Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-11713 | ||
Entity Registrant Name | OceanFirst Financial Corp. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-3412577 | ||
Entity Address, Address Line One | 110 West Front Street | ||
Entity Address, City or Town | Red Bank | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07701 | ||
City Area Code | 732 | ||
Local Phone Number | 240-4500 | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | ||
Trading Symbol | OCFC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,244,042 | ||
Entity Common Stock, Shares Outstanding | 60,298,897 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2020 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days from December 31, 2019 , are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001004702 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 120,544 | $ 120,792 |
Debt securities available-for-sale (encumbered $21,646 at December 31, 2019 and $26,509 at December 31, 2018) | 150,960 | 100,717 |
Debt securities held-to-maturity, net (estimated fair value of $777,290 at December 31, 2019 and $832,815 at December 31, 2018) (encumbered $452,212 at December 31, 2019 and $550,735 at December 31, 2018) | 768,873 | 846,810 |
Equity investments, at estimated fair value | 10,136 | 9,655 |
Restricted equity investments, at cost | 62,356 | 56,784 |
Loans receivable, net | 6,207,680 | 5,579,222 |
Interest and dividends receivable | 21,674 | 19,689 |
Other real estate owned | 264 | 1,381 |
Premises and equipment, net | 102,691 | |
Premises and equipment, net | 111,209 | |
Bank Owned Life Insurance | 237,411 | 222,482 |
Deferred tax asset | 50,067 | 63,377 |
Assets held for sale | 3,785 | 4,522 |
Other assets | 119,465 | 24,101 |
Core deposit intangible | 15,607 | 16,971 |
Goodwill | 374,632 | 338,442 |
Total assets | 8,246,145 | 7,516,154 |
Liabilities and Stockholders’ Equity | ||
Deposits | 6,328,777 | 5,814,569 |
Federal Home Loan Bank advances | 519,260 | 449,383 |
Securities sold under agreements to repurchase with retail customers | 71,739 | 61,760 |
Other borrowings | 96,801 | 99,530 |
Advances by borrowers for taxes and insurance | 13,884 | 14,066 |
Other liabilities | 62,565 | 37,488 |
Total liabilities | 7,093,026 | 6,476,796 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $0.01 par value, 150,000,000 shares authorized, 51,991,856 shares issued and 50,405,048 and 47,951,168 shares outstanding at December 31, 2019 and December 31, 2018, respectively | 519 | 483 |
Additional paid-in capital | 840,691 | 757,963 |
Retained earnings | 358,668 | 305,056 |
Accumulated other comprehensive loss | (1,208) | (3,450) |
Less: Unallocated common stock held by Employee Stock Ownership Plan | (8,648) | (9,857) |
Treasury stock, 1,586,808 and 459,251 shares at December 31, 2019 and December 31, 2018, respectively | (36,903) | (10,837) |
Common stock acquired by Deferred Compensation Plan | (92) | (87) |
Deferred Compensation Plan Liability | 92 | 87 |
Total stockholders’ equity | 1,153,119 | 1,039,358 |
Total liabilities and stockholders’ equity | $ 8,246,145 | $ 7,516,154 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Securities available-for-sale, encumbered | $ 21,646,000 | $ 26,509,000 |
Securities held-to-maturity, net estimated fair value | 777,290,000 | 832,815,000 |
Securities held-to-maturity, net encumbered | $ 452,212,000 | $ 550,735,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (shares) | 51,991,856 | 51,991,856 |
Common stock, shares outstanding (shares) | 50,405,048 | 47,951,168 |
Treasury stock, shares (shares) | 1,586,808 | 459,251 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans | $ 279,931 | $ 249,549 | $ 170,588 |
Mortgage-backed securities | 15,300 | 16,034 | 11,108 |
Debt securities, equity investments and other | 13,563 | 11,071 | 7,133 |
Total interest income | 308,794 | 276,654 | 188,829 |
Interest expense: | |||
Deposits | 38,432 | 22,578 | 12,336 |
Borrowed funds | 14,391 | 13,574 | 7,275 |
Total interest expense | 52,823 | 36,152 | 19,611 |
Net interest income | 255,971 | 240,502 | 169,218 |
Provision for loan losses | 1,636 | 3,490 | 4,445 |
Net interest income after provision for loan losses | 254,335 | 237,012 | 164,773 |
Other income: | |||
Bankcard services revenue | 10,263 | 9,228 | 6,965 |
Net gain on sales of loans | 16 | 668 | 100 |
Net unrealized gain (loss) on equity investments | 267 | (199) | 0 |
Net loss from other real estate operations | (330) | (3,812) | (874) |
Income from Bank Owned Life Insurance | 5,420 | 5,105 | 3,299 |
Other | 5,927 | 2,131 | 374 |
Total other income | 42,165 | 34,827 | 27,072 |
Operating expenses: | |||
Compensation and employee benefits | 89,912 | 83,135 | 60,100 |
Occupancy | 17,159 | 17,915 | 10,657 |
Equipment | 7,719 | 8,319 | 6,769 |
Marketing | 3,469 | 3,415 | 2,678 |
Federal deposit insurance and regulatory assessments | 2,227 | 3,713 | 2,564 |
Data processing | 14,814 | 13,286 | 8,849 |
Check card processing | 5,956 | 4,209 | 3,561 |
Professional fees | 9,338 | 4,963 | 3,995 |
Other operating expense | 14,968 | 13,509 | 10,810 |
Amortization of core deposit intangible | 4,027 | 3,811 | 2,039 |
Branch consolidation expenses | 9,050 | 3,151 | 6,205 |
Merger related expenses | 10,503 | 26,911 | 8,293 |
Total operating expenses | 189,142 | 186,337 | 126,520 |
Income before provision for income taxes | 107,358 | 85,502 | 65,325 |
Provision for income taxes | 18,784 | 13,570 | 22,855 |
Net income | $ 88,574 | $ 71,932 | $ 42,470 |
Basic earnings per share (in dollars per share) | $ 1.77 | $ 1.54 | $ 1.32 |
Diluted earnings per share (in dollars per share) | $ 1.75 | $ 1.51 | $ 1.28 |
Average basic shares outstanding (shares) | 50,166 | 46,773 | 32,113 |
Average diluted shares outstanding (shares) | 50,746 | 47,657 | 33,125 |
Trust and asset management revenue | |||
Other income: | |||
Trust and asset management revenue and fees and service charges | $ 2,102 | $ 2,245 | $ 2,150 |
Fees and service charges | |||
Other income: | |||
Trust and asset management revenue and fees and service charges | $ 18,500 | $ 19,461 | $ 15,058 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 88,574 | $ 71,932 | $ 42,470 |
Other comprehensive income: | |||
Unrealized gain (loss) on debt securities (net of tax expense of $470 in 2019, and net of tax benefit of $33 and $204 in 2018 and 2017, respectively) | 1,655 | (162) | (295) |
Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $404, $1,186, and $480 in 2019, 2018 and 2017, respectively) | 587 | 1,719 | 695 |
Reclassification adjustment for gains included in net income (net of tax expense of $53 in 2018) | 195 | 0 | |
Total other comprehensive income | 2,242 | 1,752 | 400 |
Total comprehensive income | $ 90,816 | $ 73,684 | $ 42,870 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on securities, tax expense (benefit) | $ 470 | $ (33) | $ (204) |
Reclassification adjustment for gains included in net income, tax expense | (53) | ||
Accretion of unrealized loss on securities reclassified to held-to-maturity, tax expense | $ 404 | $ 1,186 | $ 480 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Employee Stock Ownership Plan | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Gain | Treasury Stock | Common Stock Acquired by Deferred Compensation Plan | Deferred Compensation Plan Liability |
Beginning Balance at Dec. 31, 2016 | $ 571,903 | $ (2,761) | $ 0 | $ 336 | $ 364,433 | $ 238,192 | $ (5,749) | $ (22,548) | $ (313) | $ 313 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 42,470 | 42,470 | ||||||||
Other comprehensive income, net of tax | 400 | 400 | ||||||||
Stock awards | 2,181 | 2,181 | ||||||||
Treasury stock allocated to restricted stock plan | 0 | (1,745) | 822 | 923 | ||||||
Allocation of ESOP stock | 919 | 282 | 637 | |||||||
Cash dividend | (19,286) | (19,286) | ||||||||
Exercise of stock options | 3,354 | (2,304) | 5,658 | |||||||
Sale/Purchase of stock for the deferred compensation plan | 0 | 229 | (229) | |||||||
Ending Balance at Dec. 31, 2017 | 601,941 | (2,479) | 0 | 336 | 354,377 | 271,023 | (5,349) | (15,967) | (84) | 84 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 71,932 | 71,932 | ||||||||
Other comprehensive income, net of tax | 1,752 | 1,752 | ||||||||
Stock awards | 3,038 | 2 | 3,036 | |||||||
Acquisition of common stock by ESOP | (8,400) | (8,400) | ||||||||
Allocation of ESOP stock | 1,618 | 1,022 | 596 | |||||||
Cash dividend | (29,564) | (29,564) | ||||||||
Exercise of stock options | 5,324 | 4 | 13,306 | (8,188) | 202 | |||||
Acquisition of company | 402,554 | 141 | 386,648 | 15,765 | ||||||
Sale/Purchase of stock for the deferred compensation plan | 0 | (3) | 3 | |||||||
Purchase shares of common stock | (10,837) | (10,837) | ||||||||
Ending Balance at Dec. 31, 2018 | 1,039,358 | (9,857) | 0 | 483 | 757,963 | 305,056 | (3,450) | (10,837) | (87) | 87 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 88,574 | 88,574 | ||||||||
Other comprehensive income, net of tax | 2,242 | 2,242 | ||||||||
Stock awards | 3,861 | 2 | 3,859 | |||||||
Allocation of ESOP stock | 1,575 | 1,209 | 366 | |||||||
Cash dividend | (34,241) | (34,241) | ||||||||
Exercise of stock options | 1,335 | 2 | 2,054 | (721) | 0 | |||||
Acquisition of company | 76,481 | 32 | 76,449 | 0 | ||||||
Sale/Purchase of stock for the deferred compensation plan | 0 | (5) | 5 | |||||||
Purchase shares of common stock | (26,066) | (26,066) | ||||||||
Ending Balance at Dec. 31, 2019 | $ 1,153,119 | $ (8,648) | $ 0 | $ 519 | $ 840,691 | $ 358,668 | $ (1,208) | $ (36,903) | $ (92) | $ 92 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retained Earnings | |||
Cash dividend per share (in dollars per share) | $ 0.68 | $ 0.62 | $ 0.60 |
Treasury Stock | |||
Purchase of common stock, shares | 1,127,557 | 459,251 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 88,574 | $ 71,932 | $ 42,470 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of premises and equipment | 8,363 | 8,706 | 6,303 |
Allocation of ESOP stock | 1,575 | 1,618 | 919 |
Stock awards | 3,861 | 3,038 | 2,181 |
Net excess tax benefit on stock compensation | (357) | (722) | (1,823) |
Amortization of core deposit intangible | 4,027 | 3,811 | 2,039 |
Net accretion of purchase accounting adjustments | (14,094) | (16,733) | (8,216) |
Amortization of servicing asset | 42 | 98 | 85 |
Net premium amortization in excess of discount accretion on securities | 3,232 | 3,893 | 3,216 |
Net amortization of deferred costs on borrowings | 216 | 262 | 74 |
Net amortization of deferred fees and discounts on loans | 1,584 | 669 | 509 |
Provision for loan losses | 1,636 | 3,490 | 4,445 |
Deferred tax provision (benefit) | 16,053 | (4,568) | 35,440 |
Net loss on sale and write-down of other real estate owned | 20 | 2,359 | 1,119 |
Write-down of fixed assets held for sale to net realizable value | 7,532 | 4,024 | 6,084 |
Net (gain) loss on sale of fixed assets | (27) | (26) | 150 |
Net unrealized (gain) loss on equity securities | (267) | 199 | 0 |
Net gain on sales of loans | (16) | (668) | (100) |
Proceeds from sales of mortgage loans held for sale | 1,023 | 2,794 | 5,282 |
Mortgage loans originated for sale | (1,007) | (2,498) | (3,872) |
Increase in value of Bank Owned Life Insurance | (5,420) | (5,105) | (3,299) |
Net loss (gain) on sale of assets held for sale | 17 | (1,245) | 0 |
(Increase) decrease in interest and dividends receivable | (397) | 186 | (2,265) |
(Increase) decrease in other assets | (32,871) | 27,301 | (5,375) |
Increase (decrease) in other liabilities | 16,948 | (10,264) | (5,235) |
Total adjustments | 11,673 | 20,619 | 37,661 |
Net cash provided by operating activities | 100,247 | 92,551 | 80,131 |
Cash flows from investing activities: | |||
Net (increase) decrease in loans receivable | (215,881) | 103,889 | (138,271) |
Purchases of loans receivable | (101,674) | (199,580) | (37,337) |
Proceeds from sale of under performing loans | 5,901 | 10,412 | 11,186 |
Purchase of debt investment securities available-for-sale | (60,158) | (33,040) | (69,987) |
Purchase of debt investment securities held-to-maturity | (4,381) | (6,486) | (125,324) |
Purchase of debt mortgage-backed securities held-to-maturity | 0 | 0 | (165,501) |
Purchase of equity investments | (214) | (191) | 0 |
Principal repayments on debt mortgage-backed securities available-for-sale | 503 | 655 | 0 |
Proceeds from maturities and calls of debt investment securities available-for-sale | 29,299 | 18,501 | 0 |
Proceeds from maturities and calls of debt investment securities held-to-maturity | 43,256 | 52,543 | 18,233 |
Principal repayments on debt mortgage-backed securities held-to-maturity | 123,833 | 119,125 | 96,383 |
Proceeds from Bank Owned Life Insurance | 870 | 2,708 | 624 |
Proceeds from the redemption of restricted equity investments | 122,535 | 106,807 | 19,738 |
Purchases of restricted equity investments | (127,794) | (127,048) | (20,149) |
Proceeds from sales of other real estate owned | 2,060 | 5,438 | 3,880 |
Proceeds from sales of assets held for sale | 2,353 | 10,050 | 0 |
Purchases of premises and equipment | (5,075) | (11,487) | (48,698) |
Cash held in escrow for acquisitions | (46,950) | ||
Cash consideration received (paid) for acquisition, net of cash received | 59,395 | (3,743) | |
Net cash (used in) provided by investing activities | (172,122) | 48,553 | (455,223) |
Cash flows from financing activities: | |||
Increase (decrease) in deposits | 65,687 | (143,025) | 155,849 |
Increase in short-term borrowings | 105,979 | 126,092 | 39,733 |
Proceeds from Federal Home Loan Bank advances | 80,000 | 0 | 10,000 |
Repayments of Federal Home Loan Bank advances | (106,618) | (67,155) | (1,922) |
Repayments of other borrowings | (263) | (439) | |
(Decrease) increase in advances by borrowers for taxes and insurance | (182) | 2,910 | (2,874) |
Exercise of stock options | 1,335 | 5,324 | 3,354 |
Payment of employee taxes withheld from stock awards | (2,858) | (3,295) | (1,522) |
Purchase of treasury stock | (26,066) | (10,837) | 0 |
Acquisition of common stock by ESOP | 0 | (8,400) | 0 |
Dividends paid | (34,241) | (29,564) | (19,286) |
Net cash provided by (used in) financing activities | 82,773 | (128,389) | 183,332 |
Net increase (decrease) in cash and due from banks and restricted cash | 10,898 | 12,715 | (191,760) |
Supplemental disclosure of cash flow information: | |||
Cash and due from banks and restricted cash at beginning of year | 122,328 | 109,613 | 301,373 |
Cash and due from banks at beginning of year | 120,792 | 109,613 | 301,373 |
Restricted cash at beginning of year | 1,536 | 0 | 0 |
Cash and due from banks at end of year | 120,544 | 120,792 | 109,613 |
Restricted cash at end of year | 12,682 | 1,536 | 0 |
Cash and due from banks and restricted cash at end of year | 133,226 | 122,328 | 109,613 |
Cash paid during the year for: | |||
Interest | 52,315 | 36,447 | 20,219 |
Income taxes | 20,006 | 2,317 | 6,008 |
Non cash Activities | |||
Accretion of unrealized loss on securities reclassified to held-to-maturity | 991 | 2,905 | 1,145 |
Net loan charge-offs | 1,361 | 2,634 | 3,907 |
Transfer of premises and equipment to assets held-for-sale | 2,189 | 11,092 | 5,729 |
Transfer of loans receivable to other real estate owned | 963 | 992 | 3,726 |
Non-cash assets acquired: | |||
Securities | 103,775 | 254,522 | 0 |
Restricted equity investments | 313 | 16,967 | 0 |
Loans | 307,778 | 1,517,345 | 0 |
Premises and equipment | 3,389 | 19,892 | 0 |
Accrued interest receivable | 1,390 | 5,621 | 0 |
Bank Owned Life Insurance | 10,460 | 85,238 | 0 |
Deferred tax asset | 3,967 | 57,574 | 0 |
Other assets | 1,278 | 6,343 | 0 |
Goodwill and other intangible assets, net | 38,875 | 199,838 | 0 |
Total non-cash assets acquired | 471,225 | 2,163,340 | 0 |
Liabilities assumed: | |||
Deposits | 449,018 | 1,616,073 | 0 |
Borrowings | 0 | 127,727 | 0 |
Other liabilities | 5,121 | 13,242 | 0 |
Total liabilities assumed | $ 454,139 | $ 1,757,042 | $ 0 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters Applicable regulations require the Bank to maintain minimum levels of regulatory capital. Under the regulations in effect at December 31, 2019 , the Bank was required to maintain a minimum ratio of Tier 1 capital to total adjusted assets of 4.0% ; a minimum ratio of common equity T ier 1 capital to risk-weighted assets of 7.0% ; a minimum ratio of Tier 1 capital to risk weighted assets of 8.5% ; and, a minimum ratio of total (core and supplementary) capital to risk-weighted assets of 10.5% . These ratios include the impact of the required capital conservation buffer. With its conversion to a bank holding company on January 31, 2018, the Company became subject to substantially similar consolidated capital requirements imposed by FRB regulation. Under the regulatory framework for prompt corrective action, Federal regulators are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution. Such actions could have a direct material effect on the institution’s financial statements. The regulations establish a framework for the classification of banking institutions into five categories: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Generally, an institution is considered well-capitalized if it has a Tier 1 capital ratio of 5.0% ; a common equity Tier 1 risk-based ratio of at least 6.5% ; a Tier 1 risk-based ratio of at least 8.0% ; and a total risk-based capital ratio of at least 10.0% . At December 31, 2019 and 2018 , the Company and the Bank exceeded all regulatory capital requirements currently applicable . The following is a summary of the Bank and the Company’s regulatory capital amounts and ratios as of December 31, 2019 and 2018 compared to the regulatory minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized institution then in effect (dollars in thousands): As of December 31, 2019 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 779,108 10.03 % $ 310,798 4.00 % $ 388,498 5.00 % Common equity Tier 1 (to risk-weighted assets) 779,108 12.98 420,106 7.00 (1) 390,099 6.50 Tier 1 capital (to risk-weighted assets) 779,108 12.98 510,129 8.50 (1) 480,121 8.00 Total capital (to risk-weighted assets) 797,339 13.29 630,159 10.50 (1) 600,152 10.00 OceanFirst Financial Corp: Tier 1 capital (to average assets) $ 791,746 10.17 % $ 311,289 4.00 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 729,095 12.14 420,273 7.00 (1) N/A N/A Tier 1 capital (to risk-weighted assets) 791,746 13.19 510,331 8.50 (1) N/A N/A Total capital (to risk-weighted assets) 844,977 14.07 630,409 10.50 (1) N/A N/A As of December 31, 2018 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 712,900 10.01 % $ 284,772 4.000 % $ 355,965 5.00 % Common equity Tier 1 (to risk-weighted assets) 712,900 13.39 339,513 6.375 (2) 346,170 6.50 Tier 1 capital (to risk-weighted assets) 712,900 13.39 419,398 7.875 (2) 426,056 8.00 Total capital (to risk-weighted assets) 730,484 13.72 525,912 9.875 (2) 532,570 10.00 OceanFirst Financial Corp: Tier 1 capital (to average assets) $ 709,972 9.96 % $ 285,199 4.000 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 647,773 12.15 339,791 6.375 (2) N/A N/A Tier 1 capital (to risk-weighted assets) 709,972 13.32 419,742 7.875 (2) N/A N/A Total capital (to risk-weighted assets) 762,556 14.31 526,343 9.875 (2) N/A N/A (1) Includes the Capital Conservation Buffer of 2.500% . (2) Includes the Capital Conservation Buffer of 1.875% . The Bank satisfies the criteria to be “well-capitalized” under the Prompt Corrective Action Regulations. The capital conservation buffer requirement has been phased in, incrementally, over the past four years beginning January 1, 2016. The phase in of the capital conservation buffer started at 0.625% on January 1, 2016, and increased to 1.25% on January 1, 2017, 1.875% on January 1, 2018, and 2.50% on January 1, 2019, when the full capital conservation buffer requirement became effective. Capital distributions and certain discretionary bonus payments are limited if the capital conservation buffer is not maintained. Applicable regulations also impose limitations upon capital distributions by the Company, such as dividends and payments to repurchase or otherwise acquire shares. The Company may not declare or pay cash dividends on or repurchase any of its shares of common stock if the effect thereof would cause stockholders’ equity to be reduced below applicable regulatory capital minimum requirements or if such declaration and payment would otherwise violate regulatory requirements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of OceanFirst Financial Corp. (the “Company”) and its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc., and the Bank’s wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., and its wholly-owned subsidiary OceanFirst Management Corp., and its wholly-owned subsidiary OceanFirst Realty Corp., OceanFirst Services, LLC and its wholly-owned subsidiary OFB Reinsurance, Ltd., Hooper Holdings, LLC., TRREO Holdings LLC, Casaba Real Estate Holdings Corporation, Cohensey Bridge, L.L.C., Prosperis Financial, LLC and CBNJ Investments Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts previously reported have been reclassified to conform to the current year’s presentation. Business The Bank provides a range of community banking services to customers through a network of branches and offices throughout New Jersey and the metropolitan areas of Philadelphia and New York City. The Bank is subject to competition from other financial institutions and certain technology companies; it is also subject to the regulations of certain regulatory agencies and undergoes periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The preparation of the accompanying consolidated financial statements in conformity with these accounting principles requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the evaluation of securities and goodwill for other-than-temporary impairment. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash Equivalents Cash equivalents consist of interest-bearing deposits in other financial institutions. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Securities Securities include debt securities held-to-maturity, and debt and equity securities available-for-sale. Management determines the appropriate classification at the time of purchase. If management has the positive intent not to sell and the Company would not be required to sell prior to maturity, the securities are classified as held-to-maturity debt securities. Such securities are stated at amortized cost. During 2013, the Company transferred $536.0 million of previously designated available-for-sale debt securities to held-to-maturity designation at estimated fair value. The Company has the ability and intent to hold these securities as an investment until maturity or call. The securities transferred had an unrealized loss of $13.3 million at the time of transfer which continues to be reflected in accumulated other comprehensive income, net of subsequent amortization, which is being recognized over the remaining life of the securities. Securities in the available-for-sale category are securities which the Company may sell prior to maturity as part of its asset/liability management strategy. Such securities are carried at estimated fair value and unrealized gains and losses, net of related tax effect, are excluded from earnings, but are included as a separate component of stockholders’ equity and as part of comprehensive income. Discounts and premiums on securities are accreted or amortized using the level-yield method over the estimated lives of the securities, including the effect of prepayments. Gains or losses on the sale of such securities are included in other income using the specific identification method. Other-Than-Temporary Impairment on Securities One of the significant estimates related to securities is the evaluation for other-than-temporary impairment. If a determination is made that a debt security is other-than-temporarily impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as an other-than-temporary impairment charge in non-interest income as a component of gain (loss) on securities, net. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income, net of tax. The evaluation of securities for impairment is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether declines in the estimated fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions, the issuer’s financial condition and/or future prospects, the effects of changes in interest rates or credit spreads and the expected recovery period. On a quarterly basis the Company evaluates the securities portfolio for other-than-temporary impairment. Securities that are in an unrealized loss position are reviewed to determine if an other-than-temporary impairment is present based on certain quantitative factors. The primary factors considered in evaluating whether a decline in value is other-than-temporary include: (a) the length of time and extent to which the estimated fair value has been less than cost or amortized cost and the expected recovery period of the security, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments and (d) whether the Company intends to sell the security and whether it is more likely than not that the Company will not be required to sell the security. Loans Receivable Loans receivable, other than loans held-for-sale, are stated at unpaid principal balance, plus unamortized premiums less unearned discounts, net of deferred loan origination and commitment fees and costs, and the allowance for loan losses. