans | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 12,130 | |
Total | 12,130 | |
Consumer Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 1,487,702 | |
2019 | 3,172,834 | |
2018 | 3,435,253 | |
2017 | 2,558,185 | |
2016 | 4,438,362 | |
Prior | 5,209,629 | |
Revolving Loans | 1,060,042 | |
Total | 21,362,007 | 699,796 |
Consumer Portfolio Segment | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 687,302 | |
Consumer Portfolio Segment | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 9,157 | |
Consumer Portfolio Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 1,174 | |
Consumer Portfolio Segment | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 2,163 | |
Consumer Portfolio Segment | Doubtful | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Consumer Portfolio Segment | Loss | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Consumer Portfolio Segment | Residential Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 188,824 | |
2019 | 607,286 | |
2018 | 596,754 | |
2017 | 714,916 | |
2016 | 656,363 | |
Prior | 1,938,712 | |
Revolving Loans | 102 | |
Total | 4,702,957 | 5,144,718 |
Consumer Portfolio Segment | Residential Mortgage Loans | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 188,712 | |
2019 | 605,763 | |
2018 | 592,532 | |
2017 | 713,647 | |
2016 | 654,831 | |
Prior | 1,881,016 | |
Revolving Loans | 0 | |
Total | 4,636,501 | 5,074,334 |
Consumer Portfolio Segment | Residential Mortgage Loans | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 112 | |
2019 | 0 | |
2018 | 1,048 | |
2017 | 514 | |
2016 | 63 | |
Prior | 7,328 | |
Revolving Loans | 0 | |
Total | 9,065 | 14,414 |
Consumer Portfolio Segment | Residential Mortgage Loans | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 1,164 | |
2017 | 312 | |
2016 | 630 | |
Prior | 2,234 | |
Revolving Loans | 0 | |
Total | 4,340 | 5,429 |
Consumer Portfolio Segment | Residential Mortgage Loans | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 1,523 | |
2018 | 2,010 | |
2017 | 443 | |
2016 | 839 | |
Prior | 48,134 | |
Revolving Loans | 102 | |
Total | 53,051 | 50,541 |
Consumer Portfolio Segment | Residential Mortgage Loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Consumer Portfolio Segment | Residential Mortgage Loans | Loss | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Consumer Portfolio Segment | Consumer and Other Loans | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 2,433 | |
2019 | 8,949 | |
2018 | 7,170 | |
2017 | 9,328 | |
2016 | 13,965 | |
Prior | 64,890 | |
Revolving Loans | 567,657 | |
Total | 674,392 | 699,796 |
Consumer Portfolio Segment | Consumer and Other Loans | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 2,433 | |
2019 | 8,815 | |
2018 | 7,170 | |
2017 | 9,328 | |
2016 | 13,725 | |
Prior | 62,461 | |
Revolving Loans | 553,837 | |
Total | 657,769 | |
Consumer Portfolio Segment | Consumer and Other Loans | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 134 | |
2018 | 0 | |
2017 | 0 | |
2016 | 117 | |
Prior | 514 | |
Revolving Loans | 10,260 | |
Total | 11,025 | |
Consumer Portfolio Segment | Consumer and Other Loans | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 177 | |
Revolving Loans | 2,969 | |
Total | 3,146 | |
Consumer Portfolio Segment | Consumer and Other Loans | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 123 | |
Prior | 1,738 | |
Revolving Loans | 591 | |
Total | 2,452 | |
Multifamily | Commercial Portfolio Segment | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 7,813,236 | |
Multifamily | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 6,326,412 | |
Multifamily | Commercial Portfolio Segment | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 942,438 | |
Multifamily | Commercial Portfolio Segment | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 167,748 | |
Multifamily | Commercial Portfolio Segment | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 376,638 | |
Multifamily | Commercial Portfolio Segment | Doubtful | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Multifamily | Commercial Portfolio Segment | Loss | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Multifamily | Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 383,532 | |
2019 | 732,934 | |
2018 | 1,499,605 | |
2017 | 950,469 | |
2016 | 2,082,777 | |
Prior | 1,715,780 | |
Revolving Loans | 12,832 | |
Total | 7,377,929 | 7,813,236 |
Multifamily | Commercial Portfolio Segment | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 365,777 | |
2019 | 711,763 | |
2018 | 1,384,829 | |
2017 | 833,115 | |
2016 | 1,762,574 | |
Prior | 1,450,948 | |
Revolving Loans | 9,751 | |
Total | 6,518,757 | |
Multifamily | Commercial Portfolio Segment | Commercial real estate | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 13,160 | |
2019 | 21,171 | |
2018 | 107,311 | |
2017 | 104,589 | |
2016 | 149,425 | |
Prior | 58,043 | |
Revolving Loans | 1,700 | |
Total | 455,399 | |
Multifamily | Commercial Portfolio Segment | Commercial real estate | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 4,595 | |
2019 | 0 | |
2018 | 7,465 | |
2017 | 3,310 | |
2016 | 77,663 | |
Prior | 55,343 | |
Revolving Loans | 0 | |
Total | 148,376 | |
Multifamily | Commercial Portfolio Segment | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 9,455 | |
2016 | 93,115 | |
Prior | 151,446 | |
Revolving Loans | 1,381 | |
Total | 255,397 | |
Retail Site | Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 203,238 | |
2019 | 901,236 | |
2018 | 808,944 | |
2017 | 595,373 | |
2016 | 1,183,797 | |
Prior | 1,147,937 | |
Revolving Loans | 32,828 | |
Total | 4,873,353 | 4,831,347 |
Retail Site | Commercial Portfolio Segment | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 193,001 | |
2019 | 861,323 | |
2018 | 765,976 | |
2017 | 519,365 | |
2016 | 965,191 | |
Prior | 985,225 | |
Revolving Loans | 25,409 | |
Total | 4,315,490 | 4,023,642 |
Retail Site | Commercial Portfolio Segment | Commercial real estate | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 10,237 | |
2019 | 38,913 | |
2018 | 35,808 | |
2017 | 31,466 | |
2016 | 120,624 | |
Prior | 29,793 | |
Revolving Loans | 1,885 | |
Total | 268,726 | 489,514 |
Retail Site | Commercial Portfolio Segment | Commercial real estate | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 2,511 | |
2017 | 17,993 | |
2016 | 45,067 | |
Prior | 44,774 | |
Revolving Loans | 5,534 | |
Total | 115,879 | 118,426 |
Retail Site | Commercial Portfolio Segment | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
2020 | 0 | |
2019 | 1,000 | |
2018 | 4,649 | |
2017 | 26,549 | |
2016 | 52,915 | |
Prior | 88,145 | |
Revolving Loans | 0 | |
Total | $ 173,258 | 199,765 |
Retail Site | Commercial Portfolio Segment | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Retail Site | Commercial Portfolio Segment | Commercial real estate | Loss | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Construction | Commercial Portfolio Segment | Construction Loans | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 262,866 | |
Construction | Commercial Portfolio Segment | Construction Loans | Pass | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 169,236 | |
Construction | Commercial Portfolio Segment | Construction Loans | Watch | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 75,319 | |
Construction | Commercial Portfolio Segment | Construction Loans | Special mention | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Construction | Commercial Portfolio Segment | Construction Loans | Substandard | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 18,311 | |
Construction | Commercial Portfolio Segment | Construction Loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator | ||
Total | 0 | |
Construction | Commercial Portfolio Segment | Construction Loans | Loss | ||
Financing Receivable, Credit Quality Indicator | ||
Total | $ 0 |
Loans Receivable, Net (Payment
Loans Receivable, Net (Payment Status of the Recorded Investment in Past Due Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due | ||
Total Past Due | $ 190,444 | $ 160,036 |
Current | 21,171,563 | 21,543,233 |
Loans receivable, net | 21,078,644 | 21,476,056 |
Total | 21,362,007 | 21,703,269 |
30-59 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 65,647 | 87,475 |
60-89 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 31,380 | 12,607 |
