

¨			For the quarterly period ended 3/31/2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

			For the transition period from to

Commission File Number: 001-31566

PROVIDENT FINANCIAL SERVICES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

42-1547151

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

239 Washington Street

Jersey City

New Jersey

07302

(Address of Principal Executive Offices)

(City)

(State)

(Zip Code)

(732) 590-9200

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Symbol(s)

Name of each exchange on which registered

Common

PFS

New York Stock Exchange

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ~~YES~~ Yes ý NO ¨

Indicate by check mark whether the Registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding twelve months (or for such shorter period that the Registrant was required to submit and post such files). ~~YES~~ Yes ý NO ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☒

Accelerated Filer

☐

~~Accelerated Filer~~

Non-Accelerated Filer

¨☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨☐ NO ý

As of ~~November 1, 2017~~May 2, 2022 there were ~~83,209,293~~83,209,012 shares issued and ~~66,773,464~~75,443,160 shares outstanding of the Registrant’s Common Stock, par value $0.01 per share, including ~~296,049~~123,321 shares held by the First Savings Bank Directors’ Deferred Fee Plan not otherwise considered outstanding under U.S. generally accepted accounting principles.

PROVIDENT FINANCIAL SERVICES, INC.

INDEX TO FORM 10-Q


Item Number		Page Number

PART I—FINANCIAL INFORMATION

1	Financial Statements:

	Consolidated Statements of Financial Condition as of March 31, 2022 (unaudited) and December 31, 2021	3

	Consolidated Statements of Income for the three months ended March 31, 2022 and 2021 (unaudited)	4

	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and 2021 (unaudited)	5

	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2022 and 2021 (unaudited)	6

	Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)	7

	Notes to Unaudited Consolidated Financial Statements	9

2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42

3	Quantitative and Qualitative Disclosures About Market Risk	49

4	Controls and Procedures	51

PART II—OTHER INFORMATION

1	Legal Proceedings	51

1A.	Risk Factors	51

2	Unregistered Sales of Equity Securities and Use of Proceeds	51

3	Defaults Upon Senior Securities	51

4	Mine Safety Disclosures	51

5	Other Information	51

6	Exhibits	51

Signatures		53

Item Number Page Number

PART I—FINANCIAL INFORMATION

1.
Financial Statements:

Consolidated Statements of Financial Condition as of September 30, 2017 (unaudited) and December 31, 2016
3

Consolidated Statements of Income for the three and nine months ended September 30, 2017 and 2016 (unaudited)
4

Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016 (unaudited)
5

Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2017 and 2016 (unaudited)
6

Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 (unaudited)
8

Notes to Unaudited Consolidated Financial Statements
10

2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
36

3.
Quantitative and Qualitative Disclosures About Market Risk
44

4.
Controls and Procedures
45

PART II—OTHER INFORMATION

1.
Legal Proceedings
46

1A.
Risk Factors
46

2.
Unregistered Sales of Equity Securities and Use of Proceeds
46

3. Defaults Upon Senior Securities
47

4.
Mine Safety Disclosures
47

5.
Other Information
47

6.
Exhibits
47

Signatures
48

PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

~~September 30, 2017~~March 31, 2022 (Unaudited) and December 31, ~~2016~~2021

(Dollars in Thousands)

September 30, 2017 December 31, 2016
ASSETS
Cash and due from banks $ 97,298
$ 92,508
Short-term investments 51,485
51,789
Total cash and cash equivalents 148,783
144,297
Securities available for sale, at fair value 1,028,305
1,040,386
Investment securities held to maturity (fair value of $490,425 at September 30, 2017 (unaudited) and $489,287 at December 31, 2016) 481,845
488,183
Federal Home Loan Bank stock 70,896
75,726
Loans 7,028,052
7,003,486
Less allowance for loan losses 60,276
61,883
Net loans 6,967,776
6,941,603
Foreclosed assets, net 5,703
7,991
Banking premises and equipment, net 78,567
84,092
Accrued interest receivable 27,398
27,082
Intangible assets 420,877
422,937
Bank-owned life insurance 188,123
188,527
Other assets 76,873
79,641
Total assets $ 9,495,146
$ 9,500,465

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand deposits $ 4,880,133
$ 4,803,426
Savings deposits 1,083,215
1,099,020
Certificates of deposit of $100,000 or more 296,172
290,295
Other time deposits 331,696
360,888
Total deposits 6,591,216
6,553,629
Mortgage escrow deposits 25,186
24,452
Borrowed funds 1,525,560
1,612,745
Other liabilities 53,012
57,858
Total liabilities 8,194,974
8,248,684
Stockholders’ Equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued —
—
Common stock, $0.01 par value, 200,000,000 shares authorized, 83,209,293 shares issued and 66,467,819 shares outstanding at September 30, 2017 and 66,082,283 outstanding at December 31, 2016 832
832
Additional paid-in capital 1,010,247
1,005,777
Retained earnings 586,575
550,768
Accumulated other comprehensive loss (708 ) (3,397 )
Treasury stock (260,910 ) (264,221 )
Unallocated common stock held by the Employee Stock Ownership Plan (35,864 ) (37,978 )
Common stock acquired by the Directors’ Deferred Fee Plan (5,343 ) (5,846 )
Deferred compensation – Directors’ Deferred Fee Plan 5,343
5,846
Total stockholders’ equity 1,300,172
1,251,781
Total liabilities and stockholders’ equity $ 9,495,146
$ 9,500,465


	March 31, 2022		December 31, 2021
ASSETS
Cash and due from banks	$	330,814	$	506,270
Short-term investments	102,332		206,193
Total cash and cash equivalents	433,146		712,463
Available for sale debt securities, at fair value	2,072,337		2,057,851
Held to maturity debt securities, net (fair value of $417,664 and $449,709 at March 31, 2022 and December 31, 2021, respectively).	421,958		436,150
Equity securities, at fair value	1,256		1,325
Federal Home Loan Bank stock	23,973		34,290
Loans	9,662,882		9,581,624
Less allowance for credit losses	76,275		80,740
Net loans	9,586,607		9,500,884
Foreclosed assets, net	8,578		8,731
Banking premises and equipment, net	82,987		80,559
Accrued interest receivable	41,033		41,990
Intangible assets	463,325		464,183
Bank-owned life insurance	237,808		236,630
Other assets	244,006		206,146
Total assets	$	13,617,014	$	13,781,202

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand deposits	$	9,183,808	$	9,080,956
Savings deposits	1,490,624		1,460,541
Certificates of deposit of $100,000 or more	391,321		368,277
Other time deposits	300,334		324,238
Total deposits	11,366,087		11,234,012
Mortgage escrow deposits	40,184		34,440
Borrowed funds	399,606		626,774
Subordinated debentures	10,336		10,283
Other liabilities	179,670		178,597
Total liabilities	11,995,883		12,084,106
Stockholders’ Equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued	—		—
Common stock, $0.01 par value, 200,000,000 shares authorized, 83,209,012 shares issued and 75,881,889 shares outstanding at March 31, 2022, and 83,209,012 shares issued and 76,969,999 shares outstanding at December 31, 2021, respectively.	832		832
Additional paid-in capital	972,552		969,815
Retained earnings	839,807		814,533
Accumulated other comprehensive (loss) income	(67,946)		6,863
Treasury stock	(109,581)		(79,603)
Unallocated common stock held by the Employee Stock Ownership Plan	(14,533)		(15,344)
Common stock acquired by the Directors' Deferred Fee Plan ("DDFP")	(3,844)		(3,984)
Deferred Compensation - Directors' Deferred Fee Plan	3,844		3,984
Total stockholders’ equity	1,621,131		1,697,096
Total liabilities and stockholders’ equity	$	13,617,014	$	13,781,202

See accompanying notes to unaudited consolidated financial statements.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021 (Unaudited)

(Dollars in Thousands, except per share data)


	Three months ended March 31,
	2022		2021
Interest income:
Real estate secured loans	$	63,835	$	62,016
Commercial loans	22,821		26,143
Consumer loans	3,139		3,492
Available for sale debt securities, equity securities and Federal Home Loan Bank stock	7,951		5,612
Held to maturity debt securities	2,596		2,784
Deposits, Federal funds sold and other short-term investments	647		484
Total interest income	100,989		100,531
Interest expense:
Deposits	5,187		7,417
Borrowed funds	1,168		2,809
Subordinated debt	108		305
Total interest expense	6,463		10,531
Net interest income	94,526		90,000
Provision benefit for credit losses	(6,405)		(15,001)
Net interest income after provision for credit losses	100,931		105,001
Non-interest income:
Fees	6,889		7,192
Wealth management income	7,466		7,134
Insurance agency income	3,420		2,727
Bank-owned life insurance	1,179		2,567
Net gains on securities transactions	16		197
Other income	1,178		1,820
Total non-interest income	20,148		21,637
Non-interest expense:
Compensation and employee benefits	37,067		35,312
Net occupancy expense	9,330		9,301
Data processing expense	5,344		4,393
FDIC insurance	1,205		1,770
Amortization of intangibles	859		972
Advertising and promotion expense	1,104		877
Credit loss benefit for off-balance sheet credit exposures	(2,390)		(875)
Other operating expenses	9,367		10,103
Total non-interest expense	61,886		61,853
Income before income tax expense	59,193		64,785
Income tax expense	15,231		16,226
Net income	$	43,962	$	48,559
Basic earnings per share	$	0.58	$	0.63
Weighted average basic shares outstanding	75,817,971		76,516,543
Diluted earnings per share	$	0.58	$	0.63
Weighted average diluted shares outstanding	75,914,079		76,580,862

Three months ended September 30, Nine months ended September 30,
2017 2016 2017 2016
Interest income:
Real estate secured loans $ 47,692
$ 45,262
$ 140,712
$ 134,411
Commercial loans 18,964
16,093
53,884
46,419
Consumer loans 5,083
5,627
15,293
16,657
Securities available for sale and Federal Home Loan Bank Stock 6,540
5,576
19,651
17,074
Investment securities held to maturity 3,272
3,349
9,812
10,011
Deposits, Federal funds sold and other short-term investments 343
138
898
252
Total interest income 81,894
76,045
240,250
224,824
Interest expense:
Deposits 4,988
4,441
14,093
12,397
Borrowed funds 6,694
6,633
19,855
20,477
Total interest expense 11,682
11,074
33,948
32,874
Net interest income 70,212
64,971
206,302
191,950
Provision for loan losses 500
1,000
3,700
4,200
Net interest income after provision for loan losses 69,712
63,971
202,602
187,750
Non-interest income:
Fees 7,680
6,137
20,940
19,309
Wealth management income 4,592
4,262
13,314
13,084
Bank-owned life insurance 1,353
1,382
5,291
4,083
Net gain (loss) on securities transactions 36
(43 ) 47
54
Other income 1,451
2,328
2,804
4,378
Total non-interest income 15,112
14,066
42,396
40,908
Non-interest expense:
Compensation and employee benefits 27,328
26,725
81,086
78,496
Net occupancy expense 6,105
6,227
19,255
18,729
Data processing expense 3,314
3,328
10,302
9,845
FDIC insurance 967
1,117
3,065
3,732
Amortization of intangibles 632
767
2,079
2,628
Advertising and promotion expense 907
787
2,709
2,567
Other operating expenses 7,027
6,899
21,248
20,628
Total non-interest expense 46,280
45,850
139,744
136,625
Income before income tax expense 38,544
32,187
105,254
92,033
Income tax expense 11,969
9,281
30,788
26,798
Net income $ 26,575
$ 22,906
$ 74,466
$ 65,235
Basic earnings per share $ 0.41
$ 0.36
$ 1.16
$ 1.03
Weighted average basic shares outstanding 64,454,684
63,728,393
64,327,640
63,545,065
Diluted earnings per share $ 0.41
$ 0.36
$ 1.15
$ 1.02
Weighted average diluted shares outstanding 64,645,278
63,934,886
64,519,710
63,727,723

See accompanying notes to unaudited consolidated financial statements.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

Three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021 (Unaudited)

(Dollars in Thousands)


	Three months ended March 31,
	2022		2021
Net income	$	43,962	$	48,559
Other comprehensive (loss) income, net of tax:
Unrealized gains and losses on available for sale debt securities:
Net unrealized losses arising during the period	(84,971)		(9,019)
Reclassification adjustment for gains included in net income	—		(171)
Total	(84,971)		(9,190)
Unrealized gains on derivatives	10,438		4,621
Amortization related to post-retirement obligations	(276)		(109)
Total other comprehensive loss	(74,809)		(4,678)
Total comprehensive (loss) income	$	(30,847)	$	43,881

Three months ended September 30, Nine months ended September 30,
2017 2016 2017 2016
Net income $ 26,575
$ 22,906
$ 74,466
$ 65,235
Other comprehensive income, net of tax:
Unrealized gains and losses on securities available for sale:
Net unrealized gains (losses) arising during the period 479
(1,541 ) 2,478
8,533
Reclassification adjustment for gains included in net income —
26
—
(32 )
Total 479
(1,515 ) 2,478
8,501
Unrealized gains (losses) on derivatives 54
230
106
(361 )
Amortization related to post-retirement obligations 36
141
105
380
Total other comprehensive income (loss) 569
(1,144 ) 2,689
8,520
Total comprehensive income $ 27,144
$ 21,762
$ 77,155
$ 73,755

See accompanying notes to unaudited consolidated financial statements.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

~~Nine~~For the three months ended ~~September 30, 2017 and 2016~~March 31, 2021 (Unaudited)

(Dollars in Thousands)