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income using the level-yield method over the contractual life of the specifically identified loans, adjusted for actual prepayments. For each loan class, a loan is considered past due when a payment has not been received in accordance with the contractual terms. Loans which are more than 90 days past due, including impaired loans, and other loans in the process of foreclosure are placed on non-accrual status. Interest income previously accrued on these loans, but not yet received, is reversed in the current period. Any interest subsequently collected is credited to income in the period of recovery only after the full principal balance has been brought current. A loan is returned to accrual status when all amounts due have been received and the remaining principal balance is deemed collectible. A loan is considered impaired when it is deemed probable that the Company will not collect all amounts due according to the contractual terms of the loan agreement. The Company has defined the population of impaired loans to be all non-accrual commercial real estate, multi-family, land, construction and commercial and industrial loans in excess of $250,000 . Impaired loans are individually assessed to determine that the loan’s carrying value is not in excess of the estimated fair value of the collateral or the present value of the loan’s expected future cash flows. Smaller balance homogeneous loans that are collectively evaluated for impairment, such as residential mortgage loans and consumer loans, are specifically excluded from the impaired loan portfolio, except when they are modified in a trouble debt restructuring. Loan losses are charged-off in the period the loans, or portion, thereof are deemed uncollectible, generally after the loan becomes 120 days delinquent. The Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated fair value of the underlying collateral, less cost to sell, if it is determined that it is probable that recovery will come primarily from the sale of the collateral. Purchased credit-impaired (“PCI”) loans are acquired at a discount that is due, in part, to credit quality. PCI loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Interest income on loans acquired at a discount is based on the acquired loans’ expected cash flows. The acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flow. The difference between the undiscounted cash flows expected at acquisition and the investment in the loans, or the “accretable yield”, is recognized as interest income utilizing the level-yield method over the life of each pool. Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment of the yield on the pool over its remaining life, while decreases in expected cash flows are recognized as impairment through a loss provision and an increase in the allowance for loan losses. Therefore, the allowance for loan losses on these impaired pools reflect only losses incurred after the acquisition (representing the present value of all cash flows that were expected at acquisition but currently are not expected to be received). The Bank periodically evaluates the remaining contractual required payments due and estimates of cash flows expected to be collected. These evaluations require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Changes in the contractually required payments due and estimated cash flows expected to be collected may result in changes in the accretable yield and non-accretable difference or reclassifications between accretable yield and the non-accretable difference. For the pools with better than expected cash flows, the forecasted increase is recorded as an additional accretable yield that is recognized as a prospective increase to interest income on loans. Loans Held for Sale The Company may sell part of its mortgage loan originations in order to manage interest rate risk and liquidity. Prior to 2017, the Bank had generally sold fixed-rate mortgage loans with final maturities in excess of 15 years . However, with few exceptions, since the beginning of 2017 and through 2019, the Bank generally retained newly originated mortgage loans in its portfolio. Given the recent decline in the interest rate environment, the Bank will evaluate the portfolio for potential sales in the future. In determining whether to retain mortgages, management considers the Company’s overall interest rate risk position, the volume of such loans, the loan yield and the types and amount of funding sources. The Company may also retain mortgage loan production in order to improve yields and increase balance sheet leverage. In addition, management periodically considers the sale of commercial and other loans as part of its management of credit risk. Loans held for sale are carried at the lower of unpaid principal balance, net, or estimated fair value on an aggregate basis. Estimated fair value is determined based on bid quotations from securities dealers. Allowance for Loan Losses The allowance for loan losses is a valuation account that reflects probable incurred losses in the loan portfolio. The adequacy of the allowance for loan losses is based on management’s evaluation of the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic and regulatory conditions, as well as organizational changes. Additions to the allowance arise from charges to operations through the provision for loan losses or from the recovery of amounts previously charged-off. The allowance is reduced by loan charge-offs. The allowance for loan losses is maintained at an amount management considers sufficient to provide for probable losses. A cquired loans are marked to fair value on the date of acquisition and are evaluated on a quarterly basis to ensure the necessary purchase accounting updates are made in parallel with the allowance for loan loss calculation. Acquired loans that have been renewed since acquisition are included in the allowance for loan loss calculation since these loans have been underwritten to the Bank’s guidelines. Acquired loans that have not been renewed since acquisition, or that have a PCI mark, are excluded from the allowance for loan loss calculation. The Bank calculates a general valuation allowance for these excluded acquired loans without a PCI mark and compares that to the remaining general credit and interest rate marks. To the extent the remaining general credit and interest rate marks exceed the calculated general valuation allowance, no additional reserve is required. If the calculated general valuation allowance exceeds the remaining general credit and interest rate marks, the Bank would record an adjustment to the extent necessary. The Bank’s allowance for loan losses includes specific allowances and a general allowance, each updated on a quarterly basis. A specific allowance is determined for all impaired loans (excluding PCI loans). The Bank defines an impaired loan as all non-accrual commercial real estate, multi-family, land, construction and commercial loans in excess of $250,000 for which it is probable, based on current information, that the Company will not collect all amounts due under the contractual terms of the loan agreement. Impaired loans also include all loans modified as troubled debt restructurings. For collateral dependent loans, the specific allowance represents the difference between the Bank’s recorded investment in the loan, net of any interim charge-offs, and the estimated fair value of the collateral, less estimated selling costs. Impairment for all other impaired loans is calculated based on a combination of the estimated fair value of non-real estate collateral, personal guarantees, or the present value of the expected future cash flows. Generally, for collateral dependent real estate loans, the Bank obtains an updated collateral appraisal once the loan is impaired. For impaired residential real estate loans, the appraisal is generally updated annually if the loan remains delinquent for an extended period. For impaired commercial real estate loans, the Bank assesses whether there has likely been an adverse change in the collateral value supporting the loan. The Bank utilizes information based on its knowledge of changes in real estate conditions in its lending area to identify whether a possible deterioration of collateral value has occurred. Based on the severity of the changes in market conditions, management determines if an updated commercial real estate appraisal is warranted or if downward adjustments to the previous appraisal are warranted. If it is determined that the deterioration of the collateral value is significant enough to warrant ordering a new appraisal, an estimate of the downward adjustments to the existing appraised value is used in assessing if additional specific reserves are necessary until the updated appraisal is received. A general allowance is determined for all loans that are not individually evaluated for impairment (excluding acquired loans that have not been renewed under the Bank’s underwriting criteria). In determining the level of the general allowance, the Bank segments the loan portfolio into the following portfolio segments: residential real estate; consumer; investor-owned commercial real estate; owner-occupied commercial real estate; construction and land; and commercial and industrial. The portfolio segments are further segmented by delinquency status or risk rating. An estimated loss factor is then applied to the outstanding principal loan balance of the delinquency status or risk rating category for each portfolio segment. To determine the loss factor, the Bank utilizes historical loss experience adjusted for certain qualitative factors and the loss emergence period. The Bank’s historical loss experience is based on a rolling 36 -month look-back period for each portfolio segment. The look-back period was selected based on (1) management’s judgment that this period captures sufficient loss events (in both dollar terms and number of individual events) to be relevant; and (2) that the Bank’s underwriting criteria and risk characteristics have remained relatively stable throughout this period. The historical loss experience is adjusted for certain qualitative factors including, but not limited to, (1) delinquency trends, (2) net charge-off trends, (3) nature and volume of the loan portfolio, (4) loan policies and underwriting standards, (5) experience and ability of lending personnel, (6) concentrations of credit, (7) loan review system, and external factors such as (8) changes in current economic conditions, (9) local competition and (10) regulation. Economic factors that the Bank considers in its estimate of the allowance for loan losses include: local and regional trends in economic growth, unemployment and real estate values. The Bank considers the applicability of each of these qualitative factors in estimating the general allowance for each portfolio segment. Each quarter, the Bank considers the current conditions for each of the qualitative factors, as well as a forward looking view on trends and events, to support an assessment unique to each portfolio segment. The Bank calculates and analyzes the loss emergence period on an annual basis or more frequently if conditions warrant. The Bank’s methodology is to use loss events in the past 12 quarters to determine the loss emergence period for each loan segment. The loss emergence period is specific to each portfolio segment. It represents the amount of time that has elapsed between (1) the occurrence of a loss event, which resulted in a potential loss and (2) the confirmation of the potential loss, when the Bank records an initial charge-off or downgrades the risk-rating of the loan to substandard. The Bank also maintains an unallocated portion of the allowance for loan losses. The primary purpose of the unallocated component is to account for the inherent factors that cannot be practically assigned to individual loss categories, including the periodic update of appraisals, subjectivity of the Bank’s credit review and risk rating process, and economic conditions that may not be fully captured in the Bank’s loss history or qualitative factors. Upon completion of the aforementioned procedures, an overall management review is performed including ratio analyses to identify divergent trends compared with the Bank’s own historical loss experience, the historical loss experience of the Bank’s peer group and management’s understanding of general regulatory expectations. Based on that review, management may identify issues or factors that previously had not been considered in the estimation process, which may warrant further analysis or adjustments to estimated loss or qualitative factors applied in the calculation of the allowance for loan losses. Reserve for Repurchased Loans and Loss Sharing Obligations The reserve for repurchased loans and loss sharing obligations relates to potential losses on loans sold which may have to be repurchased due to a violation of representations and warranties and an estimate of the Bank’s obligation under a loss sharing arrangement for loans sold to the Federal Home Loan Bank (“FHLB”) as well as the potential repair requests for guaranteed loans sold to the Small Business Administration (“SBA”). Provisions for losses are charged to gain on sale of loans and credited to the reserve while actual losses are charged to the reserve. The reserve represents the Company’s estimate of the total losses expected to occur and is considered to be adequate by management based upon the Company’s evaluation of the potential exposure related to the loan sale agreements over the period of repurchase risk. The reserve for repurchased loans and loss sharing obligations is included in other liabilities on the Company’s consolidated statement of financial condition as well as SBA repair requests. Other Real Estate Owned Other real estate owned (“OREO”) is carried at the lower of cost or estimated fair value, less estimated costs to sell. When a property is acquired, the excess of the loan balance over estimated fair value is charged to the allowance for loan losses. Operating results from other real estate owned, including rental income, operating expenses, gains and losses realized from the sales of other real estate owned and subsequent write-downs are recorded as incurred. Premises and Equipment Land is carried at cost and premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation and amortization or, in the case of acquired premises, the value on the acquisition date. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or leases. Generally, depreciable lives are as follows: computer equipment: 3 years ; furniture, fixtures and other electronic equipment: 5 years ; building improvements: 10 years ; and buildings: 30 years . Repair and maintenance items are expensed and improvements are capitalized. Gains and losses on dispositions are reflected in current operations. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Any interest and penalties on taxes payable are included as part of the provision for income taxes. Comprehensive Income Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes items recorded directly in equity, such as unrealized gains or losses on debt securities available-for-sale and accretion of unrealized loss on debt securities reclassified to held-to-maturity. Bank Owned Life Insurance Bank Owned Life Insurance (“BOLI”) is accounted for using the cash surrender value method and is recorded at its realizable value. Part of the Company’s BOLI is invested in a separate account insurance product which is invested in a fixed income portfolio. The separate account includes stable value protection which maintains realizable value at book value with investment gains and losses amortized over future periods. Increases in cash surrender value are included in other non-interest income, while proceeds from death benefits are generally recorded as a reduction to the carrying value. Intangible Assets Intangible assets resulting from acquisitions under the acquisition method of accounting consist of goodwill and core deposit intangible. Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions. 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. 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 August 31, 2019 . Based upon its qualitative assessment of goodwill, the Company concluded that goodwill was not impaired and no further quantitative analysis was warranted. Segment Reporting The Company’s operations are solely in the financial services industry and include providing traditional banking and other financial services to its customers. The Company operates throughout New Jersey and the metropolitan areas of Philadelphia and New York City . Management makes operating decisions and assesses performance based on an ongoing review of the Bank’s consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding plus potential common stock, utilizing the treasury stock method. All share amounts exclude unallocated shares of stock held by the Employee Stock Ownership Plan (“ESOP”) and the 2006 and 2011 Incentive Plans (refer to Note 12 Incentive Plan, for further discussion). Impact of New Accounting Pronouncements Accounting Pronouncements Adopted in 2019 In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach may be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements On July 30, 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements”, which provided an option to apply the transition provisions of the new standard at the adoption date rather than the earliest comparative period presented. Additionally, the ASU provides a practical expedient permitting lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company adopted this ASU in its entirety on January 1, 2019, and has appropriately reflected the changes throughout the Company’s consolidated financial statements. The Company elected to apply the new standard as of the adoption date and will not restate comparative prior periods. Additionally, the Company elected to apply the package of practical expedients standard under which the Company need not reassess whether any expired or existing contracts are leases or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The adoption of this ASU resulted in the recognition of a right-of-use asset of $20.6 million in other assets and a lease liability of $20.7 million in other liabilities. Refer to Note 17 Leases, for additional information. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” This ASU requires the amortization of premiums to the earliest call date on debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates. This ASU does not impact securities held as a discount, as the discount continues to be amortized to the contractual maturity. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this update did not have an impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU was issued to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. As a result, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Current GAAP contains limitations on how an entity can designate the hedged risk in certain cash flow and fair value hedging relationships. To address those current limitations, the amendments in this ASU permit hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk. In addition, the amendments in this ASU change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption was permitted. The Company does not enter into derivatives that are designated as hedging instruments and as such, the adoption of this ASU did not have an impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the newly enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. The Company has early adopte |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations As a result of the following acquisitions and the acquisitions of Two River Bancorp (“Two River”) and Country Bank Holding Company, Inc. (“Country Bank”), which closed on January 1, 2020, the Company incurred merger related expenses of $10.5 million , $26.9 million , and $8.3 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Refer to Note 19 Subsequent Events, for additional information related to the Two River and Country Bank acquisitions. The following table summarizes the merger related expenses for the years ended December 31, 2019 , 2018 and 2017 is as follows: For the Year Ended December 31, 2019 2018 2017 (in thousands) Data processing fees $ 2,514 $ 6,017 $ 3,956 Professional fees 4,239 4,414 2,771 Employee severance payments 2,942 15,660 1,177 Other/miscellaneous fees 808 820 389 Merger related expenses $ 10,503 $ 26,911 $ 8,293 Capital Bank of New Jersey Acquisition On January 31, 2019, the Company completed its acquisition of Capital Bank of New Jersey (“Capital Bank”), which after purchase accounting adjustments added $494.8 million to assets, $307.8 million to loans, and $449.0 million to deposits. Total consideration paid for Capital Bank was $76.8 million , including cash consideration of $353,000 . Capital Bank was merged with and into the Company on the date of acquisition. The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired has been recorded as goodwill. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Capital Bank, net of total consideration paid (in thousands): At January 31, 2019 Estimated Total Purchase Price: $ 76,834 Assets acquired: Cash and cash equivalents $ 59,748 Securities 103,775 Loans 307,778 Accrued interest receivable 1,390 Bank Owned Life Insurance 10,460 Deferred tax asset 3,967 Other assets 4,980 Core deposit intangible 2,662 Total assets acquired 494,760 Liabilities assumed: Deposits (449,018 ) Other liabilities (5,121 ) Total liabilities assumed (454,139 ) Net assets acquired $ 40,621 Goodwill recorded in the merger $ 36,213 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. As the Company finalizes its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values may be required. Sun Bancorp. Inc Acquisition On January 31, 2018, the Company completed its acquisition of Sun Bancorp, Inc. (“Sun”), which after purchase accounting adjustments, added $2.0 billion to assets, $1.5 billion to loans, and $1.6 billion to deposits. Total consideration paid for Sun was $474.9 million , including cash consideration of $72.4 million . Sun was merged with and into the Company on the date of acquisition. The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired has been recorded as goodwill. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Sun, net of the total consideration paid (in thousands): At January 31, 2018 Fair Value Total Purchase Price: $ 474,930 Assets acquired: Cash and cash equivalents $ 68,632 Securities 254,522 Loans 1,517,345 Accrued interest receivable 5,621 Bank Owned Life Insurance 85,238 Deferred tax asset 57,597 Other assets 43,202 Core deposit intangible 11,897 Total assets acquired 2,044,054 Liabilities assumed: Deposits (1,616,073 ) Borrowings (127,727 ) Other liabilities (13,242 ) Total liabilities assumed (1,757,042 ) Net assets acquired $ 287,012 Goodwill recorded in the merger $ 187,918 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. On January 31, 2019, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. Supplemental Pro Forma Financial Information The following table presents financial information regarding the former Sun operations included in the Consolidated Statements of Income from the date of the acquisition (January 31, 2018) through December 31, 2018 and regarding the former Capital Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 31, 2019) through December 31, 2019. In addition, the table provides condensed pro forma financial information assuming the Sun and Capital Bank acquisitions had been completed as of January 1, 2017, for the year ended December 31, 2017 , and January 1, 2018 for the year ended December 31, 2018. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisitions occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of Sun’s and Capital Bank’s operations. The pro forma information shown reflects adjustments related to certain purchase ac counting fair value adjustments; amortization of core deposit and other intangibles; and related income tax effects. Capital Bank Actual from January 31, 2019 to December 31, 2019 Sun Actual from January 31, 2018 to December 31, 2018 Pro forma Pro forma Pro forma (in thousands, except per share amounts) (Unaudited) Net interest income $ 17,090 $ 63,889 $ 257,703 $ 266,014 $ 260,520 Provision for loan losses 385 1,215 1,636 3,070 3,239 Non-interest income 1,456 7,961 42,277 37,554 40,914 Non-interest expense 12,482 35,184 190,934 214,713 201,605 Provision for income taxes 1,193 7,090 18,798 15,100 26,111 Net income $ 4,486 $ 28,361 $ 88,612 $ 70,685 $ 70,479 Fully diluted earnings per share $ 1.74 $ 1.36 $ 1.37 Core Deposit Intangible The estimated future amortization expense for the core deposit intangible over the next five years is as follows (in thousands): For the Year Ended December 31, Amortization Expense 2020 $ 3,596 2021 3,121 2022 2,646 2023 2,171 2024 1,695 Thereafter 2,378 Total $ 15,607 Fair Value Measurement of Assets Acquired and Liabilities Assumed The methods used to determine the fair value of the assets acquired and liabilities assumed in the Sun and Capital Bank acquisitions were as follows. Refer to Note 15 Fair Value Measurements, for a discussion of the fair value hierarchy. Securities The estimated fair values of the securities were calculated utilizing Level 2 inputs. The securities acquired are bought and sold in active markets. Prices for these instruments were obtained through security industry sources that actively participate in the buying and selling of securities. Loans The acquired loan portfolio was valued utilizing Level 3 inputs and included the use of present value techniques employing cash flow estimates and incorporated assumptions that marketplace participants would use in estimating fair values. In instances where reliable market information was not available, the Company used its own assumptions in an effort to determine reasonable fair value. Specifically, the Company utilized three separate fair value analyses which a market participant would employ in estimating the total fair value adjustment. The three separate fair valuation methodologies used were: (1) interest rate loan fair value analysis; (2) general credit fair value adjustment; and (3) specific credit fair value adjustment. To prepare the interest rate fair value analysis, loans were grouped by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various external data sources and reviewed by Company management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value adjustment. The general credit fair value adjustment was calculated using a two part general credit fair value analysis: (1) expected lifetime losses and (2) estimated fair value adjustment for qualitative factors. The expected lifetime losses were calculated using an average of historical losses of the acquired bank. The adjustment related to qualitative factors was impacted by general economic conditions and the risk related to lack of experience with the originator’s underwriting process. To calculate the specific credit fair value adjustment, the Company reviewed the acquired loan portfolio for loans meeting the definition of an impaired loan with deteriorated credit quality. Loans meeting these criteria were reviewed by comparing the contractual cash flows to expected collectible cash flows. The aggregate expected cash flows less the acquisition date fair value resulted in an accretable yield amount which will be recognized over the life of the loans on a level yield basis as an adjustment to yield. Premises and Equipment Fair values are based upon appraisals from independent third parties. In addition to owned properties, Sun operated twenty one properties subject to lease agreements, and Capital Bank operated one property subject to a lease agreement. Deposits and Core Deposit Premium Core deposit premium represents the value assigned to non-interest-bearing demand deposits, interest-bearing checking, money market and saving accounts acquired as part of the acquisition. The core deposit premium value represents the future economic benefit, including the present value of future tax benefits, of the potential cost saving from acquiring the core deposits as part of an acquisition compared to the cost of alternative funding sources and is valued utilizing Level 2 inputs. The core deposit premium totaled $11.9 million and $2.7 million , for the acquisitions of Sun and Capital Bank, respectively, and is being amortized over its estimated useful life of approximately 10 years using an accelerated method. Time deposits are not considered to be core deposits as they are assumed to have a low expected average life upon acquisition. The fair value of time deposits represents the present value of the expected contractual payments discounted by market rates for similar time deposits and is valued utilizing Level 2 inputs. Borrowings |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity at December 31, 2019 and 2018 are as follows (in thousands): Amortized Gross Gross Estimated At December 31, 2019 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 149,120 $ 1,408 $ (93 ) $ 150,435 State and municipal obligations 25 — — 25 Total investment securities 149,145 1,408 (93 ) 150,460 Mortgage-backed securities - FNMA 495 5 — 500 Total debt securities available-for-sale $ 149,640 $ 1,413 $ (93 ) $ 150,960 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 4,984 $ 14 $ — $ 4,998 State and municipal obligations 124,430 1,537 (208 ) 125,759 Corporate debt securities 79,547 833 (2,421 ) 77,959 Total investment securities 208,961 2,384 (2,629 ) 208,716 Mortgage-backed securities: FHLMC 206,985 2,221 (524 ) 208,682 FNMA 244,428 2,680 (493 ) 246,615 GNMA 110,661 939 (212 ) 111,388 SBA 1,940 — (51 ) 1,889 Total mortgage-backed securities 564,014 5,840 (1,280 ) 568,574 Total debt securities held-to-maturity $ 772,975 $ 8,224 $ (3,909 ) $ 777,290 Total debt securities $ 922,615 $ 9,637 $ (4,002 ) $ 928,250 At December 31, 2018 Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 100,524 $ 163 $ (963 ) $ 99,724 Mortgage-backed securities - FNMA 998 — (5 ) 993 Total debt securities available-for-sale $ 101,522 $ 163 $ (968 ) $ 100,717 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 14,975 $ — $ (130 ) $ 14,845 State and municipal obligations 123,987 67 (1,697 ) 122,357 Corporate debt securities 66,834 126 (4,984 ) 61,976 Total investment securities 205,796 193 (6,811 ) 199,178 Mortgage-backed securities: FHLMC 237,703 159 (5,110 ) 232,752 FNMA 277,266 753 (6,030 ) 271,989 GNMA 127,611 198 (2,360 ) 125,449 SBA 3,527 — (80 ) 3,447 Total mortgage-backed securities 646,107 1,110 (13,580 ) 633,637 Total debt securities held-to-maturity $ 851,903 $ 1,303 $ (20,391 ) $ 832,815 Total debt securities $ 953,425 $ 1,466 $ (21,359 ) $ 933,532 During the third quarter 2013, the Bank transferred $536.0 million of previously designated available-for-sale debt securities to a held-to-maturity designation at estimated fair value. The securities transferred had an unrealized net loss of $13.3 million at the time of transfer which continues to be reflected in accumulated other comprehensive loss on the consolidated balance sheet, net of subsequent amortization, which is being recognized over the life of the securities. The carrying value of the debt securities held-to-maturity at December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 2018 Amortized cost $ 772,975 $ 851,903 Net loss on date of transfer from available-for-sale (13,347 ) (13,347 ) Accretion of net unrealized loss on securities reclassified as held-to-maturity 9,245 8,254 Carrying value $ 768,873 $ 846,810 Realized gains were $0 and $248,000 for the year ended December 31, 2019 and 2018, respectively. The amortized cost and estimated fair value of investment securities at December 31, 2019 by contractual maturity, are shown below (in thousands). Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2019 , corporate debt securities with an amortized cost and estimated fair value of $59.4 million and $57.4 million , respectively, were callable prior to the maturity date. December 31, 2019 Amortized Estimated Less than one year $ 69,635 $ 69,723 Due after one year through five years 203,081 205,520 Due after five years through ten years 71,590 70,118 Due after ten years 13,800 13,815 $ 358,106 $ 359,176 Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments. The estimated fair value of securities pledged as required security for deposits and for other purposes required by law amounted to $475.6 million and $563.1 million , at December 31, 2019 and 2018 , respectively, including $81.4 million and $74.1 million at December 31, 2019 and 2018 , respectively, pledged as collateral for securities sold under agreements to repurchase. The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at December 31, 2019 and December 31, 2018 , segregated by the duration of the unrealized losses, are as follows (in thousands): As of December 31, 2019 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 25,021 $ (54 ) $ 22,451 $ (39 ) $ 47,472 $ (93 ) Total debt securities available-for-sale 25,021 (54 ) 22,451 (39 ) 47,472 (93 ) Debt securities held-to-maturity: Investment securities: State and municipal obligations 7,308 (58 ) 14,531 (150 ) 21,839 (208 ) Corporate debt securities 9,727 (213 ) 37,628 (2,208 ) 47,355 (2,421 ) Total investment securities 17,035 (271 ) 52,159 (2,358 ) 69,194 (2,629 ) Mortgage-backed securities: FHLMC 6,329 (29 ) 38,641 (495 ) 44,970 (524 ) FNMA 13,682 (59 ) 38,568 (434 ) 52,250 (493 ) GNMA 30,268 (93 ) 19,828 (119 ) 50,096 (212 ) SBA — — 1,889 (51 ) 1,889 (51 ) Total mortgage-backed securities 50,279 (181 ) 98,926 (1,099 ) 149,205 (1,280 ) Total debt securities held-to-maturity 67,314 (452 ) 151,085 (3,457 ) 218,399 (3,909 ) Total debt securities $ 92,335 $ (506 ) $ 173,536 $ (3,496 ) $ 265,871 $ (4,002 ) As of December 31, 2018 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 985 $ (3 ) $ 66,438 $ (960 ) $ 67,423 $ (963 ) Mortgage-backed securities - FNMA 993 (5 ) — — 993 (5 ) Total debt securities available-for-sale 1,978 (8 ) 66,438 (960 ) 68,416 (968 ) Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations — — 14,845 (130 ) 14,845 (130 ) State and municipal obligations 2,856 (4 ) 106,073 (1,693 ) 108,929 (1,697 ) Corporate debt securities 2,470 (21 ) 43,059 (4,963 ) 45,529 (4,984 ) Total investment securities 5,326 (25 ) 163,977 (6,786 ) 169,303 (6,811 ) Mortgage-backed securities: FHLMC 46,615 (159 ) 147,763 (4,951 ) 194,378 (5,110 ) FNMA 27,594 (125 ) 185,328 (5,905 ) 212,922 (6,030 ) GNMA 35,221 (535 ) 59,468 (1,825 ) 94,689 (2,360 ) SBA 3,447 (80 ) — — 3,447 (80 ) Total mortgage-backed securities 112,877 (899 ) 392,559 (12,681 ) 505,436 (13,580 ) Total debt securities held-to-maturity 118,203 (924 ) 556,536 (19,467 ) 674,739 (20,391 ) Total debt securities $ 120,181 $ (932 ) $ 622,974 $ (20,427 ) $ 743,155 $ (21,359 ) At December 31, 2019 , the amortized cost, estimated fair value and credit rating of the individual corporate debt securities in an unrealized loss position for greater than one year are as follows (in thousands): As of December 31, 2019 Security Description Amortized Cost Estimated Credit Rating Chase Capital $ 10,000 $ 9,632 Baa1/BBB- Wells Fargo Capital 5,000 4,744 A1/BBB Huntington Capital 5,000 4,500 Baa2/BB+ Keycorp Capital 5,000 4,625 Baa2/BB+ PNC Capital 5,000 4,700 Baa1/BBB- State Street Capital 3,332 3,199 A3/BBB SunTrust Capital 5,000 4,725 Not Rated/BBB- Southern Company 1,504 1,503 Baa2/BBB+ $ 39,836 $ 37,628 At December 31, 2019 , the estimated fair value of each of the above corporate debt securities was below cost. The Company concluded that these corporate debt securities were only temporarily impaired at December 31, 2019 . In concluding that the impairments were only temporary, the Company considered several factors in its analysis. The Company noted that each issuer made all the contractually due payments when required. There were no defaults on principal or interest payments and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the Company does not intend to sell these corporate debt securities and it is more likely than not that the Company will not be required to sell the securities. Historically, the Company has not utilized securities sales as a source of liquidity. The Company’s long range liquidity plans indicate adequate sources of liquidity outside the securities portfolio. The mortgage-backed securities are issued and guaranteed by either the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”), or the Small Business Administration (“SBA”), corporations which are chartered by the United States Government and whose debt obligations are typically rated AA+ by one of the internationally-recognized credit rating services. The Company considers the unrealized losses to be the result of changes in interest rates which over time can have both a positive and negative impact on the estimated fair value of the mortgage-backed securities. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost. As a result, the Company concluded that these securities were only temporarily impaired at December 31, 2019 . State and municipal obligations are securities issued by state and local governments for various purposes. The Company is not aware of any information subsequent to the purchase of any state and municipal obligation that indicates an inability on the part of an issuer to meet all of its financial commitments. The weighted average credit rating of these securities is Aa/AA with no credit rating below A3/A-. The Company has the ability and stated intention to hold these securities to maturity at which time the Company expects to receive full repayment. Current unrealized losses are considered to be the result of changes in interest rates which over time can have both a positive and negative impact on the estimated fair value of the securities. As a result, the Company concluded that these securities were only temporarily impaired as of December 31, 2019 . |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans Receivable, Net | Loans Receivable, Net Loans receivable, net, at December 31, 2019 and 2018 consisted of the following (in thousands): December 31, 2019 2018 Commercial: Commercial and industrial $ 396,091 $ 304,994 Commercial real estate - owner occupied 791,941 740,375 Commercial real estate - investor 2,284,698 2,015,210 Total commercial 3,472,730 3,060,579 Consumer: Residential real estate 2,320,821 2,044,286 Home equity loans and lines 318,414 353,386 Other consumer 89,422 121,561 Total consumer 2,728,657 2,519,233 6,201,387 5,579,812 Purchased credit impaired (“PCI”) loans 13,265 8,901 Total loans 6,214,652 5,588,713 Deferred origination costs, net 9,880 7,086 Allowance for loan losses (16,852 ) (16,577 ) Loans receivable, net $ 6,207,680 $ 5,579,222 The Bank’s eligible mortgage loans are pledged to secure FHLB advances. At December 31, 2019 the Bank pledged $3.851 billion of eligible mortgage loans to secure FHLB advances. An analysis of the allowance for loan losses for the years ended December 31, 2019 , 2018 and 2017 is as follows (in thousands): At or For the Year Ended December 31, 2019 2018 2017 Balance at beginning of year $ 16,577 $ 15,721 $ 15,183 Provision charged to operations 1,636 3,490 4,445 Charge-offs (2,804 ) (3,841 ) (5,384 ) Recoveries 1,443 1,207 1,477 Balance at end of year $ 16,852 $ 16,577 $ 15,721 The following table present s an analysis of the allowance for loan losses for the years ended December 31, 2019 and 2018 , the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018 excluding PCI loans (in thousands): Commercial Commercial Real Estate - Owner Occupied Commercial Real Estate - Investor Residential Consumer Unallocated Total For the year ended December 31, 2019 Allowance for loan losses: Balance at beginning of year $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Provision (benefit) charged to operations (311 ) 947 638 792 567 (997 ) 1,636 Charge-offs — (663 ) (236 ) (1,299 ) (606 ) — (2,804 ) Recoveries 160 332 711 96 144 — 1,443 Balance at end of year $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 For the year ended December 31, 2018 Allowance for loan losses: Balance at beginning of year $ 1,801 $ 3,175 $ 7,952 $ 1,804 $ 614 $ 375 $ 15,721 Provision (benefit) charged to operations (66 ) (783 ) 2,550 1,056 86 647 3,490 Charge-offs (230 ) (314 ) (1,939 ) (1,021 ) (337 ) — (3,841 ) Recoveries 104 199 207 574 123 — 1,207 Balance at end of year $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 December 31, 2019 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ 474 $ — $ — $ 2 $ — $ 476 Collectively evaluated for impairment 1,458 2,419 9,883 2,002 589 25 16,376 Total ending allowance balance $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Loans: Loans individually evaluated for impairment $ 243 $ 6,163 $ 5,584 $ 11,009 $ 3,511 $ — $ 26,510 Loans collectively evaluated for impairment 395,848 785,778 2,279,114 2,309,812 404,325 — 6,174,877 Total ending loan balance $ 396,091 $ 791,941 $ 2,284,698 $ 2,320,821 $ 407,836 $ — $ 6,201,387 December 31, 2018 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,609 2,277 8,770 2,413 486 1,022 16,577 Total ending allowance balance $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Loans: Loans individually evaluated for impairment $ 1,626 $ 5,395 $ 9,738 $ 10,064 $ 2,974 $ — $ 29,797 Loans collectively evaluated for impairment 303,368 734,980 2,005,472 2,034,222 471,973 — 5,550,015 Total ending loan balance $ 304,994 $ 740,375 $ 2,015,210 $ 2,044,286 $ 474,947 $ — $ 5,579,812 A summary of impaired loans at December 31, 2019 and 2018 is as follows, excluding PCI loans (in thousands): December 31, 2019 2018 Impaired loans with no allocated allowance for loan losses $ 24,313 $ 29,797 Impaired loans with allocated allowance for loan losses 2,197 — $ 26,510 $ 29,797 Amount of the allowance for loan losses allocated $ 476 $ — The Company defines an impaired loan as a non-accrual commercial real estate, multi-family, land, construction and commercial loan in excess of $250,000 for which it is probable, based on current information, that the Company will not collect all amounts due under the contractual terms of the loan agreement. Impaired loans also include all loans modified as troubled debt restructurings. At December 31, 2019 , the impaired loan portfolio totaled $26.5 million , for which there was $476,000 specific allocation in the allowance for loan losses. At December 31, 2018 , the impaired loan portfolio totaled $29.8 million , for which there was no specific allocation in the allowance for loan losses. The average balance of impaired loans for the years ended December 31, 2019 , 2018 and 2017 was $29.4 million , $38.1 million , and $39.8 million , respectively. If interest income on non-accrual loans and impaired loans had been current in accordance with their original terms, ap proximately $372,000 , $419,000 , and $639,000 of interest income for the years ended December 31, 2019 , 2018 and 2017 , respec tively, would have been recorded. At December 31, 2019 , impaired loans include troubled debt restructured (“TDR”) loans of $24.6 million , of which $18.0 million were performing in accordance with their restructured terms for a minimum of six months and were accruing interest. At December 31, 2018 impaired loans include troubled debt restructured loans of $26.5 million , of which $22.9 million were performing in accordance with their restructured terms for a minimum of six months and were accruing interest. The summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2019 and 2018 and for the years ended December 31, 2019 and 2018 is as follows, excluding PCI loans (in thousands): Unpaid Recorded Allowance for At December 31, 2019 With no related allowance recorded: Commercial and industrial $ 265 $ 243 $ — Commercial real estate – owner occupied 4,062 3,968 — Commercial real estate – investor 6,665 5,584 — Residential real estate 11,009 11,009 — Consumer 3,734 3,509 — $ 25,735 $ 24,313 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied 2,376 2,195 474 Commercial real estate – investor — — — Residential real estate — — — Consumer 2 2 2 $ 2,378 $ 2,197 $ 476 At December 31, 2018 With no related allowance recorded: Commercial and industrial $ 1,750 $ 1,626 $ — Commercial real estate – owner occupied 5,413 5,395 — Commercial real estate – investor 12,633 9,738 — Residential real estate 10,441 10,064 — Consumer 3,301 2,974 — $ 33,538 $ 29,797 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied — — — Commercial real estate – investor — — — Residential real estate — — — Consumer — — — $ — $ — $ — (continued) For the Year Ended December 31, 2019 2018 Average Interest Average Interest With no related allowance recorded: Commercial and industrial $ 523 $ 5 $ 1,075 $ 107 Commercial real estate – owner occupied 4,171 179 8,264 297 Commercial real estate – investor 9,012 222 13,934 382 Residential real estate 10,275 548 10,787 475 Consumer 3,275 178 2,764 155 $ 27,256 $ 1,132 $ 36,824 $ 1,416 With an allowance recorded: Commercial and industrial $ — $ — $ 589 $ — Commercial real estate – owner occupied 2,173 138 — — Commercial real estate – investor — — 670 — Residential real estate — — — — Consumer — — — — $ 2,173 $ 138 $ 1,259 $ — The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of December 31, 2019 and 2018 , excluding PCI loans (in thousands): December 31, 2019 2018 Commercial and industrial $ 207 $ 1,587 Commercial real estate – owner occupied 4,811 501 Commercial real estate – investor 2,917 5,024 Residential real estate 7,181 7,389 Consumer 2,733 2,914 $ 17,849 $ 17,415 At December 31, 2019 , there were no commitments to lend additional funds to borrowers whose loans are in non-accrual status. The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 and 2018 by loan portfolio segment, excluding PCI loans (in thousands): 30-59 60-89 90 Days or Greater Total Loans Not Total December 31, 2019 Commercial and industrial $ 100 $ — $ 207 $ 307 $ 395,784 $ 396,091 Commercial real estate – owner occupied 1,541 1,203 1,040 3,784 788,157 791,941 Commercial real estate – investor 381 938 2,792 4,111 2,280,587 2,284,698 Residential real estate 8,161 3,487 2,859 14,507 2,306,314 2,320,821 Consumer 1,048 491 2,388 3,927 403,909 407,836 $ 11,231 $ 6,119 $ 9,286 $ 26,636 $ 6,174,751 $ 6,201,387 December 31, 2018 Commercial and industrial $ — $ — $ — $ — $ 304,994 $ 304,994 Commercial real estate – owner occupied 5,104 236 197 5,537 734,838 740,375 Commercial real estate – investor 3,979 2,503 2,461 8,943 2,006,267 2,015,210 Residential real estate 10,199 4,979 4,451 19,629 2,024,657 2,044,286 Consumer 2,200 955 2,464 5,619 469,328 474,947 $ 21,482 $ 8,673 $ 9,573 $ 39,728 $ 5,540,084 $ 5,579,812 At December 31, 2019 , 2018 and 2017 , loans in the amount of $17.8 million , $17.4 million , and $20.9 million , respectively, were three or more months delinquent or in the process of foreclosure and the Company was not accruing interest income on these loans. At December 31, 2019, there were no loans that were ninety days or greater past due and still accruing interest. Non-accrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The Company categorizes all commercial and commercial real estate loans, except for small business loans, into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The Company uses the following definitions for risk ratings: Pass : Loans classified as Pass are well protected by the paying capacity and net worth of the borrower. Special Mention : Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date. Substandard : Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. As of December 31, 2019 and 2018 , and based on the most recent analysis performed, the risk category of loans by loan portfolio segment, excluding PCI loans, is as follows (in thousands): Pass Special Substandard Doubtful Total December 31, 2019 Commercial and industrial $ 378,154 $ 2,657 $ 15,280 $ — $ 396,091 Commercial real estate – owner occupied 756,592 3,985 31,364 — 791,941 Commercial real estate – investor 2,240,104 23,559 21,035 — 2,284,698 $ 3,374,850 $ 30,201 $ 67,679 $ — $ 3,472,730 December 31, 2018 Commercial and industrial $ 291,265 $ 2,777 $ 10,952 $ — $ 304,994 Commercial real estate – owner occupied 706,825 3,000 30,550 — 740,375 Commercial real estate – investor 1,966,495 23,727 24,988 — 2,015,210 $ 2,964,585 $ 29,504 $ 66,490 $ — $ 3,060,579 For residential and consumer loans, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2019 and 2018 , excluding PCI loans (in thousands): Residential Consumer December 31, 2019 Performing $ 2,313,640 $ 405,103 Non-performing 7,181 2,733 $ 2,320,821 $ 407,836 December 31, 2018 