Greater than 90 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 93,417 | 59,954 |
Commercial Portfolio Segment | ||
Financing Receivable, Past Due | ||
Total Past Due | 128,074 | 97,471 |
Current | 15,856,584 | 15,761,284 |
Total | 15,984,658 | 15,858,755 |
Commercial Portfolio Segment | Construction Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 0 | 0 |
Current | 304,460 | 262,866 |
Total | 304,460 | 262,866 |
Commercial Portfolio Segment | 30-59 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 44,728 | 61,338 |
Commercial Portfolio Segment | 30-59 Days | Construction Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 23,645 | 5,238 |
Commercial Portfolio Segment | 60-89 Days | Construction Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Greater than 90 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 59,701 | 30,895 |
Commercial Portfolio Segment | Greater than 90 Days | Construction Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Total Past Due | 16,279 | 15,594 |
Current | 3,412,637 | 2,935,712 |
Total | 3,428,916 | 2,951,306 |
Commercial Portfolio Segment | Commercial and industrial | 30-59 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 7,513 | 7,774 |
Commercial Portfolio Segment | Commercial and industrial | 60-89 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 1,178 | 2,767 |
Commercial Portfolio Segment | Commercial and industrial | Greater than 90 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 7,588 | 5,053 |
Commercial Portfolio Segment | Multifamily | ||
Financing Receivable, Past Due | ||
Total | 7,813,236 | |
Commercial Portfolio Segment | Multifamily | Commercial real estate | ||
Financing Receivable, Past Due | ||
Total Past Due | 91,904 | 69,607 |
Current | 7,286,025 | 7,743,629 |
Total | 7,377,929 | 7,813,236 |
Commercial Portfolio Segment | Multifamily | Commercial real estate | 30-59 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 25,795 | 45,606 |
Commercial Portfolio Segment | Multifamily | Commercial real estate | 60-89 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 19,139 | 1,946 |
Commercial Portfolio Segment | Multifamily | Commercial real estate | Greater than 90 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 46,970 | 22,055 |
Commercial Portfolio Segment | Retail Site | Commercial real estate | ||
Financing Receivable, Past Due | ||
Total Past Due | 19,891 | 12,270 |
Current | 4,853,462 | 4,819,077 |
Total | 4,873,353 | 4,831,347 |
Commercial Portfolio Segment | Retail Site | Commercial real estate | 30-59 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 11,420 | 7,958 |
Commercial Portfolio Segment | Retail Site | Commercial real estate | 60-89 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 3,328 | 525 |
Commercial Portfolio Segment | Retail Site | Commercial real estate | Greater than 90 Days | ||
Financing Receivable, Past Due | ||
Total Past Due | 5,143 | 3,787 |
Consumer Portfolio Segment | ||
Financing Receivable, Past Due | ||
Total | 21,362,007 | 699,796 |
Consumer Portfolio Segment | Residential Mortgage Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 46,370 | 50,904 |
Current | 4,656,587 | 5,093,814 |
Total | 4,702,957 | 5,144,718 |
Consumer Portfolio Segment | Consumer and Other Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 16,000 | 11,661 |
Current | 658,392 | 688,135 |
Total | 674,392 | 699,796 |
Consumer Portfolio Segment | 30-59 Days | Residential Mortgage Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 9,835 | 16,980 |
Consumer Portfolio Segment | 30-59 Days | Consumer and Other Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 11,084 | 9,157 |
Consumer Portfolio Segment | 60-89 Days | Residential Mortgage Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 4,588 | 6,195 |
Consumer Portfolio Segment | 60-89 Days | Consumer and Other Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 3,147 | 1,174 |
Consumer Portfolio Segment | Greater than 90 Days | Residential Mortgage Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | 31,947 | 27,729 |
Consumer Portfolio Segment | Greater than 90 Days | Consumer and Other Loans | ||
Financing Receivable, Past Due | ||
Total Past Due | $ 1,769 | $ 1,330 |
Loans Receivable, Net (Non-Accr
Loans Receivable, Net (Non-Accrual Loans Status) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 320 | 308 |
Non-accrual, Amount | $ | $ 126,843 | $ 95,315 |
Financing Receivables, 1 to 29 Days Past Due | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 35 | 27 |
Non-accrual, Amount | $ | $ 9,389 | $ 6,578 |
Financing Receivables, 30 to 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 8 | 18 |
Non-accrual, Amount | $ | $ 1,079 | $ 3,331 |
Commercial Portfolio Segment | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 65 | 48 |
Non-accrual, Amount | $ | $ 76,279 | $ 47,749 |
Commercial Portfolio Segment | Construction Loans | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 0 | 0 |
Non-accrual, Amount | $ | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 29 | 18 |
Non-accrual, Amount | $ | $ 15,627 | $ 12,482 |
Commercial Portfolio Segment | Multifamily | Commercial real estate | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 14 | 8 |
Non-accrual, Amount | $ | $ 48,363 | $ 23,322 |
Commercial Portfolio Segment | Retail Site | Commercial real estate | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 22 | 22 |
Non-accrual, Amount | $ | $ 12,289 | $ 11,945 |
Commercial Portfolio Segment | Retail Site | Commercial real estate | Financing Receivables, 1 to 29 Days Past Due | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 2 | 2 |
Non-accrual, Amount | $ | $ 3,631 | $ 2,360 |
Consumer Portfolio Segment | Residential Mortgage Loans | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 255 | 260 |
Non-accrual, Amount | $ | $ 50,564 | $ 47,566 |
Consumer Portfolio Segment | Financing Receivables, 1 to 29 Days Past Due | Residential Mortgage Loans | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 33 | 25 |
Non-accrual, Amount | $ | $ 5,758 | $ 4,218 |
Consumer Portfolio Segment | Financing Receivables, 30 to 89 Days Past Due | Residential Mortgage Loans | ||
Financing Receivable, Past Due | ||
Non-accrual: # of loans | loan | 8 | 18 |
Non-accrual, Amount | $ | $ 1,079 | $ 3,331 |
Loans Receivable, Net (Collater
Loans Receivable, Net (Collateral Dependant Loans) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | $ 88,526 |
Construction | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 0 |
Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 62,688 |
Total commercial loans | Multifamily | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 41,911 |
Residential mortgage and consumer | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 25,838 |
Commercial and industrial | Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 14,080 |
Commercial real estate | Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 6,697 |
Real Estate Loan | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 78,701 |
Real Estate Loan | Construction | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 0 |
Real Estate Loan | Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 52,977 |
Real Estate Loan | Total commercial loans | Multifamily | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 41,911 |
Real Estate Loan | Residential mortgage and consumer | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 25,724 |
Real Estate Loan | Commercial and industrial | Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 4,369 |
Real Estate Loan | Commercial real estate | Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 6,697 |
Other | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 9,825 |
Other | Construction | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 0 |
Other | Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 9,711 |
Other | Total commercial loans | Multifamily | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 0 |
Other | Residential mortgage and consumer | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 114 |
Other | Commercial and industrial | Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | 9,711 |
Other | Commercial real estate | Total commercial loans | |
Accounts, Notes, Loans and Financing Receivable | |
Collateral-dependent loans | $ 0 |
Loans Receivable, Net (Troubled
