☒ | |||||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 46-4702118 | ||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | ||||||
101 JFK Parkway, Short Hills, New Jersey (Address of Principal Executive Office) | 07078 (Zip Code) |
incorporation or organization) | Identification Number) | |||||||||||||
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Common stock | ISBC | The |
Large accelerated filer ☒ | Accelerated filer | ☐ | ||||||||||||||||||||||||
Non-accelerated filer ☐ | Smaller reporting company ☐ | |||||||||||||||||||||||||
Emerging growth company ☐ |
INDEX | ||||||
Explanatory Note | ||||||
Part III | ||||||
Item 10. | 2 | |||||
Item 11. | 24 | |||||
Item 12. | 59 | |||||
Item 13. | 61 | |||||
Item 14. | 61 | |||||
Part IV | ||||||
Item 15. | 62 |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
Name DIRECTORS | Position(s) Held With Investors Bancorp | Age | Director Since | Current Term Expires | ||||||||||
Robert C. Albanese | Director | 74 | 2013 | 2022 | ||||||||||
Domenick A. Cama | Director, President and Chief Operating Officer | 65 | 2011 | 2022 | ||||||||||
James J. Garibaldi | Director | 70 | 2012 | 2022 | ||||||||||
James H. Ward III | Director | 73 | 2009 | 2022 | ||||||||||
Dennis M. Bone | Lead Independent Director | 70 | 2013 | 2023 | ||||||||||
Doreen R. Byrnes | Director | 72 | 2002 | 2023 | ||||||||||
William V. Cosgrove | Director | 74 | 2011 | 2023 | ||||||||||
Kevin Cummings | Chairman and Chief Executive Officer | 67 | 2008 | 2024 | ||||||||||
John E. Harmon, Sr. | Director | 61 | 2021 | 2024 | ||||||||||
Michele N. Siekerka | Director | 57 | 2013 | 2024 | ||||||||||
Paul N. Stathoulopoulos | Director | 74 | 2018 | 2024 | ||||||||||
Kim Wales | Director | 52 | 2021 | 2024 |
Robert C. Albanese The Nominating and Corporate Governance Committee considers Mr. Albanese’s extensive regulatory experience with particular expertise in financial analysis, enterprise risk analysis and audit to be assets to the Board of Directors. | ||
Domenick A. Cama Mr. Cama has extensive knowledge of the banking industry and local markets served by Investors Bank. The Nominating and Corporate Governance Committee considers Mr. Cama’s experience, leadership, financial expertise and strong economics background to be unique assets for the Board of Directors. | ||
James J. Garibaldi Mr. Garibaldi’s extensive real estate experience and knowledge of the local real estate market bring valuable expertise to the Board of Directors. The Nominating and Corporate Governance Committee considers Mr. Garibaldi’s leadership skills and real estate knowledge to be assets to the Board of Directors. |
James H. Ward III Mr. Ward brings a wide range of management experience and business knowledge that provides a valuable resource to the Board of Directors. These skills and experience combined with the unique perspective Mr. Ward brings from his background as an entrepreneur provide skills and experience which the Nominating and Corporate Governance Committee considers to be valuable assets for the Board of Directors. | ||
Dennis M. Bone The Nominating and Corporate Governance Committee believes that Mr. Bone’s experience, which brings a broader corporate perspective, as well as his extensive community involvement, to be assets to the Board of Directors. | ||
Doreen R. Byrnes Ms. Byrnes has extensive experience with executive recruitment, retention and compensation as well as a strong understanding of the employees and markets served by Investors Bank. This experience provides a unique perspective to the Board of Directors. The Nominating and Corporate Governance Committee considers Ms. Byrnes’ skills and experience to be assets to the Board of Directors. |
William V. Cosgrove non-Section 16 officer of Investors Bank since Investors Bancorp’s acquisition of Summit Federal Bankshares, Inc. and Summit Federal Savings Bank in June 2008 through his retirement from Investors Bank on October 1, 2011. Mr. Cosgrove was President and Chief Executive Officer of Summit Federal Savings Bank from 2003 until the acquisition of Summit Federal Savings Bank by Investors Bank in 2008. Mr. Cosgrove has over 50 years of experience in banking and has served as president of the N.J. Council of Federal Savings Institutions, and the Union County Savings League. In addition, he served on the Board of Governors of the New Jersey Savings League. Mr. Cosgrove is a member of the NACD, where he continues his education.Mr. Cosgrove’s extensive experience in the banking industry and local markets bring valuable expertise to the Board of Directors. The Nominating and Corporate Governance Committee considers Mr. Cosgrove’s financial and leadership skills and his experience and knowledge of the financial services industry in general to be assets to the Board of Directors. | ||
Kevin Cummings 26-year career with the independent accounting firm of KPMG LLP, where he had been partner for 14 years. Immediately prior to joining Investors Bank, he was an audit partner in KPMG’s Financial Services practice in their New York City office and lead partner on a major commercial banking client. Mr. Cummings also worked in the New Jersey community bank practice for over 20 years. Mr. Cummings has a Bachelor’s degree in Economics from Middlebury College and a Master’s degree in Business Administration from Rutgers University. He is the former Chairman of the Board of the New Jersey Bankers Association and sits on the Board of Trustees of the Scholarship Fund for Inner-City Children and the Board of Trustees at St. Benedict’s Preparatory School. In addition, Mr. Cummings is a member of the Board of the Federal Home Loan Bank of New York and the Community Foundation of New Jersey.Mr. Cummings is a certified public accountant and his background in public accounting enhances the board of directors’ oversight of financial reporting and disclosure issues. The Nominating and Corporate Governance Committee considers Mr. Cummings’ leadership skills and knowledge of accounting, auditing and corporate governance in the financial services industry to be assets to the Board of Directors. | ||
John E. Harmon, Sr. The Nominating and Corporate Governance Committee considers Mr. Harmon’s skills and experience in community and business development, inclusion and finance to be assets to the Board of Directors. |
Michele N. Siekerka Mid-Atlantic, first as vice president of human resources and then as senior counsel. Active in numerous civic/professional organizations, Ms. Siekerka is on the Board of Choose New Jersey, New Jersey Innovation Institute, Junior Achievement of New Jersey, the National Association of Corporate Directors NJ Chapter and the Council of State Manufacturing Associations where she also serves as an Executive Committee member. Ms. Siekerka is a former member of the Robbinsville Township Board of Education where she served as President from 2002 to 2005. Professional certifications include NACD Directorship Certification, NACD Board Fellowship and Ford Foundation Fellowship for Regional Sustainable Development.The Nominating and Corporate Governance Committee considers Ms. Siekerka’s legal and government affairs expertise and market knowledge to be assets to the Board of Directors. | ||
Paul N. Stathoulopoulos to-date. Starting in 1969, Mr. Stathoulopoulos was employed by the Atlantic Bank of New York, where his last position was Senior Vice President &Officer-in-Charge Mr. Stathoulopoulos has extensive knowledge of the banking industry and local markets served by Investors Bank. The Nominating and Corporate Governance Committee considers Mr. Stathoulopoulos’s experience and leadership to be assets to the Board of Directors. | ||
Kim Wales The Nominating and Corporate Governance Committee considers Ms. Wales’s skills and experience in technology, fintech and information security to be assets to the Board of Directors. |
Richard S. Spengler 21-year career with First Savings Bank, Woodbridge, New Jersey where he served as Executive Vice President and Chief Lending Officer from 1999 to 2004. Mr. Spengler holds a Bachelor’s degree in Business Administration from Rutgers University. | ||
Paul Kalamaras | ||
Sean Burke |
✓ | The Board and management regularly focus on strategy and planning. |
✓ | Of the Board’s current 12 Directors, 9 are independent, including the Lead Independent Director. |
✓ | Our Board has adopted a majority voting policy, described below, which requires directors who do not receive majority stockholder support to tender their resignation. |
✓ | We have regular and constructive engagement with our stockholders and evaluate and respond to their views and requests. |
✓ | The Board held 9 regularly scheduled meetings in 2021. The Board also held 6 special meetings relating to the Company’s proposed merger with Citizens. The Board’s Committees each held 4 to 6 meetings in 2021. The Board met in executive session 9 times, 5 of which were presided over by the Board’s Lead Independent Director. |
✓ | Our Director attendance for Board and Committee meetings averaged approximately 99% in 2021, and each Director attended at least 75% of Board and Committee meetings on which the Director served. |
✓ | The Board conducts annual self-evaluations. |
✓ | New Directors are provided with an orientation package and attend Board orientation and policy training sessions. |
✓ | The Board has a robust Director Education Program to keep abreast of significant risks and compliance issues; laws, regulations and requirements applicable to the Company; corporate governance best practices; products and services offered by the Company; changes in the financial services industry; and enhancements in technology and platforms relating to the financial services industry and the delivery and availability of banking products and services. |
✓ | Robust stock ownership guidelines for directors and Named Executive Officers are in place. |
✓ | We have specific policies and procedures to align executive compensation with long-term stockholder interests; these policies and procedures are routinely reviewed and appropriately revised by the Compensation and Benefits Committee in conjunction with an independent compensation consultant. |
✓ | We have a clawback policy that applies to the performance-based incentive compensation paid to our Named Executive Officers. |
✓ | The Board reviews management talent and succession planning at least annually. |
✓ | The Company makes ongoing investments in systems and technology, as well as training and education for all employees and Directors to combat cybersecurity threats. |
✓ | The Board understands the importance of maintaining regular, open, and transparent communications with our regulators. |
✓ | Our Board has oversight of risk management with a focus on the most significant enterprise risks facing our Company, including compliance, credit, legal, liquidity, market, operational, cybersecurity, reputational, and strategic risks. |
✓ | We have guidelines governing the use of pre-established trading plans for transactions in our securities. |
✓ | The Board actively utilizes internal and external experts in the matters of audit, governance, compensation, stockholder interests and risk management. |
✘ | We prohibit all hedging of Investors Bancorp common stock by directors and executive officers. |
✘ | We prohibit pledging of Investors Bancorp common stock as collateral by directors and executive officers. |
✘ | We prohibit short sales of Investors Bancorp common stock by directors and executive officers. |
✘ | No immediate family relationships exist between any of our directors or executive officers. |
Director | Position(s) Held With Investors Bancorp | Nominating and Corporate Governance Committee | Audit Committee | Compensation and Benefits Committee | Risk Oversight Committee | |||||
Robert C. Albanese | Director | Chair(1) | Member | Member | ||||||
Dennis M. Bone | Lead Independent Director | Member | Member | Member | Member | |||||
Doreen R. Byrnes | Director | Chair | Member | Member | ||||||
Domenick A. Cama | Director, President and Chief Operating Officer | |||||||||
William V. Cosgrove | Director | Member | Member | Member | ||||||
Kevin Cummings | Chairman and Chief Executive Officer | |||||||||
James J. Garibaldi | Director | Member | ||||||||
John E. Harmon, Sr. | Director | Member | Member | Member | ||||||
Michele N. Siekerka | Director | Member | Chair | Member | ||||||
Paul N. Stathoulopoulos | Director | Member(1) | Member | Member | ||||||
Kim Wales | Director | Member | Member | Member | ||||||
James H. Ward III | Director | Member | Member | Chair | ||||||
Number of Meetings | 4 | 6 | 6 | 4 |
(1) | The Board considers Messrs. Albanese and Stathoulopoulos each an “audit committee financial expert”. |
Director | Diverse | Audit/ Accounting/ Finance/ Capital Allocation | Banking and Financial Services | Executive Level Experience | Business Operations and Technology | Risk Management | Human Capital Management | Environmental/ Social/ Governance | ||||||||
Robert C. Albanese | • | • | • | • | • | |||||||||||
Dennis M. Bone | ||||||||||||||||
• | • | • | • | • | ||||||||||||
• | • | • | • | • | • | |||||||||||
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• | • | • | ||||||||||||||
• | • | • | • | • | • | |||||||||||
• | • | • | • | • | • | • | ||||||||||
Paul N. Stathoulopoulos | • | • | • | • | • | |||||||||||
Kim Wales | • | • | • | • | • | • | ||||||||||
James H. Ward III | • | • | • | • | • |
Compensation Element | Director Compensation ($) | ||||
Annual Fee for Investors Bancorp Non-Employee Director | 24,000 | ||||
Annual Fee for Investors Bank Non-Employee Director | 73,200 | ||||
Annual Fee for Lead Independent Director | 25,000 | ||||
Annual Fee for Committee Chair | 10,000 | ||||
Annual Fee for Audit Committee Member | 15,000 | ||||
Annual Fee for Compensation and Benefits Committee Member | 15,000 | ||||
Annual Fee for Nominating and Corporate Governance Committee Member | 7,500 | ||||
Annual Fee for Risk Oversight Committee Member | 10,000 |
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family loans | $ | 7,122,840 | 34.1 | % | $ | 7,813,236 | 36.0 | % | $ | 8,165,187 | 37.7 | % | $ | 7,802,835 | 38.8 | % | $ | 7,459,131 | 39.6 | % | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate loans | 4,947,212 | 23.7 | 4,831,347 | 22.3 | 4,786,825 | 22.1 | 4,548,101 | 22.6 | 4,452,300 | 23.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans | 3,575,641 | 17.1 | 2,951,306 | 13.6 | 2,389,756 | 11.1 | 1,625,375 | 8.1 | 1,275,283 | 6.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction loans | 404,367 | 2.0 | 262,866 | 1.2 | 227,015 | 1.1 | 416,883 | 2.1 | 314,843 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans | 16,050,060 | 76.9 | 15,858,755 | 73.1 | 15,568,783 | 72.0 | 14,393,194 | 71.6 | 13,501,557 | 71.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 4,119,894 | 19.7 | 5,144,718 | 23.7 | 5,351,115 | 24.8 | 5,026,517 | 25.0 | 4,711,880 | 25.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash surrender value | 411,734 | 2.0 | 370,245 | 1.7 | 344,628 | 1.6 | 279,355 | 1.4 | 191,949 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity credit lines | 216,451 | 1.0 | 226,136 | 1.0 | 246,198 | 1.1 | 251,654 | 1.3 | 240,518 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity loans | 70,801 | 0.3 | 101,332 | 0.5 | 114,207 | 0.5 | 137,964 | 0.7 | 161,356 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,815 | — | 2,083 | — | 2,833 | — | 2,164 | — | 3,442 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans | 702,801 | 3.4 | 699,796 | 3.2 | 707,866 | 3.2 | 671,137 | 3.4 | 597,265 | 3.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | 20,872,755 | 100.0 | % | $ | 21,703,269 | 100.0 | % | $ | 21,627,764 | 100.0 | % | $ | 20,090,848 | 100.0 | % | $ | 18,810,702 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Deferred fees, premiums and other, net (1) | (9,318) | 907 | (13,811) | (7,778) | (12,474) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (282,986) | (228,120) | (235,817) | (230,969) | (228,373) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans | $ | 20,580,451 | $ | 21,476,056 | $ | 21,378,136 | $ | 19,852,101 | $ | 18,569,855 |
Segment/Industry | Loan Balance (in millions) | % of Total Segment | ||||||||||||
Commercial and industrial: | ||||||||||||||
Accommodation and food service | $ | 290 | 8.1 | % | ||||||||||
Administrative and support and waste management | 127 | 3.6 | % | |||||||||||
Agriculture, forestry, fishing and hunting | 19 | 0.5 | % | |||||||||||
Arts, entertainment, and recreation | 50 | 1.4 | % | |||||||||||
Construction | 282 | 7.9 | % | |||||||||||
Educational service | 124 | 3.5 | % | |||||||||||
Finance and insurance | 225 | 6.3 | % | |||||||||||
Health care and social assistance | 663 | 18.5 | % | |||||||||||
Information | 135 | 3.8 | % | |||||||||||
Management of companies and enterprises | 5 | 0.1 | % | |||||||||||
Manufacturing | 202 | 5.6 | % | |||||||||||
Mining, quarrying, and oil and gas extraction | 50 | 1.4 | % | |||||||||||
Professional, scientific, and technical services | 113 | 3.2 | % | |||||||||||
Public administration | 1 | 0.0 | % | |||||||||||
Real estate and rental | 584 | 16.3 | % | |||||||||||
Retail trade - clothing, home, gasoline, health | 100 | 2.8 | % | |||||||||||
Retail trade - sporting, hobby, vending, e-commerce | 22 | 0.6 | % | |||||||||||
Transportation - air, rail, truck, water, pipeline | 232 | 6.5 | % | |||||||||||
Utilities | 2 | 0.1 | % | |||||||||||
Wholesale trade | 147 | 4.1 | % | |||||||||||
Other | 203 | 5.7 | % | |||||||||||
Total commercial and industrial | $ | 3,576 | 100.0 | % | ||||||||||
Commercial real estate: | ||||||||||||||
Accommodation and food service | $ | 106 | 2.1 | % | ||||||||||
Arts, entertainment, and recreation | 15 | 0.3 | % | |||||||||||
Health care and social assistance | 53 | 1.1 | % | |||||||||||
Mixed use property | 477 | 9.6 | % | |||||||||||
Office | 1,221 | 24.7 | % | |||||||||||
Retail store | 902 | 18.2 | % | |||||||||||
Shopping center | 953 | 19.3 | % | |||||||||||
Warehouse | 769 | 15.5 | % | |||||||||||
Other | 451 | 9.1 | % | |||||||||||
Total commercial real estate | $ | 4,947 | 100.0 | % | ||||||||||
Multi-family | 7,123 | |||||||||||||
Construction | 404 | |||||||||||||
Residential and consumer | 4,823 | |||||||||||||
Total loans | $ | 20,873 |
At December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Multi-Family Loans | Commercial Real Estate Loans | Commercial and Industrial Loans | Construction Loans | Residential Mortgage Loans | Consumer and Other Loans | Total | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Amounts Due: | |||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 757,858 | $ | 555,403 | $ | 941,381 | $ | 313,516 | $ | 264,838 | $ | 108,432 | $ | 2,941,428 | |||||||||||||||||||||||||||
After one year: | |||||||||||||||||||||||||||||||||||||||||
One to three years | 2,080,311 | 1,345,877 | 436,905 | 90,851 | 227,375 | 187,358 | 4,368,677 | ||||||||||||||||||||||||||||||||||
Three to five years | 1,836,777 | 1,594,006 | 830,685 | — | 306,688 | 84,433 | 4,652,589 | ||||||||||||||||||||||||||||||||||
Five to ten years | 2,226,991 | 1,166,010 | 931,349 | — | 677,964 | 126,747 | 5,129,061 | ||||||||||||||||||||||||||||||||||
Ten to twenty years | 220,903 | 283,100 | 418,711 | — | 720,256 | 86,314 | 1,729,284 | ||||||||||||||||||||||||||||||||||
Over twenty years | — | 2,816 | 16,610 | — | 1,922,773 | 109,517 | 2,051,716 | ||||||||||||||||||||||||||||||||||
Total due after one year | 6,364,982 | 4,391,809 | 2,634,260 | 90,851 | 3,855,056 | 594,369 | 17,931,327 | ||||||||||||||||||||||||||||||||||
Total loans | $ | 7,122,840 | $ | 4,947,212 | $ | 3,575,641 | $ | 404,367 | $ | 4,119,894 | $ | 702,801 | $ | 20,872,755 | |||||||||||||||||||||||||||
Deferred fees, premiums and other, net | (9,318) | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (282,986) | ||||||||||||||||||||||||||||||||||||||||
Net loans | $ | 20,580,451 |
Due After December 31, 2021 | |||||||||||||||||
Fixed | Adjustable | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Commercial loans: | |||||||||||||||||
Multi-family loans | $ | 2,562,132 | $ | 3,802,850 | $ | 6,364,982 | |||||||||||
Commercial real estate loans | 1,830,133 | 2,561,676 | 4,391,809 | ||||||||||||||
Commercial and industrial loans | 1,933,730 | 700,530 | 2,634,260 | ||||||||||||||