COMMON
STOCK

ADDITIONAL
PAID-IN
CAPITAL

RETAINED
EARNINGS

ACCUMULATED
OTHER
COMPREHENSIVE
INCOME (LOSS)

TREASURY
STOCK

UNALLOCATED
ESOP
SHARES

COMMON
STOCK
ACQUIRED
BY DDFP

DEFERRED
COMPENSATION
DDFP

TOTAL
STOCKHOLDERS’
EQUITY
Balance at December 31, 2015 $ 832
$ 1,000,810
$ 507,713
$ (2,546 ) $ (269,014 ) $ (41,730 ) $ (6,517 ) $ 6,517
$ 1,196,065
Net income —
—
65,235
—
—
—
—
—
65,235
Other comprehensive income, net of tax —
—
—
8,520
—
—
—
—
8,520
Cash dividends declared —
—
(35,141 ) —
—
—
—
—
(35,141 )
Effect of adopting Accounting Standards Update ("ASU") No. 2016-09 —
(622 ) 622
—
—
—
—
—
—
Distributions from DDFP —
91
—
—
—
—
503
(503 ) 91
Purchases of treasury stock —
—
—
—
(1,557 ) —
—
—
(1,557 )
Purchase of employee restricted shares to fund statutory tax withholding —
—
—
—
(1,161 ) —
—
—
(1,161 )
Shares issued dividend reinvestment plan —
180
—
—
996
—
—
—
1,176
Stock option exercises —
(60 ) —
—
5,658
—
—
—
5,598
Allocation of ESOP shares —
325
—
—
—
2,016
—
—
2,341
Allocation of SAP shares —
2,982
—
—
—
—
—
—
2,982
Allocation of stock options —
131
—
—
—
—
—
—
131
Balance at September 30, 2016 $ 832
$ 1,003,837
$ 538,429
$ 5,974
$ (265,078 ) $ (39,714 ) $ (6,014 ) $ 6,014
$ 1,244,280


For the three months ended March 31, 2021	COMMON STOCK		ADDITIONAL PAID-IN CAPITAL		RETAINED EARNINGS		ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)		TREASURYSTOCK		UNALLOCATED ESOP SHARES		COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS		DEFERRED COMPENSATION PLANS		TOTAL STOCKHOLDERS’ EQUITY
Balance at December 31, 2020	$	832	$	962,453	$	718,090	$	17,655	$	(59,018)	$	(20,215)	$	(4,549)	$	4,549	$	1,619,797
Net income	—		—		48,559		—		—		—		—		—		48,559
Other comprehensive loss, net of tax	—		—		—		(4,678)		—		—		—		—		(4,678)
Cash dividends paid	—		—		(18,075)		—		—		—		—		—		(18,075)


Distributions from DDFP	—		28		—		—		—		—		168		(168)		28
Purchases of treasury stock	—		—		—		—		(48)		—		—		—		(48)
Purchase of employee restricted shares to fund statutory tax withholding	—		—		—		—		(915)		—		—		—		(915)
Shares issued dividend reinvestment plan	—		—		—		—		—		—		—		—		—
Stock option exercises	—		(82)		—		—		720		—		—		—		638
Allocation of ESOP shares	—		145		—		—		—		768		—		—		913
Allocation of Stock Award Plan ("SAP") shares	—		959		—		—		—		—		—		—		959

Allocation of stock options	—		53		—		—		—		—		—		—		53
Balance at March 31, 2021	$	832	$	963,556	$	748,574	$	12,977	$	(59,261)	$	(19,447)	$	(4,381)	$	4,381	$	1,647,231

See accompanying notes to unaudited consolidated financial statements.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

~~Nine~~For the three months ended ~~September 30, 2017 and 2016~~March 31, 2022 (Unaudited) ~~(Continued)~~

(Dollars in Thousands)


For the three months ended March 31, 2022	COMMON STOCK		ADDITIONAL PAID-IN CAPITAL		RETAINED EARNINGS		ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)		TREASURY STOCK		UNALLOCATED ESOP SHARES		COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS		DEFERRED COMPENSATION PLANS		TOTAL STOCKHOLDERS’ EQUITY
Balance at December 31, 2021	832		969,815		814,533		6,863		(79,603)		(15,344)		(3,984)		3,984		1,697,096
Net income	—		—		43,962		—		—		—		—		—		43,962
Other comprehensive loss, net of tax	—		—		—		(74,809)		—		—		—		—		(74,809)
Cash dividends paid	—		—		(18,688)		—		—		—		—		—		(18,688)


Distributions from DDFP	—		45		—		—		—		—		140		(140)		45
Purchases of treasury stock	—		—		—		—		(29,025)		—		—		—		(29,025)
Purchase of employee restricted shares to fund statutory tax withholding	—		—		—		—		(953)		—		—		—		(953)
Shares issued dividend reinvestment plan	—		—		—		—		—		—		—		—		—
Stock option exercises	—		—		—		—		—		—		—		—		—
Allocation of ESOP shares	—		332		—		—		—		811		—		—		1,143
Allocation of SAP shares	—		2,311		—		—		—		—		—		—		2,311

Allocation of stock options	—		49		—		—		—		—		—		—		49
Balance at March 31, 2022	$	832	$	972,552	$	839,807	$	(67,946)	$	(109,581)	$	(14,533)	$	(3,844)	$	3,844	$	1,621,131

COMMON
STOCK

ADDITIONAL
PAID-IN
CAPITAL

RETAINED
EARNINGS

ACCUMULATED
OTHER
COMPREHENSIVE
(LOSS) INCOME

TREASURY
STOCK

UNALLOCATED
ESOP
SHARES

COMMON
STOCK
ACQUIRED
BY DDFP

DEFERRED
COMPENSATION
DDFP

TOTAL
STOCKHOLDERS’
EQUITY
Balance at December 31, 2016 $ 832
$ 1,005,777
$ 550,768
$ (3,397 ) $ (264,221 ) $ (37,978 ) $ (5,846 ) $ 5,846
$ 1,251,781
Net income —
—
74,466
—
—
—
—
—
74,466
Other comprehensive income, net of tax —
—
—
2,689
—
—
—
—
2,689
Cash dividends declared —
—
(38,659 ) —
—
—
—
—
(38,659 )
Distributions from DDFP —
172
—
—
—
—
503
(503 ) 172
Purchases of treasury stock —
—
—
—
(443 ) —
—
—
(443 )
Purchase of employee restricted shares to fund statutory tax withholding —

—
—
(726 ) —
—
—
(726 )
Shares issued dividend reinvestment plan —
417
—
—
922
—
—
—
1,339
Stock option exercises —
(1,024 ) —
—
3,558
—
—
—
2,534
Allocation of ESOP shares —
1,053
—
—
—
2,114
—
—
3,167
Allocation of SAP shares —
3,702
—
—
—
—
—
—
3,702
Allocation of stock options —
150
—
—
—
—
—
—
150
Balance at September 30, 2017 $ 832
$ 1,010,247
$ 586,575
$ (708 ) $ (260,910 ) $ (35,864 ) $ (5,343 ) $ 5,343
�� $ 1,300,172

See accompanying notes to unaudited consolidated financial statements.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

~~Nine~~Three months ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021 (Unaudited)

(Dollars in Thousands)


	Three months ended March 31,
	2022		2021
Cash flows from operating activities:
Net income	$	43,962	$	48,559
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	3,247		3,264
Provision benefit for credit losses on loans and securities	(6,405)		(15,001)
Credit loss benefit for off-balance sheet credit exposure	(2,390)		(875)
Deferred tax expense	10,625		6,271
Amortization of operating lease right-of-use assets	2,807		2,812

Income on Bank-owned life insurance	(1,179)		(2,567)
Net amortization of premiums and discounts on securities	3,844		3,110
Accretion of net deferred loan fees	(2,438)		(5,487)
Amortization of premiums on purchased loans, net	71		190
Net increase in loans originated for sale	—		(14,492)
Proceeds from sales of loans originated for sale	—		15,260
Proceeds from sales and paydowns of foreclosed assets	200		569
ESOP expense	1,143		913
Allocation of stock award shares	2,311		959
Allocation of stock options	49		53

Net gain on sale of loans	—		(768)
Net gain on securities transactions	(16)		(197)
Net gain on sale of premises and equipment	(8)		(15)
Net gain on sale of foreclosed assets	—		(170)
Decrease (increase) in accrued interest receivable	957		(2,567)
(Increase) decrease in other assets	(6,718)		41,160
Increase (decrease) in other liabilities	1,073		(44,565)
Net cash provided by operating activities	51,135		36,416
Cash flows from investing activities:
Proceeds from maturities, calls and paydowns of held to maturity debt securities	16,694		10,236
Purchases of held to maturity debt securities	(2,941)		(7,541)
Proceeds from sales of securities	—		9,442
Proceeds from maturities and paydowns of available for sale debt securities	84,128		90,807
Purchases of available for sale debt securities	(218,082)		(226,417)
Proceeds from redemption of Federal Home Loan Bank stock	10,317		12,147
Purchases of Federal Home Loan Bank stock	—		(1,656)


Purchases of loans	2,610		—
Net (increase) decrease in loans	(76,328)		24,217

Proceeds from sales of premises and equipment	8		15
Purchases of premises and equipment	(8,843)		(1,846)
Net cash used in investing activities	(192,437)		(90,596)
Cash flows from financing activities:
Net increase in deposits	132,075		459,684
Increase in mortgage escrow deposits	5,744		3,474
Cash dividends paid to stockholders	(18,688)		(18,075)

Purchase of treasury stock	$	(29,025)	$	(48)

Nine months ended September 30,
2017 2016
Cash flows from operating activities:
Net income $ 74,466
$ 65,235
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles 8,864
9,711
Provision for loan losses 3,700
4,200
Deferred tax expense 640
323
Income on Bank-owned life insurance (5,291 ) (4,083 )
Net amortization of premiums and discounts on securities 7,504
7,908
Accretion of net deferred loan fees (3,673 ) (2,500 )
Amortization of premiums on purchased loans, net 800
936
Net increase in loans originated for sale (18,386 ) (32,734 )
Proceeds from sales of loans originated for sale 19,149
34,709
Proceeds from sales and paydowns of foreclosed assets 4,883
3,717
ESOP expense 3,167
2,341
Allocation of stock award shares 3,702
2,982
Allocation of stock options 150
131
Net gain on sale of loans (763 ) (1,975 )
Net gain on securities transactions (47 ) (54 )
Net gain on sale of premises and equipment (8 ) (14 )
Net gain on sale of foreclosed assets (768 ) (652 )
(Increase) decrease in accrued interest receivable (316 ) 461
Increase in other assets (2,407 ) (17,108 )
(Decrease) increase in other liabilities (4,846 ) 10,942
Net cash provided by operating activities 90,520
84,476
Cash flows from investing activities:
Proceeds from maturities, calls and paydowns of investment securities held to maturity 42,382
49,245
Purchases of investment securities held to maturity (38,074 ) (54,059 )
Proceeds from sales of securities —
3,401
Proceeds from maturities, calls and paydowns of securities available for sale 160,436
146,958
Purchases of securities available for sale (149,647 ) (209,666 )
Proceeds from redemption of Federal Home Loan Bank stock 96,040
46,757
Purchases of Federal Home Loan Bank stock (91,210 ) (39,595 )
Death benefit proceeds from bank-owned life insurance 4,428
—
Purchases of loans —
(28,590 )
Net increase in loans (23,888 ) (325,838 )
Proceeds from sales of premises and equipment 8
14
Purchases of premises and equipment (1,690 ) (3,757 )
Net cash used in investing activities (1,215 ) (415,130 )
Cash flows from financing activities:
Net increase in deposits 37,587
603,511
Increase in mortgage escrow deposits 734
940
Cash dividends paid to stockholders (38,659 ) (35,141 )
Shares issued through the dividend reinvestment plan 1,339
1,176


								Three months ended March 31,
	Nine months ended September 30,							2022		2021
	2017			2016
Purchases of treasury stock	(443		)	(1,557		)
Purchase of employee restricted shares to fund statutory tax withholding	(726		)	(1,161		)	Purchase of employee restricted shares to fund statutory tax withholding	(953)		(915)
Stock options exercised	2,534			5,598			Stock options exercised	—		638
Proceeds from long-term borrowings	248,220			291,653			Proceeds from long-term borrowings	—		400,000
Payments on long-term borrowings	(345,387		)	(395,405		)	Payments on long-term borrowings	(229,111)		(619,265)
Net increase (decrease) in short-term borrowings	9,982			(81,512		)	Net increase (decrease) in short-term borrowings	1,943		(16,096)
Net cash (used in) provided by financing activities	(84,819		)	388,102			Net cash (used in) provided by financing activities	(138,015)		209,397
Net increase in cash and cash equivalents	4,486			57,448
Net (decrease) increase in cash and cash equivalents							Net (decrease) increase in cash and cash equivalents	(279,317)		155,217
Cash and cash equivalents at beginning of period	144,297			102,226			Cash and cash equivalents at beginning of period	685,163		418,083
Restricted cash at beginning of period							Restricted cash at beginning of period	27,300		114,270
Total cash, cash equivalents and restricted cash at beginning of period							Total cash, cash equivalents and restricted cash at beginning of period	712,463		532,353
Cash and cash equivalents at end of period	$	148,783		$	159,674		Cash and cash equivalents at end of period	428,326		644,940
Restricted cash at end of period							Restricted cash at end of period	4,820		42,630
Total cash, cash equivalents and restricted cash at end of period							Total cash, cash equivalents and restricted cash at end of period	$	433,146	$	687,570
Cash paid during the period for:							Cash paid during the period for:
Interest on deposits and borrowings	$	34,127		$	33,088		Interest on deposits and borrowings	$	7,084	$	10,399
Income taxes	$	27,411		$	25,546		Income taxes	$	560	$	270
Non-cash investing activities:							Non-cash investing activities:

Transfer of loans receivable to foreclosed assets	$	2,195		$	3,081		Transfer of loans receivable to foreclosed assets	$	47	$	434

See accompanying notes to unaudited consolidated financial statements.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

A. Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements include the accounts of Provident Financial Services, Inc. and its wholly owned subsidiary, Provident Bank (the “Bank,” together with Provident Financial Services, Inc., the “Company”).