Performing $ 2,036,897 $ 472,033 Non-performing 7,389 2,914 $ 2,044,286 $ 474,947 The recorded investment in residential and consumer loans collateralized by residential real estate, which are in the process of foreclosure, amounted to $1.8 million at December 31, 2019 . The amount of foreclosed residential real estate property held by the Company was $51,000 at December 31, 2019 . The Company classifies certain loans as troubled debt restructurings when credit terms to a borrower in financial difficulty are modified. The modifications may include a reduction in rate, an extension in term, the capitalization of past due amounts and/or the restructuring of scheduled principal payments. One-to-four family and consumer loans where the borrower’s debt is discharged in a bankruptcy filing are also considered troubled debt restructurings. For these loans, the Bank retains its security interest in the real estate collateral. Included in the non-accrual loan total at December 31, 2019 , 2018 and 2017 were $6.6 million , $3.6 million , and $8.8 million , respectively, of troubled debt restructurings. At December 31, 2019 , there were $476,000 specific reserves allocated to loans which were classified as troubled debt restructurings. At December 31, 2018 and 2017, there were no specific reserves allocated to loans which were classified as troubled debt restructurings. Non-accrual loans which become troubled debt restructurings are generally returned to accrual status after six months of performance. In addition to the troubled debt restructurings included in non-accrual loans, the Company also has loans classified as accruing troubled debt restructuring at December 31, 2019 , 2018 and 2017 , which totaled $18.0 million , $22.9 million , and $33.3 million , respectively. Troubled debt restructurings are considered in the allowance for loan losses similar to other impaired loans. The following table presents information about troubled debt restructurings which occurred during the years ended December 31, 2019 and 2018 , and troubled debt restructurings modified within the previous year and which defaulted during the years ended December 31, 2019 and 2018 (dollars in thousands): Number Pre-modification Post-modification For the year ended December 31, 2019 Troubled Debt Restructurings: Commercial real estate – owner occupied 1 $ 154 $ 198 Commercial real estate – investor 1 272 393 Residential real estate 6 1,036 1,091 Consumer 7 663 683 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: Consumer 1 $ 115 Number Pre-modification Post-modification For the year ended December 31, 2018 Troubled Debt Restructurings: Commercial and industrial 2 $ 496 $ 502 Commercial real estate – owner occupied 1 49 50 Commercial real estate – investor 3 1,395 1,435 Residential real estate 5 558 598 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: Consumer 1 $ 29 As part of the Capital Bank acquisition, PCI loans were acquired at a discount primarily due to deteriorated credit quality. PCI loans are accounted for at fair value, based upon the present value of expected future cash flows, with no related allowance for loan losses. The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Capital Bank at January 31, 2019 (in thousands): Capital Bank January 31, 2019 Contractually required principal and interest $ 6,877 Contractual cash flows not expected to be collected (non-accretable discount) (769 ) Expected cash flows to be collected at acquisition 6,108 Interest component of expected cash flows (accretable yield) (691 ) Fair value of acquired loans $ 5,417 The following table summarizes the changes in accretable yield for PCI loans during the years ended December 31, 2019 and 2018 (in thousands): For the Year Ended December 31, 2019 2018 Beginning balance $ 3,630 $ 161 Acquisition 691 2,646 Accretion (2,613 ) (2,257 ) Reclassification from non-accretable difference 1,317 3,080 Ending balance $ 3,025 $ 3,630 |
Interest and Dividends Receivab
Interest and Dividends Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Interest and Dividends Receivable | Interest and Dividends Receivable Interest and dividends receivable at December 31, 2019 and 2018 are summarized as follows (in thousands): December 31, 2019 2018 Loans $ 17,664 $ 15,905 Investment securities and other 2,827 2,490 Mortgage-backed securities 1,183 1,294 $ 21,674 $ 19,689 |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment, net at December 31, 2019 and 2018 are summarized as follows (in thousands): December 31, 2019 2018 Land $ 24,446 $ 25,415 Buildings and improvements 97,653 101,211 Leasehold improvements 9,274 7,465 Furniture and equipment 25,558 22,373 Finance lease 2,572 8,630 Other 2,764 2,444 Total 162,267 167,538 Accumulated depreciation and amortization (59,576 ) (56,329 ) $ 102,691 $ 111,209 Depreciation and amortization expense for the years ended December 31, 2019 , 2018 , and 2017 amounted to $8.2 million , $8.7 million and $6.3 million , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits Deposits, including accrued interest payable of $238,000 at December 31, 2019 and $430,000 at December 31, 2018 , are summarized as follows (in thousands): December 31, 2019 2018 Amount Weighted Average Cost Amount Weighted Average Cost Non-interest-bearing accounts $ 1,377,396 — % $ 1,151,362 — % Interest-bearing checking accounts 2,539,428 0.68 2,350,106 0.51 Money market deposit accounts 578,147 0.68 569,680 0.66 Savings accounts 898,174 0.13 877,177 0.12 Time deposits 935,632 1.82 866,244 1.50 Total deposits $ 6,328,777 0.62 % $ 5,814,569 0.51 % Included in time deposits at December 31, 2019 and 2018 , were $150.6 million and $124.3 million , respectively, in deposits of $250,000 and over. Time deposits at December 31, 2019 mature as follows (in thousands): For the Year Ended December 31, Time Deposit Maturities 2020 $ 522,246 2021 257,040 2022 104,241 2023 34,341 2024 16,902 Thereafter 862 Total $ 935,632 Interest expense on deposits for the years ended December 31, 2019 , 2018 and 2017 is as follows (in thousands): For the Year Ended December 31, 2019 2018 2017 Interest-bearing checking accounts $ 16,820 $ 9,219 $ 4,533 Money market deposit accounts 4,919 2,818 1,213 Savings accounts 1,195 990 345 Time deposits 15,498 9,551 6,245 Total interest expense on deposits $ 38,432 $ 22,578 $ 12,336 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds are summarized as follows (in thousands): December 31, 2019 2018 Amount Weighted Average Rate Amount Weighted Average Rate Federal Home Loan Bank advances $ 519,260 1.84 % $ 449,383 2.15 % Securities sold under agreements to repurchase 71,739 0.42 61,760 0.30 Other borrowings 96,801 4.64 99,530 5.24 $ 687,800 2.09 % $ 610,673 2.47 % Information concerning FHLB advances and securities sold under agreements to repurchase (“reverse repurchase agreements”) is summarized as follows (in thousands): FHLB Advances Reverse Repurchase Agreements 2019 2018 2019 2018 Average balance $ 387,925 $ 382,464 $ 64,525 $ 66,340 Maximum amount outstanding at any month end 519,260 675,802 71,739 82,463 Average interest rate for the year 2.18 % 2.06 % 0.43 % 0.25 % Amortized cost of collateral: Mortgage-backed securities $ — $ — $ 80,436 $ 75,425 Estimated fair value of collateral: Mortgage-backed securities — — 81,365 74,144 The securities collateralizing the reverse repurchase agreements are delivered to the lender with whom each transaction is executed or to a third-party custodian. The lender, who may sell, loan or otherwise dispose of such securities to other parties in the normal course of their operations, agrees to resell to the Company substantially the same securities at the maturity of the reverse repurchase agreements (Refer to Note 4 Securities). FHLB advances and reverse repurchase agreements have contractual maturities at December 31, 2019 as follows (in thousands): FHLB Advances Reverse Repurchase Agreements For the Year Ended December 31, 2020 $ 359,724 $ 71,739 2021 24,743 — 2022 92,793 — 2023 — — 2024 42,000 — Total $ 519,260 $ 71,739 The other borrowings at December 31, 2019 include the following (in thousands): Type of Debt Stated Value Carrying Value Interest Rate Maturity Subordinated debt $ 35,000 $ 34,542 5.125 % (1) September 30, 2026 Trust preferred 5,000 5,000 3 month LIBOR plus 165 basis points August 1, 2036 Trust preferred 30,000 22,645 3 month LIBOR plus 135 basis points March 15, 2036 Trust preferred 7,500 7,500 3 month LIBOR plus 166 basis points November 1, 2036 Trust preferred 10,000 7,652 3 month LIBOR plus 153 basis points April 19, 2037 Trust preferred 10,000 10,000 3 month LIBOR plus 175 basis points September 1, 2037 Trust preferred 10,000 7,509 3 month LIBOR plus 139 basis points October 1, 2037 Capital lease 1,953 1,953 5.625 % June 30, 2029 $ 109,453 $ 96,801 (1) Adjusts to a floating rate of 392 basis points over 3 month LIBOR on September 30, 2021. All of the trust preferred debt is currently callable. Interest expense on borrowings for the years ended December 31, 2019 , 2018 , and 2017 is as follows (in thousands): For the Year Ended December 31, 2019 2018 2017 Federal Home Loan Bank advances $ 8,441 $ 7,885 $ 4,486 Securities sold under agreements to repurchase 276 168 121 Other borrowings 5,674 5,521 2,668 $ 14,391 $ 13,574 $ 7,275 All FHLB advances are secured by the Bank’s residential and commercial mortgage loans and FHLB stock. As a member of the FHLB of New York, the Bank is required to maintain a minimum investment in the capital stock of the FHLB, at cost, in an amount equal to 0.125% of the Bank’s mortgage-related assets, plus 4.5% of the specified value of certain transactions between the Bank and the FHLB. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2019 , 2018 and 2017 consists of the following (in thousands): For the Year Ended December 31, 2019 2018 2017 Current Federal $ 1,991 $ 18,030 $ (12,754 ) State 740 108 169 Total current 2,731 18,138 (12,585 ) Deferred Federal 18,846 (4,568 ) 35,440 State (2,793 ) — — Total deferred 16,053 (4,568 ) 35,440 $ 18,784 $ 13,570 $ 22,855 Included in other comprehensive income is income tax expense attributable to the net accretion of unrealized losses on debt securities available-for-sale arising during the year in the amount of $874,000 , $1.1 million , and $276,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Effective January 1, 2017, the Company adopted ASU 2016-09 “Compensation - Stock Compensation,” which decreased income tax expense by $1.8 million for the year ended December 31, 2017. Under the ASU, the tax benefits of exercised stock options and vested stock awards are recognized as a benefit to income tax expense in the reporting period which they occur. A reconciliation between the provision for income taxes and the expected amount computed by multiplying income before the provision for income taxes times the applicable statutory Federal income tax rate for the years ended December 31, 2019 , 2018 and 2017 is as follows (in thousands): For the Year Ended December 31, 2019 2018 2017 Income before provision for income taxes $ 107,358 $ 85,502 $ 65,325 Applicable statutory Federal income tax rate 21.0 % 21.0 % 35.0 % Computed “expected” Federal income tax expense $ 22,545 $ 17,955 $ 22,864 (Decrease) increase in Federal income tax expense resulting from Tax exempt interest (665 ) (615 ) (839 ) ESOP fair market value adjustment 77 125 223 ESOP dividends (151 ) (136 ) (230 ) Earnings on BOLI (1,138 ) (1,072 ) (1,155 ) Merger related expenses 297 322 478 State income taxes net of Federal benefit 583 85 110 Stock compensation (386 ) (758 ) (1,823 ) Revaluation of state deferred tax asset (2,205 ) — — Impact of Tax Cuts and Jobs Act (“Tax Reform”) — (1,854 ) 3,643 Reclassification of certain tax effect from accumulated other comprehensive income (221 ) (586 ) — Other items, net 48 104 (416 ) $ 18,784 $ 13,570 $ 22,855 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented in the following table (in thousands): December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 4,107 $ 3,501 Reserve for repurchased loans 112 55 Reserve for uncollected interest 212 119 Incentive compensation 1,397 1,302 Deferred compensation 591 529 Other reserves 2,737 334 Stock plans 1,270 950 ESOP 178 142 Purchase accounting adjustments 8,475 16,142 Net operating loss carryforward related to acquisition 39,519 44,436 Other real estate owned — 90 Unrealized loss on securities 826 1,225 Unrealized loss on properties available-for-sale 1,438 1,266 Federal and state alternative minimum tax 4,746 1,410 Total gross deferred tax assets 65,608 71,501 Deferred tax liabilities: Investments, discount accretion (380 ) (232 ) Deferred loan and commitment costs, net (2,379 ) (1,478 ) Premises and equipment, differences in depreciation (7,340 ) (4,350 ) Undistributed REIT income (4,735 ) (1,730 ) Other (707 ) (334 ) Total gross deferred tax liabilities (15,541 ) (8,124 ) Net deferred tax assets $ 50,067 $ 63,377 The 2019 deferred tax expense does not equal the change in net deferred tax assets as a result of deferred taxes recorded in connection with the Capital Bank acquisition of approximately $3.1 million . The Company has Federal net operating losses from the acquisitions of Colonial American, Cape and Sun. At December 31, 2019 and 2018 , the net operating losses from Colonial American were $4.9 million and $5.3 million , respectively. These net operating losses are subject to annual limitation under Code Section 382 of approximately $330,000 , and will expire between 2029 and 2034. At December 31, 2019 and 2018 , the net operating losses from Cape were $0 and $3.0 million , respectively. These net operating losses were subject to annual limitation under Code Section 382 of approximately $4.5 million . At December 31, 2019 and 2018 , the net operating losses from Sun were $175.9 million and $198.9 million , respectively. These net operating losses are subject to annual limitation under Code Section 382 of approximately $23.3 million , which will expire in 2022 and $9.3 million , which will expire between 2029 and 2036. As of December 31, 2019 and 2018 , the Company had $1.8 million of New Jersey AMA Tax Credits. These credits do not expire. As of December 31, 2019 and 2018 , the Company had $1.0 million of AMT Tax Credits that were part of the Cape acquisition and $2.3 million of AMT Tax Credits that were part of the Sun acquisition. These credits are subject to the same Code Section 382 limitation as indicated above but do not expire. At December 31, 2019 , 2018 and 2017 , the Company determined that it is not required to establis h a valuation reserve for the remaining net deferred tax assets since it is “more likely than not” that the net deferred tax assets will be realized through future reversals of existing taxable temporary differences, future taxable income and tax planning strategies. The conclusion that it is “more likely than not” that the remaining net deferred tax assets will be realized is based on the history of earnings and the prospects for continued growth. Management will continue to review the tax criteria related to the recognition of deferred tax assets. Retained earnings at December 31, 2019 includes approximately $10.8 million for which no provision for income tax has been made. This amount represents an allocation of income to bad debt deductions for tax purposes only. Events that would result in taxation of these reserves include failure to qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock redemptions and excess distributions to stockholders. At December 31, 2019 , the Company had an unrecognized deferred tax liability of $2.6 million with respect to this reserve. There were no unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 . The tax years that remain subject to examination by the Federal government and the state of New York include the years ended December 31, 2016 and forward. The tax years that remain subject to examination by the state of New Jersey include the years ended December 31, 2015 and forward. On July 1, 2018, New Jersey enacted changes to the corporate business tax laws. This legislation required a combined group to file combined returns for tax years beginning in 2019 and thereafter. However, due to technical issues and inconsistencies with existing tax law, it was initially determined that the tax law change did not have an impact on deferred taxes. In December 2019, the State of New Jersey issued a clarifying technical bulletin related to the impact of the new tax legislation enacted in July 2018. This technical bulletin provided clarification to the combined income tax reporting for certain members of a unitary business group. Accordingly, this required a revaluation of some of the Company’s deferred tax assets. As a result of the revaluation of the state deferred tax assets, the Company recognized additional income tax benefit of $2.2 million for the year ended December 31, 2019 . With the enactment of the Tax Reform on December 22, 2017, the federal corporate income tax rate was reduced from 35% to 21% effective January 1, 2018. Accounting guidance requires that the effect of income tax law changes on deferred taxes should be recognized as a component of income tax expense related to continuing operations, but also to items initially recognized in other comprehensive income. As a result of the reduction in the U.S. federal statutory income tax rate, the Company recognized additional income tax benefit of $1.9 million for the year ended December 31, 2018 and additional income tax expense of $3.6 million for the year ended December 31, 2017. Because accounting guidance requires the effect of income tax law changes on deferred taxes to be recognized as a component of income tax expense related to continuing operations, this additional income tax expense included $1.8 million related to items recognized in other comprehensive income. These amounts will continue to be reported as separate components of accumulated other comprehensive income until such time as the underlying transactions from which such amounts arose are settled through continuing operations. At such time, the reclassification from accumulated other comprehensive income will be recognized as a net tax benefit. The amount included in accumulated other comprehensive income at December 31, 2019 , subject to reclassification, was $1.1 million . |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Stock Ownership Plan | Employee Stock Ownership Plan The Bank maintains an Employee Stock Ownership Plan (“ESOP”). All full-time employees are eligible to participate in the ESOP after they attain age 21 and complete one year of service during which they work at least 1000 hours . ESOP shares are allocated among participants on the basis of compensation earned during the year. Employees are fully vested in their ESOP account after the completion of five years of credited service or completely if service was terminated due to death, retirement, disability or change in control of the Company. ESOP participants are entitled to receive distributions from the ESOP account only upon termination of service, which includes retirement and death except that a participant may elect to have dividends distributed as a cash payment on a quarterly basis. The ESOP originally borrowed $13.4 million from the Company to purchase 2,013,137 shares of common stock. On May 12, 1998, the initial loan agreement was amended to allow the ESOP to borrow an additional $8.2 million in order to fund the purchase of 633,750 shares of common stock. At the same time, the term of the loan was extended from the initial twelve years to thirty years . On May 1, 2018, the loan agreement was amended to allow the ESOP to borrow an additional $8.4 million in order to fund the purchase of 292,592 shares of common stock. At the same time, the fixed interest rate of the loan was reduced from 8.25% to 3.25% . The amended loan is to be repaid from contributions by the Bank to the ESOP trust. The Bank is required to make contributions to the ESOP in amounts at least equal to the principal and interest requirement of the debt. The Bank’s obligation to make such contributions is reduced to the extent of any dividends paid by the Company on unallocated shares and any investment earnings realized on such dividends. As of December 31, 2019 and 2018 , contributions to the ESOP, which were used to fund principal and interest payments on the ESOP debt, totaled $1.5 million and $1.4 million , respectively. During 2019 and 2018 , $357,000 and $287,000 , respectively, of dividends paid on unallocated ESOP shares were used for debt service. At December 31, 2019 and 2018 , the loan had an outstanding balance of $9.3 million and $10.4 million , respectively, and the ESOP had unallocated shares of 459,711 and 525,241 , respectively. At December 31, 2019 , the unallocated shares had a fair value of $11.7 million . The unamortized balance of the ESOP is shown as unallocated common stock held by the ESOP and is reflected as a reduction of stockholders’ equity. For the years ended December 31, 2019 , 2018 and 2017 , the Bank recorded compensation expense related to the ESOP of $1.6 million , $1.6 million , and $919,000 , respectively, including $366,000 , $596,000 , and $637,000 , respectively, representing additional compensation expense to reflect the increase in the average fair value of committed to be released and allocated shares in excess of the Bank’s cost. As of December 31, 2019 , 2,412,132 shares had been allocated to participants and 65,531 shares were committed to be released. |
Incentive Plan