Loans Receivable, Net (Troubled Debt Restructured Loans) (Details) $ in Thousands | Jun. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan |
Financing Receivable, Troubled Debt Restructuring | ||
Accrual, number of loans | loan | 52 | 57 |
Accrual, amount | $ | $ 12,152 | $ 13,084 |
Non-accrual, number of loans | loan | 83 | 83 |
Non-accrual, amount | $ | $ 24,003 | $ 23,502 |
Number of loans | loan | 135 | 140 |
Troubled debt restructuring, Amount | $ | $ 36,155 | $ 36,586 |
Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring | ||
Accrual, number of loans | loan | 3 | 3 |
Accrual, amount | $ | $ 2,805 | $ 2,535 |
Non-accrual, number of loans | loan | 4 | 5 |
Non-accrual, amount | $ | $ 7,512 | $ 7,044 |
Number of loans | loan | 7 | 8 |
Troubled debt restructuring, Amount | $ | $ 10,317 | $ 9,579 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring | ||
Accrual, number of loans | loan | 3 | 3 |
Accrual, amount | $ | $ 2,805 | $ 2,535 |
Non-accrual, number of loans | loan | 2 | 2 |
Non-accrual, amount | $ | $ 3,881 | $ 4,682 |
Number of loans | loan | 5 | 5 |
Troubled debt restructuring, Amount | $ | $ 6,686 | $ 7,217 |
Commercial Portfolio Segment | Retail Site | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring | ||
Accrual, number of loans | loan | 0 | 0 |
Accrual, amount | $ | $ 0 | $ 0 |
Non-accrual, number of loans | loan | 2 | 3 |
Non-accrual, amount | $ | $ 3,631 | $ 2,362 |
Number of loans | loan | 2 | 3 |
Troubled debt restructuring, Amount | $ | $ 3,631 | $ 2,362 |
Consumer Portfolio Segment | Residential And Consumer | ||
Financing Receivable, Troubled Debt Restructuring | ||
Accrual, number of loans | loan | 49 | 54 |
Accrual, amount | $ | $ 9,347 | $ 10,549 |
Non-accrual, number of loans | loan | 79 | 78 |
Non-accrual, amount | $ | $ 16,491 | $ 16,458 |
Number of loans | loan | 128 | 132 |
Troubled debt restructuring, Amount | $ | $ 25,838 | $ 27,007 |
Loans Receivable, Net (Schedule
Loans Receivable, Net (Schedule of Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | |
Commercial Portfolio Segment | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss | ||||
Number of Loans | loan | 1 | 0 | ||
Pre-modification Recorded Investment | $ | $ 933 | $ 0 | ||
Post- modification Recorded Investment | $ | $ 933 | $ 0 | ||
Number of Loans | loan | 1 | 0 | ||
Pre-modification Interest Yield (percentage) | 4.75% | 0.00% | ||
Post- modification Interest Yield (percentage) | 4.75% | 0.00% | ||
Commercial Portfolio Segment | Retail Site | Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss | ||||
Number of Loans | loan | 1 | 0 | 1 | 0 |
Pre-modification Recorded Investment | $ | $ 1,330 | $ 0 | $ 1,330 | $ 0 |
Post- modification Recorded Investment | $ | $ 1,330 | $ 0 | $ 1,330 | $ 0 |
Number of Loans | loan | 1 | 0 | 1 | 0 |
Pre-modification Interest Yield (percentage) | 3.88% | 0.00% | 3.88% | 0.00% |
Post- modification Interest Yield (percentage) | 3.88% | 0.00% | 3.88% | 0.00% |
Consumer Portfolio Segment | Residential And Consumer | ||||
Financing Receivable, Allowance for Credit Loss | ||||
Number of Loans | loan | 0 | 4 | 0 | 10 |
Pre-modification Recorded Investment | $ | $ 0 | $ 732 | $ 0 | $ 2,396 |
Post- modification Recorded Investment | $ | $ 0 | $ 732 | $ 0 | $ 2,396 |
Number of Loans | loan | 0 | 4 | 0 | 10 |
Pre-modification Interest Yield (percentage) | 0.00% | 5.22% | 0.00% | 5.25% |
Post- modification Interest Yield (percentage) | 0.00% | 4.96% | 0.00% | 4.92% |
Loans Receivable, Net (Loans In
Loans Receivable, Net (Loans Individually Evaluated for Impairment by Class of Loans) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Recorded Investment | |
Total: | $ 69,523 |
Unpaid Principal Balance | |
Total: | 87,531 |
Related Allowance | 1,763 |
Average Recorded Investment | |
Total: | 73,417 |
Interest Income Recognized | |
Total: | 1,017 |
Commercial Portfolio Segment | |
Recorded Investment | |
With no related allowance: | 43 |
With an allowance recorded: | 0 |
Total: | 43 |
Unpaid Principal Balance | |
With no related allowance: | 56 |
With an allowance recorded: | 0 |
Total: | 56 |
Related Allowance | 0 |
Average Recorded Investment | |
With no related allowance: | 46 |
With an allowance recorded: | 0 |
Total: | 46 |
Interest Income Recognized | |
With no related allowance: | 1 |
With an allowance recorded: | 0 |
Total: | 1 |
Commercial Portfolio Segment | Construction Loans | |
Recorded Investment | |
With no related allowance: | 0 |
With an allowance recorded: | 0 |
Total: | 0 |
Unpaid Principal Balance | |
With no related allowance: | 0 |
With an allowance recorded: | 0 |
Total: | 0 |
Related Allowance | 0 |
Average Recorded Investment | |
With no related allowance: | 0 |
With an allowance recorded: | 0 |
Total: | 0 |
Interest Income Recognized | |
With no related allowance: | 0 |
With an allowance recorded: | 0 |
Total: | 0 |
Commercial Portfolio Segment | Commercial and industrial | |
Recorded Investment | |
With no related allowance: | 12,476 |
With an allowance recorded: | 0 |
Total: | 12,476 |
Unpaid Principal Balance | |
With no related allowance: | 21,090 |
With an allowance recorded: | 0 |
Total: | 21,090 |
Related Allowance | 0 |
Average Recorded Investment | |
With no related allowance: | 14,860 |
With an allowance recorded: | 0 |
Total: | 14,860 |
Interest Income Recognized | |
With no related allowance: | 351 |
With an allowance recorded: | 0 |
Total: | 351 |
Commercial Portfolio Segment | Multifamily | Commercial real estate | |
Recorded Investment | |
With no related allowance: | 22,169 |
With an allowance recorded: | 0 |
Total: | 22,169 |
Unpaid Principal Balance | |
With no related allowance: | 23,581 |
With an allowance recorded: | 0 |
Total: | 23,581 |
Related Allowance | 0 |
Average Recorded Investment | |
With no related allowance: | 23,298 |
With an allowance recorded: | 0 |
Total: | 23,298 |
Interest Income Recognized | |
With no related allowance: | 47 |
With an allowance recorded: | 0 |
Total: | 47 |
Commercial Portfolio Segment | Retail Site | Commercial real estate | |
Recorded Investment | |
With no related allowance: | 7,875 |
With an allowance recorded: | 0 |
Total: | 7,875 |
Unpaid Principal Balance | |
With no related allowance: | 10,913 |
With an allowance recorded: | 0 |
Total: | 10,913 |
Related Allowance | 0 |
Average Recorded Investment | |
With no related allowance: | 8,127 |
With an allowance recorded: | 0 |
Total: | 8,127 |
Interest Income Recognized | |
With no related allowance: | 199 |
With an allowance recorded: | 0 |
Total: | 199 |
Consumer Portfolio Segment | Residential And Consumer | |
Recorded Investment | |
With no related allowance: | 13,783 |
With an allowance recorded: | 13,220 |
Total: | 27,003 |
Unpaid Principal Balance | |
With no related allowance: | 18,066 |
With an allowance recorded: | 13,881 |
Total: | 31,947 |
Related Allowance | 1,763 |
Average Recorded Investment | |
With no related allowance: | 13,811 |
With an allowance recorded: | 13,321 |
Total: | 27,132 |
Interest Income Recognized | |
With no related allowance: | 267 |
With an allowance recorded: | 153 |
Total: | $ 420 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | $ 243,288 | $ 234,717 | $ 228,120 | $ 235,817 | $ 235,817 |
Gross charge offs | (5,059) | (2,181) | (15,988) | (7,626) | (13,132) |
Recoveries | 985 | 2,401 | 3,881 | 3,746 | 6,435 |
Net charge-offs | (4,074) | 220 | (12,107) | (3,880) | |
Allowance at acquisition on loans purchased with credit deterioration | 4,180 | 0 | 4,180 | 0 | |
Provision for credit loss expense | 29,925 | (3,000) | 56,677 | 0 | (1,000) |
Balance at end of the period | 273,319 | 231,937 | 273,319 | 231,937 | 228,120 |
Cumulative Effect, Period Of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | $ 0 | $ 0 | $ (3,551) | $ 0 | 0 |
Balance at end of the period | $ (3,551) |
Allowance for credit losses by
Allowance for credit losses by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | $ 243,288 | $ 234,717 | $ 228,120 | $ 235,817 | $ 235,817 |
Charge-offs | (5,059) | (2,181) | (15,988) | (7,626) | (13,132) |
Recoveries | 985 | 2,401 | 3,881 | 3,746 | 6,435 |
Allowance at acquisition on loans purchased with credit deterioration | 4,180 | 0 | 4,180 | 0 | |
Provision for credit loss expense | 29,925 | (3,000) | 56,677 | 0 | (1,000) |
Balance at end of the period | 273,319 | 231,937 | 273,319 | 231,937 | 228,120 |
