Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-17820 | ||
Entity Registrant Name | LAKELAND BANCORP, INC | ||
Entity Incorporation, State or Country Code | NJ | ||
Entity Tax Identification Number | 22-2953275 | ||
Entity Address, Address Line One | 250 Oak Ridge Road | ||
Entity Address, City or Town | Oak Ridge | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07438 | ||
City Area Code | 973 | ||
Local Phone Number | 697-2000 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | LBAI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 780,779,539 | ||
Entity Common Stock, Shares Outstanding (in shares) | 50,513,886 | ||
Documents Incorporated by Reference | Lakeland Bancorp, Inc. Proxy Statement for its 2020 Annual Meeting of Shareholders (Part III). | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000846901 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash | $ 275,794 | $ 205,199 |
Interest-bearing deposits due from banks | 6,577 | 3,400 |
Total cash and cash equivalents | 282,371 | 208,599 |
Investment securities, available for sale, at fair value | 755,900 | 638,618 |
Equity securities, at fair value | 16,473 | 15,921 |
Investment securities, held to maturity, at amortized cost with fair value of $124,904 at December 31, 2019 and $150,932 at December 31, 2018 | 123,975 | 153,646 |
Federal Home Loan Bank and other membership stock, at cost | 22,505 | 13,301 |
Loans held for sale | 1,743 | 1,113 |
Loans, net of deferred fees | 5,137,823 | 4,456,733 |
Allowance for loan losses | (40,003) | (37,688) |
Net loans | 5,097,820 | 4,419,045 |
Premises and equipment, net | 47,608 | 49,175 |
Operating lease right-of-use assets | 18,282 | |
Accrued interest receivable | 16,832 | 16,114 |
Goodwill | 156,277 | 136,433 |
Other identifiable intangible assets | 4,314 | 1,768 |
Bank owned life insurance | 112,392 | 110,052 |
Other assets | 54,744 | 42,308 |
TOTAL ASSETS | 6,711,236 | 5,806,093 |
Deposits: | ||
Noninterest-bearing | 1,124,121 | 950,218 |
Savings and interest-bearing transaction accounts | 3,298,854 | 2,913,414 |
Time deposits $250 thousand and under | 652,144 | 589,737 |
Time deposits over $250 thousand | 218,660 | 167,301 |
Total deposits | 5,293,779 | 4,620,670 |
Federal funds purchased and securities sold under agreements to repurchase | 328,658 | 233,905 |
Other borrowings | 165,816 | 181,118 |
Subordinated debentures | 118,220 | 105,027 |
Operating lease liabilities | 19,814 | |
Other liabilities | 59,686 | 41,634 |
TOTAL LIABILITIES | 5,985,973 | 5,182,354 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, no par value; authorized 100,000,000 shares; issued shares, 50,498,410 at December 31, 2019 and 47,486,250 at December 31, 2018 | 560,263 | 514,703 |
Retained earnings | 162,752 | 116,874 |
Accumulated other comprehensive gain (loss) | 2,248 | (7,838) |
TOTAL STOCKHOLDERS’ EQUITY | 725,263 | 623,739 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 6,711,236 | $ 5,806,093 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity, fair value | $ 124,904 | $ 150,932 |
Common stock, par value (in dollars per share) | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 50,498,410 | 47,486,250 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME | |||
Loans and fees | $ 233,535 | $ 193,143 | $ 172,342 |
Federal funds sold and interest-bearing deposits with banks | 1,720 | 1,559 | 880 |
Taxable investment securities and other | 19,722 | 16,710 | 14,987 |
Tax-exempt investment securities | 1,510 | 1,709 | 1,995 |
TOTAL INTEREST INCOME | 256,487 | 213,121 | 190,204 |
INTEREST EXPENSE | |||
Deposits | 49,248 | 30,620 | 16,600 |
Federal funds purchased and securities sold under agreements to repurchase | 1,471 | 471 | 198 |
Other borrowings | 9,734 | 8,471 | 8,168 |
TOTAL INTEREST EXPENSE | 60,453 | 39,562 | 24,966 |
NET INTEREST INCOME | 196,034 | 173,559 | 165,238 |
Provision for loan losses | 2,130 | 4,413 | 6,090 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 193,904 | 169,146 | 159,148 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 11,205 | 10,584 | 10,740 |
Commissions and fees | 6,230 | 5,542 | 4,858 |
Income on bank owned life insurance | 2,740 | 3,256 | 2,354 |
Gain (loss) on equity securities | 496 | (583) | 0 |
Gains on sales of loans | 1,660 | 1,329 | 1,836 |
Gain on sales and calls of investment securities, net | 0 | 0 | 2,524 |
Swap income | 3,231 | 1,992 | 982 |
Other income | 1,234 | 190 | 2,141 |
TOTAL NONINTEREST INCOME | 26,796 | 22,310 | 25,435 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 77,287 | 68,595 | 61,166 |
Net occupancy expense | 11,029 | 10,155 | 10,243 |
Furniture and equipment | 8,681 | 8,297 | 8,269 |
FDIC insurance expense | 431 | 1,608 | 1,577 |
Stationery, supplies and postage | 1,599 | 1,625 | 1,797 |
Marketing expense | 1,945 | 1,437 | 1,675 |
Data processing expense | 4,913 | 3,609 | 1,993 |
Telecommunications expense | 1,943 | 1,769 | 1,607 |
ATM and debit card expense | 2,377 | 2,195 | 2,051 |
Core deposit intangible amortization | 1,182 | 594 | 654 |
Other real estate and repossessed asset expense | 256 | 158 | 181 |
Long-term debt prepayment fee | 0 | 0 | 2,828 |
Merger related expenses | 3,178 | 464 | 0 |
Other expenses | 11,935 | 10,661 | 10,493 |
TOTAL NONINTEREST EXPENSE | 126,756 | 111,167 | 104,534 |
Income before provision for income taxes | 93,944 | 80,289 | 80,049 |
Provision for income taxes | 23,272 | 16,888 | 27,469 |
NET INCOME | $ 70,672 | $ 63,401 | $ 52,580 |
PER SHARE OF COMMON STOCK: | |||
Basic earnings (usd per share) | $ 1.39 | $ 1.32 | $ 1.10 |
Diluted earnings (usd per share) | 1.38 | 1.32 | 1.09 |
Cash dividends paid (usd per share) | $ 0.49 | $ 0.45 | $ 0.40 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 70,672 | $ 63,401 | $ 52,580 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||
Unrealized gains (losses) on securities available for sale | 10,718 | (3,507) | (903) |
Reclassification for securities gains included in net income | 0 | 0 | (1,640) |
Unrealized (losses) gains on derivatives | (586) | ||
Unrealized (losses) gains on derivatives | 41 | 37 | |
Change in pension liability, net | (46) | 20 | (16) |
Other comprehensive loss | 10,086 | (3,446) | (2,522) |
TOTAL COMPREHENSIVE INCOME | $ 80,758 | $ 59,955 | $ 50,058 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2016 | $ 550,044 | $ 510,861 | $ 38,590 | $ 593 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 52,580 | 52,580 | ||
Other comprehensive income (loss), net of tax | (2,522) | (2,522) | ||
Adjustment related to implementation of ASU 2018-02 | 0 | 420 | (420) | |
Stock based compensation | 2,325 | 2,325 | ||
Retirement of restricted stock | (773) | (773) | ||
Exercise of stock options, net of excess tax benefits | 321 | 321 | ||
Cash dividends, common stock | (18,853) | (18,853) | ||
Balance at end of period at Dec. 31, 2017 | 583,122 | 512,734 | 72,737 | (2,349) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 63,401 | 63,401 | ||
Other comprehensive income (loss), net of tax | (3,446) | (3,446) | ||
Adjustment related to implementation of ASU 2018-02 | (2,043) | |||
Stock based compensation | 2,425 | 2,425 | ||
Retirement of restricted stock | (763) | (763) | ||
Exercise of stock options, net of excess tax benefits | 307 | 307 | ||
Cash dividends, common stock | (21,307) | (21,307) | ||
Balance at end of period at Dec. 31, 2018 | 623,739 | 514,703 | 116,874 | (7,838) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 70,672 | 70,672 | ||
Other comprehensive income (loss), net of tax | 10,086 | 10,086 | ||
Stock based compensation | 2,545 | 2,545 | ||
Issuance of stock for Highlands acquisition | 43,417 | 43,417 | ||
Retirement of restricted stock | (715) | (715) | ||
Exercise of stock options, net of excess tax benefits | 313 | 313 | ||
Cash dividends, common stock | (24,919) | (24,919) | ||
Balance at end of period at Dec. 31, 2019 | $ 725,263 | $ 560,263 | $ 162,752 | $ 2,248 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 70,672 | $ 63,401 | $ 52,580 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization of premiums, discounts and deferred loan fees and costs | 3,660 | 4,153 | 5,153 |
Depreciation and amortization | 1,645 | 5,555 | 4,536 |
Amortization of intangible assets | 1,182 | 594 | 654 |
Amortization of operating lease right-of-use assets | 2,592 | ||
Provision for loan losses | 2,130 | 4,413 | 6,090 |
Stock based compensation | 2,545 | 2,425 | 2,325 |
Loans originated for sale | (57,605) | (49,748) | (60,783) |
Proceeds from sales of loans held for sale | 59,748 | 50,420 | 63,905 |
Gains on sales of securities | 0 | 0 | (2,524) |
Gains on sales of loans held for sale | (1,660) | (1,329) | (1,836) |
Gains on proceeds from bank owned life insurance policies | 0 | (421) | (109) |
Change in market value of equity securities | (496) | 583 | 0 |
Losses (gains) on other real estate and other repossessed assets | 72 | (338) | (646) |
Loss (gain) on sale of premises and equipment | 497 | 561 | (838) |
Long-term debt prepayment penalty | 0 | 0 | 2,828 |
Deferred tax expense (benefit) | 2,854 | (13,571) | 16,904 |
Excess tax benefits | 189 | 318 | 587 |
(Increase) decrease in other assets | (15,986) | 2,679 | (25,065) |
Increase in other liabilities | 15,092 | 9,743 | 3,705 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 87,131 | 79,438 | 67,466 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash acquired in acquisitions | 13,454 | 0 | 0 |
Proceeds from repayments and maturities of available for sale securities | 147,130 | 91,833 | 91,314 |
Proceeds from repayments and maturities of held to maturity securities | 31,457 | 26,083 | 43,218 |
Proceeds from sales of equity securities | 1,287 | 2,155 | 0 |
Proceeds from sales of available for sale securities | 0 | 0 | 4,500 |
Purchase of available for sale securities | (211,503) | (110,370) | (140,258) |
Purchase of held to maturity securities | (21,453) | (40,753) | (35,841) |
Purchase of equity securities | (1,343) | (570) | (307) |
Proceeds from redemptions of Federal Home Loan Bank stock | 95,643 | 6,799 | 13,497 |
Purchases of Federal Home Loan Bank stock | (103,080) | (7,524) | (10,974) |
Purchase of bank owned life insurance | 0 | 0 | (33,000) |
Death benefit proceeds from bank owned life insurance policy | 121 | 755 | 312 |
Net increase in loans | (252,441) | (310,256) | (289,914) |
Proceeds from dispositions and sales of bank premises and equipment | 1,827 | 697 | 1,638 |
Purchases of premises and equipment | (5,936) | (5,523) | (3,972) |
Proceeds from sales of other real estate and other repossessed assets | 860 | 4,116 | 4,638 |
NET CASH USED IN INVESTING ACTIVITIES | (303,977) | (342,558) | (355,149) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase in deposits | 264,279 | 252,329 | 276,537 |
Increase in federal funds purchased and securities sold under agreements to repurchase | 94,753 | 108,969 | 68,582 |
Proceeds from other borrowings | 46,260 | 60,003 | 306,184 |
Repayments of other borrowings | (89,353) | (70,752) | (377,183) |
Exercise of stock options | 313 | 307 | 321 |
Retirement of restricted stock | (715) | (763) | (773) |
Dividends paid | (24,919) | (21,307) | (18,853) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 290,618 | 328,786 | 254,815 |
Net increase (decrease) in cash and cash equivalents | 73,772 | 65,666 | (32,868) |
Cash and cash equivalents, beginning of year | 208,599 | 142,933 | 175,801 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 282,371 | 208,599 | 142,933 |
Supplemental schedule of non-cash investing and financing activities: | |||
Cash paid during the period for income taxes | 15,944 | 18,614 | 27,423 |
Cash paid during the period for interest | 59,949 | 38,679 | 24,571 |
Transfer of loans into other repossessed assets and other real estate owned | 665 | 3,765 | 3,763 |
Initial recognition of operating lease right-of-use assets | 18,651 | ||
Initial recognition of operating lease liabilities | 20,203 | ||
Non-cash assets acquired: | |||
Federal Home Loan Bank stock | 1,767 | 0 | 0 |
Investment securities | 22,734 | 0 | 0 |
Loans, including loans held for sale | 426,118 | 0 | 0 |
Goodwill and other intangible assets, net | 23,125 | 0 | 0 |
Other assets | 9,304 | 0 | 0 |
Total non-cash assets acquired | 483,048 | 0 | 0 |
Liabilities assumed: | |||
Deposits | 409,638 | 0 | 0 |
Other borrowings | 40,957 | 0 | 0 |
Other liabilities | 2,490 | 0 | 0 |
Total liabilities assumed | 453,085 | 0 | 0 |
Common stock issued for acquisitions | $ 43,417 | $ 0 | $ 0 |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | SUMMARY OF ACCOUNTING POLICIES Lakeland Bancorp, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, Lakeland Bank (“Lakeland”). Lakeland operates under a state bank charter and provides full banking services and, as a state bank, is subject to regulation by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation. Lakeland generates commercial, mortgage and consumer loans and receives deposits from customers located primarily in Northern and Central New Jersey and the metropolitan New York area. Through a third party, Lakeland also provides non-deposit products, such as securities brokerage services including mutual funds and variable annuities. Lakeland operates as a commercial bank offering a wide variety of commercial loans and, to a lesser degree, consumer credits. Its primary strategic aim is to establish a reputation and market presence as the “small and middle market business bank” in its principal markets. Lakeland funds its loans primarily by offering demand deposit, savings and money market, and time deposit accounts to commercial enterprises, individuals and municipalities in the communities we serve. Additionally, it originates residential mortgage loans, and services such loans which are owned by other investors. Lakeland also has an equipment finance division which provides loans to finance equipment primarily to small and medium sized business clients and an asset based lending department which specializes in utilizing particular assets to fund the working capital needs of borrowers. The Company and Lakeland are subject to regulations of certain state and federal agencies and, accordingly, are periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, Lakeland’s business is particularly susceptible to being affected by state and federal legislation and regulations. Basis of Financial Statement Presentation The accounting and reporting policies of the Company and its subsidiaries conform with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and predominant practices within the banking industry. The consolidated financial statements include the accounts of the Company, Lakeland, Lakeland NJ Investment Corp., Lakeland Investment Corp., Lakeland Equity, Inc. and Lakeland Preferred Equity, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The principal estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses and the valuation of the Company’s investment securities portfolio. The policies regarding these estimates are discussed below. The Company’s chief operating decision maker is its Chief Executive Officer. All of the Company’s financial services activities are interrelated and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, commercial lending is dependent upon the ability of Lakeland to fund itself with retail deposits and other borrowings and to manage interest rate and credit risk. The situation is also similar for consumer and residential mortgage lending. Moreover, the Company primarily operates in one market area, Northern and Central New Jersey, metropolitan New York and contiguous areas. Therefore, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. Accordingly, the Company has determined that it has one operating segment and thus one reporting segment. Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand, cash items in the process of collection, amounts due from banks and federal funds sold with an original maturity of three months or less. A portion of Lakeland’s cash on hand and on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. Investment Securities Investment securities are classified as held to maturity or available for sale. Management determines the appropriate classification of investment securities at the time of purchase. Investments in securities, for which management has both the ability and intent to hold to maturity, are classified as held to maturity and carried at cost, adjusted for the amortization of premiums and accretion of discounts computed by the effective interest method. Investments in debt securities, which management believes may be sold prior to maturity due to changes in interest rates, prepayment risk, liquidity requirements, or other factors, are classified as available for sale. Net unrealized gains and losses for such securities, net of tax effect, are reported as other comprehensive income (loss) and excluded from the determination of net income. Gains or losses on disposition of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method. Losses are recorded through the statement of income when the impairment is considered other-than-temporary, even if a decision to sell has not been made. The Company evaluates its investment securities portfolio for impairment each quarter. In estimating other-than-temporary losses, the Company considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company is more likely than not to sell the security before recovery of its cost basis. If a security has been impaired for more than twelve months, and the impairment is deemed other-than-temporary, a write down will occur in that quarter. If a loss is deemed to be other-than-temporary, it is recognized as a realized loss in the income statement with the security assigned a new cost basis. If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired, but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings in gain (loss) on securities, with the other portion of the loss recognized in other comprehensive income. If a determination is made that an equity security is other-than-temporarily impaired, the unrealized loss will be recognized as an other-than-temporary impairment charge in noninterest income as a component of gain (loss) on investment securities. The Company has an equity securities portfolio, which consists of investments in other financial institutions for market appreciation purposes, and recognizes net unrealized gains and losses through net income. Loans and Allowance for Loan Losses Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal and are net of unearned discount, unearned loan fees and an allowance for loan losses. Interest income is accrued as earned on a simple interest basis, adjusted for prepayments. All unamortized fees and costs related to the loan are amortized over the life of the loan using the interest method. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of interest and principal is doubtful. When a loan is placed on such non-accrual status, all accumulated accrued interest receivable is reversed out of current period income. Commercial loans are placed on non-accrual status with all accrued interest and unpaid interest reversed if (a) because of the deterioration in the financial position of the borrowers they are maintained on a cash basis (which means payments are applied when and as received rather than on a regularly scheduled basis), (b) payment in full of interest or principal is not expected, or (c) principal and interest have been in default for a period of 90 days or more unless the obligation is both well-secured and in process of collection. Residential mortgage loans and closed-end consumer loans are placed on non-accrual status at the time principal and interest have been in default for a period of 90 days or more, except where there exists sufficient collateral to cover the defaulted principal and interest payments, and the loans are well-secured and in the process of collection. Open-end consumer loans secured by real estate are generally placed on non-accrual and reviewed for charge-off when principal and interest payments are four months in arrears unless the obligations are well-secured and in the process of collection. Interest thereafter on such charged-off loans is taken into income when received only after full recovery of principal. As a general rule, a non-accrual asset may be restored to accrual status when none of its principal or interest is due and unpaid, satisfactory payments have been received for a sustained period (usually six months ), or when it otherwise becomes well-secured and in the process of collection. The Company defines impaired loans as all non-accrual loans with recorded investments of $500,000 or greater. Impaired loans also include all loans modified as troubled debt restructurings. Loans are considered impaired when, based on current information and events, it is probable that Lakeland will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate, or as a practical expedient, Lakeland may measure impairment based on a loan’s observable market price, or the fair value of the collateral, less estimated costs to sell, if the loan is collateral-dependent. Regardless of the measurement method, Lakeland measures impairment based on the fair value of the collateral when it is determined that foreclosure is probable. Most of Lakeland’s impaired loans are collateral-dependent. Shortfalls in collateral or cash flows are charged-off or specifically reserved for in the period the short-fall is identified. Charge-offs are recommended by the Chief Credit Officer and approved by the Company's Board of Directors. Lakeland groups impaired commercial loans under $500,000 into homogeneous pools and collectively evaluates them. Interest received on impaired loans may be recorded as interest income. However, if management is not reasonably certain that an impaired loan will be repaid in full, or if a specific time frame to resolve full collection cannot yet be reasonably determined, all payments received are recorded as reductions of principal. Purchased Credit-Impaired (“PCI”) loans are loans acquired through acquisition or purchased at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses). The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the covered loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of the loans. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans and results in an increase in yield on a prospective basis. Subsequent to acquisition date, further credit deterioration of a PCI loan will result in a valuation allowance recognized in the allowance for loan losses. Loans are classified as troubled debt restructured loans ("TDRs") in cases where borrowers experience financial difficulties and Lakeland makes certain concessionary modifications to contractual terms. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, an extended moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. Nonetheless, restructured loans are classified as impaired loans. If a loan has been restructured, it will continue to be classified as a TDR until it is fully repaid or until it meets all of the following criteria: 1) the borrower is no longer experiencing financial difficulties, 2) the rate is not less than the rate provided for similar credit risk, 3) other terms are no less favorable than similar new debt and 4) no concessions were granted. The allowance for loan losses is the estimated amount considered necessary to cover probable and reasonably estimable incurred losses inherent in the loan portfolio at the balance sheet date. In determining the allowance, we make significant estimates and judgments, and, therefore, have identified the allowance as a critical accounting policy. The allowance is established through a provision for loan losses charged against income. Loan principal considered to be uncollectible by management is charged against the allowance. The allowance for loan losses has been determined in accordance with U.S. GAAP. We are responsible for the timely and periodic determination of the amount of the allowance required. We believe that our allowance is adequate to cover identifiable losses, as well as estimated losses inherent in our portfolio for which certain losses are probable but not specifically identifiable. The determination of the adequacy of the allowance for loan losses and the periodic provisioning for estimated losses included in the consolidated financial statements is the responsibility of management and the Board of Directors. Management performs a formal quarterly evaluation of the allowance for loan losses. This quarterly process is performed by the credit administration department and approved by the Chief Credit Officer. All supporting documentation with regard to the evaluation process is maintained by the credit administration department. Each quarter, the evaluation along with the supporting documentation is reviewed by the finance department before approval by the Chief Credit Officer. The allowance evaluation is then presented to an Allowance for Loan Losses committee, which gives final approval to the allowance evaluation before being presented to the Board of Directors for their approval. The methodology employed for assessing the adequacy of the allowance consists of the following criteria: • The establishment of specific reserve amounts for impaired loans, including PCI loans. • The establishment of reserves for pools of homogeneous loans not subject to specific review, including impaired loans under $500,000, equipment finance loans, 1 - 4 family residential mortgages, and consumer loans. The establishment of reserve amounts for pools of homogeneous loans is based upon the determination of historical loss rates, which are adjusted to reflect current conditions through the use of qualitative factors. The qualitative factors considered by the Company includes an evaluation of the results of the Company’s independent loan review function, the Company's reporting capabilities, the adequacy and expertise of Lakeland’s lending staff, underwriting policies, loss histories, trends in the portfolio, delinquency trends, economic and business conditions and capitalization rates. Since many of Lakeland’s loans depend on the sufficiency of collateral as a secondary source of repayment, any adverse trends in the real estate market could affect the underlying values available to protect Lakeland from losses. Additionally, management determines the loss emergence periods for each loan segment, which are used to define loss migration periods and establish appropriate ranges for qualitative adjustments for each loan segment. The loss emergence period is the estimated time from the date of a loss event (such as a personal bankruptcy) to the actual recognition of the loss (typically via the first partial or full loan charge-off), and is determined based upon a study of our past loss experience by loan segment. All of the factors considered in the analysis of the adequacy of the allowance for loan losses may be subject to change. To the extent actual outcomes differ from management estimates, additional provisions for loan losses may be required that would adversely impact earnings in future periods. A loan that management designates as impaired is reviewed for charge-off when it is placed on non-accrual status with a resulting charge-off if the loan is not secured by collateral having sufficient liquidation value to repay the loan if the loan is collateral dependent or charged off if deemed uncollectible. For a loan that is not collateral dependent, a reserve may be established for any shortfall in expected cash flows. Charge-offs are recommended by the Chief Credit Officer and approved by the Board of Directors. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. Gains and losses on sales of loans are specifically identified and accounted for in accordance with U.S. GAAP which requires that an entity engaged in mortgage banking activities classify the retained mortgage-backed security or other interest, which resulted from the securitization of a mortgage loan held for sale, based upon its ability and intent to sell or hold these investments. Premises and Equipment, Net Premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation expense is computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the terms of the related leases. Other Real Estate Owned and Other Repossessed Assets Other real estate owned ("OREO") and other repossessed assets, representing property acquired through foreclosure (or deed-in-lieu-of-foreclosure), are carried at fair value less estimated disposal costs of the acquired property. Costs relating to holding the assets are charged to expense. An allowance for OREO or other repossessed assets is established, through charges to expense, to maintain properties at fair value less estimated costs to sell. Operating results of OREO and other repossessed assets, including rental income and operating expenses, are included in other expenses. Mortgage Servicing Lakeland performs various servicing functions on loans owned by others. A fee, usually based on a percentage of the outstanding principal balance of the loan, is received for these services. At December 31, 2019 and 2018 , Lakeland was servicing approximately $18.6 million and $19.9 million , respectively, of loans for others. Lakeland originates certain mortgages under a definitive plan to sell those loans and service the loans owned by the investor. Upon the transfer of the mortgage loans in a sale, Lakeland records the servicing assets retained. Lakeland records mortgage servicing rights and the loans based on relative fair values at the date of origination and evaluates the mortgage servicing rights for impairment at each reporting period. Lakeland also originates loans that it sells to other banks and investors and does not retain the servicing rights. Mortgage Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. As of December 31, 2019 and 2018 , Lakeland had originated mortgage servicing rights of $43,000 and $68,000 , respectively. Under the amortization measurement method, Lakeland subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement as commissions and fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, put presumptively beyond the reach of the transferor and its creditors even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Derivatives Lakeland enters into interest rate swaps (“swaps”) with loan customers to provide a facility to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in offsetting terms to swaps that Lakeland enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities. Lakeland’s swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in swap income. The credit risk associated with derivatives executed with customers is similar as that involved in extending loans and is subject to normal credit policies. Collateral is obtained based on management’s assessment of the customer. The positions of customer derivatives are recorded at fair value and changes in value are included in swap income on the consolidated statement of income. Cash flow hedges are used primarily to minimize the variability in cash flows of assets or liabilities, or forecasted transactions caused by interest rate fluctuations. Changes in the fair value of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income and are reclassified into the line item in the income statement in which the hedged item is recorded in the same period the hedged item affects earnings. Hedge ineffectiveness and gains and losses on the component of a derivative excluded in assessing hedge effectiveness are recorded in the same income statement line item. Further discussion of Lakeland’s financial derivatives is set forth in Note 19 to the Consolidated Financial Statements. Earnings Per Share Earnings per share is calculated on the basis of the weighted average number of common shares outstanding during the year. Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Employee Benefit Plans The Company has certain employee benefit plans covering substantially all employees. The Company accrues such costs as incurred. We recognize the overfunded or underfunded status of pension and postretirement benefit plans in accordance with U.S. GAAP. Actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations are recognized as a component of Accumulated Other Comprehensive Income, net of tax effects, until they are amortized as a component of net periodic benefit cost. Comprehensive Income (Loss) The Company reports comprehensive income (loss) in addition to net income from operations. Other comprehensive income (loss) includes items recorded directly in equity such as unrealized gains or losses on securities available for sale as well as unrealized gains (losses) recorded on derivatives and benefit plans. Goodwill and Other Identifiable Intangible Assets Intangible assets resulting from acquisitions under the purchase method of accounting consist of goodwill and other intangible assets. Goodwill is not amortized and is subject to an annual assessment for impairment. The goodwill impairment analysis is generally a two-step test. However, under current accounting guidance, first we may assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under current accounting guidance, we are not required to calculate the fair value of a reporting unit if, based on a qualitative assessment, we determine that it was more likely than not that the unit’s fair value was not less than its carrying amount. For the year ended December 31, 2019 , we elected to perform step one of the two-step goodwill impairment test for our reporting unit. Goodwill is allocated to Lakeland's reporting unit at the date goodwill is actually recorded. If the carrying value of a reporting unit exceeds its estimated fair value, a second step in the analysis is performed to determine the amount of impairment, if any. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying value of a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded equal to the excess amount in the current period earnings. As of December 31, 2019 , the carrying value of goodwill totaled $156.3 million . The Company performed its annual goodwill impairment test, as of November 30, 2019 , and determined that the fair value of the Company’s single reporting unit to be in excess of its carrying value. The Company will test goodwill for impairment between annual test dates if an event occurs or circumstances change that would indicate the fair value of the reporting unit is below its carrying amount. No events have occurred and no circumstances have changed since the annual impairment test date that would indicate the fair value of the reporting unit is below its carrying amount. Bank Owned Life Insurance Lakeland invests in bank owned life insurance (“BOLI”). BOLI involves the purchasing of life insurance by Lakeland on a chosen group of employees. Lakeland is the owner and beneficiary of the policies. At December 31, 2019 and 2018 , Lakeland had $112.4 million and $110.1 million , respectively, in BOLI. Income earned on BOLI was $2.7 million , $3.3 million and $2.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. BOLI is accounted for using the cash surrender value method and is recorded at its net realizable value. Income Taxes The Company accounts for income taxes under the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities. The principal types of differences between assets and liabilities for financial statement and tax return purposes are allowance for loan losses, core deposit intangibles, deferred loan fees and deferred compensation. Variable Interest Entities Management has determined that Lakeland Bancorp Capital Trust II and Lakeland Bancorp Capital Trust IV (collectively, “the Trusts”) qualify as variable interest entities. The Trusts issued mandatorily redeemable preferred stock to investors and loaned the proceeds to the Company. The Trusts hold, as their sole asset, subordinated debentures issued by the Company. The Company is not considered the primary beneficiary of the Trusts, therefore the Trusts are not consolidated in the Company’s financial statements. The Company’s maximum exposure to the Trusts is $30.0 million at December 31, 2019 , which is the Company’s liability to the Trusts and includes the Company’s investment in the Trusts. The Federal Reserve has issued guidance on the regulatory capital treatment for the trust preferred securities issued by the Trusts. The rule retains the current maximum percentage of total capital permitted for trust preferred securities at 25% , but enacts other changes to the rules governing trust preferred securities that affect their use as part of the collection of entities known as “restricted core capital elements.” The rule allows bank holding companies to continue to count trust preferred securities as Tier 1 Capital. The Company’s capital ratios continue to be categorized as “well-capitalized” under the regulatory framework for prompt corrective action. Under the Collins Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, any new issuance of trust preferred securities by the Company would not be eligible as regulatory capital. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS On January 4, 2019, the Company completed its acquisition of Highlands Bancorp, Inc. ("Highlands"), a bank holding company headquartered in Vernon, New Jersey. Highlands was the parent of Highlands State Bank, which operated four branches in Sussex, Passaic and Morris Counties in New Jersey. This acquisition enabled the Company to broaden its presence in those counties. Effective as of the close of business on January 4, 2019 , Highlands merged into the Company and Highlands State Bank merged into Lakeland. Pursuant to the merger agreement, the shareholders of Highlands received for each outstanding share of Highlands common stock that they owned at the effective time of the merger, 1.015 shares of Lakeland Bancorp, Inc. common stock. The Company issued 2,837,524 shares of its common stock in the merger. Outstanding Highlands options were paid out in cash at the difference between $14.71 and an average strike price of $8.09 for a total cash payment of $797,000 . The acquisition was accounted for under the acquisition method of accounting and accordingly, the assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values as of the acquisition date. Highlands' assets were recorded at their preliminary estimated fair values as of January 4, 2019 and Highlands' results of operations are included in the Company's Consolidated Statements of Income from that date forward. The assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values based on management's best estimates using information available at the date of the acquisition, including the use of third-party valuation specialists. During the second quarter of 2019, the Company revised the estimated fair value of the acquired assets as of the acquisition date as the result of additional information obtained. The adjustment related to credit-impaired loans acquired in the acquisition that were recorded at fair value and subsequently accounted for in accordance with Accounting Standards Codification ("ASC") Subtopic 310-30 and resulted in a $1.7 million increase in goodwill. As a result of new information obtained during the third quarter of 2019, about facts and circumstances that existed as of the acquisition date, the Company revised the estimated fair value on two Highlands branches acquired. The adjustment resulted in an increase in goodwill of $447,000 . The following table summarizes the estimated fair value of the acquired assets and liabilities assumed at the date of acquisition for Highlands. (in thousands) Assets Acquired Cash and cash equivalents $ 13,454 Investment securities, available for sale 21,234 Investment securities, held to maturity 1,500 Federal Home Loan Bank stock 1,767 Loans held for sale 1,113 Loans 425,005 Premises and equipment 2,613 Goodwill 19,844 Identifiable intangible assets 3,728 Accrued interest receivable and other assets 6,244 Total assets acquired 496,502 Liabilities assumed Deposits (409,638 ) Other borrowings (27,800 ) Subordinated debt (13,157 ) Other liabilities (2,490 ) Total liabilities assumed (453,085 ) Net assets acquired $ 43,417 Loans acquired in the Highlands acquisition were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310. There was no carryover related allowance for loan losses. The fair values of loans acquired from Highlands were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses and the rate of prepayments. Projected cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. The following is a summary of the credit impaired loans acquired in the Highlands acquisition as of the closing date. (in thousands) Contractually required principal and interest at acquisition $ 22,363 Contractual cash flows not expected to be collected (non-accretable difference) 7,129 Expected cash flows at acquisition 15,234 Interest component of expected cash flows (accretable difference) 1,431 Fair value of acquired loans $ 13,803 The core deposit intangible totaled $3.7 million and is being amortized over its estimated useful life of approximately ten years using an accelerated method. Goodwill totaled $19.8 million and will be evaluated annually for impairment. The goodwill is not deductible for tax purposes. The fair values of deposit liabilities with no stated maturities such as checking, money market and savings accounts, were assumed to equal the carrying amounts since these deposits are payable on demand. The fair values of certificates of deposits and IRAs represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit. Direct costs related to the Highlands acquisition were expensed as incurred. During the years ended December 31, 2019 and 2018 , the Company incurred $3.2 million and $464,000 , respectively, of merger and acquisition integration-related expenses, which have been separately stated in the Company’s Consolidated Statements of Income. There were no merger or acquisition integration-related expenses in 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company uses the two class method to compute earnings per common share. Participating securities include non-vested restricted stock and non-vested restricted stock units. The following tables present the computation of basic and diluted earnings per share for the periods presented. Year Ended December 31, 2019 Income (Numerator) Shares (Denominator) Per Share Amount (in thousands, except per share amounts) Basic earnings per share Net income available to common shareholders $ 70,672 50,477 $ 1.40 Less: earnings allocated to participating securities (596 ) — (0.01 ) Net income available to common shareholders 70,076 50,477 1.39 Effect of dilutive securities Stock options and restricted stock — 165 (0.01 ) Diluted earnings per share Net income available to common shareholders plus assumed conversions $ 70,076 50,642 $ 1.38 Year Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per Share Amount (in thousands, except per share amounts) Basic earnings per share Net income available to common shareholders $ 63,401 47,578 $ 1.33 Less: earnings allocated to participating securities (582 ) — (0.01 ) Net income available to common shareholders 62,819 47,578 1.32 Effect of dilutive securities Stock options and restricted stock — 188 — Diluted earnings per share Net income available to common shareholders plus assumed conversions $ 62,819 47,766 $ 1.32 Year Ended December 31, 2017 Income (Numerator) Shares (Denominator) Per Share Amount (in thousands, except per share amounts) Basic earnings per share Net income available to common shareholders $ 52,580 47,438 $ 1.11 Less: earnings allocated to participating securities (480 ) — (0.01 ) Net income available to common shareholders 52,100 47,438 1.10 Effect of dilutive securities Stock options and restricted stock — 236 (0.01 ) Diluted earnings per share Net income available to common shareholders plus assumed conversions $ 52,100 47,674 $ 1.09 There were no antidilutive options to purchase common stock to be excluded from the above computations. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses and the fair value of the Company’s available for sale and held to maturity investment securities are as follows: December 31, 2019 December 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AVAILABLE FOR SALE U.S. Treasury and U.S. government agencies $ 135,361 $ 722 $ (436 ) $ 135,647 $ 143,495 $ — $ (2,568 ) $ 140,927 Mortgage-backed securities, residential 500,245 3,185 (1,551 ) 501,879 434,208 779 (8,843 ) 426,144 Mortgage-backed securities, multifamily 48,675 633 (123 ) 49,185 21,087 67 (204 ) 20,950 Obligations of states and political subdivisions 58,979 1,077 (35 ) 60,021 45,951 140 (586 ) 45,505 Debt securities 9,000 168 — 9,168 5,000 92 — 5,092 Total $ 752,260 $ 5,785 $ (2,145 ) $ 755,900 $ 649,741 $ 1,078 $ (12,201 ) $ 638,618 December 31, 2019 December 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value HELD TO MATURITY U.S. government agencies $ 31,335 $ 182 $ (8 ) $ 31,509 $ 33,025 $ — $ (677 ) $ 32,348 Mortgage-backed securities, residential 76,229 734 (176 ) 76,787 75,859 169 (1,838 ) 74,190 Mortgage-backed securities, multifamily 1,750 4 (2 ) 1,752 1,853 — (35 ) 1,818 Obligations of states and political subdivisions 12,161 195 — 12,356 37,909 113 (328 ) 37,694 Debt securities 2,500 — — 2,500 5,000 — (118 ) 4,882 Total $ 123,975 $ 1,115 $ (186 ) $ 124,904 $ 153,646 $ 282 $ (2,996 ) $ 150,932 During the fourth quarter of 2019, the Company early adopted ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments, and reclassified securities with a book value of $20.8 million and an unrealized gain of $291,000 from held to maturity to securities available for sale. ASU 2019-04 makes clarifications and corrections to the application of the guidance contained in each of the amended topics. The following table lists contractual maturities of investment securities classified as available for sale and held to maturity at December 31, 2019 . Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 29,733 $ 29,786 $ 7,321 $ 7,328 Due after one year through five years 105,745 106,611 31,102 31,425 Due after five years through ten years 52,534 53,385 6,815 6,852 Due after ten years 15,328 15,054 758 760 203,340 204,836 45,996 46,365 Mortgage-backed securities 548,920 551,064 77,979 78,539 Total securities $ 752,260 $ 755,900 $ 123,975 $ 124,904 The following table shows proceeds from sales of securities, gross gains and gross losses on sales and calls of securities for the periods indicated: Years Ended December 31, (in thousands) 2019 2018 2017 Sale proceeds $ — $ — $ 4,500 Gross gains — — 2,539 Gross losses — — (15 ) Gains or losses on sales of securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method. Securities with a carrying value of approximately $581.1 million and $476.3 million at December 31, 2019 and 2018 , respectively, were pledged to secure public deposits and for other purposes required by applicable laws and regulations. The following tables indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018 : December 31, 2019 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses AVAILABLE FOR SALE U.S. Treasury and U.S. government agencies $ 11,625 $ 39 $ 41,617 $ 397 11 $ 53,242 $ 436 Mortgage-backed securities, residential 125,782 561 99,489 990 86 225,271 1,551 Mortgage-backed securities, multifamily 7,651 118 4,878 5 3 12,529 123 Obligations of states and political subdivisions 373 2 6,559 33 5 6,932 35 Total $ 145,431 $ 720 $ 152,543 $ 1,425 105 $ 297,974 $ 2,145 HELD TO MATURITY U.S. government agencies $ 3,195 $ 6 $ 5,102 $ 2 2 $ 8,297 $ 8 Mortgage-backed securities, residential 12,462 46 10,592 130 16 23,054 176 Mortgage-backed securities, multifamily — — 998 2 1 998 2 Total $ 15,657 $ 52 $ 16,692 $ 134 19 $ 32,349 $ 186 December 31, 2018 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Number of securities Fair Value Unrealized Losses AVAILABLE FOR SALE U.S. Treasury and U.S. government agencies $ 20,588 $ 216 $ 120,338 $ 2,352 27 $ 140,926 $ 2,568 Mortgage-backed securities, residential 10,119 58 316,851 8,785 139 326,970 8,843 Mortgage-backed securities, multifamily 1,977 2 12,911 202 4 14,888 204 Obligations of states and political subdivisions 1,289 2 26,522 584 50 27,811 586 Total $ 33,973 $ 278 $ 476,622 $ 11,923 220 $ 510,595 $ 12,201 HELD TO MATURITY U.S. government agencies $ — $ — $ 32,348 $ 677 6 $ 32,348 $ 677 Mortgage-backed securities, residential 8,325 59 53,761 1,779 36 62,086 1,838 Mortgage-backed securities, multifamily — — 1,818 35 2 1,818 35 Obligations of states and political subdivisions 1,764 8 15,580 320 27 17,344 328 Debt securities 3,882 118 — — 1 3,882 118 Total $ 13,971 $ 185 $ 103,507 $ 2,811 72 $ 117,478 $ 2,996 Management has evaluated the securities in the above table and has concluded that none of the securities with unrealized losses has impairments that are other-than-temporary. Fair value below cost is solely due to interest rate movements and is deemed temporary. Investment securities, including the mortgage-backed securities and corporate securities, are evaluated on a periodic basis to determine if factors are identified that would require further analysis. In evaluating the Company’s securities, management considers the following items: • The Company’s ability and intent to hold the securities, including an evaluation of the need to sell the security to meet certain liquidity measures, or whether the Company has sufficient levels of cash to hold the identified security in order to recover the entire amortized cost of the security; • The financial condition of the underlying issuer; • The credit ratings of the underlying issuer and if any changes in the credit rating have occurred; • The length of time the security’s fair value has been less than amortized cost; and • Adverse conditions related to the security or its issuer if the issuer has failed to make scheduled payments or other factors. If the above factors indicate an additional analysis is required, management will perform a discounted cash flow analysis evaluating the security. Equity securities at fair value The Company has an equity securities portfolio, which consists of investments in other financial institutions for market appreciation purposes and investments in Community Reinvestment funds. The market value of these investments was $16.5 million and $15.9 million as of December 31, 2019 and 2018 , respectively. Upon implementation of Accounting Standards Update 2016-01 - Financial Instruments ("ASU 2016-01"), the Company made a cumulative adjustment of $2.0 million from other comprehensive income to retained earnings as of January 1, 2018. For the year ended December 31, 2019 , the Company recorded proceeds from sales of equity securities of $1.3 million . In the twelve months ended December 31, 2019 , the Company recorded $496,000 in market value gains on equity securities in noninterest income as compared to market value losses on equity securities of $583,000 during 2018. As of December 31, 2019 , the equity investments in other financial institutions and Community Reinvestment funds had a market value of $1.7 million and $14.8 million , respectively. The Community Reinvestment funds include $3.5 million that are primarily invested in community development loans that are guaranteed by the Small Business Administration ("SBA"). Because the funds are primarily guaranteed by the federal government there are minimal changes in market value between accounting periods. These funds can be redeemed within 60 days notice at the net asset value less unpaid management fees with the approval of the fund manager. As of December 31, 2019 , the net amortized cost equaled the market value of the investment. There are no unfunded commitments related to these investments. The Community Reinvestment funds include $11.3 million as of December 31, 2019 , that are primarily invested in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to this investment. |
Loans and Other Real Estate
Loans and Other Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Other Real Estate | LOANS AND OTHER REAL ESTATE The following sets forth the composition of Lakeland’s loan portfolio: December 31, (in thousands) 2019 2018 Commercial, secured by real estate $ 3,589,593 $ 3,057,779 Commercial, industrial and other 431,934 336,735 Equipment finance 111,076 87,925 Real estate - residential mortgage 335,191 329,854 Real estate - construction 335,169 319,545 Home equity and consumer 337,977 328,609 Total loans 5,140,940 4,460,447 Less deferred fees (3,117 ) (3,714 ) Loans, net of deferred fees $ 5,137,823 $ 4,456,733 At December 31, 2019 and December 31, 2018 , Lakeland had $1.3 billion and $1.2 billion in loans pledged for potential borrowings at the Federal Home Loan Bank of New York (“FHLB”). As of December 31, 2019 and 2018 , home equity and consumer loans included overdraft deposit balances of $789,000 and $452,000 , respectively. Purchased Credit Impaired Loans The following sets forth the carrying value of the purchased credit impaired loans ("PCI") loans acquired in mergers: December 31, (in thousands) 2019 2018 Acquisition Highlands $ 8,194 $ — Pascack Community Bank 113 157 Harmony Bank 441 495 Total $ 8,748 $ 652 The following table presents changes in the accretable yield for PCI loans: Years Ended December 31, (in thousands) 2019 2018 Balance, beginning of period $ 81 $ 129 Acquisitions 1,431 — Accretion (1,236 ) (182 ) Net reclassification non-accretable difference 87 134 Balance, end of period $ 363 $ 81 Portfolio Segments Lakeland currently manages its credit products and the respective exposure to credit losses (credit risk) by the following specific portfolio segments which are levels at which Lakeland develops and documents its systematic methodology to determine the allowance for loan losses attributable to each respective portfolio segment. These segments are: • Commercial, secured by real estate - consists of commercial mortgage loans secured by owner occupied properties and non-owner occupied properties. The loans secured by owner occupied properties involve a variety of property types to conduct the borrower’s operations. The primary source of repayment for this type of loan is the cash flow from the business and is based upon the borrower’s financial health and the ability of the borrower and the business to repay. The loans secured by non-owner occupied properties involve investment properties for warehouse, retail, office space, etc., with a history of occupancy and cash flow. This commercial real estate category contains mortgage loans to the developers and owners of commercial real estate where the borrower intends to operate or sell the property at a profit and use the income stream or proceeds from the sale to repay the loan. • Commercial, industrial and other - are loans made to provide funds for equipment and general corporate needs. Repayment of a loan primarily uses the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. • Equipment finance - includes a small portfolio of equipment leases, which consists of leases primarily for essential equipment used by small to medium sized businesses. • Real estate - residential mortgage - contains permanent mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios, and collateral values. Loans may be either conforming or non-conforming. • Real estate - construction - construction loans, as defined, are intended to finance the construction of commercial properties and include loans for the acquisition and development of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve to pay interest charges on the outstanding balance of the loan. • Home equity and consumer - includes primarily home equity loans and lines, installment loans, personal lines of credit and automobile loans. The home equity category consists mainly of loans and revolving lines of credit to consumers which are secured by residential real estate. These loans are typically secured with second mortgages on the homes, although many are secured with first mortgages. Other consumer loans include installment loans used by customers to purchase automobiles, boats and recreational vehicles. Non-accrual and Past Due Loans The following schedule sets forth certain information regarding Lakeland’s non-accrual loans, its other real estate owned and other repossessed assets, and accruing troubled debt restructurings (“TDRs”): At December 31, (in thousands) 2019 2018 Commercial, secured by real estate $ 12,314 $ 7,192 Commercial, industrial and other 1,539 1,019 Equipment finance 284 501 Real estate - residential mortgage 3,428 1,986 Real estate - construction 967 — Home equity and consumer 2,606 1,432 Total non-accrual loans 21,138 12,130 Other real estate and other repossessed assets 563 830 Total non-performing assets $ 21,701 $ 12,960 Troubled debt restructurings, still accruing $ 5,650 $ 9,293 Non-accrual loans included $1.6 million and $3.6 million of TDRs for the years ended December 31, 2019 and 2018 , respectively. As of December 31, 2019 and 2018 , the Company had $2.0 million and $1.5 million , respectively, in residential mortgages and consumer home equity loans included in total non-accrual loans that were in the process of foreclosure. An age analysis of past due loans, excluding PCI loans which are accounted for on a pool basis, segregated by class of loans as of December 31, 2019 and 2018 , is as follows: December 31, 2019 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Total Past Due Current Total Loans Recorded Investment Greater than 89 Days and Still Accruing (in thousands) Commercial, secured by real estate $ 3,578 $ 1,200 $ 9,702 $ 14,480 $ 3,569,008 $ 3,583,488 $ — Commercial, industrial and other 353 71 1,064 1,488 429,502 430,990 — Equipment finance 166 80 284 530 110,546 111,076 — Real estate - residential mortgage 1,138 251 2,075 3,464 331,337 334,801 — Real estate - construction — — 967 967 333,418 334,385 — Home equity and consumer 1,573 287 1,533 3,393 334,059 337,452 — $ 6,808 $ 1,889 $ 15,625 $ 24,322 $ 5,107,870 $ 5,132,192 $ — December 31, 2018 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Total Past Due Current Total Loans Recorded Investment Greater than 89 Days and Still Accruing (in thousands) Commercial, secured by real estate $ 1,477 $ 639 $ 2,080 $ 4,196 $ 3,052,931 $ 3,057,127 $ — Commercial, industrial and other 173 243 750 1,166 335,569 336,735 — Equipment finance 533 13 501 1,047 86,878 87,925 — Real estate - residential mortgage 743 111 1,776 2,630 327,224 329,854 — Real estate - construction — — — — 319,545 319,545 — Home equity and consumer 1,917 216 850 2,983 325,626 328,609 — $ 4,843 $ 1,222 $ 5,957 $ 12,022 $ 4,447,773 $ 4,459,795 $ — Impaired Loans Lakeland’s policy regarding impaired loans is discussed in Note 1 – Summary of Accounting Policies – Loans and Allowance for Loan Losses. The Company defines impaired loans as all non-accrual loans with recorded investments of $500,000 or greater. Impaired loans also includes all loans modified in troubled debt restructurings, but excludes PCI loans. The following tables represent the Company's impaired loans at December 31, 2019 , 2018 and 2017 . December 31, 2019 Recorded Investment in Impaired Loans Contractual Unpaid Principal Balance Related Allowance Interest Income Recognized Average Investment in Impaired Loans (in thousands) Loans without related allowance: Commercial, secured by real estate $ 12,478 $ 12,630 $ — $ 164 $ 10,386 Commercial, industrial and other 1,391 1,381 — 16 1,334 Equipment finance — — — — — Real estate - residential mortgage 803 815 — — 233 Real estate - construction 1,663 1,661 — 2 82 Home equity and consumer — — — — — Loans with related allowance: Commercial, secured by real estate 3,470 3,706 228 190 4,554 Commercial, industrial and other 113 113 5 6 113 Equipment finance 23 23 10 — 21 Real estate - residential mortgage 1,512 1,682 104 19 926 Real estate - construction — — — — — Home equity and consumer 671 765 5 29 693 Total: Commercial, secured by real estate $ 15,948 $ 16,336 $ 228 $ 354 $ 14,940 Commercial, industrial and other 1,504 1,494 5 22 1,447 Equipment finance 23 23 10 — 21 Real estate - residential mortgage 2,315 2,497 104 19 1,159 Real estate - construction 1,663 1,661 — 2 82 Home equity and consumer 671 765 5 29 693 $ 22,124 $ 22,776 $ 352 $ 426 $ 18,342 December 31, 2018 Recorded Investment in Impaired Loans Contractual Unpaid Principal Balance Related Allowance Interest Income Recognized Average Investment in Impaired Loans (in thousands) Loans without related allowance: Commercial, secured by real estate $ 9,284 $ 9,829 $ — $ 188 $ 7,369 Commercial, industrial and other 1,151 1,449 — 19 1,834 Equipment finance 301 597 — — 376 Real estate - residential mortgage — — — 4 242 Real estate - construction — — — — 726 Home equity and consumer — — — — — Loans with related allowance: Commercial, secured by real estate 7,270 7,597 307 317 7,594 Commercial, industrial and other 209 209 7 12 209 Equipment finance 30 30 14 — 19 Real estate - residential mortgage 730 884 4 20 745 Real estate - construction — — — — — Home equity and consumer 727 765 6 32 898 Total: Commercial, secured by real estate $ 16,554 $ 17,426 $ 307 $ 505 $ 14,963 Commercial, industrial and other 1,360 1,658 7 31 2,043 Equipment finance 331 627 14 — 395 Real estate - residential mortgage 730 884 4 24 987 Real estate - construction — — — — 726 Home equity and consumer 727 765 6 32 898 $ 19,702 $ 21,360 $ 338 $ 592 $ 20,012 December 31, 2017 Recorded Investment in Impaired Loans Contractual Unpaid Principal Balance Related Allowance Interest Income Recognized Average Investment in Impaired Loans (in thousands) Loans without related allowance: Commercial, secured by real estate $ 12,155 $ 12,497 $ — $ 366 $ 12,774 Commercial, industrial and other 618 618 — 25 618 Equipment finance — — — — — Real estate - residential mortgage 963 980 — 15 996 Real estate - construction 1,471 1,471 — — 1,471 Home equity and consumer — — — — 6 Loans with related allowance: Commercial, secured by real estate 5,381 5,721 454 206 5,029 Commercial, industrial and other 164 164 9 14 283 Equipment finance 65 65 30 — 29 Real estate - residential mortgage 781 919 4 27 940 Real estate - construction — — — — — Home equity and consumer 993 1,026 8 52 1,090 Total: Commercial, secured by real estate $ 17,536 $ 18,218 $ 454 $ 572 $ 17,803 Commercial, industrial and other 782 782 9 39 901 Equipment finance 65 65 30 — 29 Real estate - residential mortgage 1,744 1,899 4 42 1,936 Real estate - construction 1,471 1,471 — — 1,471 Home equity and consumer 993 1,026 8 52 1,096 $ 22,591 $ 23,461 $ 505 $ 705 $ 23,236 Interest which would have been accrued on impaired loans during 2019 , 2018 and 2017 was $1.0 million , $1.1 million and $1.5 million , respectively. Credit Quality Indicators The class of loans are determined by internal risk rating. Management closely and continually monitors the quality of its loans and assesses the quantitative and qualitative risks arising from the credit quality of its loans. It is the policy of Lakeland to require that a Credit Risk Rating be assigned to all commercial loans and loan commitments. The Credit Risk Rating System has been developed by management to provide a methodology to be used by Loan Officers, Department Heads and Senior Management in identifying various levels of credit risk that exist within Lakeland’s loan portfolios. The risk rating system assists Senior Management in evaluating Lakeland’s loan portfolio, analyzing trends and determining the proper level of required reserves to be recommended to the Company's Board of Directors. In assigning risk ratings, management considers, among other things, a borrower’s debt service coverage, earnings strength, loan to value ratios, industry conditions and economic conditions. Management categorizes loans and commitments into a one (1) to nine (9) numerical structure with rating 1 being the strongest rating and rating 9 being the weakest. Ratings 1 through 5W are considered “Pass” ratings. “Pass” ratings on loans are given to loans that management considers to be of acceptable or better quality. A rating of 5W, or “Watch” is a loan that requires more than the usual amount of monitoring due to declining earnings, strained cash flow, increasing leverage and/or weakening market. These borrowers generally have limited additional debt capacity and modest coverage and average or below average asset quality, margins and market share. Rating 6, “Other Assets Especially Mentioned” is used for loans exhibiting identifiable credit weakness which if not checked or corrected could weaken the loan quality or inadequately protect the bank’s credit position at some future date. Rating 7, “Substandard,” is used on loans that are inadequately protected by the current sound worth and paying capacity of the obligors or of the collateral pledged, if any. A substandard loan has a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. Rating 8, “Doubtful,” are loans that exhibit all of the weaknesses inherent in substandard loans, but have the added characteristics that the weaknesses make collection or liquidation in full improbable on the basis of existing facts. Rating 9, “Loss,” is a rating for loans or portions of loans that are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. The following table shows Lakeland’s commercial loan portfolio as of December 31, 2019 and 2018 , by the risk ratings discussed above: December 31, 2019 Commercial, Secured by Real Estate Commercial, Industrial and Other (in thousands) Real Estate - Construction Total Commercial Loans RISK RATING 1 $ — $ 898 $ — $ 898 2 — 17,988 — 17,988 3 74,072 39,112 — 113,184 4 965,825 107,376 17,941 1,091,142 5 2,332,863 215,975 307,824 2,856,662 5W - Watch 100,347 30,192 6,959 137,498 6 - Other assets especially mentioned 55,438 11,328 — 66,766 7 - Substandard 61,048 9,065 2,445 72,558 8 - Doubtful — — — — 9 - Loss — — — — Total $ 3,589,593 $ 431,934 $ 335,169 $ 4,356,696 December 31, 2018 Commercial, Secured by Real Estate Commercial, Industrial and Other Total Commercial Loans (in thousands) Real Estate - Construction RISK RATING 1 $ — $ 1,119 $ — $ 1,119 2 — 18,462 — 18,462 3 69,995 36,367 — 106,362 4 933,577 91,145 17,375 1,042,097 5 1,910,423 168,474 297,625 2,376,522 5W - Watch 61,626 7,798 3,493 72,917 6 - Other assets especially mentioned 38,844 2,033 — 40,877 7 - Substandard 43,314 11,337 1,052 55,703 8 - Doubtful — — — — 9 - Loss — — — — Total $ 3,057,779 $ 336,735 $ 319,545 $ 3,714,059 This table does not include residential mortgage loans, consumer loans, or equipment finance loans because they are evaluated on their payment status as pass or substandard, which is defined as non-accrual or past due 90 days or more. Allowance for Loan Losses The following table details activity in the allowance for loan losses by portfolio segment and the related recorded investment in loans for the years ended December 31, 2019 and 2018 : December 31, 2019 Commercial, Secured by Real Estate Commercial, Industrial and Other Equipment Finance Real Estate - Residential Mortgage Real Estate - Construction Home Equity and Consumer Total (in thousands) Beginning balance $ 27,881 $ 1,742 $ 987 $ 1,566 $ 3,015 $ 2,497 $ 37,688 Charge-offs (544 ) (645 ) (414 ) (50 ) — (283 ) (1,936 ) Recoveries 251 1,100 332 66 126 246 2,121 Provision 1,362 1,092 52 143 (469 ) (50 ) 2,130 Ending balance $ 28,950 $ 3,289 $ 957 $ 1,725 $ 2,672 $ 2,410 $ 40,003 Allowance for Loan Losses Ending balance: Individually evaluated for impairment $ 228 $ 5 $ 10 $ 104 $ — $ 5 $ 352 Ending balance: Collectively evaluated for impairment 28,722 3,284 947 1,621 2,672 2,405 39,651 Ending balance $ 28,950 $ 3,289 $ 957 $ 1,725 $ 2,672 $ 2,410 $ 40,003 Loans Ending balance: Individually evaluated for impairment $ 15,948 $ 1,504 $ 23 $ 2,315 $ 1,663 $ 671 $ 22,124 Ending balance: Collectively evaluated for impairment 3,567,540 429,486 111,053 332,486 332,722 336,781 5,110,068 Ending balance: Loans acquired with deteriorated credit quality 6,105 944 — 390 784 525 8,748 Ending balance (1) $ 3,589,593 $ 431,934 $ 111,076 $ 335,191 $ 335,169 $ 337,977 $ 5,140,940 (1) Excludes deferred fees December 31, 2018 Commercial, Secured by Real Estate Commercial, Industrial and Other Equipment Finance Real Estate - Residential Mortgage Real Estate - Construction Home Equity and Consumer Total (in thousands) Beginning balance $ 25,704 $ 2,313 $ 630 $ 1,557 $ 2,731 $ 2,520 $ 35,455 Charge-offs (421 ) (1,452 ) (507 ) (131 ) (248 ) (588 ) (3,347 ) Recoveries 468 317 23 10 17 332 1,167 Provision 2,130 564 841 130 515 233 4,413 Ending balance $ 27,881 $ 1,742 $ 987 $ 1,566 $ 3,015 $ 2,497 $ 37,688 Allowance for Loan Losses Ending balance: Individually evaluated for impairment $ 307 $ 7 $ 14 $ 4 $ — $ 6 $ 338 Ending balance: Collectively evaluated for impairment 27,574 1,735 973 1,562 3,015 2,491 37,350 Ending balance $ 27,881 $ 1,742 $ 987 $ 1,566 $ 3,015 $ 2,497 $ 37,688 Loans Ending balance: Individually evaluated for impairment $ 16,554 $ 1,360 $ 331 $ 730 $ — $ 727 $ 19,702 Ending balance: Collectively evaluated for impairment 3,040,573 335,375 87,594 329,124 319,545 327,882 4,440,093 Ending balance: Loans acquired with deteriorated credit quality 652 — — — — — 652 Ending balance (1) $ 3,057,779 $ 336,735 $ 87,925 $ 329,854 $ 319,545 $ 328,609 $ 4,460,447 (1) Excludes deferred fees Lakeland also maintains a reserve for unfunded lending commitments which is included in other liabilities. This reserve was $1.8 million and $2.3 million as of December 31, 2019 and December 31, 2018 , respectively. Lakeland analyzes the adequacy of the reserve for unfunded lending commitments in conjunction with its analysis of the adequacy of the allowance for loan losses. For more information on this analysis, see “Risk Elements” in Management’s Discussion and Analysis. Troubled Debt Restructurings Troubled Debt Restructurings ("TDRs") are those loans where significant concessions have been made to borrowers experiencing financial difficulties. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate lower than the current market rate of a new loan with similar risk, an extended moratorium of principal payments and/or an extension of the maturity date. Lakeland considers the potential losses on these loans as well as the remainder of its impaired loans when considering the adequacy of the allowance for loan losses. The following table summarizes loans that have been restructured during the periods presented: For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 (dollars in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Commercial, secured by real estate — $ — $ — 5 $ 3,348 $ 3,348 Commercial, industrial and other — — — 1 950 950 Equipment finance — — — 1 15 15 Real estate - construction 1 694 694 — — — Home equity and consumer 2 83 83 — — — 3 $ 777 $ 777 7 $ 4,313 $ 4,313 The following table presents loans modified as TDRs within the previous twelve months from December 31, 2019 and 2018 that have defaulted during the subsequent twelve months: For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 (dollars in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial, secured by real estate — $ — 1 $ 171 Home equity and consumer 2 83 — — 2 $ 83 1 $ 171 Related Party Loans Lakeland has entered into lending transactions in the ordinary course of business with directors, executive officers, principal stockholders and affiliates of such persons on similar terms, including interest rates and collateral, as those prevailing for comparable transactions with other borrowers not related to Lakeland. At December 31, 2019 and 2018 , loans to these related parties amounted to $55.4 million and $53.1 million , respectively. There were new loans of $21.4 million to related parties and repayments of $19.1 million from related parties in 2019 . Mortgages Held for Sale Residential mortgages originated by the bank and held for sale in the secondary market are carried at the lower of cost or fair market value. Fair value is generally determined by the value of purchase commitments on individual loans. Losses are recorded as a valuation allowance and charged to earnings. As of December 31, 2019 , Lakeland had $1.7 million in mortgages held for sale compared to $1.1 million as of December 31, 2018 . Equipment Finance Receivables Future minimum payments of equipment finance receivables at December 31, 2019 are expected as follows: (in thousands) 2020 $ 36,290 2021 30,448 2022 23,029 2023 14,767 2024 5,616 Thereafter 926 $ 111,076 Other Real Estate and Other Repossessed Assets At December 31, 2019 , Lakeland had other real estate of $563,000 , consisting of residential property acquired as a result of foreclosure proceedings or through a deed in lieu of foreclosure. Lakeland held no other repossessed assets at December 31, 2019 . At December 31, 2018 , Lakeland had other real estate of $830,000 and no other repossessed assets. The other real estate that Lakeland held at December 31, 2018 consisted of $702,000 in residential property acquired as a result of foreclosure proceedings or through a deed in lieu of foreclosure. For the years ended December 31, 2019 , 2018 and 2017 , Lakeland had writedowns of $153,000 , $70,000 and $98,000 , respectively, on other real estate and other repossessed assets which are included in other real estate and repossessed asset expense in the Consolidated Statement of Income. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | PREMISES AND EQUIPMENT Estimated December 31, Useful Lives 2019 2018 (in thousands) Land Indefinite $ 10,356 $ 10,471 Buildings and building improvements 10 to 50 years 42,481 47,006 Leasehold improvements 10 to 25 years 14,260 12,880 Furniture, fixtures and equipment 2 to 30 years 31,728 27,858 98,825 98,215 Less accumulated depreciation and amortization 51,217 49,040 $ 47,608 $ 49,175 Depreciation expense was $5.9 million , $5.3 million and $5.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS The following table sets forth the details of total deposits: (dollars in thousands) December 31, 2019 December 31, 2018 Noninterest-bearing demand $ 1,124,121 21.23 % $ 950,218 20.56 % Interest-bearing checking 1,797,504 33.96 % 1,711,507 37.04 % Money market 1,003,149 18.95 % 715,620 15.49 % Savings 498,201 9.41 % 486,287 10.52 % Certificates of deposit 870,804 16.45 % 757,038 16.39 % Total Deposits $ 5,293,779 100.00 % $ 4,620,670 100.00 % At December 31, 2019 , certificates of deposit totaling $63.8 million were obtained through brokers, while no certificates of deposit at December 31, 2018 were obtained through brokers. At December 31, 2019 , the schedule of maturities of certificates of deposit is as follows: (in thousands) 2020 $ 715,061 2021 103,285 2022 42,891 2023 8,215 2024 1,264 2025 88 $ 870,804 |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain premises and equipment under operating leases. Portions of certain properties are subleased for terms extending through 2024. In February 2016, FASB issued Update 2016-02, Topic 842, Leases, accounting guidance that requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company retained the services of a software provider to aid in its implementation. In the third quarter of 2018, the FASB issued updates which included targeted improvements to the leasing guidance that were intended to reduce costs and ease implementation of the leases standard. The improvements include an optional transition method to adopt the new leases standard where the entity could initially apply the new leases standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity's reporting for comparative periods presented in the financial statements in which it adopts the new leases standard, will continue to be in accordance with Accounting Standards Codification ("ASC") Topic 840, Leases. An entity that adopts this additional transition method must provide the required disclosures for all periods that continue to be in accordance with the current ASC 840. The lease update also includes a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for these components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance and both of the following conditions are met: 1) the timing and pattern of transfer of the nonlease component(s) and associated lease component are the same, and 2) the lease component, if accounted for separately, would be classified as an operating lease. Management used the optional transition method discussed above and also used the practical expedient to account for non-lease components with the associated lease component as a single component assuming the appropriate conditions were met. The FASB issued further clarification of the standard and addressed implementation and disclosure requirements. With the adoption of this update on January 1, 2019, the Company recorded an operating lease right-of-use asset of $18.7 million , a corresponding liability of $20.2 million and a cumulative adjustment to retained earnings of $125,000 . At December 31, 2019 , the Company had lease liabilities totaling $19.8 million and right-of-use assets totaling $18.3 million related to these leases. The calculated amount of the right-of-use asset and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum lease payments. The Company's lease agreements often include one or more options to renew at the Company's discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. The Company uses its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. For the year ended December 31, 2019 , the weighted average remaining lease term for operating leases was 10.32 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.51% . As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Lease costs were as follows: (in thousands) Year Ended December 31, 2019 Operating lease cost $ 3,293 Short-term lease cost — Variable lease cost 133 Sublease income (122 ) Net lease cost $ 3,304 Rent expense for years ended December 31, 2018 and 2017 , prior to the adoption of ASU 2016-02, was $3.0 million and $3.1 million , respectively. The table below presents other information on the Company's operating leases for the year ended December 31, 2019 : (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,654 Right-of-use asset obtained in exchange for new operating lease liabilities 1,748 There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the year ended December 31, 2019 . At December 31, 2019 , the Company had no leases that had not yet commenced. A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability at December 31, 2019 is as follows: (in thousands) Within one year $ 3,300 After one year but within two years 3,057 After two years but within three years 2,626 After three years but within four years 2,291 After four years but within five years 2,174 After 5 years 10,562 Total undiscounted cash flows 24,010 Discount on cash flows (4,196 ) Total lease liability $ 19,814 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Overnight and Short-Term Borrowings At December 31, 2019 , overnight and short-term borrowings from FHLB totaled $200.0 million , while at December 31, 2018 there were no overnight or short-term borrowings from FHLB. In addition, Lakeland had overnight and short-term borrowings from correspondent banks totaling $85.0 million and $192.1 million at December 31, 2019 and 2018 , respectively. At December 31, 2019 , Lakeland had overnight and short-term federal funds lines available to borrow up to $230.0 million from correspondent banks. Lakeland may also borrow from the discount window of the Federal Reserve Bank of New York based on the market value of collateral pledged. Lakeland had no borrowings with the Federal Reserve Bank of New York as of December 31, 2019 or 2018 . Other short-term borrowings at December 31, 2019 and 2018 consisted of short-term securities sold under agreements to repurchase totaling $43.7 million and $41.8 million , respectively. Securities underlying the agreements were under Lakeland’s control. At December 31, 2019 , the Company had $44.0 million in mortgage-backed securities pledged for its short-term securities sold under agreements to repurchase. FHLB Advances Advances from the Federal Home Loan Bank ("FHLB") totaled $165.8 million at December 31, 2019 , with a weighted average interest rate of 2.24% , with fixed maturity dates. At December 31, 2018 , advances from the FHLB totaled $181.1 million , with a weighted average interest rate of 2.10% , with fixed maturity dates. These advances were collateralized by first mortgage loans. The advances have prepayment penalties. In 2017, the Company repaid an aggregate of $34.0 million in advances from the FHLB and recorded $638,000 in long-term debt prepayment fees. The schedule of maturities of advances is as follows: (in thousands) 2020 $ 55,881 2021 44,972 2022 40,526 2023 24,437 $ 165,816 Long-term Securities Sold Under Agreements to Repurchase At both December 31, 2019 and 2018 , Lakeland had no long-term securities sold under agreements to repurchase. In the second quarter of 2018, the Company repaid all of its $20.0 million in matured long-term securities sold under agreements to repurchase. In the first quarter of 2017, the Company repaid an aggregate of $20.0 million in long-term securities sold under agreements to repurchase and recorded $2.2 million in long-term debt prepayment fees. Subordinated Debentures On January 4, 2019, the Company acquired subordinated notes from Highlands. Highlands issued $5.0 million of fixed rate notes in May 2014 . The notes bear interest at a rate of 8.00% per annum until maturity on May 16, 2024 . In October 2015 , Highlands issued $7.5 million of fixed rate notes bearing an interest rate of 6.94% until maturity on October 1, 2025 . On September 30, 2016 , the Company completed an offering of $75.0 million of fixed to floating rate subordinated notes due September 30, 2026 . The notes will bear interest at a rate of 5.125% per annum until September 30, 2021 and will then reset quarterly to the then current three-month LIBOR plus 397 basis points until maturity in September 30, 2026 or their earlier redemption. The debt is included in Tier 2 capital for the Company. Debt issuance costs totaled $1.5 million and are being amortized to maturity. Subordinated debt is presented net of issuance costs on the consolidated balance sheet. In May 2007 , the Company issued $20.6 million of junior subordinated debentures due August 31, 2037 to Lakeland Bancorp Capital Trust IV, a Delaware business trust. The distribution rate on these securities was 6.61% for 5 years and floats at LIBOR plus 152 basis points thereafter. The debentures are the sole asset of the Trust. The Trust issued 20,000 shares of trust preferred securities, $1,000 face value, for total proceeds of $20.0 million . The Company’s obligations under the debentures and related documents, taken together, constitute a full, irrevocable and unconditional guarantee on a subordinated basis by the Company of the Trust’s obligations under the preferred securities. The preferred securities are callable by the Company on or after August 1, 2012, or earlier if the deduction of related interest for federal income taxes is prohibited, treatment as Tier I capital is no longer permitted, or certain other contingencies arise. The preferred securities must be redeemed upon maturity of the debentures in 2037 . On August 3, 2015 , the Company acquired and extinguished $10.0 million of Lakeland Bancorp Capital Trust IV debentures and recorded a $1.8 million gain on the extinguishment of debt. In June 2003 , the Company issued $20.6 million of junior subordinated debentures due June 30, 2033 to Lakeland Bancorp Capital Trust II, a Delaware business trust. The distribution rate on these securities was 5.71% for 5 years and floats at LIBOR plus 310 basis points thereafter. The debentures are the sole asset of the Trust. The Trust issued 20,000 shares of trust preferred securities, $1,000 face value, for total proceeds of $20.0 million . The Company’s obligations under the debentures and related documents, taken together, constitute a full, irrevocable and unconditional guarantee on a subordinated basis by the Company of the Trust’s obligations under the preferred securities. The preferred securities are callable by the Company on or after June 30, 2008, or earlier if the deduction of related interest for federal income taxes is prohibited, treatment as Tier I capital is no longer permitted, or certain other contingencies arise. The preferred securities must be redeemed upon maturity of the debentures in 2033 . In June 2016 , the Company entered into two cash flow swaps totaling $30.0 million in order to hedge the variable cash outflows associated with the junior subordinated debentures issued to Lakeland Capital Trust II and Lakeland Capital Trust IV. For more information please see Note 19 – Derivatives. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY On October 22, 2019 , the Board of Directors of Lakeland approved a new share repurchase program whereby the Company may repurchase up to 2,524,458 shares of its common stock, or approximately 5% of its outstanding shares of common stock at September 30, 2019 . The Company had 50,489,161 shares outstanding as of September 30, 2019. Repurchases may be made from time to time through a combination of open market and privately negotiated repurchases. The specific timing, price and quantity of repurchases will be at the discretion of the Company and will depend on a variety of factors, including general market conditions, the trading price of the common stock, legal and contractual requirements and the Company's financial performance. Open market purchases may be conducted in accordance with the limitations of Rule 10b-18 of the Securities and Exchange Commission (the SEC). Repurchases may be made pursuant to trading plans adopted in accordance with SEC Rule 10b5-1, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program does not obligate the Company to repurchase any particular number of shares and may be terminated at any time without notice, in the Company’s discretion. As of December 31, 2019 , the Company had repurchased no |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income taxes are as follows: Years Ended December 31, (in thousands) 2019 2018 2017 Current tax provision $ 20,418 $ 30,459 $ 10,565 Deferred tax expense (benefit) 2,854 (13,571 ) 16,904 Total provision for income taxes $ 23,272 $ 16,888 $ 27,469 In July 2018, the State of New Jersey enacted changes to the tax law that were retroactive to the beginning of 2018. Included in these changes was a surcharge in addition to the corporate tax. The surcharge will be 2.5% for 2018 and 2019, 1.5% for 2020 and 2021, and will revert to no surcharge in 2022. In addition to the surcharge, New Jersey adopted the concept of combined (consolidated) tax filings under a unitary concept for corporations that are part of an affiliated group beginning in 2019. As of July 1, 2018, the Company revalued its deferred tax assets based on the additional surcharge and the combined tax filings. Based on this revaluation, the Company recorded an increase in its net deferred tax asset of $943,000 to reflect the change in the state tax rates among its subsidiaries. The Tax Cuts and Jobs Act was enacted on December 22, 2017, resulting in changes in the U.S. corporate tax rates, business-related exclusions, deductions and credits. Enactment of the Tax Cuts and Jobs Act requires the Company to reflect the changes associated with the law's provisions in its consolidated financial statements as of and for the year ended December 31, 2017. The Company recorded an increase in its net deferred tax asset of $1.3 million to reflect the reduction in the federal corporate income tax rate from 35% to 21%. During 2017, the Company implemented a tax planning strategy which resulted in an increase in deferred tax liabilities, a higher deferred tax provision and a $1.9 million excise tax recorded through current tax expense. Consequently, as a result of the Tax Cuts and Jobs Act being passed and the effect of the tax planning strategy, the net impact on the financial statements was $602,000 in additional tax expense. The income tax provision reconciled to the income taxes that would have been computed at the statutory federal rate of 21% for 2019 and 2018 and 35% for 2017 is as follows: Years Ended December 31, (in thousands) 2019 2018 2017 Federal income tax, at statutory rates $ 19,728 $ 16,861 $ 28,017 Increase (deduction) in taxes resulting from: Tax-exempt income (952 ) (1,096 ) (1,652 ) Excise tax on real estate investment trust ("REIT") dividend — — 1,945 Adjustment to net deferred tax asset for Tax Cuts and Jobs Act — — (1,343 ) State income tax, net of federal income tax effect 4,322 1,880 931 Adjustment to net deferred tax asset for change in NJ tax law — (943 ) — Excess tax benefits from employee share-based payments (189 ) (318 ) (587 ) Other, net 363 504 158 Provision for income taxes $ 23,272 $ 16,888 $ 27,469 The net deferred tax asset consisted of the following: December 31, (in thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 11,937 $ 11,651 Stock based compensation plans 958 865 Purchase accounting fair market value adjustments 3,632 1,192 Non-accrued interest 381 256 Deferred compensation 2,444 2,142 Depreciation and amortization — 630 Other-than-temporary impairment loss on investment securities 41 59 Federal net operating loss carryforward 875 — Unrealized loss on pension plans 2 — Unrealized losses on securities available for sale — 3,162 Other, net 594 585 Gross deferred tax assets 20,864 20,542 Deferred tax liabilities: Core deposit intangible from acquired companies 1,235 516 Undistributed income from subsidiary not consolidated for tax return purposes (REIT) 678 149 Deferred loan costs 1,461 1,418 Depreciation and amortization 750 — Prepaid expenses 443 459 Deferred gain on securities 162 166 Unfunded pension benefits — 17 Loss on equity securities 65 36 Unrealized gain on investment securities 884 — Unrealized gains on hedging derivative 80 322 Other 301 270 Gross deferred tax liabilities 6,059 3,353 Net deferred tax assets $ 14,805 $ 17,189 The Company recorded net deferred tax assets of $4.3 million as a result of the acquisition of Highlands. The Company evaluates the realizability of its deferred tax assets by examining its earnings history and projected future earnings and by assessing whether it is more likely than not that carryforwards would not be realized. Based upon the majority of the Company’s deferred tax assets having no expiration date, the Company’s earnings history, and the projections of future earnings, the Company’s management believes that it is more likely than not that all of the Company’s deferred tax assets as of December 31, 2019 will be realized. The Company evaluates tax positions that may be uncertain using a recognition threshold of more likely than not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company had no unrecognized tax benefits or related interest or penalties at December 31, 2019 or 2018 . The Company is subject to U.S. federal income tax law as well as income tax of various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few significant exceptions, the Company is no longer subject to U.S. federal examinations by tax authorities for the years before 2016 or to state and local examinations by tax authorities for the years before 2016 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Benefit Obligations from Somerset Hills Acquisition Somerset Hills, acquired by the Company in 2013, entered into a non-qualified Supplemental Executive Retirement Plan (“SERP”) with its former Chief Executive Officer and its Chief Financial Officer which entitles them to a benefit of $48,000 and $24,000 , respectively, per year for 15 years after the earlier of retirement or death. The former Chief Executive Officer and the beneficiary of the Chief Financial Officer are currently being paid out under the plan. As of December 31, 2019 and 2018 , the Company had a liability of $616,000 and $629,000 , respectively, for these SERPs and recognized an expense of $59,000 and $33,000 in 2019 and 2017 , respectively, while recognizing income of $1,000 in 2018 . 401(k) plan The Company has a 401(k) plan covering substantially all employees providing they meet eligibility requirements. The Company matches 50% of the first 6% contributed by the participants to the 401(k) plan. The Company’s contributions in 2019 , 2018 and 2017 totaled $1.3 million , $1.1 million and $1.0 million , respectively. Supplemental Executive Retirement Plans In 2003 , the Company entered into a SERP agreement with its former CEO that provides annual retirement benefits of $150,000 a year for 15 years when the former CEO reached the age of 65 . Our former CEO retired and is receiving annual retirement benefits pursuant to the plan. In 2008 , the Company entered into a SERP agreement with its current CEO that provides annual retirement benefits of $150,000 for 15 years when the CEO reaches the age of 65 . Also in 2008 , the Company entered into a SERP with a Regional President that provides annual retirement benefits of $90,000 a year for ten years upon his reaching the age of 65 . In 2016 , the Company entered into a SERP with a former Regional President that provides $84,500 a year for 15 years upon his reaching the age of 66 . The Company intends to fund its obligations under the deferred compensation arrangements with the increase in cash surrender value of bank owned life insurance policies. In 2019 , 2018 and 2017 , the Company recorded compensation expense of $371,000 , $83,000 and $261,000 , respectively, for these plans. The accrued liability for these plans was $3.4 million and $3.3 million for the years ended December 31, 2019 and 2018 , respectively. Deferred Compensation Agreement In 2015 , the Company entered into a Deferred Compensation Agreement with its CEO where it would contribute $16,500 monthly into a deferral account which would earn interest at an annual rate of the Company’s prior year return on equity, provided that the Company’s return on equity remained in a range of 0% to 15% . The Company has agreed to make such contributions each month that the CEO is actively employed from February 2015 through December 31, 2022. The expense incurred in 2019 , 2018 and 2017 was $311,000 , $269,000 and $244,000 , respectively, and the accrued liability at December 31, 2019 and 2018 was $1.2 million and $923,000 , respectively. Following the CEO’s normal retirement date, he shall be paid out in 180 consecutive monthly installments. Elective Deferral Plan In 2015 , the Company established an Elective Deferral Plan for eligible executives in which the executive may elect to contribute a portion of his base salary and bonus to a deferral account which will earn an interest rate of 75% of the Company’s prior year return on equity provided that the return on equity remains in the range of 0% to 15% . The Company recorded an expense of $136,000 , $73,000 and $55,000 in 2019 , 2018 and 2017 , respectively, and had a liability recorded of $2.0 million and $1.4 million at December 31, 2019 and 2018 , respectively. |
Directors Retirement Plan
Directors Retirement Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits, Description [Abstract] | |
Directors Retirement Plan | DIRECTORS RETIREMENT PLAN The Company provides a retirement plan for directors appointed to the Company's Board of Directors prior to 2009 who after completing five years of service may retire and receive benefit payments ranging from $5,000 through $17,500 per annum, depending upon years of credited service, for a period of ten years . This plan is unfunded. The following tables present the status of the plan and the components of net periodic plan cost for the years then ended. The measurement date for the accumulated benefit obligation is December 31 of the years presented. December 31, (in thousands) 2019 2018 Accrued plan cost included in other liabilities $ 646 $ 604 Amount not recognized as component of net postretirement benefit cost Recognized in accumulated other comprehensive income Net actuarial loss (gain) $ 64 $ (29 ) Unrecognized prior service cost — — Amounts not recognized as a component of net postretirement benefit $ 64 $ (29 ) The net periodic plan cost included the following components: Years Ended December 31, (in thousands) 2019 2018 2017 Service cost $ 14 $ 15 $ 21 Interest cost 22 20 23 Amortization of prior service cost — — 3 Amortization of gain (2 ) — — $ 34 $ 35 $ 47 A discount rate of 2.89% , 3.97% and 3.30% was assumed in the plan valuation for 2019 , 2018 and 2017 , respectively. As the benefit amount is not dependent upon compensation levels, a rate of increase in compensation assumption was not utilized in the plan valuation. The directors' retirement plan holds no plan assets. The benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter are as follows: (in thousands) 2020 $ 63 2021 37 2022 38 2023 38 2024 52 2025-2029 210 The Company expects its contribution to the directors' retirement plan to be $63,000 in 2020 . There is no expected amount to be recognized in accumulated other comprehensive income as a component of net periodic benefit cost in 2020 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's shareholders approved the 2018 Omnibus Equity Incentive Plan (the "Plan"), which authorizes the granting of incentive stock options, supplemental stock options, stock appreciation rights, restricted shares, restricted stock units, other stock-based awards and cash-based awards to officers, employees and non-employee directors of, and consultants and advisors to, the Company and its subsidiaries. The Plan authorizes the issuance of up to 2.0 million shares of Company common stock and includes approximately 1.1 million shares of common stock theretofore available under the Company's 2009 Equity Compensation Program but not used. The maximum term of the Company’s stock option grants under the Plan is ten years from the date of grant. Under the 2009 Equity Compensation Program, 2.3 million shares of common stock of the Company were authorized. The maximum term of the Company’s stock option grants under this plan was ten years from the date of grant. No further awards may be granted from the 2009 program. In 2014, the Company began issuing restricted stock units ("RSUs"), some of which have performance conditions attached to them. The Company has outstanding stock options issued to its directors as well as options assumed under the Somerset Hills’ stock option plans at the time of the Company's acquisition of Somerset Hills. As of December 31, 2019 and 2018 , respectively, 28,942 and 55,192 options granted to directors were outstanding. As of December 31, 2019 and 2018 , there were 2,764 and 12,296 options outstanding, respectively, under the Somerset Hills’ stock option plans. Excess tax benefits of stock based compensation were $189,000 , $318,000 and $587,000 for the years 2019 , 2018 and 2017 , respectively. Employee Stock Options A summary of the status of the Company’s option plans as of December 31, 2019 and the changes during the year ending on that date is represented below. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding, beginning of year 67,488 $ 8.28 2.86 $ 440,483 Exercised (35,782 ) 8.75 Outstanding, end of year 31,706 $ 7.76 0.58 $ 305,120 Options exercisable at year-end 31,706 $ 7.76 0.58 $ 305,120 There were no non-vested options under the Company’s option plans as of December 31, 2019 and no changes to the non-vested options for the year then ended. As of December 31, 2019 , there was no unrecognized compensation expense related to unvested stock options under the 2018 Omnibus Equity Incentive Plan or the 2009 Equity Compensation Program. There was no compensation expense recognized for stock options for 2019 and 2018 and $14,000 of compensation expense for stock options was recognized for 2017 . The aggregate intrinsic values of options exercised in 2019 and 2018 were $265,000 and $406,000 , respectively. Exercise of stock options during 2019 and 2018 resulted in cash receipts of $313,000 and $307,000 , respectively. No options vested in 2019 and 2018. Restricted Stock Information regarding the Company’s restricted stock for the year ended December 31, 2019 is as follows: Number of Shares Weighted Average Price Outstanding, beginning of year 11,701 $ 20.18 Granted 13,052 15.96 Vested (11,643 ) 20.24 Outstanding, end of year 13,110 $ 15.93 In 2019 , the Company granted 13,052 shares of restricted stock to non-employee directors at a grant date fair value of $15.96 per share under the Company’s 2018 Omnibus Equity Incentive Plan. These shares will vest over a one year period, totaling $208,000 in compensation expense. In 2018 , the Company granted 11,575 shares of restricted stock to non-employee directors at a grant date fair value of $20.30 per share under the Company’s 2018 Omnibus Equity Incentive Plan and 2009 Equity Compensation Program. These shares vested over a one year period, totaling $235,000 in compensation expense. In 2017 , the Company granted 13,176 shares of restricted stock to non-employee directors at a grant date fair value of $18.20 per share under the Company’s 2009 Equity Compensation Program. These shares vested over a one year period, totaling $240,000 in compensation expense. The total fair value of the restricted stock vested during the year ended December 31, 2019 was approximately $236,000 . Compensation expense recognized for restricted stock was $212,000 , $237,000 and $287,000 in 2019 , 2018 and 2017 , respectively. There was no unrecognized compensation expense related to restricted stock grants as of December 31, 2019 . Restricted Stock Units Information regarding the Company’s RSUs and changes during the year ended December 31, 2019 is as follows: Number of RSUs Weighted Average Price Outstanding, beginning of year 299,347 $ 16.60 Granted 149,559 16.54 Vested (138,578 ) 13.12 Forfeited (9,699 ) 18.02 Outstanding, end of year 300,629 $ 18.13 In 2019 , the Company granted 149,559 RSUs at a weighted average grant date fair value of $16.54 per share under the Company’s 2018 Omnibus Equity Incentive Plan. These units vest within a range of two to three years . A portion of these RSUs will vest subject to certain performance conditions in the restricted stock unit agreements. There are also certain provisions in the compensation program which state that if a holder of the RSUs reaches a certain age and years of service, the person has effectively earned a portion of the RSUs at that time. Compensation expense on the RSUs granted in 2019 is expected to average approximately $825,000 per year over a three year period. In 2018 , the Company granted 159,233 RSUs at a weighted average grant date fair value of $19.09 per share under the Company’s 2018 Omnibus Equity Incentive Plan and 2009 Equity Compensation Program. These units vest within a range of two to three years . Compensation expense on these restricted stock units is expected to average approximately $1.0 million per year over a three year period. In 2017 , the Company granted 132,523 RSUs at a weighted average grant date fair value of $19.92 per share under the Company’s 2009 Equity Compensation Program. Compensation expense on these restricted stock units is expected to average $880,000 per year over a three year period. Compensation expense for restricted stock units totaled $2.3 million , $2.2 million and $2.0 million in 2019 , 2018 and 2017 , respectively. There was approximately $2.4 million in unrecognized compensation expense related to restricted stock units as of December 31, 2019 , which is expected to be recognized over a period of 1.29 years . |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The Company’s primary source of revenue is interest income generated from loans and investment securities. Interest income is recognized according to the terms of the financial instrument agreement over the life of the loan or investment security unless it is determined that the counterparty is unable to continue making interest payments. Interest income also includes prepaid interest fees from commercial customers, which approximates the interest foregone on the balance of the loan prepaid. The Company’s additional source of income, also referred to as noninterest income, is generated from deposit related fees, interchange fees, loan fees, merchant fees, loan sales and other miscellaneous income and is largely based on contracts with customers. In these cases, the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The Company considers a customer to be any party to which the Company will provide goods or services that are an output of the Company’s ordinary activities in exchange for consideration. There is little seasonality with regards to revenue from contracts with customers and all inter-company revenue is eliminated when the Company’s financial statements are consolidated. Generally, the Company enters into contracts with customers that are short-term in nature where the performance obligations are fulfilled and payment is processed at the same time. Such examples include revenue related to merchant fees, interchange fees and investment services income. In addition, revenue generated from existing customer relationships such as deposit accounts are also considered short-term in nature, because the relationship may be terminated at any time and payment is processed at the time performance obligations are fulfilled. As a result, the Company does not have contract assets, contract liabilities or related receivable accounts for contracts with customers. In cases where collectability is a concern, the Company does not record revenue. Generally, the pricing of transactions between the Company and each customer is either (i) established within a legally enforceable contract between the two parties, as is the case with the loan sales, or (ii) disclosed to the customer at a specific point in time, as is the case when a deposit account is opened or before a new loan is underwritten. Fees are usually fixed at a specific amount or as a percentage of a transaction amount. No judgment or estimates by management are required to record revenue related to these transactions and pricing is clearly identified within these contracts. The Company primarily operates in one geographic region, Northern and Central New Jersey, metropolitan New York and contiguous areas. Therefore, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. We disaggregate our revenue from contracts with customers by contract-type and timing of revenue recognition, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Noninterest income not generated from customers during the Company’s ordinary activities primarily relates to mortgage servicing rights, gains/losses on the sale of investment securities, gains/losses on the sale of other real estate owned, gains/losses on the sale of property, plant and equipment, and income from bank owned life insurance. The following table sets forth the components of noninterest income for the years ended December 31, 2019 , 2018 and 2017 : (in thousands) 2019 2018 2017 Deposit Related Fees and Charges Debit card interchange income $ 5,719 $ 5,150 $ 4,474 Overdraft charges 4,052 3,938 4,656 ATM service charges 826 830 808 Demand deposit fees and charges 501 540 679 Savings service charges 107 126 123 Total 11,205 10,584 10,740 Commissions and Fees Loan fees 1,510 1,264 1,136 Wire transfer charges 1,223 1,093 1,005 Investment services income 1,651 1,314 1,045 Merchant fees 813 784 718 Commissions from sales of checks 407 434 457 Safe deposit income 364 371 269 Other income 250 264 202 Total 6,218 5,524 4,832 Gains on Sale of Loans 1,660 1,329 1,836 Other Income Gains on customer swap transactions 3,231 1,992 982 Title insurance income 183 195 200 Other income 1,463 295 518 Total 4,877 2,482 1,700 Revenue not from contracts with customers 2,836 2,391 6,327 Total Noninterest Income $ 26,796 $ 22,310 $ 25,435 Timing of Revenue Recognition Products and services transferred at a point in time $ 23,885 $ 19,844 $ 19,040 Products and services transferred over time 75 75 68 Revenue not from contracts with customers 2,836 2,391 6,327 Total Noninterest Income $ 26,796 $ 22,310 $ 25,435 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation There are no pending legal proceedings involving the Company or Lakeland other than those arising in the normal course of business. Management does not anticipate that the potential liability, if any, arising out of such legal proceedings will have a material effect on the financial condition or results of operations of the Company and Lakeland on a consolidated basis. Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk The Company is a party to transactions with off-balance-sheet risk in the normal course of business in order to meet the financing needs of its customers and consists of commitments to extend credit. These transactions involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the accompanying consolidated balance sheets. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Lakeland evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by Lakeland upon extension of credit, is based on management’s credit evaluation of the borrower. At December 31, 2019 and 2018 , Lakeland had $1.1 billion and $973.7 million in commitments to originate loans, including unused lines of credit. Lakeland issues financial standby letters of credit and performance letters of credit that are conditional commitments issued by Lakeland to guarantee the payment by or performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Lakeland holds deposit accounts, residential or commercial real estate, accounts receivable, inventory and equipment as collateral to support those commitments for which collateral is deemed necessary. The extent of collateral held for those commitments varies based on management’s credit evaluation. Lakeland’s exposure under these letters of credit would be reduced by actual performance, subsequent termination by the beneficiaries and by any proceeds that Lakeland obtained in liquidating the collateral for the loans, which varies depending on the customer. The maximum potential undiscounted amount of future payments of these letters of credit as of December 31, 2019 and 2018 was $17.2 million and $21.6 million , respectively, and they expire through 2024 . The fair value of Lakeland's liability for financial standby letters of credit was insignificant at December 31, 2019 . At December 31, 2019 and 2018 there were $100,000 and $808,000 , respectively, in commitments to lend additional funds to borrowers whose terms have been modified in troubled debt restructurings. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | COMPREHENSIVE INCOME (LOSS) The Company reports comprehensive income or loss in addition to net income from operations. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented. Year Ended December 31, 2019 (in thousands) Before Tax Amount Tax Benefit (Expense) Net of Tax Amount Unrealized holding gains on securities available for sale arising during the period $ 14,763 $ (4,045 ) $ 10,718 Unrealized losses on derivatives (828 ) 242 (586 ) Change in pension liability, net (64 ) 18 (46 ) Other comprehensive income $ 13,871 $ (3,785 ) $ 10,086 Year Ended December 31, 2018 (in thousands) Before Tax Amount Tax Benefit (Expense) Net of Tax Amount Unrealized holding gains on securities available for sale arising during the period $ (4,241 ) $ 734 $ (3,507 ) Unrealized gains on derivatives 9 32 41 Change in pension liability, net 29 (9 ) 20 Other comprehensive loss $ (4,203 ) $ 757 $ (3,446 ) Year Ended December 31, 2017 (in thousands) Before Tax Amount Tax Benefit (Expense) Net of Tax Amount Unrealized losses on securities available for sale Unrealized holding losses arising during period $ (1,406 ) $ 503 $ (903 ) Reclassification adjustment for securities gains included in net income (2,524 ) 884 (1,640 ) Net unrealized losses on available for sale securities (3,930 ) 1,387 (2,543 ) Unrealized gains on derivatives 57 (20 ) 37 Change in pension liability, net (27 ) 11 (16 ) Other comprehensive loss $ (3,900 ) $ 1,378 $ (2,522 ) (in thousands, net of tax) Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Derivatives Pension Items Total Balance at of January 1, 2017 $ (117 ) $ 672 $ 38 $ 593 Other comprehensive income (loss) before classifications (903 ) 37 (16 ) (882 ) Amounts reclassified from accumulated other comprehensive income (1,640 ) — — (1,640 ) Net current period other comprehensive income (loss) (2,543 ) 37 (16 ) (2,522 ) Adjustment for implementation of ASU 2018-02 (572 ) 153 (1 ) (420 ) Balance at December 31, 2017 $ (3,232 ) $ 862 $ 21 $ (2,349 ) Adjustment for implementation of ASU 2016-01 (2,043 ) — — (2,043 ) Adjusted balance as of January 1, 2018 (5,275 ) 862 21 (4,392 ) Net current period other comprehensive income (loss) (3,507 ) 41 20 (3,446 ) Balance at December 31, 2018 $ (8,782 ) $ 903 $ 41 $ (7,838 ) Net current period other comprehensive income (loss) 10,718 (586 ) (46 ) 10,086 Balance at December 31, 2019 $ 1,936 $ 317 $ (5 ) $ 2,248 |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Fair Value of Financial Instruments | FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest level priority to unobservable inputs (level 3 measurements). The following describes the three levels of fair value hierarchy: Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities; includes U.S. Treasury Notes, and other U.S. Government Agency securities that actively trade in over-the-counter markets; equity securities and mutual funds that actively trade in over-the-counter markets. Level 2 - quoted prices for similar assets or liabilities in active markets; or quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability including yield curves, volatilities, and prepayment speeds. Level 3 - unobservable inputs for the asset or liability that reflect the Company’s own assumptions about assumptions that market participants would use in the pricing of the asset or liability and that are consequently not based on market activity but on particular valuation techniques. The Company’s assets that are measured at fair value on a recurring basis are its available for sale investment securities and its interest rate swaps. The Company obtains fair values on its securities using information from a third party servicer. If quoted prices for securities are available in an active market, those securities are classified as Level 1 securities. The Company has U.S. Treasury Notes and certain equity securities that are classified as Level 1 securities. Level 2 securities were primarily comprised of U.S. Agency bonds, residential mortgage-backed securities, obligations of state and political subdivisions and corporate securities. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, bids and offers. On a quarterly basis, the Company reviews the pricing information received from the Company’s third party pricing service. This review includes a comparison to non-binding third-party quotes. The fair values of derivatives are based on valuation models using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counter-party as of the measurement date (Level 2). The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the years ended December 31, 2019 and 2018 , the Company did not make any transfers between recurring Level 1 fair value measurements and recurring Level 2 fair value measurements. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value (in thousands) Assets: Investment securities, available for sale U.S. Treasury and government agencies $ 12,580 $ 123,067 $ — $ 135,647 Mortgage-backed securities — 551,064 — 551,064 Obligations of states and political subdivisions — 60,021 — 60,021 Corporate debt securities — 9,168 — 9,168 Total securities available for sale 12,580 743,320 — 755,900 Equity securities, at fair value 1,735 14,738 — 16,473 Derivative assets — 27,123 — 27,123 Total Assets $ 14,315 $ 785,181 $ — $ 799,496 Liabilities: Derivative liabilities $ — $ 26,852 $ — $ 26,852 Total Liabilities $ — $ 26,852 $ — $ 26,852 December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value (in thousands) Assets: Investment securities, available for sale U.S. Treasury and government agencies $ 4,920 $ 136,007 $ — $ 140,927 Mortgage-backed securities — 447,094 — 447,094 Obligations of states and political subdivisions — 45,505 — 45,505 Corporate debt securities — 5,092 — 5,092 Total securities available for sale 4,920 633,698 — 638,618 Equity securities, at fair value 2,731 13,190 — 15,921 Derivative assets — 12,135 — 12,135 Total Assets $ 7,651 $ 659,023 $ — $ 666,674 Liabilities: Derivative liabilities $ — $ 11,036 $ — $ 11,036 Total Liabilities $ — $ 11,036 $ — $ 11,036 The following table sets forth the Company’s financial assets subject to fair value adjustments (impairment) on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: December 31, 2019 (Level 1) (Level 2) (Level 3) Total Fair Value (in thousands) Assets: Impaired loans $ — $ — $ 5,789 $ 5,789 Loans held for sale — 1,743 — 1,743 Other real estate owned and other repossessed assets — — 563 563 December 31, 2018 (Level 1) (Level 2) (Level 3) Total Fair Value (in thousands) Assets: Impaired loans $ — $ — $ 8,966 $ 8,966 Loans held for sale — 1,113 — 1,113 Other real estate owned and other repossessed assets — — 830 830 Impaired loans are evaluated and valued at the time the loan is identified as impaired at the lower of cost or market value. Because most of Lakeland’s impaired loans are collateral dependent, fair value is generally measured based on the value of the collateral, less estimated costs to sell, securing these loans and is classified at a level 3 in the fair value hierarchy. Collateral may be real estate, accounts receivable, inventory, equipment and/or other business assets. The value of the real estate is assessed based on appraisals by qualified third party licensed appraisers. The appraisers may use the income approach to value the collateral using the then market discount rates (with ranges of 5 - 11% ) or capitalization rates (with ranges of 4 - 9% ) to evaluate the property. The value of the equipment may be determined by an appraiser, if significant, inquiry through a recognized valuation resource, or by the value on the borrower’s financial statements. Field examiner reviews on business assets may be conducted based on the loan exposure and reliance on this type of collateral. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. The Company has a held for sale loan portfolio that consists of residential mortgages that are being sold in the secondary market. The Company records these mortgages at the lower of cost or fair market value. Fair value is generally determined by the value of purchase commitments. Other real estate owned (OREO) and other repossessed assets, representing property acquired through foreclosure or deed in lieu of foreclosure, are carried at fair value less estimated disposal costs of the acquired property. Fair value on other real estate owned is based on the appraised value of the collateral using discount rates or capitalization rates similar to those used in impaired loan valuation. The fair value of other repossessed assets is estimated by inquiry through a recognized valuation resource. Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. Changes in economic conditions, locally or nationally, could impact the value of the estimated amounts of impaired loans, OREO and other repossessed assets. Fair Value of Certain Financial Instruments Estimated fair values have been determined by the Company using the best available data and an estimation methodology suitable for each category of financial instruments. Management is concerned that there may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values. The estimation methodologies used, the estimated fair values, and recorded book balances at December 31, 2019 and December 31, 2018 are outlined below. This summary, as well as the table below, excludes financial assets and liabilities for which carrying value approximates fair value. For financial assets, these include cash and cash equivalents. For financial liabilities, these include noninterest-bearing demand deposits, savings and interest-bearing transaction accounts and federal funds sold and securities sold under agreements to repurchase. The estimated fair value of demand, savings and interest-bearing transaction accounts is the amount payable on demand at the reporting date. Carrying value is used because there is no stated maturity on these accounts, and the customer has the ability to withdraw the funds immediately. Also excluded from this summary and the following table are those financial instruments recorded at fair value on a recurring basis, as previously described. The fair value of investment securities held to maturity was measured using information from the same third-party servicer used for investment securities available for sale using the same methodologies discussed above. Investment securities held to maturity includes $901,000 in short-term municipal bond anticipation notes and $2.5 million in subordinated debt that are non-rated and do not have an active secondary market or information readily available on standard financial systems. As a result, the securities are classified as Level 3 securities. Management performs a credit analysis before investing in these securities. FHLB stock is an equity interest that can be sold to the issuing FHLB, to other FHLBs, or to other member banks at its par value. Because ownership of these securities is restricted, they do not have a readily determinable fair value. As such, the Company’s FHLB stock is recorded at cost or par value and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company’s evaluation primarily includes an evaluation of liquidity, capitalization, operating performance, commitments, and regulatory or legislative events. The net loan portfolio is valued using an exit price approach, which incorporates a build-up discount rate calculation that uses a swap rate adjusted for credit risk, servicing costs, a liquidity premium and a prepayment premium. For fixed maturity certificates of deposit, fair value was estimated based on the present value of discounted cash flows using the rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value. The fair value of long-term debt is based upon the discounted value of contractual cash flows. The Company estimates the discount rate using the rates currently offered for similar borrowing arrangements. The fair value of subordinated debentures is based on bid/ask prices from brokers for similar types of instruments. The fair values of commitments to extend credit and standby letters of credit are 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 fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The fair values of commitments to extend credit and standby letters of credit are deemed immaterial. The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2019 and December 31, 2018 : December 31, 2019 Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Investment securities held to maturity $ 123,975 $ 124,904 $ — $ 121,503 $ 3,401 Federal Home Loan and other membership bank stock 22,505 22,505 — 22,505 — Loans, net 5,097,820 5,194,065 — — 5,194,065 Financial Liabilities: Certificates of deposit 870,804 871,418 — 871,418 — Other borrowings 165,816 166,505 — 166,505 — Subordinated debentures 118,220 117,992 — — 117,992 December 31, 2018 Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Investment securities held to maturity $ 153,646 $ 150,932 $ — $ 143,913 $ 7,019 Federal Home Loan and other membership bank stock 13,301 13,301 — 13,301 — Loans, net 4,419,045 4,341,477 — — 4,341,477 Financial Liabilities: Certificates of deposit 757,038 750,801 — 750,801 — Other borrowings 181,118 176,921 — 176,921 — Subordinated debentures 105,027 102,497 — — 102,497 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES Lakeland is a party to interest rate derivatives that are not designated as hedging instruments. Under a program, Lakeland executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Lakeland executes with a third party, such that Lakeland minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. As of December 31, 2019 and 2018 , Lakeland had $30.0 million and $498,000 , respectively, in securities pledged for collateral on its interest rate swaps. In June 2016, the Company entered into two cash flow hedges in order to hedge the variable cash outflows associated with its floating rate subordinated debentures (See Note 9). The notional value of these hedges was $30.0 million . The Company’s objective in using the cash flow hedge is to add stability to interest expense and to manage its exposure to interest rate movements. The Company used interest rate swaps designated as cash flow hedges which involved the receipt of variable amounts 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. In these particular hedges the Company is paying a third party an average of 1.10% in exchange for a payment at 3 month LIBOR . The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the year ended December 31, 2019 , the Company did not record any hedge ineffectiveness. The Company recognized $409,000 of accumulated other comprehensive income that was reclassified into interest expense during 2019 . The Company did not enter into any hedges in 2019 . Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s debt. During the next twelve months, the Company estimates that $243,000 will be reclassified as a decrease to interest expense should the rate environment remain the same. The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands): December 31, 2019 Notional Amount Average Maturity (Years) Weighted Average Rate Fixed Weighted Average Variable Rate Fair Value Classified in Other Assets: Third party interest rate swaps $ 85,796 9.0 3.51 % 1 Mo. LIBOR + 1.95 $ 947 Customer interest rate swaps 473,273 9.9 4.32 % 1 Mo. LIBOR + 1.93 25,905 Interest rate swap (cash flow hedge) 30,000 1.5 1.10 % 3 Mo. LIBOR 271 Classified in Other Liabilities: Customer interest rate swaps $ 85,796 9.0 3.51 % 1 Mo. LIBOR + 1.95 $ (947 ) Third party interest rate swaps 473,273 9.9 4.32 % 1 Mo. LIBOR + 1.93 (25,905 ) December 31, 2018 Notional Amount Average Maturity (Years) Weighted Average Rate Fixed Weighted Average Variable Rate Fair Value Classified in Other Assets: 3rd Party interest rate swaps $ 153,909 8.3 4.10 % 1 Mo. LIBOR + 2.13 $ 5,329 Customer interest rate swaps 164,427 12.0 5.04 % 1 Mo. LIBOR + 2.05 5,707 Interest rate swap (cash flow hedge) 30,000 2.5 1.10 % 3 Mo. LIBOR 1,099 Classified in Other Liabilities: Customer interest rate swaps $ 153,909 8.3 4.10 % 1 Mo. LIBOR + 2.13 $ (5,329 ) 3rd party interest rate swaps 164,427 12.0 5.04 % 1 Mo. LIBOR + 2.05 (5,707 ) |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | REGULATORY MATTERS The Bank Holding Company Act of 1956 restricts the amount of dividends the Company can pay. Accordingly, dividends should generally only be paid out of current earnings, as defined. The New Jersey Banking Act of 1948 restricts the amount of dividends paid on the capital stock of New Jersey chartered banks. Accordingly, no dividends shall be paid by such banks on their capital stock unless, following the payment of such dividends, the capital stock of Lakeland will be unimpaired, and: (1) Lakeland will have a surplus, as defined, of not less than 50% of its capital stock, or, if not, (2) the payment of such dividend will not reduce the surplus, as defined, of Lakeland. Under these limitations, approximately $629.1 million was available for payment of dividends from Lakeland to the Company as of December 31, 2019 . The Company and Lakeland are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possible additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Lakeland’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s and Lakeland’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Lakeland’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulations to ensure capital adequacy require the Company and Lakeland to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2019 , that the Company and Lakeland met all capital adequacy requirements to which they are subject. As of December 31, 2019 , the most recent notification from the FDIC categorized Lakeland as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, Lakeland must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 capital and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the institution’s category. As of December 31, 2019 and 2018 , the Company and Lakeland have the following capital ratios based on the then current regulations: (dollars in thousands) Actual For Capital Adequacy Purposes with Capital Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Company $ 721,741 13.40 % > $ 565,504 > 10.50% N/A N/A Lakeland 681,689 12.67 % 564,981 10.50 % > $ 538,077 > 10.00% Tier 1 capital (to risk-weighted assets) Company $ 593,539 11.02 % > $ 457,789 > 8.50% N/A N/A Lakeland 639,908 11.89 % 457,365 8.50 % > $ 430,462 > 8.00% Common equity Tier 1 capital (to risk-weighted assets) Company $ 563,539 10.46 % > $ 377,003 > 7.00% N/A N/A Lakeland 639,908 11.89 % 376,654 7.00 % > $ 349,750 > 6.50% Tier 1 capital (to average assets) Company $ 593,539 9.41 % > $ 252,234 > 4.00% N/A N/A Lakeland 639,908 10.16 % 252,039 4.00 % > $ 315,048 > 5.00% (dollars in thousands) Actual For Capital Adequacy Purposes with Capital Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Company $ 637,377 13.71 % > $ 458,952 > 9.875% N/A N/A Lakeland 605,560 13.06 % 457,912 9.875 % > $ 463,708 > 10.00% Tier 1 capital (to risk-weighted assets) Company $ 523,577 11.27 % > $ 366,000 > 7.875% N/A N/A Lakeland 565,549 12.20 % 365,170 7.875 % > $ 370,967 > 8.00% Common equity Tier 1 capital (to risk-weighted assets) Company $ 493,577 10.62 % > $ 296,285 > 6.375% N/A N/A Lakeland 565,549 12.20 % 295,614 6.375 % > $ 301,410 > 6.50% Tier 1 capital (to average assets) Company $ 523,577 9.39 % > $ 222,982 > 4.00% N/A N/A Lakeland 565,549 10.17 % 222,539 4.00 % > $ 278,173 > 5.00% The final rules implementing the Basel Committee on Banking Supervisions capital guidelines for U.S. Banks became effective for the Company on January 1, 2015, with full compliance with all the final rule’s requirements phased in over a multi-year schedule, and was fully phased in at January 1, 2019. The Basel Rules require a “capital conservation buffer.” The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increased by 0.625% every January 1 until it reached 2.5% on January 1, 2019. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The Company reported goodwill of $156.3 million at December 31, 2019 and $136.4 million at December 31, 2018 . The Company recorded $19.8 million in goodwill from the Highlands merger in January 2019. Core deposit intangible was $4.3 million on December 31, 2019 compared to $1.8 million on December 31, 2018 . The Company recorded core deposit intangible of $3.7 million for the Highlands acquisition. In 2019 , amortization of core deposit intangible totaled $1.2 million . The estimated future amortization expense for each of the succeeding five years ended December 31 is as follows: (in thousands) 2020 $ 1,025 2021 868 2022 711 2023 554 2024 425 |
Condensed Financial Information
Condensed Financial Information - Parent Company Only | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information - Parent Company Only | CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY CONDENSED BALANCE SHEETS December 31, (in thousands) 2019 2018 ASSETS Cash and due from banks $ 29,981 $ 23,285 Equity securities 1,735 2,743 Investment securities, held to maturity 1,000 1,000 Investment in subsidiaries 802,079 695,571 Other assets 9,828 7,182 TOTAL ASSETS $ 844,623 $ 729,781 LIABILITIES AND STOCKHOLDERS’ EQUITY Other liabilities $ 1,140 $ 1,015 Subordinated debentures 118,220 105,027 Total stockholders’ equity 725,263 623,739 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 844,623 $ 729,781 CONDENSED STATEMENTS OF INCOME Years Ended December 31, (in thousands) 2019 2018 2017 INCOME Dividends from subsidiaries $ 36,905 $ 30,589 $ 26,665 Other income (loss) 408 (125 ) 2,750 TOTAL INCOME 37,313 30,464 29,415 EXPENSE Interest on subordinated debentures 5,983 5,141 5,091 Noninterest expenses 464 506 377 TOTAL EXPENSE 6,447 5,647 5,468 Income before benefit for income taxes 30,866 24,817 23,947 Income taxes benefit (1,646 ) (1,130 ) (2,018 ) Income before equity in undistributed income of subsidiaries 32,512 25,947 25,965 Equity in undistributed income of subsidiaries 38,160 37,454 26,615 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 70,672 $ 63,401 $ 52,580 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (in thousands) 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 70,672 $ 63,401 $ 52,580 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Gain on securities — — (2,539 ) Amortization of subordinated debt costs 36 125 118 Change in market value of equity securities (197 ) 338 — Excess tax benefits 189 318 587 Increase in other assets (1,873 ) (1,446 ) (1,927 ) Increase (decrease) in other liabilities 121 (6 ) (17 ) Equity in undistributed income of subsidiaries (38,160 ) (37,454 ) (26,615 ) NET CASH PROVIDED BY OPERATING ACTIVITIES 30,788 25,276 22,187 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of available for sale securities — — (79 ) Purchases of equity securities (82 ) (78 ) — Proceeds from sale of available for sale securities — — 3,217 Proceeds from sale of equity securities 1,287 2,155 — Net cash received from business acquisition 24 — — NET CASH PROVIDED BY INVESTING ACTIVITIES 1,229 2,077 3,138 CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid on common stock (24,919 ) (21,307 ) (18,853 ) Retirement of restricted stock (715 ) (763 ) (773 ) Exercise of stock options 313 307 321 NET CASH USED IN FINANCING ACTIVITIES (25,321 ) (21,763 ) (19,305 ) Net increase in cash and cash equivalents 6,696 5,590 6,020 Cash and cash equivalents, beginning of year 23,285 17,695 11,675 CASH AND CASH EQUIVALENTS, END OF YEAR $ 29,981 $ 23,285 $ 17,695 |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The accounting and reporting policies of the Company and its subsidiaries conform with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and predominant practices within the banking industry. The consolidated financial statements include the accounts of the Company, Lakeland, Lakeland NJ Investment Corp., Lakeland Investment Corp., Lakeland Equity, Inc. and Lakeland Preferred Equity, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The principal estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses and the valuation of the Company’s investment securities portfolio. The policies regarding these estimates are discussed below. The Company’s chief operating decision maker is its Chief Executive Officer. All of the Company’s financial services activities are interrelated and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, commercial lending is dependent upon the ability of Lakeland to fund itself with retail deposits and other borrowings and to manage interest rate and credit risk. The situation is also similar for consumer and residential mortgage lending. Moreover, the Company primarily operates in one market area, Northern and Central New Jersey, metropolitan New York and contiguous areas. Therefore, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. Accordingly, the Company has determined that it has one operating segment and thus one reporting segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand, cash items in the process of collection, amounts due from banks and federal funds sold with an original maturity of three months or less. A portion of Lakeland’s cash on hand and on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. |
Investment Securities | Investment Securities Investment securities are classified as held to maturity or available for sale. Management determines the appropriate classification of investment securities at the time of purchase. Investments in securities, for which management has both the ability and intent to hold to maturity, are classified as held to maturity and carried at cost, adjusted for the amortization of premiums and accretion of discounts computed by the effective interest method. Investments in debt securities, which management believes may be sold prior to maturity due to changes in interest rates, prepayment risk, liquidity requirements, or other factors, are classified as available for sale. Net unrealized gains and losses for such securities, net of tax effect, are reported as other comprehensive income (loss) and excluded from the determination of net income. Gains or losses on disposition of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method. Losses are recorded through the statement of income when the impairment is considered other-than-temporary, even if a decision to sell has not been made. The Company evaluates its investment securities portfolio for impairment each quarter. In estimating other-than-temporary losses, the Company considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company is more likely than not to sell the security before recovery of its cost basis. If a security has been impaired for more than twelve months, and the impairment is deemed other-than-temporary, a write down will occur in that quarter. If a loss is deemed to be other-than-temporary, it is recognized as a realized loss in the income statement with the security assigned a new cost basis. If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired, but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings in gain (loss) on securities, with the other portion of the loss recognized in other comprehensive income. If a determination is made that an equity security is other-than-temporarily impaired, the unrealized loss will be recognized as an other-than-temporary impairment charge in noninterest income as a component of gain (loss) on investment securities. The Company has an equity securities portfolio, which consists of investments in other financial institutions for market appreciation purposes, and recognizes net unrealized gains and losses through net income. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal and are net of unearned discount, unearned loan fees and an allowance for loan losses. Interest income is accrued as earned on a simple interest basis, adjusted for prepayments. All unamortized fees and costs related to the loan are amortized over the life of the loan using the interest method. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of interest and principal is doubtful. When a loan is placed on such non-accrual status, all accumulated accrued interest receivable is reversed out of current period income. Commercial loans are placed on non-accrual status with all accrued interest and unpaid interest reversed if (a) because of the deterioration in the financial position of the borrowers they are maintained on a cash basis (which means payments are applied when and as received rather than on a regularly scheduled basis), (b) payment in full of interest or principal is not expected, or (c) principal and interest have been in default for a period of 90 days or more unless the obligation is both well-secured and in process of collection. Residential mortgage loans and closed-end consumer loans are placed on non-accrual status at the time principal and interest have been in default for a period of 90 days or more, except where there exists sufficient collateral to cover the defaulted principal and interest payments, and the loans are well-secured and in the process of collection. Open-end consumer loans secured by real estate are generally placed on non-accrual and reviewed for charge-off when principal and interest payments are four months in arrears unless the obligations are well-secured and in the process of collection. Interest thereafter on such charged-off loans is taken into income when received only after full recovery of principal. As a general rule, a non-accrual asset may be restored to accrual status when none of its principal or interest is due and unpaid, satisfactory payments have been received for a sustained period (usually six months ), or when it otherwise becomes well-secured and in the process of collection. The Company defines impaired loans as all non-accrual loans with recorded investments of $500,000 or greater. Impaired loans also include all loans modified as troubled debt restructurings. Loans are considered impaired when, based on current information and events, it is probable that Lakeland will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate, or as a practical expedient, Lakeland may measure impairment based on a loan’s observable market price, or the fair value of the collateral, less estimated costs to sell, if the loan is collateral-dependent. Regardless of the measurement method, Lakeland measures impairment based on the fair value of the collateral when it is determined that foreclosure is probable. Most of Lakeland’s impaired loans are collateral-dependent. Shortfalls in collateral or cash flows are charged-off or specifically reserved for in the period the short-fall is identified. Charge-offs are recommended by the Chief Credit Officer and approved by the Company's Board of Directors. Lakeland groups impaired commercial loans under $500,000 into homogeneous pools and collectively evaluates them. Interest received on impaired loans may be recorded as interest income. However, if management is not reasonably certain that an impaired loan will be repaid in full, or if a specific time frame to resolve full collection cannot yet be reasonably determined, all payments received are recorded as reductions of principal. Purchased Credit-Impaired (“PCI”) loans are loans acquired through acquisition or purchased at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses). The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the covered loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of the loans. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans and results in an increase in yield on a prospective basis. Subsequent to acquisition date, further credit deterioration of a PCI loan will result in a valuation allowance recognized in the allowance for loan losses. Loans are classified as troubled debt restructured loans ("TDRs") in cases where borrowers experience financial difficulties and Lakeland makes certain concessionary modifications to contractual terms. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, an extended moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. Nonetheless, restructured loans are classified as impaired loans. If a loan has been restructured, it will continue to be classified as a TDR until it is fully repaid or until it meets all of the following criteria: 1) the borrower is no longer experiencing financial difficulties, 2) the rate is not less than the rate provided for similar credit risk, 3) other terms are no less favorable than similar new debt and 4) no concessions were granted. The allowance for loan losses is the estimated amount considered necessary to cover probable and reasonably estimable incurred losses inherent in the loan portfolio at the balance sheet date. In determining the allowance, we make significant estimates and judgments, and, therefore, have identified the allowance as a critical accounting policy. The allowance is established through a provision for loan losses charged against income. Loan principal considered to be uncollectible by management is charged against the allowance. The allowance for loan losses has been determined in accordance with U.S. GAAP. We are responsible for the timely and periodic determination of the amount of the allowance required. We believe that our allowance is adequate to cover identifiable losses, as well as estimated losses inherent in our portfolio for which certain losses are probable but not specifically identifiable. The determination of the adequacy of the allowance for loan losses and the periodic provisioning for estimated losses included in the consolidated financial statements is the responsibility of management and the Board of Directors. Management performs a formal quarterly evaluation of the allowance for loan losses. This quarterly process is performed by the credit administration department and approved by the Chief Credit Officer. All supporting documentation with regard to the evaluation process is maintained by the credit administration department. Each quarter, the evaluation along with the supporting documentation is reviewed by the finance department before approval by the Chief Credit Officer. The allowance evaluation is then presented to an Allowance for Loan Losses committee, which gives final approval to the allowance evaluation before being presented to the Board of Directors for their approval. The methodology employed for assessing the adequacy of the allowance consists of the following criteria: • The establishment of specific reserve amounts for impaired loans, including PCI loans. • The establishment of reserves for pools of homogeneous loans not subject to specific review, including impaired loans under $500,000, equipment finance loans, 1 - 4 family residential mortgages, and consumer loans. The establishment of reserve amounts for pools of homogeneous loans is based upon the determination of historical loss rates, which are adjusted to reflect current conditions through the use of qualitative factors. The qualitative factors considered by the Company includes an evaluation of the results of the Company’s independent loan review function, the Company's reporting capabilities, the adequacy and expertise of Lakeland’s lending staff, underwriting policies, loss histories, trends in the portfolio, delinquency trends, economic and business conditions and capitalization rates. Since many of Lakeland’s loans depend on the sufficiency of collateral as a secondary source of repayment, any adverse trends in the real estate market could affect the underlying values available to protect Lakeland from losses. Additionally, management determines the loss emergence periods for each loan segment, which are used to define loss migration periods and establish appropriate ranges for qualitative adjustments for each loan segment. The loss emergence period is the estimated time from the date of a loss event (such as a personal bankruptcy) to the actual recognition of the loss (typically via the first partial or full loan charge-off), and is determined based upon a study of our past loss experience by loan segment. All of the factors considered in the analysis of the adequacy of the allowance for loan losses may be subject to change. To the extent actual outcomes differ from management estimates, additional provisions for loan losses may be required that would adversely impact earnings in future periods. A loan that management designates as impaired is reviewed for charge-off when it is placed on non-accrual status with a resulting charge-off if the loan is not secured by collateral having sufficient liquidation value to repay the loan if the loan is collateral dependent or charged off if deemed uncollectible. For a loan that is not collateral dependent, a reserve may be established for any shortfall in expected cash flows. Charge-offs are recommended by the Chief Credit Officer and approved by the Board of Directors. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. Gains and losses on sales of loans are specifically identified and accounted for in accordance with U.S. GAAP which requires that an entity engaged in mortgage banking activities classify the retained mortgage-backed security or other interest, which resulted from the securitization of a mortgage loan held for sale, based upon its ability and intent to sell or hold these investments. |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation expense is computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the terms of the related leases. |