In preparing the interim unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and the consolidated statements of income for the periods presented. Actual results could differ from these estimates. The allowance for ~~loan~~credit losses ~~the valuation of securities available for sale~~ and the valuation of deferred tax assets are ~~material~~ estimates that are particularly susceptible to ~~near-term~~ change.

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2022 are not necessarily indicative of the results of operations that may be expected for all of ~~2017.~~2022.

Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. ~~Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.~~

These unaudited consolidated financial statements should be read in conjunction with the December 31, ~~2016~~2021 Annual Report to Stockholders on Form 10-K.

B. Earnings Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021 (dollars in thousands, except per share amounts):

Three months ended September 30,
2017 2016

Net
Income

Weighted
Average
Common
Shares
Outstanding

Per
Share
Amount

Net
Income

Weighted
Average
Common
Shares
Outstanding

Per
Share
Amount

Net income $ 26,575
$ 22,906

Basic earnings per share:
Income available to common stockholders $ 26,575
64,454,684
$ 0.41
$ 22,906
63,728,393
$ 0.36

Dilutive shares 190,594
206,493

Diluted earnings per share:
Income available to common stockholders $ 26,575
64,645,278
$ 0.41
$ 22,906
63,934,886
$ 0.36


	Nine months ended September 30,											Three months ended March 31,
	2017					2016						2022					2021
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount			Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	74,466				$	65,235				Net income	$	43,962				$	48,559
Basic earnings per share:											Basic earnings per share:
Income available to common stockholders	$	74,466	64,327,640	$	1.16	$	65,235	63,545,065	$	1.03	Income available to common stockholders	$	43,962	75,817,971	$	0.58	$	48,559	76,516,543	$	0.63
Dilutive shares			192,070					182,658			Dilutive shares			96,108					64,319
Diluted earnings per share:											Diluted earnings per share:
Income available to common stockholders	$	74,466	64,519,710	$	1.15	$	65,235	63,727,723	$	1.02	Income available to common stockholders	$	43,962	75,914,079	$	0.58	$	48,559	76,580,862	$	0.63

Anti-dilutive stock options and awards at ~~September 30, 2017~~March 31, 2022 and ~~2016,~~2021, totaling ~~405,958~~971,452 shares and ~~528,205~~1.2 million shares, respectively, were excluded from the earnings per share calculations.

C. Loans Receivable and Allowance for Credit Losses

The impact of utilizing the current expected credit loss ("CECL") methodology approach to calculate the allowance for credit losses on loans is significantly influenced by the composition, characteristics and quality of the Company’s loan portfolio, as well as the prevailing economic conditions and forecast utilized. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. For the three months ended March 31, 2022, the improved economic outlook and the resulting lower allowance requirements led to reductions to the provisions for credit losses and off-balance sheet credit exposures. See Note 3 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans.

D. Goodwill

Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions. In accordance with GAAP, goodwill with an indefinite useful life is not amortized, but is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates. Goodwill is analyzed for impairment once a year. As permitted by GAAP, the Company prepares a qualitative assessment in determining whether goodwill may be impaired. The factors considered in the assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, among others. The Company completed its annual goodwill impairment test as of July 1, 2021. As of March 31, 2022, it is not more likely than not that the fair value of Provident Financial Services, Inc., the reporting unit, is below its carrying amount and therefore a test for impairment between annual tests is not required at this time.

Note 2. Investment Securities

At ~~September 30, 2017,~~March 31, 2022, the Company had ~~$1.03~~$2.07 billion and ~~$481.8~~$422.0 million in available for sale debt securities and held to maturity ~~investment~~debt securities, respectively. Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, regulatory actions, changes in the business environment or any changes in the competitive marketplace could have an adverse effect on the Company’s investment ~~portfolio which could result in other-than-temporary impairment ("OTTI") in future periods.~~portfolio. The total number of available for sale and held to maturity ~~and available for sale~~debt securities in an unrealized loss position ~~as of September 30, 2017~~at March 31, 2022 totaled ~~253,~~489, compared with ~~419~~166 at December 31, ~~2016.~~ 2021. The increase in the number of securities in an unrealized loss position at March 31, 2022 was due to higher current market interest rates compared to rates at December 31, 2021.

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types:

•Agency obligations;

•Mortgage-backed securities;

•State and municipal obligations; and

•Corporate obligations.

All ~~securities with unrealized losses at September 30, 2017 were analyzed for other-than-temporary impairment. Based upon this analysis,~~of the agency obligations held by the Company ~~believes that as~~are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of ~~September 30, 2017, such securities with unrealized losses do not represent impairments that are other-than-temporary.~~no credit losses. The majority of the state and municipal, and corporate obligations carry no lower than A ratings from the rating agencies at March 31, 2022 and the Company had one security rated BBB by Moody’s Investors Service.

~~Securities~~ Available for Sale Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for ~~securities~~ available for sale debt securities at ~~September 30, 2017~~ ~~and~~ ~~December~~March 31, ~~2016~~ ~~(in thousands):~~

September 30, 2017

Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses Fair
value
U.S. Treasury obligations $ 5,995
—
(1 ) 5,994
Agency obligations
28,031

15

(11 ) 28,035
Mortgage-backed securities
965,863

7,477

(4,928 ) 968,412
State and municipal obligations
3,695

112

—
3,807
Corporate obligations 21,049
420
(10 ) 21,459
Equity securities
397

201

—
598

$ 1,025,030

8,225

(4,950 ) 1,028,305

December 31, 2016
Amortized
cost Gross
unrealized
gains Gross
unrealized
losses Fair
value
U.S. Treasury obligations $ 7,995
13
—
8,008
Agency obligations 57,123
90
(25 ) 57,188
Mortgage-backed securities 952,992
7,249
(8,380 ) 951,861
State and municipal obligations 3,727
19
(3 ) 3,743
Corporate obligations 19,013
35
(11 ) 19,037
Equity securities 397
152
—
549
$ 1,041,247
7,558
(8,419 ) 1,040,386

~~The amortized cost and fair value of securities available for sale at~~ ~~September 30, 2017, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.~~

September 30, 2017

Amortized
cost

Fair
value
Due in one year or less $ 35,452
35,445
Due after one year through five years 2,423
2,471
Due after five years through ten years 20,895
21,379
Due after ten years —
—
$ 58,770
59,295

Mortgage-backed securities totaling $965.9 million at amortized cost and $968.4 million at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments. Also excluded from the table above are equity securities of $397,000 at amortized cost and $598,000 at fair value.

For the three and nine months ended September 30, 2017, no securities were sold or called from the securities available for sale portfolio. For the three months ended September 30, 2016, proceeds from sales on securities available for sale totaled $1.2 million resulting in no gross gains and $45,000 of gross losses. Proceeds from the sale of securities available for sale, for the nine months ended September 30, 2016, totaled $3.4 million, resulting in gross gains of $95,000 and gross losses of $45,000. There were no calls of available for sale securities for the three and nine months ended September 30, 2016.

~~The Company did not incur an OTTI charge on securities in the available for sale portfolio for the three and nine months ended~~ ~~September 30, 2017~~ ~~and~~ ~~2016~~.

~~The following tables present the fair value and gross unrealized losses for securities available for sale with temporary impairment at~~ ~~September 30, 2017~~2022 and December 31, ~~2016~~2021 (in thousands):


	March 31, 2022
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

U.S. Treasury obligations	$	274,876	—	(14,711)	260,165

Mortgage-backed securities	1,767,392		1,132	(98,060)	1,670,464
Asset-backed securities	43,895		1,139	(98)	44,936
State and municipal obligations	68,453		31	(4,638)	63,846
Corporate obligations	34,088		239	(1,401)	32,926

	$	2,188,704	2,541	(118,908)	2,072,337

September 30, 2017 Unrealized Losses

Less than 12 months 12 months or longer Total

Fair
value

Gross
unrealized
losses

Fair
value

Gross
unrealized
losses

Fair
value

Gross
unrealized
losses
U.S. Treasury obligations $ 5,994
(1 ) —
—
5,994
(1 )
Agency obligations
16,008
(11 ) —
—
16,008
(11 )
Mortgage-backed securities
424,627
(3,956 ) 50,881
(972 ) 475,508
(4,928 )
Corporate obligations —
—
991
(10 ) 991
(10 )

$ 446,629
(3,968 ) 51,872
(982 ) 498,501
(4,950 )

December 31, 2016 Unrealized Losses

Less than 12 months 12 months or longer Total

Fair
value

Gross
unrealized
losses

Fair
value

Gross
unrealized
losses

Fair
value

Gross
unrealized
losses
Agency obligations $ 14,000
(25 ) —
—
14,000
(25 )
Mortgage-backed securities 553,629
(8,377 ) 65
(3 ) 553,694
(8,380 )
State and municipal obligations 661
(3 ) —
—
661
(3 )
Corporate obligations —
—
990
(11 ) 990
(11 )

$ 568,290
(8,405 ) 1,055
(14 ) 569,345
(8,419 )

The temporary loss position associated with securities available for sale was the result of changes in market interest rates relative to the coupon of the individual security and changes in credit spreads. The Company does not have the intent to sell securities in a temporary loss position at ~~September 30, 2017, nor is it more likely than not that the Company will be required to sell the securities before their prices recover.~~

~~The number of available for sale securities in an unrealized loss position at~~ ~~September 30, 2017~~ ~~totaled~~ 82~~, compared with~~ 87 ~~at December 31, 2016. At~~ ~~September 30, 2017, there were two private label mortgage-backed securities in an unrealized loss position,~~

~~with an amortized cost of $50,000 and an unrealized loss of~~ ~~$2,000. Neither of these private label mortgage-backed securities were below investment grade at September 30, 2017.~~

The Company estimates the loss projections for each security by stressing the individual loans collateralizing the security and applying a range of expected default rates, loss severities, and prepayment speeds in conjunction with the underlying credit enhancement for each security. Based on specific assumptions about collateral and vintage, a range of possible cash flows was identified to determine whether OTTI existed during the nine months ended ~~September 30, 2017. The Company believes that~~ no ~~OTTI of the securities available for sale portfolio existed for the three and nine months ended September 30, 2017.~~

~~Investment Securities Held to Maturity~~

~~The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for investment securities held to maturity at~~ ~~September 30, 2017~~ ~~and~~ ~~December 31, 2016~~ ~~(in thousands):~~

September 30, 2017

Amortized
cost

Gross
unrealized
gains

Gross
unrealized
losses

Fair
value
Agency obligations
$ 4,307
—
(55 ) 4,252
Mortgage-backed securities
475
17
—
492
State and municipal obligations
467,113
10,407
(1,761 ) 475,759
Corporate obligations
9,950
6
(34 ) 9,922

$ 481,845
10,430
(1,850 ) 490,425

December 31, 2016

Amortized
cost

Gross
unrealized
gains

Gross
unrealized
losses

Fair
value
Agency obligations $ 4,306
2
(83 ) 4,225
Mortgage-backed securities 893
31
—
924
State and municipal obligations 473,653
6,635
(5,436 ) 474,852
Corporate obligations 9,331
7
(52 ) 9,286
$ 488,183
6,675
(5,571 ) 489,287

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair values may fluctuate during the investment period. There were no sales of securities from the held to maturity portfolio for the three and nine months ended September 30, 2017 and 2016. For the three and nine months ended September 30, 2017, proceeds from calls on securities in the held to maturity portfolio totaled $8.1 million and $28.7 million, respectively, with gross gains totaling $39,000 and $50,000, respectively and gross losses of $3,000 in both the three and nine month periods. For the three and nine months ended September 30, 2016, proceeds from calls of securities in the held to maturity portfolio totaled $20.3 million and $35.2 million, respectively, with gross gains totaling $2,000 and $4,000, respectively and no gross losses recognized in either period.


	December 31, 2021
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

U.S. Treasury obligations	$	196,897	298	(866)	196,329

Mortgage-backed securities	1,711,312		14,082	(16,563)	1,708,831
Asset-backed securities	45,115		1,687	(5)	46,797
State and municipal obligations	68,702		1,127	(122)	69,707
Corporate obligations	36,109		425	(347)	36,187

	$	2,058,135	17,619	(17,903)	2,057,851

The amortized cost and fair value of ~~investment~~available for sale debt securities ~~in the held to maturity portfolio~~ at ~~September 30, 2017~~March 31, 2022, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	March 31, 2022
	Amortized cost		Fair value
Due in one year or less	$	997	1,005
Due after one year through five years	137,234		130,466
Due after five years through ten years	174,136		164,946
Due after ten years	65,050		60,520
	$	377,417	356,937

September 30, 2017

Amortized
cost

Fair
value
Due in one year or less
$ 14,723
14,755
Due after one year through five years
65,170
66,276
Due after five years through ten years
254,191
259,908
Due after ten years
147,286
148,994

$ 481,370
489,933

~~Mortgage-backed securities~~Investments which pay principal on a periodic basis totaling ~~$475,000~~$1.81 billion at amortized cost and ~~$492,000~~$1.72 billion at fair value are excluded from the table above, as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

For the three months ended March 31, 2022, no securities were sold or called from the available for sale debt securities portfolio. For the three months ended March 31, 2021, proceeds from calls on securities in the available for sale debt securities portfolio totaled $9.4 million, with gains of $230,000 and no loss recognized.