Unallocated | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 1,945 | 2,044 | 2,044 | ||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance at acquisition on loans purchased with credit deterioration | 0 | ||||
Provision for credit loss expense | 0 | (99) | |||
Balance at end of the period | 0 | 0 | 1,945 | ||
Commercial Portfolio Segment | Commercial and industrial | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 74,396 | 71,084 | 71,084 | ||
Charge-offs | (10,835) | (6,833) | |||
Recoveries | 2,939 | 1,203 | |||
Allowance at acquisition on loans purchased with credit deterioration | 287 | ||||
Provision for credit loss expense | 21,340 | 8,942 | |||
Balance at end of the period | 80,616 | 80,616 | 74,396 | ||
Commercial Portfolio Segment | Construction Loans | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 6,816 | 7,486 | 7,486 | ||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance at acquisition on loans purchased with credit deterioration | 127 | ||||
Provision for credit loss expense | 4,268 | (670) | |||
Balance at end of the period | 9,310 | 9,310 | 6,816 | ||
Consumer Portfolio Segment | Residential Mortgage Loans | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 17,391 | 20,776 | 20,776 | ||
Charge-offs | (805) | (2,241) | |||
Recoveries | 487 | 1,448 | |||
Allowance at acquisition on loans purchased with credit deterioration | 344 | ||||
Provision for credit loss expense | (3,910) | (2,592) | |||
Balance at end of the period | 33,596 | 33,596 | 17,391 | ||
Consumer Portfolio Segment | Consumer and Other Loans | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 2,548 | 3,102 | 3,102 | ||
Charge-offs | (15) | (934) | |||
Recoveries | 135 | 336 | |||
Allowance at acquisition on loans purchased with credit deterioration | 5 | ||||
Provision for credit loss expense | 416 | 44 | |||
Balance at end of the period | 5,178 | 5,178 | 2,548 | ||
Multifamily | Commercial Portfolio Segment | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 74,099 | 82,876 | 82,876 | ||
Charge-offs | (4,144) | (2,973) | |||
Recoveries | 0 | 1,244 | |||
Allowance at acquisition on loans purchased with credit deterioration | 209 | ||||
Provision for credit loss expense | (237) | (7,048) | |||
Balance at end of the period | 60,186 | 60,186 | 74,099 | ||
Retail Site | Commercial Portfolio Segment | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 50,925 | 48,449 | 48,449 | ||
Charge-offs | (189) | (151) | |||
Recoveries | 320 | 2,204 | |||
Allowance at acquisition on loans purchased with credit deterioration | 3,208 | ||||
Provision for credit loss expense | 34,800 | 423 | |||
Balance at end of the period | 84,433 | 84,433 | 50,925 | ||
Cumulative Effect, Period Of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | $ 0 | $ 0 | (3,551) | $ 0 | 0 |
Balance at end of the period | (3,551) | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Unallocated | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | (1,945) | ||||
Balance at end of the period | (1,945) | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Commercial Portfolio Segment | Commercial and industrial | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | (7,511) | ||||
Balance at end of the period | (7,511) | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Commercial Portfolio Segment | Construction Loans | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | (1,901) | ||||
Balance at end of the period | (1,901) | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Consumer Portfolio Segment | Residential Mortgage Loans | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 20,089 | ||||
Balance at end of the period | 20,089 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Consumer Portfolio Segment | Consumer and Other Loans | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | 2,089 | ||||
Balance at end of the period | 2,089 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Multifamily | Commercial Portfolio Segment | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | (9,741) | ||||
Balance at end of the period | (9,741) | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Retail Site | Commercial Portfolio Segment | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Loss | |||||
Balance at beginning of the period | $ (4,631) | ||||
Balance at end of the period | $ (4,631) |
Allowance for credit losses, He
Allowance for credit losses, Held To Maturity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | ||
Balance at beginning of the period | $ 2,995 | $ 0 |
Provision for credit losses | 249 | 680 |
Balance at end of the period | 3,244 | 3,244 |
Cumulative Effect, Period Of Adoption, Adjustment | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | ||
Balance at beginning of the period | $ 0 | $ 2,564 |
Allowance for credit losses, _2
Allowance for credit losses, Held to Maturity by Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | ||
Balance at beginning of the period | $ 2,995 | $ 0 |
Provision for credit losses | 249 | 680 |
Balance at end of the period | 3,244 | 3,244 |
Municipal bonds | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | ||
Balance at beginning of the period | 0 | |
Provision for credit losses | 10 | |
Balance at end of the period | 27 | 27 |
Corporate and Other Debt Securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | ||
Balance at beginning of the period | 0 | |
Provision for credit losses | 670 | |
Balance at end of the period | 3,217 | 3,217 |
Cumulative Effect, Period Of Adoption, Adjustment | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | ||
Balance at beginning of the period | $ 0 | 2,564 |
Cumulative Effect, Period Of Adoption, Adjustment | Municipal bonds | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | ||
Balance at beginning of the period | 17 | |
Cumulative Effect, Period Of Adoption, Adjustment | Corporate and Other Debt Securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | ||
Balance at beginning of the period | $ 2,547 |
Allowance for credit losses, of
Allowance for credit losses, off balance sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Off-Balance Sheet, Credit Loss, Liability | ||
Balance at beginning of the period | $ 17,142 | $ 425 |
Provision for credit losses | 3,105 | 7,148 |
Balance at end of the period | 20,247 | 20,247 |
Cumulative Effect, Period Of Adoption, Adjustment | ||
Off-Balance Sheet, Credit Loss, Liability | ||
Balance at beginning of the period | $ 0 | $ 12,674 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Credit Loss [Abstract] | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member |
Accrued interest receivable | $ 71.3 | |
Held-to-maturity, accrued interest receivable | $ 10.3 |
Deposits (Summary of Deposits)
Deposits (Summary of Deposits) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Non-interest bearing: | ||
Checking accounts | $ 3,040,450 | $ 2,472,232 |
Interest bearing: | ||
Checking accounts | 5,852,330 | 5,512,979 |
Money market deposits | 4,311,095 | 3,817,718 |
Savings | 2,062,445 | 2,050,101 |
Certificates of deposit | 4,220,982 | 4,007,308 |
Total deposits | $ 19,487,302 | $ 17,860,338 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets | ||
Gross Intangible Asset | $ 41,155 | $ 41,079 |
Accumulated Amortization | (23,858) | (25,653) |
Valuation Allowance | (2,654) | (103) |
Net Intangible Assets | 14,643 | 15,323 |
Goodwill | 94,535 | 82,546 |
Goodwill and intangible assets | 109,178 | 97,869 |
Mortgage servicing rights | ||
Finite-Lived Intangible Assets | ||
Gross Intangible Asset | 16,942 | 19,368 |
Accumulated Amortization | (4,621) | (7,140) |
Valuation Allowance | (2,654) | (103) |
Net Intangible Assets | 9,667 | 12,125 |
Core deposit premiums | ||
Finite-Lived Intangible Assets | ||
Gross Intangible Asset | 23,063 | 20,561 |
Accumulated Amortization | (18,712) | (18,031) |
Valuation Allowance | 0 | 0 |
Net Intangible Assets | 4,351 | 2,530 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Intangible Asset | 1,150 | 1,150 |
Accumulated Amortization | (525) | (482) |
Valuation Allowance | 0 | 0 |
Net Intangible Assets | $ 625 | $ 668 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets | |||
Loans sold | $ 1,770 | $ 1,770 | $ 1,670 |
Estimated fair value of servicing asset in intangible assets | 10.1 | $ 10.1 | $ 14.1 |
Weighted average discount rate of servicing assets (percentage) | 12.04% | ||