Incentive Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Plan | Incentive Plan On April 20, 2006, the OceanFirst Financial Corp. 2006 Stock Incentive Plan, which authorizes the granting of stock options or awards of common stock, was approved by stockholders. On May 5, 2011, the OceanFirst Financial Corp. 2011 Stock Incentive Plan, which also authorizes the granting of stock options or awards of common stock, was approved by stockholders. This plan was subsequently amended on June 2, 2017. In January 2018, the Company implemented a performance-based stock plan for directors and select senior management executives. The purpose of these plans is to attract and retain qualified personnel in key positions, provide officers, employees and non-employee directors (“Outside Directors”) with a proprietary interest in the Company as an incentive to contribute to the success of the Company, align the interests of management with those of other stockholders and reward employees for outstanding performance. All officers, other employees and Outside Directors of the Company and its affiliates are eligible to receive awards under the plans. Under the amended 2011 Stock Incentive Plan, the Company is authorized to issue up to an additional 4,000,000 shares subject to option or, in lieu of options, up to 1,600,000 shares in the form of stock awards. At December 31, 2019 , 261,527 options or 104,611 awards remain to be issued. Under the 2006 Stock Incentive Plan, the Company was authorized to issue up to an additional 1,000,000 shares subject to options, or in lieu of options, up to 333,333 shares in the form of stock awards. At December 31, 2019 , no options or awards remain to be issued. As part of the Cape acquisition, 599,373 options were granted in 2016 for the conversion of outstanding Cape options. These options had a weighted average exercise price of $10.34 per option and were fully vested upon acquisition. As part of the Ocean Shore acquisition, 287,595 options were granted in 2016 for the conversion of outstanding Ocean Shore options. These options had a weighted average exercise price of $9.37 per option and were fully vested upon acquisition. As part of the Sun acquisition, 491,248 options were granted in 2018 for the conversion of outstanding Sun options. These options had a weighted average exercise price of $21.92 per option and were fully vested upon acquisition. The Company will not recognize compensation expense in the future on these options as they have been accounted for as part of the acquisition. Stock awards generally vest at the rate of 20% per year. In 2019 and 2018, the Company granted performance-based awards, which vest in equal amounts over a 3 year period when a specific performance metric has been attained or exceeded. Options expire 10 years from the date of grant and generally vest at the rate of 20% per year. The exercise price of each option equals the closing market price of the Company’s stock on the date of grant. The Company typically issues Treasury shares or authorized but unissued shares to satisfy stock option exercises. The Company recognizes the grant-date fair value of stock options and other stock-based compensation issued to employees in the income statement. The modified prospective transition method was adopted and, as a result, the income statement includes $973,000 , $1.0 million , and $1.2 million , of expense for stock option grants and $2.9 million , $2.0 million , and $1.0 million , of expense for stock award grants, for the years ended December 31, 2019 , 2018 and 2017 , respectively. At December 31, 2019 , the Company had $10.4 million in compensation cost related to non-vested options and stock awards not yet recognized. This cost will be recognized over the remaining vesting period of 3.35 years. The fair value of stock options granted by the Company was estimated through the use of the Black-Scholes option pricing model applying the following assumptions: 2019 2018 2017 Risk-free interest rate 2.63 % 2.65 % 2.31 % Expected option life 7 years 7 years 7 years Expected volatility 21 % 21 % 21 % Expected dividend yield 2.70 % 2.19 % 2.07 % Weighted average fair value of an option share granted during the year $ 4.47 $ 5.44 $ 5.62 Intrinsic value of options exercised during the year (in thousands) 2,994 8,513 7,882 The risk-free interest rate is based on the U.S. Treasury rate with a term equal to the expected option life. The expected option life conforms to the Company’s actual experience. Expected volatility is based on actual historical results. Compensation cost is recognized on a straight line basis over the vesting period. A summary of option activity for the years ended December 31, 2019 , 2018 and 2017 is as follows: 2019 2018 2017 Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Outstanding at beginning of year 2,340,842 $ 18.25 2,489,314 $ 16.91 2,758,833 $ 14.94 Granted 461,407 25.20 135,107 27.39 335,150 29.01 Assumed in acquisition — — 491,248 21.92 — — Exercised (227,189 ) 11.24 (765,624 ) 17.69 (567,153 ) 14.39 Forfeited (149,158 ) 24.71 (9,203 ) 28.42 (35,099 ) 18.42 Expired (1,870 ) 29.59 — — (2,417 ) 11.70 Outstanding at end of year 2,424,032 $ 19.80 2,340,842 $ 18.25 2,489,314 $ 16.91 Options exercisable 1,612,946 1,604,576 1,608,762 The following table summarizes information about stock options outstanding at December 31, 2019 : Options Outstanding Options Exercisable Exercise Prices Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price $8.45 to 12.95 293,334 1.3 years $ 9.78 290,334 1.3 years $ 9.76 12.95 to 17.45 900,520 3.7 15.45 765,149 3.3 15.13 17.45 to 21.95 196,744 4.2 17.98 196,744 4.2 17.98 21.95 to 26.45 457,563 8.8 24.99 34,570 4.8 23.18 26.45 to 30.95 575,871 5.9 28.21 326,149 4.6 28.04 2,424,032 4.9 years $ 19.80 1,612,946 3.3 years $ 17.29 The aggregate intrinsic value for stock options outstanding and stock options exercisable at December 31, 2019 is $15.4 million and $14.1 million , respectively. A summary of the granted but unvested stock award activity for the years ended December 31, 2019 , 2018 and 2017 are as follows: 2019 2018 2017 Number Weighted Average Grant Date Fair Value Number Weighted Average Grant Date Fair Value Number Weighted Average Grant Date Fair Value Outstanding at beginning of year: 330,598 $ 25.92 169,703 $ 21.79 156,945 $ 17.25 Granted 249,651 24.80 272,668 27.52 69,175 28.70 Vested (105,307 ) 24.49 (58,754 ) 20.81 (47,379 ) 17.32 Forfeited (23,499 ) 26.38 (53,019 ) 26.60 (9,038 ) 19.14 Outstanding at end of year 451,443 $ 25.61 330,598 $ 25.92 169,703 $ 21.79 |
Commitments, Contingencies and
Commitments, Contingencies and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Concentrations of Credit Risk | Commitments, Contingencies and Concentrations of Credit Risk The Company, in the normal course of business, is party to financial instruments and commitments which involve, to varying degrees, elements of risk in excess of the amounts recognized in the consolidated financial statements. These financial instruments and commitments include unused consumer lines of credit and commitments to extend credit. At December 31, 2019 , the following commitments and contingent liabilities existed which are not reflected in the accompanying consolidated financial statements (in thousands): December 31, 2019 Unused consumer and construction loan lines of credit (primarily floating-rate) $ 333,074 Unused commercial loan lines of credit (primarily floating-rate) 451,535 Other commitments to extend credit: Fixed-Rate 197,940 Adjustable-Rate 2,764 Floating-Rate 127,010 The Company’s fixed-rate loan commitments expire within 90 days of issuance and carried interest rates ranging from 2.25% to 6.75% at December 31, 2019 . The Company’s maximum exposure to credit losses in the event of nonperformance by the other party to these financial instruments and commitments is represented by the contractual amounts. The Company uses the same credit policies in granting commitments and conditional obligations as it does for financial instruments recorded in the consolidated statements of financial condition. These commitments and obligations do not necessarily represent future cash flow requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s assessment of risk. Substantially all of the unused consumer and construction loan lines of credit are collateralized by mortgages on real estate. At December 31, 2019 , the Company is obligated under noncancelable operating leases for premises and equipment. Rental and lease expense under these leases aggregated approximately $5.0 million , $5.2 million , and $3.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Refer to Note 17 Leases, for the projected minimum lease commitments as of December 31, 2019 . The Company grants one-to-four family and commercial first mortgage real estate loans to borrowers primarily located throughout New Jersey and the metropolitan areas of Philadelphia and New York City. The ability of borrowers to repay their obligations is dependent upon various factors including the borrowers’ income and net worth, cash flows generated by the underlying collateral, value of the underlying collateral and priority of the Company’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the Company’s control; the Company is, therefore, subject to risk of loss. A decline in real estate values could cause some residential and commercial real estate loans to become inadequately collateralized, which would expose the Bank to a greater risk of loss. The Company believes its lending policies and procedures adequately minimize the potential exposure to such risks. Collateral and/or guarantees are required for all loans. The Company is a defendant in certain claims and legal actions arising in the ordinary course of business. Management and its legal counsel are of the opinion that the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following reconciles average shares outstanding for basic and diluted earnings per share for the years ended December 31, 2019 , 2018 and 2017 (in thousands): December 31, 2019 2018 2017 Weighted average shares outstanding 50,701 47,266 32,490 Less: Unallocated ESOP shares (493 ) (435 ) (311 ) Unallocated incentive award shares and shares held by deferred compensation plan (42 ) (58 ) (66 ) Average basic shares outstanding 50,166 46,773 32,113 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan 580 884 1,012 Average diluted shares outstanding 50,746 47,657 33,125 For the years ended December 31, 2019 , 2018 and 2017 , antidilutive stock options of 993,000 , 504,000 , and 331,000 , respectively, were excluded from earnings per share calculations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or the most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The Company uses valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability and developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and developed based on the best information available in the circumstances. In that regard, a fair value hierarchy has been established for valuation inputs that gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Movements within the fair value hierarchy are recognized at the end of the applicable reporting period. There were no transfers between the levels of the fair value hierarchy for the years ended December 31, 2019 , 2018 and 2017 . The fair value hierarchy is as follows: Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlations or other means. Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. Assets and Liabilities Measured at Fair Value A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Debt Secur ities Available-For-Sale Debt securities classified as available-for-sale are reported at fair value. Fair value for these debt securities is determined using inputs other than quoted prices that are based on market observable information (Level 2). Level 2 debt securities are priced through third-party pricing services or s ecurity industry sources that actively participate in the buying and selling of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific securities, but comparing the debt securities to benchmark or comparable debt securities. Equity Investments Equity investments are reported at fair value. Fair value for these investments is determined using a quoted price in an active market or exchange (Level 1). Interest Rate Swaps The Company’s interest rate swaps are reported at fair value utilizing models provided by an independent, third-party and observable market data. When entering into an interest rate swap agreement, the Company is exposed to fair value changes due to interest rate movements, and also the potential nonperformance of our contract counterparty. Other Real Estate Owned and Impaired Loans Other real estate owned and loans measured for impairment based on the fair value of the underlying collateral are recorded at estimated fair value, less estimated selling costs. Fair value is based on independent appraisals. The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2019 and 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Fair Value Measurements at Reporting Date Using: Total Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs December 31, 2019 Items measured on a recurring basis: Debt securities available-for-sale $ 150,960 $ — $ 150,935 $ 25 Equity investments 10,136 10,136 — — Interest rate swap asset 10,141 — 10,141 — Interest rate swap liability (10,708 ) — (10,708 ) — Items measured on a non-recurring basis: Other real estate owned 264 — — 264 Loans measured for impairment based on the fair value of the underlying collateral 8,794 — — 8,794 December 31, 2018 Items measured on a recurring basis: Debt securities available-for-sale $ 100,717 $ — $ 100,717 $ — Equity investments 9,655 9,655 — — Interest rate swap asset 1,722 — 1,722 — Interest rate swap liability (1,813 ) — (1,813 ) — Items measured on a non-recurring basis: Other real estate owned 1,381 — — 1,381 Loans measured for impairment based on the fair value of the underlying collateral 11,639 — — 11,639 Assets and Liabilities Disclosed at Fair Value A description of the valuation methodologies used for assets and liabilities disclosed at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Cash and Due from Banks For cash and due from banks, the carrying amount approximates fair value. Debt Securities Held-to-Maturity Debt securities classified as held-to-maturity are carried at amortized cost, as the Company has the positive intent and ability to hold these debt securities to maturity. The Company determines the fair value of the debt securities utilizing Level 2 and, infrequently, Level 3 inputs. Most of the Company’s investment and mortgage-backed securities, are fixed income instruments that are not quoted on an exchange, but are bought and sold in active markets. Prices for these instruments are obtained through third-party pricing vendors or security industry sources that actively participate in the buying and selling of debt securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific debt securities, but comparing the debt securities to benchmark or comparable debt securities. Management’s policy is to obtain and review all available documentation from the third-party pricing service relating to their fair value determinations, including their methodology and summary of inputs. Management reviews this documentation, makes inquiries of the third-party pricing service and decides as to the level of the valuation inputs. Based on the Company’s review of the available documentation from the third-party pricing service, management concluded that Level 2 inputs were utilized for all securities except for certain state and municipal obligations known as bond anticipation notes (“BANs”) where management utilized Level 3 inputs. Restricted Equity Investments The fair value for Federal Home Loan Bank of New York and Federal Reserve Bank stock is its carrying value since this is the amount for which it could be redeemed. There is no active market for this stock and the Company is required to maintain a minimum investment as stipulated by the respective agencies. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential real estate, consumer and commercial. Each loan category is further segmented into fixed and adjustable rate interest terms. Fair value of performing and non-performing loans was estimated by discounting the future cash flows, net of estimated prepayments, at a rate for which similar loans would be originated to new borrowers with similar terms. In accordance with the prospective adoption of ASU 2016-01, the fair value of loans was measured using the exit price notion. Deposits Other than Time Deposits The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and interest-bearing checking accounts and money market accounts is, by definition, equal to the amount payable on demand. The related insensitivity of the majority of these deposits to interest rate changes creates a significant inherent value which is not reflected in the fair value reported. Time Deposits The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Securities Sold Under Agreements to Repurchase with Retail Customers Fair value approximates the carrying amount as these borrowings are payable on demand and the interest rate adjusts monthly. Borrowed Funds Fair value estimates are based on discounting contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities. The book value and estimated fair value of the Bank’s significant financial instruments not recorded at fair value as of December 31, 2019 and December 31, 2018 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Value Level 1 Inputs Level 2 Inputs Level 3 Inputs December 31, 2019 Financial Assets: Cash and due from banks $ 120,544 $ 120,544 $ — $ — Debt securities held-to-maturity 768,873 — 774,805 2,485 Restricted equity investments 62,356 — — 62,356 Loans receivable, net and loans held-for-sale 6,207,680 — — 6,173,237 Financial Liabilities: Deposits other than time deposits 5,393,145 — 5,393,145 — Time deposits 935,632 — 936,318 — Federal Home Loan Bank advances and other borrowings 616,061 — 626,225 — Securities sold under agreements to repurchase with retail customers 71,739 71,739 — — December 31, 2018 Financial Assets: Cash and due from banks $ 120,792 $ 120,792 $ — $ — Debt securities held-to-maturity 846,810 — 830,999 1,816 Restricted equity investments 56,784 — — 56,784 Loans receivable, net and loans held-for-sale 5,579,222 — — 5,474,306 Financial Liabilities: Deposits other than time deposits 4,948,325 — 4,948,325 — Time deposits 866,244 — 853,678 — Federal Home Loan Bank advances and other borrowings 548,913 — 554,692 — Securities sold under agreements to repurchase with retail customers 61,760 61,760 — — Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because a limited market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other significant unobservable inputs. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include premises and equipment, Bank Owned Life Insurance, deferred tax assets and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities and Other Financial Instruments | Derivatives, Hedging Activities and Other Financial Instruments The Company enters into derivative financial instruments which involve, to varying degrees, interest rate, market and credit risk. The Company manages these risks as part of its asset and liability management process and through credit policies and procedures, seeking to minimize counterparty credit risk by establishing credit limits and collateral agreements. The Company utilizes certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The derivative financial instruments entered into by the Company are an economic hedge of a derivative offering to Bank customers. The Company does not use derivative financial instruments for trading purposes. Customer Derivatives – Interest Rate Swaps The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging, and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820, Fair Value Measurements. For the periods ended December 31, 2019 and 2018, the Company recognized a loss of $478,000 and $87,000 , respectively, in other income resulting from a fair value adjustment. The notional amount of derivatives not designated as hedging instruments was $337.6 million and $59.3 million at December 31, 2019 and 2018, respectively. The table below presents the fair value of derivatives not designated as hedging instruments as well as their location on the consolidated statements of financial condition (in thousands): Fair Value December 31, Balance Sheet Location 2019 2018 Other assets $ 10,141 $ 1,722 Other liabilities 10,708 1,813 Credit Risk-Related Contingent Features The Company is a party to International Swaps and Derivatives Association agreements with third party broker-dealers that require a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties was $13.7 million and $4.1 million at December 31, 2019 and 2018, respectively. The amount of collateral posted with third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $10.7 million and $1.8 million at December 31, 2019 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Leases (Topic 842). For the Company, Leases (Topic 842) primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The majority of the Company’s leases are classified as operating leases, and therefore, were not previously included on the consolidated statements of financial condition. As part of the adoption of Leases (Topic 842), operating lease agreements are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company has one existing finance lease (previously referred to as capital leases), which was acquired in the Sun acquisition and has a lease term through 2029. This lease was previously required to be recorded on the Company’s consolidated statements of financial condition. As such, the adoption of Leases (Topic 842) did not have a material impact on the accounting for this lease. The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 18,682 Finance lease ROU asset Premises and equipment, net 1,534 Total Lease ROU Asset $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 18,893 Finance lease liability Other borrowings 1,953 Total Lease Liability $ 20,846 The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, Leases (Topic 842) requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception. December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 9.69 years Finance lease 9.60 years Weighted-Average Discount Rate Operating leases 3.45 % Finance lease 5.63 % The following table represents lease expenses and other lease information (in thousands): For Year Ended December 31, 2019 Lease Expense Operating Lease Expense $ 3,904 Finance Lease Expense: Amortization of ROU assets 274 Interest on lease liabilities (1) 174 Total $ 4,352 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,625 Operating cash flows from finance leases 174 Financing cash flows from finance leases 263 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended December 31, 2020 $ 295 $ 3,425 2021 295 3,256 2022 295 2,869 2023 295 2,132 2024 295 1,878 Thereafter 942 9,165 Total $ 2,417 $ 22,725 Less: Imputed Interest (464 ) (3,832 ) Total Lease Liabilities $ 1,953 $ 18,893 |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Leases (Topic 842). For the Company, Leases (Topic 842) primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The majority of the Company’s leases are classified as operating leases, and therefore, were not previously included on the consolidated statements of financial condition. As part of the adoption of Leases (Topic 842), operating lease agreements are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company has one existing finance lease (previously referred to as capital leases), which was acquired in the Sun acquisition and has a lease term through 2029. This lease was previously required to be recorded on the Company’s consolidated statements of financial condition. As such, the adoption of Leases (Topic 842) did not have a material impact on the accounting for this lease. The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 18,682 Finance lease ROU asset Premises and equipment, net 1,534 Total Lease ROU Asset $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 18,893 Finance lease liability Other borrowings 1,953 Total Lease Liability $ 20,846 The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, Leases (Topic 842) requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception. December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 9.69 years Finance lease 9.60 years Weighted-Average Discount Rate Operating leases 3.45 % Finance lease 5.63 % The following table represents lease expenses and other lease information (in thousands): For Year Ended December 31, 2019 Lease Expense Operating Lease Expense $ 3,904 Finance Lease Expense: Amortization of ROU assets 274 Interest on lease liabilities (1) 174 Total $ 4,352 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,625 Operating cash flows from finance leases 174 Financing cash flows from finance leases 263 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended December 31, 2020 $ 295 $ 3,425 2021 295 3,256 2022 295 2,869 2023 295 2,132 2024 295 1,878 Thereafter 942 9,165 Total $ 2,417 $ 22,725 Less: Imputed Interest (464 ) (3,832 ) Total Lease Liabilities $ 1,953 $ 18,893 |
Parent-Only Financial Informati
Parent-Only Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent-Only Financial Information | Parent-Only Financial Information The following condensed statements of financial condition at December 31, 2019 and 2018 and condensed statements of operations and cash flows for the years ended December 31, 2019 , 2018 and 2017 for OceanFirst Financial Corp. (parent company only) reflect the Company’s investment in its wholly-owned subsidiaries, the Bank and OceanFirst Risk Management, Inc., using the equity method of accounting. Condensed Statement of Financial Condition (in thousands) December 31, 2019 2018 Assets: Cash and due from banks $ 5,442 $ 3,930 Advances to subsidiary Bank 27,878 14,026 Investment securities 1,000 1,000 ESOP loan receivable 9,271 10,431 Investment in subsidiaries 1,206,479 1,107,539 Other assets 327 234 Total assets $ 1,250,397 $ 1,137,160 Liabilities and Stockholders’ Equity: Borrowings $ 94,848 $ 94,134 Other liabilities 2,430 3,668 Stockholders’ equity 1,153,119 1,039,358 Total liabilities and stockholders’ equity $ 1,250,397 $ 1,137,160 Condensed Statements of Operations (in thousands) For the Year Ended December 31, 2019 2018 2017 Dividend income – subsidiary Bank $ 79,000 $ 32,000 $ 32,000 Interest and dividend income – investment securities 63 63 63 Interest income – advances to subsidiary Bank 426 525 280 Interest income – ESOP loan receivable 321 321 321 Other income — 15 — Total income 79,810 32,924 32,664 Interest expense – borrowings 5,402 4,997 2,592 Operating expenses 2,686 2,397 1,788 Income before income taxes and undistributed earnings of subsidiary Bank 71,722 25,530 28,284 Benefit for income taxes 924 846 973 Income before undistributed earnings of subsidiary Bank 72,646 26,376 29,257 Undistributed earnings of subsidiary Bank 15,928 45,556 13,213 Net Income $ 88,574 $ 71,932 $ 42,470 Condensed Statements of Cash Flows (in thousands) For the Year Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income $ 88,574 $ 71,932 $ 42,470 (Increase) decrease in advances to subsidiary Bank (13,852 ) 15,262 (23,371 ) Undistributed earnings of subsidiary Bank (15,928 ) (45,556 ) (13,213 ) Amortization of deferred costs on borrowings 261 262 121 Net amortization of purchase accounting adjustments 453 395 — Change in other assets and other liabilities (184 ) 4,076 607 Net cash provided by operating activities 59,324 46,371 6,614 Cash flows from investing activities: Increase in ESOP loan receivable — (8,400 ) — Repayments on ESOP loan receivable 1,160 1,020 234 Net cash provided by (used in) investing activities 1,160 (7,380 ) 234 Cash flows from financing activities: Dividends paid (34,241 ) (29,564 ) (19,286 ) Purchase of treasury stock (26,066 ) (10,837 ) — Exercise of stock options 1,335 5,324 3,354 Net cash used in financing activities (58,972 ) (35,077 ) (15,932 ) Net increase (decrease) in cash and due from banks 1,512 3,914 (9,084 ) Cash and due from banks at beginning of year 3,930 16 9,100 Cash and due from banks at end of year $ 5,442 $ 3,930 $ 16 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 1, 2020, the Company completed its acquisitions of Two River and Country Bank. The transactions closed on January 1, 2020, and based on the $25.54 per share closing price of the Company’s common stock, the total transaction values were $197 million for Two River and $113 million for Country Bank. The total number of shares issued in the transaction were approximately 5,818,687 for Two River and 4,418,000 for Country Bank. Two River operated 14 branches and one loan production office. The Two River acquisition added $1.1 billion to assets, $938 million to loans, and $942 million to deposits. Country Bank operated 5 branches and one loan production office. The Country Bank acquisition added $798 million to assets, $616 million to loans, and $654 million to deposits. As a result of the Two River and Country Bank acquisitions on January 1, 2020, consolidated assets were $10.2 billion , loans were $7.8 billion , and deposits were $7.9 billion . |