Other Real Estate Owned and Other Repossessed Assets | Other Real Estate Owned and Other Repossessed Assets Other real estate owned ("OREO") and other repossessed assets, representing property acquired through foreclosure (or deed-in-lieu-of-foreclosure), are carried at fair value less estimated disposal costs of the acquired property. Costs relating to holding the assets are charged to expense. An allowance for OREO or other repossessed assets is established, through charges to expense, to maintain properties at fair value less estimated costs to sell. Operating results of OREO and other repossessed assets, including rental income and operating expenses, are included in other expenses. |
Mortgage Servicing | Mortgage Servicing Lakeland performs various servicing functions on loans owned by others. A fee, usually based on a percentage of the outstanding principal balance of the loan, is received for these services. At December 31, 2019 and 2018 , Lakeland was servicing approximately $18.6 million and $19.9 million , respectively, of loans for others. Lakeland originates certain mortgages under a definitive plan to sell those loans and service the loans owned by the investor. Upon the transfer of the mortgage loans in a sale, Lakeland records the servicing assets retained. Lakeland records mortgage servicing rights and the loans based on relative fair values at the date of origination and evaluates the mortgage servicing rights for impairment at each reporting period. Lakeland also originates loans that it sells to other banks and investors and does not retain the servicing rights. |
Mortgage Servicing Rights | Mortgage Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. As of December 31, 2019 and 2018 , Lakeland had originated mortgage servicing rights of $43,000 and $68,000 , respectively. Under the amortization measurement method, Lakeland subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement as commissions and fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, put presumptively beyond the reach of the transferor and its creditors even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Derivatives | Derivatives Lakeland enters into interest rate swaps (“swaps”) with loan customers to provide a facility to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in offsetting terms to swaps that Lakeland enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities. Lakeland’s swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in swap income. The credit risk associated with derivatives executed with customers is similar as that involved in extending loans and is subject to normal credit policies. Collateral is obtained based on management’s assessment of the customer. The positions of customer derivatives are recorded at fair value and changes in value are included in swap income on the consolidated statement of income. Cash flow hedges are used primarily to minimize the variability in cash flows of assets or liabilities, or forecasted transactions caused by interest rate fluctuations. Changes in the fair value of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income and are reclassified into the line item in the income statement in which the hedged item is recorded in the same period the hedged item affects earnings. Hedge ineffectiveness and gains and losses on the component of a derivative excluded in assessing hedge effectiveness are recorded in the same income statement line item. Further discussion of Lakeland’s financial derivatives is set forth in Note 19 to the Consolidated Financial Statements. |
Earnings Per Share | Earnings Per Share Earnings per share is calculated on the basis of the weighted average number of common shares outstanding during the year. Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. |
Employee Benefit Plans | Employee Benefit Plans The Company has certain employee benefit plans covering substantially all employees. The Company accrues such costs as incurred. We recognize the overfunded or underfunded status of pension and postretirement benefit plans in accordance with U.S. GAAP. Actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations are recognized as a component of Accumulated Other Comprehensive Income, net of tax effects, until they are amortized as a component of net periodic benefit cost. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company reports comprehensive income (loss) in addition to net income from operations. Other comprehensive income (loss) includes items recorded directly in equity such as unrealized gains or losses on securities available for sale as well as unrealized gains (losses) recorded on derivatives and benefit plans. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets Intangible assets resulting from acquisitions under the purchase method of accounting consist of goodwill and other intangible assets. Goodwill is not amortized and is subject to an annual assessment for impairment. The goodwill impairment analysis is generally a two-step test. However, under current accounting guidance, first we may assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under current accounting guidance, we are not required to calculate the fair value of a reporting unit if, based on a qualitative assessment, we determine that it was more likely than not that the unit’s fair value was not less than its carrying amount. For the year ended December 31, 2019 , we elected to perform step one of the two-step goodwill impairment test for our reporting unit. Goodwill is allocated to Lakeland's reporting unit at the date goodwill is actually recorded. If the carrying value of a reporting unit exceeds its estimated fair value, a second step in the analysis is performed to determine the amount of impairment, if any. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying value of a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded equal to the excess amount in the current period earnings. As of December 31, 2019 , the carrying value of goodwill totaled $156.3 million . The Company performed its annual goodwill impairment test, as of November 30, 2019 , and determined that the fair value of the Company’s single reporting unit to be in excess of its carrying value. The Company will test goodwill for impairment between annual test dates if an event occurs or circumstances change that would indicate the fair value of the reporting unit is below its carrying amount. No events have occurred and no circumstances have changed since the annual impairment test date that would indicate the fair value of the reporting unit is below its carrying amount. |
Bank Owned Life Insurance | Bank Owned Life Insurance |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities. The principal types of differences between assets and liabilities for financial statement and tax return purposes are allowance for loan losses, core deposit intangibles, deferred loan fees and deferred compensation. |
Variable Interest Entities | Variable Interest Entities Management has determined that Lakeland Bancorp Capital Trust II and Lakeland Bancorp Capital Trust IV (collectively, “the Trusts”) qualify as variable interest entities. The Trusts issued mandatorily redeemable preferred stock to investors and loaned the proceeds to the Company. The Trusts hold, as their sole asset, subordinated debentures issued by the Company. The Company is not considered the primary beneficiary of the Trusts, therefore the Trusts are not consolidated in the Company’s financial statements. The Company’s maximum exposure to the Trusts is $30.0 million at December 31, 2019 , which is the Company’s liability to the Trusts and includes the Company’s investment in the Trusts. The Federal Reserve has issued guidance on the regulatory capital treatment for the trust preferred securities issued by the Trusts. The rule retains the current maximum percentage of total capital permitted for trust preferred securities at 25% , but enacts other changes to the rules governing trust preferred securities that affect their use as part of the collection of entities known as “restricted core capital elements.” The rule allows bank holding companies to continue to count trust preferred securities as Tier 1 Capital. The Company’s capital ratios continue to be categorized as “well-capitalized” under the regulatory framework for prompt corrective action. Under the Collins Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, any new issuance of trust preferred securities by the Company would not be eligible as regulatory capital. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the acquired assets and liabilities assumed at the date of acquisition for Highlands. (in thousands) Assets Acquired Cash and cash equivalents $ 13,454 Investment securities, available for sale 21,234 Investment securities, held to maturity 1,500 Federal Home Loan Bank stock 1,767 Loans held for sale 1,113 Loans 425,005 Premises and equipment 2,613 Goodwill 19,844 Identifiable intangible assets 3,728 Accrued interest receivable and other assets 6,244 Total assets acquired 496,502 Liabilities assumed Deposits (409,638 ) Other borrowings (27,800 ) Subordinated debt (13,157 ) Other liabilities (2,490 ) Total liabilities assumed (453,085 ) Net assets acquired $ 43,417 |
Schedule of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following is a summary of the credit impaired loans acquired in the Highlands acquisition as of the closing date. (in thousands) Contractually required principal and interest at acquisition $ 22,363 Contractual cash flows not expected to be collected (non-accretable difference) 7,129 Expected cash flows at acquisition 15,234 Interest component of expected cash flows (accretable difference) 1,431 Fair value of acquired loans $ 13,803 The following sets forth the carrying value of the purchased credit impaired loans ("PCI") loans acquired in mergers: December 31, (in thousands) 2019 2018 Acquisition Highlands $ 8,194 $ — Pascack Community Bank 113 157 Harmony Bank 441 495 Total $ 8,748 $ 652 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following tables present the computation of basic and diluted earnings per share for the periods presented. Year Ended December 31, 2019 Income (Numerator) Shares (Denominator) Per Share Amount (in thousands, except per share amounts) Basic earnings per share Net income available to common shareholders $ 70,672 50,477 $ 1.40 Less: earnings allocated to participating securities (596 ) — (0.01 ) Net income available to common shareholders 70,076 50,477 1.39 Effect of dilutive securities Stock options and restricted stock — 165 (0.01 ) Diluted earnings per share Net income available to common shareholders plus assumed conversions $ 70,076 50,642 $ 1.38 Year Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per Share Amount (in thousands, except per share amounts) Basic earnings per share Net income available to common shareholders $ 63,401 47,578 $ 1.33 Less: earnings allocated to participating securities (582 ) — (0.01 ) Net income available to common shareholders 62,819 47,578 1.32 Effect of dilutive securities Stock options and restricted stock — 188 — Diluted earnings per share Net income available to common shareholders plus assumed conversions $ 62,819 47,766 $ 1.32 Year Ended December 31, 2017 Income (Numerator) Shares (Denominator) Per Share Amount (in thousands, except per share amounts) Basic earnings per share Net income available to common shareholders $ 52,580 47,438 $ 1.11 Less: earnings allocated to participating securities (480 ) — (0.01 ) Net income available to common shareholders 52,100 47,438 1.10 Effect of dilutive securities Stock options and restricted stock — 236 (0.01 ) Diluted earnings per share Net income available to common shareholders plus assumed conversions $ 52,100 47,674 $ 1.09 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Reconciliation of Available-for-Sale Securities | The amortized cost, gross unrealized gains and losses and the fair value of the Company’s available for sale and held to maturity investment securities are as follows: December 31, 2019 December 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AVAILABLE FOR SALE U.S. Treasury and U.S. government agencies $ 135,361 $ 722 $ (436 ) $ 135,647 $ 143,495 $ — $ (2,568 ) $ 140,927 Mortgage-backed securities, residential 500,245 3,185 (1,551 ) 501,879 434,208 779 (8,843 ) 426,144 Mortgage-backed securities, multifamily 48,675 633 (123 ) 49,185 21,087 67 (204 ) 20,950 Obligations of states and political subdivisions 58,979 1,077 (35 ) 60,021 45,951 140 (586 ) 45,505 Debt securities 9,000 168 — 9,168 5,000 92 — 5,092 Total $ 752,260 $ 5,785 $ (2,145 ) $ 755,900 $ 649,741 $ 1,078 $ (12,201 ) $ 638,618 |
Reconciliation of Held-to-Maturity Securities | December 31, 2019 December 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value HELD TO MATURITY U.S. government agencies $ 31,335 $ 182 $ (8 ) $ 31,509 $ 33,025 $ — $ (677 ) $ 32,348 Mortgage-backed securities, residential 76,229 734 (176 ) 76,787 75,859 169 (1,838 ) 74,190 Mortgage-backed securities, multifamily 1,750 4 (2 ) 1,752 1,853 — (35 ) 1,818 Obligations of states and political subdivisions 12,161 195 — 12,356 37,909 113 (328 ) 37,694 Debt securities 2,500 — — 2,500 5,000 — (118 ) 4,882 Total $ 123,975 $ 1,115 $ (186 ) $ 124,904 $ 153,646 $ 282 $ (2,996 ) $ 150,932 |
Summary of Contractual Maturities of Investment Securities Classified as Available for Sale and Held to Maturity | The following table lists contractual maturities of investment securities classified as available for sale and held to maturity at December 31, 2019 . Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 29,733 $ 29,786 $ 7,321 $ 7,328 Due after one year through five years 105,745 106,611 31,102 31,425 Due after five years through ten years 52,534 53,385 6,815 6,852 Due after ten years 15,328 15,054 758 760 203,340 204,836 45,996 46,365 Mortgage-backed securities 548,920 551,064 77,979 78,539 Total securities $ 752,260 $ 755,900 $ 123,975 $ 124,904 |
Sales of Securities, Gross Gains and Gross Losses on Sales of Securities | The following table shows proceeds from sales of securities, gross gains and gross losses on sales and calls of securities for the periods indicated: Years Ended December 31, (in thousands) 2019 2018 2017 Sale proceeds $ — $ — $ 4,500 Gross gains — — 2,539 Gross losses — — (15 ) |
Reconciliation of Available-for-Sale and Held-to-Maturity Securities in Continuous Unrealized Loss Position | The following tables indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018 : December 31, 2019 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses AVAILABLE FOR SALE U.S. Treasury and U.S. government agencies $ 11,625 $ 39 $ 41,617 $ 397 11 $ 53,242 $ 436 Mortgage-backed securities, residential 125,782 561 99,489 990 86 225,271 1,551 Mortgage-backed securities, multifamily 7,651 118 4,878 5 3 12,529 123 Obligations of states and political subdivisions 373 2 6,559 33 5 6,932 35 Total $ 145,431 $ 720 $ 152,543 $ 1,425 105 $ 297,974 $ 2,145 HELD TO MATURITY U.S. government agencies $ 3,195 $ 6 $ 5,102 $ 2 2 $ 8,297 $ 8 Mortgage-backed securities, residential 12,462 46 10,592 130 16 23,054 176 Mortgage-backed securities, multifamily — — 998 2 1 998 2 Total $ 15,657 $ 52 $ 16,692 $ 134 19 $ 32,349 $ 186 December 31, 2018 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Number of securities Fair Value Unrealized Losses AVAILABLE FOR SALE U.S. Treasury and U.S. government agencies $ 20,588 $ 216 $ 120,338 $ 2,352 27 $ 140,926 $ 2,568 Mortgage-backed securities, residential 10,119 58 316,851 8,785 139 326,970 8,843 Mortgage-backed securities, multifamily 1,977 2 12,911 202 4 14,888 204 Obligations of states and political subdivisions 1,289 2 26,522 584 50 27,811 586 Total $ 33,973 $ 278 $ 476,622 $ 11,923 220 $ 510,595 $ 12,201 HELD TO MATURITY U.S. government agencies $ — $ — $ 32,348 $ 677 6 $ 32,348 $ 677 Mortgage-backed securities, residential 8,325 59 53,761 1,779 36 62,086 1,838 Mortgage-backed securities, multifamily — — 1,818 35 2 1,818 35 Obligations of states and political subdivisions 1,764 8 15,580 320 27 17,344 328 Debt securities 3,882 118 — — 1 3,882 118 Total $ 13,971 $ 185 $ 103,507 $ 2,811 72 $ 117,478 $ 2,996 |
Loans and Other Real Estate (Ta
Loans and Other Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Composition of Lakeland`s Loan and Lease Portfolio | The following sets forth the composition of Lakeland’s loan portfolio: December 31, (in thousands) 2019 2018 Commercial, secured by real estate $ 3,589,593 $ 3,057,779 Commercial, industrial and other 431,934 336,735 Equipment finance 111,076 87,925 Real estate - residential mortgage 335,191 329,854 Real estate - construction 335,169 319,545 Home equity and consumer 337,977 328,609 Total loans 5,140,940 4,460,447 Less deferred fees (3,117 ) (3,714 ) Loans, net of deferred fees $ 5,137,823 $ 4,456,733 |
Schedule of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following is a summary of the credit impaired loans acquired in the Highlands acquisition as of the closing date. (in thousands) Contractually required principal and interest at acquisition $ 22,363 Contractual cash flows not expected to be collected (non-accretable difference) 7,129 Expected cash flows at acquisition 15,234 Interest component of expected cash flows (accretable difference) 1,431 Fair value of acquired loans $ 13,803 The following sets forth the carrying value of the purchased credit impaired loans ("PCI") loans acquired in mergers: December 31, (in thousands) 2019 2018 Acquisition Highlands $ 8,194 $ — Pascack Community Bank 113 157 Harmony Bank 441 495 Total $ 8,748 $ 652 |
Schedule of Changes in Accretable Yield | The following table presents changes in the accretable yield for PCI loans: Years Ended December 31, (in thousands) 2019 2018 Balance, beginning of period $ 81 $ 129 Acquisitions 1,431 — Accretion (1,236 ) (182 ) Net reclassification non-accretable difference 87 134 Balance, end of period $ 363 $ 81 |
Lakeland's Non-Accrual Loans and Leases and Its Accruing Troubled Debt Restructurings (TDRs) | The following schedule sets forth certain information regarding Lakeland’s non-accrual loans, its other real estate owned and other repossessed assets, and accruing troubled debt restructurings (“TDRs”): At December 31, (in thousands) 2019 2018 Commercial, secured by real estate $ 12,314 $ 7,192 Commercial, industrial and other 1,539 1,019 Equipment finance 284 501 Real estate - residential mortgage 3,428 1,986 Real estate - construction 967 — Home equity and consumer 2,606 1,432 Total non-accrual loans 21,138 12,130 Other real estate and other repossessed assets 563 830 Total non-performing assets $ 21,701 $ 12,960 Troubled debt restructurings, still accruing $ 5,650 $ 9,293 |
Age Analysis of Past Due Loans, Segregated by Class of Loans | An age analysis of past due loans, excluding PCI loans which are accounted for on a pool basis, segregated by class of loans as of December 31, 2019 and 2018 , is as follows: December 31, 2019 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Total Past Due Current Total Loans Recorded Investment Greater than 89 Days and Still Accruing (in thousands) Commercial, secured by real estate $ 3,578 $ 1,200 $ 9,702 $ 14,480 $ 3,569,008 $ 3,583,488 $ — Commercial, industrial and other 353 71 1,064 1,488 429,502 430,990 — Equipment finance 166 80 284 530 110,546 111,076 — Real estate - residential mortgage 1,138 251 2,075 3,464 331,337 334,801 — Real estate - construction — — 967 967 333,418 334,385 — Home equity and consumer 1,573 287 1,533 3,393 334,059 337,452 — $ 6,808 $ 1,889 $ 15,625 $ 24,322 $ 5,107,870 $ 5,132,192 $ — December 31, 2018 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Total Past Due Current Total Loans Recorded Investment Greater than 89 Days and Still Accruing (in thousands) Commercial, secured by real estate $ 1,477 $ 639 $ 2,080 $ 4,196 $ 3,052,931 $ 3,057,127 $ — Commercial, industrial and other 173 243 750 1,166 335,569 336,735 — Equipment finance 533 13 501 1,047 86,878 87,925 — Real estate - residential mortgage 743 111 1,776 2,630 327,224 329,854 — Real estate - construction — — — — 319,545 319,545 — Home equity and consumer 1,917 216 850 2,983 325,626 328,609 — $ 4,843 $ 1,222 $ 5,957 $ 12,022 $ 4,447,773 $ 4,459,795 $ — |
Impaired Loans with and without Specific Allowances | The following tables represent the Company's impaired loans at December 31, 2019 , 2018 and 2017 . December 31, 2019 Recorded Investment in Impaired Loans Contractual Unpaid Principal Balance Related Allowance Interest Income Recognized Average Investment in Impaired Loans (in thousands) Loans without related allowance: Commercial, secured by real estate $ 12,478 $ 12,630 $ — $ 164 $ 10,386 Commercial, industrial and other 1,391 1,381 — 16 1,334 Equipment finance — — — — — Real estate - residential mortgage 803 815 — — 233 Real estate - construction 1,663 1,661 — 2 82 Home equity and consumer — — — — — Loans with related allowance: Commercial, secured by real estate 3,470 3,706 228 190 4,554 Commercial, industrial and other 113 113 5 6 113 Equipment finance 23 23 10 — 21 Real estate - residential mortgage 1,512 1,682 104 19 926 Real estate - construction — — — — — Home equity and consumer 671 765 5 29 693 Total: Commercial, secured by real estate $ 15,948 $ 16,336 $ 228 $ 354 $ 14,940 Commercial, industrial and other 1,504 1,494 5 22 1,447 Equipment finance 23 23 10 — 21 Real estate - residential mortgage 2,315 2,497 104 19 1,159 Real estate - construction 1,663 1,661 — 2 82 Home equity and consumer 671 765 5 29 693 $ 22,124 $ 22,776 $ 352 $ 426 $ 18,342 December 31, 2018 Recorded Investment in Impaired Loans Contractual Unpaid Principal Balance Related Allowance Interest Income Recognized Average Investment in Impaired Loans (in thousands) Loans without related allowance: Commercial, secured by real estate $ 9,284 $ 9,829 $ — $ 188 $ 7,369 Commercial, industrial and other 1,151 1,449 — 19 1,834 Equipment finance 301 597 — — 376 Real estate - residential mortgage — — — 4 242 Real estate - construction — — — — 726 Home equity and consumer — — — — — Loans with related allowance: Commercial, secured by real estate 7,270 7,597 307 317 7,594 Commercial, industrial and other 209 209 7 12 209 Equipment finance 30 30 14 — 19 Real estate - residential mortgage 730 884 4 20 745 Real estate - construction — — — — — Home equity and consumer 727 765 6 32 898 Total: Commercial, secured by real estate $ 16,554 $ 17,426 $ 307 $ 505 $ 14,963 Commercial, industrial and other 1,360 1,658 7 31 2,043 Equipment finance 331 627 14 — 395 Real estate - residential mortgage 730 884 4 24 987 Real estate - construction — — — — 726 Home equity and consumer 727 765 6 32 898 $ 19,702 $ 21,360 $ 338 $ 592 $ 20,012 December 31, 2017 Recorded Investment in Impaired Loans Contractual Unpaid Principal Balance Related Allowance Interest Income Recognized Average Investment in Impaired Loans (in thousands) Loans without related allowance: Commercial, secured by real estate $ 12,155 $ 12,497 $ — $ 366 $ 12,774 Commercial, industrial and other 618 618 — 25 618 Equipment finance — — — — — Real estate - residential mortgage 963 980 — 15 996 Real estate - construction 1,471 1,471 — — 1,471 Home equity and consumer — — — — 6 Loans with related allowance: Commercial, secured by real estate 5,381 5,721 454 206 5,029 Commercial, industrial and other 164 164 9 14 283 Equipment finance 65 65 30 — 29 Real estate - residential mortgage 781 919 4 27 940 Real estate - construction — — — — — Home equity and consumer 993 1,026 8 52 1,090 Total: Commercial, secured by real estate $ 17,536 $ 18,218 $ 454 $ 572 $ 17,803 Commercial, industrial and other 782 782 9 39 901 Equipment finance 65 65 30 — 29 Real estate - residential mortgage 1,744 1,899 4 42 1,936 Real estate - construction 1,471 1,471 — — 1,471 Home equity and consumer 993 1,026 8 52 1,096 $ 22,591 $ 23,461 $ 505 $ 705 $ 23,236 |
Lakeland's Commercial Loan Portfolio | The following table shows Lakeland’s commercial loan portfolio as of December 31, 2019 and 2018 , by the risk ratings discussed above: December 31, 2019 Commercial, Secured by Real Estate Commercial, Industrial and Other (in thousands) Real Estate - Construction Total Commercial Loans RISK RATING 1 $ — $ 898 $ — $ 898 2 — 17,988 — 17,988 3 74,072 39,112 — 113,184 4 965,825 107,376 17,941 1,091,142 5 2,332,863 215,975 307,824 2,856,662 5W - Watch 100,347 30,192 6,959 137,498 6 - Other assets especially mentioned 55,438 11,328 — 66,766 7 - Substandard 61,048 9,065 2,445 72,558 8 - Doubtful — — — — 9 - Loss — — — — Total $ 3,589,593 $ 431,934 $ 335,169 $ 4,356,696 December 31, 2018 Commercial, Secured by Real Estate Commercial, Industrial and Other Total Commercial Loans (in thousands) Real Estate - Construction RISK RATING 1 $ — $ 1,119 $ — $ 1,119 2 — 18,462 — 18,462 3 69,995 36,367 — 106,362 4 933,577 91,145 17,375 1,042,097 5 1,910,423 168,474 297,625 2,376,522 5W - Watch 61,626 7,798 3,493 72,917 6 - Other assets especially mentioned 38,844 2,033 — 40,877 7 - Substandard 43,314 11,337 1,052 55,703 8 - Doubtful — — — — 9 - Loss — — — — Total $ 3,057,779 $ 336,735 $ 319,545 $ 3,714,059 |
Allowance for Loan and Lease Losses by Portfolio Segment and Related Recorded Investment in Loans and Leases | The following table details activity in the allowance for loan losses by portfolio segment and the related recorded investment in loans for the years ended December 31, 2019 and 2018 : December 31, 2019 Commercial, Secured by Real Estate Commercial, Industrial and Other Equipment Finance Real Estate - Residential Mortgage Real Estate - Construction Home Equity and Consumer Total (in thousands) Beginning balance $ 27,881 $ 1,742 $ 987 $ 1,566 $ 3,015 $ 2,497 $ 37,688 Charge-offs (544 ) (645 ) (414 ) (50 ) — (283 ) (1,936 ) Recoveries 251 1,100 332 66 126 246 2,121 Provision 1,362 1,092 52 143 (469 ) (50 ) 2,130 Ending balance $ 28,950 $ 3,289 $ 957 $ 1,725 $ 2,672 $ 2,410 $ 40,003 Allowance for Loan Losses Ending balance: Individually evaluated for impairment $ 228 $ 5 $ 10 $ 104 $ — $ 5 $ 352 Ending balance: Collectively evaluated for impairment 28,722 3,284 947 1,621 2,672 2,405 39,651 Ending balance $ 28,950 $ 3,289 $ 957 $ 1,725 $ 2,672 $ 2,410 $ 40,003 Loans Ending balance: Individually evaluated for impairment $ 15,948 $ 1,504 $ 23 $ 2,315 $ 1,663 $ 671 $ 22,124 Ending balance: Collectively evaluated for impairment 3,567,540 429,486 111,053 332,486 332,722 336,781 5,110,068 Ending balance: Loans acquired with deteriorated credit quality 6,105 944 — 390 784 525 8,748 Ending balance (1) $ 3,589,593 $ 431,934 $ 111,076 $ 335,191 $ 335,169 $ 337,977 $ 5,140,940 (1) Excludes deferred fees December 31, 2018 Commercial, Secured by Real Estate Commercial, Industrial and Other Equipment Finance Real Estate - Residential Mortgage Real Estate - Construction Home Equity and Consumer Total (in thousands) Beginning balance $ 25,704 $ 2,313 $ 630 $ 1,557 $ 2,731 $ 2,520 $ 35,455 Charge-offs (421 ) (1,452 ) (507 ) (131 ) (248 ) (588 ) (3,347 ) Recoveries 468 317 23 10 17 332 1,167 Provision 2,130 564 841 130 515 233 4,413 Ending balance $ 27,881 $ 1,742 $ 987 $ 1,566 $ 3,015 $ 2,497 $ 37,688 Allowance for Loan Losses Ending balance: Individually evaluated for impairment $ 307 $ 7 $ 14 $ 4 $ — $ 6 $ 338 Ending balance: Collectively evaluated for impairment 27,574 1,735 973 1,562 3,015 2,491 37,350 Ending balance $ 27,881 $ 1,742 $ 987 $ 1,566 $ 3,015 $ 2,497 $ 37,688 Loans Ending balance: Individually evaluated for impairment $ 16,554 $ 1,360 $ 331 $ 730 $ — $ 727 $ 19,702 Ending balance: Collectively evaluated for impairment 3,040,573 335,375 87,594 329,124 319,545 327,882 4,440,093 Ending balance: Loans acquired with deteriorated credit quality 652 — — — — — 652 Ending balance (1) $ 3,057,779 $ 336,735 $ 87,925 $ 329,854 $ 319,545 $ 328,609 $ 4,460,447 (1) Excludes deferred fees |
Summary of Restructured Loans | The following table summarizes loans that have been restructured during the periods presented: For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 (dollars in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Commercial, secured by real estate — $ — $ — 5 $ 3,348 $ 3,348 Commercial, industrial and other — — — 1 950 950 Equipment finance — — — 1 15 15 Real estate - construction 1 694 694 — — — Home equity and consumer 2 83 83 — — — 3 $ 777 $ 777 7 $ 4,313 $ 4,313 |
Summary of Restructured Loans within Previous 12 Months that have Subsequently Defaulted | The following table presents loans modified as TDRs within the previous twelve months from December 31, 2019 and 2018 that have defaulted during the subsequent twelve months: For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 (dollars in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial, secured by real estate — $ — 1 $ 171 Home equity and consumer 2 83 — — 2 $ 83 1 $ 171 |
Summary of Future Minimum Lease Payments of Lease Receivables | Future minimum payments of equipment finance receivables at December 31, 2019 are expected as follows: (in thousands) 2020 $ 36,290 2021 30,448 2022 23,029 2023 14,767 2024 5,616 Thereafter 926 $ 111,076 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | Estimated December 31, Useful Lives 2019 2018 (in thousands) Land Indefinite $ 10,356 $ 10,471 Buildings and building improvements 10 to 50 years 42,481 47,006 Leasehold improvements 10 to 25 years 14,260 12,880 Furniture, fixtures and equipment 2 to 30 years 31,728 27,858 98,825 98,215 Less accumulated depreciation and amortization 51,217 49,040 $ 47,608 $ 49,175 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Summary of Deposits | The following table sets forth the details of total deposits: (dollars in thousands) December 31, 2019 December 31, 2018 Noninterest-bearing demand $ 1,124,121 21.23 % $ 950,218 20.56 % Interest-bearing checking 1,797,504 33.96 % 1,711,507 37.04 % Money market 1,003,149 18.95 % 715,620 15.49 % Savings 498,201 9.41 % 486,287 10.52 % Certificates of deposit 870,804 16.45 % 757,038 16.39 % Total Deposits $ 5,293,779 100.00 % $ 4,620,670 100.00 % |
Schedule of Maturities of Certificates of Deposit | At December 31, 2019 , the schedule of maturities of certificates of deposit is as follows: (in thousands) 2020 $ 715,061 2021 103,285 2022 42,891 2023 8,215 2024 1,264 2025 88 $ 870,804 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | The table below presents other information on the Company's operating leases for the year ended December 31, 2019 : (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,654 Right-of-use asset obtained in exchange for new operating lease liabilities 1,748 (in thousands) Year Ended December 31, 2019 Operating lease cost $ 3,293 Short-term lease cost — Variable lease cost 133 Sublease income (122 ) Net lease cost $ 3,304 |
Maturity Analysis of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability at December 31, 2019 is as follows: (in thousands) Within one year $ 3,300 After one year but within two years 3,057 After two years but within three years 2,626 After three years but within four years 2,291 After four years but within five years 2,174 After 5 years 10,562 Total undiscounted cash flows 24,010 Discount on cash flows (4,196 ) Total lease liability $ 19,814 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of FHLB Debt Matures | The schedule of maturities of advances is as follows: (in thousands) 2020 $ 55,881 2021 44,972 2022 40,526 2023 24,437 $ 165,816 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Taxes | The components of income taxes are as follows: Years Ended December 31, (in thousands) 2019 2018 2017 Current tax provision $ 20,418 $ 30,459 $ 10,565 Deferred tax expense (benefit) 2,854 (13,571 ) 16,904 Total provision for income taxes $ 23,272 $ 16,888 $ 27,469 |
Summary of Income Tax Provision Reconciled to Income Taxes that Computed at Statutory Federal Rate | The income tax provision reconciled to the income taxes that would have been computed at the statutory federal rate of 21% for 2019 and 2018 and 35% for 2017 is as follows: Years Ended December 31, (in thousands) 2019 2018 2017 Federal income tax, at statutory rates $ 19,728 $ 16,861 $ 28,017 Increase (deduction) in taxes resulting from: Tax-exempt income (952 ) (1,096 ) (1,652 ) Excise tax on real estate investment trust ("REIT") dividend — — 1,945 Adjustment to net deferred tax asset for Tax Cuts and Jobs Act — — (1,343 ) State income tax, net of federal income tax effect 4,322 1,880 931 Adjustment to net deferred tax asset for change in NJ tax law — (943 ) — Excess tax benefits from employee share-based payments (189 ) (318 ) (587 ) Other, net 363 504 158 Provision for income taxes $ 23,272 $ 16,888 $ 27,469 |