Construction loans | 90,851 | — | 90,851 | ||||||||||||||
Total commercial loans | 6,416,846 | 7,065,056 | 13,481,902 | ||||||||||||||
Residential mortgage loans | 2,961,002 | 894,054 | 3,855,056 | ||||||||||||||
Consumer and other loans: | |||||||||||||||||
Cash surrender value | — | 346,613 | 346,613 | ||||||||||||||
Home equity credit lines | — | 177,121 | 177,121 | ||||||||||||||
Home equity loans | 69,794 | — | 69,794 | ||||||||||||||
Other | 841 | — | 841 | ||||||||||||||
Total consumer and other loans | 70,635 | 523,734 | 594,369 | ||||||||||||||
Total loans | $ | 9,448,483 | $ | 8,482,844 | $ | 17,931,327 |
Years Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Loan originations and purchases | |||||||||||||||||||||||
Loan originations: | |||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||
Multi-family loans | $ | 1,026,593 | $ | 793,611 | $ | 1,583,196 | |||||||||||||||||
Commercial real estate loans | 605,531 | 861,040 | 801,784 | ||||||||||||||||||||
Commercial and industrial loans | 1,056,086 | 1,271,773 | 957,722 | ||||||||||||||||||||
Construction loans | 129,595 | 69,790 | 104,530 | ||||||||||||||||||||
Total commercial loans | 2,817,805 | 2,996,214 | 3,447,232 | ||||||||||||||||||||
Residential mortgage loans | 652,501 | 462,618 | 593,642 | ||||||||||||||||||||
Consumer and other loans: | |||||||||||||||||||||||
Cash surrender value | 73,023 | 41,692 | 69,277 | ||||||||||||||||||||
Home equity credit lines | 26,802 | 22,704 | 31,184 | ||||||||||||||||||||
Home equity loans | 2,704 | 11,772 | 9,993 | ||||||||||||||||||||
Total consumer and other loans | 102,529 | 76,168 | 110,454 | ||||||||||||||||||||
Total loan originations | 3,572,835 | 3,535,000 | 4,151,328 | ||||||||||||||||||||
Loan purchases: | |||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||
Multi-family loans | 42,500 | — | — | ||||||||||||||||||||
Commercial real estate loans | — | 19,681 | — | ||||||||||||||||||||
Commercial and industrial loans | 115,920 | 113,308 | 66,072 | ||||||||||||||||||||
Total commercial loans | 158,420 | 132,989 | 66,072 | ||||||||||||||||||||
Residential mortgage loans | — | 294,064 | 447,968 | ||||||||||||||||||||
Total loan purchases | 158,420 | 427,053 | 514,040 | ||||||||||||||||||||
Loans sold | (347,896) | (220,069) | — | ||||||||||||||||||||
Principal repayments | (4,667,506) | (3,658,317) | (3,472,097) | ||||||||||||||||||||
Other items, net (1) | (59,137) | 14,254 | 2,017 | ||||||||||||||||||||
Net loans acquired in acquisition | 447,679 | — | 330,747 | ||||||||||||||||||||
Net increase in loan portfolio | $ | (895,605) | $ | 97,921 | $ | 1,526,035 |
Segment and industry sector | Principal and Interest Deferral | Principal Deferral | Total | Deferred Loan % of Total Loans (1) | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||
Accommodation and food service | $ | 2 | 205 | 207 | 1.0 | % | ||||||||||||||||||||
Arts, entertainment and recreation | 23 | — | 23 | 0.1 | % | |||||||||||||||||||||
Real estate and rental | 4 | 8 | 12 | 0.1 | % | |||||||||||||||||||||
Total deferred commercial and industrial | 29 | 213 | 242 | 1.2 | % | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Office | 4 | 52 | 56 | 0.3 | % | |||||||||||||||||||||
Accommodation and food service | — | 66 | 66 | 0.3 | % | |||||||||||||||||||||
Other | — | 4 | 4 | — | % | |||||||||||||||||||||
Total deferred commercial real estate | 4 | 122 | 126 | 0.6 | % | |||||||||||||||||||||
Construction | — | — | — | — | % | |||||||||||||||||||||
Multi-family | 52 | 212 | 264 | 1.3 | % | |||||||||||||||||||||
Total deferred commercial loans | 85 | 547 | 632 | 3.0 | % | |||||||||||||||||||||
Residential and consumer | 124 | 0 | 124 | 0.6 | % | |||||||||||||||||||||
Total deferred loans (2) | $ | 209 | 547 | 756 | 3.6 | % | ||||||||||||||||||||
(1) Percentage calculated using total loan balance as of December 31, 2020 | ||||||||||||||||||||||||||
(2) Of the total deferred loans, approximately 25% of the deferments expire by the second quarter of 2021, 36% in the second half of 2021 with the remainder expiring in January 2022. |
Loans Delinquent For | |||||||||||||||||||||||||||||||||||
60-89 Days | 90 Days and Over | Total | |||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||||
Multi-family loans | — | $ | — | 11 | $ | 32,884 | 11 | $ | 32,884 | ||||||||||||||||||||||||||
Commercial real estate loans | 7 | 2,450 | 9 | 6,356 | 16 | 8,806 | |||||||||||||||||||||||||||||
Commercial and industrial loans | 8 | 3,116 | 10 | 1,769 | 18 | 4,885 | |||||||||||||||||||||||||||||
Construction loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial loans | 15 | 5,566 | 30 | 41,009 | 45 | 46,575 | |||||||||||||||||||||||||||||
Residential mortgage loans | 24 | 4,258 | 114 | 29,124 | 138 | 33,382 | |||||||||||||||||||||||||||||
Consumer and other loans | 13 | 1,476 | 25 | 1,984 | 38 | 3,460 | |||||||||||||||||||||||||||||
Total | 52 | $ | 11,300 | 169 | $ | 72,117 | 221 | $ | 83,417 | ||||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||||
Multi-family loans | 1 | $ | 1,946 | 6 | $ | 22,055 | 7 | $ | 24,001 | ||||||||||||||||||||||||||
Commercial real estate loans | 1 | 525 | 6 | 3,787 | 7 | 4,312 | |||||||||||||||||||||||||||||
Commercial and industrial loans | 7 | 2,767 | 11 | 5,053 | 18 | 7,820 | |||||||||||||||||||||||||||||
Construction loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial loans | 9 | 5,238 | 23 | 30,895 | 32 | 36,133 | |||||||||||||||||||||||||||||
Residential mortgage loans | 28 | 6,195 | 120 | 27,729 | 148 | 33,924 | |||||||||||||||||||||||||||||
Consumer and other loans | 10 | 1,174 | 27 | 1,330 | 37 | 2,504 | |||||||||||||||||||||||||||||
Total | 47 | $ | 12,607 | 170 | $ | 59,954 | 217 | $ | 72,561 |
December 31, | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Non-accrual loans: | |||||||||||||||||||||||||||||||||||||||||
Multi-family loans | $ | 35,567 | $ | 23,322 | $ | 33,940 | $ | 14,978 | $ | 482 | |||||||||||||||||||||||||||||||
Commercial real estate loans | 15,894 | 11,945 | 12,391 | 34,043 | 9,205 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial loans | 9,212 | 12,482 | 19,394 | 9,989 | 4,659 | ||||||||||||||||||||||||||||||||||||
Construction loans | — | — | 227 | 295 | — | ||||||||||||||||||||||||||||||||||||
Total commercial loans | 60,673 | 47,749 | 65,952 | 59,305 | 14,346 | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 43,958 | 45,627 | 55,801 | 71,015 | 73,632 | ||||||||||||||||||||||||||||||||||||
Consumer and other loans | 2,494 | 1,939 | 3,408 | 6,439 | 7,586 | ||||||||||||||||||||||||||||||||||||
Total non-accrual loans | 107,125 | 95,315 | 125,161 | 136,759 | 95,564 | ||||||||||||||||||||||||||||||||||||
Real estate owned and other repossessed assets | 7,115 | 13,538 | 6,911 | 5,830 | 4,492 | ||||||||||||||||||||||||||||||||||||
Performing troubled debt restructurings | 9,232 | 13,084 | 13,620 | 10,957 | 9,445 | ||||||||||||||||||||||||||||||||||||
Total non-performing assets | $ | 123,472 | $ | 121,937 | $ | 145,692 | $ | 153,546 | $ | 109,501 | |||||||||||||||||||||||||||||||
Total non-accrual loans to total loans | 0.51 | % | 0.44 | % | 0.58 | % | 0.68 | % | 0.50 | % | |||||||||||||||||||||||||||||||
Total non-performing assets to total assets | 0.47 | % | 0.46 | % | 0.56 | % | 0.61 | % | 0.47 | % |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Allowance balance (beginning of period) | $ | 228,120 | $ | 235,817 | $ | 230,969 | $ | 228,373 | $ | 218,505 | |||||||||||||||||||||||||||||||
Adjustment for adoption of ASC 326 | (3,551) | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Provision for credit losses | 64,890 | (1,000) | 12,000 | 16,250 | 19,750 | ||||||||||||||||||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||||||||||||||
Multi-family loans | (4,631) | (2,973) | (2,603) | (6) | (161) | ||||||||||||||||||||||||||||||||||||
Commercial real estate loans | (521) | (151) | (7,200) | (8,072) | (455) | ||||||||||||||||||||||||||||||||||||
Commercial and industrial loans | (12,005) | (6,833) | (7,078) | (5,656) | (4,485) | ||||||||||||||||||||||||||||||||||||
Construction loans | — | — | — | (100) | (52) | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans | (1,190) | (2,241) | (5,246) | (4,875) | (9,425) | ||||||||||||||||||||||||||||||||||||
Consumer and other loans | (41) | (934) | (1,963) | (500) | (419) | ||||||||||||||||||||||||||||||||||||
Total charge-offs | (18,388) | (13,132) | (24,090) | (19,209) | (14,997) | ||||||||||||||||||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||||||||||||||
Multi-family loans | 1,965 | 1,244 | 17 | 1,677 | 1,885 | ||||||||||||||||||||||||||||||||||||
Commercial real estate loans | 412 | 2,204 | 5,213 | 549 | 689 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial loans | 4,459 | 1,203 | 9,478 | 200 | 541 | ||||||||||||||||||||||||||||||||||||
Construction loans | — | — | — | — | 267 | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 677 | 1,448 | 2,193 | 2,816 | 1,631 | ||||||||||||||||||||||||||||||||||||
Consumer and other loans | 222 | 336 | 37 | 313 | 102 | ||||||||||||||||||||||||||||||||||||
Total recoveries | 7,735 | 6,435 | 16,938 | 5,555 | 5,115 | ||||||||||||||||||||||||||||||||||||
Net charge-offs | (10,653) | (6,697) | (7,152) | (13,654) | (9,882) | ||||||||||||||||||||||||||||||||||||
Allowance at acquisition on loans purchased with credit deterioration | 4,180 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Allowance balance (end of period) | $ | 282,986 | $ | 228,120 | $ | 235,817 | $ | 230,969 | $ | 228,373 | |||||||||||||||||||||||||||||||
Total loans outstanding | $ | 20,872,755 | $ | 21,703,269 | $ | 21,627,764 | $ | 20,090,848 | $ | 18,810,702 | |||||||||||||||||||||||||||||||
Average loans outstanding | 21,040,964 | 21,576,829 | 20,498,857 | 19,414,842 | 17,479,932 | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans as a percent of total loans outstanding | 1.36 | % | 1.05 | % | 1.09 | % | 1.15 | % | 1.21 | % | |||||||||||||||||||||||||||||||
Net loans charged off as a percent of average loans outstanding | 0.05 | % | 0.03 | % | 0.03 | % | 0.07 | % | 0.06 | % | |||||||||||||||||||||||||||||||
Allowance for credit losses on loans to non-performing loans (1) | 243.21 | % | 210.70 | % | 170.22 | % | 157.46 | % | 220.18 | % |
December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Percent of Loans in Each Category to Total Loans | Allowance for Loan Losses | Percent of Loans in Each Category to Total Loans | Allowance for Loan Losses | Percent of Loans in Each Category to Total Loans | Allowance for Loan Losses | Percent of Loans in Each Category to Total Loans | Allowance for Loan Losses | Percent of Loans in Each Category to Total Loans | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
End of period allocated to: | ||||||||||||||||||||||||||||||||||||||||||||
Multi-family loans | $ | 56,731 | 34.1 | % | $ | 74,099 | 36.0 | % | $ | 82,876 | 37.7 | % | $ | 81,469 | 38.8 | % | $ | 95,561 | 39.6 | % | ||||||||||||||||||||||||
Commercial real estate loans | 115,918 | 23.7 | 50,925 | 22.3 | 48,449 | 22.1 | 56,137 | 22.6 | 52,796 | 23.7 | ||||||||||||||||||||||||||||||||||
Commercial and industrial loans | 79,327 | 17.1 | 74,396 | 13.6 | 71,084 | 11.1 | 54,563 | 8.1 | 43,492 | 6.8 | ||||||||||||||||||||||||||||||||||
Construction loans | 7,267 | 2.0 | 6,816 | 1.2 | 7,486 | 1.1 | 11,609 | 2.1 | 11,653 | 1.7 | ||||||||||||||||||||||||||||||||||
Residential mortgage loans | 19,941 | 19.7 | 17,391 | 23.7 | 20,776 | 24.8 | 21,835 | 25.0 | 19,831 | 25.0 | ||||||||||||||||||||||||||||||||||
Consumer and other loans | 3,802 | 3.4 | 2,548 | 3.2 | 3,102 | 3.2 | 3,099 | 3.4 | 2,850 | 3.2 | ||||||||||||||||||||||||||||||||||
Unallocated | — | 1,945 | 2,044 | 2,257 | 2,190 | |||||||||||||||||||||||||||||||||||||||
Total allowance | $ | 282,986 | 100.0 | % | $ | 228,120 | 100.0 | % | $ | 235,817 | 100.0 | % | $ | 230,969 | 100.0 | % | $ | 228,373 | 100.0 | % |
At December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Equity securities | $ | 34,801 | 36,000 | 5,096 | 6,039 | 5,001 | 5,793 | ||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 4,260 | 4,482 | — | — | — | — | ||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal National Mortgage Association | 1,167,057 | 1,205,426 | 1,159,446 | 1,178,049 | 980,546 | 968,556 | |||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 1,286,195 | 1,317,052 | 1,223,587 | 1,240,379 | 988,348 | 986,650 | |||||||||||||||||||||||||||||
Government National Mortgage Association | 225,810 | 231,477 | 273,676 | 276,962 | 165,211 | 166,956 | |||||||||||||||||||||||||||||
Total mortgage-backed securities available-for-sale | 2,679,062 | 2,753,955 | 2,656,709 | 2,695,390 | 2,134,105 | 2,122,162 | |||||||||||||||||||||||||||||
Total debt securities available-for-sale | $ | 2,683,322 | 2,758,437 | 2,656,709 | 2,695,390 | 2,134,105 | 2,122,162 | ||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 109,016 | 112,414 | 58,624 | 58,312 | 41,258 | 40,022 | ||||||||||||||||||||||||||||
Municipal bonds | 246,601 | 261,591 | 143,151 | 146,905 | 25,513 | 26,455 | |||||||||||||||||||||||||||||
Corporate and other debt securities | 130,565 | 149,713 | 72,537 | 98,695 | 50,441 | 87,033 | |||||||||||||||||||||||||||||
Total debt securities | 486,182 | 523,718 | 274,312 | 303,912 | 117,212 | 153,510 | |||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal National Mortgage Association | 413,426 | 434,331 | 542,210 | 549,862 | 954,548 | 932,396 | |||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 308,219 | 317,686 | 261,945 | 265,349 | 401,636 | 392,335 | |||||||||||||||||||||||||||||
Government National Mortgage Association | 43,290 | 45,137 | 70,348 | 70,981 | 81,741 | 80,323 | |||||||||||||||||||||||||||||
Total mortgage-backed securities held-to-maturity | 764,935 | 797,154 | 874,503 | 886,192 | 1,437,925 | 1,405,054 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 1,251,117 | 1,320,872 | 1,148,815 | 1,190,104 | 1,555,137 | 1,558,564 | |||||||||||||||||||||||||||||
Allowance for credit losses | 3,264 | — | — | — | — | — | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity, net of allowance for credit losses | $ | 1,247,853 | 1,320,872 | 1,148,815 | 1,190,104 | 1,555,137 | 1,558,564 | ||||||||||||||||||||||||||||
Total securities | $ | 3,965,976 | 4,115,309 | 3,810,620 | 3,891,533 | 3,694,243 | 3,686,519 |
One Year or Less | More than One Year through Five Years | More than Five Years through Ten Years | More than Ten Years | Total Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Weighted Average Coupon | Carrying Value | Weighted Average Coupon | Carrying Value | Weighted Average Coupon | Carrying Value | Weighted Average Coupon | Carrying Value | Fair Value | Weighted Average Coupon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ | — | — | % | $ | — | — | % | $ | 2,500 | 7.00 | % | $ | 32,301 | 3.41 | % | $ | 34,801 | $ | 36,000 | 3.66 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government sponsored enterprises | — | — | % | — | — | % | 1,446 | 2.83 | % | 2,814 | 2.74 | % | 4,260 | 4,482 | 2.77 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | — | — | 4,114 | 2.81 | 629,532 | 1.05 | 652,549 | 2.29 | 1,286,195 | 1,317,052 | 1.69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal National Mortgage Association | 463 | 2.49 | 2,726 | 2.62 | 161,384 | 1.02 | 1,002,484 | 2.01 | 1,167,057 | 1,205,426 | 1.88 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government National Mortgage Association | — | — | 248 | 2.48 | 2,823 | 1.17 | 222,739 | 2.52 | 225,810 | 231,477 | 2.51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 463 | 2.49 | 7,088 | 2.72 | 793,739 | 1.05 | 1,877,772 | 2.17 | 2,679,062 | 2,753,955 | 1.84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | $ | 463 | 2.49 | % | $ | 7,088 | 2.72 | % | $ | 795,185 | 1.05 | % | $ | 1,880,586 | 2.17 | % | $ | 2,683,322 | $ | 2,758,437 | 1.84 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | — | — | % | $ | — | — | % | $ | 49,087 | 1.46 | % | $ | 59,929 | 1.91 | % | $ | 109,016 | $ | 112,414 | 1.71 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | 52,178 | 1.72 | 10,248 | 1.34 | 6,731 | 5.63 | 177,444 | 2.72 | 246,601 | 261,591 | 2.53 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other debt securities | — | — | — | — | 80,489 | 4.31 | 50,076 | 1.71 | 130,565 | 149,713 | 3.31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 52,178 | 1.72 | 10,248 | 1.34 | 136,307 | 3.35 | 287,449 | 2.38 | 486,182 | 523,718 | 2.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | — | — | 402 | 3.42 | 160,473 | 2.66 | 147,344 | 1.53 | 308,219 | 317,686 | 2.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal National Mortgage Association | — | — | — | — | 188,727 | 2.42 | 224,699 | 2.76 | 413,426 | 434,331 | 2.60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government National Mortgage Association | — | — | — | — | 4,965 | 2.39 | 38,325 | 2.69 | 43,290 | 45,137 | 2.66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | — | — | 402 | 3.42 | 354,165 | 2.53 | 410,368 | 2.31 | 764,935 | 797,154 | 2.41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total held-to-maturity debt securities | $ | 52,178 | 1.72 | % | $ | 10,650 | 1.42 | % | $ | 490,472 | 2.76 | % | $ | 697,817 | 2.34 | % | $ | 1,251,117 | $ | 1,320,872 | 2.47 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 3,264 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total held-to-maturity debt securities, net of allowance for credit losses | $ | 1,247,853 |
At December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Percent of Total Deposits | Weighted Average Rate | Balance | Percent of Total Deposits | Weighted Average Rate | Balance | Percent of Total Deposits | Weighted Average Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Checking accounts | $ | 3,663,073 | 18.8 | % | — | % | $ | 2,472,232 | 13.8 | % | — | % | $ | 2,535,848 | 14.4 | % | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Checking accounts | 6,043,393 | 30.9 | 0.49 | 5,512,979 | 30.9 | 1.36 | 4,783,563 | 27.2 | 1.53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market deposits | 5,037,327 | 25.8 | 0.42 | 3,817,718 | 21.4 | 1.50 | 3,641,070 | 20.7 | 1.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | 2,063,447 | 10.6 | 0.48 | 2,050,101 | 11.5 | 0.86 | 2,048,941 | 11.7 | 0.64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | 2,718,179 | 13.9 | 0.97 | 4,007,308 | 22.4 | 1.67 | 4,570,847 | 26.0 | 1.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 19,525,419 | 100.0 | % | 0.45 | % | $ | 17,860,338 | 100.0 | % | 1.21 | % | $ | 17,580,269 | 100.0 | % | 1.16 | % |
Name | Investors Bancorp Fees Earned or Paid in Cash ($) | Investors Bank Fees Earned or Paid in Cash ($) | Stock Awards ($) (1) | Option Awards ($) (2) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) (3) | Total ($) | |||||||||||||||||||||
Robert C. Albanese | 74,000 | 73,200 | — | — | — | 654 | 147,854 | |||||||||||||||||||||
Dennis M. Bone | 96,500 | 73,200 | — | — | — | 495 | 170,195 | |||||||||||||||||||||
Doreen R. Byrnes | 66,500 | 73,200 | — | — | — | 17,905 | 157,605 | |||||||||||||||||||||
William V. Cosgrove | 56,500 | 73,200 | — | — | — | 30,129 | 159,829 | |||||||||||||||||||||
James J. Garibaldi | 34,000 | 73,200 | — | — | — | — | 107,200 | |||||||||||||||||||||
John E. Harmon, Sr. | 44,292 | 67,100 | — | — | — | — | 111,392 | |||||||||||||||||||||
Michele N. Siekerka | 66,500 | 73,200 | — | — | — | 172 | 139,872 | |||||||||||||||||||||
Paul N. Stathoulopoulos | 64,000 | 73,200 | — | — | — | 5,412 | 142,612 | |||||||||||||||||||||
Kim Wales | 48,667 | 67,100 | — | — | — | — | 115,767 | |||||||||||||||||||||
James H. Ward III | 74,000 | 73,200 | — | — | — | — | 147,200 |
(1) | Messrs. Albanese, Bone, Cosgrove, Garibaldi, Stathoulopoulos and Ward and Mses. Byrnes and Siekerka each had no unvested stock awards at December 31, 2021. |
(2) | Messrs. Albanese, Bone, Cosgrove, Garibaldi, Stathoulopoulos and Ward and Mses. Byrnes and Siekerka each had no unexercised stock option awards at December 31, 2021. |
(3) | This amount includes perquisites and other personal benefits, or property, if the aggregate amount for each director is at least $10,000. Specifically, this amount represents the premiums paid for long term care coverage for Ms. Byrnes and her spouse. In addition, the amount includes automobile allowance and club dues for Mr. Cosgrove. For Messrs. Albanese, Bone and Stathoulopoulos and Ms. Siekerka, this amount includes imputed income with respect to their split dollar life insurance agreements. |