The following tables present the fair ~~value~~values and gross unrealized losses for ~~investment securities held to maturity with temporary impairment at~~ ~~September 30, 2017~~ ~~and~~ ~~December 31, 2016~~ ~~(in thousands):~~

September 30, 2017 Unrealized Losses
Less than 12 months 12 months or longer Total

Fair
value

Gross
unrealized
losses

Fair
value

Gross
unrealized
losses

Fair
value

Gross
unrealized
losses
Agency obligations
$ 3,853
(55 ) —
—
3,853
(55 )
State and municipal obligations
62,881
(938 ) 22,251
(823 ) 85,132
(1,761 )
Corporate obligations
6,646
(34 ) —
—
6,646
(34 )

$ 73,380
(1,027 ) 22,251
(823 ) 95,631
(1,850 )

December 31, 2016 Unrealized Losses
Less than 12 months 12 months or longer Total
Fair
value Gross
unrealized
losses Fair
value Gross
unrealized
losses Fair
value Gross
unrealized
losses
Agency obligations $ 3,525
(83 ) —
—
3,525
(83 )
State and municipal obligations 172,152
(5,132 ) 6,617
(304 ) 178,769
(5,436 )
Corporate obligations 4,697
(52 ) —
—
4,697
(52 )
$ 180,374
(5,267 ) 6,617
(304 ) 186,991
(5,571 )

~~Based upon the review of the held to maturity securities portfolio, the Company believes that as of~~ ~~September 30, 2017, securities with unrealized loss positions shown above do not represent impairments that are other-than-temporary. The review of the portfolio~~available for OTTI considers the percentage and length of time the fair value of an investment is below book value, as well as general market conditions, changes in interest rates, credit risks, whether the Company has the intent to sell the securities and whether it is more likely than not that the Company would be required to sell the securities before their prices recover.

~~The number of held to maturity~~sale debt securities in an unrealized loss position at ~~September 30, 2017~~March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses

U.S. Treasury obligations	$	260,165	(14,711)	—	—	260,165	(14,711)
Mortgage-backed securities	1,352,508		(84,395)	155,913	(13,665)	1,508,422	(98,060)
Asset-backed securities	1,810		(98)	—	—	1,810	(98)
State and municipal obligations	60,024		(4,638)	—	—	60,024	(4,638)
Corporate obligations	14,270		(730)	6,124	(671)	20,394	(1,401)
	$	1,688,777	(104,572)	162,037	(14,336)	1,850,815	(118,908)


	December 31, 2021
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
U.S. Treasury obligations	$	98,621	(866)	—	—	98,621	(866)

Mortgage-backed securities	1,147,403		(15,176)	33,850	(1,387)	1,181,253	(16,563)
Asset-backed securities	1,930		(5)	—	—	1,930	(5)
State and municipal obligations	10,732		(122)	—	—	10,732	(122)
Corporate obligations	18,474		(347)	—	—	18,474	(347)
	$	1,277,160	(16,516)	33,850	(1,387)	1,311,010	(17,903)

The number of available for sale debt securities in an unrealized loss position at March 31, 2022 totaled ~~171,~~309, compared with ~~332~~113 at December 31, ~~2016.~~2021. The ~~decrease~~increase in the number of securities in an unrealized loss position at ~~September 30, 2017,~~March 31, 2022 was due to ~~a slight decrease in~~higher current market interest rates ~~from~~compared to rates at December 31, ~~2016~~2021. At March 31, 2022, there were 3 private label mortgage-backed securities in an unrealized loss position, with an amortized cost of $3.4 million and ~~a tightening~~an unrealized loss of ~~spreads in the municipal bond sector. All temporarily impaired investment~~$212,000. These private-label mortgage-backed securities were investment grade at ~~September 30, 2017~~.

March 31, 2022.

Held to Maturity Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities at March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
U.S. Treasury obligations	$	1,430	—	—	1,430
Agency obligations	9,997		—	(622)	9,375
Mortgage-backed securities	13		—	—	13
State and municipal obligations	400,629		3,411	(6,625)	397,415
Corporate obligations	9,923		1	(493)	9,431
	$	421,992	3,412	(7,740)	417,664

At March 31, 2022, the allowance for credit losses on held to maturity debt securities totaled $34,000 and is excluded from amortized cost in the table above.


	December 31, 2021
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	9,996	—	(175)	9,821
Mortgage-backed securities	21		—	—	21
State and municipal obligations	415,724		14,463	(635)	429,552
Corporate obligations	10,448		19	(152)	10,315
	$	436,189	14,482	(962)	449,709

At December 31, 2021, the allowance for credit losses on held to maturity debt securities totaled $39,000 and is excluded from amortized cost in the table above.

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value may fluctuate during the investment period. There were 0 sales of securities from the held to maturity debt securities portfolio for the three months ended March 31, 2022 and 2021. For the three months ended March 31, 2022, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $15.8 million with gross gains of $16,000 and no gross losses. For the three months ended March 31, 2021, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $6.8 million with gross losses of $33,000 and no gross gains.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at March 31, 2022 by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	March 31, 2022
	Amortized cost		Fair value
Due in one year or less	$	17,286	17,338
Due after one year through five years	153,590		152,915
Due after five years through ten years	194,905		194,739
Due after ten years	56,198		52,659
	$	421,979	417,651

Mortgage-backed securities totaling $13,000 at amortized cost and $13,000 at fair value are excluded from the table above, as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments. Additionally, the allowance for credit losses totaling $34,000 is excluded from the table above.

The following tables present the fair values and gross unrealized losses for held to maturity debt securities in an unrealized loss position at March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Agency obligations	$	9,374	(622)	—	—	9,374	(622)
State and municipal obligations	90,209		(5,480)	8,482	(1,145)	98,691	(6,625)
Corporate obligations	8,105		(493)	—	—	8,105	(493)
	$	107,688	(6,595)	8,482	(1,145)	116,170	(7,740)


	December 31, 2021 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Agency obligations	$	9,821	(175)	—	—	9,821	(175)
State and municipal obligations	27,350		(471)	5,022	(164)	32,372	(635)
Corporate obligations	7,649		(152)	—	—	7,649	(152)
	$	44,820	(798)	5,022	(164)	49,842	(962)

The number of held to maturity debt securities in an unrealized loss position at March 31, 2022 totaled 180, compared with 53 at December 31, 2021. The increase in the number of securities in an unrealized loss position at March 31, 2022, was due to higher current market interest rates compared to rates at December 31, 2021.

Credit Quality Indicators. The following table provides the amortized cost of held to maturity debt securities by credit rating as of March 31, 2022 (in thousands):


	March 31, 2022
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Treasury Obligations	$	1,430	—	—	—	—	1,430
Agency obligations	9,997		—	—	—	—	9,997
Mortgage-backed securities	13		—	—	—	—	13
State and municipal obligations	53,191		305,861	39,664	945	968	400,629
Corporate obligations	509		2,124	7,265	—	25	9,923
	$	65,140	307,985	46,929	945	993	421,992

	December 31, 2021
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Agency obligations	$	9,996	—	—	—	—	9,996
Mortgage-backed securities	21		—	—	—	—	21
State and municipal obligations	54,583		314,396	44,392	945	1,408	415,724
Corporate obligations	510		2,634	7,279	—	25	10,448
	$	65,110	317,030	51,671	945	1,433	436,189

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. At March 31, 2022, the held to maturity debt securities portfolio was comprised of 15% rated AAA, 73% rated AA, 11% rated A, and less than 1% either below an A rating or not rated by Moody’s Investors Service or Standard and Poor’s. Securities not explicitly rated, such as U.S. Government mortgage-backed securities, were grouped where possible under the credit rating of the issuer of the security.

At March 31, 2022, the allowance for credit losses on held to maturity debt securities was $34,000, a decrease from $39,000 at December 31, 2021.

Note 3. Loans Receivable and Allowance for ~~Loan~~Credit Losses

Loans receivable at ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016~~2021 are summarized as follows (in thousands):


	September 30, 2017			December 31, 2016			March 31, 2022		December 31, 2021
Mortgage loans:						Mortgage loans:
Residential	$	1,157,311		1,211,672		Residential	$	1,194,613	1,202,638
Commercial	2,022,576			1,978,569		Commercial	3,937,216		3,827,370
Multi-family	1,334,984			1,402,054		Multi-family	1,394,761		1,364,397
Construction	324,692			264,814		Construction	699,415		683,166
Total mortgage loans	4,839,563			4,857,109		Total mortgage loans	7,226,005		7,077,571

Commercial loans	1,708,842			1,630,444		Commercial loans	2,131,326		2,188,866
Consumer loans	481,262			516,755		Consumer loans	316,589		327,442

Total gross loans	7,029,667			7,004,308		Total gross loans	9,673,920		9,593,879
Purchased credit-impaired ("PCI") loans	991			1,272
Premiums on purchased loans	4,229			4,968		Premiums on purchased loans	1,482		1,451
Unearned discounts	(36		)	(39	)
Net deferred fees	(6,799		)	(7,023	)

Net deferred fees and unearned discounts						Net deferred fees and unearned discounts	(12,520)		(13,706)
Total loans	$	7,028,052		7,003,486		Total loans	$	9,662,882	9,581,624

Gain (loss) recognized in Income on derivatives for the nine months ended
Consolidated Statements of Income September 30, 2017 September 30, 2016
Derivatives not designated as a hedging instrument:
Interest rate products Other income (expense) $ (428 ) $ (1,060 )
Credit contracts Other income (expense) 1
103
Total $ (427 ) $ (957 )

Derivatives designated as a hedging instrument:
Interest rate products Other income (expense) $ (166 ) $ (366 )
Total $ (166 ) $ (366 )

The Company has agreements with certain of its ~~derivative~~dealer counterparties ~~that~~which contain a provision that if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be ~~declared~~deemed in default on its derivative obligations.

In addition, the Company has agreements with certain of its ~~derivative~~dealer counterparties ~~that~~which contain a provision that if the Company fails to maintain its status as a ~~well/~~well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements.

AsAt March 31, 2022, the Company had 4 dealer counterparties. The Company had a net liability position with respect to 1 of ~~September 30, 2017,~~ the counterparties. The termination value ~~of derivatives in a~~for this net liability position, which includes accrued interest, was ~~$2.5 million.~~$5.6 million at March 31, 2022. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of ~~$3.1~~$4.8 million against its obligations under these agreements. If the Company had breached any of these provisions at ~~September 30, 2017,~~March 31, 2022, it could have been required to settle its obligations under the agreements at the termination value.

Note 12. Revenue Recognition

The Company generates revenue from several business channels. The guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) does not apply to revenue associated with financial instruments, including interest income on loans and investments, which comprise the majority of the Company's revenue. For the three months ended March 31, 2022, and 2021 the out-of-scope revenue related to financial instruments was 83.4% and 82.3%, respectively, of the Company's total revenue. Revenue-generating activities that are within the scope of Topic 606, are components of non-interest income. These revenue streams are generally classified into three categories: wealth management revenue, insurance agency income and banking service charges and other fees.

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2022 and 2021 (in thousands):


	Three months ended March 31,
	2022		2021
Non-interest income
In-scope of Topic 606:
Wealth management fees	$	7,466	7,134
Insurance agency income	3,420		2,727
Banking service charges and other fees:
Service charges on deposit accounts	2,960		2,497
Debit card and ATM fees	770		1,778
Total banking service charges and other fees	3,730		4,275
Total in-scope non-interest income	14,616		14,136
Total out-of-scope non-interest income	5,532		7,501
Total non-interest income	$	20,148	21,637

Wealth management fee income represents fees earned from customers as consideration for asset management, investment advisory and trust services. The Company’s performance obligation is generally satisfied monthly and the resulting fees are recognized monthly. The fee is generally based upon the average market value of the assets under management ("AUM") for the month and the applicable fee rate. The monthly accrual of wealth management fees is recorded in other assets on the Company's Consolidated Statements of Financial Condition. Fees are received from the customer on a monthly basis. The Company does not earn performance-based incentives. To a lesser extent, optional services such as tax return preparation and estate settlement are also available to existing customers. The Company’s performance obligation for these transaction-based services are generally satisfied, and related revenue recognized, at either a point in time when the service is completed, or in the case of estate settlement, over a relatively short period of time, as each service component is completed.

Insurance agency income, consisting of commissions and fees, is generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments. Profit-sharing contingent commissions are recognized when determinable, which is generally when such commissions are received from insurance companies, or when the Company receives formal notification of the amount of such payments.

Service charges on deposit accounts include overdraft service fees, account analysis fees and other deposit related fees. These fees are generally transaction-based, or time-based services. The Company's performance obligation for these services are generally satisfied,

and revenue recognized, at the time the transaction is completed, or the service rendered. Fees for these services are generally received from the customer either at the time of transaction, or monthly. Debit card and ATM fees are generally transaction-based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at the time of transaction or monthly.