Weighted average constant prepayment rate on mortgages (percentage) | 23.70% | ||
Weighted average life of servicing assets, years (in years) | 3 years 6 months | ||
Mortgage servicing rights | |||
Finite-Lived Intangible Assets | |||
Increase to the valuation allowance | $ 2.6 | ||
Core deposit premiums | |||
Finite-Lived Intangible Assets | |||
Useful life, years (in years) | 10 years | ||
Gold Coast Bancorp, Inc. | Core deposit premiums | |||
Finite-Lived Intangible Assets | |||
Core deposit premiums | $ 2.5 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description | ||
Option to terminate the lease (in years) | 1 year | |
Right of use assets | $ 3.1 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Lease liability | $ 3.1 | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
Maximum | ||
Lessee, Lease, Description | ||
Remaining lease term (in years) | 16 years | |
Renewal term (in years) | 10 years |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 172,432 | $ 175,143 |
Operating lease liabilities | $ 184,572 | $ 185,827 |
Weighted average remaining lease term (in years) | 9 years 3 months 18 days | 9 years 8 months 12 days |
Weighted average discount rate (percentage) | 2.70% | 2.74% |
Leases (Supplemental Income and
Leases (Supplemental Income and Expense Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Included in office occupancy and equipment expense: | ||||
Operating lease cost | $ 6,526 | $ 6,323 | $ 12,807 | $ 12,643 |
Short-term lease cost | 103 | 72 | 189 | 155 |
Variable lease cost | 0 | 0 | (1) | 0 |
Included in other income: | ||||
Sublease income | $ 51 | $ 67 | $ 118 | $ 134 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash paid for amounts included in the measurement of operating lease liabilities: | ||||
Operating cash flows from operating leases | $ 5,872 | $ 6,158 | $ 11,579 | $ 12,296 |
Operating lease liabilities arising from obtaining right-of-use assets (non-cash): | ||||
Operating leases | $ 7,278 | $ 1,773 | $ 7,837 | $ 1,791 |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due | ||
Remainder | $ 13,105 | |
Year 1 | 25,232 | $ 24,013 |
Yesr 2 | 23,589 | 23,888 |
Year 3 | 22,486 | 22,270 |
Year 4 | 22,440 | 21,227 |
Year 5 | 21,162 | |
Thereafter | 103,066 | |
Thereafter | 100,662 | |
Total lease payments | 209,918 | 213,222 |
Less: Imputed interest | (25,346) | (27,395) |
Total operating lease liabilities | $ 184,572 | $ 185,827 |
Equity Incentive Plan (Narrativ
Equity Incentive Plan (Narrative) (Details) - USD ($) $ in Millions | Jun. 09, 2015 | Jun. 30, 2020 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total stock options granted (shares) | 0 | 50,000 | |
Compensation not yet recognized | $ 7.4 | ||
Compensation cost not yet recognized, period for recognition (in years) | 1 year 7 months 24 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares granted (shares) | 68,923 | 658,419 | |
Compensation cost not yet recognized, period for recognition (in years) | 2 years 5 months 23 days | ||
Compensation not yet recognized, restricted stock | $ 22.5 | ||
2015 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized (shares) | 30,881,296 | ||
2015 Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized (shares) | 13,234,841 | ||
2015 Plan | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized (shares) | 17,646,455 | ||
Expiration period (in years) | 10 years | ||
Minimum | 2015 Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period (in years) | 5 years | ||
Minimum | 2015 Plan | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period (in years) | 5 years | ||
Maximum | 2015 Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period (in years) | 7 years | ||
Maximum | 2015 Plan | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period (in years) | 7 years |
Equity Incentive Plan (Fair Val
Equity Incentive Plan (Fair Value) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Weighted average expected life (in years) | 6 years 6 months | |
Weighted average risk-free rate of return (in percentage) | 2.50% | |
Weighted average volatility (in percentage) | 18.70% | |
Dividend yield (in percentage) | 3.57% | |
Weighted average fair value of options granted (usd per share) | $ 1.60 | |
Total stock options granted (shares) | 0 | 50,000 |
Equity Incentive Plan (Shares-b
Equity Incentive Plan (Shares-based compensation expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Stock option expense | $ 1,011 | $ 1,350 | $ 1,999 | $ 2,652 |
Restricted stock expense | 2,943 | 3,636 | 5,844 | 6,907 |
Total share-based compensation expense | $ 3,954 | $ 4,986 | $ 7,843 | $ 9,559 |
Equity Incentive Plan (Summary
Equity Incentive Plan (Summary of Stock Option Activity and Related Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Number of Stock Options | |||
Beginning balance (shares) | 5,654,461 | ||
Granted (shares) | 0 | 50,000 | |
Exercised (shares) | 0 | ||
Forfeited (shares) | (10,802) | ||
Expired (shares) | (39,087) | ||
Ending balance (shares) | 5,604,572 | 5,654,461 | |
Exercisable at period end (shares) | 3,800,760 | ||
Weighted Average Exercise Price | |||
Beginning balance (usd per share) | $ 12.46 | ||
Granted (usd per share) | 0 | ||
Exercised (usd per share) | 0 | ||
Forfeited (usd per share) | 12.55 | ||
Expired (usd per share) | 12.54 | ||
Ending balance (usd per share) | 12.46 | $ 12.46 | |
Exercisable end of the year (usd per share) | $ 12.43 | ||
Weighted Average Remaining Contractual Life (in years) | 5 years | 5 years 6 months | |
Weighted Average Remaining Contractual Life, Exercisable (in years) | 5 years | ||
Aggregate Intrinsic Value | $ 29 | $ 363 | |
Aggregate Intrinsic Value, Exercisable | $ 29 |
Equity Incentive Plan (Restrict
Equity Incentive Plan (Restricted Stock) (Details) - Restricted Stock - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Number of Shares Awarded | ||
Beginning balance (shares) | 2,894,352 | |
Granted (shares) | 68,923 | 658,419 |
Vested (shares) | (954,345) | |
Forfeited (shares) | (15,973) | |
Ending balance (shares) | 1,992,957 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance (usd per share) | $ 12.57 | |
Granted (usd per share) | 10.67 | |
Vested (usd per share) | 12.63 | |
Forfeited (usd per share) | 12.34 | |
Ending balance (usd per share) | $ 12.48 |
Net Periodic Benefit Plan Exp_3
Net Periodic Benefit Plan Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Retirement Benefits [Abstract] | ||||
Maximum annual contributions per employee, percent (percentage) | 60.00% | |||
Annual benefit, period (in months) | 36 months | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Interest cost | $ 324,000 | $ 397,000 | $ 648,000 | $ 794,000 |
Net loss | 299,000 | 0 | 598,000 | 0 |
Total net periodic benefit cost | $ 623,000 | $ 397,000 | 1,246,000 | $ 794,000 |
Multi-employer contributions | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)interest_rate_swap | |
Derivative | ||
Interest rate swaps terminated | interest_rate_swap | 3 | |
Derivative contracts | ||
Derivative | ||
Notional amounts of swaps terminated | $ 1,000 | |
Derivatives designated as hedging instruments: | Derivative contracts | ||
Derivative | ||
Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense | $ 47.4 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Fair Value of Derivative Instruments on the Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives designated as hedging instruments: | Other assets | ||
Derivatives, Fair Value | ||
Asset derivatives | $ 141 | $ 559 |
Derivatives designated as hedging instruments: | Other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives | 0 | |
Derivatives not designated as hedging instruments: | Other assets | ||
Derivatives, Fair Value | ||
Asset derivatives | 35,831 | 5,430 |
Derivatives not designated as hedging instruments: | Other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives | 250 | 125 |
Interest rate swaps | ||
Derivatives, Fair Value | ||
Asset derivatives | 257 | 821 |
Liability derivatives | 250 | 125 |
Interest rate swaps | Derivatives designated as hedging instruments: | Other assets | ||
Derivatives, Fair Value | ||
Asset derivatives, notional amount | 3,900,000 | 2,675,000 |
Asset derivatives | 141 | 559 |
Interest rate swaps | Derivatives designated as hedging instruments: | Other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, notional amount | 0 | 0 |