Selected Consolidated Quarterly
Selected Consolidated Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Consolidated Quarterly Financial Data | SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (dollars in thousands, except per share data) (Unaudited) For the Quarter Ended December 31 September 30 June 30 March 31 2019 Interest income $ 77,075 $ 76,887 $ 78,410 $ 76,422 Interest expense 13,721 13,495 13,573 12,034 Net interest income 63,354 63,392 64,837 64,388 Provision for loans losses 355 305 356 620 Net interest income after provision for loan losses 62,999 63,087 64,481 63,768 Other income 11,231 11,543 9,879 9,512 Operating expenses (excluding merger related and branch consolidation expenses) 43,589 40,884 43,289 41,827 Merger related and branch consolidation expenses 4,010 2,473 7,626 5,444 Income before provision for income taxes 26,631 31,273 23,445 26,009 Provision for income taxes 3,181 6,302 4,465 4,836 Net income $ 23,450 $ 24,971 $ 18,980 $ 21,173 Basic earnings per share $ 0.47 $ 0.50 $ 0.37 $ 0.43 Diluted earnings per share $ 0.47 $ 0.49 $ 0.37 $ 0.42 2018 Interest income $ 72,358 $ 71,382 $ 70,078 $ 62,837 Interest expense 10,517 9,878 8,631 7,126 Net interest income 61,841 61,504 61,447 55,711 Provision for loans losses 506 907 706 1,371 Net interest income after provision for loan losses 61,335 60,597 60,741 54,340 Other income 8,748 8,285 8,883 8,910 Operating expenses (excluding merger related expenses and branch consolidation expenses) 37,794 37,503 42,470 38,508 Merger related and branch consolidation expenses 1,288 2,030 8,434 18,310 Income before provision for income taxes 31,001 29,349 18,720 6,432 Provision for income taxes 4,269 5,278 3,018 1,005 Net income $ 26,732 $ 24,071 $ 15,702 $ 5,427 Basic earnings per share $ 0.56 $ 0.50 $ 0.33 $ 0.12 Diluted earnings per share $ 0.55 $ 0.50 $ 0.32 $ 0.12 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of OceanFirst Financial Corp. (the “Company”) and its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc., and the Bank’s wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., and its wholly-owned subsidiary OceanFirst Management Corp., and its wholly-owned subsidiary OceanFirst Realty Corp., OceanFirst Services, LLC and its wholly-owned subsidiary OFB Reinsurance, Ltd., Hooper Holdings, LLC., TRREO Holdings LLC, Casaba Real Estate Holdings Corporation, Cohensey Bridge, L.L.C., Prosperis Financial, LLC and CBNJ Investments Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts previously reported have been reclassified to conform to the current year’s presentation. |
Business | Business The Bank provides a range of community banking services to customers through a network of branches and offices throughout New Jersey and the metropolitan areas of Philadelphia and New York City. The Bank is subject to competition from other financial institutions and certain technology companies; it is also subject to the regulations of certain regulatory agencies and undergoes periodic examinations by those regulatory authorities. |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The preparation of the accompanying consolidated financial statements in conformity with these accounting principles requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the evaluation of securities and goodwill for other-than-temporary impairment. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of interest-bearing deposits in other financial institutions. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. |
Securities and Other-Than-Temporary Impairments on Securities | Securities Securities include debt securities held-to-maturity, and debt and equity securities available-for-sale. Management determines the appropriate classification at the time of purchase. If management has the positive intent not to sell and the Company would not be required to sell prior to maturity, the securities are classified as held-to-maturity debt securities. Such securities are stated at amortized cost. During 2013, the Company transferred $536.0 million of previously designated available-for-sale debt securities to held-to-maturity designation at estimated fair value. The Company has the ability and intent to hold these securities as an investment until maturity or call. The securities transferred had an unrealized loss of $13.3 million at the time of transfer which continues to be reflected in accumulated other comprehensive income, net of subsequent amortization, which is being recognized over the remaining life of the securities. Securities in the available-for-sale category are securities which the Company may sell prior to maturity as part of its asset/liability management strategy. Such securities are carried at estimated fair value and unrealized gains and losses, net of related tax effect, are excluded from earnings, but are included as a separate component of stockholders’ equity and as part of comprehensive income. Discounts and premiums on securities are accreted or amortized using the level-yield method over the estimated lives of the securities, including the effect of prepayments. Gains or losses on the sale of such securities are included in other income using the specific identification method. Other-Than-Temporary Impairment on Securities One of the significant estimates related to securities is the evaluation for other-than-temporary impairment. If a determination is made that a debt security is other-than-temporarily impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as an other-than-temporary impairment charge in non-interest income as a component of gain (loss) on securities, net. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income, net of tax. The evaluation of securities for impairment is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether declines in the estimated fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions, the issuer’s financial condition and/or future prospects, the effects of changes in interest rates or credit spreads and the expected recovery period. On a quarterly basis the Company evaluates the securities portfolio for other-than-temporary impairment. Securities that are in an unrealized loss position are reviewed to determine if an other-than-temporary impairment is present based on certain quantitative factors. The primary factors considered in evaluating whether a decline in value is other-than-temporary include: (a) the length of time and extent to which the estimated fair value has been less than cost or amortized cost and the expected recovery period of the security, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments and (d) whether the Company intends to sell the security and whether it is more likely than not that the Company will not be required to sell the security. |
Loans Receivable | Loans Receivable Loans receivable, other than loans held-for-sale, are stated at unpaid principal balance, plus unamortized premiums less unearned discounts, net of deferred loan origination and commitment fees and costs, and the allowance for loan losses. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income using the level-yield method over the contractual life of the specifically identified loans, adjusted for actual prepayments. For each loan class, a loan is considered past due when a payment has not been received in accordance with the contractual terms. Loans which are more than 90 days past due, including impaired loans, and other loans in the process of foreclosure are placed on non-accrual status. Interest income previously accrued on these loans, but not yet received, is reversed in the current period. Any interest subsequently collected is credited to income in the period of recovery only after the full principal balance has been brought current. A loan is returned to accrual status when all amounts due have been received and the remaining principal balance is deemed collectible. A loan is considered impaired when it is deemed probable that the Company will not collect all amounts due according to the contractual terms of the loan agreement. The Company has defined the population of impaired loans to be all non-accrual commercial real estate, multi-family, land, construction and commercial and industrial loans in excess of $250,000 . Impaired loans are individually assessed to determine that the loan’s carrying value is not in excess of the estimated fair value of the collateral or the present value of the loan’s expected future cash flows. Smaller balance homogeneous loans that are collectively evaluated for impairment, such as residential mortgage loans and consumer loans, are specifically excluded from the impaired loan portfolio, except when they are modified in a trouble debt restructuring. Loan losses are charged-off in the period the loans, or portion, thereof are deemed uncollectible, generally after the loan becomes 120 days delinquent. The Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated fair value of the underlying collateral, less cost to sell, if it is determined that it is probable that recovery will come primarily from the sale of the collateral. Purchased credit-impaired (“PCI”) loans are acquired at a discount that is due, in part, to credit quality. PCI loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Interest income on loans acquired at a discount is based on the acquired loans’ expected cash flows. The acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flow. The difference between the undiscounted cash flows expected at acquisition and the investment in the loans, or the “accretable yield”, is recognized as interest income utilizing the level-yield method over the life of each pool. Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment of the yield on the pool over its remaining life, while decreases in expected cash flows are recognized as impairment through a loss provision and an increase in the allowance for loan losses. Therefore, the allowance for loan losses on these impaired pools reflect only losses incurred after the acquisition (representing the present value of all cash flows that were expected at acquisition but currently are not expected to be received). The Bank periodically evaluates the remaining contractual required payments due and estimates of cash flows expected to be collected. These evaluations require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Changes in the contractually required payments due and estimated cash flows expected to be collected may result in changes in the accretable yield and non-accretable difference or reclassifications between accretable yield and the non-accretable difference. For the pools with better than expected cash flows, the forecasted increase is recorded as an additional accretable yield that is recognized as a prospective increase to interest income on loans. |
Loans Held-for-sale | Loans Held for Sale The Company may sell part of its mortgage loan originations in order to manage interest rate risk and liquidity. Prior to 2017, the Bank had generally sold fixed-rate mortgage loans with final maturities in excess of 15 years . However, with few exceptions, since the beginning of 2017 and through 2019, the Bank generally retained newly originated mortgage loans in its portfolio. Given the recent decline in the interest rate environment, the Bank will evaluate the portfolio for potential sales in the future. In determining whether to retain mortgages, management considers the Company’s overall interest rate risk position, the volume of such loans, the loan yield and the types and amount of funding sources. The Company may also retain mortgage loan production in order to improve yields and increase balance sheet leverage. In addition, management periodically considers the sale of commercial and other loans as part of its management of credit risk. Loans held for sale are carried at the lower of unpaid principal balance, net, or estimated fair value on an aggregate basis. Estimated fair value is determined based on bid quotations from securities dealers. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation account that reflects probable incurred losses in the loan portfolio. The adequacy of the allowance for loan losses is based on management’s evaluation of the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic and regulatory conditions, as well as organizational changes. Additions to the allowance arise from charges to operations through the provision for loan losses or from the recovery of amounts previously charged-off. The allowance is reduced by loan charge-offs. The allowance for loan losses is maintained at an amount management considers sufficient to provide for probable losses. A cquired loans are marked to fair value on the date of acquisition and are evaluated on a quarterly basis to ensure the necessary purchase accounting updates are made in parallel with the allowance for loan loss calculation. Acquired loans that have been renewed since acquisition are included in the allowance for loan loss calculation since these loans have been underwritten to the Bank’s guidelines. Acquired loans that have not been renewed since acquisition, or that have a PCI mark, are excluded from the allowance for loan loss calculation. The Bank calculates a general valuation allowance for these excluded acquired loans without a PCI mark and compares that to the remaining general credit and interest rate marks. To the extent the remaining general credit and interest rate marks exceed the calculated general valuation allowance, no additional reserve is required. If the calculated general valuation allowance exceeds the remaining general credit and interest rate marks, the Bank would record an adjustment to the extent necessary. The Bank’s allowance for loan losses includes specific allowances and a general allowance, each updated on a quarterly basis. A specific allowance is determined for all impaired loans (excluding PCI loans). The Bank defines an impaired loan as all non-accrual commercial real estate, multi-family, land, construction and commercial loans in excess of $250,000 for which it is probable, based on current information, that the Company will not collect all amounts due under the contractual terms of the loan agreement. Impaired loans also include all loans modified as troubled debt restructurings. For collateral dependent loans, the specific allowance represents the difference between the Bank’s recorded investment in the loan, net of any interim charge-offs, and the estimated fair value of the collateral, less estimated selling costs. Impairment for all other impaired loans is calculated based on a combination of the estimated fair value of non-real estate collateral, personal guarantees, or the present value of the expected future cash flows. Generally, for collateral dependent real estate loans, the Bank obtains an updated collateral appraisal once the loan is impaired. For impaired residential real estate loans, the appraisal is generally updated annually if the loan remains delinquent for an extended period. For impaired commercial real estate loans, the Bank assesses whether there has likely been an adverse change in the collateral value supporting the loan. The Bank utilizes information based on its knowledge of changes in real estate conditions in its lending area to identify whether a possible deterioration of collateral value has occurred. Based on the severity of the changes in market conditions, management determines if an updated commercial real estate appraisal is warranted or if downward adjustments to the previous appraisal are warranted. If it is determined that the deterioration of the collateral value is significant enough to warrant ordering a new appraisal, an estimate of the downward adjustments to the existing appraised value is used in assessing if additional specific reserves are necessary until the updated appraisal is received. A general allowance is determined for all loans that are not individually evaluated for impairment (excluding acquired loans that have not been renewed under the Bank’s underwriting criteria). In determining the level of the general allowance, the Bank segments the loan portfolio into the following portfolio segments: residential real estate; consumer; investor-owned commercial real estate; owner-occupied commercial real estate; construction and land; and commercial and industrial. The portfolio segments are further segmented by delinquency status or risk rating. An estimated loss factor is then applied to the outstanding principal loan balance of the delinquency status or risk rating category for each portfolio segment. To determine the loss factor, the Bank utilizes historical loss experience adjusted for certain qualitative factors and the loss emergence period. The Bank’s historical loss experience is based on a rolling 36 -month look-back period for each portfolio segment. The look-back period was selected based on (1) management’s judgment that this period captures sufficient loss events (in both dollar terms and number of individual events) to be relevant; and (2) that the Bank’s underwriting criteria and risk characteristics have remained relatively stable throughout this period. The historical loss experience is adjusted for certain qualitative factors including, but not limited to, (1) delinquency trends, (2) net charge-off trends, (3) nature and volume of the loan portfolio, (4) loan policies and underwriting standards, (5) experience and ability of lending personnel, (6) concentrations of credit, (7) loan review system, and external factors such as (8) changes in current economic conditions, (9) local competition and (10) regulation. Economic factors that the Bank considers in its estimate of the allowance for loan losses include: local and regional trends in economic growth, unemployment and real estate values. The Bank considers the applicability of each of these qualitative factors in estimating the general allowance for each portfolio segment. Each quarter, the Bank considers the current conditions for each of the qualitative factors, as well as a forward looking view on trends and events, to support an assessment unique to each portfolio segment. The Bank calculates and analyzes the loss emergence period on an annual basis or more frequently if conditions warrant. The Bank’s methodology is to use loss events in the past 12 quarters to determine the loss emergence period for each loan segment. The loss emergence period is specific to each portfolio segment. It represents the amount of time that has elapsed between (1) the occurrence of a loss event, which resulted in a potential loss and (2) the confirmation of the potential loss, when the Bank records an initial charge-off or downgrades the risk-rating of the loan to substandard. The Bank also maintains an unallocated portion of the allowance for loan losses. The primary purpose of the unallocated component is to account for the inherent factors that cannot be practically assigned to individual loss categories, including the periodic update of appraisals, subjectivity of the Bank’s credit review and risk rating process, and economic conditions that may not be fully captured in the Bank’s loss history or qualitative factors. Upon completion of the aforementioned procedures, an overall management review is performed including ratio analyses to identify divergent trends compared with the Bank’s own historical loss experience, the historical loss experience of the Bank’s peer group and management’s understanding of general regulatory expectations. Based on that review, management may identify issues or factors that previously had not been considered in the estimation process, which may warrant further analysis or adjustments to estimated loss or qualitative factors applied in the calculation of the allowance for loan losses. |
Reserve for Repurchased Loans and Loss Sharing Obligations | Reserve for Repurchased Loans and Loss Sharing Obligations The reserve for repurchased loans and loss sharing obligations relates to potential losses on loans sold which may have to be repurchased due to a violation of representations and warranties and an estimate of the Bank’s obligation under a loss sharing arrangement for loans sold to the Federal Home Loan Bank (“FHLB”) as well as the potential repair requests for guaranteed loans sold to the Small Business Administration (“SBA”). Provisions for losses are charged to gain on sale of loans and credited to the reserve while actual losses are charged to the reserve. The reserve represents the Company’s estimate of the total losses expected to occur and is considered to be adequate by management based upon the Company’s evaluation of the potential exposure related to the loan sale agreements over the period of repurchase risk. The reserve for repurchased loans and loss sharing obligations is included in other liabilities on the Company’s consolidated statement of financial condition as well as SBA repair requests. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”) is carried at the lower of cost or estimated fair value, less estimated costs to sell. When a property is acquired, the excess of the loan balance over estimated fair value is charged to the allowance for loan losses. Operating results from other real estate owned, including rental income, operating expenses, gains and losses realized from the sales of other real estate owned and subsequent write-downs are recorded as incurred. |
Premises and Equipment | Premises and Equipment Land is carried at cost and premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation and amortization or, in the case of acquired premises, the value on the acquisition date. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or leases. Generally, depreciable lives are as follows: computer equipment: 3 years ; furniture, fixtures and other electronic equipment: 5 years ; building improvements: 10 years ; and buildings: 30 years . Repair and maintenance items are expensed and improvements are capitalized. Gains and losses on dispositions are reflected in current operations. |
Income Taxes | Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Any interest and penalties on taxes payable are included as part of the provision for income taxes. |
Comprehensive Income | Comprehensive Income Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes items recorded directly in equity, such as unrealized gains or losses on debt securities available-for-sale and accretion of unrealized loss on debt securities reclassified to held-to-maturity. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank Owned Life Insurance (“BOLI”) is accounted for using the cash surrender value method and is recorded at its realizable value. Part of the Company’s BOLI is invested in a separate account insurance product which is invested in a fixed income portfolio. The separate account includes stable value protection which maintains realizable value at book value with investment gains and losses amortized over future periods. Increases in cash surrender value are included in other non-interest income, while proceeds from death benefits are generally recorded as a reduction to the carrying value. |