Out-of-scope non-interest income primarily consists of Bank-owned life insurance and net fees on loan level interest rate swaps, along with gains and losses on the sale of loans and foreclosed real estate, loan prepayment fees and loan servicing fees. None of these revenue streams are subject to the requirements of Topic 606.

Note 13. Leases

The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities at March 31, 2022 and December 31, 2021 (in thousands):


	Classification	March 31, 2022		December 31, 2021
Lease Right-of-Use Assets:
Operating lease right-of-use assets	Other assets	$	65,417	$	48,808
Lease Liabilities:
Operating lease liabilities	Other liabilities	$	67,227	$	50,236

The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. Generally, the Company considers the first renewal option to be reasonably certain and includes it in the calculation of the right-of use asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception based upon the term of the lease. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was applied.

All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate properties for branches and administrative offices with terms extending through 2040.

At March 31, 2022, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 9.2 years and 2.50%, respectively.

The following tables represent lease costs and other lease information for the Company's operating leases. The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):


	For the Three Months Ended
	March 31, 2022		March 31, 2021
Lease Costs:
Operating lease cost	$	2,807	$	2,812

Variable lease cost	718		803

Total lease cost	$	3,525	$	3,615


	For the Three Months Ended
	March 31, 2022		March 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases	$	1,939	$	2,345

During the three months ended March 31, 2022, the Company added one new lease obligation related to the Company's new administrative office location in Iselin, New Jersey. The Company recorded a right-of-use asset and lease liability of $16.0 million for this lease obligation.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2022, were as follows (in thousands):


	Operating leases
Twelve months ended:
Remainder of 2022	$	6,625
2023	9,167
2024	9,004
2025	8,466
2026	7,267
Thereafter	35,208
Total future minimum lease payments	75,737
Amounts representing interest	8,510
Present value of net future minimum lease payments	$	67,227



Item 2.			MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, oras supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.

In addition, the COVID-19 pandemic continues to have an uncertain impact on the Company, its customers and the communities it serves. Given its ongoing and dynamic nature, including potential variants, it is difficult to predict the continuing impact of the pandemic on the Company's business, financial condition or results of operations. The extent of such impact will depend on future developments, which remain highly uncertain, including when the pandemic will be controlled and abated, and the extent to which the economy can remain open. As the result of the pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to remain substantially open, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for credit losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; our wealth management revenues may decline with continuing market turmoil; we may face the risk of a goodwill write-down due to stock price decline; and our cyber security risks are increased as the result of an increased number of employees working remotely.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The Company ~~also~~ advises readers that the factors listed above could affect the ~~Company’s~~Company's financial performance and could cause the ~~Company’s~~Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not have any obligation to update any forward-looking statements to reflect ~~any subsequent~~ events or circumstances after the date of this statement.

Critical Accounting Policies

The Company considers certain accounting policies to be critically important to the fair presentation of its financial condition and results of operations. These policies require management to make complex judgments on matters which by their nature have elements of uncertainty. The sensitivity of the Company’s consolidated financial statements to these critical accounting policies, and the assumptions and estimates applied, could have a significant impact on its financial condition and results of operations. These assumptions, estimates and judgments made by management can be influenced by a number of factors, including the general economic environment. The Company has identified the following as critical accounting policies:

~~Adequacy~~•Valuation of the allowance for ~~loan losses~~credit losses; and

~~Goodwill valuation and analysis for impairment~~

~~Valuation of securities available for sale and impairment analysis~~

•Valuation of deferred tax assets

~~The calculation~~On January 1, 2020, the Company adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments,” which replaced the ~~allowance for loan losses is a critical accounting policy of~~incurred loss methodology with the ~~Company.~~current expected credit loss (“CECL”) methodology. The allowance for ~~loan~~credit losses is a valuation account that reflects management’s evaluation of the ~~probable~~current expected credit losses in the loan portfolio. The Company maintains the allowance for ~~loan~~credit losses through provisions for ~~loan~~credit losses that are charged, or credited to income. Charge-offs against the allowance for ~~loan~~credit losses are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the allowance for ~~loan~~credit losses.

~~Management's evaluation of the adequacy~~

The calculation of the allowance for credit losses is a critical accounting policy of the Company. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate (“PDR”) curves through the use of segment-specific loss given default (“LGD”) risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical PDR curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using an externally developed economic forecast. This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four quarter reversion period to historical average macroeconomic factors. The Company's economic forecast is approved by the Company's Asset-Liability Committee.

The allowance for credit losses ~~includes~~is measured on a ~~review of all loans on which the collectability of principal may not be reasonably assured. For residential mortgage~~collective (pool) basis, with both a quantitative and ~~consumer loans, this~~qualitative analysis that is ~~determined primarily by delinquency status. For commercial real estate and commercial loans, an extensive review of financial performance, payment history and collateral values is conducted~~applied on a quarterly ~~basis.~~

~~As part~~basis, when similar risk characteristics exist. The respective quantitative allowance for each loan segment is measured using an econometric, discounted PDR/LGD modeling methodology in which distinct, segment-specific multi-variate regression models are applied to an external economic forecast. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the ~~evaluation~~loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the ~~adequacy~~loans are the basis for modeled cash flows, adjusted for modeled defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies at the reporting date: management has a reasonable expectation that a troubled debt restructuring (“TDR”) will be executed with an individual borrower; or when an extension or renewal option is included in the original contract and is not unconditionally cancellable by the Company. Management will assess the likelihood of the option being exercised by the borrower and appropriately extend the maturity for modeling purposes.

The Company considers qualitative adjustments to credit loss estimates for information not already captured in the quantitative component of the loss estimation process. Qualitative factors are based on portfolio concentration levels, model imprecision, changes in industry conditions, changes in the Company’s loan review process, changes in the Company’s loan policies and procedures, and economic forecast uncertainty.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating loss based on type of borrower and collateral which is generally based upon federal call report segmentation. The segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. As of March 31, 2022, the portfolio and class segments for the Company’s loan portfolio were:

•Mortgage Loans – Residential, Commercial Real Estate, Multi-Family and Construction

•Commercial Loans – Commercial Owner Occupied and Commercial Non-Owner Occupied

•Consumer Loans – First Lien Home Equity and Other Consumer

The allowance for credit losses on loans individually evaluated for impairment is based upon loans that have been identified through the Company’s normal loan monitoring process. This process includes the review of delinquent and problem loans at the Company’s Delinquency, Credit, Credit Risk Management and Allowance Committees; or which may be identified through the Company’s loan review process. Generally, the Company only evaluates loans individually for impairment if the loan is non-accrual, non-homogeneous and the balance is at least $1.0 million, or if the loan was modified as a TDR.

For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the fair value of the collateral less any selling costs. If the loan is not collateral dependent, the allowance for credit losses related to individually assessed loans is based on discounted expected cash flows using the loan’s initial effective interest rate.

A loan ~~losses, each quarter management prepares an analysis that categorizes~~for which the ~~entire loan portfolio~~terms have been modified resulting in a concession by ~~certain risk characteristics such as loan type (residential mortgage, commercial mortgage, construction, commercial, etc.)~~the Company, and ~~loan risk rating.~~

~~When assigning a risk rating to a loan, management utilizes a nine point internal risk rating system. Loans deemed~~for which the borrower is experiencing financial difficulties is considered to be ~~“acceptable quality”~~a TDR. The allowance for credit losses on a TDR is measured using the

same method as all other impaired loans, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring.

For loans acquired that have experienced more-than-insignificant deterioration in credit quality since their origination are ~~rated 1 through 4, with a rating~~considered Purchased Credit Deteriorated ("PCD") loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, ~~1 established for loans with minimal risk. Loans deemed~~but not limited to, ~~be of “questionable~~

quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial and construction loans are rated individually and each lending officer is responsible for risk rating loans in their portfolio. Thesethe following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are ~~then reviewed by~~current on acquisition date, but had been previously delinquent. At the ~~department manager and/or the Chief Lending Officer and the Credit Department. The risk ratings are also confirmed through periodic loan review examinations, which are currently performed by~~acquisition date, an ~~independent third party, and periodically by the Credit Committee in the~~estimate of expected credit renewal or approval process. In addition, the Bank requires an annual review be performed for commercial and commercial real estate loans above certain dollar thresholds, depending on loan type, to help determine the appropriate risk rating.

~~Management estimates the amount of loan~~ losses is made for groups of PCD loans ~~by applying quantitative loss factors~~with similar risk characteristics and individual PCD loans without similar risk characteristics. Subsequent to ~~loan segments at~~ the ~~risk rating level, and applying qualitative adjustments to each loan segment at~~acquisition date, the ~~portfolio level. Quantitative loss factors give consideration to historical loss experience by loan type~~initial allowance for credit losses on PCD loans will increase or decrease based upon an appropriate look back period and adjusted for a loss emergence period. Quantitative loss factors are evaluated at least annually. Management completed its annual evaluation of the quantitative loss factors for the quarter ended September 30, 2017. Qualitative adjustments give consideration to other qualitative or environmental factors such as trends and levels of delinquencies, impaired loans, charge-offs, recoveries and loan volumes, as well as national and local economic trends and conditions. Qualitative adjustments reflect riskson future evaluations, with changes recognized in the loan portfolio not captured by the quantitative loss factors and, as such, are evaluated from a risk level perspective relative to the risk levels present over the look back period. Qualitative adjustments are evaluated at least quarterly. The reserves resulting from the application of both of these sets of loss factors are combined to arrive at the allowanceprovision for ~~loan~~credit losses.

Management believes the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment or a protracted period of elevated unemployment, increasing vacancy rates in commercial investment properties and possible increases in interest rates in the absence of economic improvement. As the impact of COVID-19 continues, the effectiveness of medical advances, government programs, and the resulting impact on consumer behavior and employment conditions will have a material bearing on future credit conditions. Any one or a combination of these events may adversely affect borrowers’ ability to repay the loans, resulting in increased delinquencies, ~~loan~~credit losses and ~~future~~higher levels of provisions. ~~Accordingly, the Company has provided for loan losses at the current level to address the current risk in its loan portfolio.~~ Management considers it important to maintain the ratio of the allowance for ~~loan~~credit losses to total loans at an acceptable level given current and forecasted economic conditions, interest rates and the composition of the portfolio.

Although management believes that the Company has established and maintained the allowance for ~~loan~~credit losses at appropriate levels, additions may be necessary if future economic and other conditions differ substantially from the current operating ~~environment.~~environment and economic forecast. Management evaluates its estimates and assumptions on an ongoing basis giving consideration to forecasted economic factors, historical loss experience and other ~~factors, including the current economic environment, which management believes to be reasonable under the circumstances.~~factors. Such estimates and assumptions are adjusted when facts and circumstances dictate. ~~Illiquid~~In addition to the ongoing impact of COVID-19, illiquid credit markets, volatile securities markets, and declines in the housing and commercial real estate markets and the economy ~~generally have combined to~~in general may increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for ~~loan~~credit losses as an integral part of their examination process. Such agencies may require the Company to recognize additions to the allowance or additional write-downs based on their judgments about information available to them at the time of their examination. Although management uses the best information available, the level of the allowance for ~~loan~~credit losses remains an estimate that is subject to significant judgment and short-term change.

~~Additional critical accounting policies relate~~The CECL approach to ~~judgments about other asset impairments, including goodwill, investment securities~~calculate the allowance for credit losses on loans is significantly influenced by the composition, characteristics and ~~deferred tax assets. Goodwill is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates.~~

~~Management qualitatively determines whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing Step 1~~quality of the goodwill impairment test. If an entity concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would be required to perform Step 1 of the assessment and then, if needed, Step 2 to determine whether goodwill is impaired. However, if it is more likely than not that the fair value of the reporting unit is more than its carrying amount, the entity does not need to apply the two-step impairment test. For this analysis, the Reporting Unit is definedCompany’s loan portfolio, as well as the ~~Bank, which includes all core~~prevailing economic conditions and retail banking operations of the Company but excludes the assets, liabilities, equity, earnings and operations held exclusively at the Company level. The guidance provides certain factors an entity should consider in its qualitative assessment in determining whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. The factors include:

~~Macroeconomic conditions, such as deterioration in economic condition and limited access~~forecast utilized. Material changes to ~~capital.~~

~~Industry and market considerations, such as increased competition, regulatory developments and decline in market-dependent multiples.~~

~~Cost factors, such as increased labor costs, cost of materials~~these and other ~~operating costs.~~

~~Overall financial performance, such as declining cash flows and decline in revenue or earnings.~~

~~Other~~ relevant ~~entity-specific events, such as changes in management, strategy or customers, litigation and contemplation of bankruptcy.~~

~~Reporting unit events, such as selling or disposing a portion of a reporting unit and a change in composition of assets.~~

Management may, based upon its qualitative assessment, or at its option, perform the two-step process to evaluate the potential impairment of goodwill. If, based upon Step 1, the fair value of the Reporting Unit exceeds its carrying amount, goodwill of the Reporting Unit is considered not impaired. However, if the carrying amount of the Reporting Unit exceeds its fair value, an additional test must be performed. The second step test compares the implied fair value of the Reporting Unit’s goodwill with the carrying amount of that goodwill. An impairment loss would be recordedfactors creates greater volatility to the ~~extent that the carrying amount of goodwill exceeds its implied fair value.~~

The Company completed its annual goodwill impairment test as of September 30, 2017. Based upon its qualitative assessment of goodwill, the Company concluded it is more likely than not that the fair value of the reporting unit exceeds its carrying amount, goodwill was not impairedallowance for credit losses, and ~~no further quantitative analysis (Step 1) was warranted.~~

The Company’s available for sale securities portfolio is carried at estimated fair value, with any unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or loss in Stockholders’ Equity. Estimated fair values are based on market quotations or matrix pricing as discussed in Note 7therefore, greater volatility to the ~~consolidated financial statements. Securities which~~Company’s reported earnings. See Note 3 to the ~~Company has~~Consolidated Financial Statements for more information on the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Management conducts a periodic review and evaluation of the securities portfolio to determine if any declines in the fair values of securities are other-than-temporary. In this evaluation, if such a decline were deemed other-than-temporary, management would measure the total credit-related component of the unrealized loss, and recognize that portion of the loss as a charge to current period earnings. The remaining portion of the unrealized loss would be recognized as an adjustment to accumulated other comprehensive income. The fair value of the securities portfolio is significantly affected by changes in interest rates. In general, as interest rates rise, the fair value of fixed-rate securities decreases and as interest rates fall, the fair value of fixed-rate securities increases. The Company determines if it has the intent to sell these securities or if it is more likely than not that the Company would be required to sell the securities before the anticipated recovery. If either exists, the entire decline in value is considered other-than-temporary and would be recognized as an expense in the current period. In its evaluations, the Company did not recognize an other-than-temporary impairment chargeallowance for credit losses on ~~securities for the three and nine months ended September 30, 2017 and 2016.~~loans.