Liability derivatives | 0 | 0 |
Interest rate swaps | Derivatives not designated as hedging instruments: | Other assets | ||
Derivatives, Fair Value | ||
Asset derivatives, notional amount | 718,000 | 652,000 |
Asset derivatives | 35,831 | 5,430 |
Interest rate swaps | Derivatives not designated as hedging instruments: | Other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, notional amount | 0 | 0 |
Liability derivatives | 0 | 0 |
Other Contracts | Derivatives not designated as hedging instruments: | Other assets | ||
Derivatives, Fair Value | ||
Asset derivatives, notional amount | 0 | 0 |
Asset derivatives | 0 | 0 |
Other Contracts | Derivatives not designated as hedging instruments: | Other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, notional amount | 22,000 | 22,000 |
Liability derivatives | $ 250 | $ 125 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Effective Derivative Instrument) (Details) - Derivative contracts - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flow Hedges - Interest rate swaps | ||||
Amount of loss recognized in other comprehensive income (loss) | $ (17,040) | $ (38,664) | $ (117,401) | $ (58,345) |
Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) to interest expense | $ (6,628) | $ 1,728 | $ (8,717) | $ 3,818 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Location in the Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||
Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | $ 181,987 | $ 159,168 | $ 355,270 | $ 321,846 |
Derivative not designated as hedging instruments | 4 | (40) | (125) | (11) |
Interest contracts | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||
Total amounts of income and expense line items presented in the income statement in which the effects of fair value are recorded | (9,003) | 1,764 | (11,511) | 3,755 |
Interest contracts | Fair Value Hedging | Interest income on loans | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | ||||
Hedged items | (2,239) | 5,297 | 4,530 | 6,219 |
Derivatives designated as hedging instruments | (136) | (5,261) | (7,324) | (6,282) |
Interest contracts | Cash Flow Hedging | Cash flow hedge | Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||
Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | (6,628) | (8,717) | ||
Interest contracts | Cash Flow Hedging | Cash flow hedge | Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||
Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | 1,728 | 3,818 | ||
Interest contracts | Cash Flow Hedging | Interest expense on borrowings | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) as a result that a forecasted transaction is no longer probable of occurring | 0 | 0 | 0 | 0 |
Other Contracts | Other income / (expense) | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||
Derivative not designated as hedging instruments | $ 4 | $ (40) | $ (125) | $ (11) |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities (Cumulative Basis Adjustment for Fair Value Hedges) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | $ 482,649 | $ 478,120 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | 10,515 | $ 6,426 |
Amortized cost basis of the closed portfolios used in these hedging relationships | 1,230,000 | |
Hedging adjustment on discontinued hedging relationships | $ 2,900 |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities (Offsetting Derivatives) (Details) - Derivative contracts - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Gross Amounts Recognized | $ 257 | $ 821 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 257 | 821 |
Gross Amounts Not Offset, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset, Cash Collateral Posted | 0 | 0 |
Net Amount | 257 | 821 |
Liabilities: | ||
Gross Amounts Recognized | 250 | 125 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 250 | 125 |
Gross Amounts Not Offset, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset, Cash Collateral Posted | 0 | 0 |
Net Amount | $ 250 | $ 125 |
Comprehensive Income (Component
Comprehensive Income (Components of Comprehensive Income (Loss), Gross and Net Of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Net income, gross | $ 58,829 | $ 65,345 | $ 112,988 | $ 132,808 |
Net income, tax | (16,218) | (18,721) | (30,865) | (38,026) |
Net income | 42,611 | 46,624 | 82,123 | 94,782 |
Other comprehensive (loss) income, gross | (10,754) | (12,222) | (59,265) | (12,053) |
Other comprehensive (loss) income, tax | 2,904 | 4,486 | 18,651 | 5,211 |
Total other comprehensive loss | (7,850) | (7,736) | (40,614) | (6,842) |
Comprehensive income, gross | 48,075 | 53,123 | 53,723 | 120,755 |
Comprehensive income, tax | (13,314) | (14,235) | (12,214) | (32,815) |
Total comprehensive income | 34,761 | 38,888 | 41,509 | 87,940 |
Change in funded status of retirement obligations | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Other comprehensive (loss) income, gross | 416 | 19 | 444 | 37 |
Other comprehensive (loss) income, tax | (117) | (5) | (125) | (10) |
Total other comprehensive loss | 299 | 14 | 319 | 27 |
Unrealized (losses) gains on debt securities available-for-sale | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Other comprehensive (loss) income, gross | (1,216) | 21,767 | 48,193 | 43,281 |
Other comprehensive (loss) income, tax | 219 | (5,199) | (11,562) | (10,474) |
Total other comprehensive loss | (997) | 16,568 | 36,631 | 32,807 |
Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Other comprehensive (loss) income, gross | 73 | 443 | 147 | 600 |
Other comprehensive (loss) income, tax | (17) | (125) | (35) | (169) |
Total other comprehensive loss | 56 | 318 | 112 | 431 |
Reclassification adjustment for security losses included in net income | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Other comprehensive (loss) income, gross | 0 | 5,690 | 0 | 5,690 |
Other comprehensive (loss) income, tax | 0 | (1,469) | 0 | (1,469) |
Total other comprehensive loss | 0 | 4,221 | 0 | 4,221 |
Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Other comprehensive (loss) income, gross | 385 | 251 | 635 | 502 |
Other comprehensive (loss) income, tax | (108) | (70) | (178) | (141) |
Total other comprehensive loss | 277 | 181 | 457 | 361 |
Net losses on derivatives | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Other comprehensive (loss) income, gross | (10,412) | (40,392) | (108,684) | (62,163) |
Other comprehensive (loss) income, tax | 2,927 | 11,354 | 30,551 | 17,474 |
Total other comprehensive loss | $ (7,485) | $ (29,038) | $ (78,133) | $ (44,689) |
Comprehensive Income (Compone_2
Comprehensive Income (Component of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | $ 2,594,758 | $ 2,955,830 | $ 2,621,950 | $ 3,005,330 |
Net change | (7,850) | (7,736) | (40,614) | (6,842) |
Balance, end of period | 2,622,900 | 2,926,875 | 2,622,900 | 2,926,875 |
Total accumulated other comprehensive loss | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (51,386) | (10,675) | (18,622) | (11,569) |
Net change | (7,850) | (7,736) | (40,614) | (6,842) |
Balance, end of period | (59,236) | (18,411) | (59,236) | (18,411) |
Change in funded status of retirement obligations | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (6,690) | (3,018) | ||
Net change | 299 | 14 | 319 | 27 |
Balance, end of period | (6,371) | (2,991) | (6,371) | (2,991) |
Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (386) | (921) | ||
Net change | 56 | 318 | 112 | 431 |
Balance, end of period | (274) | (490) | (274) | (490) |
Unrealized gains (losses) on debt securities available-for-sale and gains included in net income | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | 29,456 | (8,884) | ||
Net change | 36,631 | 37,028 | ||
Balance, end of period | 66,087 | 28,144 | 66,087 | 28,144 |
Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (10,629) | (11,397) | ||
Net change | 277 | 181 | 457 | 361 |
Balance, end of period | (10,172) | (11,036) | (10,172) | (11,036) |
Net losses on derivatives | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (30,373) | 12,651 | ||
Net change | (7,485) | (29,038) | (78,133) | (44,689) |
Balance, end of period | $ (108,506) | $ (32,038) | $ (108,506) | $ (32,038) |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification Adjustment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Loss on securities, net | $ 55 | $ (5,617) | $ 257 | $ (5,553) |