Intangible Assets | Intangible Assets Intangible assets resulting from acquisitions under the acquisition method of accounting consist of goodwill and core deposit intangible. Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions. 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. 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 August 31, 2019 . Based upon its qualitative assessment of goodwill, the Company concluded that goodwill was not impaired and no further quantitative analysis was warranted. |
Segment Reporting | Segment Reporting The Company’s operations are solely in the financial services industry and include providing traditional banking and other financial services to its customers. The Company operates throughout New Jersey and the metropolitan areas of Philadelphia and New York City . Management makes operating decisions and assesses performance based on an ongoing review of the Bank’s consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding plus potential common stock, utilizing the treasury stock method. All share amounts exclude unallocated shares of stock held by the Employee Stock Ownership Plan (“ESOP”) and the 2006 and 2011 Incentive Plans (refer to Note 12 Incentive Plan, for further discussion). |
Impact of New Accounting Pronouncements | Impact of New Accounting Pronouncements Accounting Pronouncements Adopted in 2019 In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach may be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements On July 30, 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements”, which provided an option to apply the transition provisions of the new standard at the adoption date rather than the earliest comparative period presented. Additionally, the ASU provides a practical expedient permitting lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company adopted this ASU in its entirety on January 1, 2019, and has appropriately reflected the changes throughout the Company’s consolidated financial statements. The Company elected to apply the new standard as of the adoption date and will not restate comparative prior periods. Additionally, the Company elected to apply the package of practical expedients standard under which the Company need not reassess whether any expired or existing contracts are leases or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The adoption of this ASU resulted in the recognition of a right-of-use asset of $20.6 million in other assets and a lease liability of $20.7 million in other liabilities. Refer to Note 17 Leases, for additional information. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” This ASU requires the amortization of premiums to the earliest call date on debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates. This ASU does not impact securities held as a discount, as the discount continues to be amortized to the contractual maturity. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this update did not have an impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU was issued to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. As a result, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Current GAAP contains limitations on how an entity can designate the hedged risk in certain cash flow and fair value hedging relationships. To address those current limitations, the amendments in this ASU permit hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk. In addition, the amendments in this ASU change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption was permitted. The Company does not enter into derivatives that are designated as hedging instruments and as such, the adoption of this ASU did not have an impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the newly enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. The Company has early adopted ASU 2018-02 for the year ended December 31, 2017, and has elected not to reclassify the income tax effects of the Tax Reform from accumulated other comprehensive loss to retained earnings. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changed how entities will measure credit losses for financial assets and certain other instruments that are measured at amortized cost. The standard replaced today’s “incurred loss” approach with an “expected loss” model, which necessitates a forecast of lifetime losses. The new model, referred to as the current expected credit loss (“CECL”) model, applies to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. The ASU simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company will utilize the modified retrospective approach. The Company’s CECL implementation efforts are in process and continue to focus on model validation, developing new disclosures, establishing formal policies and procedures and other governance and control documentation. Certain elements of the calculation are pending finalization, including refinement of the model assumptions, the qualitative framework, internal control design, model validation, and the operational control framework to support the new process. Furthermore, changes to the economic forecasts within the model could positively or negatively impact the actual results. Due to these items, the quantitative impact to the consolidated financial statements cannot yet be reasonably estimated. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” This ASU intends to simplify the subsequent measurement of goodwill, eliminating Step 2 from the goodwill impairment test. Instead, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ASU No. 2017-04 is effective for fiscal years beginning after December 15, 2019; early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU updates the disclosure requirements on Fair Value measurements by 1) removing: the disclosures for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements; 2) modifying: disclosures for timing of liquidation of an investee’s assets and disclosures for uncertainty in measurement as of reporting date; and 3) adding: disclosures for changes in unrealized gains and losses included in other comprehensive income for recurring level 3 fair value measurements and disclosures for the range and weighted average of the significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted to any removed or modified disclosures and delay adoption of additional disclosures until the effective date. With the exception of the following, which should be applied prospectively, disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement, all other changes should be applied retrospectively to all periods presented upon the effective date. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Summary of Regulatory Capital Amounts and Ratios | The following is a summary of the Bank and the Company’s regulatory capital amounts and ratios as of December 31, 2019 and 2018 compared to the regulatory minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized institution then in effect (dollars in thousands): As of December 31, 2019 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 779,108 10.03 % $ 310,798 4.00 % $ 388,498 5.00 % Common equity Tier 1 (to risk-weighted assets) 779,108 12.98 420,106 7.00 (1) 390,099 6.50 Tier 1 capital (to risk-weighted assets) 779,108 12.98 510,129 8.50 (1) 480,121 8.00 Total capital (to risk-weighted assets) 797,339 13.29 630,159 10.50 (1) 600,152 10.00 OceanFirst Financial Corp: Tier 1 capital (to average assets) $ 791,746 10.17 % $ 311,289 4.00 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 729,095 12.14 420,273 7.00 (1) N/A N/A Tier 1 capital (to risk-weighted assets) 791,746 13.19 510,331 8.50 (1) N/A N/A Total capital (to risk-weighted assets) 844,977 14.07 630,409 10.50 (1) N/A N/A As of December 31, 2018 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 712,900 10.01 % $ 284,772 4.000 % $ 355,965 5.00 % Common equity Tier 1 (to risk-weighted assets) 712,900 13.39 339,513 6.375 (2) 346,170 6.50 Tier 1 capital (to risk-weighted assets) 712,900 13.39 419,398 7.875 (2) 426,056 8.00 Total capital (to risk-weighted assets) 730,484 13.72 525,912 9.875 (2) 532,570 10.00 OceanFirst Financial Corp: Tier 1 capital (to average assets) $ 709,972 9.96 % $ 285,199 4.000 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 647,773 12.15 339,791 6.375 (2) N/A N/A Tier 1 capital (to risk-weighted assets) 709,972 13.32 419,742 7.875 (2) N/A N/A Total capital (to risk-weighted assets) 762,556 14.31 526,343 9.875 (2) N/A N/A (1) Includes the Capital Conservation Buffer of 2.500% . (2) Includes the Capital Conservation Buffer of 1.875% |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Merger Related Expenses | The following table summarizes the merger related expenses for the years ended December 31, 2019 , 2018 and 2017 is as follows: For the Year Ended December 31, 2019 2018 2017 (in thousands) Data processing fees $ 2,514 $ 6,017 $ 3,956 Professional fees 4,239 4,414 2,771 Employee severance payments 2,942 15,660 1,177 Other/miscellaneous fees 808 820 389 Merger related expenses $ 10,503 $ 26,911 $ 8,293 |
Schedule of Estimated Fair Value of the Assets Acquired and the Liabilities Assumed as Date of Acquisition | The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Sun, net of the total consideration paid (in thousands): At January 31, 2018 Fair Value Total Purchase Price: $ 474,930 Assets acquired: Cash and cash equivalents $ 68,632 Securities 254,522 Loans 1,517,345 Accrued interest receivable 5,621 Bank Owned Life Insurance 85,238 Deferred tax asset 57,597 Other assets 43,202 Core deposit intangible 11,897 Total assets acquired 2,044,054 Liabilities assumed: Deposits (1,616,073 ) Borrowings (127,727 ) Other liabilities (13,242 ) Total liabilities assumed (1,757,042 ) Net assets acquired $ 287,012 Goodwill recorded in the merger $ 187,918 The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Capital Bank, net of total consideration paid (in thousands): At January 31, 2019 Estimated Total Purchase Price: $ 76,834 Assets acquired: Cash and cash equivalents $ 59,748 Securities 103,775 Loans 307,778 Accrued interest receivable 1,390 Bank Owned Life Insurance 10,460 Deferred tax asset 3,967 Other assets 4,980 Core deposit intangible 2,662 Total assets acquired 494,760 Liabilities assumed: Deposits (449,018 ) Other liabilities (5,121 ) Total liabilities assumed (454,139 ) Net assets acquired $ 40,621 Goodwill recorded in the merger $ 36,213 |
Business Acquisition, Pro Forma Information | Capital Bank Actual from January 31, 2019 to December 31, 2019 Sun Actual from January 31, 2018 to December 31, 2018 Pro forma Pro forma Pro forma (in thousands, except per share amounts) (Unaudited) Net interest income $ 17,090 $ 63,889 $ 257,703 $ 266,014 $ 260,520 Provision for loan losses 385 1,215 1,636 3,070 3,239 Non-interest income 1,456 7,961 42,277 37,554 40,914 Non-interest expense 12,482 35,184 190,934 214,713 201,605 Provision for income taxes 1,193 7,090 18,798 15,100 26,111 Net income $ 4,486 $ 28,361 $ 88,612 $ 70,685 $ 70,479 Fully diluted earnings per share $ 1.74 $ 1.36 $ 1.37 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for the core deposit intangible over the next five years is as follows (in thousands): For the Year Ended December 31, Amortization Expense 2020 $ 3,596 2021 3,121 2022 2,646 2023 2,171 2024 1,695 Thereafter 2,378 Total $ 15,607 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity | The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity at December 31, 2019 and 2018 are as follows (in thousands): Amortized Gross Gross Estimated At December 31, 2019 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 149,120 $ 1,408 $ (93 ) $ 150,435 State and municipal obligations 25 — — 25 Total investment securities 149,145 1,408 (93 ) 150,460 Mortgage-backed securities - FNMA 495 5 — 500 Total debt securities available-for-sale $ 149,640 $ 1,413 $ (93 ) $ 150,960 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 4,984 $ 14 $ — $ 4,998 State and municipal obligations 124,430 1,537 (208 ) 125,759 Corporate debt securities 79,547 833 (2,421 ) 77,959 Total investment securities 208,961 2,384 (2,629 ) 208,716 Mortgage-backed securities: FHLMC 206,985 2,221 (524 ) 208,682 FNMA 244,428 2,680 (493 ) 246,615 GNMA 110,661 939 (212 ) 111,388 SBA 1,940 — (51 ) 1,889 Total mortgage-backed securities 564,014 5,840 (1,280 ) 568,574 Total debt securities held-to-maturity $ 772,975 $ 8,224 $ (3,909 ) $ 777,290 Total debt securities $ 922,615 $ 9,637 $ (4,002 ) $ 928,250 At December 31, 2018 Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 100,524 $ 163 $ (963 ) $ 99,724 Mortgage-backed securities - FNMA 998 — (5 ) 993 Total debt securities available-for-sale $ 101,522 $ 163 $ (968 ) $ 100,717 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 14,975 $ — $ (130 ) $ 14,845 State and municipal obligations 123,987 67 (1,697 ) 122,357 Corporate debt securities 66,834 126 (4,984 ) 61,976 Total investment securities 205,796 193 (6,811 ) 199,178 Mortgage-backed securities: FHLMC 237,703 159 (5,110 ) 232,752 FNMA 277,266 753 (6,030 ) 271,989 GNMA 127,611 198 (2,360 ) 125,449 SBA 3,527 — (80 ) 3,447 Total mortgage-backed securities 646,107 1,110 (13,580 ) 633,637 Total debt securities held-to-maturity $ 851,903 $ 1,303 $ (20,391 ) $ 832,815 Total debt securities $ 953,425 $ 1,466 $ (21,359 ) $ 933,532 |
Carrying Value of Held-to-Maturity Investment Securities | The carrying value of the debt securities held-to-maturity at December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 2018 Amortized cost $ 772,975 $ 851,903 Net loss on date of transfer from available-for-sale (13,347 ) (13,347 ) Accretion of net unrealized loss on securities reclassified as held-to-maturity 9,245 8,254 Carrying value $ 768,873 $ 846,810 |
Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of investment securities at December 31, 2019 by contractual maturity, are shown below (in thousands). Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2019 , corporate debt securities with an amortized cost and estimated fair value of $59.4 million and $57.4 million , respectively, were callable prior to the maturity date. December 31, 2019 Amortized Estimated Less than one year $ 69,635 $ 69,723 Due after one year through five years 203,081 205,520 Due after five years through ten years 71,590 70,118 Due after ten years 13,800 13,815 $ 358,106 $ 359,176 |
Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity | The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at December 31, 2019 and December 31, 2018 , segregated by the duration of the unrealized losses, are as follows (in thousands): As of December 31, 2019 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 25,021 $ (54 ) $ 22,451 $ (39 ) $ 47,472 $ (93 ) Total debt securities available-for-sale 25,021 (54 ) 22,451 (39 ) 47,472 (93 ) Debt securities held-to-maturity: Investment securities: State and municipal obligations 7,308 (58 ) 14,531 (150 ) 21,839 (208 ) Corporate debt securities 9,727 (213 ) 37,628 (2,208 ) 47,355 (2,421 ) Total investment securities 17,035 (271 ) 52,159 (2,358 ) 69,194 (2,629 ) Mortgage-backed securities: FHLMC 6,329 (29 ) 38,641 (495 ) 44,970 (524 ) FNMA 13,682 (59 ) 38,568 (434 ) 52,250 (493 ) GNMA 30,268 (93 ) 19,828 (119 ) 50,096 (212 ) SBA — — 1,889 (51 ) 1,889 (51 ) Total mortgage-backed securities 50,279 (181 ) 98,926 (1,099 ) 149,205 (1,280 ) Total debt securities held-to-maturity 67,314 (452 ) 151,085 (3,457 ) 218,399 (3,909 ) Total debt securities $ 92,335 $ (506 ) $ 173,536 $ (3,496 ) $ 265,871 $ (4,002 ) As of December 31, 2018 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 985 $ (3 ) $ 66,438 $ (960 ) $ 67,423 $ (963 ) Mortgage-backed securities - FNMA 993 (5 ) — — 993 (5 ) Total debt securities available-for-sale 1,978 (8 ) 66,438 (960 ) 68,416 (968 ) Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations — — 14,845 (130 ) 14,845 (130 ) State and municipal obligations 2,856 (4 ) 106,073 (1,693 ) 108,929 (1,697 ) Corporate debt securities 2,470 (21 ) 43,059 (4,963 ) 45,529 (4,984 ) Total investment securities 5,326 (25 ) 163,977 (6,786 ) 169,303 (6,811 ) Mortgage-backed securities: FHLMC 46,615 (159 ) 147,763 (4,951 ) 194,378 (5,110 ) FNMA 27,594 (125 ) 185,328 (5,905 ) 212,922 (6,030 ) GNMA 35,221 (535 ) 59,468 (1,825 ) 94,689 (2,360 ) SBA 3,447 (80 ) — — 3,447 (80 ) Total mortgage-backed securities 112,877 (899 ) 392,559 (12,681 ) 505,436 (13,580 ) Total debt securities held-to-maturity 118,203 (924 ) 556,536 (19,467 ) 674,739 (20,391 ) Total debt securities $ 120,181 $ (932 ) $ 622,974 $ (20,427 ) $ 743,155 $ (21,359 ) |
Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities | At December 31, 2019 , the amortized cost, estimated fair value and credit rating of the individual corporate debt securities in an unrealized loss position for greater than one year are as follows (in thousands): As of December 31, 2019 Security Description Amortized Cost Estimated Credit Rating Chase Capital $ 10,000 $ 9,632 Baa1/BBB- Wells Fargo Capital 5,000 4,744 A1/BBB Huntington Capital 5,000 4,500 Baa2/BB+ Keycorp Capital 5,000 4,625 Baa2/BB+ PNC Capital 5,000 4,700 Baa1/BBB- State Street Capital 3,332 3,199 A3/BBB SunTrust Capital 5,000 4,725 Not Rated/BBB- Southern Company 1,504 1,503 Baa2/BBB+ $ 39,836 $ 37,628 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loans Receivable | Loans receivable, net, at December 31, 2019 and 2018 consisted of the following (in thousands): December 31, 2019 2018 Commercial: Commercial and industrial $ 396,091 $ 304,994 Commercial real estate - owner occupied 791,941 740,375 Commercial real estate - investor 2,284,698 2,015,210 Total commercial 3,472,730 3,060,579 Consumer: Residential real estate 2,320,821 2,044,286 Home equity loans and lines 318,414 353,386 Other consumer 89,422 121,561 Total consumer 2,728,657 2,519,233 6,201,387 5,579,812 Purchased credit impaired (“PCI”) loans 13,265 8,901 Total loans 6,214,652 5,588,713 Deferred origination costs, net 9,880 7,086 Allowance for loan losses (16,852 ) (16,577 ) Loans receivable, net $ 6,207,680 $ 5,579,222 |
Analysis of Allowance for Loan Losses | An analysis of the allowance for loan losses for the years ended December 31, 2019 , 2018 and 2017 is as follows (in thousands): At or For the Year Ended December 31, 2019 2018 2017 Balance at beginning of year $ 16,577 $ 15,721 $ 15,183 Provision charged to operations 1,636 3,490 4,445 Charge-offs (2,804 ) (3,841 ) (5,384 ) Recoveries 1,443 1,207 1,477 Balance at end of year $ 16,852 $ 16,577 $ 15,721 |
Allowance for Loan Loses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans | The following table present s an analysis of the allowance for loan losses for the years ended December 31, 2019 and 2018 , the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018 excluding PCI loans (in thousands): Commercial Commercial Real Estate - Owner Occupied Commercial Real Estate - Investor Residential Consumer Unallocated Total For the year ended December 31, 2019 Allowance for loan losses: Balance at beginning of year $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Provision (benefit) charged to operations (311 ) 947 638 792 567 (997 ) 1,636 Charge-offs — (663 ) (236 ) (1,299 ) (606 ) — (2,804 ) Recoveries 160 332 711 96 144 — 1,443 Balance at end of year $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 For the year ended December 31, 2018 Allowance for loan losses: Balance at beginning of year $ 1,801 $ 3,175 $ 7,952 $ 1,804 $ 614 $ 375 $ 15,721 Provision (benefit) charged to operations (66 ) (783 ) 2,550 1,056 86 647 3,490 Charge-offs (230 ) (314 ) (1,939 ) (1,021 ) (337 ) — (3,841 ) Recoveries 104 199 207 574 123 — 1,207 Balance at end of year $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 December 31, 2019 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ 474 $ — $ — $ 2 $ — $ 476 Collectively evaluated for impairment 1,458 2,419 9,883 2,002 589 25 16,376 Total ending allowance balance $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Loans: Loans individually evaluated for impairment $ 243 $ 6,163 $ 5,584 $ 11,009 $ 3,511 $ — $ 26,510 Loans collectively evaluated for impairment 395,848 785,778 2,279,114 2,309,812 404,325 — 6,174,877 Total ending loan balance $ 396,091 $ 791,941 $ 2,284,698 $ 2,320,821 $ 407,836 $ — $ 6,201,387 December 31, 2018 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,609 2,277 8,770 2,413 486 1,022 16,577 Total ending allowance balance $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Loans: Loans individually evaluated for impairment $ 1,626 $ 5,395 $ 9,738 $ 10,064 $ 2,974 $ — $ 29,797 Loans collectively evaluated for impairment 303,368 734,980 2,005,472 2,034,222 471,973 — 5,550,015 Total ending loan balance $ 304,994 $ 740,375 $ 2,015,210 $ 2,044,286 $ 474,947 $ — $ 5,579,812 |
Summary of Impaired Loans Excluding PCI Loans | A summary of impaired loans at December 31, 2019 and 2018 is as follows, excluding PCI loans (in thousands): December 31, 2019 2018 Impaired loans with no allocated allowance for loan losses $ 24,313 $ 29,797 Impaired loans with allocated allowance for loan losses 2,197 — $ 26,510 $ 29,797 Amount of the allowance for loan losses allocated $ 476 $ — |
Impaired Financing Receivables | The summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2019 and 2018 and for the years ended December 31, 2019 and 2018 is as follows, excluding PCI loans (in thousands): Unpaid Recorded Allowance for At December 31, 2019 With no related allowance recorded: Commercial and industrial $ 265 $ 243 $ — Commercial real estate – owner occupied 4,062 3,968 — Commercial real estate – investor 6,665 5,584 — Residential real estate 11,009 11,009 — Consumer 3,734 3,509 — $ 25,735 $ 24,313 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied 2,376 2,195 474 Commercial real estate – investor — — — Residential real estate — — — Consumer 2 2 2 $ 2,378 $ 2,197 $ 476 At December 31, 2018 With no related allowance recorded: Commercial and industrial $ 1,750 $ 1,626 $ — Commercial real estate – owner occupied 5,413 5,395 — Commercial real estate – investor 12,633 9,738 — Residential real estate 10,441 10,064 — Consumer 3,301 2,974 — $ 33,538 $ 29,797 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied — — — Commercial real estate – investor — — — Residential real estate — — — Consumer — — — $ — $ — $ — (continued) For the Year Ended December 31, 2019 2018 Average Interest Average Interest With no related allowance recorded: Commercial and industrial $ 523 $ 5 $ 1,075 $ 107 Commercial real estate – owner occupied 4,171 179 8,264 297 Commercial real estate – investor 9,012 222 13,934 382 Residential real estate 10,275 548 10,787 475 Consumer 3,275 178 2,764 155 $ 27,256 $ 1,132 $ 36,824 $ 1,416 With an allowance recorded: Commercial and industrial $ — $ — $ 589 $ — Commercial real estate – owner occupied 2,173 138 — — Commercial real estate – investor — — 670 — Residential real estate — — — — Consumer — — — — $ 2,173 $ 138 $ 1,259 $ — |
Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans | The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of December 31, 2019 and 2018 , excluding PCI loans (in thousands): December 31, 2019 2018 Commercial and industrial $ 207 $ 1,587 Commercial real estate – owner occupied 4,811 501 Commercial real estate – investor 2,917 5,024 Residential real estate 7,181 7,389 Consumer 2,733 2,914 $ 17,849 $ 17,415 |
Aging of Recorded Investment in Past Due Loans Excluding PCI Loans | The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 and 2018 by loan portfolio segment, excluding PCI loans (in thousands): 30-59 60-89 90 Days or Greater Total Loans Not Total December 31, 2019 Commercial and industrial $ 100 $ — $ 207 $ 307 $ 395,784 $ 396,091 Commercial real estate – owner occupied 1,541 1,203 1,040 3,784 788,157 791,941 Commercial real estate – investor 381 938 2,792 4,111 2,280,587 2,284,698 Residential real estate 8,161 3,487 2,859 14,507 2,306,314 2,320,821 Consumer 1,048 491 2,388 3,927 403,909 407,836 $ 11,231 $ 6,119 $ 9,286 $ 26,636 $ 6,174,751 $ 6,201,387 December 31, 2018 Commercial and industrial $ — $ — $ — $ — $ 304,994 $ 304,994 Commercial real estate – owner occupied 5,104 236 197 5,537 734,838 740,375 Commercial real estate – investor 3,979 2,503 2,461 8,943 2,006,267 2,015,210 Residential real estate 10,199 4,979 4,451 19,629 2,024,657 2,044,286 Consumer 2,200 955 2,464 5,619 469,328 474,947 $ 21,482 $ 8,673 $ 9,573 $ 39,728 $ 5,540,084 $ 5,579,812 |
Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans | As of December 31, 2019 and 2018 , and based on the most recent analysis performed, the risk category of loans by loan portfolio segment, excluding PCI loans, is as follows (in thousands): Pass Special Substandard Doubtful Total December 31, 2019 Commercial and industrial $ 378,154 $ 2,657 $ 15,280 $ — $ 396,091 Commercial real estate – owner occupied 756,592 3,985 31,364 — 791,941 Commercial real estate – investor 2,240,104 23,559 21,035 — 2,284,698 $ 3,374,850 $ 30,201 $ 67,679 $ — $ 3,472,730 December 31, 2018 Commercial and industrial $ 291,265 $ 2,777 $ 10,952 $ — $ 304,994 Commercial real estate – owner occupied 706,825 3,000 30,550 — 740,375 Commercial real estate – investor 1,966,495 23,727 24,988 — 2,015,210 $ 2,964,585 $ 29,504 $ 66,490 $ — $ 3,060,579 |