Summary of Net Deferred Tax Asset | The net deferred tax asset consisted of the following: December 31, (in thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 11,937 $ 11,651 Stock based compensation plans 958 865 Purchase accounting fair market value adjustments 3,632 1,192 Non-accrued interest 381 256 Deferred compensation 2,444 2,142 Depreciation and amortization — 630 Other-than-temporary impairment loss on investment securities 41 59 Federal net operating loss carryforward 875 — Unrealized loss on pension plans 2 — Unrealized losses on securities available for sale — 3,162 Other, net 594 585 Gross deferred tax assets 20,864 20,542 Deferred tax liabilities: Core deposit intangible from acquired companies 1,235 516 Undistributed income from subsidiary not consolidated for tax return purposes (REIT) 678 149 Deferred loan costs 1,461 1,418 Depreciation and amortization 750 — Prepaid expenses 443 459 Deferred gain on securities 162 166 Unfunded pension benefits — 17 Loss on equity securities 65 36 Unrealized gain on investment securities 884 — Unrealized gains on hedging derivative 80 322 Other 301 270 Gross deferred tax liabilities 6,059 3,353 Net deferred tax assets $ 14,805 $ 17,189 |
Directors Retirement Plan (Tabl
Directors Retirement Plan (Tables) - Director | 12 Months Ended |
Dec. 31, 2019 | |
Status of Directors Retirement Plan | The measurement date for the accumulated benefit obligation is December 31 of the years presented. December 31, (in thousands) 2019 2018 Accrued plan cost included in other liabilities $ 646 $ 604 Amount not recognized as component of net postretirement benefit cost Recognized in accumulated other comprehensive income Net actuarial loss (gain) $ 64 $ (29 ) Unrecognized prior service cost — — Amounts not recognized as a component of net postretirement benefit $ 64 $ (29 ) |
Components of Net Periodic Pension Cost | Years Ended December 31, (in thousands) 2019 2018 2017 Service cost $ 14 $ 15 $ 21 Interest cost 22 20 23 Amortization of prior service cost — — 3 Amortization of gain (2 ) — — $ 34 $ 35 $ 47 |
Benefits Expected to be Paid | The directors' retirement plan holds no plan assets. The benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter are as follows: (in thousands) 2020 $ 63 2021 37 2022 38 2023 38 2024 52 2025-2029 210 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Option Activity under the Company's Stock Option Plans | A summary of the status of the Company’s option plans as of December 31, 2019 and the changes during the year ending on that date is represented below. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding, beginning of year 67,488 $ 8.28 2.86 $ 440,483 Exercised (35,782 ) 8.75 Outstanding, end of year 31,706 $ 7.76 0.58 $ 305,120 Options exercisable at year-end 31,706 $ 7.76 0.58 $ 305,120 |
Summary of Company's Restricted Stock | Information regarding the Company’s RSUs and changes during the year ended December 31, 2019 is as follows: Number of RSUs Weighted Average Price Outstanding, beginning of year 299,347 $ 16.60 Granted 149,559 16.54 Vested (138,578 ) 13.12 Forfeited (9,699 ) 18.02 Outstanding, end of year 300,629 $ 18.13 Information regarding the Company’s restricted stock for the year ended December 31, 2019 is as follows: Number of Shares Weighted Average Price Outstanding, beginning of year 11,701 $ 20.18 Granted 13,052 15.96 Vested (11,643 ) 20.24 Outstanding, end of year 13,110 $ 15.93 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table sets forth the components of noninterest income for the years ended December 31, 2019 , 2018 and 2017 : (in thousands) 2019 2018 2017 Deposit Related Fees and Charges Debit card interchange income $ 5,719 $ 5,150 $ 4,474 Overdraft charges 4,052 3,938 4,656 ATM service charges 826 830 808 Demand deposit fees and charges 501 540 679 Savings service charges 107 126 123 Total 11,205 10,584 10,740 Commissions and Fees Loan fees 1,510 1,264 1,136 Wire transfer charges 1,223 1,093 1,005 Investment services income 1,651 1,314 1,045 Merchant fees 813 784 718 Commissions from sales of checks 407 434 457 Safe deposit income 364 371 269 Other income 250 264 202 Total 6,218 5,524 4,832 Gains on Sale of Loans 1,660 1,329 1,836 Other Income Gains on customer swap transactions 3,231 1,992 982 Title insurance income 183 195 200 Other income 1,463 295 518 Total 4,877 2,482 1,700 Revenue not from contracts with customers 2,836 2,391 6,327 Total Noninterest Income $ 26,796 $ 22,310 $ 25,435 Timing of Revenue Recognition Products and services transferred at a point in time $ 23,885 $ 19,844 $ 19,040 Products and services transferred over time 75 75 68 Revenue not from contracts with customers 2,836 2,391 6,327 Total Noninterest Income $ 26,796 $ 22,310 $ 25,435 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Components of Other Comprehensive Income | The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented. Year Ended December 31, 2019 (in thousands) Before Tax Amount Tax Benefit (Expense) Net of Tax Amount Unrealized holding gains on securities available for sale arising during the period $ 14,763 $ (4,045 ) $ 10,718 Unrealized losses on derivatives (828 ) 242 (586 ) Change in pension liability, net (64 ) 18 (46 ) Other comprehensive income $ 13,871 $ (3,785 ) $ 10,086 Year Ended December 31, 2018 (in thousands) Before Tax Amount Tax Benefit (Expense) Net of Tax Amount Unrealized holding gains on securities available for sale arising during the period $ (4,241 ) $ 734 $ (3,507 ) Unrealized gains on derivatives 9 32 41 Change in pension liability, net 29 (9 ) 20 Other comprehensive loss $ (4,203 ) $ 757 $ (3,446 ) Year Ended December 31, 2017 (in thousands) Before Tax Amount Tax Benefit (Expense) Net of Tax Amount Unrealized losses on securities available for sale Unrealized holding losses arising during period $ (1,406 ) $ 503 $ (903 ) Reclassification adjustment for securities gains included in net income (2,524 ) 884 (1,640 ) Net unrealized losses on available for sale securities (3,930 ) 1,387 (2,543 ) Unrealized gains on derivatives 57 (20 ) 37 Change in pension liability, net (27 ) 11 (16 ) Other comprehensive loss $ (3,900 ) $ 1,378 $ (2,522 ) |
Summary of Changes in Accumulated Other Comprehensive Income | (in thousands, net of tax) Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Derivatives Pension Items Total Balance at of January 1, 2017 $ (117 ) $ 672 $ 38 $ 593 Other comprehensive income (loss) before classifications (903 ) 37 (16 ) (882 ) Amounts reclassified from accumulated other comprehensive income (1,640 ) — — (1,640 ) Net current period other comprehensive income (loss) (2,543 ) 37 (16 ) (2,522 ) Adjustment for implementation of ASU 2018-02 (572 ) 153 (1 ) (420 ) Balance at December 31, 2017 $ (3,232 ) $ 862 $ 21 $ (2,349 ) Adjustment for implementation of ASU 2016-01 (2,043 ) — — (2,043 ) Adjusted balance as of January 1, 2018 (5,275 ) 862 21 (4,392 ) Net current period other comprehensive income (loss) (3,507 ) 41 20 (3,446 ) Balance at December 31, 2018 $ (8,782 ) $ 903 $ 41 $ (7,838 ) Net current period other comprehensive income (loss) 10,718 (586 ) (46 ) 10,086 Balance at December 31, 2019 $ 1,936 $ 317 $ (5 ) $ 2,248 |
Fair Value Measurement and Fa_2
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value (in thousands) Assets: Investment securities, available for sale U.S. Treasury and government agencies $ 12,580 $ 123,067 $ — $ 135,647 Mortgage-backed securities — 551,064 — 551,064 Obligations of states and political subdivisions — 60,021 — 60,021 Corporate debt securities — 9,168 — 9,168 Total securities available for sale 12,580 743,320 — 755,900 Equity securities, at fair value 1,735 14,738 — 16,473 Derivative assets — 27,123 — 27,123 Total Assets $ 14,315 $ 785,181 $ — $ 799,496 Liabilities: Derivative liabilities $ — $ 26,852 $ — $ 26,852 Total Liabilities $ — $ 26,852 $ — $ 26,852 December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value (in thousands) Assets: Investment securities, available for sale U.S. Treasury and government agencies $ 4,920 $ 136,007 $ — $ 140,927 Mortgage-backed securities — 447,094 — 447,094 Obligations of states and political subdivisions — 45,505 — 45,505 Corporate debt securities — 5,092 — 5,092 Total securities available for sale 4,920 633,698 — 638,618 Equity securities, at fair value 2,731 13,190 — 15,921 Derivative assets — 12,135 — 12,135 Total Assets $ 7,651 $ 659,023 $ — $ 666,674 Liabilities: Derivative liabilities $ — $ 11,036 $ — $ 11,036 Total Liabilities $ — $ 11,036 $ — $ 11,036 |
Fair Value of Financial Assets Measured on Non-recurring Basis | The following table sets forth the Company’s financial assets subject to fair value adjustments (impairment) on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: December 31, 2019 (Level 1) (Level 2) (Level 3) Total Fair Value (in thousands) Assets: Impaired loans $ — $ — $ 5,789 $ 5,789 Loans held for sale — 1,743 — 1,743 Other real estate owned and other repossessed assets — — 563 563 December 31, 2018 (Level 1) (Level 2) (Level 3) Total Fair Value (in thousands) Assets: Impaired loans $ — $ — $ 8,966 $ 8,966 Loans held for sale — 1,113 — 1,113 Other real estate owned and other repossessed assets — — 830 830 |
Carrying Values and Fair Values of Company's Financial Instruments | The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2019 and December 31, 2018 : December 31, 2019 Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Investment securities held to maturity $ 123,975 $ 124,904 $ — $ 121,503 $ 3,401 Federal Home Loan and other membership bank stock 22,505 22,505 — 22,505 — Loans, net 5,097,820 5,194,065 — — 5,194,065 Financial Liabilities: Certificates of deposit 870,804 871,418 — 871,418 — Other borrowings 165,816 166,505 — 166,505 — Subordinated debentures 118,220 117,992 — — 117,992 December 31, 2018 Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Investment securities held to maturity $ 153,646 $ 150,932 $ — $ 143,913 $ 7,019 Federal Home Loan and other membership bank stock 13,301 13,301 — 13,301 — Loans, net 4,419,045 4,341,477 — — 4,341,477 Financial Liabilities: Certificates of deposit 757,038 750,801 — 750,801 — Other borrowings 181,118 176,921 — 176,921 — Subordinated debentures 105,027 102,497 — — 102,497 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary Information Regarding Derivatives | The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands): December 31, 2019 Notional Amount Average Maturity (Years) Weighted Average Rate Fixed Weighted Average Variable Rate Fair Value Classified in Other Assets: Third party interest rate swaps $ 85,796 9.0 3.51 % 1 Mo. LIBOR + 1.95 $ 947 Customer interest rate swaps 473,273 9.9 4.32 % 1 Mo. LIBOR + 1.93 25,905 Interest rate swap (cash flow hedge) 30,000 1.5 1.10 % 3 Mo. LIBOR 271 Classified in Other Liabilities: Customer interest rate swaps $ 85,796 9.0 3.51 % 1 Mo. LIBOR + 1.95 $ (947 ) Third party interest rate swaps 473,273 9.9 4.32 % 1 Mo. LIBOR + 1.93 (25,905 ) |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Summary of Capital Ratios | As of December 31, 2019 and 2018 , the Company and Lakeland have the following capital ratios based on the then current regulations: (dollars in thousands) Actual For Capital Adequacy Purposes with Capital Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Company $ 721,741 13.40 % > $ 565,504 > 10.50% N/A N/A Lakeland 681,689 12.67 % 564,981 10.50 % > $ 538,077 > 10.00% Tier 1 capital (to risk-weighted assets) Company $ 593,539 11.02 % > $ 457,789 > 8.50% N/A N/A Lakeland 639,908 11.89 % 457,365 8.50 % > $ 430,462 > 8.00% Common equity Tier 1 capital (to risk-weighted assets) Company $ 563,539 10.46 % > $ 377,003 > 7.00% N/A N/A Lakeland 639,908 11.89 % 376,654 7.00 % > $ 349,750 > 6.50% Tier 1 capital (to average assets) Company $ 593,539 9.41 % > $ 252,234 > 4.00% N/A N/A Lakeland 639,908 10.16 % 252,039 4.00 % > $ 315,048 > 5.00% (dollars in thousands) Actual For Capital Adequacy Purposes with Capital Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Company $ 637,377 13.71 % > $ 458,952 > 9.875% N/A N/A Lakeland 605,560 13.06 % 457,912 9.875 % > $ 463,708 > 10.00% Tier 1 capital (to risk-weighted assets) Company $ 523,577 11.27 % > $ 366,000 > 7.875% N/A N/A Lakeland 565,549 12.20 % 365,170 7.875 % > $ 370,967 > 8.00% Common equity Tier 1 capital (to risk-weighted assets) Company $ 493,577 10.62 % > $ 296,285 > 6.375% N/A N/A Lakeland 565,549 12.20 % 295,614 6.375 % > $ 301,410 > 6.50% Tier 1 capital (to average assets) Company $ 523,577 9.39 % > $ 222,982 > 4.00% N/A N/A Lakeland 565,549 10.17 % 222,539 4.00 % > $ 278,173 > 5.00% |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Estimated Future Amortization Expense | The estimated future amortization expense for each of the succeeding five years ended December 31 is as follows: (in thousands) 2020 $ 1,025 2021 868 2022 711 2023 554 2024 425 |
Condensed Financial Informati_2
Condensed Financial Information - Parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, (in thousands) 2019 2018 ASSETS Cash and due from banks $ 29,981 $ 23,285 Equity securities 1,735 2,743 Investment securities, held to maturity 1,000 1,000 Investment in subsidiaries 802,079 695,571 Other assets 9,828 7,182 TOTAL ASSETS $ 844,623 $ 729,781 LIABILITIES AND STOCKHOLDERS’ EQUITY Other liabilities $ 1,140 $ 1,015 Subordinated debentures 118,220 105,027 Total stockholders’ equity 725,263 623,739 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 844,623 $ 729,781 |
Condensed Statements of Operations | CONDENSED STATEMENTS OF INCOME Years Ended December 31, (in thousands) 2019 2018 2017 INCOME Dividends from subsidiaries $ 36,905 $ 30,589 $ 26,665 Other income (loss) 408 (125 ) 2,750 TOTAL INCOME 37,313 30,464 29,415 EXPENSE Interest on subordinated debentures 5,983 5,141 5,091 Noninterest expenses 464 506 377 TOTAL EXPENSE 6,447 5,647 5,468 Income before benefit for income taxes 30,866 24,817 23,947 Income taxes benefit (1,646 ) (1,130 ) (2,018 ) Income before equity in undistributed income of subsidiaries 32,512 25,947 25,965 Equity in undistributed income of subsidiaries 38,160 37,454 26,615 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 70,672 $ 63,401 $ 52,580 |
Condensed Statements of Cash Flows | Years Ended December 31, (in thousands) 2019 2018 2017 INCOME Dividends from subsidiaries $ 36,905 $ 30,589 $ 26,665 Other income (loss) 408 (125 ) 2,750 TOTAL INCOME 37,313 30,464 29,415 EXPENSE Interest on subordinated debentures 5,983 5,141 5,091 Noninterest expenses 464 506 377 TOTAL EXPENSE 6,447 5,647 5,468 Income before benefit for income taxes 30,866 24,817 23,947 Income taxes benefit (1,646 ) (1,130 ) (2,018 ) Income before equity in undistributed income of subsidiaries 32,512 25,947 25,965 Equity in undistributed income of subsidiaries 38,160 37,454 26,615 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 70,672 $ 63,401 $ 52,580 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (in thousands) 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 70,672 $ 63,401 $ 52,580 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Gain on securities — — (2,539 ) Amortization of subordinated debt costs 36 125 118 Change in market value of equity securities (197 ) 338 — Excess tax benefits 189 318 587 Increase in other assets (1,873 ) (1,446 ) (1,927 ) Increase (decrease) in other liabilities 121 (6 ) (17 ) Equity in undistributed income of subsidiaries (38,160 ) (37,454 ) (26,615 ) NET CASH PROVIDED BY OPERATING ACTIVITIES 30,788 25,276 22,187 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of available for sale securities — — (79 ) Purchases of equity securities (82 ) (78 ) — Proceeds from sale of available for sale securities — — 3,217 Proceeds from sale of equity securities 1,287 2,155 — Net cash received from business acquisition 24 — — NET CASH PROVIDED BY INVESTING ACTIVITIES 1,229 2,077 3,138 CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid on common stock (24,919 ) (21,307 ) (18,853 ) Retirement of restricted stock (715 ) (763 ) (773 ) Exercise of stock options 313 307 321 NET CASH USED IN FINANCING ACTIVITIES (25,321 ) (21,763 ) (19,305 ) Net increase in cash and cash equivalents 6,696 5,590 6,020 Cash and cash equivalents, beginning of year 23,285 17,695 11,675 CASH AND CASH EQUIVALENTS, END OF YEAR $ 29,981 $ 23,285 $ 17,695 |
Summary of Accounting Policie_2
Summary of Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |||
Number of operating segments | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
Principal and interest default period | 90 days | ||
Residential mortgage loans are placed on non-accrual status at the time principal and interest period | 90 days | ||
Period of principal and interest payments in arrears for open-end consumer loans are reviewed for charge-off | 4 months | ||
Non-accrual asset satisfactory payments period | 6 months | ||
Non-accrual loans with recorded investment, minimum amount | $ 500,000 | ||
Maximum amount of individual impaired commercial loans that places into homogeneous pool for collective evaluation | 500,000 | ||
Amount of loans sold that are being serviced for others | 18,600,000 | $ 19,900,000 | |
Originated mortgage servicing rights | 43,000 | 68,000 | |
Goodwill | 156,277,000 | 136,433,000 | |
Bank owned life insurance | 112,392,000 | 110,052,000 | |
Income on bank owned life insurance | 2,740,000 | $ 3,256,000 | $ 2,354,000 |
Company's liability to trusts including investments | $ 30,000,000 | ||
Percentage of capital permitted for trust preferred securities | 25.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Jan. 04, 2019USD ($)Branch$ / sharesshares | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Goodwill | $ 156,277,000 | $ 136,433,000 | ||||
Merger and acquisition integration-related expenses | 3,178,000 | 464,000 | $ 0 | |||
Highlands Bancorp, Inc. | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Goodwill | $ 19,844,000 | |||||
Number of bank branches operated | Branch | 4 | |||||
Conversion ratio (in shares) | shares | 1.015 | |||||
Consideration paid through common stock (in shares) | shares | 2,837,524 | |||||
Stock option payout price per share (in dollars per share) | $ / shares | $ 14.71 | |||||
Average strike price (usd per share) | $ / shares | $ 8.09 | |||||
Cash paid in connection with cancellation of the old stock options | $ 797,000 | |||||
Goodwill adjustments | $ 447,000,000 | $ 1,700,000 | ||||
Finite-lived intangible asset, useful life | 10 years | |||||
Identifiable intangible assets | $ 3,728,000 | |||||
Merger and acquisition integration-related expenses | $ 3,200,000 | $ 464,000 | $ 0 |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Value of the Acquired Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 04, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 156,277 | $ 136,433 | |
Highlands Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 13,454 | ||
Investment securities, available for sale | 21,234 | ||
Investment securities, held to maturity | 1,500 | ||
Federal Home Loan Bank stock | 1,767 | ||
Loans held for sale | 1,113 | ||
Loans | 425,005 | ||
Premises and equipment | 2,613 | ||
Goodwill | 19,844 | ||
Identifiable intangible assets | 3,728 | ||
Accrued interest receivable and other assets | 6,244 | ||
Total assets acquired | 496,502 | ||
Deposits | (409,638) | ||
Other borrowings | (27,800) | ||
Subordinated debt | (13,157) | ||
Other liabilities | (2,490) | ||
Total liabilities assumed | (453,085) | ||
Net assets acquired | $ 43,417 |
Acquisitions - Summary of the L
Acquisitions - Summary of the Loans Acquired (Details) - Loans Acquired with Deteriorated Credit Quality - Highlands Bancorp, Inc. $ in Thousands | Jan. 04, 2019USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually required principal and interest at acquisition | $ 22,363 |
Contractual cash flows not expected to be collected (non-accretable difference) | 7,129 |
Expected cash flows at acquisition | 15,234 |
Interest component of expected cash flows (accretable difference) | 1,431 |
Fair value of acquired loans | $ 13,803 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per share | |||
Net income available to common shareholders, Income | $ 70,672 | $ 63,401 | $ 52,580 |
Less: earnings allocated to participating securities, Income | (596) | (582) | (480) |
Net income available to common shareholders, Total | $ 70,076 | $ 62,819 | $ 52,100 |
Net income available to common shareholders, (in shares) | 50,477 | 47,578 | 47,438 |
Less: earnings allocated to participating securities, (in shares) | 0 | 0 | 0 |
Net income available to common shareholders, Total (in shares) | 50,477 | 47,578 | 47,438 |
Net income available to common shareholders, (in usd per share) | $ 1.40 | $ 1.33 | $ 1.11 |
Less: earnings allocated to participating securities, (in usd per share) | (0.01) | (0.01) | (0.01) |
Net income available to common shareholders, Total (usd per share) | $ 1.39 | $ 1.32 | $ 1.10 |
Effect of dilutive securities | |||
Stock options and restricted stock, Income | $ 0 | $ 0 | $ 0 |
Stock options and restricted stock, (in shares) | 165 | 188 | 236 |
Stock options and restricted stock, (in usd per share) | $ (0.01) | $ 0 | $ (0.01) |
Diluted earnings per share | |||
Net income available to common shareholders plus assumed conversions, Income | $ 70,076 | $ 62,819 | $ 52,100 |
Net income available to common shareholders plus assumed conversions, (in shares) | 50,642 | 47,766 | 47,674 |
Net income available to common shareholders plus assumed conversions, (usd per share) | $ 1.38 | $ 1.32 | $ 1.09 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options to purchase | 0 | 0 | 0 |
Investment Securities - Reconci
Investment Securities - Reconciliation of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 752,260 | $ 649,741 |
Gross Unrealized Gains | 5,785 | 1,078 |
Gross Unrealized Losses | (2,145) | (12,201) |
Investment securities, available for sale, at fair value | 755,900 | 638,618 |
U.S. Treasury and U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 135,361 | 143,495 |
Gross Unrealized Gains | 722 | 0 |
Gross Unrealized Losses | (436) | (2,568) |
Investment securities, available for sale, at fair value | 135,647 | 140,927 |
Mortgage-backed securities, residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 500,245 | 434,208 |
Gross Unrealized Gains | 3,185 | 779 |
Gross Unrealized Losses | (1,551) | (8,843) |
Investment securities, available for sale, at fair value | 501,879 | 426,144 |
Mortgage-backed securities, multifamily | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 48,675 | 21,087 |
Gross Unrealized Gains | 633 | 67 |
Gross Unrealized Losses | (123) | (204) |
Investment securities, available for sale, at fair value | 49,185 | 20,950 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 58,979 | 45,951 |
Gross Unrealized Gains | 1,077 | 140 |
Gross Unrealized Losses | (35) | (586) |
Investment securities, available for sale, at fair value | 60,021 | 45,505 |
Debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,000 | 5,000 |
Gross Unrealized Gains | 168 | 92 |
Gross Unrealized Losses | 0 | 0 |
Investment securities, available for sale, at fair value | $ 9,168 | $ 5,092 |
Investment Securities - Recon_2
Investment Securities - Reconciliation of Held-to-Maturity Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 123,975 | $ 153,646 |
Gross Unrealized Gains | 1,115 | 282 |
Gross Unrealized Losses | (186) | (2,996) |
Investment securities held to maturity, Fair Value | 124,904 | 150,932 |
U.S. government agencies | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 31,335 | 33,025 |
Gross Unrealized Gains | 182 | 0 |
Gross Unrealized Losses | (8) | (677) |
Investment securities held to maturity, Fair Value | 31,509 | 32,348 |
Mortgage-backed securities, residential | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 76,229 | 75,859 |
Gross Unrealized Gains | 734 | 169 |
Gross Unrealized Losses | (176) | (1,838) |
Investment securities held to maturity, Fair Value | 76,787 | 74,190 |
Mortgage-backed securities, multifamily | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,750 | 1,853 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | (2) | (35) |
Investment securities held to maturity, Fair Value | 1,752 | 1,818 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 12,161 | 37,909 |
Gross Unrealized Gains | 195 | 113 |
Gross Unrealized Losses | 0 | (328) |
Investment securities held to maturity, Fair Value | 12,356 | 37,694 |
Debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,500 | 5,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (118) |
Investment securities held to maturity, Fair Value | $ 2,500 | $ 4,882 |
Investment Securities - Summary
Investment Securities - Summary of Contractual Maturities of Investment Securities Classified as Available for Sale and Held to Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 29,733 | |
Due after one year through five years | 105,745 | |
Due after five years through ten years | 52,534 | |
Due after ten years | 15,328 | |
Total | 203,340 | |
Amortized Cost | 752,260 | $ 649,741 |
Available for Sale, Fair Value | ||
Due in one year or less | 29,786 | |
Due after one year through five years | 106,611 | |
Due after five years through ten years | 53,385 | |
Due after ten years | 15,054 | |
Total | 204,836 | |
Investment securities, available for sale, at fair value | 755,900 | 638,618 |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 7,321 | |
Due after one year through five years | 31,102 | |
Due after five years through ten years | 6,815 | |
Due after ten years | 758 | |
Total | 45,996 | |
Amortized Cost | 123,975 | 153,646 |
Held to Maturity, Fair Value | ||
Due in one year or less | 7,328 | |
Due after one year through five years | 31,425 | |
Due after five years through ten years | 6,852 | |
Due after ten years | 760 | |
Total | 46,365 | |
Total securities, Held to Maturity, Fair Value | 124,904 | $ 150,932 |
Mortgage-backed securities | ||
Available for Sale, Amortized Cost | ||
Available for sale | 548,920 | |
Available for Sale, Fair Value | ||
Available for sale | 551,064 | |
Held to Maturity, Amortized Cost | ||
Held to maturity | 77,979 | |
Held to Maturity, Fair Value | ||
Held to maturity | $ 78,539 |
Investment Securities - Sales o
Investment Securities - Sales of Securities, Gross Gains and Gross Losses on Sales of Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Sale proceeds | $ 0 | $ 0 | $ 4,500 |
Gross gains | 0 | 0 | 2,539 |
Gross losses | $ 0 | $ 0 | $ (15) |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | |
Investment [Line Items] | ||||||
Unrealized gain on transfer of securities | $ 20,800,000 | |||||
Other comprehensive income (loss), transfers from held-to-maturity to available-for-sale securities, before tax | 291,000 | |||||
Securities, carrying value | 581,100,000 | $ 581,100,000 | $ 476,300,000 | |||
Equity securities, at fair value | 16,473,000 | 16,473,000 | 15,921,000 | |||
Cumulative adjustment for adoption | $ 125,000 | $ 0 | ||||
Proceeds from sales of equity securities | 1,287,000 | 2,155,000 | $ 0 | |||
Gain (loss) on equity securities | 496,000 | (583,000) | $ 0 | |||
Investment in community development loans | 3,500,000 | $ 3,500,000 | ||||
Redemption of funds | 60 days | |||||
Unfunded commitments | 0 | $ 0 | ||||
Fair value of securities | $ 11,300,000 | |||||
Retained Earnings | ||||||
Investment [Line Items] | ||||||
Cumulative adjustment for adoption | $ 125,000 | 2,043,000 | ||||
Other Financial Institutions | ||||||
Investment [Line Items] | ||||||
Equity securities, at fair value | 1,700,000 | 1,700,000 | ||||
Unfunded commitments | 0 | 0 | ||||
Community Reinvestment Funds | ||||||
Investment [Line Items] | ||||||
Equity securities, at fair value | $ 14,800,000 | $ 14,800,000 | ||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||
Investment [Line Items] | ||||||
Cumulative adjustment for adoption | $ 2,000,000 |
Investment Securities - Recon_3
Investment Securities - Reconciliation of Available-for-Sale and Held-to-Maturity Securities in Continuous Unrealized Loss Position (Detail) $ in Thousands | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Fair Value | ||
Less than 12 Months | $ 145,431 | $ 33,973 |
12 Months or Longer | 152,543 | 476,622 |
Total | 297,974 | 510,595 |
Unrealized Losses | ||
Less than 12 Months | 720 | 278 |
12 Months or Longer | 1,425 | 11,923 |
Total | $ 2,145 | $ 12,201 |
Number of Securities | Security | 105 | 220 |
Fair Value | ||
Less than 12 Months | $ 15,657 | $ 13,971 |
12 Months or Longer | 16,692 | 103,507 |
Total | 32,349 | 117,478 |
Unrealized Losses | ||
Less than 12 Months | 52 | 185 |
12 Months or Longer | 134 | 2,811 |
Total | $ 186 | $ 2,996 |
Number of Securities | Security | 19 | 72 |
U.S. Treasury and U.S. government agencies | ||
Fair Value | ||
Less than 12 Months | $ 11,625 | $ 20,588 |
12 Months or Longer | 41,617 | 120,338 |
Total | 53,242 | 140,926 |
Unrealized Losses | ||
Less than 12 Months | 39 | 216 |
12 Months or Longer | 397 | 2,352 |
Total | $ 436 | $ 2,568 |
Number of Securities | Security | 11 | 27 |
Fair Value | ||
Less than 12 Months | $ 3,195 | $ 0 |
12 Months or Longer | 5,102 | 32,348 |
Total | 8,297 | 32,348 |
Unrealized Losses | ||
Less than 12 Months | 6 | 0 |
12 Months or Longer | 2 | 677 |
Total | $ 8 | $ 677 |
Number of Securities | Security | 2 | 6 |
Mortgage-backed securities, residential | ||
Fair Value | ||
Less than 12 Months | $ 125,782 | $ 10,119 |
12 Months or Longer | 99,489 | 316,851 |
Total | 225,271 | 326,970 |
Unrealized Losses | ||
Less than 12 Months | 561 | 58 |
12 Months or Longer | 990 | 8,785 |
Total | $ 1,551 | $ 8,843 |
Number of Securities | Security | 86 | 139 |
Fair Value | ||
Less than 12 Months | $ 12,462 | $ 8,325 |
12 Months or Longer | 10,592 | 53,761 |
Total | 23,054 | 62,086 |
Unrealized Losses | ||
Less than 12 Months | 46 | 59 |
12 Months or Longer | 130 | 1,779 |
Total | $ 176 | $ 1,838 |
Number of Securities | Security | 16 | 36 |
Mortgage-backed securities, multifamily | ||
Fair Value | ||
Less than 12 Months | $ 7,651 | $ 1,977 |
12 Months or Longer | 4,878 | 12,911 |
Total | 12,529 | 14,888 |
Unrealized Losses | ||
Less than 12 Months | 118 | 2 |
12 Months or Longer | 5 | 202 |
Total | $ 123 | $ 204 |
Number of Securities | Security | 3 | 4 |
Fair Value | ||
Less than 12 Months | $ 0 | $ 0 |
12 Months or Longer | 998 | 1,818 |
Total | 998 | 1,818 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Longer | 2 | 35 |
Total | $ 2 | $ 35 |
Number of Securities | Security | 1 | 2 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 Months | $ 373 | $ 1,289 |
12 Months or Longer | 6,559 | 26,522 |
Total | 6,932 | 27,811 |
Unrealized Losses | ||
Less than 12 Months | 2 | 2 |
12 Months or Longer | 33 | 584 |
Total | $ 35 | $ 586 |
Number of Securities | Security | 5 | 50 |
Fair Value | ||
Less than 12 Months | $ 1,764 | |
12 Months or Longer | 15,580 | |
Total | 17,344 | |
Unrealized Losses | ||
Less than 12 Months | 8 | |
12 Months or Longer | 320 | |
Total | $ 328 | |
Number of Securities | Security | 27 | |
Debt securities | ||
Fair Value | ||
Less than 12 Months | $ 3,882 | |
12 Months or Longer | 0 | |
Total | 3,882 | |
Unrealized Losses | ||
Less than 12 Months | 118 | |
12 Months or Longer | 0 | |
Total | $ 118 | |
Number of Securities | Security | 1 |
Loans and Other Real Estate - C
Loans and Other Real Estate - Composition of Lakeland`s Loan and Lease Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 5,140,940 | $ 4,460,447 |
Less deferred fees | (3,117) | (3,714) |
Loans, net of deferred fees | 5,137,823 | 4,456,733 |
Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,589,593 | 3,057,779 |
Commercial, industrial and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 431,934 | 336,735 |
Equipment finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 111,076 | 87,925 |
Real estate - residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 335,191 | 329,854 |
Real estate - construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 335,169 | 319,545 |
Home equity and consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 337,977 | $ 328,609 |
Loans and Other Real Estate - A
Loans and Other Real Estate - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructurings included in non accrual loans | $ 1,600,000 | $ 3,600,000 | |
Unfunded lending reserve | 1,800,000 | 2,300,000 | |
Loans to related parties | 55,400,000 | 53,100,000 | |
Loans to related parties, additions | 21,400,000 | ||
Repayment of loan from related parties | 19,100,000 | ||
Mortgages held for sale | 1,743,000 | 1,113,000 | |
Residential real estate acquired through disclosure | 563,000 | 830,000 | |
Other repossessed assets owned | 0 | 0 | |
Writedown of other repossessed assets | 153,000 | 70,000 | $ 98,000 |
Federal Home Loan Bank of New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential loans pledged for potential borrowings at the Federal Home Loan Bank of New York | 1,300,000,000 | 1,200,000,000 | |
Residential Property | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential real estate acquired through disclosure | 702,000 | ||
Impaired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest accrued on impaired loans and leases | 1,000,000 | 1,100,000 | $ 1,500,000 |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Group of impaired loans with recorded investment | 500,000 | ||
Home equity and consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Overdraft balances included in home equity and consumer loans | 789,000 | 452,000 | |
Residential Mortgages and Consumer Home Equity Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans that were in process of foreclosure | $ 2,000,000 | $ 1,500,000 |
Loans and Other Real Estate -_2
Loans and Other Real Estate - Carrying value of the purchased credit impaired loans acquired in mergers (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and debt securities acquired with deteriorated credit quality | $ 8,748 | $ 652 |
Highlands | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and debt securities acquired with deteriorated credit quality | 8,194 | 0 |
Pascack Bancorp, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and debt securities acquired with deteriorated credit quality | 113 | 157 |
Harmony Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and debt securities acquired with deteriorated credit quality | $ 441 | $ 495 |
Loans and Other Real Estate - S
Loans and Other Real Estate - Schedule of Changes in Accretable Yield (Detail) - Loans Acquired with Deteriorated Credit Quality - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance, beginning of period | $ 81 | $ 129 |
Acquisitions | 1,431 | 0 |
Accretion | (1,236) | (182) |
Net reclassification non-accretable difference | 87 | 134 |
Balance, end of period | $ 363 | $ 81 |
Loans and Other Real Estate - L
Loans and Other Real Estate - Lakeland's Non-Accrual Loans and Leases and Its Accruing Troubled Debt Restructurings (TDRs) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | $ 21,138 | $ 12,130 |
Other real estate and other repossessed assets | 563 | 830 |
Total non-performing assets | 21,701 | 12,960 |
Financing Receivable, Modifications, Recorded Investment, Still Accruing | 5,650 | 9,293 |
Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 12,314 | 7,192 |
Commercial, industrial and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 1,539 | 1,019 |
Equipment finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 284 | 501 |
Real estate - residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 3,428 | 1,986 |
Real estate - construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 967 | 0 |
Home equity and consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | $ 2,606 | $ 1,432 |
Loans and Other Real Estate -_3
Loans and Other Real Estate - Age Analysis of Past Due Loans, Segregated by Class of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | $ 5,140,940 | $ 4,460,447 |
Commercial, secured by real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 3,589,593 | 3,057,779 |
Commercial, industrial and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 431,934 | 336,735 |
Equipment finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 111,076 | 87,925 |
Real estate - residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 335,191 | 329,854 |