At December 31, | |||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Certificates of Deposit | |||||||||||||||||||||||
0.00% - 0.25% | $ | 297,596 | 238,369 | 355,822 | |||||||||||||||||||
0.26% - 0.50% | 647,849 | 77,234 | 107,088 | ||||||||||||||||||||
0.51% - 1.00% | 743,457 | 116,783 | 157,646 | ||||||||||||||||||||
1.01% - 2.00% | 846,349 | 1,921,656 | 942,149 | ||||||||||||||||||||
2.01% - 3.00% | 179,616 | 1,651,388 | 3,006,347 | ||||||||||||||||||||
Over 3.00% | 3,312 | 1,878 | 1,795 | ||||||||||||||||||||
Total | $ | 2,718,179 | 4,007,308 | 4,570,847 |
Rate Category | Within Three Months | Over Three to Six Months | Over Six Months to One Year | Over One Year to Two Years | Over Two Years to Three Years | Over Three Years | Total | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
0.00% - 0.25% | $ | 100,481 | $ | 62,108 | $ | 131,557 | $ | 1,886 | $ | 1,562 | $ | 2 | $ | 297,596 | ||||||||||||||||||||||||||||||
0.26% - 0.50% | 28,965 | 77,729 | 384,922 | 140,801 | 10,314 | 5,118 | 647,849 | |||||||||||||||||||||||||||||||||||||
0.51% - 1.00% | 58,914 | 207,951 | 424,301 | 26,388 | 11,679 | 14,224 | 743,457 | |||||||||||||||||||||||||||||||||||||
1.01% - 2.00% | 343,006 | 365,892 | 37,118 | 93,270 | 2,876 | 4,187 | 846,349 | |||||||||||||||||||||||||||||||||||||
2.01% - 3.00% | 88,405 | 51,794 | 22,660 | 7,360 | 5,166 | 4,231 | 179,616 | |||||||||||||||||||||||||||||||||||||
Over 3.00% | 247 | — | 800 | 1,597 | 296 | 372 | 3,312 | |||||||||||||||||||||||||||||||||||||
Total | $ | 620,018 | $ | 765,474 | $ | 1,001,358 | $ | 271,302 | $ | 31,893 | $ | 28,134 | $ | 2,718,179 |
Number of Securities to be Issued Upon Exercise of Outstanding Options and Rights (1) | Weighted Average Exercise Price (2) | Number of Securities Remaining Available for Issuance Under Plan | ||||||||||
Equity compensation plans approved by stockholders | 5,570,858 | $ | 12.46 | 17,529,907 | ||||||||
Equity compensation plans not approved by stockholders | — | — | — | |||||||||
Total | 5,570,858 | — | 17,529,907 |
(1) | Includes outstanding stock options to purchase 120,564 shares of common stock granted under the 2006 Equity Incentive Plan. |
(2) | With respect to the stock options, the weighted average exercise price reflects an exercise price of $8.15 for 73,491 stock options granted in 2013; an exercise price of $10.28 for 47,073 stock options granted in 2014; an exercise price of $12.54 for 4,241,158 stock options granted in 2015; an exercise price of $11.83 for 110,560 stock options granted in 2016; an exercise price of $13.29 for 63,360 stock options granted in 2017; an exercise price of $12.99 for 40,000 stock options granted in 2018 and an exercise price of $12.53 for 995,216 stock options granted in 2019 under the Company’s stock-based compensation plans. |
(3) | Represents the number of available shares that may be granted as stock options and other stock awards under the Company’s stock-based compensation plans. |
Name | Title | ||||
Kevin Cummings | Chairman and Chief Executive Officer | ||||
President and Chief Operating Officer | |||||
Senior Executive Vice President and Chief Lending Officer | |||||
Executive Vice President and Chief Financial Officer | |||||
Senior Executive Vice President and Chief Risk Officer |
At or for the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 2,662,574 | $ | 4,979,201 | $ | 4,930,681 | $ | 4,331,052 | $ | 4,391,420 | ||||||||||||||||||||||||||||||||||
Average balance during period | 4,213,353 | 5,205,066 | 4,655,757 | 4,526,596 | 3,663,087 | |||||||||||||||||||||||||||||||||||||||
Maximum outstanding at any month end | 5,057,338 | 5,723,556 | 5,080,960 | 5,355,298 | 4,391,420 | |||||||||||||||||||||||||||||||||||||||
Weighted average interest rate at end of period | 2.08 | % | 2.06 | % | 2.16 | % | 1.96 | % | 1.79 | % | ||||||||||||||||||||||||||||||||||
Average interest rate during period | 2.13 | % | 2.18 | % | 2.01 | % | 1.88 | % | 1.86 | % |
At or for the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 448,514 | $ | 447,910 | $ | 250,000 | $ | 130,481 | $ | 154,831 | |||||||||||||||||||||||||||||||
Average balance during period | 451,741 | 369,046 | 202,027 | 149,030 | 153,000 | ||||||||||||||||||||||||||||||||||||
Maximum outstanding at any month end | 547,961 | 447,910 | 280,000 | 153,000 | 154,831 | ||||||||||||||||||||||||||||||||||||
Weighted average interest rate at end of period | 1.97 | % | 2.16 | % | 2.67 | % | 1.87 | % | 2.19 | % | |||||||||||||||||||||||||||||||
Average interest rate during period | 2.17 | % | 2.45 | % | 2.68 | % | 2.11 | % | 2.16 | % |
As of December 31, 2020 (1) | ||||||||||||||||||||||||||||||||||||||
Actual | Minimum Capital Requirement with Conservation Buffer | To be Well Capitalized under Prompt Corrective Action Provisions (2) | ||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Bank: | ||||||||||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 2,391,126 | 9.08 | % | $ | 1,053,636 | 4.000 | % | $ | 1,317,045 | 5.00 | % | ||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | 2,391,126 | 11.72 | % | 1,428,527 | 7.000 | % | 1,326,489 | 6.50 | % | |||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 2,391,126 | 11.72 | % | 1,734,640 | 8.500 | % | 1,632,602 | 8.00 | % | |||||||||||||||||||||||||||||
Total Risk-Based Capital | 2,646,520 | 12.97 | % | 2,142,790 | 10.500 | % | 2,040,753 | 10.00 | % | |||||||||||||||||||||||||||||
Investors Bancorp, Inc.: | ||||||||||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 2,674,590 | 10.14 | % | $ | 1,054,677 | 4.000 | % | n/a | n/a | ||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | 2,674,590 | 13.07 | % | 1,432,164 | 7.000 | % | n/a | n/a | ||||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 2,674,590 | 13.07 | % | 1,739,056 | 8.500 | % | n/a | n/a | ||||||||||||||||||||||||||||||
Total Risk-Based Capital | 2,944,128 | 14.39 | % | 2,148,246 | 10.500 | % | n/a | n/a |
What We Do | What We Don’t Do | |
✓ We design our incentive compensation arrangements to appropriately balance risk and financial results in a manner that does not pose undue risk to the Company. ✓ We utilize an independent compensation consultant to annually evaluate NEO cash and stock compensation based on the pay levels of comparable executives in fifteen-to-twenty ✓ We pay incentive compensation based on measurable and verifiable corporate performance objectives. ✓ We consider multi-year financial performance when awarding long-term stock compensation. ✓ We conservatively vest stock compensation (generally five years). ✓ We require each of our NEOs to own Company common stock valued at a minimum of three-to-five ✓ We maintain a clawback policy for bonus and other incentive compensation paid to executive officers, which mitigates risk-taking behavior. ✓ We will place greater weight on performance when granting future equity awards. | ✗ We don’t modify annual incentive compensation performance objectives during the year in which those objectives apply. ✗ We don’t require the base salaries and total cash compensation of our NEOs to attain any particular percentile position versus the compensation of executives in our peer comparator companies. ✗ We don’t allow directors and executive officers to engage in or effect transactions designed to hedge or offset economic risk of owning shares of our stock. ✗ We don’t allow directors and executive officers to hold company stock in a margin account or pledge securities as collateral. ✗ We don’t enter into new change of control agreements with single triggers. ✗ We have only limited perquisites. ✗ We don’t enter into new employment contracts with tax gross up provisions. |
Index | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | |||||||||||||||||||||||||||||
Investors Bancorp, Inc. | 100.00 | 114.66 | 116.89 | 90.19 | 107.25 | 100.02 | |||||||||||||||||||||||||||||
SNL U.S. Bank and Thrift | 100.00 | 126.25 | 148.45 | 123.32 | 166.67 | 144.61 | |||||||||||||||||||||||||||||
SNL U.S. Thrift | 100.00 | 122.49 | 121.60 | 102.42 | 126.10 | 116.21 |
Period | Total Number of Shares Purchased (1)(2) | Average Price paid Per Share | As part of Publicly Announced Plans or Programs | Yet to be Purchased Under the Plans or Programs | ||||||||||||||||||||||
October 1, 2020 through October 31, 2020 | 2,722 | $ | 7.67 | — | 14,607,794 | |||||||||||||||||||||
November 1, 2020 through November 30, 2020 | 1,545 | $ | 8.95 | — | 14,607,794 | |||||||||||||||||||||
December 1, 2020 through December 31, 2020 | 1,982,835 | $ | 10.32 | 1,982,592 | 12,625,202 | |||||||||||||||||||||
Total | 1,987,102 | $ | 10.32 | 1,982,592 |
At December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Selected Financial Condition Data: | |||||||||||||||||||||||||||||
Total assets | $ | 26,023,159 | $ | 26,698,766 | $ | 26,229,008 | $ | 25,129,244 | $ | 23,174,675 | |||||||||||||||||||
Loans receivable, net | 20,580,451 | 21,476,056 | 21,378,136 | 19,852,101 | 18,569,855 | ||||||||||||||||||||||||
Loans held-for-sale | 30,357 | 29,797 | 4,074 | 5,185 | 38,298 | ||||||||||||||||||||||||
Equity securities | 36,000 | 6,039 | 5,793 | 5,701 | 6,660 | ||||||||||||||||||||||||
Debt securities held-to-maturity, net | 1,247,853 | 1,148,815 | 1,555,137 | 1,796,621 | 1,755,556 | ||||||||||||||||||||||||
Debt securities available-for-sale, at estimated fair value | 2,758,437 | 2,695,390 | 2,122,162 | 1,982,026 | 1,653,773 | ||||||||||||||||||||||||
Bank owned life insurance | 223,714 | 218,517 | 211,914 | 155,635 | 161,940 | ||||||||||||||||||||||||
Deposits | 19,525,419 | 17,860,338 | 17,580,269 | 17,357,697 | 15,280,833 | ||||||||||||||||||||||||
Borrowed funds | 3,295,790 | 5,827,111 | 5,435,681 | 4,461,533 | 4,546,251 | ||||||||||||||||||||||||
Goodwill | 94,535 | 82,546 | 82,546 | 77,571 | 77,571 | ||||||||||||||||||||||||
Stockholders’ equity | 2,710,003 | 2,621,950 | 3,005,330 | 3,125,451 | 3,123,245 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Selected Operating Data: | |||||||||||||||||||||||||||||||||||
Interest and dividend income | $ | 980,894 | $ | 1,040,219 | $ | 968,416 | $ | 881,683 | $ | 793,521 | |||||||||||||||||||||||||
Interest expense | 255,208 | 385,146 | 288,399 | 201,907 | 153,336 | ||||||||||||||||||||||||||||||
Net interest income | 725,686 | 655,073 | 680,017 | 679,776 | 640,185 | ||||||||||||||||||||||||||||||
Provision for credit losses | 70,158 | (1,000) | 12,000 | 16,250 | 19,750 | ||||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 655,528 | 656,073 | 668,017 | 663,526 | 620,435 | ||||||||||||||||||||||||||||||
Non-interest income | 90,518 | 53,413 | 10,081 | 35,637 | 37,201 | ||||||||||||||||||||||||||||||
Non-interest expenses | 449,505 | 422,754 | 407,680 | 418,574 | 358,564 | ||||||||||||||||||||||||||||||
Income before income tax expense | 296,541 | 286,732 | 270,418 | 280,589 | 299,072 | ||||||||||||||||||||||||||||||
Income tax expense | 74,961 | 91,248 | 67,842 | 153,845 | 106,947 | ||||||||||||||||||||||||||||||
Net income | $ | 221,580 | $ | 195,484 | $ | 202,576 | $ | 126,744 | $ | 192,125 | |||||||||||||||||||||||||
Earnings per share — basic | $ | 0.94 | $ | 0.75 | $ | 0.72 | $ | 0.44 | $ | 0.65 | |||||||||||||||||||||||||
Earnings per share — diluted | $ | 0.94 | $ | 0.74 | $ | 0.72 | $ | 0.43 | $ | 0.64 |
At or for the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
Selected Financial Ratios and Other Data: | ||||||||||||||||||||||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||||||||
Return on assets (ratio of net income to average total assets) | 0.82 | % | 0.73 | % | 0.80 | % | 0.52 | % | 0.88 | % | ||||||||||||||||||||||
Return on equity (ratio of net income to average equity) | 8.35 | % | 6.64 | % | 6.57 | % | 4.00 | % | 6.06 | % | ||||||||||||||||||||||
Net interest rate spread (1) | 2.56 | % | 2.19 | % | 2.46 | % | 2.67 | % | 2.83 | % | ||||||||||||||||||||||
Net interest margin (2) | 2.80 | % | 2.54 | % | 2.76 | % | 2.89 | % | 3.04 | % | ||||||||||||||||||||||
Efficiency ratio (3) | 55.07 | % | 59.67 | % | 59.08 | % | 58.51 | % | 52.93 | % | ||||||||||||||||||||||
Non-interest expenses to average total assets | 1.66 | % | 1.58 | % | 1.61 | % | 1.73 | % | 1.64 | % | ||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 1.25x | 1.23x | 1.25x | 1.26x | 1.29x | |||||||||||||||||||||||||||
Dividend payout ratio (4) | 51.06 | % | 58.67 | % | 52.78 | % | 75.00 | % | 40.00 | % | ||||||||||||||||||||||
Cash dividends paid | $ | 0.48 | $ | 0.44 | $ | 0.38 | $ | 0.33 | $ | 0.26 | ||||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||
Non-performing assets to total assets | 0.47 | % | 0.46 | % | 0.56 | % | 0.61 | % | 0.47 | % | ||||||||||||||||||||||
Non-accrual loans to total loans | 0.51 | % | 0.44 | % | 0.58 | % | 0.68 | % | 0.50 | % | ||||||||||||||||||||||
Allowance for loan losses to non-performing loans (5) | 243.21 | % | 210.70 | % | 170.22 | % | 157.46 | % | 220.18 | % | ||||||||||||||||||||||
Allowance for loan losses to total loans | 1.36 | % | 1.05 | % | 1.09 | % | 1.15 | % | 1.21 | % | ||||||||||||||||||||||
Capital Ratios: | ||||||||||||||||||||||||||||||||
Tier 1 leverage ratio (6) | 9.08 | % | 8.22 | % | 10.28 | % | 11.00 | % | 12.03 | % | ||||||||||||||||||||||
Common equity tier 1 risk-based (6) | 11.72 | % | 11.03 | % | 13.41 | % | 13.94 | % | 14.75 | % | ||||||||||||||||||||||
Tier 1 risk-based capital (6) | 11.72 | % | 11.03 | % | 13.41 | % | 13.94 | % | 14.75 | % | ||||||||||||||||||||||
Total-risk-based capital (6) | 12.97 | % | 12.18 | % | 14.60 | % | 15.13 | % | 15.99 | % | ||||||||||||||||||||||
Equity to total assets | 10.41 | % | 9.82 | % | 11.46 | % | 12.44 | % | 13.48 | % | ||||||||||||||||||||||
Tangible equity to tangible assets (7) | 10.03 | % | 9.49 | % | 11.12 | % | 12.10 | % | 13.10 | % | ||||||||||||||||||||||
Average equity to average assets | 9.82 | % | 11.00 | % | 12.15 | % | 13.06 | % | 14.52 | % | ||||||||||||||||||||||
Other Data: | ||||||||||||||||||||||||||||||||
Book value per common share (7) | $ | 11.43 | $ | 11.11 | $ | 10.95 | $ | 10.64 | $ | 10.53 | ||||||||||||||||||||||
Tangible book value per common share (7) | $ | 10.97 | $ | 10.69 | $ | 10.59 | $ | 10.31 | $ | 10.18 | ||||||||||||||||||||||
Number of full service offices | 156 | 147 | 151 | 156 | 151 | |||||||||||||||||||||||||||
Full time equivalent employees | 1,806 | 1,761 | 1,928 | 1,931 | 1,829 |
BankUnited—FL | Signature Bank—NY | |
Commerce Bancshares, Inc.—MO | Sterling Bancorp—NY | |
First Horizon National Corporation —TN | UMB Financial Corporation—MO | |
Flagstar Bancorp—MI | Umpqua Holdings Corporation—OR | |
F.N.B Corporation—PA | Valley National Bancorp—NJ | |
Fulton Financial Corporation— PA | Webster Financial Corporation—CT | |
New York Community Bancorp, Inc.—NY | Western Alliance Bancorporation—AZ | |
Old National Bancorp—IN | Wintrust Financial Corporation—IL | |
Prosperity Bancshares, Inc.—TX |
Executive Officer | 2021 Salary ($) | 2020 Salary ($) | ||||||
Kevin Cummings | 1,075,000 | 1,075,000 | ||||||
Domenick A. Cama | 725,000 | 725,000 | ||||||
Richard S. Spengler | 480,000 | 465,000 | ||||||
Sean Burke | 475,000 | 450,000 | ||||||
Paul Kalamaras | 450,000 | 450,000 |
ISBC 2020 | ISBC 2021 | |||||||
Net Income (in millions) | $ | 221.6 | $ | 313.3 | ||||
EPS | $ | 0.94 | $ | 1.33 |
ISBC 2021 | Peers 2021 | |||||||
ROAA – Return on Average Assets | 1.17 | % | 1.16 | % | ||||
Credit Quality – Non Performing Assets/ Assets | 0.42 | % | 0.43 | % | ||||
Capital Levels – Common Equity Tier 1 Ratio | 12.82 | % | 11.58 | % | ||||
Total Shareholder Return – Year Ended December 31, 2021 | 15.22 | % | 4.96 | % |
Executive Officer | Threshold (1) | Target (1) | Maximum (1) | |||||||||
Kevin Cummings | 87.5 | % | 131.3 | % | 175.0 | % | ||||||
Domenick A. Cama | 70.0 | % | 105.0 | % | 140.0 | % | ||||||
Richard S. Spengler | 52.5 | % | 78.8 | % | 105.0 | % | ||||||
Sean Burke | 52.5 | % | 78.8 | % | 105.0 | % | ||||||
Paul Kalamaras | 52.5 | % | 78.8 | % | 105.0 | % |
(1) | Assumed 50%, 75% and 100% achievement of all individual goals at Threshold, Target and Maximum, respectively. |
Executive Officer | Corporate Financial Targets | Individual Goals | ||||||
Kevin Cummings | 100 | % | 0 | % | ||||
Domenick A. Cama | 100 | % | 0 | % | ||||
Richard S. Spengler | 40 | % | 60 | % | ||||
Sean Burke | 60 | % | 40 | % | ||||
Paul Kalamaras | 30 | % | 70 | % |
Metric | Threshold 50% Payout | Target 75% Payout | Maximum 100% Payout | |||||||||
Net income (in millions) | $ | 225 | $ | 245 | $ | 265 | ||||||
Earnings per share | $ | 0.97 | $ | 1.05 | $ | 1.14 | ||||||
Return on average assets | 0.82 | % | 0.89 | % | 0.97 | % | ||||||
Loan quality | 10.00 | % | 7.00 | % | 5.00 | % |
($ in millions) | Net Income | EPS | ||||||
Reported | $ | 313.3 | $ | 1.33 | ||||
Cost of early extinguishment of wholesale funding | 10.2 | 0.04 | ||||||
Branch rationalization costs | 6.6 | 0.03 | ||||||
Acquisition-related expenses | 11.5 | 0.04 | ||||||
Shareholder matter | 0.3 | 0.00 | ||||||
Tax impact | (7.7 | ) | (0.03 | ) | ||||
Adjusted | $ | 334.2 | $ | 1.41 |
EPS (adjusted) | ROAA (adjusted) | Loan Quality | ||||||||||
Achievement | 100 | % | 100 | % | 100 | % | ||||||
Executive Officer | EPS Weighting | ROAA Weighting | Loan Quality Weighting | |||||||||
Kevin Cummings | 50 | % | 30 | % | 20 | % | ||||||
Domenick A. Cama | 50 | % | 30 | % | 20 | % | ||||||
Richard S. Spengler | 50 | % | 50 | % | n/a | |||||||
Sean Burke | 50 | % | 50 | % | n/a | |||||||
Paul Kalamaras | 50 | % | 50 | % | n/a |
December 31, 2020 | December 31, 2019 | ||||||||||
(Dollars in thousands) | |||||||||||
Commercial Loans: | |||||||||||
Multi-family loans | $ | 7,122,840 | 7,813,236 | ||||||||
Commercial real estate loans | 4,947,212 | 4,831,347 | |||||||||
Commercial and industrial loans | 3,575,641 | 2,951,306 | |||||||||
Construction loans | 404,367 | 262,866 | |||||||||
Total commercial loans | 16,050,060 | 15,858,755 | |||||||||
Residential mortgage loans | 4,119,894 | 5,144,718 | |||||||||
Consumer and other | 702,801 | 699,796 | |||||||||
Total Loans | 20,872,755 | 21,703,269 | |||||||||
Deferred fees, premiums and other, net | (9,318) | 907 | |||||||||
Allowance for loan losses | (282,986) | (228,120) | |||||||||
Net loans | $ | 20,580,451 | $ | 21,476,056 |
Bonus Guidelines | Achievement | |||||||||||||||||||||||||||||||
Executive Officer | Eligible Earnings ($) | Maximum Bonus (%) | Corporate Goals | Individual Goals | Corporate Goals | Individual Goals | Cash Incentive ($) | Percent of Salary | ||||||||||||||||||||||||
Kevin Cummings | 1,075,000 | 175 | % | 100 | % | 0 | % | 100 | % | NA | 1,881,250 | 175 | % | |||||||||||||||||||
Domenick A. Cama | 725,000 | 140 | % | 100 | % | 0 | % | 100 | % | NA | 1,015,000 | 140 | % | |||||||||||||||||||
Richard S. Spengler | 480,000 | 105 | % | 40 | % | 60 | % | 100 | % | 100 | % | 504,000 | 105 | % | ||||||||||||||||||
Sean Burke | 475,000 | 105 | % | 60 | % | 40 | % | 100 | % | 100 | % | 498,750 | 105 | % | ||||||||||||||||||
Paul Kalamaras | 450,000 | 105 | % | 30 | % | 70 | % | 100 | % | 100 | % | 472,500 | 105 | % |
December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
# of Loans | Amount | # of Loans | Amount | # of Loans | Amount | # of Loans | Amount | # of Loans | Amount | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
Multi-family | 15 | $ | 35.6 | 13 | $ | 51.1 | 14 | $ | 48.3 | 9 | $ | 23.4 | 8 | $ | 23.3 | |||||||||||||||||||||||||||||
Commercial real estate | 29 | 15.9 | 28 | 17.8 | 22 | 12.3 | 21 | 11.4 | 22 | 12.0 | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 21 | 9.2 | 19 | 10.9 | 29 | 15.6 | 22 | 17.0 | 18 | 12.5 | ||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total commercial loans | 65 | 60.7 | 60 | 79.8 | 65 | 76.2 | 52 | 51.8 | 48 | 47.8 | ||||||||||||||||||||||||||||||||||
Residential and consumer | 246 | 46.4 | 250 | 52.2 | 255 | 50.6 | 258 | 46.6 | 260 | 47.5 | ||||||||||||||||||||||||||||||||||
Total non-accrual loans | 311 | $ | 107.1 | 310 | $ | 132.0 | 320 | $ | 126.8 | 310 | $ | 98.4 | 308 | $ | 95.3 | |||||||||||||||||||||||||||||
Accruing troubled debt restructured loans | 47 | $ | 9.2 | 51 | $ | 9.8 | 52 | $ | 12.2 | 55 | $ | 12.8 | 57 | $ | 13.1 | |||||||||||||||||||||||||||||
Non-accrual loans to total loans | 0.51 | % | 0.63 | % | 0.59 | % | 0.46 | % | 0.44 | % | ||||||||||||||||||||||||||||||||||