Amortization of net loss (gain) | (55,791) | (59,854) | (116,183) | (120,852) |
Reclassification adjustment for unrealized losses (gains) on derivatives | (64,227) | (99,900) | (147,043) | (193,439) |
Total before tax | 58,829 | 65,345 | 112,988 | 132,808 |
Income tax expense | (16,218) | (18,721) | (30,865) | (38,026) |
Net income | 42,611 | 46,624 | 82,123 | 94,782 |
Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Total before tax | 6,391 | 3,960 | 8,780 | 1,868 |
Income tax expense | (1,762) | (973) | (2,398) | (375) |
Net income | 4,629 | 2,987 | 6,382 | 1,493 |
Reclassification adjustment for losses included in net income | Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Loss on securities, net | 0 | 5,690 | 0 | 5,690 |
Change in funded status of retirement obligations | Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Amortization of net loss (gain) | 299 | (2) | 599 | (4) |
Interest expense | Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for unrealized losses (gains) on derivatives | $ 6,092 | $ (1,728) | $ 8,181 | $ (3,818) |
Stockholders_ Equity (Component
Stockholders’ Equity (Components of stockholders’ equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period | $ 2,594,758 | $ 2,955,830 | $ 2,621,950 | $ 3,005,330 |
Net income | 42,611 | 46,624 | 82,123 | 94,782 |
Other comprehensive loss, net of tax | (7,850) | (7,736) | (40,614) | (6,842) |
Common stock issued to finance acquisition | 20,881 | 20,881 | ||
Purchase of treasury stock | (2,429) | (44,023) | (3,361) | (117,755) |
Treasury stock allocated to restricted stock plan | 0 | 0 | ||
Compensation cost for stock options and restricted stock | 3,954 | 4,993 | 7,850 | 9,566 |
Exercise of stock options | 491 | 659 | ||
Restricted stock forfeitures | 0 | |||
Cash dividend paid | (30,021) | (30,646) | (59,714) | (61,637) |
ESOP shares allocated or committed to be released | 996 | 1,342 | 2,276 | 2,772 |
Balance, end of period | 2,622,900 | 2,926,875 | 2,622,900 | 2,926,875 |
Common stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period | 3,591 | 3,591 | 3,591 | 3,591 |
Common stock issued to finance acquisition | 28 | 28 | ||
Balance, end of period | 3,619 | 3,591 | 3,619 | 3,591 |
Additional paid-in capital | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period | 2,826,288 | 2,810,832 | 2,822,364 | 2,805,423 |
Common stock issued to finance acquisition | 20,853 | 20,853 | ||
Treasury stock allocated to restricted stock plan | (36) | (6,500) | (736) | (8,011) |
Compensation cost for stock options and restricted stock | 3,954 | 4,993 | 7,850 | 9,566 |
Exercise of stock options | (221) | (286) | ||
Restricted stock forfeitures | 154 | 197 | 1,885 | |
ESOP shares allocated or committed to be released | 247 | 593 | 778 | 1,274 |
Balance, end of period | 2,851,306 | 2,809,851 | 2,851,306 | 2,809,851 |
Retained earnings | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period | 1,247,028 | 1,191,020 | 1,245,793 | 1,173,897 |
Net income | 42,611 | 46,624 | 82,123 | 94,782 |
Treasury stock allocated to restricted stock plan | (13) | (118) | (103) | (68) |
Restricted stock forfeitures | (7) | (3) | (101) | |
Cash dividend paid | (30,021) | (30,646) | (59,714) | (61,637) |
Balance, end of period | 1,259,605 | 1,206,873 | 1,259,605 | 1,206,873 |
Treasury stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period | (1,353,246) | (958,425) | (1,352,910) | (884,750) |
Purchase of treasury stock | (2,429) | (44,023) | (3,361) | (117,755) |
Treasury stock allocated to restricted stock plan | 49 | 6,618 | 839 | 8,079 |
Exercise of stock options | 712 | 945 | ||
Restricted stock forfeitures | (147) | (194) | (1,784) | |
Balance, end of period | (1,355,626) | (995,265) | (1,355,626) | (995,265) |
Unallocated common stock held by ESOP | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period | (77,517) | (80,513) | (78,266) | (81,262) |
ESOP shares allocated or committed to be released | 749 | 749 | 1,498 | 1,498 |
Balance, end of period | (76,768) | (79,764) | (76,768) | (79,764) |
Accumulated other comprehensive loss | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period | (51,386) | (10,675) | (18,622) | (11,569) |
Other comprehensive loss, net of tax | (7,850) | (7,736) | (40,614) | (6,842) |
Balance, end of period | $ (59,236) | $ (18,411) | $ (59,236) | $ (18,411) |
Stockholders_ Equity (Additiona
Stockholders’ Equity (Additional Information) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | ||||
Purchase of treasury stock (shares) | 298,977 | 3,829,780 | 383,366 | 10,038,159 |
Cash dividend paid (usd per share) | $ 0.12 | $ 0.11 | $ 0.24 | $ 0.22 |
Treasury stock allocated to restricted stock plan (shares) | 4,000 | 538,756 | 68,923 | 658,419 |
Restricted stock forfeitures (shares) | 12,267 | 15,973 | 149,333 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value of Our Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Equity securities | $ 6,190 | $ 6,039 |
Debt securities available-for-sale, at estimated fair value | 2,886,567 | 2,695,390 |
Interest rate swaps | ||
Assets: | ||
Interest rate swaps | 257 | 821 |
Liabilities: | ||
Derivative financial instruments | 250 | 125 |
Government-sponsored enterprises | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 4,832 | |
Federal Home Loan Mortgage Corporation | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 1,275,825 | 1,240,379 |
Federal National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 1,311,137 | 1,178,049 |
Government National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 294,773 | 276,962 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Equity securities | 6,190 | 6,039 |
Debt securities available-for-sale, at estimated fair value | 2,886,567 | 2,695,390 |
Liabilities: | ||
Derivative financial instruments | 250 | 125 |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 5,989 | |
Interest rate swaps | 35,972 | |
Fair Value, Measurements, Recurring | Other contracts | ||
Liabilities: | ||
Derivative financial instruments | 250 | 125 |
Fair Value, Measurements, Recurring | Government-sponsored enterprises | ||
Assets: | ||
Estimated fair value | 4,832 | |
Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 1,275,825 | 1,240,379 |
Fair Value, Measurements, Recurring | Federal National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 1,311,137 | 1,178,049 |
Fair Value, Measurements, Recurring | Government National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 294,773 | 276,962 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Equity securities | 6,190 | 6,039 |
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 0 | |
Interest rate swaps | 0 | |
Level 1 | Fair Value, Measurements, Recurring | Other contracts | ||
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Government-sponsored enterprises | ||
Assets: | ||
Estimated fair value | 0 | |
Level 1 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Federal National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Government National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Equity securities | 0 | 0 |
Debt securities available-for-sale, at estimated fair value | 2,886,567 | 2,695,390 |
Liabilities: | ||
Derivative financial instruments | 250 | 125 |
Level 2 | Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 5,989 | |
Interest rate swaps | 35,972 | |
Level 2 | Fair Value, Measurements, Recurring | Other contracts | ||
Liabilities: | ||
Derivative financial instruments | 250 | 125 |
Level 2 | Fair Value, Measurements, Recurring | Government-sponsored enterprises | ||
Assets: | ||
Estimated fair value | 4,832 | |
Level 2 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 1,275,825 | 1,240,379 |
Level 2 | Fair Value, Measurements, Recurring | Federal National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 1,311,137 | 1,178,049 |
Level 2 | Fair Value, Measurements, Recurring | Government National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 294,773 | 276,962 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Equity securities | 0 | 0 |
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 0 | |
Interest rate swaps | 0 | |
Level 3 | Fair Value, Measurements, Recurring | Other contracts | ||
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Government-sponsored enterprises | ||