Real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 335,169 | 319,545 |
Home equity and consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 337,977 | 328,609 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 24,322 | 12,022 |
Current | 5,107,870 | 4,447,773 |
Total Loans | 5,132,192 | 4,459,795 |
Recorded Investment Greater than 89 Days and Still Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial, secured by real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14,480 | 4,196 |
Current | 3,569,008 | 3,052,931 |
Total Loans | 3,583,488 | 3,057,127 |
Recorded Investment Greater than 89 Days and Still Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial, industrial and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,488 | 1,166 |
Current | 429,502 | 335,569 |
Total Loans | 430,990 | 336,735 |
Recorded Investment Greater than 89 Days and Still Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Equipment finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 530 | 1,047 |
Current | 110,546 | 86,878 |
Total Loans | 111,076 | 87,925 |
Recorded Investment Greater than 89 Days and Still Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate - residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,464 | 2,630 |
Current | 331,337 | 327,224 |
Total Loans | 334,801 | 329,854 |
Recorded Investment Greater than 89 Days and Still Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 967 | 0 |
Current | 333,418 | 319,545 |
Total Loans | 334,385 | 319,545 |
Recorded Investment Greater than 89 Days and Still Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Home equity and consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,393 | 2,983 |
Current | 334,059 | 325,626 |
Total Loans | 337,452 | 328,609 |
Recorded Investment Greater than 89 Days and Still Accruing | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,808 | 4,843 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days Past Due | Commercial, secured by real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,578 | 1,477 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days Past Due | Commercial, industrial and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 353 | 173 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days Past Due | Equipment finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 166 | 533 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days Past Due | Real estate - residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,138 | 743 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days Past Due | Real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days Past Due | Home equity and consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,573 | 1,917 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,889 | 1,222 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days Past Due | Commercial, secured by real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,200 | 639 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days Past Due | Commercial, industrial and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 71 | 243 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days Past Due | Equipment finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 80 | 13 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days Past Due | Real estate - residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 251 | 111 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days Past Due | Real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days Past Due | Home equity and consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 287 | 216 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Greater Than 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15,625 | 5,957 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Greater Than 89 Days | Commercial, secured by real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,702 | 2,080 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Greater Than 89 Days | Commercial, industrial and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,064 | 750 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Greater Than 89 Days | Equipment finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 284 | 501 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Greater Than 89 Days | Real estate - residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,075 | 1,776 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Greater Than 89 Days | Real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 967 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Greater Than 89 Days | Home equity and consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,533 | $ 850 |
Loans and Other Real Estate - I
Loans and Other Real Estate - Impaired Loans with and without Specific Allowances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired Loans | $ 22,124 | $ 19,702 | $ 22,591 |
Contractual Unpaid Principal Balance | 22,776 | 21,360 | 23,461 |
Loans with related allowance, Related Allowance | 352 | 338 | |
Related Allowance | 352 | 338 | 505 |
Interest Income Recognized | 426 | 592 | 705 |
Average Investment in Impaired Loans | 18,342 | 20,012 | 23,236 |
Commercial, secured by real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without related allowance, Recorded Investment in Impaired Loans | 12,478 | 9,284 | 12,155 |
Loans with related allowance, Recorded Investment in Impaired Loans | 3,470 | 7,270 | 5,381 |
Recorded Investment in Impaired Loans | 15,948 | 16,554 | 17,536 |
Loans without related allowance, Contractual Unpaid Principal Balance | 12,630 | 9,829 | 12,497 |
Loans with related allowance, Contractual Unpaid Principal Balance | 3,706 | 7,597 | 5,721 |
Contractual Unpaid Principal Balance | 16,336 | 17,426 | 18,218 |
Loans with related allowance, Related Allowance | 228 | 307 | 454 |
Related Allowance | 228 | 307 | 454 |
Loans without related allowance, Interest Income Recognized | 164 | 188 | 366 |
Loans with related allowance, Interest Income Recognized | 190 | 317 | 206 |
Interest Income Recognized | 354 | 505 | 572 |
Loans without related allowance, Average Investment in Impaired Loans | 10,386 | 7,369 | 12,774 |
Loans with related allowance, Average Investment in Impaired Loans | 4,554 | 7,594 | 5,029 |
Average Investment in Impaired Loans | 14,940 | 14,963 | 17,803 |
Commercial, industrial and other | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without related allowance, Recorded Investment in Impaired Loans | 1,391 | 1,151 | 618 |
Loans with related allowance, Recorded Investment in Impaired Loans | 113 | 209 | 164 |
Recorded Investment in Impaired Loans | 1,504 | 1,360 | 782 |
Loans without related allowance, Contractual Unpaid Principal Balance | 1,381 | 1,449 | 618 |
Loans with related allowance, Contractual Unpaid Principal Balance | 113 | 209 | 164 |
Contractual Unpaid Principal Balance | 1,494 | 1,658 | 782 |
Loans with related allowance, Related Allowance | 5 | 7 | 9 |
Related Allowance | 5 | 7 | 9 |
Loans without related allowance, Interest Income Recognized | 16 | 19 | 25 |
Loans with related allowance, Interest Income Recognized | 6 | 12 | 14 |
Interest Income Recognized | 22 | 31 | 39 |
Loans without related allowance, Average Investment in Impaired Loans | 1,334 | 1,834 | 618 |
Loans with related allowance, Average Investment in Impaired Loans | 113 | 209 | 283 |
Average Investment in Impaired Loans | 1,447 | 2,043 | 901 |
Equipment finance | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without related allowance, Recorded Investment in Impaired Loans | 0 | 301 | 0 |
Loans with related allowance, Recorded Investment in Impaired Loans | 23 | 30 | 65 |
Recorded Investment in Impaired Loans | 23 | 331 | 65 |
Loans without related allowance, Contractual Unpaid Principal Balance | 0 | 597 | 0 |
Loans with related allowance, Contractual Unpaid Principal Balance | 23 | 30 | 65 |
Contractual Unpaid Principal Balance | 23 | 627 | 65 |
Loans with related allowance, Related Allowance | 10 | 14 | 30 |
Related Allowance | 10 | 14 | 30 |
Loans without related allowance, Interest Income Recognized | 0 | 0 | 0 |
Loans with related allowance, Interest Income Recognized | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Loans without related allowance, Average Investment in Impaired Loans | 0 | 376 | 0 |
Loans with related allowance, Average Investment in Impaired Loans | 21 | 19 | 29 |
Average Investment in Impaired Loans | 21 | 395 | 29 |
Real estate - residential mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without related allowance, Recorded Investment in Impaired Loans | 803 | 0 | 963 |
Loans with related allowance, Recorded Investment in Impaired Loans | 1,512 | 730 | 781 |
Recorded Investment in Impaired Loans | 2,315 | 730 | 1,744 |
Loans without related allowance, Contractual Unpaid Principal Balance | 815 | 0 | 980 |
Loans with related allowance, Contractual Unpaid Principal Balance | 1,682 | 884 | 919 |
Contractual Unpaid Principal Balance | 2,497 | 884 | 1,899 |
Loans with related allowance, Related Allowance | 104 | 4 | 4 |
Related Allowance | 104 | 4 | 4 |
Loans without related allowance, Interest Income Recognized | 0 | 4 | 15 |
Loans with related allowance, Interest Income Recognized | 19 | 20 | 27 |
Interest Income Recognized | 19 | 24 | 42 |
Loans without related allowance, Average Investment in Impaired Loans | 233 | 242 | 996 |
Loans with related allowance, Average Investment in Impaired Loans | 926 | 745 | 940 |
Average Investment in Impaired Loans | 1,159 | 987 | 1,936 |
Real estate - construction | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without related allowance, Recorded Investment in Impaired Loans | 1,663 | 0 | 1,471 |
Loans with related allowance, Recorded Investment in Impaired Loans | 0 | 0 | 0 |
Recorded Investment in Impaired Loans | 1,663 | 0 | 1,471 |
Loans without related allowance, Contractual Unpaid Principal Balance | 1,661 | 0 | 1,471 |
Loans with related allowance, Contractual Unpaid Principal Balance | 0 | 0 | 0 |
Contractual Unpaid Principal Balance | 1,661 | 0 | 1,471 |
Loans with related allowance, Related Allowance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Loans without related allowance, Interest Income Recognized | 2 | 0 | 0 |
Loans with related allowance, Interest Income Recognized | 0 | 0 | 0 |
Interest Income Recognized | 2 | 0 | 0 |
Loans without related allowance, Average Investment in Impaired Loans | 82 | 726 | 1,471 |
Loans with related allowance, Average Investment in Impaired Loans | 0 | 0 | 0 |
Average Investment in Impaired Loans | 82 | 726 | 1,471 |
Home equity and consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without related allowance, Recorded Investment in Impaired Loans | 0 | 0 | 0 |
Loans with related allowance, Recorded Investment in Impaired Loans | 671 | 727 | 993 |
Recorded Investment in Impaired Loans | 671 | 727 | 993 |
Loans without related allowance, Contractual Unpaid Principal Balance | 0 | 0 | 0 |
Loans with related allowance, Contractual Unpaid Principal Balance | 765 | 765 | 1,026 |
Contractual Unpaid Principal Balance | 765 | 765 | 1,026 |
Loans with related allowance, Related Allowance | 5 | 6 | 8 |
Related Allowance | 5 | 6 | 8 |
Loans without related allowance, Interest Income Recognized | 0 | 0 | 0 |
Loans with related allowance, Interest Income Recognized | 29 | 32 | 52 |
Interest Income Recognized | 29 | 32 | 52 |
Loans without related allowance, Average Investment in Impaired Loans | 0 | 0 | 6 |
Loans with related allowance, Average Investment in Impaired Loans | 693 | 898 | 1,090 |
Average Investment in Impaired Loans | $ 693 | $ 898 | $ 1,096 |
Loans and Other Real Estate -_4
Loans and Other Real Estate - Lakeland 's Commercial Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 5,097,820 | $ 4,419,045 |
Commercial, secured by real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,589,593 | 3,057,779 |
Commercial, secured by real estate | 1 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial, secured by real estate | 2 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial, secured by real estate | 3 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 74,072 | 69,995 |
Commercial, secured by real estate | 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 965,825 | 933,577 |
Commercial, secured by real estate | 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,332,863 | 1,910,423 |
Commercial, secured by real estate | 5W - Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 100,347 | 61,626 |
Commercial, secured by real estate | 6 - Other assets especially mentioned | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 55,438 | 38,844 |
Commercial, secured by real estate | 7 - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 61,048 | 43,314 |
Commercial, secured by real estate | 8 - Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial, secured by real estate | 9 - Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial, industrial and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 431,934 | 336,735 |
Commercial, industrial and other | 1 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 898 | 1,119 |
Commercial, industrial and other | 2 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,988 | 18,462 |
Commercial, industrial and other | 3 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 39,112 | 36,367 |
Commercial, industrial and other | 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 107,376 | 91,145 |
Commercial, industrial and other | 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 215,975 | 168,474 |
Commercial, industrial and other | 5W - Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 30,192 | 7,798 |
Commercial, industrial and other | 6 - Other assets especially mentioned | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,328 | 2,033 |
Commercial, industrial and other | 7 - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,065 | 11,337 |
Commercial, industrial and other | 8 - Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial, industrial and other | 9 - Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate - construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 335,169 | 319,545 |
Real estate - construction | 1 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate - construction | 2 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate - construction | 3 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate - construction | 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,941 | 17,375 |
Real estate - construction | 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 307,824 | 297,625 |
Real estate - construction | 5W - Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,959 | 3,493 |
Real estate - construction | 6 - Other assets especially mentioned | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate - construction | 7 - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,445 | 1,052 |
Real estate - construction | 8 - Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate - construction | 9 - Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Total Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,356,696 | 3,714,059 |
Total Commercial Loans | 1 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 898 | 1,119 |
Total Commercial Loans | 2 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,988 | 18,462 |
Total Commercial Loans | 3 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 113,184 | 106,362 |
Total Commercial Loans | 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,091,142 | 1,042,097 |
Total Commercial Loans | 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,856,662 | 2,376,522 |
Total Commercial Loans | 5W - Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 137,498 | 72,917 |
Total Commercial Loans | 6 - Other assets especially mentioned | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 66,766 | 40,877 |
Total Commercial Loans | 7 - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 72,558 | 55,703 |
Total Commercial Loans | 8 - Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Total Commercial Loans | 9 - Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans and Other Real Estate -_5
Loans and Other Real Estate - Allowance for Loan and Lease Losses by Portfolio Segment and Related Recorded Investment in Loans and Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | $ 37,688 | $ 35,455 | ||||
Charge-offs | (1,936) | (3,347) | ||||
Recoveries | 2,121 | 1,167 | ||||
Provision | 2,130 | 4,413 | $ 6,090 | |||
Ending balance | 40,003 | 37,688 | 35,455 | |||
Allowance for Loan Losses | ||||||
Ending balance: Individually evaluated for impairment | $ 352 | $ 338 | ||||
Ending balance: Collectively evaluated for impairment | 39,651 | 37,350 | ||||
Ending balance | 37,688 | 37,688 | 35,455 | 40,003 | 37,688 | $ 35,455 |
Loans | ||||||
Total Loans | 5,140,940 | 4,460,447 | ||||
Loans | ||||||
Loans | ||||||
Ending balance: Individually evaluated for impairment | 22,124 | 19,702 | ||||
Ending balance: Collectively evaluated for impairment | 5,110,068 | 4,440,093 | ||||
Total Loans | 5,140,940 | 4,460,447 | ||||
Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Loans | ||||||
Ending balance: Loans acquired with deteriorated credit quality | 8,748 | 652 | ||||
Commercial, secured by real estate | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 27,881 | 25,704 | ||||
Charge-offs | (544) | (421) | ||||
Recoveries | 251 | 468 | ||||
Provision | 1,362 | 2,130 | ||||
Ending balance | 28,950 | 27,881 | 25,704 | |||
Allowance for Loan Losses | ||||||
Ending balance: Individually evaluated for impairment | 228 | 307 | 454 | |||
Ending balance: Collectively evaluated for impairment | 28,722 | 27,574 | ||||
Ending balance | 27,881 | 27,881 | 25,704 | 28,950 | 27,881 | 25,704 |
Loans | ||||||
Total Loans | 3,589,593 | 3,057,779 | ||||
Commercial, secured by real estate | Loans | ||||||
Loans | ||||||
Ending balance: Individually evaluated for impairment | 15,948 | 16,554 | ||||
Ending balance: Collectively evaluated for impairment | 3,567,540 | 3,040,573 | ||||
Total Loans | 3,589,593 | 3,057,779 | ||||
Commercial, secured by real estate | Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Loans | ||||||
Ending balance: Loans acquired with deteriorated credit quality | 6,105 | 652 | ||||
Commercial, industrial and other | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,742 | 2,313 | ||||
Charge-offs | (645) | (1,452) | ||||
Recoveries | 1,100 | 317 | ||||
Provision | 1,092 | 564 | ||||
Ending balance | 3,289 | 1,742 | 2,313 | |||
Allowance for Loan Losses | ||||||
Ending balance: Individually evaluated for impairment | 5 | 7 | 9 | |||
Ending balance: Collectively evaluated for impairment | 3,284 | 1,735 | ||||
Ending balance | 1,742 | 1,742 | 2,313 | 3,289 | 1,742 | 2,313 |
Loans | ||||||
Total Loans | 431,934 | 336,735 | ||||
Commercial, industrial and other | Loans | ||||||
Loans | ||||||
Ending balance: Individually evaluated for impairment | 1,504 | 1,360 | ||||
Ending balance: Collectively evaluated for impairment | 429,486 | 335,375 | ||||
Total Loans | 431,934 | 336,735 | ||||
Commercial, industrial and other | Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Loans | ||||||
Ending balance: Loans acquired with deteriorated credit quality | 944 | 0 | ||||
Equipment finance | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 987 | 630 | ||||
Charge-offs | (414) | (507) | ||||
Recoveries | 332 | 23 | ||||
Provision | 52 | 841 | ||||
Ending balance | 957 | 987 | 630 | |||
Allowance for Loan Losses | ||||||
Ending balance: Individually evaluated for impairment | 10 | 14 | 30 | |||
Ending balance: Collectively evaluated for impairment | 947 | 973 | ||||
Ending balance | 987 | 987 | 630 | 957 | 987 | 630 |
Loans | ||||||
Total Loans | 111,076 | 87,925 | ||||
Equipment finance | Loans | ||||||
Loans | ||||||
Ending balance: Individually evaluated for impairment | 23 | 331 | ||||
Ending balance: Collectively evaluated for impairment | 111,053 | 87,594 | ||||
Total Loans | 111,076 | 87,925 | ||||
Equipment finance | Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Loans | ||||||
Ending balance: Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Real estate - residential mortgage | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,566 | 1,557 | ||||
Charge-offs | (50) | (131) | ||||
Recoveries | 66 | 10 | ||||
Provision | 143 | 130 | ||||
Ending balance | 1,725 | 1,566 | 1,557 | |||
Allowance for Loan Losses | ||||||
Ending balance: Individually evaluated for impairment | 104 | 4 | 4 | |||
Ending balance: Collectively evaluated for impairment | 1,621 | 1,562 | ||||
Ending balance | 1,725 | 1,557 | 1,557 | 1,725 | 1,566 | 1,557 |
Loans | ||||||
Total Loans | 335,191 | 329,854 | ||||
Real estate - residential mortgage | Loans | ||||||
Loans | ||||||
Ending balance: Individually evaluated for impairment | 2,315 | 730 | ||||
Ending balance: Collectively evaluated for impairment | 332,486 | 329,124 | ||||
Total Loans | 335,191 | 329,854 | ||||
Real estate - residential mortgage | Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Loans | ||||||
Ending balance: Loans acquired with deteriorated credit quality | 390 | 0 | ||||
Real estate - construction | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 3,015 | 2,731 | ||||
Charge-offs | 0 | (248) | ||||
Recoveries | 126 | 17 | ||||
Provision | (469) | 515 | ||||
Ending balance | 2,672 | 3,015 | 2,731 | |||
Allowance for Loan Losses | ||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | |||
Ending balance: Collectively evaluated for impairment | 2,672 | 3,015 | ||||
Ending balance | 3,015 | 3,015 | 2,731 | 2,672 | 3,015 | 2,731 |
Loans | ||||||
Total Loans | 335,169 | 319,545 | ||||
Real estate - construction | Loans | ||||||
Loans | ||||||
Ending balance: Individually evaluated for impairment | 1,663 | 0 | ||||
Ending balance: Collectively evaluated for impairment | 332,722 | 319,545 | ||||
Total Loans | 335,169 | 319,545 | ||||
Real estate - construction | Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Loans | ||||||
Ending balance: Loans acquired with deteriorated credit quality | 784 | 0 | ||||
Home equity and consumer | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 2,497 | 2,520 | ||||
Charge-offs | (283) | (588) | ||||
Recoveries | 246 | 332 | ||||
Provision | (50) | 233 | ||||
Ending balance | 2,410 | 2,497 | 2,520 | |||
Allowance for Loan Losses | ||||||
Ending balance: Individually evaluated for impairment | 5 | 6 | 8 | |||
Ending balance: Collectively evaluated for impairment | 2,405 | 2,491 | ||||
Ending balance | $ 2,497 | $ 2,497 | $ 2,520 | 2,410 | 2,497 | $ 2,520 |
Loans | ||||||
Total Loans | 337,977 | 328,609 | ||||
Home equity and consumer | Loans | ||||||
Loans | ||||||
Ending balance: Individually evaluated for impairment | 671 | 727 | ||||
Ending balance: Collectively evaluated for impairment | 336,781 | 327,882 | ||||
Total Loans | 337,977 | 328,609 | ||||
Home equity and consumer | Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Loans | ||||||
Ending balance: Loans acquired with deteriorated credit quality | $ 525 | $ 0 |
Loans and Other Real Estate -_6
Loans and Other Real Estate - Summary of Restructured Loans (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 3 | 7 |
Pre- Modification Outstanding Recorded Investment | $ 777 | $ 4,313 |
Post- Modification Outstanding Recorded Investment | $ 777 | $ 4,313 |
Commercial, secured by real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 0 | 5 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 3,348 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 3,348 |
Commercial, industrial and other | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 0 | 1 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 950 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 950 |
Equipment finance | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 0 | 1 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 15 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 15 |
Real estate - construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 1 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 694 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 694 | $ 0 |
Home equity and consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 2 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 83 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 83 | $ 0 |
Loans and Other Real Estate -_7
Loans and Other Real Estate - Summary of Restructured Loans within Previous 12 Months that have Subsequently Defaulted (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 2 | 1 |
Recorded Investment | $ | $ 83 | $ 171 |
Commercial, secured by real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 171 |
Home equity and consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 2 | 0 |
Recorded Investment | $ | $ 83 | $ 0 |
Loans and Other Real Estate -_8
Loans and Other Real Estate - Summary of Future Minimum Lease Payments of Lease Receivables (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Receivables [Abstract] | |
2020 | $ 36,290 |
2021 | 30,448 |
2022 | 23,029 |
2023 | 14,767 |
2024 | 5,616 |
Thereafter | 926 |
Total | $ 111,076 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 10,356 | $ 10,471 |
Buildings and building improvements | 42,481 | 47,006 |
Leasehold improvements | 14,260 | 12,880 |
Furniture, fixtures and equipment | 31,728 | 27,858 |
Premises and equipment, gross | 98,825 | 98,215 |
Less accumulated depreciation and amortization | 51,217 | 49,040 |
Premises and equipment | $ 47,608 | $ 49,175 |
Buildings and building improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Buildings and building improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 50 years | |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 2 years | |
Furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 30 years |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 5.9 | $ 5.3 | $ 5 |
Deposits - Summary of Deposit L
Deposits - Summary of Deposit Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest and Noninterest Bearing Domestic Deposit Liabilities To Deposit Liabilities [Abstract] | ||
Noninterest-bearing demand | $ 1,124,121 | $ 950,218 |
Interest-bearing checking | 1,797,504 | 1,711,507 |
Money market | 1,003,149 | 715,620 |
Savings | 498,201 | 486,287 |
Certificates of deposit | 870,804 | 757,038 |
Total deposits | $ 5,293,779 | $ 4,620,670 |
Percentage Of Interest and Noninterest Bearing Domestic Deposit Liabilities To Deposit Liabilities [Abstract] | ||
Noninterest-bearing demand | 21.23% | 20.56% |
Interest-bearing checking | 33.96% | 37.04% |
Money market | 18.95% | 15.49% |
Savings | 9.41% | 10.52% |
Certificates of deposit | 16.45% | 16.39% |
Total Deposits | 100.00% | 100.00% |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | |
Lessee, Lease, Description [Line Items] | |||||
Initial recognition of operating lease right-of-use assets | $ 18,282,000 | $ 18,700,000 | |||
Operating lease liabilities | $ 19,814,000 | 20,200,000 | |||
Cumulative adjustment for adoption | 125,000 | $ 0 | |||
Operating lease, weighted average remaining lease term | 10 years 3 months 25 days | ||||
Lessee, operating lease, discount rate | 3.51% | ||||
Operating lease, lease not yet commenced, | $ 0 | ||||
Accounting Standards Update 2016-02 | |||||
Lessee, Lease, Description [Line Items] | |||||
Rent expense | $ 3,000,000 | $ 3,100,000 | |||
Related Parties Lease Transaction | |||||
Lessee, Lease, Description [Line Items] | |||||
Sale leaseback transaction | $ 0 | ||||
Retained Earnings (Accumulated Deficit) | |||||
Lessee, Lease, Description [Line Items] | |||||
Cumulative adjustment for adoption | 125,000 | $ 2,043,000 | |||
Retained Earnings (Accumulated Deficit) | Accounting Standards Update 2016-02 | |||||
Lessee, Lease, Description [Line Items] | |||||
Cumulative adjustment for adoption | $ 125,000 |
Deposits Deposits - Narrative (
Deposits Deposits - Narrative (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Deposits obtained through brokers | $ 63,800,000 | $ 0 |
Leases - Schedule of Lease, Cos
Leases - Schedule of Lease, Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 3,293 |
Short-term lease cost | 0 |
Variable lease cost | 133 |
Sublease income | (122) |
Net lease cost | $ 3,304 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Certificates of Deposit (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2020 | $ 715,061 | |
2021 | 103,285 | |
2022 | 42,891 | |
2023 | 8,215 | |
2024 | 1,264 | |
2025 | 88 | |
Total | $ 870,804 | $ 757,038 |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 2,654 |
Right-of-use asset obtained in exchange for new operating lease liabilities | $ 1,748 |
Leases - Maturity analysis of o
Leases - Maturity analysis of operating lease liabilities (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Within one year | $ 3,300 | |
After one year but within two years | 3,057 | |
After two years but within three years | 2,626 | |
After three years but within four years | 2,291 | |
After four years but within five years | 2,174 | |
After 5 years | 10,562 | |
Total undiscounted cash flows | 24,010 | |
Discount on cash flows | (4,196) | |
Operating lease liabilities | $ 19,814 | $ 20,200 |
Debt - Additional Information (
Debt - Additional Information (Short Term Debt) (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Securities Sold under Agreements to Repurchase | $ 43,700,000 | $ 41,800,000 |
Line of Credit | ||
Short-term Debt [Line Items] | ||
Overnight federal funds borrowed | 85,000,000 | 192,100,000 |
Overnight federal funds lines available for borrow | 230,000,000 | |
Line of Credit | Federal Home Loan Bank of New York | ||
Short-term Debt [Line Items] | ||
Overnight borrowings | 200,000,000 | 0 |
Federal Reserve Bank of New York | Line of Credit | ||
Short-term Debt [Line Items] | ||
Borrowings with the Federal Reserve Bank | 0 | $ 0 |
Short Term and Long Term Mortgage Backed Securities Sold Under Agreements To Repurchase | ||
Short-term Debt [Line Items] | ||
Securities Received as Collateral | $ 44,000,000 |
Debt - Additional Information_2
Debt - Additional Information (Long Term Debt) (Detail) | Aug. 03, 2015USD ($) | May 31, 2007USD ($)shares | Jun. 30, 2003USD ($)shares | Jun. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 04, 2019USD ($) | Jun. 30, 2016USD ($)Derivative | Oct. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Advances from the FHLB | $ 165,816,000 | $ 181,100,000 | ||||||||||
Repayments of debt | $ 34,000,000 | |||||||||||
Long-term debt prepayment fee | 0 | 0 | 2,828,000 | |||||||||
Securities sold under agreement to repurchase maturities due | $ 0 | $ 0 | ||||||||||
Repayments of long-term debt | $ 20,000,000 | |||||||||||
Cash Flow Hedging | Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 30,000,000 | |||||||||||
Number of derivatives | Derivative | 2 | |||||||||||
Collateralized FHLB Advances | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt prepayment fee | $ 638,000 | |||||||||||
Collateralized FHLB Advances | Weighted Average | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Weighted average interest rate of advances | 2.24% | 2.10% | ||||||||||
Debt Securities Sold under Agreements to Repurchase | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | $ 20,000,000 | |||||||||||
Long-term debt prepayment fee | $ 2,200,000 | |||||||||||
Subordinated Debenture Offering | Fixed To Floating | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 75,000,000 | |||||||||||
Debt instrument, interest rate | 5.125% | |||||||||||
Debt issuance costs | $ 1,500,000 | |||||||||||
Subordinated Debenture Offering | Fixed To Floating | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, basis point | 3.97% | |||||||||||
Junior Subordinated Debt | Lakeland Bancorp Capital Trust IV | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 20,600,000 | |||||||||||
Debt instrument, basis point | 1.52% | |||||||||||
Distribution rate on securities | 6.61% | |||||||||||
Distribution of securities years | 5 years | |||||||||||
Trust preferred securities, issued (in shares) | shares | 20,000 | |||||||||||
Trust preferred securities, face value | $ 1,000 | |||||||||||
Proceeds of trust preferred securities | $ 20,000,000 | |||||||||||
Debentures extinguished | $ 10,000,000 | |||||||||||
Gain on extinguishment of debt | $ 1,800,000 | |||||||||||
Junior Subordinated Debt | Lakeland Bancorp Capital II | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 20,600,000 | |||||||||||
Debt instrument, basis point | 3.10% | |||||||||||
Distribution rate on securities | 5.71% | |||||||||||
Distribution of securities years | 5 years | |||||||||||
Trust preferred securities, issued (in shares) | shares | 20,000 | |||||||||||
Trust preferred securities, face value | $ 1,000 | |||||||||||
Proceeds of trust preferred securities | $ 20,000,000 | |||||||||||
Highlands Bancorp, Inc. | Subordinated Debenture Offering | Fixed Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 5,000,000 | $ 7,500,000 | ||||||||||
Debt instrument, interest rate | 8.00% | 6.94% |
Debt - Summary of FHLB Debt Mat
Debt - Summary of FHLB Debt Matures (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 55,881 | |
2021 | 44,972 | |
2022 | 40,526 | |
2023 | 24,437 | |
Total | $ 165,816 | $ 181,100 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Oct. 22, 2019 | Sep. 30, 2019 | |
Equity [Abstract] | |||
Stock repurchase program, authorized amount (in shares) | 2,524,458 | ||
Stock repurchase program, number of shares authorized to be repurchased, as a percentage of outstanding shares of common stock (percentage) | 5.00% | ||
Common stock, shares outstanding (in shares) | 50,489,161 | ||
Stock repurchased and retired during period, shares (in shares) | 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current tax provision | $ 20,418 | $ 30,459 | $ 10,565 |
Deferred tax expense (benefit) | 2,854 | (13,571) | 16,904 |
Total provision for income taxes | $ 23,272 | $ 16,888 | $ 27,469 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jul. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Adjustment To Deferred Tax Asset For Change In State Tax Law | $ 943,000 | $ 0 | $ 943,000 | $ 0 |
Net deferred tax assets | 14,805,000 | 17,189,000 | ||
Tax Cuts and Jobs Act of 2017, change in tax rate, deferred tax asset, income tax expense (benefit) | 1,300,000 | |||
Excise tax on real estate investment trust (REIT) dividend | $ 0 | 0 | $ 1,945,000 | |
Effective income tax rate reconciliation, change in enacted tax rate and excise tax on real estate investment trust dividend, amount | $ 602,000 | |||
Statutory federal rate | 21.00% | 21.00% | 35.00% | |
Unrecognized tax benefits | $ 0 | $ 0 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 0 | $ 0 | ||
Highlands Bancorp, Inc. | ||||
Income Tax Disclosure [Line Items] | ||||
Net deferred tax assets | $ 4,300,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision Reconciled to Income Taxes that Computed at Statutory Federal Rate (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Federal income tax, at statutory rates | $ 19,728 | $ 16,861 | $ 28,017 | |
Increase (deduction) in taxes resulting from: | ||||
Tax-exempt income | (952) | (1,096) | (1,652) | |
Excise tax on real estate investment trust (REIT) dividend | 0 | 0 | 1,945 | |
Adjustment to net deferred tax asset for Tax Cuts and Jobs Act | 0 | 0 | (1,343) | |
State income tax, net of federal income tax effect | 4,322 | 1,880 | 931 | |
Adjustment to net deferred tax asset for change in NJ tax law | $ (943) | 0 | (943) | 0 |
Excess tax benefits from employee share-based payments | (189) | (318) | (587) | |
Other, net | 363 | 504 | 158 | |
Total provision for income taxes | $ 23,272 | $ 16,888 | $ 27,469 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Asset (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 11,937 | $ 11,651 |
Stock based compensation plans | 958 | 865 |
Purchase accounting fair market value adjustments | 3,632 | 1,192 |
Non-accrued interest | 381 | 256 |
Deferred compensation | 2,444 | 2,142 |
Depreciation and amortization | 0 | 630 |
Other-than-temporary impairment loss on investment securities | 41 | 59 |
Federal net operating loss carryforward | 875 | 0 |
Unrealized loss on pension plans | 2 | 0 |