Allowance for loan losses as a percent of non-accrual loans | 264.17 | % | 217.75 | % | 215.48 | % | 247.22 | % | 239.66 | % | ||||||||||||||||||||||||||||||||||
Allowance for loan losses as a percent of total loans | 1.36 | % | 1.37 | % | 1.28 | % | 1.14 | % | 1.05 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 773,177 | $ | 1,460 | 0.19 | % | $ | 215,447 | $ | 2,805 | 1.30 | % | 212,980 | $ | 2,435 | 1.14 | % | |||||||||||||||||||||||||||||||||||||||
Equity securities | 11,365 | 362 | 3.19 | 5,938 | 143 | 2.41 | 5,754 | 134 | 2.33 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt securities available-for-sale | 2,672,537 | 58,873 | 2.20 | 2,395,047 | 67,822 | 2.83 | 2,042,129 | 46,057 | 2.26 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt securities held-to-maturity, net | 1,184,984 | 34,049 | 2.87 | 1,317,322 | 40,017 | 3.04 | 1,668,106 | 48,989 | 2.94 | |||||||||||||||||||||||||||||||||||||||||||||||
Net loans | 21,040,964 | 871,411 | 4.14 | 21,576,829 | 912,091 | 4.23 | 20,498,857 | 854,595 | 4.17 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock in FHLB | 229,120 | 14,739 | 6.43 | 274,661 | 17,341 | 6.31 | 247,513 | 16,206 | 6.55 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 25,912,147 | 980,894 | 3.79 | 25,785,244 | 1,040,219 | 4.03 | 24,675,339 | 968,416 | 3.92 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-earning assets | 1,096,400 | 975,585 | 707,370 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 27,008,547 | $ | 26,760,829 | $ | 25,382,709 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | $ | 2,039,686 | $ | 12,056 | 0.59 | % | $ | 1,985,142 | $ | 17,148 | 0.86 | % | $ | 2,170,510 | $ | 13,240 | 0.61 | % | ||||||||||||||||||||||||||||||||||||||
Interest-bearing checking | 5,869,801 | 42,014 | 0.72 | 5,020,991 | 84,698 | 1.69 | 4,651,313 | 62,447 | 1.34 | |||||||||||||||||||||||||||||||||||||||||||||||
Money market accounts | 4,367,498 | 42,568 | 0.97 | 3,703,413 | 60,896 | 1.64 | 3,837,174 | 46,394 | 1.21 | |||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | 3,819,029 | 58,951 | 1.54 | 4,609,274 | 99,115 | 2.15 | 4,149,438 | 66,564 | 1.60 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 16,096,014 | 155,589 | 0.97 | 15,318,820 | 261,857 | 1.71 | 14,808,435 | 188,645 | 1.27 | |||||||||||||||||||||||||||||||||||||||||||||||
Borrowed funds | 4,665,094 | 99,619 | 2.14 | 5,611,206 | 123,289 | 2.20 | 4,898,867 | 99,754 | 2.04 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 20,761,108 | 255,208 | 1.23 | 20,930,026 | 385,146 | 1.84 | 19,707,302 | 288,399 | 1.46 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing liabilities | 3,594,290 | 2,887,601 | 2,590,675 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 24,355,398 | 23,817,627 | 22,297,977 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 2,653,149 | 2,943,202 | 3,084,732 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,008,547 | $ | 26,760,829 | $ | 25,382,709 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 725,686 | $ | 655,073 | $ | 680,017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest rate spread (1) | 2.56 | % | 2.19 | % | 2.46 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest-earning assets (2) | $ | 5,151,039 | $ | 4,855,218 | $ | 4,968,037 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (3) | 2.80 | % | 2.54 | % | 2.76 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.25 | 1.23 | 1.25 |
Years Ended December 31, 2020 vs. 2019 | Years Ended December 31, 2019 vs. 2018 | |||||||||||||||||||||||||||||||||||||
Increase (Decrease) Due to | Net Increase (Decrease) | Increase (Decrease) Due to | Net Increase (Decrease) | |||||||||||||||||||||||||||||||||||
Volume | Rate | Volume | Rate | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Interest-earning cash accounts | $ | 7,244 | (8,589) | (1,345) | $ | 28 | 342 | 370 | ||||||||||||||||||||||||||||||
Equities | 131 | 88 | 219 | 4 | 5 | 9 | ||||||||||||||||||||||||||||||||
Debt securities available-for-sale | 7,753 | (16,702) | (8,949) | 8,027 | 13,738 | 21,765 | ||||||||||||||||||||||||||||||||
Debt securities held-to-maturity, net | 3,548 | (9,516) | (5,968) | (5,724) | (3,248) | (8,972) | ||||||||||||||||||||||||||||||||
Net loans | (11,876) | (28,804) | (40,680) | 46,098 | 11,398 | 57,496 | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | (2,877) | 275 | (2,602) | 1,790 | (655) | 1,135 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | 3,923 | (63,248) | (59,325) | 50,223 | 21,580 | 71,803 | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Savings deposits | 465 | (5,557) | (5,092) | (1,117) | 5,025 | 3,908 | ||||||||||||||||||||||||||||||||
Interest-bearing checking | 14,326 | (57,010) | (42,684) | 4,893 | 17,358 | 22,251 | ||||||||||||||||||||||||||||||||
Money market accounts | 10,903 | (29,231) | (18,328) | (1,600) | 16,102 | 14,502 | ||||||||||||||||||||||||||||||||
Certificates of deposit | (16,939) | (23,225) | (40,164) | 7,322 | 25,229 | 32,551 | ||||||||||||||||||||||||||||||||
Total deposits | 8,755 | (115,023) | (106,268) | 9,498 | 63,714 | 73,212 | ||||||||||||||||||||||||||||||||
Borrowed funds | (20,307) | (3,363) | (23,670) | 15,450 | 8,085 | 23,535 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | (11,552) | (118,386) | (129,938) | 24,948 | 71,799 | 96,747 | ||||||||||||||||||||||||||||||||
Increase (decrease) in net interest income | $ | 15,475 | 55,138 | 70,613 | $ | 25,275 | (50,219) | (24,944) |
EVE (1) | Net Interest Income (2) | ||||||||||||||||||||||||||||||||||||||||
Change in Interest Rates (basis points) | Estimated EVE | Estimated Increase (Decrease) | Estimated Net Interest Income | Estimated Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
+ 200bp | $ | 3,521,263 | 70,065 | 2.0 | % | $ | 714,245 | (27,130) | (3.7) | % | |||||||||||||||||||||||||||||||
0bp | $ | 3,451,198 | — | — | $ | 741,375 | — | — | |||||||||||||||||||||||||||||||||
-100bp | $ | 3,195,213 | (255,985) | (7.4) | % | $ | 745,681 | 4,306 | 0.6 | % |
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations | Less than One Year | One to Three Years | Three to Five Years | More than Five Years | Total | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Other borrowed funds | $ | 1,513,000 | 847,216 | 472,358 | 14,702 | 2,847,276 | ||||||||||||||||||||||||||
Repurchase agreements | — | 248,514 | 200,000 | — | 448,514 | |||||||||||||||||||||||||||
Operating leases | 28,844 | 53,802 | 51,796 | 104,729 | 239,171 | |||||||||||||||||||||||||||
Total | $ | 1,541,844 | 1,149,532 | 724,154 | 119,431 | 3,534,961 |
December 31, 2020 | December 31, 2019 | ||||||||||
(In thousands except share data) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 170,432 | 174,915 | ||||||||
Equity securities | 36,000 | 6,039 | |||||||||
Debt securities available-for-sale, at estimated fair value | 2,758,437 | 2,695,390 | |||||||||
Debt securities held-to-maturity, net (estimated fair value of $1,320,872 and $1,190,104 at December 31, 2020 and 2019, respectively) | 1,247,853 | 1,148,815 | |||||||||
Loans receivable, net | 20,580,451 | 21,476,056 | |||||||||
Loans held-for-sale | 30,357 | 29,797 | |||||||||
Federal Home Loan Bank stock | 159,829 | 267,219 | |||||||||
Accrued interest receivable | 79,705 | 79,313 | |||||||||
Other real estate owned and other repossessed assets | 7,115 | 13,538 | |||||||||
Office properties and equipment, net | 139,663 | 169,614 | |||||||||
Operating lease right-of-use assets | 199,981 | 175,143 | |||||||||
Net deferred tax asset | 116,805 | 64,220 | |||||||||
Bank owned life insurance | 223,714 | 218,517 | |||||||||
Goodwill and intangible assets | 109,633 | 97,869 | |||||||||
Other assets | 163,184 | 82,321 | |||||||||
Total assets | $ | 26,023,159 | 26,698,766 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Liabilities: | |||||||||||
Deposits | $ | 19,525,419 | 17,860,338 | ||||||||
Borrowed funds | 3,295,790 | 5,827,111 | |||||||||
Advance payments by borrowers for taxes and insurance | 115,729 | 121,719 | |||||||||
Operating lease liabilities | 212,559 | 185,827 | |||||||||
Other liabilities | 163,659 | 81,821 | |||||||||
Total liabilities | 23,313,156 | 24,076,816 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.01 par value, 100,000,000 authorized shares; NaN issued | 0 | 0 | |||||||||
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 361,869,872 and 359,070,852 issued at December 31, 2020 and 2019, respectively; 247,929,216 and 247,439,902 outstanding at December 31, 2020 and 2019, respectively | 3,619 | 3,591 | |||||||||
Additional paid-in capital | 2,858,663 | 2,822,364 | |||||||||
Retained earnings | 1,339,003 | 1,245,793 | |||||||||
Treasury stock, at cost; 113,940,656 and 111,630,950 shares at December 31, 2020 and 2019, respectively | (1,375,996) | (1,352,910) | |||||||||
Unallocated common stock held by the employee stock ownership plan | (75,270) | (78,266) | |||||||||
Accumulated other comprehensive loss | (40,016) | (18,622) | |||||||||
Total stockholders’ equity | 2,710,003 | 2,621,950 | |||||||||
Total liabilities and stockholders’ equity | $ | 26,023,159 | 26,698,766 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||
Interest and dividend income: | |||||||||||||||||
Loans receivable and loans held-for-sale | $ | 871,411 | 912,091 | 854,595 | |||||||||||||
Securities: | |||||||||||||||||
Equity | 362 | 143 | 134 | ||||||||||||||
Government-sponsored enterprise obligations | 1,517 | 1,212 | 1,080 | ||||||||||||||
Mortgage-backed securities | 77,925 | 95,133 | 80,906 | ||||||||||||||
Municipal bonds and other debt | 13,480 | 11,494 | 13,060 | ||||||||||||||
Interest-bearing deposits | 1,460 | 2,805 | 2,435 | ||||||||||||||
Federal Home Loan Bank stock | 14,739 | 17,341 | 16,206 | ||||||||||||||
Total interest and dividend income | 980,894 | 1,040,219 | 968,416 | ||||||||||||||
Interest expense: | |||||||||||||||||
Deposits | 155,589 | 261,857 | 188,645 | ||||||||||||||
Borrowed Funds | 99,619 | 123,289 | 99,754 | ||||||||||||||
Total interest expense | 255,208 | 385,146 | 288,399 | ||||||||||||||
Net interest income | 725,686 | 655,073 | 680,017 | ||||||||||||||
Provision for credit losses | 70,158 | (1,000) | 12,000 | ||||||||||||||
Net interest income after provision for credit losses | 655,528 | 656,073 | 668,017 | ||||||||||||||
Non-interest income | |||||||||||||||||
Fees and service charges | 17,916 | 23,604 | 22,142 | ||||||||||||||
Income on bank owned life insurance | 6,638 | 6,542 | 5,926 | ||||||||||||||
Gain on loans, net | 16,226 | 5,345 | 2,144 | ||||||||||||||
Gain (loss) on securities, net | 406 | (5,536) | (31,604) | ||||||||||||||
Gain on sale-leaseback transactions | 23,129 | 0 | 0 | ||||||||||||||
Gain on sale of other real estate owned, net | 1,054 | 1,145 | 923 | ||||||||||||||
Other income | 25,149 | 22,313 | 10,550 | ||||||||||||||
Total non-interest income | 90,518 | 53,413 | 10,081 | ||||||||||||||
Non-interest expense | |||||||||||||||||
Compensation and fringe benefits | 240,970 | 243,782 | 235,928 | ||||||||||||||
Advertising and promotional expense | 9,551 | 13,893 | 13,054 | ||||||||||||||
Office occupancy and equipment expense | 77,754 | 63,996 | 63,539 | ||||||||||||||
Federal deposit insurance premiums | 14,276 | 13,200 | 17,760 | ||||||||||||||
General and administrative | 2,133 | 2,222 | 2,328 | ||||||||||||||
Professional fees | 16,220 | 17,308 | 15,278 | ||||||||||||||
Data processing and communication | 35,702 | 31,987 | 27,810 | ||||||||||||||
Debt extinguishment | 24,098 | 0 | 0 | ||||||||||||||
Other operating expenses | 28,801 | 36,366 | 31,983 | ||||||||||||||
Total non-interest expenses | 449,505 | 422,754 | 407,680 | ||||||||||||||
Income before income tax expense | 296,541 | 286,732 | 270,418 | ||||||||||||||
Income tax expense | 74,961 | 91,248 | 67,842 | ||||||||||||||
Net income | $ | 221,580 | 195,484 | 202,576 | |||||||||||||
Basic earnings per share | $ | 0.94 | 0.75 | 0.72 | |||||||||||||
Diluted earnings per share | $ | 0.94 | 0.74 | 0.72 | |||||||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 235,761,457 | 262,202,598 | 281,925,219 | ||||||||||||||
Diluted | 235,838,808 | 262,519,788 | 282,791,859 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Net income | $ | 221,580 | 195,484 | 202,576 | |||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||
Change in funded status of retirement obligations | (2,795) | (3,672) | 2,622 | ||||||||||||||
Unrealized gains (losses) on debt securities available-for-sale | 27,748 | 34,119 | (11,296) | ||||||||||||||
Accretion of loss on debt securities reclassified to held to maturity | 202 | 535 | 599 | ||||||||||||||
Reclassification adjustment for security losses included in net income | 0 | 4,221 | 24,202 | ||||||||||||||
Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 | 820 | 768 | 3,085 | ||||||||||||||
Net losses on derivatives | (47,369) | (43,024) | (836) | ||||||||||||||
Total other comprehensive (loss) income | (21,394) | (7,053) | 18,376 | ||||||||||||||
Total comprehensive income | $ | 200,186 | 188,431 | 220,952 |
Common stock | Additional paid-in capital | Retained earnings | Treasury stock | Unallocated Common Stock Held by ESOP | Accumulated other comprehensive loss | Total stockholders’ equity | |||||||||||||||||||||||||||||||||||
(In thousands except share data) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 3,591 | 2,784,390 | 1,084,177 | (633,110) | (84,258) | (29,339) | 3,125,451 | |||||||||||||||||||||||||||||||||
Net income | — | — | 202,576 | — | — | — | 202,576 | ||||||||||||||||||||||||||||||||||
Effect of adopting ASU No. 2016-01 | — | — | 606 | — | — | (606) | 0 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 18,376 | 18,376 | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock (20,380,355 shares) | — | — | — | (258,175) | — | — | (258,175) | ||||||||||||||||||||||||||||||||||
Treasury stock allocated to restricted stock plan (91,982 shares) | — | (1,178) | 57 | 1,121 | — | — | 0 | ||||||||||||||||||||||||||||||||||
Compensation cost for stock options and restricted stock | — | 18,437 | — | — | — | — | 18,437 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | — | (4,280) | — | 10,023 | — | — | 5,743 | ||||||||||||||||||||||||||||||||||
Restricted stock forfeitures (392,946 shares) | — | 4,942 | (333) | (4,609) | — | — | 0 | ||||||||||||||||||||||||||||||||||
Cash dividend paid ($0.38 per common share) | — | — | (113,186) | — | — | — | (113,186) | ||||||||||||||||||||||||||||||||||
ESOP shares allocated or committed to be released | — | 3,112 | — | — | 2,996 | — | 6,108 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 3,591 | 2,805,423 | 1,173,897 | (884,750) | (81,262) | (11,569) | 3,005,330 | ||||||||||||||||||||||||||||||||||
Net income | — | — | 195,484 | — | — | — | 195,484 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (7,053) | (7,053) | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock (39,365,145 shares) | — | — | — | (475,946) | — | — | (475,946) | ||||||||||||||||||||||||||||||||||
Treasury stock allocated to restricted stock plan (2,360,919 shares) | — | (29,321) | 31 | 29,290 | — | — | 0 | ||||||||||||||||||||||||||||||||||
Compensation cost for stock options and restricted stock | — | 19,968 | — | — | — | — | 19,968 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | — | (573) | — | 1,387 | — | — | 814 | ||||||||||||||||||||||||||||||||||
Restricted stock forfeitures (1,940,788 shares) | — | 24,347 | (1,456) | (22,891) | — | — | 0 | ||||||||||||||||||||||||||||||||||
Cash dividend paid ($0.44 per common share) | — | — | (122,163) | — | — | — | (122,163) | ||||||||||||||||||||||||||||||||||
ESOP shares allocated or committed to be released | — | 2,520 | — | — | 2,996 | — | 5,516 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 3,591 | 2,822,364 | 1,245,793 | (1,352,910) | (78,266) | (18,622) | 2,621,950 | ||||||||||||||||||||||||||||||||||
Cumulative effect of adopting ASU No. 2016-13 | — | — | (8,491) | — | — | — | (8,491) | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | 3,591 | 2,822,364 | 1,237,302 | (1,352,910) | (78,266) | (18,622) | 2,613,459 | ||||||||||||||||||||||||||||||||||
Net income | — | — | 221,580 | — | — | — | 221,580 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (21,394) | (21,394) | ||||||||||||||||||||||||||||||||||
Common stock issued to finance acquisition | 28 | 20,853 | — | — | — | — | 20,881 | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock (2,377,814 shares) | — | — | — | (23,920) | — | — | (23,920) | ||||||||||||||||||||||||||||||||||
Treasury stock allocated to restricted stock plan (91,249 shares) | — | (913) | (200) | 1,113 | — | — | 0 | ||||||||||||||||||||||||||||||||||
Compensation cost for stock options and restricted stock | — | 14,772 | — | — | — | — | 14,772 | ||||||||||||||||||||||||||||||||||
Restricted stock forfeitures (23,141 shares) | — | 283 | (4) | (279) | — | — | 0 | ||||||||||||||||||||||||||||||||||
Cash dividend paid ($0.48 per common share) | — | — | (119,675) | — | — | — | (119,675) | ||||||||||||||||||||||||||||||||||
ESOP shares allocated or committed to be released | — | 1,304 | — | — | 2,996 | — | 4,300 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 3,619 | 2,858,663 | 1,339,003 | (1,375,996) | (75,270) | (40,016) | 2,710,003 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 221,580 | 195,484 | 202,576 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
ESOP and stock-based compensation expense | 19,072 | 25,484 | 24,545 | ||||||||||||||
Amortization of premiums and accretion of discounts on securities, net | 11,468 | 9,251 | 10,728 | ||||||||||||||
Amortization of premiums and accretion of fees and costs on loans, net | 1,151 | (3,730) | (6,571) | ||||||||||||||
Amortization of other intangible assets | 1,471 | 1,520 | 1,974 | ||||||||||||||
Amortization of debt modification costs and premium on borrowings | 2,225 | 1,186 | 0 | ||||||||||||||
Provision for credit losses | 70,158 | (1,000) | 12,000 | ||||||||||||||
Loss from extinguishment of debt | 24,098 | 0 | 0 | ||||||||||||||
Depreciation and amortization of office properties and equipment | 21,350 | 19,579 | 17,104 | ||||||||||||||
(Gain) loss on securities, net | (406) | 5,536 | 31,604 | ||||||||||||||
Mortgage loans originated for sale | (564,527) | (269,773) | (65,525) | ||||||||||||||
Proceeds from mortgage loan sales | 579,788 | 247,640 | 68,202 | ||||||||||||||
Gain on sales of mortgage loans, net | (15,822) | (3,590) | (1,566) | ||||||||||||||
Gain on sale of other real estate owned | (1,054) | (1,145) | (923) | ||||||||||||||
Gain on sale of real estate property, net | (23,129) | 0 | 0 | ||||||||||||||
Income on bank owned life insurance | (6,638) | (6,542) | (5,926) | ||||||||||||||
Amortization of lease right-of-use assets | 21,551 | 17,608 | 0 | ||||||||||||||
Decrease (increase) in accrued interest receivable | 891 | (1,812) | (4,646) | ||||||||||||||
Deferred tax (benefit) expense | (34,190) | 45,624 | 15,513 | ||||||||||||||
Increase in other assets | (121,081) | (42,170) | (23,085) | ||||||||||||||
Increase (decrease) in other liabilities | 16,341 | (78,496) | (429) | ||||||||||||||
Net cash provided by operating activities | 224,297 | 160,654 | 275,575 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of loans receivable | (158,420) | (427,053) | (514,040) | ||||||||||||||
Net payoffs (originations) of loans receivable | 1,055,802 | 101,227 | (703,577) | ||||||||||||||
Proceeds from disposition of loans receivable | 380,671 | 227,522 | 11,477 | ||||||||||||||
Gain on disposition of loans receivable | (404) | (1,755) | (1,251) | ||||||||||||||
Gain on disposition of leased equipment | (2,086) | (5,698) | 0 | ||||||||||||||
Net proceeds from sale of other real estate owned | 7,393 | 6,498 | 6,187 | ||||||||||||||
Proceeds from principal repayments/calls/maturities of debt securities available for sale | 1,020,929 | 492,419 | 384,181 | ||||||||||||||
Proceeds from sales of debt securities available for sale | 0 | 399,435 | 632,444 | ||||||||||||||
Proceeds from principal repayments/calls/maturities of debt securities held to maturity | 278,532 | 251,574 | 301,309 | ||||||||||||||
Purchases of equity securities | (29,705) | (96) | (90) | ||||||||||||||
Purchases of debt securities available for sale | (1,005,649) | (1,034,131) | (1,182,036) | ||||||||||||||
Purchases of debt securities held to maturity | (372,712) | (238,670) | (54,836) | ||||||||||||||