The determination of whether deferred tax assets will be realizable is predicated on the reversal of existing deferred tax liabilities ~~utilization against carryback years~~ and estimates of future taxable income. Such estimates are subject to management’s judgment. A valuation allowance is established when management is unable to conclude that it is more likely than not that it will realize deferred tax assets based on the nature and timing of these items. The Company did not require a valuation allowance at ~~September 30, 2017 and~~March 31, 2022 or December 31, ~~2016.~~2021.

COMPARISON OF FINANCIAL CONDITION AT ~~SEPTEMBER 30, 2017~~MARCH 31, 2022 AND DECEMBER 31, ~~2016~~2021

Total assets at ~~September 30, 2017 totaled $9.50~~March 31, 2022 were $13.62 billion, a ~~$5.3~~$164.2 million decrease from December 31, ~~2016.~~2021. The ~~decline~~decrease in total assets was primarily due to a ~~$23.2~~$279.3 million decrease in cash and cash equivalents and a $10.1 million decrease in total investments, ~~a $5.5 million decrease in premises and equipment and a $2.3 million decrease in foreclosed assets,~~ partially offset by ~~a $24.6~~an $81.3 million increase in total loans.

~~Total loans~~The Company’s loan portfolio increased ~~$24.6~~$81.3 million ~~or 0.4%,~~ to ~~$7.03~~$9.66 billion at ~~September 30, 2017,~~March 31, 2022, from ~~$7.00~~$9.58 billion at December 31, ~~2016.~~2021. For the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2022, loan ~~originations,~~funding, including advances on lines of credit, totaled ~~$2.56 billion. During~~$959.4 million, compared with $770.5 million for the ~~nine~~same period in 2021. Total Paycheck Protection Program ("PPP") loans outstanding decreased $66.0 million to $28.9 million at March 31, 2022, from $94.9 million at December 31, 2021. Excluding the net decrease in PPP loans, during the three months ended ~~September 30, 2017,~~March 31, 2022, the ~~loan portfolio had~~Company experienced net increases ~~of $78.1 million~~ in commercial

mortgage loans, ~~$59.9 million in~~multi-family loans, construction loans and ~~$44.0~~commercial loans of $109.8 million, ~~in commercial mortgage loans,~~$30.4 million, $16.2 million and $8.5 million, respectively, partially offset by net decreases ~~of $67.1 million~~ in ~~multi-family mortgage~~consumer loans ~~$54.4 million in~~and residential mortgage loans of $10.9 million and ~~$35.5~~$8.0 million, ~~in consumer loans.~~respectively. Commercial real estate, commercial and construction loans represented ~~76.7%~~84.4% of the total loan portfolio at ~~September 30, 2017,~~March 31, 2022, compared to ~~75.3%~~84.1% at December 31, ~~2016.~~2021.

The Company participates in loans originated by other banks, including participations designated as Shared National Credits (“SNCs”). The Company’s gross commitments and outstanding balances as a participant in SNCs were ~~$311.3~~$192.7 million and ~~$214.1~~$107.8 million, respectively, at ~~September 30, 2017.~~March 31, 2022, compared to $167.1 million and $78.5 million, respectively, at December 31, 2021. No ~~SNCs~~SNC relationships were 90 days or more delinquent at ~~September 30, 2017.~~March 31, 2022.

The Company had outstanding junior lien mortgages totaling ~~$209.2~~$137.0 million at ~~September 30, 2017.~~March 31, 2022. Of this total, 22eight loans totaling ~~$1.3 million~~$385,000 were 90 days or more ~~delinquent. These loans were allocated total loss reserves~~delinquent with an allowance for credit losses of ~~$238,000.~~$6,000.

The following table sets forth information regarding the Company’s non-performing assets as of ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016~~2021 (in thousands):


	September 30, 2017		December 31, 2016		March 31, 2022		December 31, 2021
Mortgage loans:				Mortgage loans:
Residential	$	8,820	12,021	Residential	$	5,396	6,072
Commercial	8,070		7,493	Commercial	19,533		16,887
Multi-family	—		553	Multi-family	2,053		439
Construction	—		2,517	Construction	2,366		2,365
Total mortgage loans	16,890		22,584	Total mortgage loans	29,348		25,763
Commercial loans	17,523		16,787	Commercial loans	13,793		20,582
Consumer loans	2,035		3,030	Consumer loans	1,171		1,682
Total non-performing/non-accrual loans	36,448		42,401
Total non-performing/accruing loans - 90 days or more delinquent	—		—

Total non-performing loans	36,448		42,401	Total non-performing loans	44,312		48,027
Foreclosed assets	5,703		7,991	Foreclosed assets	8,578		8,731
Total non-performing assets	$	42,151	50,392	Total non-performing assets	$	52,890	56,758


Three months ended March 31,	Mortgage loans		Commercial loans	Consumer loans	Total
2022
Balance at beginning of period	$	52,104	26,343	2,293	80,740
Provision benefit to operations	(1,995)		(4,404)	(1)	(6,400)

Recoveries of loans previously charged-off	10		1,860	166	2,036
Loans charged-off	(23)		—	(78)	(101)
Balance at end of period	$	50,096	23,799	2,380	76,275

2021
Balance at beginning of period	$	68,307	27,084	6,075	101,466
Provision benefit to operations	(13,467)		(467)	(1,066)	(15,000)

Recoveries of loans previously charged-off	276		528	303	1,107
Loans charged-off	(918)		(843)	(221)	(1,982)
Balance at end of period	$	54,198	26,302	5,091	85,591


	March 31, 2022
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	37,976	9,147	1,200	48,323
Collectively evaluated for impairment	7,188,029		2,122,179	315,389	9,625,597
Total gross loans	$	7,226,005	2,131,326	316,589	9,673,920


	September 30, 2017						December 31, 2021
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments		Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	28,578	19,393	2,210	50,181	Individually evaluated for impairment	$	34,610	16,420	1,224	52,254
Collectively evaluated for impairment	4,810,985		1,689,449	479,052	6,979,486	Collectively evaluated for impairment	7,042,961		2,172,446	326,218	9,541,625
Total gross loans	$	4,839,563	1,708,842	481,262	7,029,667	Total gross loans	$	7,077,571	2,188,866	327,442	9,593,879



	December 31, 2016
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	29,551	20,255	2,213	52,019
Collectively evaluated for impairment	4,827,558		1,610,189	514,542	6,952,289
Total gross loans	$	4,857,109	1,630,444	516,755	7,004,308


	March 31, 2022
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	840	1,145	49	2,034
Collectively evaluated for impairment	49,256		22,654	2,331	74,241
Total gross loans	$	50,096	23,799	2,380	76,275


☒
ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	~~For the quarterly period ended September 30, 2017~~



	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017		2016
Interest income:
Real estate secured loans	$	47,692	$	45,262		$	140,712	$	134,411
Commercial loans	18,964		16,093			53,884		46,419
Consumer loans	5,083		5,627			15,293		16,657
Securities available for sale and Federal Home Loan Bank Stock	6,540		5,576			19,651		17,074
Investment securities held to maturity	3,272		3,349			9,812		10,011
Deposits, Federal funds sold and other short-term investments	343		138			898		252
Total interest income	81,894		76,045			240,250		224,824
Interest expense:
Deposits	4,988		4,441			14,093		12,397
Borrowed funds	6,694		6,633			19,855		20,477
Total interest expense	11,682		11,074			33,948		32,874
Net interest income	70,212		64,971			206,302		191,950
Provision for loan losses	500		1,000			3,700		4,200
Net interest income after provision for loan losses	69,712		63,971			202,602		187,750
Non-interest income:
Fees	7,680		6,137			20,940		19,309
Wealth management income	4,592		4,262			13,314		13,084
Bank-owned life insurance	1,353		1,382			5,291		4,083
Net gain (loss) on securities transactions	36		(43		)	47		54
Other income	1,451		2,328			2,804		4,378
Total non-interest income	15,112		14,066			42,396		40,908
Non-interest expense:
Compensation and employee benefits	27,328		26,725			81,086		78,496
Net occupancy expense	6,105		6,227			19,255		18,729
Data processing expense	3,314		3,328			10,302		9,845
FDIC insurance	967		1,117			3,065		3,732
Amortization of intangibles	632		767			2,079		2,628
Advertising and promotion expense	907		787			2,709		2,567
Other operating expenses	7,027		6,899			21,248		20,628
Total non-interest expense	46,280		45,850			139,744		136,625
Income before income tax expense	38,544		32,187			105,254		92,033
Income tax expense	11,969		9,281			30,788		26,798
Net income	$	26,575	$	22,906		$	74,466	$	65,235
Basic earnings per share	$	0.41	$	0.36		$	1.16	$	1.03
Weighted average basic shares outstanding	64,454,684		63,728,393			64,327,640		63,545,065
Diluted earnings per share	$	0.41	$	0.36		$	1.15	$	1.02
Weighted average diluted shares outstanding	64,645,278		63,934,886			64,519,710		63,727,723



	COMMON STOCK		ADDITIONAL PAID-IN CAPITAL			RETAINED EARNINGS			ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)			TREASURY STOCK			UNALLOCATED ESOP SHARES			COMMON STOCK ACQUIRED BY DDFP			DEFERRED COMPENSATION DDFP			TOTAL STOCKHOLDERS’ EQUITY
Balance at December 31, 2015	$	832	$	1,000,810		$	507,713		$	(2,546	)	$	(269,014	)	$	(41,730	)	$	(6,517	)	$	6,517		$	1,196,065
Net income	—		—			65,235			—			—			—			—			—			65,235
Other comprehensive income, net of tax	—		—			—			8,520			—			—			—			—			8,520
Cash dividends declared	—		—			(35,141		)	—			—			—			—			—			(35,141		)
Effect of adopting Accounting Standards Update ("ASU") No. 2016-09	—		(622		)	622			—			—			—			—			—			—
Distributions from DDFP	—		91			—			—			—			—			503			(503		)	91
Purchases of treasury stock	—		—			—			—			(1,557		)	—			—			—			(1,557		)
Purchase of employee restricted shares to fund statutory tax withholding	—		—			—			—			(1,161		)	—			—			—			(1,161		)
Shares issued dividend reinvestment plan	—		180			—			—			996			—			—			—			1,176
Stock option exercises	—		(60		)	—			—			5,658			—			—			—			5,598
Allocation of ESOP shares	—		325			—			—			—			2,016			—			—			2,341
Allocation of SAP shares	—		2,982			—			—			—			—			—			—			2,982
Allocation of stock options	—		131			—			—			—			—			—			—			131
Balance at September 30, 2016	$	832	$	1,003,837		$	538,429		$	5,974		$	(265,078	)	$	(39,714	)	$	(6,014	)	$	6,014		$	1,244,280



	September 30, 2017 Unrealized Losses
	Less than 12 months				12 months or longer			Total
	Fair value		Gross unrealized losses		Fair value	Gross unrealized losses		Fair value	Gross unrealized losses
U.S. Treasury obligations	$	5,994	(1	)	—	—		5,994	(1	)
Agency obligations	16,008		(11	)	—	—		16,008	(11	)
Mortgage-backed securities	424,627		(3,956	)	50,881	(972	)	475,508	(4,928	)
Corporate obligations	—		—		991	(10	)	991	(10	)
	$	446,629	(3,968	)	51,872	(982	)	498,501	(4,950	)



	December 31, 2016 Unrealized Losses
	Less than 12 months				12 months or longer			Total
	Fair value		Gross unrealized losses		Fair value	Gross unrealized losses		Fair value	Gross unrealized losses
Agency obligations	$	14,000	(25	)	—	—		14,000	(25	)
Mortgage-backed securities	553,629		(8,377	)	65	(3	)	553,694	(8,380	)
State and municipal obligations	661		(3	)	—	—		661	(3	)
Corporate obligations	—		—		990	(11	)	990	(11	)
	$	568,290	(8,405	)	1,055	(14	)	569,345	(8,419	)