Unrealized losses on securities available for sale | 0 | 3,162 |
Other, net | 594 | 585 |
Gross deferred tax assets | 20,864 | 20,542 |
Deferred tax liabilities: | ||
Core deposit intangible from acquired companies | 1,235 | 516 |
Undistributed income from subsidiary not consolidated for tax return purposes (REIT) | 678 | 149 |
Deferred loan costs | 1,461 | 1,418 |
Depreciation and amortization | 750 | 0 |
Prepaid expenses | 443 | 459 |
Deferred gain on securities | 162 | 166 |
Unfunded pension benefits | 0 | 17 |
Loss on equity securities | 65 | 36 |
Unrealized gain on investment securities | 884 | 0 |
Unrealized gains on hedging derivative | 80 | 322 |
Other | 301 | 270 |
Gross deferred tax liabilities | 6,059 | 3,353 |
Net deferred tax assets | $ 14,805 | $ 17,189 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 12 Months Ended | |||||||
Dec. 31, 2019USD ($)Installment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2003USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Percent of match | 50.00% | |||||||
Employer matching contribution, percent of employees' gross pay | 6.00% | |||||||
Company's contributions to employees salary | $ 1,300,000 | $ 1,100,000 | $ 1,000,000 | |||||
Supplemental Employee Retirement Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Annual retirement benefit | $ 90,000 | $ 84,500 | $ 150,000 | $ 150,000 | ||||
Retirement benefit period | 10 years | 15 years | 15 years | 15 years | ||||
Compensation expense | 371,000 | $ 83,000 | 261,000 | |||||
Retirement age of CEO | 65 years | 66 years | 65 years | 65 years | ||||
Accrued liabilities | 3,400,000 | $ 3,300,000 | ||||||
Supplemental Employee Retirement Plan | Somerset Hills Bancorp | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Retirement benefit period | 15 years | |||||||
Employee benefit plan liability | 616,000 | 629,000 | ||||||
Compensation expense | 59,000 | (1,000) | 33,000 | |||||
Supplemental Employee Retirement Plan | Somerset Hills Bancorp | Chief Financial Officer | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Annual retirement benefit | $ 24,000 | |||||||
Supplemental Employee Retirement Plan | Somerset Hills Bancorp | CEO | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Annual retirement benefit | $ 48,000 | |||||||
Deferred Compensation Agreement | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expense related to the deferred compensation plan | 311,000 | 269,000 | 244,000 | |||||
Accrued liability on deferred compensation plans | $ 1,200,000 | 923,000 | ||||||
Deferred Compensation Agreement | CEO | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Employer monthly contribution | $ 16,500 | |||||||
Number of consecutive installments payments | Installment | 180 | |||||||
Deferred Compensation Agreement | Minimum | CEO | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Range of return on equity | 0.00% | |||||||
Deferred Compensation Agreement | Maximum | CEO | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Range of return on equity | 15.00% | |||||||
Elective Deferral Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expense related to the deferred compensation plan | $ 136,000 | 73,000 | $ 55,000 | |||||
Accrued liability on deferred compensation plans | $ 2,000,000 | $ 1,400,000 | ||||||
Elective Deferral Plan | Eligible Executives | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Deferral account, interest rate | 75.00% | |||||||
Elective Deferral Plan | Minimum | Eligible Executives | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Range of return on equity | 0.00% | |||||||
Elective Deferral Plan | Maximum | Eligible Executives | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Range of return on equity | 15.00% |
Directors Retirement Plan - Add
Directors Retirement Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Minimum period of service for retirement | 5 years | ||
Maximum payment period for benefits | 10 years | ||
Defined benefit plan, expected amortization, next fiscal year | $ 0 | ||
Director's Retirement Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Discount rate of directors retirement plan | 2.89% | 3.97% | 3.30% |
Plan assets of director's retirement plan | $ 0 | ||
Contribution to the director's retirement plan | 63,000 | ||
Minimum | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Remuneration rate for board of directors | 5,000 | ||
Maximum | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Remuneration rate for board of directors | $ 17,500 |
Directors Retirement Plan - Sta
Directors Retirement Plan - Status of Directors Retirement Plan (Detail) - Director - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued plan cost included in other liabilities | $ 646 | $ 604 |
Recognized in accumulated other comprehensive income | ||
Net actuarial loss (gain) | 64 | (29) |
Unrecognized prior service cost | 0 | 0 |
Amounts not recognized as a component of net postretirement benefit | $ 64 | $ (29) |
Directors Retirement Plan - Com
Directors Retirement Plan - Components of Net Periodic Plan Cost for Retirement Plan (Detail) - Director's Retirement Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net periodic plan cost included the following components: | |||
Service cost | $ 14 | $ 15 | $ 21 |
Interest cost | 22 | 20 | 23 |
Amortization of prior service cost | 0 | 0 | 3 |
Amortization of gain | (2) | 0 | 0 |
Net periodic postretirement cost | $ 34 | $ 35 | $ 47 |
Directors Retirement Plan - Ben
Directors Retirement Plan - Benefits Expected to be Paid (Detail) - Director $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 63 |
2021 | 37 |
2022 | 38 |
2023 | 38 |
2024 | 52 |
2025-2029 | $ 210 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (in shares) | 31,706 | 67,488 | |
Excess tax benefits | $ 189,000 | $ 318,000 | $ 587,000 |
Vested in period (in shares) | 0 | 0 | |
Share-based compensation expense | $ 2,545,000 | $ 2,425,000 | 2,325,000 |
Aggregate intrinsic value of options exercised | 265,000 | 406,000 | |
Exercise of stock options | $ 313,000 | $ 307,000 | 321,000 |
2018 Omnibus Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, common stock, shares authorized (in shares) | 2,000,000 | ||
Number of shares available for grant (in shares) | 1,100,000 | ||
2009 Equity Compensation Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, common stock, shares authorized (in shares) | 2,300,000 | ||
Number of shares available for grant (in shares) | 0 | ||
Expiration period of stock option plan | 10 years | ||
Somerset Hills' Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (in shares) | 2,764 | 12,296 | |
Non Vested Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (in shares) | 0 | ||
Vested in period (in shares) | 0 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 | $ 0 | 14,000 |
Stock Options | 2009 Equity Compensation Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | 0 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | 0 | ||
Share-based compensation expense | $ 212,000 | $ 237,000 | $ 287,000 |
Granted (usd per share) | $ 15.96 | ||
Fair value of options vested | $ 236,000 | ||
Granted (in shares) | 13,052 | ||
Restricted Stock | 2009 Equity Compensation Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 13,052 | 11,575 | 13,176 |
Granted (usd per share) | $ 15.96 | $ 20.30 | $ 18.20 |
Vesting period | 1 year | 1 year | 1 year |
Allocated share based compensation expense | $ 208,000 | $ 235,000 | $ 240,000 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (usd per share) | $ 16.54 | ||
Granted (in shares) | 149,559 | ||
RSUs | 2009 Equity Compensation Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 2,400,000 | ||
Granted (usd per share) | $ 19.09 | $ 19.92 | |
Vesting period | 3 years | 3 years | |
Allocated share based compensation expense | $ 2,300,000 | $ 2,200,000 | $ 2,000,000 |
Granted (in shares) | 159,233 | 132,523 | |
Share-based compensation expense | $ 1,000,000 | $ 880,000 | |
Unrecognized compensation expense, period of recognition | 1 year 3 months 14 days | ||
RSUs | 2009 Equity Compensation Program | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
RSUs | 2009 Equity Compensation Program | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs | 2018 Omnibus Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (usd per share) | $ 16.54 | ||
Vesting period | 3 years | ||
Granted (in shares) | 149,559 | ||
Share-based compensation expense | $ 825,000 | ||
RSUs | 2018 Omnibus Equity Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
RSUs | 2018 Omnibus Equity Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (in shares) | 28,942 | 55,192 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity under the Company's Stock Option Plans (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | ||
Outstanding beginning of period (in shares) | 67,488 | |
Exercised (in shares) | (35,782) | |
Outstanding at end of period (in shares) | 31,706 | 67,488 |
Options exercisable at year-end (in shares) | 31,706 | |
Weighted Average Exercise Price | ||
Outstanding beginning of period (in usd per share) | $ 8.28 | |
Exercised (in usd per share) | 8.75 | |
Outstanding end of period (in usd per share) | 7.76 | $ 8.28 |
Options exercisable at year-end (in usd per share) | $ 7.76 | |
Weighted Average Remaining Contractual Term (in Years) | ||
Weighted average remaining contractual term (in years) | 17 days | 2 years 10 months 9 days |
Options exercisable at year-end | 17 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value | $ 305,120 | $ 440,483 |
Options exercisable at year-end | $ 305,120 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Company's Restricted Stock Activity (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Restricted Stock | |
Number of Shares/RSUs | |
Balance at beginning of period (in shares) | shares | 11,701 |
Granted (in shares) | shares | 13,052 |
Vested (in shares) | shares | (11,643) |
Balance at end of period (in shares) | shares | 13,110 |
Weighted Average Price | |
Balance at beginning of period (in usd per share) | $ / shares | $ 20.18 |
Granted (usd per share) | $ / shares | 15.96 |
Vested (in usd per share) | $ / shares | 20.24 |
Balance of end of period (in usd per share) | $ / shares | $ 15.93 |
RSUs | |
Number of Shares/RSUs | |
Balance at beginning of period (in shares) | shares | 299,347 |
Granted (in shares) | shares | 149,559 |
Vested (in shares) | shares | (138,578) |
Forfeited (in shares) | shares | (9,699) |
Balance at end of period (in shares) | shares | 300,629 |
Weighted Average Price | |
Balance at beginning of period (in usd per share) | $ / shares | $ 16.60 |
Granted (usd per share) | $ / shares | 16.54 |
Vested (in usd per share) | $ / shares | 13.12 |
Forfeited (in usd per share) | $ / shares | 18.02 |
Balance of end of period (in usd per share) | $ / shares | $ 18.13 |
Revenue Recognition (Details)
Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2019SegmentRegion | |
Revenue from Contract with Customer [Abstract] | |
Number of geographic regions | Region | 1 |
Number of operating segments | Segment | 1 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Gains on sales of loans | $ 1,660 | $ 1,329 | $ 1,836 |
Gains on customer swap transactions | 3,231 | 1,992 | 982 |
Title insurance income | 183 | 195 | 200 |
Other income | 1,463 | 295 | 518 |
Total | 4,877 | 2,482 | 1,700 |
Revenue not from contracts with customers | 2,836 | 2,391 | 6,327 |
Total Noninterest Income | 26,796 | 22,310 | 25,435 |
Products and services transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 23,885 | 19,844 | 19,040 |
Products and services transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 75 | 75 | 68 |
Deposit Related Fees and Charges | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 11,205 | 10,584 | 10,740 |
Debit card interchange income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 5,719 | 5,150 | 4,474 |
Overdraft charges | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 4,052 | 3,938 | 4,656 |
ATM service charges | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 826 | 830 | 808 |
Demand deposit fees and charges | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 501 | 540 | 679 |
Savings service charges | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 107 | 126 | 123 |
Commissions and Fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 6,218 | 5,524 | 4,832 |
Loan fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 1,510 | 1,264 | 1,136 |
Wire transfer charges | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 1,223 | 1,093 | 1,005 |
Investment services income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 1,651 | 1,314 | 1,045 |
Merchant fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 813 | 784 | 718 |
Commissions from sales of checks | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 407 | 434 | 457 |
Safe deposit income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 364 | 371 | 269 |
Other income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | $ 250 | $ 264 | $ 202 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Financial Instruments With Off Balance Sheet Credit Risk [Line Items] | ||
Commitments to lend additional funds to borrowers | $ 100 | $ 808 |
Maximum | ||
Schedule Of Financial Instruments With Off Balance Sheet Credit Risk [Line Items] | ||
Standby letters of credit | 17,200 | 21,600 |
Commitments to Extend Credit | ||
Schedule Of Financial Instruments With Off Balance Sheet Credit Risk [Line Items] | ||
Financial instruments with off-balance sheet risks, contract amount | $ 1,100,000 | $ 973,700 |
Comprehensive Income (Loss) - C
Comprehensive Income (Loss) - Components of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Before Tax Amount | |||
Unrealized holding gains on securities available for sale arising during the period | $ 14,763 | $ (4,241) | $ (1,406) |
Reclassification adjustment for securities gains included in net income | (2,524) | ||
Net unrealized losses on securities available for sale | (3,930) | ||
Unrealized gains on derivatives | (828) | ||
Unrealized gains on derivatives | 9 | 57 | |
Change in pension liability, net | (64) | 29 | (27) |
Other comprehensive loss | 13,871 | (4,203) | (3,900) |
Tax Benefit (Expense) | |||
Unrealized holding gains on securities available for sale arising during the period | (4,045) | 734 | 503 |
Reclassification adjustment for securities gains included in net income | 884 | ||
Net unrealized losses on securities available for sale | 1,387 | ||
Unrealized gains on derivatives | 242 | ||
Unrealized gains on derivatives | 32 | (20) | |
Change in pension liability, net | 18 | (9) | 11 |
Other comprehensive loss | (3,785) | 757 | 1,378 |
Net of Tax Amount | |||
Unrealized holding gains on securities available for sale arising during the period | 10,718 | (3,507) | (903) |
Reclassification adjustment for securities gains included in net income | 0 | 0 | (1,640) |
Net unrealized losses on securities available for sale | (2,543) | ||
Unrealized gains on derivatives | (586) | ||
Unrealized gains on derivatives | 41 | 37 | |
Change in pension liability, net | (46) | 20 | (16) |
Other comprehensive loss | $ 10,086 | $ (3,446) | $ (2,522) |
Comprehensive Income (Loss) - S
Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | $ (882) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 623,739 | $ 583,122 | 550,044 | ||
Other comprehensive loss | 10,086 | (3,446) | (2,522) | ||
Adjustment related to implementation of ASU 2018-02 | 0 | ||||
January 1, as adjusted | $ 623,864 | $ 583,122 | |||
Balance at end of period | 725,263 | 623,739 | 583,122 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (1,640) | ||||
Other comprehensive income (loss), net of tax | 10,086 | (3,446) | (2,522) | ||
Unrealized Gains (Losses) on Available- for-Sale Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (903) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (8,782) | (3,232) | (117) | ||
Adjustment related to implementation of ASU 2018-02 | (2,043) | (572) | |||
January 1, as adjusted | (5,275) | ||||
Balance at end of period | 1,936 | (8,782) | (3,232) | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (1,640) | ||||
Other comprehensive income (loss), net of tax | 10,718 | (3,507) | (2,543) | ||
Unrealized Gains (Losses) on Derivatives | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 37 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 903 | 862 | 672 | ||
Adjustment related to implementation of ASU 2018-02 | 0 | 153 | |||
January 1, as adjusted | 862 | ||||
Balance at end of period | 317 | 903 | 862 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0 | ||||
Other comprehensive income (loss), net of tax | (586) | 41 | 37 | ||
Pension Items | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (16) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 41 | 21 | 38 | ||
Adjustment related to implementation of ASU 2018-02 | 0 | (1) | |||
January 1, as adjusted | 21 | ||||
Balance at end of period | (5) | 41 | 21 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0 | ||||
Other comprehensive income (loss), net of tax | (46) | 20 | (16) | ||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (7,838) | (2,349) | 593 | ||
Adjustment related to implementation of ASU 2018-02 | (2,043) | (420) | |||
January 1, as adjusted | $ (7,838) | $ (4,392) | |||
Balance at end of period | 2,248 | (7,838) | (2,349) | ||
Other comprehensive income (loss), net of tax | $ 10,086 | $ (3,446) | $ (2,522) |
Fair Value Measurement and Fa_3
Fair Value Measurement and Fair Value of Financial Instruments - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | $ 755,900 | $ 638,618 |
Assets: | ||
Equity securities, at fair value | 16,473 | 15,921 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 755,900 | 638,618 |
Assets: | ||
Equity securities, at fair value | 16,473 | 15,921 |
Derivative assets | 27,123 | 12,135 |
Total Assets | 799,496 | 666,674 |
Liabilities: | ||
Total Liabilities | 26,852 | 11,036 |
Fair Value, Measurements, Recurring | Non Hedging | ||
Liabilities: | ||
Derivative liabilities | 26,852 | 11,036 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 743,320 | 633,698 |
Assets: | ||
Equity securities, at fair value | 14,738 | 13,190 |
Derivative assets | 27,123 | 12,135 |
Total Assets | 785,181 | 659,023 |
Liabilities: | ||
Total Liabilities | 26,852 | 11,036 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Non Hedging | ||
Liabilities: | ||
Derivative liabilities | 26,852 | 11,036 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 12,580 | 4,920 |
Assets: | ||
Equity securities, at fair value | 1,735 | 2,731 |
Derivative assets | 0 | 0 |
Total Assets | 14,315 | 7,651 |
Liabilities: | ||
Total Liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Non Hedging | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 0 | 0 |
Assets: | ||
Equity securities, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Total Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Non Hedging | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
U.S. Treasury and U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 135,647 | 140,927 |
U.S. Treasury and U.S. government agencies | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 135,647 | 140,927 |
U.S. Treasury and U.S. government agencies | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 123,067 | 136,007 |
U.S. Treasury and U.S. government agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 12,580 | 4,920 |
U.S. Treasury and U.S. government agencies | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 0 | 0 |
Mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 551,064 | 447,094 |
Mortgage-backed securities | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 551,064 | 447,094 |
Mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 0 | 0 |
Mortgage-backed securities | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 0 | 0 |
Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 60,021 | 45,505 |
Obligations of states and political subdivisions | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 60,021 | 45,505 |
Obligations of states and political subdivisions | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 60,021 | 45,505 |
Obligations of states and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 0 | 0 |
Obligations of states and political subdivisions | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 0 | 0 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 9,168 | 5,092 |
Corporate debt securities | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 9,168 | 5,092 |
Corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | 0 | 0 |
Corporate debt securities | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, available for sale, at fair value | $ 0 | $ 0 |
Fair Value Measurement and Fa_4
Fair Value Measurement and Fair Value of Financial Instruments - Fair Value of Financial Assets Measured on Non-recurring Basis (Detail) - Fair Value, Measurements, Non-recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 5,789 | $ 8,966 |
Loans held for sale | 1,743 | 1,113 |
Other real estate owned and other repossessed assets | 563 | 830 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Other real estate owned and other repossessed assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Loans held for sale | 1,743 | 1,113 |
Other real estate owned and other repossessed assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 5,789 | 8,966 |
Loans held for sale | 0 | 0 |
Other real estate owned and other repossessed assets | $ 563 | $ 830 |
Fair Value Measurement and Fa_5
Fair Value Measurement and Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term municipal bond | $ 901 | |
Subordinate debt | 118,220 | $ 105,027 |
Non-rated | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinate debt | $ 2,500 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rates | 5.00% | |
Capitalization rates | 4.00% | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rates | 11.00% | |
Capitalization rates | 9.00% |
Fair Value Measurement and Fa_6
Fair Value Measurement and Fair Value of Financial Instruments - Carrying Values and Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Investment securities held to maturity, Fair Value | $ 124,904 | $ 150,932 |
Investment securities held to maturity, Carrying Value | 123,975 | 153,646 |
Federal Home Loan Bank and other membership bank stocks, Fair Value | 22,505 | 13,301 |
Federal Home Loan Bank and other membership bank stocks, Carrying Value | 22,505 | 13,301 |
Loans and leases, net Fair Value | 5,194,065 | 4,341,477 |
Loans and leases, net Carrying Value | 5,097,820 | 4,419,045 |
Financial Liabilities: | ||
Certificates of deposit, Fair Value | 871,418 | 750,801 |
Certificates of deposit, Carrying value | 870,804 | 757,038 |
Other borrowings, Fair Value | 166,505 | 176,921 |
Other borrowings, Carrying value | 165,816 | 181,118 |
Subordinated debentures, Fair Value | 117,992 | 102,497 |
Subordinated debentures, Carrying Value | 118,220 | 105,027 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets: | ||
Investment securities held to maturity, Fair Value | 0 | 0 |
Federal Home Loan Bank and other membership bank stocks, Fair Value | 0 | 0 |
Loans and leases, net Fair Value | 0 | 0 |
Financial Liabilities: | ||
Certificates of deposit, Fair Value | 0 | 0 |
Other borrowings, Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial Assets: | ||
Investment securities held to maturity, Fair Value | 121,503 | 143,913 |
Federal Home Loan Bank and other membership bank stocks, Fair Value | 22,505 | 13,301 |
Loans and leases, net Fair Value | 0 | 0 |
Financial Liabilities: | ||
Certificates of deposit, Fair Value | 871,418 | 750,801 |
Other borrowings, Fair Value | 166,505 | 176,921 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Investment securities held to maturity, Fair Value | 3,401 | 7,019 |
Federal Home Loan Bank and other membership bank stocks, Fair Value | 0 | 0 |
Loans and leases, net Fair Value | 5,194,065 | 4,341,477 |
Financial Liabilities: | ||
Certificates of deposit, Fair Value | 0 | 0 |
Other borrowings, Fair Value | 0 | 0 |
Subordinated debentures, Fair Value | $ 117,992 | $ 102,497 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2016USD ($)Derivative | |
Derivative [Line Items] | ||||
Interest expense | $ 60,453,000 | $ 39,562,000 | $ 24,966,000 | |
Reclassification Out of Accumulated Other Comprehensive Income | ||||
Derivative [Line Items] | ||||
Interest expense | 243,000 | |||
Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Debt securities, available-for-sale, restricted | 30,000,000 | $ 498,000 | ||
Cash Flow Hedging | Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Number of derivatives | Derivative | 2 | |||
Notional amount | $ 30,000,000 | |||
Average interest rate | 1.10% | |||
Interest expense | $ 409,000 |
Derivatives - Summary Informati
Derivatives - Summary Information Regarding Derivatives (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Third party interest rate swaps | ||
Derivative [Line Items] | ||
Derivatives, asset notional amount | $ 85,796,000 | $ 153,909,000 |
Derivatives liability, notional amount | $ 473,273,000 | $ 164,427,000 |
Derivatives, asset average maturity (years) | 9 years | 8 years 3 months 18 days |
Derivative, liability average maturity (years) | 9 years 10 months 24 days | 12 years |
Weighted average rate fixed, other assets | 3.51% | 4.10% |
Weighted average rate fixed, other liabilities | 4.32% | 5.04% |
Derivatives asset, asset fair value | $ 947,000 | $ 5,329,000 |
Derivative liability, liability fair value | $ (25,905,000) | $ (5,707,000) |
Derivative asset, average basis spread on variable rate | 1.95% | 2.13% |
Derivative liability, average basis spread on variable rate | 1.93% | 2.05% |
Customer interest rate swaps | ||
Derivative [Line Items] | ||
Derivatives, asset notional amount | $ 473,273,000 | $ 164,427,000 |
Derivatives liability, notional amount | $ 85,796,000 | $ 153,909,000 |
Derivatives, asset average maturity (years) | 9 years 10 months 24 days | 12 years |
Derivative, liability average maturity (years) | 9 years | 8 years 3 months 18 days |
Weighted average rate fixed, other assets | 4.32% | 5.04% |
Weighted average rate fixed, other liabilities | 3.51% | 4.10% |
Derivatives asset, asset fair value | $ 25,905,000 | $ 5,707,000 |
Derivative liability, liability fair value | $ (947,000) | $ (5,329,000) |
Derivative asset, average basis spread on variable rate | 1.93% | 2.05% |
Derivative liability, average basis spread on variable rate | 1.95% | 2.13% |
Interest rate swap (cash flow hedge) | ||
Derivative [Line Items] | ||
Derivatives, asset notional amount | $ 30,000,000 | $ 30,000,000 |
Derivatives, asset average maturity (years) | 1 year 6 months | 2 years 6 months |
Weighted average rate fixed, other assets | 1.10% | 1.10% |
Derivatives asset, asset fair value | $ 271,000 | $ 1,099,000 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Banking and Thrift [Abstract] | |
Amount of capital available for payment of dividends | $ 629.1 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Company | ||
Total capital (to risk-weighted assets) | ||
Total capital (to risk-weighted assets) | $ 721,741 | $ 637,377 |
Total capital (to risk-weighted assets), For capital adequacy purposes | 565,504 | 458,952 |
Tier 1 capital (to risk-weighted assets) | ||
Tier 1 capital (to risk-weighted assets) | 593,539 | 523,577 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes | 457,789 | 366,000 |
Common equity Tier 1 capital (to risk-weighted assets) | ||
Common equity Tier 1 capital (to risk-weighted assets) | 563,539 | 493,577 |
Common Equity Tier One Leverage Capital Required for Capital Adequacy | 377,003 | 296,285 |
Tier 1 capital (to average assets) | ||
Tier 1 capital (to average assets) | 593,539 | 523,577 |
Tier 1 capital (to average assets), For capital adequacy purposes | $ 252,234 | $ 222,982 |
Risk Based Ratios [Abstract] | ||
Total capital (to risk-weighted assets), ratio | 13.40% | 13.71% |
Tier 1 capital (to risk-weighted assets), ratio | 11.02% | 11.27% |
Common equity Tier 1 capital (to risk-weighted assets), ratio | 10.46% | 10.62% |
Tier 1 capital (to average assets), ratio | 9.41% | 9.39% |
Common equity Tier 1 capital (to risk-weighted assets),For capital adequacy purposes, ratio | 6.50% | 6.50% |
Total capital (to risk - weighted assets), To be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Subsidiaries | ||
Total capital (to risk-weighted assets) | ||
Total capital (to risk-weighted assets) | $ 681,689 | $ 605,560 |
Total capital (to risk-weighted assets), For capital adequacy purposes | 564,981 | 457,912 |
Total capital (to risk - weighted assets), To be well capitalized under prompt corrective action provisions | 538,077 | 463,708 |
Tier 1 capital (to risk-weighted assets) | ||
Tier 1 capital (to risk-weighted assets) | 639,908 | 565,549 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes | 457,365 | 365,170 |
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions | 430,462 | 370,967 |
Common equity Tier 1 capital (to risk-weighted assets) | ||
Common equity Tier 1 capital (to risk-weighted assets) | 639,908 | 565,549 |
Common Equity Tier One Leverage Capital Required for Capital Adequacy | 376,654 | 295,614 |
Common equity Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions | 349,750 | 301,410 |
Tier 1 capital (to average assets) | ||
Tier 1 capital (to average assets) | 639,908 | 565,549 |
Tier 1 capital (to average assets), For capital adequacy purposes | 252,039 | 222,539 |
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action provisions | $ 315,048 | $ 278,173 |
Risk Based Ratios [Abstract] | ||
Total capital (to risk-weighted assets), ratio | 12.67% | 13.06% |
Tier 1 capital (to risk-weighted assets), ratio | 11.89% | 12.20% |
Common equity Tier 1 capital (to risk-weighted assets), ratio | 11.89% | 12.20% |
Tier 1 capital (to average assets), ratio | 10.16% | 10.17% |
Total capital (to risk-weighted assets), For capital adequacy purposes , ratio | 10.50% | 9.875% |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes, ratio | 8.50% | 7.875% |
Common equity Tier 1 capital (to risk-weighted assets),For capital adequacy purposes, ratio | 7.00% | 6.375% |
Tier 1 capital (to average assets), For capital adequacy purposes, ratio | 4.00% | 4.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 04, 2019 | |
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | $ 156,277 | $ 136,433 | |||
Amortization of core deposit intangible | 1,182 | 594 | $ 654 | ||
Highlands Bancorp, Inc. | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | $ 19,844 | ||||
Goodwill acquired | $ 19,800 | ||||
Core Deposits | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Core deposit intangible | 4,300 | $ 1,800 | |||
Core Deposits | Highlands Bancorp, Inc. | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 3,700 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 1,025 |
2021 | 868 |
2022 | 711 |
2023 | 554 |
2024 | $ 425 |
Condensed Financial Informati_3
Condensed Financial Information - Parent Company Only - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and Cash Equivalents, at Carrying Value | $ 282,371 | $ 208,599 | ||
Equity securities, at fair value | 16,473 | 15,921 | ||
Investment securities, held to maturity | 123,975 | 153,646 | ||
Other assets | 54,744 | 42,308 | ||
TOTAL ASSETS | 6,711,236 | 5,806,093 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Other liabilities | 59,686 | 41,634 | ||
Subordinated debentures | 118,220 | 105,027 | ||
Total stockholders’ equity | 725,263 | 623,739 | $ 583,122 | $ 550,044 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 6,711,236 | 5,806,093 | ||
Parent Company | ||||
ASSETS | ||||
Cash and Cash Equivalents, at Carrying Value | 29,981 | 23,285 | ||
Equity securities, at fair value | 1,735 | 2,743 | ||
Investment securities, held to maturity | 1,000 | 1,000 | ||
Investment in subsidiaries | 802,079 | 695,571 | ||
Other assets | 9,828 | 7,182 | ||
TOTAL ASSETS | 844,623 | 729,781 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Other liabilities | 1,140 | 1,015 | ||
Subordinated debentures | 118,220 | 105,027 | ||
Total stockholders’ equity | 725,263 | 623,739 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 844,623 | $ 729,781 |
Condensed Financial Informati_4
Condensed Financial Information - Parent Company Only - Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME | |||
Other income | $ 1,234 | $ 190 | $ 2,141 |
EXPENSE | |||
Noninterest expenses | 126,756 | 111,167 | 104,534 |
Income taxes benefit | 23,272 | 16,888 | 27,469 |
NET INCOME | 70,672 | 63,401 | 52,580 |
Parent Company | |||
INCOME | |||
Dividends from subsidiaries | 36,905 | 30,589 | 26,665 |
Other income | 408 | (125) | 2,750 |
TOTAL INCOME | 37,313 | 30,464 | 29,415 |
EXPENSE | |||
Interest on subordinated debentures | 5,983 | 5,141 | 5,091 |
Noninterest expenses | 464 | 506 | 377 |
TOTAL EXPENSE | 6,447 | 5,647 | 5,468 |
Income before benefit for income taxes | 30,866 | 24,817 | 23,947 |
Income taxes benefit | (1,646) | (1,130) | (2,018) |
Income before equity in undistributed income of subsidiaries | 32,512 | 25,947 | 25,965 |
Equity in undistributed income of subsidiaries | 38,160 | 37,454 | 26,615 |
NET INCOME | $ 70,672 | $ 63,401 | $ 52,580 |
Condensed Financial Informati_5
Condensed Financial Information - Parent Company Only - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
NET INCOME | $ 70,672 | $ 63,401 | $ 52,580 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Change in market value of equity securities | (496) | 583 | 0 |
Excess tax benefits | 189 | 318 | 587 |
Increase in other assets | (15,986) | 2,679 | (25,065) |
Increase (decrease) in other liabilities | 15,092 | 9,743 | 3,705 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of equity securities | (1,343) | (570) | (307) |
Proceeds from sales of equity securities | 1,287 | 2,155 | 0 |
Net cash received from business acquisition | 13,454 | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash dividends paid on common stock | (24,919) | (21,307) | (18,853) |
Retirement of restricted stock | (715) | (763) | (773) |
Exercise of stock options | 313 | 307 | 321 |
Cash and cash equivalents, beginning of year | 208,599 | 142,933 | 175,801 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 282,371 | 208,599 | 142,933 |
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
NET INCOME | 70,672 | 63,401 | 52,580 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Gain on securities | 0 | 0 | (2,539) |
Amortization of subordinated debt costs | 36 | 125 | 118 |
Change in market value of equity securities | (197) | 338 | 0 |
Excess tax benefits | 189 | 318 | 587 |
Increase in other assets | (1,873) | (1,446) | (1,927) |
Increase (decrease) in other liabilities | 121 | (6) | (17) |
Equity in undistributed income of subsidiaries | (38,160) | (37,454) | (26,615) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 30,788 | 25,276 | 22,187 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of available for sale securities | (79) | ||
Purchase of equity securities | (82) | (78) | 0 |
Proceeds from sale of available for sale securities | 3,217 | ||
Proceeds from sales of equity securities | 1,287 | 2,155 | 0 |
Net cash received from business acquisition | 24 | 0 | 0 |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 1,229 | 2,077 | 3,138 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash dividends paid on common stock | (24,919) | (21,307) | (18,853) |
Retirement of restricted stock | (715) | (763) | (773) |
Exercise of stock options | 313 | 307 | 321 |
NET CASH USED IN FINANCING ACTIVITIES | (25,321) | (21,763) | (19,305) |
Net increase in cash and cash equivalents | 6,696 | 5,590 | 6,020 |
Cash and cash equivalents, beginning of year | 23,285 | 17,695 | 11,675 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 29,981 | $ 23,285 | $ 17,695 |
Uncategorized Items - lbai12312
Label | Element | Value |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 514,703,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 512,734,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 74,780,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 116,999,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,043,000) |