Proceeds from redemptions of Federal Home Loan Bank stock | 182,182 | 303,245 | 252,176 | ||||||||||||||
Purchases of Federal Home Loan Bank stock | (74,171) | (310,230) | (280,866) | ||||||||||||||
Purchases of office properties and equipment | (17,755) | (11,761) | (14,305) | ||||||||||||||
Proceeds from sale of real estate property | 49,970 | 0 | 0 | ||||||||||||||
Death benefit proceeds from bank owned life insurance | 1,439 | 0 | 3,618 | ||||||||||||||
Purchases of bank owned life insurance | 0 | 0 | (125,000) | ||||||||||||||
Proceeds from surrender of bank owned life insurance contract | 0 | 0 | 71,029 | ||||||||||||||
Cash received, net of cash consideration paid for acquisitions | 7,274 | 0 | (340,183) | ||||||||||||||
Net cash provided by (used in) investing activities | 1,323,290 | (247,474) | (1,553,763) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Net increase in deposits | 1,175,200 | 280,069 | 222,572 | ||||||||||||||
Repayments of principal under finance leases | (1,579) | (2) | 0 | ||||||||||||||
Funds borrowed under other repurchase agreements | 0 | 197,584 | 120,000 | ||||||||||||||
Net (repayments) proceeds of borrowed funds | (1,548,397) | 192,660 | 854,148 | ||||||||||||||
Payments related to extinguishment of debt | (1,024,098) | 0 | 0 | ||||||||||||||
Net (decrease) increase in advance payments by borrowers for taxes and insurance | (9,601) | (8,172) | 25,583 | ||||||||||||||
Dividends paid | (119,675) | (122,163) | (113,186) | ||||||||||||||
Exercise of stock options | 0 | 814 | 5,743 | ||||||||||||||
Purchase of treasury stock | (23,920) | (475,946) | (258,175) | ||||||||||||||
Net cash (used in) provided by financing activities | (1,552,070) | 64,844 | 856,685 | ||||||||||||||
Net decrease in cash and cash equivalents | (4,483) | (21,976) | (421,503) | ||||||||||||||
Cash and cash equivalents at beginning of period | 174,915 | 196,891 | 618,394 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 170,432 | 174,915 | 196,891 | |||||||||||||
Supplemental cash flow information: | |||||||||||||||||
Non-cash investing activities: | |||||||||||||||||
Real estate acquired through foreclosure and other assets repossessed | $ | 1,050 | 12,567 | 6,674 | |||||||||||||
Cash paid during the year for: | |||||||||||||||||
Interest | 268,284 | 390,359 | 275,525 | ||||||||||||||
Income taxes | 88,450 | 36,146 | 69,271 | ||||||||||||||
Significant non-cash transactions | |||||||||||||||||
Debt securities transferred from held-to-maturity to available-for-sale | 0 | 393,359 | 0 | ||||||||||||||
Loans transferred to held-for-sale portfolio | 0 | 28,373 | 0 | ||||||||||||||
Investment in low income housing tax credit | 0 | 10,000 | 0 | ||||||||||||||
Right-of-use assets obtained in exchange for new lease liabilities | 43,062 | 2,996 | 0 | ||||||||||||||
Acquisition: | |||||||||||||||||
Non-cash assets acquired: | |||||||||||||||||
Debt securities available-for-sale | 51,524 | 0 | 0 | ||||||||||||||
Debt securities held to maturity | 8,402 | 0 | 0 | ||||||||||||||
Loans receivable, net | 443,499 | 0 | 330,747 | ||||||||||||||
Office properties and equipment, net | 485 | 0 | 0 | ||||||||||||||
Accrued interest receivable | 1,283 | 0 | 0 | ||||||||||||||
Right of use assets - leases | 3,697 | 0 | 0 | ||||||||||||||
Deferred tax asset | 3,915 | 0 | 0 | ||||||||||||||
Intangible assets, net | 14,491 | 0 | 4,975 | ||||||||||||||
Other assets | 705 | 0 | 0 | ||||||||||||||
Total non-cash assets acquired | 528,001 | 0 | 335,722 | ||||||||||||||
Liabilities assumed: | |||||||||||||||||
Deposits | 489,881 | 0 | 0 | ||||||||||||||
Borrowed funds | 14,851 | 0 | 0 | ||||||||||||||
Advance payment by borrowers | 3,611 | 0 | 0 | ||||||||||||||
Other liabilities | 6,051 | 0 | 0 | ||||||||||||||
Total liabilities assumed | 514,394 | 0 | 0 | ||||||||||||||
Net non-cash assets acquired | 13,607 | 0 | 335,722 | ||||||||||||||
Common stock issued for acquisition | 20,881 | 0 | 0 |
Name | Award Type | 2015 Original Awards ($) (1) | 2019 Replacement Awards ($) (2) | Change in Fair Value ($) | ||||||||||||
Kevin Cummings | Stock Options | 4,159,999 | 467,357 | (3,692,642 | ) | |||||||||||
Restricted Stock | 12,540,000 | 10,230,500 | (2,309,500 | ) | ||||||||||||
16,699,999 | 10,697,857 | (6,002,142 | ) | |||||||||||||
Domenick A. Cama | Stock Options | 3,327,998 | 373,885 | (2,954,113 | ) | |||||||||||
Restricted Stock | 10,032,000 | 8,184,400 | (1,847,600 | ) | ||||||||||||
13,359,998 | 8,558,285 | (4,801,713 | ) |
(1) | Represents the grant date fair value of the awards determined in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are included in Note 11 to the audited financial statements included in the Annual Report on Form 10-K for the calendar year ended December 31, 2015. The fair value of the stock option awards was $3.12 as computed in accordance with FASB ASC Topic 718. The stock price on June 23, 2015 was $12.54. In 2018, Messrs. Cummings and Cama forfeited performance-based restricted shares with a grant date fair value of $940,500 and $752,400, respectively, as the performance-based restricted shared were deemed earned at 70% of target. |
(2) | Represents the grant date fair value of the awards determined in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are included in Note 12 to the audited financial statements included in the Annual Report on Form 10-K for the calendar year ended December 31, 2019. The fair value of the stock option awards was $0.89 as computed in accordance with FASB ASC Topic 718. The stock price on July 22, 2019 was $11.06. |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Net gains recognized on equity securities | $ | 256 | 150 | 2 | |||||||||||||
Less: Net gains recognized on equity securities sold | 0 | 0 | 0 | ||||||||||||||
Unrealized gains recognized on equity securities | $ | 256 | 150 | 2 |
At December 31, 2020 | |||||||||||||||||||||||
Carrying value | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
Government-sponsored enterprises | $ | 4,260 | 222 | 0 | 4,482 | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 1,286,195 | 30,930 | 73 | 1,317,052 | |||||||||||||||||||
Federal National Mortgage Association | 1,167,057 | 38,568 | 199 | 1,205,426 | |||||||||||||||||||
Government National Mortgage Association | 225,810 | 5,700 | 33 | 231,477 | |||||||||||||||||||
Total mortgage-backed securities available-for-sale | 2,679,062 | 75,198 | 305 | 2,753,955 | |||||||||||||||||||
Total debt securities available-for-sale | $ | 2,683,322 | 75,420 | 305 | 2,758,437 |
At December 31, 2020 | |||||||||||||||||||||||||||||||||||
Amortized cost | Net unrealized losses (1) | Carrying value | Gross unrecognized gains (2) | Gross unrecognized losses (2) | Estimated fair value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||
Government-sponsored enterprises | $ | 109,016 | 0 | 109,016 | 4,107 | 709 | 112,414 | ||||||||||||||||||||||||||||
Municipal bonds | 246,601 | 0 | 246,601 | 14,990 | 0 | 261,591 | |||||||||||||||||||||||||||||
Corporate and other debt securities | 144,209 | 13,644 | 130,565 | 20,033 | 885 | 149,713 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 499,826 | 13,644 | 486,182 | 39,130 | 1,594 | 523,718 | |||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 308,285 | 66 | 308,219 | 9,733 | 266 | 317,686 | |||||||||||||||||||||||||||||
Federal National Mortgage Association | 413,601 | 175 | 413,426 | 20,905 | 0 | 434,331 | |||||||||||||||||||||||||||||
Government National Mortgage Association | 43,290 | 0 | 43,290 | 1,847 | 0 | 45,137 | |||||||||||||||||||||||||||||
Total mortgage-backed securities held-to-maturity | 765,176 | 241 | 764,935 | 32,485 | 266 | 797,154 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | $ | 1,265,002 | 13,885 | 1,251,117 | 71,615 | 1,860 | 1,320,872 | ||||||||||||||||||||||||||||
Allowance for credit losses | 3,264 | ||||||||||||||||||||||||||||||||||
Total debt securities held-to-maturity, net of allowance for credit losses | 1,247,853 |
At December 31, 2019 | |||||||||||||||||||||||
Carrying value | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | $ | 1,223,587 | 17,528 | 736 | 1,240,379 | ||||||||||||||||||
Federal National Mortgage Association | 1,159,446 | 18,917 | 314 | 1,178,049 | |||||||||||||||||||
Government National Mortgage Association | 273,676 | 3,333 | 47 | 276,962 | |||||||||||||||||||
Total debt securities available-for-sale | $ | 2,656,709 | 39,778 | 1,097 | 2,695,390 |
At December 31, 2019 | |||||||||||||||||||||||||||||||||||
Amortized cost | Net unrealized losses (1) | Carrying Value | Gross unrecognized gains (2) | Gross unrecognized losses (2) | Estimated fair value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||
Government-sponsored enterprises | $ | 58,624 | 0 | 58,624 | 188 | 500 | 58,312 | ||||||||||||||||||||||||||||
Municipal bonds | 143,151 | 0 | 143,151 | 3,797 | 43 | 146,905 | |||||||||||||||||||||||||||||
Corporate and other debt securities | 87,322 | 14,785 | 72,537 | 26,158 | 0 | 98,695 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 289,097 | 14,785 | 274,312 | 30,143 | 543 | 303,912 | |||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 262,079 | 134 | 261,945 | 3,533 | 129 | 265,349 | |||||||||||||||||||||||||||||
Federal National Mortgage Association | 542,583 | 373 | 542,210 | 7,959 | 307 | 549,862 | |||||||||||||||||||||||||||||
Government National Mortgage Association | 70,348 | 0 | 70,348 | 633 | 0 | 70,981 | |||||||||||||||||||||||||||||
Total mortgage-backed securities held-to-maturity | 875,010 | 507 | 874,503 | 12,125 | 436 | 886,192 | |||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 1,164,107 | 15,292 | 1,148,815 | 42,268 | 979 | 1,190,104 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
Estimated fair value | Unrealized losses | Estimated fair value | Unrealized losses | Estimated fair value | Unrealized losses | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | $ | 60,502 | 73 | 0 | 0 | 60,502 | 73 | ||||||||||||||||||||||||||||
Federal National Mortgage Association | 123,329 | 199 | 0 | 0 | 123,329 | 199 | |||||||||||||||||||||||||||||
Government National Mortgage Association | 9,062 | 33 | 0 | 0 | 9,062 | 33 | |||||||||||||||||||||||||||||
Total debt securities available-for-sale | 192,893 | 305 | 0 | 0 | 192,893 | 305 | |||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||
Government-sponsored enterprises | 66,558 | 709 | 0 | 0 | 66,558 | 709 | |||||||||||||||||||||||||||||
Corporate and other debt securities | 15,038 | 885 | 0 | 0 | 15,038 | 885 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 81,596 | 1,594 | 0 | 0 | 81,596 | 1,594 | |||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 40,013 | 266 | 0 | 0 | 40,013 | 266 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 121,609 | 1,860 | 0 | 0 | 121,609 | 1,860 | |||||||||||||||||||||||||||||
Total | $ | 314,502 | 2,165 | 0 | 0 | 314,502 | 2,165 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
Estimated fair value | Unrealized losses | Estimated fair value | Unrealized losses | Estimated fair value | Unrealized losses | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | $ | 215,160 | 736 | 0 | 0 | 215,160 | 736 | ||||||||||||||||||||||||||||
Federal National Mortgage Association | 80,298 | 297 | 12,972 | 17 | 93,270 | 314 | |||||||||||||||||||||||||||||
Government National Mortgage Association | 20,078 | 47 | 0 | 0 | 20,078 | 47 | |||||||||||||||||||||||||||||
Total debt securities available-for-sale | 315,536 | 1,080 | 12,972 | 17 | 328,508 | 1,097 | |||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||
Government-sponsored enterprises | 31,696 | 500 | 0 | 0 | 31,696 | 500 | |||||||||||||||||||||||||||||
Municipal bonds | 23,596 | 43 | 0 | 0 | 23,596 | 43 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 55,292 | 543 | 0 | 0 | 55,292 | 543 | |||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 20,860 | 64 | 11,065 | 65 | 31,925 | 129 | |||||||||||||||||||||||||||||
Federal National Mortgage Association | 7,911 | 52 | 37,316 | 255 | 45,227 | 307 | |||||||||||||||||||||||||||||
Total mortgage-backed securities held-to-maturity | 28,771 | 116 | 48,381 | 320 | 77,152 | 436 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 84,063 | 659 | 48,381 | 320 | 132,444 | 979 | |||||||||||||||||||||||||||||
Total | $ | 399,599 | 1,739 | 61,353 | 337 | 460,952 | 2,076 |
December 31, 2020 | |||||||||||
Carrying Value | Estimated fair value | ||||||||||
(In thousands) | |||||||||||
Due in one year or less | $ | 52,178 | 52,178 | ||||||||
Due after one year through five years | 10,248 | 10,467 | |||||||||
Due after five years through ten years | 136,307 | 140,032 | |||||||||
Due after ten years | 287,449 | 321,041 | |||||||||
Total | $ | 486,182 | 523,718 |
For the Years Ended December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Balance of credit related OTTI, beginning of period | $ | 80,595 | 85,768 | ||||||||||||||
Reductions: | |||||||||||||||||
Accretion of credit loss impairment due to an increase in expected cash flows | (3,530) | (4,703) | |||||||||||||||
Reductions for securities sold or paid off during the period | 0 | (470) | |||||||||||||||
Balance of credit related OTTI, end of period | $ | 77,065 | 80,595 |
December 31, 2020 | December 31, 2019 | ||||||||||
(In thousands) | |||||||||||
Multi-family loans | $ | 7,122,840 | 7,813,236 | ||||||||
Commercial real estate loans | 4,947,212 | 4,831,347 | |||||||||
Commercial and industrial loans | 3,575,641 | 2,951,306 | |||||||||
Construction loans | 404,367 | 262,866 | |||||||||
Total commercial loans | 16,050,060 | 15,858,755 | |||||||||
Residential mortgage loans | 4,119,894 | 5,144,718 | |||||||||
Consumer and other loans | 702,801 | 699,796 | |||||||||
Total loans | 20,872,755 | 21,703,269 | |||||||||
Deferred fees, premiums and accretable purchase accounting adjustments, net | (9,318) | 907 | |||||||||
Allowance for credit losses (1) | (282,986) | (228,120) | |||||||||
Net loans | $ | 20,580,451 | 21,476,056 |
Term Loans by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 1,002,259 | 515,446 | 912,910 | 601,440 | 850,781 | 1,199,133 | 6,986 | 5,088,955 | ||||||||||||||||||||||||||||||||||||||||||||
Watch | 21,366 | 153,404 | 374,363 | 135,348 | 299,413 | 220,668 | 0 | 1,204,562 | |||||||||||||||||||||||||||||||||||||||||||||
Special mention | 4,560 | 0 | 86,119 | 32,506 | 48,020 | 205,916 | 0 | 377,121 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 7,285 | 8,436 | 17,580 | 139,975 | 277,535 | 1,391 | 452,202 | |||||||||||||||||||||||||||||||||||||||||||||
Total Multi-family | 1,028,185 | 676,135 | 1,381,828 | 786,874 | 1,338,189 | 1,903,252 | 8,377 | 7,122,840 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 529,244 | 684,807 | 646,708 | 461,097 | 495,822 | 1,081,512 | 32,509 | 3,931,699 | |||||||||||||||||||||||||||||||||||||||||||||
Watch | 87,137 | 132,932 | 117,598 | 74,379 | 61,794 | 165,702 | 3,428 | 642,970 | |||||||||||||||||||||||||||||||||||||||||||||
Special mention | 375 | 6,988 | 5,279 | 13,295 | 51,880 | 71,745 | 250 | 149,812 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 8,212 | 40,024 | 29,488 | 144,758 | 249 | 222,731 | |||||||||||||||||||||||||||||||||||||||||||||
Total Commercial real estate | 616,756 | 824,727 | 777,797 | 588,795 | 638,984 | 1,463,717 | 36,436 | 4,947,212 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 1,007,949 | 619,275 | 328,917 | 156,596 | 176,557 | 348,278 | 203,302 | 2,840,874 | |||||||||||||||||||||||||||||||||||||||||||||
Watch | 49,208 | 115,888 | 43,791 | 48,230 | 28,708 | 34,697 | 31,931 | 352,453 | |||||||||||||||||||||||||||||||||||||||||||||
Special mention | 16,813 | 111,399 | 48,887 | 14,770 | 14,102 | 76,554 | 798 | 283,323 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 6,128 | 8,236 | 42,297 | 4,341 | 22,707 | 15,282 | 98,991 | |||||||||||||||||||||||||||||||||||||||||||||
Total Commercial and industrial | 1,073,970 | 852,690 | 429,831 | 261,893 | 223,708 | 482,236 | 251,313 | 3,575,641 | |||||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 85,915 | 58,041 | 23,375 | 0 | 0 | 0 | 197,437 | 364,768 | |||||||||||||||||||||||||||||||||||||||||||||
Watch | 6,891 | 5,350 | 0 | 0 | 0 | 0 | 0 | 12,241 | |||||||||||||||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 15,228 | 0 | 0 | 0 | 0 | 15,228 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 12,130 | 12,130 | |||||||||||||||||||||||||||||||||||||||||||||
Total Construction | 92,806 | 63,391 | 38,603 | 0 | 0 | 0 | 209,567 | 404,367 | |||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 556,761 | 450,363 | 425,617 | 530,676 | 407,201 | 1,601,457 | 0 | 3,972,075 | |||||||||||||||||||||||||||||||||||||||||||||
Watch | 809 | 12,929 | 13,465 | 14,704 | 8,517 | 44,299 | 0 | 94,723 | |||||||||||||||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 584 | 0 | 0 | 3,402 | 0 | 3,986 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 1,523 | 1,972 | 1,336 | 246 | 43,936 | 97 | 49,110 | |||||||||||||||||||||||||||||||||||||||||||||
Total residential mortgage | 557,570 | 464,815 | 441,638 | 546,716 | 415,964 | 1,693,094 | 97 | 4,119,894 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 5,031 | 6,853 | 5,693 | 7,448 | 6,692 | 57,103 | 601,481 | 690,301 | |||||||||||||||||||||||||||||||||||||||||||||
Watch | 0 | 39 | 137 | 56 | 156 | 440 | 7,655 | 8,483 | |||||||||||||||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 292 | 1,184 | 1,476 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 1,796 | 745 | 2,541 | |||||||||||||||||||||||||||||||||||||||||||||
Total Consumer and other | 5,031 | 6,892 | 5,830 | 7,504 | 6,848 | 59,631 | 611,065 | 702,801 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,374,318 | 2,888,650 | 3,075,527 | 2,191,782 | 2,623,693 | 5,601,930 | 1,116,855 | 20,872,755 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Pass | Watch | Special Mention | Substandard | Doubtful | Loss | Total | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||||||||||
Multi-family | $ | 6,326,412 | 942,438 | 167,748 | 376,638 | 0 | 0 | 7,813,236 | |||||||||||||||||||||||||||||||||
Commercial real estate | 4,023,642 | 489,514 | 118,426 | 199,765 | 0 | 0 | 4,831,347 | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 2,031,148 | 693,397 | 111,389 | 115,372 | 0 | 0 | 2,951,306 | ||||||||||||||||||||||||||||||||||
Construction | 169,236 | 75,319 | 0 | 18,311 | 0 | 0 | 262,866 | ||||||||||||||||||||||||||||||||||
Total commercial loans | 12,550,438 | 2,200,668 | 397,563 | 710,086 | 0 | 0 | 15,858,755 | ||||||||||||||||||||||||||||||||||
Residential mortgage | 5,074,334 | 14,414 | 5,429 | 50,541 | 0 | 0 | 5,144,718 | ||||||||||||||||||||||||||||||||||
Consumer and other | 687,302 | 9,157 | 1,174 | 2,163 | 0 | 0 | 699,796 | ||||||||||||||||||||||||||||||||||
Total | $ | 18,312,074 | 2,224,239 | 404,166 | 762,790 | 0 | 0 | 21,703,269 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||||
Multi-family | $ | 7,421 | 0 | 32,884 | 40,305 | 7,082,535 | 7,122,840 | ||||||||||||||||||||||||||||
Commercial real estate | 12,805 | 2,450 | 6,356 | 21,611 | 4,925,601 | 4,947,212 | |||||||||||||||||||||||||||||
Commercial and industrial | 986 | 3,116 | 1,769 | 5,871 | 3,569,770 | 3,575,641 | |||||||||||||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | 404,367 | 404,367 | |||||||||||||||||||||||||||||
Total commercial loans | 21,212 | 5,566 | 41,009 | 67,787 | 15,982,273 | 16,050,060 | |||||||||||||||||||||||||||||
Residential mortgage | 13,768 | 4,258 | 29,124 | 47,150 | 4,072,744 | 4,119,894 | |||||||||||||||||||||||||||||
Consumer and other | 5,645 | 1,476 | 1,984 | 9,105 | 693,696 | 702,801 | |||||||||||||||||||||||||||||
Total | $ | 40,625 | 11,300 | 72,117 | 124,042 | 20,748,713 | 20,872,755 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||||
Multi-family | $ | 45,606 | 1,946 | 22,055 | 69,607 | 7,743,629 | 7,813,236 | ||||||||||||||||||||||||||||
Commercial real estate | 7,958 | 525 | 3,787 | 12,270 | 4,819,077 | 4,831,347 | |||||||||||||||||||||||||||||
Commercial and industrial | 7,774 | 2,767 | 5,053 | 15,594 | 2,935,712 | 2,951,306 | |||||||||||||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | 262,866 | 262,866 | |||||||||||||||||||||||||||||
Total commercial loans | 61,338 | 5,238 | 30,895 | 97,471 | 15,761,284 | 15,858,755 | |||||||||||||||||||||||||||||
Residential mortgage | 16,980 | 6,195 | 27,729 | 50,904 | 5,093,814 | 5,144,718 | |||||||||||||||||||||||||||||
Consumer and other | 9,157 | 1,174 | 1,330 | 11,661 | 688,135 | 699,796 | |||||||||||||||||||||||||||||