Assets: | ||
Estimated fair value | 0 | |
Level 3 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Federal National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Government National Mortgage Association | ||
Assets: | ||
Debt securities available-for-sale, at estimated fair value | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | Jun. 30, 2020USD ($) | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Outstanding minimum balance of loans to be evaluated for impairment individually | $ 1,000,000 | |
Outstanding minimum balance of loans that are evaluated for impairment individually | $ 1,000,000 | |
Prepayment speeds | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net input (percentage) | 0.0954 | 0.0660 |
Prepayment speeds | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net input (percentage) | 0.2712 | 0.2910 |
Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net input (percentage) | 0.1204 | 0.1205 |
Discount Rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans, measurement input (percentage) | 0.00% | |
Other real estate owned, measurement input (percentage) | 0 | |
Discount Rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans, measurement input (percentage) | 25.00% | |
Other real estate owned, measurement input (percentage) | 0.25 |
Fair Value Measurements (Carr_2
Fair Value Measurements (Carrying Value of Our Assets Measured at Fair Value on a Non-Recurring Basis) (Details) $ in Thousands | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net | $ 10,100 | $ 14,100 |
Collateral-dependent loans | 88,526 | |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset, fair value | 14,596 | 10,671 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset, fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset, fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset, fair value | 14,596 | 10,671 |
Estimated cash flow | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net | 9,532 | 10,409 |
Estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net | 0 | 0 |
Estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net | 0 | 0 |
Estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net | 9,532 | 10,409 |
Market comparable and estimated cash flow | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral-dependent loans | 5,064 | |
Market comparable and estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral-dependent loans | 0 | |
Market comparable and estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral-dependent loans | 0 | |
Market comparable and estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral-dependent loans | $ 5,064 | |
Market comparable | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 262 | |
Market comparable | Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 0 | |
Market comparable | Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 0 | |
Market comparable | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | $ 262 | |
Market comparable and estimated cash flow | Market comparable and estimated cash flow | Minimum | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependant loans (percentage) | 0.06% | |
Market comparable and estimated cash flow | Market comparable and estimated cash flow | Maximum | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependant loans (percentage) | 11.50% | |
Market comparable and estimated cash flow | Market comparable and estimated cash flow | Weighted Average | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependant loans (percentage) | 10.18% | |
Lack of marketability | Estimated cash flow | Minimum | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net input (percentage) | 0.095 | 0.066 |
Lack of marketability | Estimated cash flow | Maximum | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net input (percentage) | 0.271 | 0.291 |
Lack of marketability | Estimated cash flow | Weighted Average | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
MSR, net input (percentage) | 0.2370 | 0.1104 |
Lack of marketability | Market comparable | Minimum | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned, measurement input (percentage) | 0 | |
Lack of marketability | Market comparable | Maximum | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned, measurement input (percentage) | 0.250 | |
Lack of marketability | Market comparable | Weighted Average | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned, measurement input (percentage) | 0.0270 |
Fair Value Measurements (Carr_3
Fair Value Measurements (Carrying Amounts and Estimated Fair Values) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Equities | $ 6,190 | $ 6,039 |
Debt securities available-for-sale | 2,886,567 | 2,695,390 |
Debt securities held-to-maturity, net | 1,262,808 | 1,190,104 |
Carrying value | ||
Financial assets: | ||
Cash and cash equivalents | 735,234 | 174,915 |
Equities | 6,190 | 6,039 |
Debt securities available-for-sale | 2,886,567 | 2,695,390 |
Debt securities held-to-maturity, net | 1,198,401 | 1,148,815 |
FHLB stock | 229,829 | 267,219 |
Loans held for sale | 39,767 | 29,797 |
Net loans | 21,078,644 | 21,476,056 |
Derivative financial instruments | 35,972 | 5,989 |
Financial liabilities: | ||
Deposits, other than time deposits | 15,266,320 | 13,853,030 |
Time deposits | 4,220,982 | 4,007,308 |
Borrowed funds | 4,632,016 | 5,827,111 |
Derivative financial instruments | 250 | 125 |
Estimated fair value | ||
Financial assets: | ||
Cash and cash equivalents | 735,234 | 174,915 |
Equities | 6,190 | 6,039 |
Debt securities available-for-sale | 2,886,567 | 2,695,390 |
Debt securities held-to-maturity, net | 1,262,808 | 1,190,104 |
FHLB stock | 229,829 | 267,219 |
Loans held for sale | 39,767 | 29,797 |
Net loans | 21,369,385 | 21,563,627 |
Derivative financial instruments | 35,972 | 5,989 |
Financial liabilities: | ||
Deposits, other than time deposits | 15,266,320 | 13,853,030 |
Time deposits | 4,243,734 | 4,007,342 |
Borrowed funds | 4,721,251 | 5,834,895 |
Derivative financial instruments | 250 | 125 |
Level 1 | Estimated fair value | ||
Financial assets: | ||
Cash and cash equivalents | 735,234 | 174,915 |
Equities | 6,190 | 6,039 |
Debt securities available-for-sale | 0 | 0 |
Debt securities held-to-maturity, net | 0 | 0 |
FHLB stock | 229,829 | 267,219 |
Loans held for sale | 0 | 0 |
Net loans | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Financial liabilities: | ||
Deposits, other than time deposits | 15,266,320 | 13,853,030 |
Time deposits | 0 | 0 |
Borrowed funds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Level 2 | Estimated fair value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Equities | 0 | 0 |
Debt securities available-for-sale | 2,886,567 | 2,695,390 |
Debt securities held-to-maturity, net | 1,202,222 | 1,116,771 |
FHLB stock | 0 | 0 |
Loans held for sale | 39,767 | 29,797 |
Net loans | 0 | 0 |
Derivative financial instruments | 35,972 | 5,989 |
Financial liabilities: | ||
Deposits, other than time deposits | 0 | 0 |
Time deposits | 4,243,734 | 4,007,342 |
Borrowed funds | 4,721,251 | 5,834,895 |
Derivative financial instruments | 250 | 125 |
Level 3 | Estimated fair value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Equities | 0 | 0 |
Debt securities available-for-sale | 0 | 0 |
Debt securities held-to-maturity, net | 60,586 | 73,333 |
FHLB stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Net loans | 21,369,385 | 21,563,627 |
Derivative financial instruments | 0 | 0 |
Financial liabilities: | ||
Deposits, other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Borrowed funds | 0 | 0 |
Derivative financial instruments | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue | ||||
Revenue | $ 4,873 | $ 6,238 | $ 11,842 | $ 11,744 |
Fees and service charges | ||||
Disaggregation of Revenue | ||||
Revenue | 2,908 | 3,730 | 6,858 | 7,013 |
Other income | ||||
Disaggregation of Revenue | ||||
Revenue | $ 1,965 | $ 2,508 | $ 4,984 | $ 4,731 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ / shares in Units, $ in Millions | Aug. 03, 2020USD ($)branchproperty | Jul. 29, 2020$ / shares |
Subsequent Event | ||
Dividends declared per share (usd per share) | $ / shares | $ 0.12 | |
Plan | Sales lease back | ||
Subsequent Event | ||
Number of properties (property) | property | 15 | |
Number of branches | branch | 15 | |
Gain on sales of property | $ | $ 6.7 |