	September 30, 2017									March 31, 2022
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable		30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no specific allowance
Mortgage loans:									Mortgage loans:
Residential	$	5,973	3,525	8,820	—	18,318	1,138,993	1,157,311	Residential	$	2,385	1,354	5,396	—	9,135	1,185,478	1,194,613	5,396
Commercial	608		292	8,070	—	8,970	2,013,606	2,022,576	Commercial	282		—	19,533	—	19,815	3,917,401	3,937,216	19,533
Multi-family	—		—	—	—	—	1,334,984	1,334,984	Multi-family	816		—	2,053	—	2,869	1,391,892	1,394,761	2,053
Construction	—		—	—	—	—	324,692	324,692	Construction	1,659		—	2,366	—	4,025	695,390	699,415	2,366
Total mortgage loans	6,581		3,817	16,890	—	27,288	4,812,275	4,839,563	Total mortgage loans	5,142		1,354	29,348	—	35,844	7,190,161	7,226,005	29,348
Commercial loans	1,870		244	17,523	—	19,637	1,689,205	1,708,842	Commercial loans	4,019		318	13,793	—	18,130	2,113,196	2,131,326	10,366
Consumer loans	2,307		1,080	2,035	—	5,422	475,840	481,262	Consumer loans	571		90	1,171	—	1,832	314,757	316,589	1,171
Total gross loans	$	10,758	5,141	36,448	—	52,347	6,977,320	7,029,667	Total gross loans	$	9,732	1,762	44,312	—	55,806	9,618,114	9,673,920	40,885



	For the three months ended
	September 30, 2017					September 30, 2016
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Mortgage loans:
Residential	2	$	632	$	470	—	$	—	$	—
Total mortgage loans	2	632		470		—	—		—
Total restructured loans	2	$	632	$	470	—	$	—	$	—


	For the nine months ended											For the three months ended
	September 30, 2017					September 30, 2016						March 31, 2022					March 31, 2021
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Mortgage loans:											Mortgage loans:
Residential	7	$	3,436	$	3,202	—	$	—	$	—
Total mortgage loans	7	3,436		3,202		—	—		—

Commercial loans	1	1,300		1,210		—	—		—		Commercial loans	—	—		—		3	1,361		1,359
Consumer loans	1	70		68		—	—		—

Total restructured loans	9	$	4,806	$	4,480	—	$	—	$	—	Total restructured loans	—	$	—	$	—	3	$	1,361	$	1,359


	March 31, 2022						December 31, 2021
	Unpaid Principal Balance		Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized	Unpaid Principal Balance	Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized
Loans with no related allowance
Mortgage loans:
Residential	$	11,064	8,680	—	8,723	95	12,326	9,814	—	9,999	423
Commercial	18,381		17,648	—	17,723	14	15,310	14,685	—	15,064	63
Multi-family	1,614		1,614	—	1,620	—	—	—	—	—	—
Construction	1,656		1,588	—	1,588	—	1,656	1,588	—	1,643	30
Total	32,715		29,530	—	29,654	109	29,292	26,087	—	26,706	516
Commercial loans	5,670		3,645	—	3,680	4	9,845	7,254	—	7,714	33
Consumer loans	1,425		889	—	898	14	1,389	853	—	1,613	115
Total impaired loans	$	39,810	34,064	—	34,232	127	40,526	34,194	—	36,033	664

Loans with an allowance recorded
Mortgage loans:
Residential	$	7,925	7,584	824	7,617	72	7,994	7,652	858	7,742	278
Commercial	862		862	16	867	12	871	871	17	894	48


Total	8,787		8,446	840	8,484	84	8,865	8,523	875	8,636	326
Commercial loans	6,152		5,502	1,145	8,546	34	9,498	9,166	3,358	8,304	257
Consumer loans	331		311	49	313	3	391	371	51	379	18
Total impaired loans	$	15,270	14,259	2,034	17,343	121	18,754	18,060	4,284	17,319	601

Total impaired loans
Mortgage loans:
Residential	$	18,989	16,264	824	16,340	167	20,320	17,466	858	17,741	701
Commercial	19,243		18,510	16	18,590	26	16,181	15,556	17	15,958	111
Multi-family	1,614		1,614	—	1,620	—	—	—	—	—	—
Construction	1,656		1,588	—	1,588	—	1,656	1,588	—	1,643	30
Total	41,502		37,976	840	38,138	193	38,157	34,610	875	35,342	842
Commercial loans	11,822		9,147	1,145	12,226	38	19,343	16,420	3,358	16,018	290
Consumer loans	1,756		1,200	49	1,211	17	1,780	1,224	51	1,992	133
Total impaired loans	$	55,080	48,323	2,034	51,575	248	59,280	52,254	4,284	53,352	1,265



	September 30, 2017						December 31, 2016
	Unpaid Principal Balance		Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized	Unpaid Principal Balance	Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized
Loans with no related allowance
Mortgage loans:
Residential	$	13,035	10,277	—	10,391	340	10,691	7,881	—	8,027	484
Commercial	4,600		4,472	—	4,496	—	1,556	1,556	—	1,586	40
Construction	—		—	—	—	—	2,553	2,517	—	2,514	—
Total	17,635		14,749	—	14,887	340	14,800	11,954	—	12,127	524
Commercial loans	17,505		13,884	—	13,954	280	21,830	18,874	—	13,818	259
Consumer loans	1,606		1,067	—	1,186	51	1,493	981	—	1,026	59
Total impaired loans	$	36,746	29,700	—	30,027	671	38,123	31,809	—	26,971	842

Loans with an allowance recorded
Mortgage loans:
Residential	$	13,803	12,759	1,633	12,873	374	14,169	13,520	1,716	13,705	519
Commercial	1,071		1,070	140	1,083	40	4,138	4,077	270	4,111	55
Construction	—		—	—	—	—	—	—	—	—	—
Total	14,874		13,829	1,773	13,956	414	18,307	17,597	1,986	17,816	574
Commercial loans	6,158		5,509	1,028	6,045	52	1,381	1,381	268	5,956	4
Consumer loans	1,154		1,143	71	1,170	47	1,242	1,232	80	1,259	66
Total impaired loans	$	22,186	20,481	2,872	21,171	513	20,930	20,210	2,334	25,031	644

Total impaired loans
Mortgage loans:
Residential	$	26,838	23,036	1,633	23,264	714	24,860	21,401	1,716	21,732	1,003
Commercial	5,671		5,542	140	5,579	40	5,694	5,633	270	5,697	95
Construction	—		—	—	—	—	2,553	2,517	—	2,514	—
Total	32,509		28,578	1,773	28,843	754	33,107	29,551	1,986	29,943	1,098
Commercial loans	23,663		19,393	1,028	19,999	332	23,211	20,255	268	19,774	263
Consumer loans	2,760		2,210	71	2,356	98	2,735	2,213	80	2,285	125
Total impaired loans	$	58,932	50,181	2,872	51,198	1,184	59,053	52,019	2,334	52,002	1,486



~~FORM 10-Q~~


	Gross Loans Held for Investment by Year of Origination at March 31, 2022
	2022		2021	2020	2019	2018	Prior to 2018	Revolving Loans	Revolving loans to term loans	Total Loans
Residential
Special mention	$	—	—	—	—	—	1,354	—	—	1,354
Substandard	—		—	—	—	280	7,718	—	—	7,998
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	—	280	9,072	—	—	9,352
Pass/Watch	45,614		225,105	228,755	109,721	62,727	513,339	—	—	1,185,261
Total residential	$	45,614	225,105	228,755	109,721	63,007	522,411	—	—	1,194,613

Commercial Mortgage
Special mention	$	—	—	838	28,703	49,024	13,930	—	—	92,495
Substandard	—		—	—	—	7,330	22,648	774	—	30,752
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	838	28,703	56,354	36,578	774	—	123,247
Pass/Watch	235,572		662,441	602,550	572,794	284,646	1,319,324	105,975	30,667	3,813,969
Total commercial mortgage	$	235,572	662,441	603,388	601,497	341,000	1,355,902	106,749	30,667	3,937,216

Multi-family
Special mention	$	—	—	—	—	—	1,683	—	—	1,683
Substandard	—		—	439	—	—	2,554	—	—	2,993
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—��		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	439	—	—	4,237	—	—	4,676
Pass/Watch	51,221		154,053	284,440	155,014	193,026	548,473	2,695	1,163	1,390,085
Total multi-family	$	51,221	154,053	284,879	155,014	193,026	552,710	2,695	1,163	1,394,761

Construction
Special mention	$	—	—	—	939	19,014	—	—	—	19,953
Substandard	—		—	—	382	2,365	—	—	—	2,747
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—


	March 31, 2022		December 31, 2021
Savings	$	1,490,624	1,460,541
Money market	2,652,077		2,592,523
NOW	3,705,969		3,722,198
Non-interest bearing	2,825,762		2,766,235
Certificates of deposit	691,655		692,515
Total deposits	$	11,366,087	11,234,012


	March 31, 2022		December 31, 2021
Securities sold under repurchase agreements	$	118,759	116,760
FHLB line of credit	—		—
FHLB advances	280,848		510,014

Total borrowed funds	$	399,606	626,774


	2022
Due in one year or less	$	102,971
Due after one year through two years	45,049
Due after two years through three years	74,668
Due after three years through four years	58,160

Thereafter	—
Total FHLB advances	$	280,848



	At September 30, 2017
	Residential		Commercial mortgage	Multi- family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	3,525	19,437	16	—	22,978	26,156	1,080	50,214
Substandard	8,820		25,633	—	—	34,453	30,361	2,034	66,848
Doubtful	—		—	—	—	—	771	—	771
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	12,345		45,070	16	—	57,431	57,288	3,114	117,833
Pass/Watch	1,144,966		1,977,506	1,334,968	324,692	4,782,132	1,651,554	478,148	6,911,834
Total	$	1,157,311	2,022,576	1,334,984	324,692	4,839,563	1,708,842	481,262	7,029,667


	At December 31, 2016
	Residential		Commercial mortgage	Multi- family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	6,563	25,329	563	—	32,455	14,840	1,242	48,537
Substandard	12,021		23,011	553	2,517	38,102	47,255	2,940	88,297
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	18,584		48,340	1,116	2,517	70,557	62,095	4,182	136,834
Pass/Watch	1,193,088		1,930,229	1,400,938	262,297	4,786,552	1,568,349	512,573	6,867,474
Total	$	1,211,672	1,978,569	1,402,054	264,814	4,857,109	1,630,444	516,755	7,004,308


	Maximum balance		Average balance	Weighted average interest rate
March 31, 2022
Securities sold under repurchase agreements	$	120,188	117,615	0.30	%
FHLB line of credit	—		—	—
FHLB advances	488,996		432,064	0.99

December 31, 2021
Securities sold under repurchase agreements	$	132,005	116,158	0.07	%
FHLB line of credit	—		205	0.34
FHLB advances	941,939		673,014	1.27



	Three months ended September 30,								Nine months ended September 30,
	Pension benefits					Other post- retirement benefits			Pension benefits					Other post- retirement benefits
	2017			2016		2017		2016	2017			2016		2017		2016
Service cost	$	—		—		26		37	$	—		—		78		112
Interest cost	306			312		218		285	920			936		654		854
Expected return on plan assets	(637		)	(612	)	—		—	(1,913		)	(1,836	)	—		—
Amortization of prior service cost	—			—		—		—	—			—		—		—
Amortization of the net loss	230			236		(169	)	—	690			708		(507	)	—
Net periodic (increase) benefit cost	$	(101	)	(64	)	75		322	$	(303	)	(192	)	225		966


	Three months ended March 31,
	Pension benefits			Other post-retirement benefits
	2022		2021	2022	2021
Service cost	$	—	—	7	9
Interest cost	214		198	111	106
Expected return on plan assets	(864)		(807)	—	—
Amortization of prior service cost	—		—	—	—
Amortization of the net loss (gain)	—		118	(326)	(268)
Net periodic (benefit) cost	$	(650)	(491)	(208)	(153)



Level 1:						Unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2:						Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3:						Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).