Total | $ | 87,475 | 12,607 | 59,954 | 160,036 | 21,543,233 | 21,703,269 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
# of loans | Amount | # of loans | Amount | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Non-accrual: | |||||||||||||||||||||||
Multi-family | 15 | $ | 35,567 | 8 | $ | 23,322 | |||||||||||||||||
Commercial real estate | 29 | 15,894 | 22 | 11,945 | |||||||||||||||||||
Commercial and industrial | 21 | 9,212 | 18 | 12,482 | |||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | |||||||||||||||||||
Total commercial loans | 65 | 60,673 | 48 | 47,749 | |||||||||||||||||||
Residential mortgage and consumer | 246 | 46,452 | 260 | 47,566 | |||||||||||||||||||
Total non-accrual loans | 311 | $ | 107,125 | 308 | $ | 95,315 |
December 31, 2020 | |||||||||||||||||
Real Estate | Other | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Multi-family | $ | 31,484 | 0 | 31,484 | |||||||||||||
Commercial real estate | 8,758 | 0 | 8,758 | ||||||||||||||
Commercial and industrial | 2,994 | 3,549 | 6,543 | ||||||||||||||
Construction | 0 | 0 | 0 | ||||||||||||||
Total commercial loans | 43,236 | 3,549 | 46,785 | ||||||||||||||
Residential mortgage and consumer | 25,158 | 103 | 25,261 | ||||||||||||||
Total collateral-dependent loans | $ | 68,394 | 3,652 | 72,046 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
# of loans | Amount | # of loans | Amount | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
TDR with payment status current classified as non-accrual: | |||||||||||||||||||||||
Commercial real estate | 3 | $ | 3,907 | 2 | $ | 2,360 | |||||||||||||||||
Residential mortgage and consumer | 32 | 5,634 | 25 | 4,218 | |||||||||||||||||||
Total TDR with payment status current classified as non-accrual | 35 | $ | 9,541 | 27 | $ | 6,578 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
# of loans | Amount | # of loans | Amount | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
TDR 30-89 days delinquent classified as non-accrual: | |||||||||||||||||||||||
Commercial real estate | 1 | $ | 1,780 | 0 | $ | 0 | |||||||||||||||||
Residential mortgage and consumer | 10 | 942 | 18 | 3,331 | |||||||||||||||||||
Total TDR 30-89 days delinquent classified as non-accrual | 11 | $ | 2,722 | 18 | $ | 3,331 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Accrual | Non-accrual | Total | |||||||||||||||||||||||||||||||||
# of loans | Amount | # of loans | Amount | # of loans | Amount | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 0 | $ | 0 | 4 | $ | 5,687 | 4 | $ | 5,687 | ||||||||||||||||||||||||||
Commercial and industrial | 2 | 630 | 2 | 2,919 | 4 | 3,549 | |||||||||||||||||||||||||||||
Total commercial loans | 2 | 630 | 6 | 8,606 | 8 | 9,236 | |||||||||||||||||||||||||||||
Residential mortgage and consumer | 45 | 8,602 | 83 | 16,659 | 128 | 25,261 | |||||||||||||||||||||||||||||
Total | 47 | $ | 9,232 | 89 | $ | 25,265 | 136 | $ | 34,497 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Accrual | Non-accrual | Total | |||||||||||||||||||||||||||||||||
# of loans | Amount | # of loans | Amount | # of loans | Amount | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 0 | $ | 0 | 3 | $ | 2,362 | 3 | $ | 2,362 | ||||||||||||||||||||||||||
Commercial and industrial | 3 | 2,535 | 2 | 4,682 | 5 | 7,217 | |||||||||||||||||||||||||||||
Total commercial loans | 3 | 2,535 | 5 | 7,044 | 8 | 9,579 | |||||||||||||||||||||||||||||
Residential mortgage and consumer | 54 | 10,549 | 78 | 16,458 | 132 | 27,007 | |||||||||||||||||||||||||||||
Total | 57 | $ | 13,084 | 83 | $ | 23,502 | 140 | $ | 36,586 |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Number of Loans | Pre-modification Recorded Investment | Post- modification Recorded Investment | Number of Loans | Pre-modification Recorded Investment | Post- modification Recorded Investment | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 4 | $ | 5,707 | $ | 5,707 | 2 | $ | 2,440 | $ | 2,440 | |||||||||||||||||||||||||
Commercial and industrial | 1 | 933 | 933 | 2 | 1,270 | 1,270 | |||||||||||||||||||||||||||||
Residential mortgage and consumer | 7 | 1,813 | 1,813 | 14 | 2,850 | 2,850 |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Number of Loans | Pre-modification Interest Yield | Post- modification Interest Yield | Number of Loans | Pre-modification Interest Yield | Post- modification Interest Yield | ||||||||||||||||||||||||||||||
Commercial real estate | 4 | 4.77 | % | 4.77 | % | 2 | 6.30 | % | 4.67 | % | |||||||||||||||||||||||||
Commercial and industrial | 1 | 4.75 | % | 4.75 | % | 2 | 5.66 | % | 5.66 | % | |||||||||||||||||||||||||
Residential mortgage and consumer | 7 | 5.94 | % | 5.94 | % | 14 | 5.07 | % | 4.96 | % |
December 31, 2019 | |||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||
Multi-family | $ | 22,169 | 23,581 | — | 23,298 | 47 | |||||||||||||||||||||||
Commercial real estate | 7,875 | 10,913 | — | 8,127 | 199 | ||||||||||||||||||||||||
Commercial and industrial | 12,476 | 21,090 | — | 14,860 | 351 | ||||||||||||||||||||||||
Construction | 0 | 0 | — | 0 | 0 | ||||||||||||||||||||||||
Total commercial loans | 42,520 | 55,584 | — | 46,285 | 597 | ||||||||||||||||||||||||
Residential mortgage and consumer | 13,783 | 18,066 | — | 13,811 | 267 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Multi-family | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Commercial real estate | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total commercial loans | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Residential mortgage and consumer | 13,220 | 13,881 | 1,763 | 13,321 | 153 | ||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Multi-family | 22,169 | 23,581 | 0 | 23,298 | 47 | ||||||||||||||||||||||||
Commercial real estate | 7,875 | 10,913 | 0 | 8,127 | 199 | ||||||||||||||||||||||||
Commercial and industrial | 12,476 | 21,090 | 0 | 14,860 | 351 | ||||||||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total commercial loans | 42,520 | 55,584 | 0 | 46,285 | 597 | ||||||||||||||||||||||||
Residential mortgage and consumer | 27,003 | 31,947 | 1,763 | 27,132 | 420 | ||||||||||||||||||||||||
Total impaired loans | $ | 69,523 | 87,531 | 1,763 | 73,417 | 1,017 |
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Provision for loan losses | $ | 64,890 | (1,000) | ||||||||||||||||||||
Provision for debt securities held-to-maturity | 700 | 0 | |||||||||||||||||||||
Provision for off-balance sheet credit exposures | 4,568 | 0 | |||||||||||||||||||||
Total provision for credit losses | $ | 70,158 | (1,000) |
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance at beginning of period | $ | 228,120 | 235,817 | ||||||||||||||||||||
Adjustment for adoption of ASC 326 | (3,551) | 0 | |||||||||||||||||||||
Gross charge offs | (18,388) | (13,132) | |||||||||||||||||||||
Recoveries | 7,735 | 6,435 | |||||||||||||||||||||
Net charge-offs | (10,653) | (6,697) | |||||||||||||||||||||
Allowance at acquisition on loans purchased with credit deterioration | 4,180 | 0 | |||||||||||||||||||||
Provision for credit loss expense | 64,890 | (1,000) | |||||||||||||||||||||
Balance at end of period | $ | 282,986 | 228,120 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Multi- Family Loans | Commercial Real Estate Loans | Commercial and Industrial Loans | Construction Loans | Residential Mortgage Loans | Consumer and Other Loans | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | 74,099 | 50,925 | 74,396 | 6,816 | 17,391 | 2,548 | 1,945 | 228,120 | ||||||||||||||||||||||||||||||||||||||
Adjustment for adoption of ASC 326 | (9,741) | (4,631) | (7,511) | (1,901) | 20,089 | 2,089 | (1,945) | (3,551) | |||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2020 | 64,358 | 46,294 | 66,885 | 4,915 | 37,480 | 4,637 | 0 | 224,569 | |||||||||||||||||||||||||||||||||||||||
Charge-offs | (4,631) | (521) | (12,005) | 0 | (1,190) | (41) | 0 | (18,388) | |||||||||||||||||||||||||||||||||||||||
Recoveries | 1,965 | 412 | 4,459 | 0 | 677 | 222 | 0 | 7,735 | |||||||||||||||||||||||||||||||||||||||
Allowance at acquisition on loans purchased with credit deterioration | 209 | 3,208 | 287 | 127 | 344 | 5 | 0 | 4,180 | |||||||||||||||||||||||||||||||||||||||
Provision for credit loss expense | (5,170) | 66,525 | 19,701 | 2,225 | (17,370) | (1,021) | 0 | 64,890 | |||||||||||||||||||||||||||||||||||||||
Ending balance-December 31, 2020 | $ | 56,731 | 115,918 | 79,327 | 7,267 | 19,941 | 3,802 | 0 | 282,986 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Multi- Family Loans | Commercial Real Estate Loans | Commercial and Industrial Loans | Construction Loans | Residential Mortgage Loans | Consumer and Other Loans | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance-December 31, 2018 | $ | 82,876 | 48,449 | 71,084 | 7,486 | 20,776 | 3,102 | 2,044 | 235,817 | ||||||||||||||||||||||||||||||||||||||
Charge-offs | (2,973) | (151) | (6,833) | 0 | (2,241) | (934) | 0 | (13,132) | |||||||||||||||||||||||||||||||||||||||
Recoveries | 1,244 | 2,204 | 1,203 | 0 | 1,448 | 336 | 0 | 6,435 | |||||||||||||||||||||||||||||||||||||||
Provision for credit loss expense | (7,048) | 423 | 8,942 | (670) | (2,592) | 44 | (99) | (1,000) | |||||||||||||||||||||||||||||||||||||||
Ending balance-December 31, 2019 | $ | 74,099 | 50,925 | 74,396 | 6,816 | 17,391 | 2,548 | 1,945 | 228,120 |
December 31, 2020 | |||||||||||||||||||||||||||||
Municipal Bonds | Corporate and Other Debt Securities | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance-December 31, 2019 | $ | 0 | 0 | 0 | |||||||||||||||||||||||||
Impact of adopting ASC 326 | 17 | 2,547 | 2,564 | ||||||||||||||||||||||||||
Provision for credit loss | 17 | 683 | 700 | ||||||||||||||||||||||||||
Ending balance-December 31, 2020 | $ | 34 | 3,230 | 3,264 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Land | $ | 10,731 | 18,048 | |||||||||||
Office buildings | 44,895 | 70,887 | ||||||||||||
Leasehold improvements | 124,752 | 131,129 | ||||||||||||
Furniture, fixtures and equipment | 109,909 | 108,125 | ||||||||||||
Construction in process | 6,992 | 3,192 | ||||||||||||
297,279 | 331,381 | |||||||||||||
Less accumulated depreciation and amortization | 157,616 | 161,767 | ||||||||||||
$ | 139,663 | 169,614 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in thousands) | |||||||||||
Operating lease right-of-use assets | $ | 199,981 | $ | 175,143 | |||||||
Operating lease liabilities | 212,559 | 185,827 | |||||||||
Weighted average remaining lease term | 9.4 years | 9.7 years | |||||||||
Weighted average discount rate | 2.49 | % | 2.74 | % |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Included in office occupancy and equipment expense: | |||||||||||||||||
Operating lease cost | $ | 26,242 | 25,245 | ||||||||||||||
Short-term lease cost | 460 | 306 | |||||||||||||||
Variable lease cost | (2) | (1) | |||||||||||||||
Included in other income: | |||||||||||||||||
Sublease income | 253 | 268 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $ | 24,973 | 24,497 | ||||||||||||||
Operating lease liabilities arising from obtaining right-of-use assets (non-cash): | |||||||||||||||||
Operating leases | 46,758 | 2,996 |
December 31, 2020 | |||||
(In thousands) | |||||
2021 | $ | 28,844 | |||
2022 | 27,448 | ||||
2023 | 26,354 | ||||
2024 | 26,300 | ||||
2025 | 25,496 | ||||
Thereafter | 104,729 | ||||
Total lease payments | 239,171 | ||||
Less: Imputed interest | (26,612) | ||||
Total operating lease liabilities | $ | 212,559 |
December 31, 2019 | |||||
(In thousands) | |||||
2020 | $ | 24,013 | |||
2021 | 23,888 | ||||
2022 | 22,270 | ||||
2023 | 21,227 | ||||
2024 | 21,162 | ||||
Thereafter | 100,662 | ||||
Total lease payments | 213,222 | ||||
Less: Imputed interest | (27,395) | ||||
Total operating lease liabilities | $ | 185,827 |
December 31, 2020 | December 31, 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Mortgage servicing rights | $ | 10,957 | 12,125 | |||||||||||
Core deposit premiums | 3,560 | 2,530 | ||||||||||||
Other | 581 | 668 | ||||||||||||
Total other intangible assets | 15,098 | 15,323 | ||||||||||||
Goodwill | 94,535 | 82,546 | ||||||||||||
Goodwill and intangible assets | $ | 109,633 | 97,869 |
Gross Intangible Asset | Accumulated Amortization | Valuation Allowance | Net Intangible Assets | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Mortgage Servicing Rights | $ | 17,559 | (5,592) | (1,010) | 10,957 | |||||||||||||||||||||
Core Deposit Premiums | 23,063 | (19,503) | 0 | 3,560 | ||||||||||||||||||||||
Other | 1,150 | (569) | 0 | 581 | ||||||||||||||||||||||
Total other intangible assets | $ | 41,772 | (25,664) | (1,010) | 15,098 | |||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Mortgage Servicing Rights | $ | 19,368 | (7,140) | (103) | 12,125 | |||||||||||||||||||||
Core Deposit Premiums | 20,561 | (18,031) | 0 | 2,530 | ||||||||||||||||||||||
Other | 1,150 | (482) | 0 | 668 | ||||||||||||||||||||||
Total other intangible assets | $ | 41,079 | (25,653) | (103) | 15,323 |
Mortgage Servicing Rights | Core Deposit Premiums | Other | |||||||||||||||
(In thousands) | |||||||||||||||||
2021 | $ | 382 | $ | 1,097 | $ | 67 | |||||||||||
2022 | 390 | 787 | 57 | ||||||||||||||
2023 | 401 | 479 | 57 | ||||||||||||||
2024 | 414 | 244 | 57 | ||||||||||||||
2025 | 425 | 218 | 57 |
December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Weighted Average Rate | Amount | % of Total | Weighted Average Rate | Amount | % of Total | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Non-interest bearing: | |||||||||||||||||||||||||||||||||||
Checking accounts | — | % | $ | 3,663,073 | 18.76 | % | — | % | $ | 2,472,232 | 13.84 | % | |||||||||||||||||||||||
Interest-bearing: | |||||||||||||||||||||||||||||||||||
Checking accounts | 0.49 | % | 6,043,393 | 30.95 | % | 1.36 | % | 5,512,979 | 30.87 | % | |||||||||||||||||||||||||
Money market deposits | 0.42 | % | 5,037,327 | 25.80 | % | 1.50 | % | 3,817,718 | 21.37 | % | |||||||||||||||||||||||||
Savings | 0.48 | % | 2,063,447 | 10.57 | % | 0.86 | % | 2,050,101 | 11.48 | % | |||||||||||||||||||||||||
Certificates of deposit | 0.97 | % | 2,718,179 | 13.92 | % | 1.67 | % | 4,007,308 | 22.44 | % | |||||||||||||||||||||||||
Total Deposits | 0.45 | % | $ | 19,525,419 | 100.00 | % | 1.21 | % | $ | 17,860,338 | 100.00 | % |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Within one year | $ | 2,386,850 | 3,627,229 | |||||||||||
One to two years | 271,302 | 309,934 | ||||||||||||
Two to three years | 31,893 | 42,170 | ||||||||||||
Three to four years | 15,016 | 14,435 | ||||||||||||
After four years | 13,118 | 13,540 | ||||||||||||
$ | 2,718,179 | 4,007,308 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Checking accounts | $ | 42,014 | 84,698 | 62,447 | |||||||||||||
Money market deposits | 42,568 | 60,896 | 46,394 | ||||||||||||||
Savings | 12,056 | 17,148 | 13,240 | ||||||||||||||
Certificates of deposit | 58,951 | 99,115 | 66,564 | ||||||||||||||
Total | $ | 155,589 | 261,857 | 188,645 |
December 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Principal | Weighted Average Rate (1) | Principal | Weighted Average Rate (1) | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Funds borrowed under repurchase agreements: | ||||||||||||||||||||||||||
Other brokers | $ | 448,514 | 1.97% | $ | 447,910 | 2.16% | ||||||||||||||||||||
Other borrowed funds: | ||||||||||||||||||||||||||
FHLB advances | 2,662,574 | 1.20% | 4,979,201 | 1.94% | ||||||||||||||||||||||
Subordinated debt (2) | 14,702 | 6.50% | 0 | 0% | ||||||||||||||||||||||
Other | 170,000 | 0.13% | 400,000 | 1.63% | ||||||||||||||||||||||
Total other borrowed funds | 2,847,276 | 1.17% | 5,379,201 | 1.92% | ||||||||||||||||||||||
Total borrowed funds | $ | 3,295,790 | 1.28% | $ | 5,827,111 | 1.94% |
December 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Principal | Weighted Average Rate (1) | Principal | Weighted Average Rate (1) | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Within one year | $ | 1,513,000 | 0.33% | $ | 3,736,000 | 1.89% | ||||||||||||||||||||
One to two years | 574,741 | 2.15% | 425,000 | 1.94% | ||||||||||||||||||||||
Two to three years | 520,989 | 2.10% | 799,958 | 2.04% | ||||||||||||||||||||||
Three to four years | 672,358 | 1.90% | 494,526 | 2.12% | ||||||||||||||||||||||
Four to five years | 0 | 0% | 371,627 | 1.96% | ||||||||||||||||||||||
After five years (2) | 14,702 | 6.50% | 0 | 0% | ||||||||||||||||||||||
Total borrowed funds | $ | 3,295,790 | 1.28% | $ | 5,827,111 | 1.94% |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Amortized cost of collateral: | ||||||||||||||
Mortgage-backed securities | $ | 471,506 | 480,501 | |||||||||||
Total amortized cost of collateral | $ | 471,506 | 480,501 | |||||||||||
Fair value of collateral: | ||||||||||||||
Mortgage-backed securities | $ | 494,160 | 487,322 | |||||||||||
Total fair value of collateral | $ | 494,160 | 487,322 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Current tax expense: | ||||||||||||||||||||
Federal | $ | 82,039 | 32,881 | 34,668 | ||||||||||||||||
State | 27,112 | 12,743 | 17,661 | |||||||||||||||||
109,151 | 45,624 | 52,329 | ||||||||||||||||||
Deferred tax (benefit) expense: | ||||||||||||||||||||
Federal | (25,104) | 28,784 | 16,979 | |||||||||||||||||
State | (9,086) | 16,840 | (1,466) | |||||||||||||||||
(34,190) | 45,624 | 15,513 | ||||||||||||||||||
Total income tax expense | $ | 74,961 | 91,248 | 67,842 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
“Expected” federal income tax expense | $ | 62,273 | 60,214 | 56,788 | ||||||||||||||||
State tax, net | 12,790 | 19,075 | 12,487 | |||||||||||||||||
Impact of tax law changes | 0 | 7,823 | (2,284) | |||||||||||||||||
Tax exempt interest | (2,399) | (1,519) | (974) | |||||||||||||||||
Non-deductible FDIC premiums | 1,169 | 1,229 | 1,636 | |||||||||||||||||
Bank owned life insurance | (1,394) | (1,374) | (1,242) | |||||||||||||||||
Tax credits | (1,610) | 0 | 0 | |||||||||||||||||
Other | 4,132 | 5,800 | 1,431 | |||||||||||||||||
Total income tax expense | $ | 74,961 | 91,248 | 67,842 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Deferred tax asset: | ||||||||||||||
Employee benefits | $ | 29,754 | 17,934 | |||||||||||
Deferred compensation | 480 | 562 | ||||||||||||
Premises and equipment | 3,926 | 0 | ||||||||||||
Allowance for credit losses | 84,018 | 60,869 | ||||||||||||
Net unrealized loss on hedging activities | 30,399 | 11,877 | ||||||||||||
ESOP | 4,123 | 3,826 | ||||||||||||
Fair value adjustments related to acquisitions | 11,527 | 11,436 | ||||||||||||
Loan origination costs | 8,004 | 7,510 | ||||||||||||
State NOL | 312 | 815 | ||||||||||||
Other | 1,393 | 958 | ||||||||||||
Gross deferred tax asset | 173,936 | 115,787 | ||||||||||||
Deferred tax liability: | ||||||||||||||
Mortgage servicing rights | 3,034 | 3,308 | ||||||||||||
Premises and equipment | 0 | 5,686 | ||||||||||||
Net unrealized gain on debt securities available-for-sale | 14,018 | 4,947 | ||||||||||||
Equipment financing | 39,627 | 37,201 | ||||||||||||
Other | 452 | 425 | ||||||||||||
Gross deferred tax liability | 57,131 | 51,567 | ||||||||||||
Net deferred tax asset | $ | 116,805 | 64,220 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In thousands) | |||||||||||
Change in benefit obligation: | |||||||||||
Benefit obligation at beginning of year | $ | 46,009 | 40,224 | ||||||||
Interest cost | 1,297 | 1,588 | |||||||||
Gain due to change in mortality assumption | (451) | (423) | |||||||||
Loss due to change in discount rate | 4,323 | 4,785 | |||||||||
Loss due to demographic changes | 813 | 133 | |||||||||
Actuarial loss | 205 | 591 | |||||||||
Benefits paid | (889) | (889) | |||||||||
Benefit obligation at end of year | 51,307 | 46,009 | |||||||||
Funded status | $ | (51,307) | (46,009) |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Net actuarial loss | $ | 11,777 | 8,083 | |||||||||||
Total amounts recognized in accumulated other comprehensive loss | $ | 11,777 | 8,083 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Discount rate | 2.01 | % | 2.88 | % | |||||||
Rate of compensation increase | 0 | % | 0 | % |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Interest cost | $ | 1,297 | 1,588 | 1,419 | |||||||||||||
Amortization of: | |||||||||||||||||
Net loss | 1,195 | 0 | 506 | ||||||||||||||
Total net periodic benefit cost | $ | 2,492 | 1,588 | 1,925 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Discount rate | 2.88 | % | 3.99 | % | 3.34 | % | |||||||||||
Rate of compensation increase | 0 | % | 0 | % | 0 | % |
Amount | |||||
(In thousands) | |||||
2021 | $ | 2,872 | |||
2022 | 2,845 | ||||
2023 | 3,056 | ||||
2024 | 3,023 | ||||
2025 | 2,988 | ||||
2026 through 2030 | 15,284 |
For the Year Ended December 31, | |||||||||||||||||
2019(1) | 2018 | ||||||||||||||||
Weighted average expected life (in years) | 4.83 | 6.50 | |||||||||||||||
Weighted average risk-free rate of return | 1.86 | % | 2.80 | % | |||||||||||||
Weighted average volatility | 19.92 | % | 17.71 | % | |||||||||||||
Dividend yield | 3.96 | % | 2.78 | % | |||||||||||||
Weighted average fair value of options granted | $ | 0.89 | $ | 1.94 | |||||||||||||
Total stock options granted | 995,216 | 50,000 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Stock option expense | $ | 3,869 | 5,935 | 5,554 | |||||||||||||
Restricted stock expense | 10,896 | 14,026 | 12,799 | ||||||||||||||
Total share-based compensation expense (1) | $ | 14,765 | 19,961 | 18,353 |
Number of Shares Awarded | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at December 31, 2019 | 2,894,352 | $ | 12.57 | |||||||||||
Granted | 91,249 | 10.00 | ||||||||||||
Vested | (988,225) | 12.61 | ||||||||||||
Forfeited | (23,141) | 12.25 | ||||||||||||
Outstanding and non-vested at December 31, 2020 | 1,974,235 | $ | 12.44 |
Number of Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||
Outstanding at December 31, 2019 | 5,654,461 | $ | 12.46 | 5.5 | $ | 363 | ||||||||||||||||||||
Granted | 0 | 0 | 0 | |||||||||||||||||||||||
Exercised | 0 | 0 | 0 | |||||||||||||||||||||||
Forfeited | (16,516) | 12.54 | ||||||||||||||||||||||||
Expired | (67,087) | 12.54 | ||||||||||||||||||||||||
Outstanding at December 31, 2020 | 5,570,858 | $ | 12.46 | 4.5 | $ | 191 | ||||||||||||||||||||
Exercisable at December 31, 2020 | 3,796,944 | $ | 12.43 | 4.5 | $ | 191 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2020 | At December 31, 2019 | At December 31, 2020 | At December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Balance Sheet Location | Fair Value | Notional amount | Balance Sheet Location | Fair Value | Notional amount | Balance Sheet Location | Fair Value | Notional amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||||||||||||||||
(In millions) | (In thousands) | (In millions) | (In thousands) | (In millions) | (In thousands) | (In millions) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | $ | 3,325 | Other assets | $ | 370 | $ | 2,675 | Other assets | $ | 559 | $ | 0 | Other liabilities | $ | 0 | $ | 0 | Other liabilities | $ | 0 | |||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 370 | $ | 559 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | $ | 1,266 | Other assets | $ | 34,169 | $ | 652 | Other assets | $ | 5,430 | $ | 17 | Other liabilities | $ | 237 | $ | 0 | Other liabilities | $ | 0 | |||||||||||||||||||||||||||
Other Contracts | 0 | Other assets | 0 | 0 | Other assets | 0 | 34 | Other liabilities | 217 | 22 | Other liabilities | 125 | |||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 34,169 | $ | 5,430 | $ | 454 | $ | 125 | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In thousands) | |||||||||||
Cash Flow Hedges - Interest rate swaps | |||||||||||
Amount of loss recognized in other comprehensive income (loss) | $ | (111,851) | $ | (56,448) | |||||||
Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) to interest expense | (31,770) | 3,399 | |||||||||
Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) to other expense | (14,192) | 0 | |||||||||
Years Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
The effects of fair value and cash flow hedging: | Income statement location | (In thousands) | ||||||||||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | ||||||||||||||
Interest contracts | ||||||||||||||
Hedged items | Interest income | $ | 4,529 | $ | 6,287 | |||||||||
Derivatives designated as hedging instruments (1) | Interest income | (7,734) | (6,712) | |||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||||||||||||
Interest contracts | ||||||||||||||
Amount of (loss) gain reclassified from accumulated other comprehensive income (loss) | Interest expense | (31,770) | 3,399 | |||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) as a result that a forecasted transaction is no longer probable of occurring | Other expense | (14,192) | 0 | |||||||||||
Total amounts of income and expense line items presented in the income statement in which the effects of fair value are recorded | $ | (49,167) | $ | 2,974 |
Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | ||||||||||||||||||||||
Balance sheet location | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Loans receivable, net (1) | $ | 0 | $ | 478,120 | $ | 8,798 | $ | 6,426 | |||||||||||||||
Consolidated Statements of Income location | Amount of Gain or (Loss) Recognized in Income on Derivative | |||||||||||||
Years Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Other Contracts | Other income / (expense) | $ | 126 | (5) | ||||||||||
Total | $ | 126 | (5) |
Gross Amounts Not Offset | |||||||||||||||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset | Net Amounts Presented | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Derivative contracts | $ | 460 | 0 | 460 | 0 | 0 | 460 | ||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Derivative contracts | $ | 454 | 0 | 454 | 0 | 450 | 4 | ||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Derivative contracts | $ | 821 | 0 | 821 | 0 | 0 | 821 | ||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Derivative contracts | $ | 125 | 0 | 125 | 0 | 0 | 125 |
Carrying Value at December 31, 2020 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | (In thousands) | ||||||||||||||||||||||
Equity securities | $ | 36,000 | 36,000 | 0 | 0 | ||||||||||||||||||
Debt securities available for sale: | |||||||||||||||||||||||
Government-sponsored enterprises | $ | 4,482 | 0 | 4,482 | 0 | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 1,317,052 | 0 | 1,317,052 | 0 | |||||||||||||||||||
Federal National Mortgage Association | 1,205,426 | 0 | 1,205,426 | 0 | |||||||||||||||||||
Government National Mortgage Association | 231,477 | 0 | 231,477 | 0 | |||||||||||||||||||
Total debt securities available-for-sale | $ | 2,758,437 | 0 | 2,758,437 | 0 | ||||||||||||||||||
Interest rate swaps | $ | 34,539 | 0 | 34,539 | 0 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
Interest rate swaps | $ | 237 | 0 | 237 | 0 | ||||||||||||||||||
Other contracts | 217 | 0 | 217 | 0 | |||||||||||||||||||
Total derivatives | $ | 454 | 0 | 454 | 0 |
Carrying Value at December 31, 2019 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | (In thousands) | ||||||||||||||||||||||
Equity securities | $ | 6,039 | 6,039 | 0 | 0 | ||||||||||||||||||
Debt securities available for sale: | |||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Federal Home Loan Mortgage Corporation | $ | 1,240,379 | 0 | 1,240,379 | 0 | ||||||||||||||||||
Federal National Mortgage Association | 1,178,049 | 0 | 1,178,049 | 0 | |||||||||||||||||||
Government National Mortgage Association | 276,962 | 0 | 276,962 | 0 | |||||||||||||||||||
Total debt securities available-for-sale | $ | 2,695,390 | 0 | 2,695,390 | 0 | ||||||||||||||||||
Interest rate swaps | $ | 5,989 | 0 | 5,989 | 0 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
Other contracts | $ | 125 | 0 | 125 | 0 | ||||||||||||||||||
Total derivatives | $ | 125 | 0 | 125 | 0 |
Security Type | Valuation Technique | Unobservable Input | Range | Weighted Average Input | Carrying Value at December 31, 2020 | ||||||||||||||||||||||||
Minimum | Maximum | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
MSR, net | Estimated cash flow | Prepayment speeds | 14.5% | 23.6% | 17.76% | $ | 10,663 | 0 | 0 | 10,663 | |||||||||||||||||||
Operating lease equipment | Market comparable | Lack of marketability | 0.0% | 10.4% | 10.41% | 15,007 | 0 | 0 | 15,007 | ||||||||||||||||||||
$ | 25,670 | 0 | 0 | 25,670 |
Security Type | Valuation Technique | Unobservable Input | Range | Weighted Average Input | Carrying Value at December 31, 2019 | ||||||||||||||||||||||||
Minimum | Maximum | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
MSR, net | Estimated cash flow | Prepayment speeds | 6.6% | 29.1% | 11.04% | $ | 10,409 | 0 | 0 | 10,409 | |||||||||||||||||||
Other real estate owned | Market comparable | Lack of marketability | 0.0% | 25.0% | 2.70% | 262 | 0 | 0 | 262 | ||||||||||||||||||||
$ | 10,671 | 0 | 0 | 10,671 |
December 31, 2020 | |||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||
value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 170,432 | 170,432 | 170,432 | 0 | 0 | |||||||||||||||||||||||
Equities | 36,000 | 36,000 | 36,000 | 0 | 0 | ||||||||||||||||||||||||
Debt securities available-for-sale | 2,758,437 | 2,758,437 | 0 | 2,758,437 | 0 | ||||||||||||||||||||||||
Debt securities held-to-maturity, net | 1,247,853 | 1,320,872 | 0 | 1,253,566 | 67,306 | ||||||||||||||||||||||||
FHLB stock | 159,829 | 159,829 | 159,829 | 0 | 0 | ||||||||||||||||||||||||
Loans held for sale | 30,357 | 30,357 | 0 | 30,357 | 0 | ||||||||||||||||||||||||
Net loans | 20,580,451 | 20,787,917 | 0 | 0 | 20,787,917 | ||||||||||||||||||||||||
Derivative financial instruments | 34,539 | 34,539 | 0 | 34,539 | 0 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits, other than time deposits | $ | 16,807,240 | 16,807,240 | 16,807,240 | 0 | 0 | |||||||||||||||||||||||
Time deposits | 2,718,179 | 2,726,230 | 0 | 2,726,230 | 0 | ||||||||||||||||||||||||
Borrowed funds | 3,295,790 | 3,367,491 | 0 | 3,367,491 | 0 | ||||||||||||||||||||||||
Derivative financial instruments | 454 | 454 | 0 | 454 | 0 |
December 31, 2019 | |||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||
value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 174,915 | 174,915 | 174,915 | 0 | 0 | |||||||||||||||||||||||
Equities | 6,039 | 6,039 | 6,039 | 0 | 0 | ||||||||||||||||||||||||
Debt securities available-for-sale | 2,695,390 | 2,695,390 | 0 | 2,695,390 | 0 | ||||||||||||||||||||||||
Debt securities held-to-maturity | 1,148,815 | 1,190,104 | 0 | 1,116,771 | 73,333 | ||||||||||||||||||||||||
FHLB stock | 267,219 | 267,219 | 267,219 | 0 | 0 | ||||||||||||||||||||||||
Loans held for sale | 29,797 | 29,797 | 0 | 29,797 | 0 | ||||||||||||||||||||||||
Net loans | 21,476,056 | 21,563,627 | 0 | 0 | 21,563,627 | ||||||||||||||||||||||||
Derivative financial instruments | 5,989 | 5,989 | 0 | 5,989 | 0 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits, other than time deposits | $ | 13,853,030 | 13,853,030 | 13,853,030 | 0 | 0 | |||||||||||||||||||||||
Time deposits | 4,007,308 | 4,007,342 | 0 | 4,007,342 | 0 | ||||||||||||||||||||||||
Borrowed funds | 5,827,111 | 5,834,895 | 0 | 5,834,895 | 0 | ||||||||||||||||||||||||
Derivative financial instruments | 125 | 125 | 0 | 125 | 0 |
Actual | Minimum Capital Requirement with Conservation Buffer | To be Well Capitalized Under Prompt Corrective Action Provisions (2) | ||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 (1) | ||||||||||||||||||||||||||||||||||||||
Bank: | ||||||||||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 2,391,126 | 9.08 | % | $ | 1,053,636 | 4.000 | % | $ | 1,317,045 | 5.00 | % | ||||||||||||||||||||||||||
Common equity tier 1 risk-based | 2,391,126 | 11.72 | % | 1,428,527 | 7.000 | % | 1,326,489 | 6.50 | % | |||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 2,391,126 | 11.72 | % | 1,734,640 | 8.500 | % | 1,632,602 | 8.00 | % | |||||||||||||||||||||||||||||
Total Risk-Based Capital | 2,646,520 | 12.97 | % | 2,142,790 | 10.500 | % | 2,040,753 | 10.00 | % | |||||||||||||||||||||||||||||
Investors Bancorp, Inc: | ||||||||||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 2,674,590 | 10.14 | % | $ | 1,054,677 | 4.000 | % | n/a | n/a | ||||||||||||||||||||||||||||
Common equity tier 1 risk-based | 2,674,590 | 13.07 | % | 1,432,164 | 7.000 | % | n/a | n/a | ||||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 2,674,590 | 13.07 | % | 1,739,056 | 8.500 | % | n/a | n/a | ||||||||||||||||||||||||||||||
Total Risk-Based Capital | 2,944,128 | 14.39 | % | 2,148,246 | 10.500 | % | n/a | n/a |
Actual | Minimum Capital Requirement with Conservation Buffer | To be Well Capitalized Under Prompt Corrective Action Provisions (2) | ||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2019 (1) | ||||||||||||||||||||||||||||||||||||||
Bank: | ||||||||||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 2,197,188 | 8.22 | % | $ | 1,069,276 | 4.000 | % | $ | 1,336,595 | 5.00 | % | ||||||||||||||||||||||||||
Common equity tier 1 risk-based | 2,197,188 | 11.03 | % | 1,394,527 | 7.000 | % | 1,294,918 | 6.50 | % | |||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 2,197,188 | 11.03 | % | 1,693,355 | 8.500 | % | 1,593,746 | 8.00 | % | |||||||||||||||||||||||||||||
Total Risk-Based Capital | 2,426,233 | 12.18 | % | 2,091,791 | 10.500 | % | 1,992,182 | 10.00 | % | |||||||||||||||||||||||||||||
Investors Bancorp, Inc: | ||||||||||||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 2,553,447 | 9.53 | % | $ | 1,072,095 | 4.000 | % | n/a | n/a | ||||||||||||||||||||||||||||
Common equity tier 1 risk-based | 2,553,447 | 12.78 | % | 1,399,008 | 7.000 | % | n/a | n/a | ||||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 2,553,447 | 12.78 | % | 1,698,795 | 8.500 | % | n/a | n/a | ||||||||||||||||||||||||||||||
Total Risk-Based Capital | 2,782,493 | 13.92 | % | 2,098,512 | 10.500 | % | n/a | n/a |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 144,955 | 209,879 | |||||||||||
Equity securities | 30,826 | 1,033 | ||||||||||||
Debt securities held-to-maturity, net (estimated fair value of $25,203 and $25,362 at December 31, 2020 and 2019, respectively) | 24,767 | 25,000 | ||||||||||||
Investment in subsidiary | 2,426,386 | 2,265,690 | ||||||||||||
ESOP loan receivable | 85,124 | 87,148 | ||||||||||||
Other assets | 36,661 | 37,973 | ||||||||||||
Total Assets | $ | 2,748,719 | 2,626,723 | |||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||
Total liabilities | $ | 38,716 | 4,773 | |||||||||||
Total stockholders’ equity | 2,710,003 | 2,621,950 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,748,719 | 2,626,723 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Income: | |||||||||||||||||
Interest on ESOP loan receivable | $ | 4,140 | 4,889 | 4,086 | |||||||||||||
Dividend from subsidiary | 105,000 | 675,000 | 289,200 | ||||||||||||||
Interest on deposit with subsidiary | 2 | 2 | 2 | ||||||||||||||
Interest and dividends on investments | 249 | 424 | 256 | ||||||||||||||
Gain on securities, net | 173 | 0 | 130 | ||||||||||||||
Other income | 1,081 | 12 | 11 | ||||||||||||||
110,645 | 680,327 | 293,685 | |||||||||||||||
Expenses: | |||||||||||||||||
Interest expense | 741 | 193 | 193 | ||||||||||||||
Provision for credit losses | 51 | 0 | 0 | ||||||||||||||
Other expenses | 2,003 | 2,265 | 2,671 | ||||||||||||||
Income before income tax expense | 107,850 | 677,869 | 290,821 | ||||||||||||||
Income tax expense | 748 | 1,457 | 43 | ||||||||||||||
Income before undistributed earnings of subsidiary | 107,102 | 676,412 | 290,778 | ||||||||||||||
Equity in undistributed earnings of subsidiary (dividend in excess of earnings) | 114,478 | (480,928) | (88,202) | ||||||||||||||
Net income | $ | 221,580 | 195,484 | 202,576 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Net income | $ | 221,580 | 195,484 | 202,576 | |||||||||||||
Total other comprehensive income | 0 | 0 | 0 | ||||||||||||||
Total comprehensive income | $ | 221,580 | 195,484 | 202,576 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 221,580 | 195,484 | 202,576 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
(Equity in undistributed earnings of subsidiary) dividend in excess of earnings | (114,478) | 480,928 | 88,202 | |||||||||||||||||
Provision for credit losses | 51 | 0 | 0 | |||||||||||||||||
Gain on securities transactions, net | (173) | 0 | (130) | |||||||||||||||||
Decrease in other assets | 8,811 | 11,362 | 19,409 | |||||||||||||||||
Increase (decrease) in other liabilities | 20,011 | (2,906) | 4,374 | |||||||||||||||||
Net cash provided by operating activities | 135,802 | 684,868 | 314,431 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash consideration paid, net of cash consideration received for acquisition | (29,535) | 0 | 0 | |||||||||||||||||
Purchases of equity securities | (29,620) | 0 | 0 | |||||||||||||||||
Purchases of debt securities held-to-maturity | 0 | (20,000) | 0 | |||||||||||||||||
Principal collected on ESOP loan | 2,024 | 1,737 | 1,909 | |||||||||||||||||
Net cash (used in) provided by investing activities | (57,131) | (18,263) | 1,909 | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Loan to ESOP | 0 | (5,000) | 0 | |||||||||||||||||
Purchase of treasury stock | (23,920) | (475,946) | (258,175) | |||||||||||||||||
Exercise of stock options | 0 | 813 | 5,743 | |||||||||||||||||
Dividends paid | (119,675) | (122,163) | (113,186) | |||||||||||||||||
Net cash used in financing activities | (143,595) | (602,296) | (365,618) | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (64,924) | 64,309 | (49,278) | |||||||||||||||||
Cash and cash equivalents at beginning of year | 209,879 | 145,570 | 194,848 | |||||||||||||||||
Cash and cash equivalents at end of year | $ | 144,955 | 209,879 | 145,570 |
2020 Quarter Ended | ||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||
Interest and dividend income | $ | 256,099 | 246,214 | 240,701 | 237,880 | |||||||||||||||||||||
Interest expense | 82,816 | 64,227 | 59,079 | 49,086 | ||||||||||||||||||||||
Net interest income | 173,283 | 181,987 | 181,622 | 188,794 | ||||||||||||||||||||||
Provision for credit losses | 31,226 | 33,278 | 8,336 | (2,682) | ||||||||||||||||||||||
Net interest income after provision for credit losses | 142,057 | 148,709 | 173,286 | 191,476 | ||||||||||||||||||||||
Non-interest income | 14,660 | 10,140 | 19,926 | 45,792 | ||||||||||||||||||||||
Non-interest expenses | 102,558 | 100,020 | 104,060 | 142,867 | ||||||||||||||||||||||
Income before income tax expense | 54,159 | 58,829 | 89,152 | 94,401 | ||||||||||||||||||||||
Income tax expense | 14,647 | 16,218 | 24,840 | 19,256 | ||||||||||||||||||||||
Net income | $ | 39,512 | 42,611 | 64,312 | 75,145 | |||||||||||||||||||||
Basic earnings per common share | $ | 0.17 | 0.18 | 0.27 | 0.32 | |||||||||||||||||||||
Diluted earnings per common share | $ | 0.17 | 0.18 | 0.27 | 0.32 |
2019 Quarter Ended | ||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||
Interest and dividend income | $ | 256,217 | 259,068 | 264,554 | 260,380 | |||||||||||||||||||||
Interest expense | 93,539 | 99,900 | 100,102 | 91,605 | ||||||||||||||||||||||
Net interest income | 162,678 | 159,168 | 164,452 | 168,775 | ||||||||||||||||||||||
Provision for loan losses | 3,000 | (3,000) | (2,500) | 1,500 | ||||||||||||||||||||||
Net interest income after provision for loan losses | 159,678 | 162,168 | 166,952 | 167,275 | ||||||||||||||||||||||
Non-interest income | 11,194 | 6,981 | 14,780 | 20,458 | ||||||||||||||||||||||
Non-interest expenses | 103,409 | 103,804 | 108,718 | 106,823 | ||||||||||||||||||||||
Income before income tax expense | 67,463 | 65,345 | 73,014 | 80,910 | ||||||||||||||||||||||
Income tax expense | 19,305 | 18,721 | 21,042 | 32,180 | ||||||||||||||||||||||
Net income | $ | 48,158 | 46,624 | 51,972 | 48,730 | |||||||||||||||||||||
Basic earnings per common share | $ | 0.18 | 0.18 | 0.20 | 0.19 | |||||||||||||||||||||
Diluted earnings per common share | $ | 0.18 | 0.18 | 0.20 | 0.19 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||
Earnings for basic and diluted earnings per common share | |||||||||||||||||
Earnings applicable to common stockholders | $ | 221,580 | $ | 195,484 | $ | 202,576 | |||||||||||
Shares | |||||||||||||||||
Weighted-average common shares outstanding - basic | 235,761,457 | 262,202,598 | 281,925,219 | ||||||||||||||
Effect of dilutive common stock equivalents(1) | 77,351 | 317,190 | 866,640 | ||||||||||||||
Weighted-average common shares outstanding - diluted | 235,838,808 | 262,519,788 | 282,791,859 | ||||||||||||||
Earnings per common share | |||||||||||||||||
Basic | $ | 0.94 | $ | 0.75 | $ | 0.72 | |||||||||||