							Fair Value Measurements at Reporting Date Using:
	Fair Value Measurements at Reporting Date Using:						March 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
(In thousands)	September 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:						Measured on a recurring basis:
Securities available for sale:
Available for sale debt securities:						Available for sale debt securities:
U.S. Treasury obligations	$	5,994	5,994	—	—	U.S. Treasury obligations	$	260,165	260,165	—	—
Agency obligations	28,035		28,035	—	—

Mortgage-backed securities	968,412		—	968,412	—	Mortgage-backed securities	1,670,464		—	1,670,464	—
Asset-backed securities						Asset-backed securities	44,936		—	44,936	—
State and municipal obligations	3,807		—	3,807	—	State and municipal obligations	63,846		—	63,846	—
Corporate obligations	21,459		—	21,459	—	Corporate obligations	32,926		—	32,926	—
Total available for sale debt securities						Total available for sale debt securities	2,072,337		260,165	1,812,172	—
Equity securities	598		598	—	—	Equity securities	1,256		1,256	—	—
Total securities available for sale	1,028,305		34,627	993,678	—
Derivative assets	8,035		—	8,035	—	Derivative assets	79,231		—	79,231	—
	$	1,036,340	34,627	1,001,713	—		$	2,152,824	261,421	1,891,403	—

Derivative liabilities	$	7,595	—	7,595	—	Derivative liabilities	$	60,644	—	60,644	—

Measured on a non-recurring basis:						Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	5,525	—	—	5,525	Loans measured for impairment based on the fair value of the underlying collateral	$	16,173	—	—	16,173
Foreclosed assets	5,703		—	—	5,703	Foreclosed assets	8,578		—	—	8,578
	$	11,228	—	—	11,228		$	24,751	—	—	24,751


			Fair Value Measurements at September 30, 2017 Using:					Fair Value Measurements at March 31, 2022 Using:
(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:							Financial assets:
Cash and cash equivalents	$	148,783	148,783	148,783	—	—	Cash and cash equivalents	$	433,146	433,146	433,146	—	—
Securities available for sale:
Available for sale debt securities:							Available for sale debt securities:
U.S. Treasury obligations	5,994		5,994	5,994	—	—	U.S. Treasury obligations	260,165		260,165	260,165	—	—

Mortgage-backed securities							Mortgage-backed securities	1,670,464		1,670,464	—	1,670,464	—
Asset-backed securities							Asset-backed securities	44,936		44,936	—	44,936	—
State and municipal obligations							State and municipal obligations	63,846		63,846	—	63,846	—
Corporate obligations							Corporate obligations	32,926		32,926	—	32,926	—
Total available for sale debt securities							Total available for sale debt securities	$	2,072,337	2,072,337	260,165	1,812,172	—
Held to maturity debt securities, net of allowance for credit losses:							Held to maturity debt securities, net of allowance for credit losses:
US Treasury obligations							US Treasury obligations	1,430		1,430	1,430	—	—
Agency obligations	28,035		28,035	28,035	—	—	Agency obligations	9,997		9,375	9,375	—	—
Mortgage-backed securities	968,412		968,412	—	968,412	—	Mortgage-backed securities	13		13	—	13	—
State and municipal obligations	3,807		3,807	—	3,807	—	State and municipal obligations	400,606		397,415	—	397,415	—
Corporate obligations	21,459		21,459	—	21,459	—	Corporate obligations	9,912		9,431	—	9,431	—
Equity securities	598		598	598	—	—
Total securities available for sale	$	1,028,305	1,028,305	34,627	993,678	—
Investment securities held to maturity:
Agency obligations	4,307		4,252	4,252	—	—
Mortgage-backed securities	475		492	—	492	—
State and municipal obligations	467,113		475,759	—	475,759	—
Corporate obligations	9,950		9,922	—	9,922	—
Total securities held to maturity	$	481,845	490,425	4,252	486,173	—
Total held to maturity debt securities, net of allowance for credit losses							Total held to maturity debt securities, net of allowance for credit losses	$	421,958	417,664	10,805	406,859	—
FHLBNY stock	70,896		70,896	70,896	—	—	FHLBNY stock	23,973		23,973	23,973	—	—
Loans, net of allowance for loan losses	6,967,776		6,955,183	—	—	6,955,183
Equity Securities							Equity Securities	1,256		1,256	1,256	—	—
Loans, net of allowance for credit losses							Loans, net of allowance for credit losses	9,586,607		9,586,361	—	—	9,586,361
Derivative assets	8,035		8,035	—	8,035	—	Derivative assets	79,231		79,231	—	79,231	—

Financial liabilities:							Financial liabilities:
Deposits other than certificates of deposits	$	5,963,348	5,963,348	5,963,348	—	—	Deposits other than certificates of deposits	$	10,674,432	10,674,432	10,674,432	—	—
Certificates of deposit	627,868		628,523	—	628,523	—	Certificates of deposit	691,655		690,591	—	690,591	—
Total deposits	$	6,591,216	6,591,871	5,963,348	628,523	—	Total deposits	$	11,366,087	11,365,023	10,674,432	690,591	—
Borrowings	1,525,560		1,530,444	—	1,530,444	—	Borrowings	399,606		386,705	—	386,705	—
Subordinated debentures							Subordinated debentures	10,336		9,594	—	9,594	—
Derivative liabilities	7,595		7,595	—	7,595	—	Derivative liabilities	60,644		60,644	—	60,644	—


			Fair Value Measurements at December 31, 2016 Using:					Fair Value Measurements at December 31, 2021 Using:
(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:							Financial assets:
Cash and cash equivalents	$	144,297	144,297	144,297	—	—	Cash and cash equivalents	$	712,463	712,463	712,463	—	—
Securities available for sale:
Available for sale debt securities:							Available for sale debt securities:
U.S. Treasury obligations	8,008		8,008	8,008	—	—	U.S. Treasury obligations	196,329		196,329	196,329	—	—

Mortgage-backed securities							Mortgage-backed securities	1,708,831		1,708,831	—	1,708,831	—
Asset-backed securities							Asset-backed securities	46,797		46,797	—	46,797	—
State and municipal obligations							State and municipal obligations	69,707		69,707	—	69,707	—
Corporate obligations							Corporate obligations	36,187		36,187	—	36,187	—
Total available for sale debt securities							Total available for sale debt securities	$	2,057,851	2,057,851	196,329	1,861,522	—
Held to maturity debt securities:							Held to maturity debt securities:

Agency obligations	57,188		57,188	57,188	—	—	Agency obligations	$	9,996	9,821	9,821	—	—
Mortgage-backed securities	951,861		951,861	—	951,861	—	Mortgage-backed securities	21		21	—	21	—
State and municipal obligations	3,743		3,743	—	3,743	—	State and municipal obligations	415,699		429,552	—	429,552	—
Corporate obligations	19,037		19,037	—	19,037	—	Corporate obligations	10,434		10,315	—	10,315	—
Equity securities	549		549	549	—	—
Total securities available for sale	$	1,040,386	1,040,386	65,745	974,641	—
Investment securities held to maturity:
Agency obligations	$	4,306	4,225	4,225	—	—
Mortgage-backed securities	893		924	—	924	—
State and municipal obligations	473,653		474,852	—	474,852	—
Corporate obligations	9,331		9,286	—	9,286	—
Total securities held to maturity	$	488,183	489,287	4,225	485,062	—
Total held to maturity debt securities							Total held to maturity debt securities	$	436,150	449,709	9,821	439,888	—
FHLBNY stock	75,726		75,726	75,726	—	—	FHLBNY stock	34,290		34,290	34,290	—	—
Loans, net of allowance for loan losses	6,941,603		6,924,440	—	—	6,924,440
Equity Securities							Equity Securities	1,325		1,325	1,325	—	—
Loans, net of allowance for credit losses							Loans, net of allowance for credit losses	9,500,884		9,607,225	—	—	9,607,225
Derivative assets	7,441		7,441	—	7,441	—	Derivative assets	65,903		65,903	—	65,903	—

Financial liabilities:							Financial liabilities:
Deposits other than certificates of deposits	$	5,902,446	5,902,446	5,902,446	—	—	Deposits other than certificates of deposits	$	10,541,497	10,541,497	10,541,497	—	—
Certificates of deposit	651,183		653,772	—	653,772	—	Certificates of deposit	692,515		694,041	—	694,041	—
Total deposits	$	6,553,629	6,556,218	5,902,446	653,772	—	Total deposits	$	11,234,012	11,235,538	10,541,497	694,041	—
Borrowings	1,612,745		1,617,023	—	1,617,023	—	Borrowings	626,774		625,636	—	625,636	—
Subordinated debentures							Subordinated debentures	10,283		9,750	—	9,750	—
Derivative liabilities	6,750		6,750	—	6,750	—	Derivative liabilities	61,412		61,412	—	61,412	—


	Changes in Accumulated Other Comprehensive (Loss) Income by Component, net of tax for the three months ended March 31,
	2022					2021
	Unrealized Losses on Available for Sale Debt Securities		Post- Retirement Obligations	Unrealized Gains on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Income (Loss)	Unrealized Gains (Losses) on Available for Sale Debt Securities	Post- Retirement Obligations	Unrealized Gains (Losses) on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Income (Loss)
Balance at December 31,	$	(211)	2,981	4,093	6,863	23,690	(1,081)	(4,954)	17,655
Current - period other comprehensive (loss)	(84,971)		(276)	10,438	(74,809)	(9,190)	(109)	4,621	(4,678)
Balance at March 31,	$	(85,182)	2,705	14,531	(67,946)	14,500	(1,190)	(333)	12,977


	Reclassifications From Accumulated Other Comprehensive Income ("AOCI")
	Amount reclassified from AOCI for the three months ended March 31,			Affected line item in the Consolidated Statement of Income
	2022		2021
Details of AOCI:
Available for sale debt securities:
Realized net gains on the sale of securities available for sale	$	—	(230)	Net gain on securities transactions
	—		59	Income tax expense
	—		(171)	Net of tax

Cash flow hedges:
Unrealized losses on derivatives	666		879	Interest expense
	(178)		(227)	Income tax expense
	488		652

Post-retirement obligations:
Amortization of actuarial gains	$	(326)	(150)	Compensation and employee benefits (1)
	87		41	Income tax expense
	$	(239)	(109)	Net of tax




Total reclassifications	$	249	372	Net of tax



	Reclassifications From Accumulated Other Comprehensive Income ("AOCI")
	Amount reclassified from AOCI for the nine months ended September 30,					Affected line item in the Consolidated Statement of Income
	2017			2016		Affected line item in the Consolidated Statement of Income
Details of AOCI:
Securities available for sale:
Realized net gains on the sale of securities available for sale	$	—		54		Net gain on securities transactions
	—			(22	)	Income tax expense
	—			32		Net of tax

Post-retirement obligations:
Amortization of actuarial losses	183			708		Compensation and employee benefits ⁽¹⁾
	(78		)	(284	)	Income tax expense
	105			424		Net of tax
Total reclassifications	$	105		456		Net of tax


⁽¹⁾	~~This item is included in the computation of net periodic benefit cost. See Note 5. Components of Net Periodic Benefit Cost.~~


	At September 30, 2017							Fair Values of Derivative Instruments as of March 31, 2022
	Asset Derivatives			Liability Derivatives				Asset Derivatives					Liability Derivatives
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value			Notional Amount		Consolidated Statements of Financial Condition	Fair value (2)		Notional Amount		Consolidated Statements of Financial Condition	Fair value (2)
Derivatives not designated as a hedging instrument:							Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	7,575	Other liabilities	$	7,595	Interest rate products	$	1,200,002	Other assets	$	59,907	$	1,200,002	Other liabilities	$	60,594
Credit contracts	Other assets	2		Other liabilities	—		Credit contracts	33,621		Other assets	56		99,741		Other liabilities	32
Total derivatives not designated as a hedging instrument		$	7,577		$	7,595	Total derivatives not designated as a hedging instrument				59,963					60,626

Derivatives designated as a a hedging instrument:
Derivatives designated as a hedging instrument:							Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	458	Other liabilities	$	—	Interest rate products	460,000		Other assets	19,207		20,000		Other liabilities	60
Total derivatives designated as a hedging instrument		$	458		$	—

Total gross derivative amounts recognized on the balance sheet							Total gross derivative amounts recognized on the balance sheet				79,170					60,686

Gross amounts offset on the balance sheet							Gross amounts offset on the balance sheet				—					—
Net derivative amounts presented on the balance sheet							Net derivative amounts presented on the balance sheet				$	79,170				$	60,686

Gross amounts not offset on the balance sheet:							Gross amounts not offset on the balance sheet:
Financial instruments - institutional counterparties							Financial instruments - institutional counterparties				$	5,558				$	5,558
Cash collateral - institutional counterparties (1)							Cash collateral - institutional counterparties (1)				62,840					4,630
Net derivatives not offset							Net derivatives not offset				$	10,772				$	50,498


		Gain (loss) recognized in Income on derivatives for the three months ended								Gain recognized in income on derivatives for the three months ended
	Consolidated Statements of Income	September 30, 2017			September 30, 2016				Consolidated Statements of Income	March 31, 2022		March 31, 2021
Derivatives not designated as a hedging instrument:								Derivatives not designated as a hedging instrument:
Interest rate products	Other income (expense)	$	(36	)	$	(95	)	Interest rate products	Other income	$	366	400
Credit contracts	Other income (expense)	—			5			Credit contracts	Other income	(17)		23
Total		$	(36	)	$	(90	)	Total		$	349	423

									Consolidated Statements of Income	Loss recognized in expense on derivatives for the three months ended
										March 31, 2022		March 31, 2021
Derivatives designated as a hedging instrument:								Derivatives designated as a hedging instrument:
Interest rate products	Other income (expense)	$	(59	)	$	(129	)	Interest rate products	Interest expense	$	666	879
Total		$	(59	)	$	(129	)	Total		$	666	879



	September 30, 2017		December 31, 2016
Total stockholders' equity	$	1,300,172	$	1,251,781
Less: Total intangible assets	420,877		422,937
Total tangible stockholders' equity	$	879,295	$	828,844

Shares outstanding at September 30, 2017 and December 31, 2016	66,467,819		66,082,283

Book value per share (total stockholders' equity/shares outstanding)		$19.56		$18.94
Tangible book value per share (total tangible stockholders' equity/shares outstanding)		$13.23		$12.54



	September 30, 2017
	Required				Required with Capital Conservation Buffer				Actual
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Bank:⁽¹⁾
Tier 1 leverage capital	$	363,062	4.00	%	$	363,062	4.00	%	$	828,349	9.13	%
Common equity Tier 1 risk-based capital	326,026		4.50		416,588		5.75		828,349		11.43
Tier 1 risk-based capital	434,701		6.00		525,264		7.25		828,349		11.43
Total risk-based capital	579,601		8.00		670,164		9.25		888,777		12.27

Company:
Tier 1 leverage capital	$	363,072	4.00	%	$	363,072	4.00	%	$	880,995	9.71	%
Common equity Tier 1 risk-based capital	326,037		4.50		416,603		5.75		880,995		12.16
Tier 1 risk-based capital	434,716		6.00		525,282		7.25		880,995		12.16
Total risk-based capital	579,622		8.00		670,187		9.25		941,271		12.99