Diluted | $ | 0.94 | $ | 0.74 | $ | 0.72 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Tax | Net | Gross | Tax | Net | Gross | Tax | Net | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 296,541 | (74,961) | 221,580 | 286,732 | (91,248) | 195,484 | 270,418 | (67,842) | 202,576 | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in funded status of retirement obligations | (3,889) | 1,094 | (2,795) | (5,108) | 1,436 | (3,672) | 3,647 | (1,025) | 2,622 | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on debt securities available-for-sale | 36,434 | (8,686) | 27,748 | 44,934 | (10,815) | 34,119 | (15,925) | 4,629 | (11,296) | ||||||||||||||||||||||||||||||||||||||||||||
Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale | 266 | (64) | 202 | 777 | (242) | 535 | 834 | (235) | 599 | ||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for security losses included in net income | 0 | 0 | 0 | 5,690 | (1,469) | 4,221 | 32,848 | (8,646) | 24,202 | ||||||||||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 | 1,141 | (321) | 820 | 1,068 | (300) | 768 | 4,291 | (1,206) | 3,085 | ||||||||||||||||||||||||||||||||||||||||||||
Net losses on derivatives | (65,889) | 18,520 | (47,369) | (59,847) | 16,823 | (43,024) | (1,163) | 327 | (836) | ||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive (loss) income | (31,937) | 10,543 | (21,394) | (12,486) | 5,433 | (7,053) | 24,532 | (6,156) | 18,376 | ||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | $ | 264,604 | (64,418) | 200,186 | 274,246 | (85,815) | 188,431 | 294,950 | (73,998) | 220,952 |
Change in funded status of retirement obligations | Accretion of loss on debt securities reclassified to held-to-maturity | Unrealized gains (losses) on debt securities available-for-sale and gains included in net income | Other-than-temporary impairment accretion on debt securities | Unrealized (losses) gains on derivatives | Total accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2019 | $ | (6,690) | (386) | 29,456 | (10,629) | (30,373) | (18,622) | ||||||||||||||||||||||||||||||||||
Net change | (2,795) | 202 | 27,748 | 820 | (47,369) | (21,394) | |||||||||||||||||||||||||||||||||||
Balance - December 31, 2020 | $ | (9,485) | (184) | 57,204 | (9,809) | (77,742) | (40,016) | ||||||||||||||||||||||||||||||||||
Balance - December 31, 2018 | $ | (3,018) | (921) | (8,884) | (11,397) | 12,651 | (11,569) | ||||||||||||||||||||||||||||||||||
Net change | (3,672) | 535 | 38,340 | 768 | (43,024) | (7,053) | |||||||||||||||||||||||||||||||||||
Balance - December 31, 2019 | $ | (6,690) | (386) | 29,456 | (10,629) | (30,373) | (18,622) |
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reclassification adjustment for losses included in net income | |||||||||||||||||||||||
Loss on securities, net | $ | 0 | 5,690 | ||||||||||||||||||||
Change in funded status of retirement obligations | |||||||||||||||||||||||
Adjustment of net obligation | (64) | 56 | |||||||||||||||||||||
Amortization of net loss (gain) | 1,198 | (8) | |||||||||||||||||||||
Compensation and fringe benefits | 1,134 | 48 | |||||||||||||||||||||
Reclassification adjustment for unrealized losses (gains) on derivatives | |||||||||||||||||||||||
Interest expense | 31,770 | (3,399) | |||||||||||||||||||||
Debt extinguishment | 14,192 | 0 | |||||||||||||||||||||
Total unrealized losses (gains) on derivatives reclassified | 45,962 | (3,399) | |||||||||||||||||||||
Total before tax | 47,096 | 2,339 | |||||||||||||||||||||
Income tax expense | (11,905) | (403) | |||||||||||||||||||||
Net of tax | $ | 35,191 | 1,936 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Revenue from contracts with customers included in: | |||||||||||||||||
Fees and service charges | $ | 13,764 | 15,780 | 13,394 | |||||||||||||
Other income | 12,100 | 9,520 | 8,321 | ||||||||||||||
Total revenue from contracts with customers | $ | 25,864 | 25,300 | 21,715 |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) (1) (2) | Option Awards ($) (1) (2) | Non-Equity Incentive Plan Compensation ($) (3) | Increase in Pension Value and Nonqualified Deferred Compensation Earnings ($) (4) | All Other Compensation ($) (5) | Total ($) | Total Without Change in Pension Value ($) | ||||||||||||||||||||||||||||||
Kevin Cummings, Chairman and Chief Executive Officer | 2020 2019 | | | 1,075,000 1,075,000 1,075,000 | | | — — — | | | — — — | | | — — — | | | 1,881,250 1,716,641 1,373,548 | | | 336,000 3,109,000 2,755,000 | | | 217,986 182,718 207,804 | | | 3,510,236 6,083,359 5,411,352 | | | 3,174,236 2,974,359 2,656,352 | | |||||||||||
Domenick A. Cama, President and Chief Operating Officer | | 2021 2020 2019 | | | 725,000 725,000 725,000 | | | — — — | | | — — — | | | — — — | | | 1,015,000 926,188 741,077 | | | 312,000 1,415,000 1,692,000 | | | 185,112 154,916 161,707 | | | 2,237,112 3,221,104 3,319,784 | | | 1,925,112 1,806,104 1,627,784 | | ||||||||||
Richard S. Spengler, Senior Executive Vice President and Chief Lending Officer | | 2021 2020 2019 | | | 480,000 465,000 465,000 | | | — — — | | | — — — | | | — — — | | | 504,000 445,528 317,118 | | | — 756,000 852,000 | | | 100,680 90,360 85,282 | | | 1,084,680 1,756,888 1,719,400 | | | 1,084,680 1,000,888 867,400 | | ||||||||||
Sean Burke, Executive Vice President and Chief Financial Officer | | 2021 2020 2019 | | | 475,000 450,000 450,000 | | | — — — | | | — — — | | | — — — | | | 498,750 441,485 412,493 | | | — 6,000 7,000 | | | 92,917 75,704 87,511 | | | 1,066,667 973,189 957,004 | | | 1,066,667 967,189 950,004 | | ||||||||||
Paul Kalamaras, Senior Executive Vice President and Chief Risk Officer | | 2021 2020 2019 | | | 450,000 450,000 450,000 | | | — — — | | | — — — | | | — — — | | | 472,500 456,993 412,493 | | | — 548,000 636,000 | | | 87,411 94,307 92,059 | | | 1,009,911 1,549,300 1,590,552 | | | 1,009,911 1,001,300 954,552 | |
(1) | As part of |
(2) | The amounts in this column reflect the | ||||||||||
Early adoption permitted | |||||||||||
Early adoption permitted to any removed or modified disclosures and delay of adoption of additional disclosures until the effective date | |||||||||||
Early adoption permitted for interim or annual goodwill impairment testing dates beginning after January 1, 2017 |
(3) | ||||||||
(5) |
Name | Calendar or Fiscal Year | Perquisites and Other Personal Benefits ($) (1) | Company Contribution for Medical and Insurance Benefits ($) | Company Contributions to ESOP and 401 (k) Plan and SERP I ($) | Total ($) | |||||||||||||||
Kevin Cummings | 2021 | 23,616 | 27,663 | 166,707 | 217,986 | |||||||||||||||
Domenick A. Cama | 2021 | 54,105 | 29,528 | 101,479 | 185,112 | |||||||||||||||
Richard S. Spengler | 2021 | 17,236 | 23,470 | 59,974 | 100,680 | |||||||||||||||
Sean Burke | 2021 | 9,788 | 23,672 | 59,457 | 92,917 | |||||||||||||||
Paul Kalamaras | 2021 | 24,271 | 4,226 | 58,914 | 87,411 |
(1) | A detailed description of the perquisites included in this column is set forth in the table below. |
Name | Calendar or Fiscal Year | Automobile Allowance ($) | Long Term Care ($) | Club Dues ($) | Executive Health Exam/Health Club Dues ($) | Total Perquisites and Other Personal Benefits ($) | ||||||||||||||||||
Kevin Cummings | 2021 | 9,089 | 12,329 | 2,198 | — | 23,616 | ||||||||||||||||||
Domenick A. Cama | 2021 | 20,588 | 16,008 | 17,509 | — | 54,105 | ||||||||||||||||||
Richard S. Spengler | 2021 | 7,702 | 2,633 | 6,902 | — | 17,236 | ||||||||||||||||||
Sean Burke | 2021 | 9,788 | — | — | — | 9,788 | ||||||||||||||||||
Paul Kalamaras | 2021 | 10,382 | 12,262 | 1,627 | — | 24,271 |
Estimated Payouts Under Non-Equity Incentive Plan Awards (1) | All Other Stock Awards Number of Shares of Units (#) | All Other Option Awards Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | ||||||||||||||||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | ||||||||||||||||||||||||||||
Kevin Cummings | 2/22/2021 | 940,625 | 1,410,938 | 1,881,250 | — | — | — | — | ||||||||||||||||||||||||
Domenick A. Cama | 2/22/2021 | 507,500 | 761,250 | 1,015,000 | — | — | — | — | ||||||||||||||||||||||||
Richard S. Spengler | 2/22/2021 | 252,000 | 378,000 | 504,000 | — | — | — | — | ||||||||||||||||||||||||
Sean Burke | 2/22/2021 | 249,375 | 374,063 | 498,750 | — | — | — | — | ||||||||||||||||||||||||
Paul Kalamaras | 2/22/2021 | 236,250 | 354,375 | 472,500 | — | — | — | — |
(1) | Amounts shown assume achievement of 50%, 75% and 100% of individual goals at Threshold, Target and Maximum, respectively. The range of estimated possible payouts reflects potential award opportunities under the Executive Officer Annual Incentive Plan. |
Name | Grant Date (1) | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) (2) Unexercisable | Option Exercise Price ($) | Option Expiration Date (3) | Number of Shares or Units of Stock That Have Not Vested (#) (2) | Market Value of Shares or Units of Stock That Have Not Vested ($) (4) | Equity Incentive Plan Awards: Number of Unearned Shares, Units, or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | |||||||||||||||||||||||||||
Kevin Cummings | 7/22/19 | 393,840 | 131,280 | $ | 12.54 | 6/23/25 | 126,588 | 1,917,808 | — | — | ||||||||||||||||||||||||||
Domenick A. Cama | 7/22/19 | 315,072 | 105,024 | $ | 12.54 | 6/23/25 | 101,270 | 1,534,241 | — | — | ||||||||||||||||||||||||||
Richard S. Spengler | 6/23/15 | 611,429 | 101,904 | $ | 12.54 | 6/23/25 | 57,143 | 865,716 | — | — | ||||||||||||||||||||||||||
2/27/17 | — | — | — | — | 12,000 | 181,800 | — | — | ||||||||||||||||||||||||||||
Sean Burke | 6/23/15 | 436,197 | 89,523 | $ | 12.54 | 6/23/25 | 50,000 | 757,500 | — | — | ||||||||||||||||||||||||||
2/27/17 | — | — | — | — | 8,000 | 121,200 | — | — | ||||||||||||||||||||||||||||
Paul Kalamaras | 6/23/15 | 611,429 | 101,904 | $ | 12.54 | 6/23/25 | 57,143 | 865,716 | — | — | ||||||||||||||||||||||||||
3/27/17 | — | — | — | — | 12,000 | 181,800 | — | — |
(1) | The awards with a grant date of July 22,2019 represent the Replacement Awards. Refer to the “Settlement of Stockholder Litigation” section in this Amendment No. 1 to the Annual Report on Form 10-K |
(2) | Stock option and restricted stock awards generally vest over a seven-year period commencing on the first anniversary of the date granted. |
(3) | Stock options generally expire if unexercised 10 years after the grant date. |
(4) | Amounts shown are based on the fair market value of Investors |
Option Awards | Stock Awards | |||||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | ||||||||||||
Kevin Cummings | — | — | 126,583 | 1,830,390 | ||||||||||||
Domenick A. Cama | — | — | 101,270 | 1,464,364 | ||||||||||||
Richard S. Spengler | — | — | 69,137 | 986,281 | ||||||||||||
Sean Burke | 100,946 | 370,098 | 58,000 | 829,720 | ||||||||||||
Paul Kalamaras | — | — | 69,137 | 1,002,961 |
Name | Plan Name | Number of Years Credited Service ($) (1) | Present Value of Accumulated Benefit ($) (2) | Payment During Last Year ($) | ||||||||||
Kevin Cummings | Defined Benefit Plan | 12.5 | 852,000 | — | ||||||||||
SERP I and SERP II | 12.5 | 23,255,000 | — | |||||||||||
Domenick A. Cama | Defined Benefit Plan | 26.0 | 1,575,000 | — | ||||||||||
SERP I and SERP II | 26.0 | 11,871,000 | — | |||||||||||
Richard S. Spengler | Defined Benefit Plan | 30.0 | 1,294,000 | — | ||||||||||
SERP I and SERP II | 30.0 | 3,679,000 | — | |||||||||||
Sean Burke | Defined Benefit Plan | 0.9 | 33,000 | — | ||||||||||
SERP I and SERP II | — | — | — | |||||||||||
Paul Kalamaras | Defined Benefit Plan | 7.3 | 361,000 | — | ||||||||||
SERP I and SERP II | 7.3 | 3,907,000 | — |
(1) |
(2) | The figures shown are determined as of the plan’s measurement date of December 31, 2021 for purposes of Investors Bancorp’s audited financial statements. For discount rate and other assumptions used for this purpose, please refer to 10-K for the year ended December 31, 2021. |
Name | Plan Name | Executive Contributions in Last Year ($) | Registrant Contributions in Last Year ($) (1) | Aggregate Earnings in Last Year ($) (2) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last Year-End ($) (3) | ||||||||||||||||||
Kevin Cummings | SERP I | — | 141,807 | 816,583 | — | 2,837,066 | ||||||||||||||||||
Domenick A. Cama | SERP I | — | 76,579 | 414,614 | — | 1,445,075 | ||||||||||||||||||
Richard S. Spengler | SERP I | — | 35,074 | 155,915 | — | 549,697 | ||||||||||||||||||
Sean Burke | SERP I | — | 34,557 | 38,495 | — | 161,614 | ||||||||||||||||||
Paul Kalamaras | SERP I | — | 34,014 | 122,632 | — | 438,781 |
(1) | The value of the non-qualified Supplemental ESOP contribution made pursuant to SERP I in calendar 2021 is based on the fair market value of Investors |
(2) | ||||||||
reflect the change in value of phantom shares issued prior to 2021, based on the fair market value of Investors Bancorp |
(3) | ||||||||
Mr. Cummings | Mr. Cama | Mr. Spengler | Mr. Kalamaras | Mr. Burke | ||||||||||||||||
Retirement | ||||||||||||||||||||
Retiree Health/Life Insurance | — | — | — | — | — | |||||||||||||||
Stock Option Vesting | — | — | — | — | — | |||||||||||||||
Restricted Stock Vesting | — | — | — | — | — | |||||||||||||||
Disability | ||||||||||||||||||||
Salary Continuation (1) | 2,959,182 | 1,909,182 | 1,174,182 | 1,084,182 | 1,159,182 | |||||||||||||||
Stock Option Vesting | 342,641 | 274,113 | 265,969 | 265,969 | 233,655 | |||||||||||||||
Restricted Stock Vesting | 1,917,808 | 1,534,241 | 1,047,516 | 1,047,516 | 878,700 | |||||||||||||||
Other benefits (2) | 24,920 | 27,382 | 10,435 | 24,842 | 22,977 | |||||||||||||||
Death | ||||||||||||||||||||
Salary Continuation (3) | 1,075,000 | 725,000 | 480,000 | 450,000 | 475,000 | |||||||||||||||
Stock Option Vesting | 342,641 | 274,113 | 265,969 | 265,969 | 233,655 | |||||||||||||||
Restricted Stock Vesting | 1,917,808 | 1,534,241 | 1,047,516 | 1,047,516 | 878,700 | |||||||||||||||
Other benefits (2) | 35,196 | 35,196 | 16,013 | 35,196 | 43,729 | |||||||||||||||
Discharge without Cause or Resignation with Good Reason (no Change in Control) | ||||||||||||||||||||
Stock Option Vesting | — | — | — | — | — | |||||||||||||||
Restricted Stock Vesting | — | — | — | — | — | |||||||||||||||
Salary and Cash Incentive (4)(5) | 12,929,465 | 7,505,440 | 3,030,300 | 3,192,747 | 2,921,251 | |||||||||||||||
Other benefits (2) | 139,049 | 139,049 | 115,938 | 139,049 | 169,344 | |||||||||||||||
Discharge without Cause or Resignation with Good Reason (Change in Control-related) | ||||||||||||||||||||
Stock Option Vesting | 342,641 | 274,113 | 265,969 | 265,969 | 233,655 | |||||||||||||||
Restricted Stock Vesting | 1,917,808 | 1,534,241 | 1,047,516 | 1,047,516 | 878,700 | |||||||||||||||
Salary and Cash Incentive (4)(5) | 12,929,465 | 7,505,440 | 3,030,300 | 3,192,747 | 2,921,251 | |||||||||||||||
Other benefits (2) | 139,049 | 139,049 | 115,938 | 139,049 | 169,344 | |||||||||||||||
Tax Indemnification Payment (6) | — | — | — | — | — |
(1) | Upon disability, the NEO is entitled to base salary for the longer of the remaining term of his employment agreement or one year. Such benefit is reduced by the amount paid under our disability plan or policy, which is not reflected in this table. |
(2) | Other benefits include the estimated cost of providing, at the Company’s sole expense, substantially identical life insurance and nontaxable medical, dental and disability insurance coverage for each named executive officer for three (3) years pursuant to each named executive officer’s employment agreement. The amounts are estimated using the Company’s current cost of such benefits and an assumed 10% annual increase in the cost of benefits. The estimated amounts also assume that the benefits will be provided in-kind. If the Company cannot provide substantially identical benefits, the amount would be a cash lump sum payment reasonably estimated to be equal to the value of such benefits. |
(3) | This amount is payable according to normal payroll practices for one year following the NEO’s date of death. |
(4) | This amount is paid in a lump sum following the NEO’s date of termination. |
(5) | As Messrs. Cummings, Cama and Kalamaras each has, or would have, attained the normal retirement age under SERP II at, or within three years following, his date of termination, the amount for Messrs. Cummings, Cama and Kalamaras includes $3,254,465, $1,850,440 and $425,246, respectively, which represents the actuarial present value of the benefits that would have accrued under SERP II for three additional years of service following the date of termination. |
(6) | This amount is generally payable in a lump sum to the NEO following the date of termination, but it may be timely paid directly to the applicable taxing authorities on behalf of the NEO. |
Name and Address of Beneficial Owner | Number of Shares Owned and Nature of Beneficial Ownership | Percent of Shares of Common Stock Outstanding (1) | ||||||
BlackRock, Inc. 55 East 52nd Street New York, NY 10055 | 35,513,721 | (2) | 14.25 | % | ||||
The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355 | 24,613,281 | (3) | 9.88 | % | ||||
Fuller & Thaler Asset Management, Inc. 411 Borel Avenue, Suite 300 San Mateo, CA 94402 | 15,840,753 | (4) | 6.36 | % | ||||
Investors Bank Employee Stock Ownership Plan Trust Trustee: TI-Trust, Inc.2900 North 23rd Street Quincy, IL 62305 | 15,346,001 | (5) | 6.16 | % | ||||
Dimensional Fund Advisors LP 6300 Bee Cave Road, Building One Austin, TX 78746 | 11,717,989 | (6) | 4.70 | % |
(1) | Based on 249,038,728 shares of Investors Bancorp common stock outstanding as of March 22, 2022. |
(2) | Based on a Schedule 13G filed with the SEC on March 11, 2022 by BlackRock, Inc. |
(3) |
(4) | Based on a Schedule 13G/A filed with the SEC on February 8, 2022 by Fuller & Thaler Asset Management, Inc. |
(5) | Based on a Schedule 13G/A filed with the SEC on February 22, 2022 by Investors Bank |
(6) |
Name | Position(s) held with Investors Bancorp Inc. and/or Investors Bank | Shares Owned Directly and Indirectly (1) | Options Exercisable within 60 days | Beneficial Ownership | Percent of Class (2) | Unvested Stock Awards Included in Beneficial Ownership | ||||||||||||||||
DIRECTORS | ||||||||||||||||||||||
Robert C. Albanese | Director | 107,419 | — | 107,419 | * | — | ||||||||||||||||
Domenick A. Cama | Director, President and Chief Operating Officer | 1,332,287 | 420,096 | 1,752,383 | * | 101,270 | ||||||||||||||||
James J. Garibaldi | Director | 66,980 | — | 66,980 | * | — | ||||||||||||||||
James H. Ward III | Director | 436,400 | — | 436,400 | * | — | ||||||||||||||||
Dennis M. Bone | Lead Independent Director | 155,674 | — | 155,674 | * | — | ||||||||||||||||
Doreen R. Byrnes | Director | 116,694 | — | 116,694 | * | — | ||||||||||||||||
William V. Cosgrove | Director | 147,880 | — | 147,880 | * | — | ||||||||||||||||
Kevin Cummings | Chairman and Chief Executive Officer | 1,731,793 | 525,120 | 2,256,913 | * | 126,588 | ||||||||||||||||
John E. Harmon, Sr. | Director | 1,100 | — | 1,100 | * | — | ||||||||||||||||
Michele N. Siekerka | Director | 172,699 | — | 172,699 | * | — | ||||||||||||||||
Paul N. Stathoulopoulos | Director | 215,430 | — | 215,430 | * | — | ||||||||||||||||
Kim Wales | Director | — | — | — | * | — | ||||||||||||||||
EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS | ||||||||||||||||||||||
Richard S. Spengler | Senior Executive Vice President and Chief Lending Officer | 632,958 | 713,333 | 1,346,291 | * | 57,143 | ||||||||||||||||
Sean Burke | Executive Vice President and Chief Financial Officer | 176,109 | 525,720 | 701,829 | * | 50,000 | ||||||||||||||||
Paul Kalamaras | Senior Executive Vice President and Chief Risk Officer | 367,953 | 713,333 | 1,081,286 | * | 69,143 | ||||||||||||||||
All directors and executive officers as a group (15 persons) (2) | 5,661,376 | 2,897,602 | 8,558,978 | 3.44 | % | 404,144 |
* | Less than 1% |
(1) | Unless otherwise indicated, each person effectively exercises sole, or shared with spouse, voting and/or dispositive power as to the shares reported. |
(2) | Based on 249,038,728 shares of Investors Bancorp |
(3) | Includes 185,372 shares of common stock allocated to the accounts of executive officers under the Investors Bank Employee Stock Ownership Plan (“ESOP”) and |
(a)(3) |
31.1 | ||||||||
INVESTORS BANCORP INC. | |||||||||||||||||
Chief Executive Officer (Principal Executive Officer) (Duly Authorized Representative) |
Date: April 5, 2022 | By: | /s/ Kevin Cummings | ||||||||||||
Kevin Cummings | ||||||||||||||
Chairman and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
Chief Operating Officer | ||||||||||||||
Executive Vice President (Principal Financial and Accounting Officer) | ||||||||||||||