Recorded Investment in Residential and Consumer Loans Based on Payment Activity Excluding PCI Loans | The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2019 and 2018 , excluding PCI loans (in thousands): Residential Consumer December 31, 2019 Performing $ 2,313,640 $ 405,103 Non-performing 7,181 2,733 $ 2,320,821 $ 407,836 December 31, 2018 Performing $ 2,036,897 $ 472,033 Non-performing 7,389 2,914 $ 2,044,286 $ 474,947 |
Troubled Debt Restructurings | The following table presents information about troubled debt restructurings which occurred during the years ended December 31, 2019 and 2018 , and troubled debt restructurings modified within the previous year and which defaulted during the years ended December 31, 2019 and 2018 (dollars in thousands): Number Pre-modification Post-modification For the year ended December 31, 2019 Troubled Debt Restructurings: Commercial real estate – owner occupied 1 $ 154 $ 198 Commercial real estate – investor 1 272 393 Residential real estate 6 1,036 1,091 Consumer 7 663 683 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: Consumer 1 $ 115 Number Pre-modification Post-modification For the year ended December 31, 2018 Troubled Debt Restructurings: Commercial and industrial 2 $ 496 $ 502 Commercial real estate – owner occupied 1 49 50 Commercial real estate – investor 3 1,395 1,435 Residential real estate 5 558 598 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: Consumer 1 $ 29 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Capital Bank at January 31, 2019 (in thousands): Capital Bank January 31, 2019 Contractually required principal and interest $ 6,877 Contractual cash flows not expected to be collected (non-accretable discount) (769 ) Expected cash flows to be collected at acquisition 6,108 Interest component of expected cash flows (accretable yield) (691 ) Fair value of acquired loans $ 5,417 The following table summarizes the changes in accretable yield for PCI loans during the years ended December 31, 2019 and 2018 (in thousands): For the Year Ended December 31, 2019 2018 Beginning balance $ 3,630 $ 161 Acquisition 691 2,646 Accretion (2,613 ) (2,257 ) Reclassification from non-accretable difference 1,317 3,080 Ending balance $ 3,025 $ 3,630 |
Interest and Dividends Receiv_2
Interest and Dividends Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Interest and Dividends Receivable | Interest and dividends receivable at December 31, 2019 and 2018 are summarized as follows (in thousands): December 31, 2019 2018 Loans $ 17,664 $ 15,905 Investment securities and other 2,827 2,490 Mortgage-backed securities 1,183 1,294 $ 21,674 $ 19,689 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment, net at December 31, 2019 and 2018 are summarized as follows (in thousands): December 31, 2019 2018 Land $ 24,446 $ 25,415 Buildings and improvements 97,653 101,211 Leasehold improvements 9,274 7,465 Furniture and equipment 25,558 22,373 Finance lease 2,572 8,630 Other 2,764 2,444 Total 162,267 167,538 Accumulated depreciation and amortization (59,576 ) (56,329 ) $ 102,691 $ 111,209 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Summary of Deposits Including Accrued Interest Payable | Deposits, including accrued interest payable of $238,000 at December 31, 2019 and $430,000 at December 31, 2018 , are summarized as follows (in thousands): December 31, 2019 2018 Amount Weighted Average Cost Amount Weighted Average Cost Non-interest-bearing accounts $ 1,377,396 — % $ 1,151,362 — % Interest-bearing checking accounts 2,539,428 0.68 2,350,106 0.51 Money market deposit accounts 578,147 0.68 569,680 0.66 Savings accounts 898,174 0.13 877,177 0.12 Time deposits 935,632 1.82 866,244 1.50 Total deposits $ 6,328,777 0.62 % $ 5,814,569 0.51 % |
Summary of Time Deposits by Maturity | Time deposits at December 31, 2019 mature as follows (in thousands): For the Year Ended December 31, Time Deposit Maturities 2020 $ 522,246 2021 257,040 2022 104,241 2023 34,341 2024 16,902 Thereafter 862 Total $ 935,632 |
Summary of Interest Expense on Deposits | Interest expense on deposits for the years ended December 31, 2019 , 2018 and 2017 is as follows (in thousands): For the Year Ended December 31, 2019 2018 2017 Interest-bearing checking accounts $ 16,820 $ 9,219 $ 4,533 Money market deposit accounts 4,919 2,818 1,213 Savings accounts 1,195 990 345 Time deposits 15,498 9,551 6,245 Total interest expense on deposits $ 38,432 $ 22,578 $ 12,336 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Borrowed Funds | Borrowed funds are summarized as follows (in thousands): December 31, 2019 2018 Amount Weighted Average Rate Amount Weighted Average Rate Federal Home Loan Bank advances $ 519,260 1.84 % $ 449,383 2.15 % Securities sold under agreements to repurchase 71,739 0.42 61,760 0.30 Other borrowings 96,801 4.64 99,530 5.24 $ 687,800 2.09 % $ 610,673 2.47 % |
Summary of Federal Home Loan Bank Advances and Securities Sold Under Agreements to Repurchase | Information concerning FHLB advances and securities sold under agreements to repurchase (“reverse repurchase agreements”) is summarized as follows (in thousands): FHLB Advances Reverse Repurchase Agreements 2019 2018 2019 2018 Average balance $ 387,925 $ 382,464 $ 64,525 $ 66,340 Maximum amount outstanding at any month end 519,260 675,802 71,739 82,463 Average interest rate for the year 2.18 % 2.06 % 0.43 % 0.25 % Amortized cost of collateral: Mortgage-backed securities $ — $ — $ 80,436 $ 75,425 Estimated fair value of collateral: Mortgage-backed securities — — 81,365 74,144 |
Contractual Maturities of FHLB Advances and Reverse Repurchase Agreements | FHLB advances and reverse repurchase agreements have contractual maturities at December 31, 2019 as follows (in thousands): FHLB Advances Reverse Repurchase Agreements For the Year Ended December 31, 2020 $ 359,724 $ 71,739 2021 24,743 — 2022 92,793 — 2023 — — 2024 42,000 — Total $ 519,260 $ 71,739 |
Schedule of Other Borrowings | The other borrowings at December 31, 2019 include the following (in thousands): Type of Debt Stated Value Carrying Value Interest Rate Maturity Subordinated debt $ 35,000 $ 34,542 5.125 % (1) September 30, 2026 Trust preferred 5,000 5,000 3 month LIBOR plus 165 basis points August 1, 2036 Trust preferred 30,000 22,645 3 month LIBOR plus 135 basis points March 15, 2036 Trust preferred 7,500 7,500 3 month LIBOR plus 166 basis points November 1, 2036 Trust preferred 10,000 7,652 3 month LIBOR plus 153 basis points April 19, 2037 Trust preferred 10,000 10,000 3 month LIBOR plus 175 basis points September 1, 2037 Trust preferred 10,000 7,509 3 month LIBOR plus 139 basis points October 1, 2037 Capital lease 1,953 1,953 5.625 % June 30, 2029 $ 109,453 $ 96,801 (1) Adjusts to a floating rate of 392 basis points over 3 month LIBOR on September 30, 2021. |
Interest Expense on Borrowings | Interest expense on borrowings for the years ended December 31, 2019 , 2018 , and 2017 is as follows (in thousands): For the Year Ended December 31, 2019 2018 2017 Federal Home Loan Bank advances $ 8,441 $ 7,885 $ 4,486 Securities sold under agreements to repurchase 276 168 121 Other borrowings 5,674 5,521 2,668 $ 14,391 $ 13,574 $ 7,275 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense Benefit | The provision (benefit) for income taxes for the years ended December 31, 2019 , 2018 and 2017 consists of the following (in thousands): For the Year Ended December 31, 2019 2018 2017 Current Federal $ 1,991 $ 18,030 $ (12,754 ) State 740 108 169 Total current 2,731 18,138 (12,585 ) Deferred Federal 18,846 (4,568 ) 35,440 State (2,793 ) — — Total deferred 16,053 (4,568 ) 35,440 $ 18,784 $ 13,570 $ 22,855 |
Schedule of Income Tax Reconciliation | A reconciliation between the provision for income taxes and the expected amount computed by multiplying income before the provision for income taxes times the applicable statutory Federal income tax rate for the years ended December 31, 2019 , 2018 and 2017 is as follows (in thousands): For the Year Ended December 31, 2019 2018 2017 Income before provision for income taxes $ 107,358 $ 85,502 $ 65,325 Applicable statutory Federal income tax rate 21.0 % 21.0 % 35.0 % Computed “expected” Federal income tax expense $ 22,545 $ 17,955 $ 22,864 (Decrease) increase in Federal income tax expense resulting from Tax exempt interest (665 ) (615 ) (839 ) ESOP fair market value adjustment 77 125 223 ESOP dividends (151 ) (136 ) (230 ) Earnings on BOLI (1,138 ) (1,072 ) (1,155 ) Merger related expenses 297 322 478 State income taxes net of Federal benefit 583 85 110 Stock compensation (386 ) (758 ) (1,823 ) Revaluation of state deferred tax asset (2,205 ) — — Impact of Tax Cuts and Jobs Act (“Tax Reform”) — (1,854 ) 3,643 Reclassification of certain tax effect from accumulated other comprehensive income (221 ) (586 ) — Other items, net 48 104 (416 ) $ 18,784 $ 13,570 $ 22,855 |
Schedule of Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented in the following table (in thousands): December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 4,107 $ 3,501 Reserve for repurchased loans 112 55 Reserve for uncollected interest 212 119 Incentive compensation 1,397 1,302 Deferred compensation 591 529 Other reserves 2,737 334 Stock plans 1,270 950 ESOP 178 142 Purchase accounting adjustments 8,475 16,142 Net operating loss carryforward related to acquisition 39,519 44,436 Other real estate owned — 90 Unrealized loss on securities 826 1,225 Unrealized loss on properties available-for-sale 1,438 1,266 Federal and state alternative minimum tax 4,746 1,410 Total gross deferred tax assets 65,608 71,501 Deferred tax liabilities: Investments, discount accretion (380 ) (232 ) Deferred loan and commitment costs, net (2,379 ) (1,478 ) Premises and equipment, differences in depreciation (7,340 ) (4,350 ) Undistributed REIT income (4,735 ) (1,730 ) Other (707 ) (334 ) Total gross deferred tax liabilities (15,541 ) (8,124 ) Net deferred tax assets $ 50,067 $ 63,377 |
Incentive Plan (Tables)
Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Fair Value of Stock Options Granted | The fair value of stock options granted by the Company was estimated through the use of the Black-Scholes option pricing model applying the following assumptions: 2019 2018 2017 Risk-free interest rate 2.63 % 2.65 % 2.31 % Expected option life 7 years 7 years 7 years Expected volatility 21 % 21 % 21 % Expected dividend yield 2.70 % 2.19 % 2.07 % Weighted average fair value of an option share granted during the year $ 4.47 $ 5.44 $ 5.62 Intrinsic value of options exercised during the year (in thousands) 2,994 8,513 7,882 |
Summary of Option Activity | A summary of option activity for the years ended December 31, 2019 , 2018 and 2017 is as follows: 2019 2018 2017 Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Outstanding at beginning of year 2,340,842 $ 18.25 2,489,314 $ 16.91 2,758,833 $ 14.94 Granted 461,407 25.20 135,107 27.39 335,150 29.01 Assumed in acquisition — — 491,248 21.92 — — Exercised (227,189 ) 11.24 (765,624 ) 17.69 (567,153 ) 14.39 Forfeited (149,158 ) 24.71 (9,203 ) 28.42 (35,099 ) 18.42 Expired (1,870 ) 29.59 — — (2,417 ) 11.70 Outstanding at end of year 2,424,032 $ 19.80 2,340,842 $ 18.25 2,489,314 $ 16.91 Options exercisable 1,612,946 1,604,576 1,608,762 |
Summary of Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2019 : Options Outstanding Options Exercisable Exercise Prices Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price $8.45 to 12.95 293,334 1.3 years $ 9.78 290,334 1.3 years $ 9.76 12.95 to 17.45 900,520 3.7 15.45 765,149 3.3 15.13 17.45 to 21.95 196,744 4.2 17.98 196,744 4.2 17.98 21.95 to 26.45 457,563 8.8 24.99 34,570 4.8 23.18 26.45 to 30.95 575,871 5.9 28.21 326,149 4.6 28.04 2,424,032 4.9 years $ 19.80 1,612,946 3.3 years $ 17.29 |
Summary of Granted but Unvested Stock Award Activity | A summary of the granted but unvested stock award activity for the years ended December 31, 2019 , 2018 and 2017 are as follows: 2019 2018 2017 Number Weighted Average Grant Date Fair Value Number Weighted Average Grant Date Fair Value Number Weighted Average Grant Date Fair Value Outstanding at beginning of year: 330,598 $ 25.92 169,703 $ 21.79 156,945 $ 17.25 Granted 249,651 24.80 272,668 27.52 69,175 28.70 Vested (105,307 ) 24.49 (58,754 ) 20.81 (47,379 ) 17.32 Forfeited (23,499 ) 26.38 (53,019 ) 26.60 (9,038 ) 19.14 Outstanding at end of year 451,443 $ 25.61 330,598 $ 25.92 169,703 $ 21.79 |
Commitments, Contingencies an_2
Commitments, Contingencies and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments and Contingent Liabilities | At December 31, 2019 , the following commitments and contingent liabilities existed which are not reflected in the accompanying consolidated financial statements (in thousands): December 31, 2019 Unused consumer and construction loan lines of credit (primarily floating-rate) $ 333,074 Unused commercial loan lines of credit (primarily floating-rate) 451,535 Other commitments to extend credit: Fixed-Rate 197,940 Adjustable-Rate 2,764 Floating-Rate 127,010 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Outstanding for Basic and Diluted Earnings per Share | The following reconciles average shares outstanding for basic and diluted earnings per share for the years ended December 31, 2019 , 2018 and 2017 (in thousands): December 31, 2019 2018 2017 Weighted average shares outstanding 50,701 47,266 32,490 Less: Unallocated ESOP shares (493 ) (435 ) (311 ) Unallocated incentive award shares and shares held by deferred compensation plan (42 ) (58 ) (66 ) Average basic shares outstanding 50,166 46,773 32,113 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan 580 884 1,012 Average diluted shares outstanding 50,746 47,657 33,125 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Financial Liabilities Measured at Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2019 and 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Fair Value Measurements at Reporting Date Using: Total Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs December 31, 2019 Items measured on a recurring basis: Debt securities available-for-sale $ 150,960 $ — $ 150,935 $ 25 Equity investments 10,136 10,136 — — Interest rate swap asset 10,141 — 10,141 — Interest rate swap liability (10,708 ) — (10,708 ) — Items measured on a non-recurring basis: Other real estate owned 264 — — 264 Loans measured for impairment based on the fair value of the underlying collateral 8,794 — — 8,794 December 31, 2018 Items measured on a recurring basis: Debt securities available-for-sale $ 100,717 $ — $ 100,717 $ — Equity investments 9,655 9,655 — — Interest rate swap asset 1,722 — 1,722 — Interest rate swap liability (1,813 ) — (1,813 ) — Items measured on a non-recurring basis: Other real estate owned 1,381 — — 1,381 Loans measured for impairment based on the fair value of the underlying collateral 11,639 — — 11,639 |
Book Value and Estimated Fair Value of Bank's Significant Financial Instruments Not Recorded at Fair Value | The book value and estimated fair value of the Bank’s significant financial instruments not recorded at fair value as of December 31, 2019 and December 31, 2018 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Value Level 1 Inputs Level 2 Inputs Level 3 Inputs December 31, 2019 Financial Assets: Cash and due from banks $ 120,544 $ 120,544 $ — $ — Debt securities held-to-maturity 768,873 — 774,805 2,485 Restricted equity investments 62,356 — — 62,356 Loans receivable, net and loans held-for-sale 6,207,680 — — 6,173,237 Financial Liabilities: Deposits other than time deposits 5,393,145 — 5,393,145 — Time deposits 935,632 — 936,318 — Federal Home Loan Bank advances and other borrowings 616,061 — 626,225 — Securities sold under agreements to repurchase with retail customers 71,739 71,739 — — December 31, 2018 Financial Assets: Cash and due from banks $ 120,792 $ 120,792 $ — $ — Debt securities held-to-maturity 846,810 — 830,999 1,816 Restricted equity investments 56,784 — — 56,784 Loans receivable, net and loans held-for-sale 5,579,222 — — 5,474,306 Financial Liabilities: Deposits other than time deposits 4,948,325 — 4,948,325 — Time deposits 866,244 — 853,678 — Federal Home Loan Bank advances and other borrowings 548,913 — 554,692 — Securities sold under agreements to repurchase with retail customers 61,760 61,760 — — |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below presents the fair value of derivatives not designated as hedging instruments as well as their location on the consolidated statements of financial condition (in thousands): Fair Value December 31, Balance Sheet Location 2019 2018 Other assets $ 10,141 $ 1,722 Other liabilities 10,708 1,813 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Lease Liabilities | The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 18,682 Finance lease ROU asset Premises and equipment, net 1,534 Total Lease ROU Asset $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 18,893 Finance lease liability Other borrowings 1,953 Total Lease Liability $ 20,846 |
Schedule of Weighted Average Remaining Lease Term and Discount Rate | December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 9.69 years Finance lease 9.60 years Weighted-Average Discount Rate Operating leases 3.45 % Finance lease 5.63 % |
Schedule of Lease Costs and Other Lease Information | The following table represents lease expenses and other lease information (in thousands): For Year Ended December 31, 2019 Lease Expense Operating Lease Expense $ 3,904 Finance Lease Expense: Amortization of ROU assets 274 Interest on lease liabilities (1) 174 Total $ 4,352 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,625 Operating cash flows from finance leases 174 Financing cash flows from finance leases 263 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. |
Future Minimum Payments for Finance Leases | Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended December 31, 2020 $ 295 $ 3,425 2021 295 3,256 2022 295 2,869 2023 295 2,132 2024 295 1,878 Thereafter 942 9,165 Total $ 2,417 $ 22,725 Less: Imputed Interest (464 ) (3,832 ) Total Lease Liabilities $ 1,953 $ 18,893 |
Future Minimum Payments for Operating Leases | Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended December 31, 2020 $ 295 $ 3,425 2021 295 3,256 2022 295 2,869 2023 295 2,132 2024 295 1,878 Thereafter 942 9,165 Total $ 2,417 $ 22,725 Less: Imputed Interest (464 ) (3,832 ) Total Lease Liabilities $ 1,953 $ 18,893 |
Parent-Only Financial Informa_2
Parent-Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Financial Condition | Condensed Statement of Financial Condition (in thousands) December 31, 2019 2018 Assets: Cash and due from banks $ 5,442 $ 3,930 Advances to subsidiary Bank 27,878 14,026 Investment securities 1,000 1,000 ESOP loan receivable 9,271 10,431 Investment in subsidiaries 1,206,479 1,107,539 Other assets 327 234 Total assets $ 1,250,397 $ 1,137,160 Liabilities and Stockholders’ Equity: Borrowings $ 94,848 $ 94,134 Other liabilities 2,430 3,668 Stockholders’ equity 1,153,119 1,039,358 Total liabilities and stockholders’ equity $ 1,250,397 $ 1,137,160 |
Condensed Statements of Operations | Condensed Statements of Operations (in thousands) For the Year Ended December 31, 2019 2018 2017 Dividend income – subsidiary Bank $ 79,000 $ 32,000 $ 32,000 Interest and dividend income – investment securities 63 63 63 Interest income – advances to subsidiary Bank 426 525 280 Interest income – ESOP loan receivable 321 321 321 Other income — 15 — Total income 79,810 32,924 32,664 Interest expense – borrowings 5,402 4,997 2,592 Operating expenses 2,686 2,397 1,788 Income before income taxes and undistributed earnings of subsidiary Bank 71,722 25,530 28,284 Benefit for income taxes 924 846 973 Income before undistributed earnings of subsidiary Bank 72,646 26,376 29,257 Undistributed earnings of subsidiary Bank 15,928 45,556 13,213 Net Income $ 88,574 $ 71,932 $ 42,470 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (in thousands) For the Year Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income $ 88,574 $ 71,932 $ 42,470 (Increase) decrease in advances to subsidiary Bank (13,852 ) 15,262 (23,371 ) Undistributed earnings of subsidiary Bank (15,928 ) (45,556 ) (13,213 ) Amortization of deferred costs on borrowings 261 262 121 Net amortization of purchase accounting adjustments 453 395 — Change in other assets and other liabilities (184 ) 4,076 607 Net cash provided by operating activities 59,324 46,371 6,614 Cash flows from investing activities: Increase in ESOP loan receivable — (8,400 ) — Repayments on ESOP loan receivable 1,160 1,020 234 Net cash provided by (used in) investing activities 1,160 (7,380 ) 234 Cash flows from financing activities: Dividends paid (34,241 ) (29,564 ) (19,286 ) Purchase of treasury stock (26,066 ) (10,837 ) — Exercise of stock options 1,335 5,324 3,354 Net cash used in financing activities (58,972 ) (35,077 ) (15,932 ) Net increase (decrease) in cash and due from banks 1,512 3,914 (9,084 ) Cash and due from banks at beginning of year 3,930 16 9,100 Cash and due from banks at end of year $ 5,442 $ 3,930 $ 16 |
Selected Consolidated Quarter_2
Selected Consolidated Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | For the Quarter Ended December 31 September 30 June 30 March 31 2019 Interest income $ 77,075 $ 76,887 $ 78,410 $ 76,422 Interest expense 13,721 13,495 13,573 12,034 Net interest income 63,354 63,392 64,837 64,388 Provision for loans losses 355 305 356 620 Net interest income after provision for loan losses 62,999 63,087 64,481 63,768 Other income 11,231 11,543 9,879 9,512 Operating expenses (excluding merger related and branch consolidation expenses) 43,589 40,884 43,289 41,827 Merger related and branch consolidation expenses 4,010 2,473 7,626 5,444 Income before provision for income taxes 26,631 31,273 23,445 26,009 Provision for income taxes 3,181 6,302 4,465 4,836 Net income $ 23,450 $ 24,971 $ 18,980 $ 21,173 Basic earnings per share $ 0.47 $ 0.50 $ 0.37 $ 0.43 Diluted earnings per share $ 0.47 $ 0.49 $ 0.37 $ 0.42 2018 Interest income $ 72,358 $ 71,382 $ 70,078 $ 62,837 Interest expense 10,517 9,878 8,631 7,126 Net interest income 61,841 61,504 61,447 55,711 Provision for loans losses 506 907 706 1,371 Net interest income after provision for loan losses 61,335 60,597 60,741 54,340 Other income 8,748 8,285 8,883 8,910 Operating expenses (excluding merger related expenses and branch consolidation expenses) 37,794 37,503 42,470 38,508 Merger related and branch consolidation expenses 1,288 2,030 8,434 18,310 Income before provision for income taxes 31,001 29,349 18,720 6,432 Provision for income taxes 4,269 5,278 3,018 1,005 Net income $ 26,732 $ 24,071 $ 15,702 $ 5,427 Basic earnings per share $ 0.56 $ 0.50 $ 0.33 $ 0.12 Diluted earnings per share $ 0.55 $ 0.50 $ 0.32 $ 0.12 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Minimum ratio of tier 1 capital to total adjusted assets | 4.00% | |
Minimum ratio of common equity tier 1 to risk-weighted assets | 7.00% | |
Minimum ratio of tier 1 leverage ratio, For capital adequacy purposes | 8.50% | 4.00% |
Minimum ratio of total capital to risk-weighted assets | 10.50% | |
Tier 1 capital ratio, To be well capitalized | 5.00% | |
Common equity tier 1 risk-based ratio, To be well capitalized | 6.50% | |
Tier 1 risk-based capital, To be well capitalized under prompt corrective action ratio | 8.00% | |
Total risk-based capital, To be well capitalized under prompt corrective action ratio | 10.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2019 | Dec. 31, 2013 | Jan. 01, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Maturity period of highly liquid debt instruments | Three months or less | |||
Available-for-sale securities transferred to held-to-maturity securities | $ 536,000,000 | $ 536,000,000 | ||
Unrealized net loss on securities reclassified from available-for-sale to held-to-maturity, Gross | $ 13,300,000 | $ 13,300,000 | ||
Loans past due, minimum period | 90 days | |||
Non-accrual business and commercial real estate loans | $ 250,000 | |||
Delinquency period of losses on mortgage loan to be deemed uncollectible | 120 days | |||
Allowance for loan losses | $ 0 | |||
Mortgage loans sold on real estate, final maturity period | 15 years | |||
Operating lease, right-of-use asset | $ 18,682,000 | |||
Operating lease liability | $ 18,893,000 | |||
Computer Equipment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated depreciable life of assets (years) | 3 years | |||
Furniture, Fixtures and Other Electronic Equipment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated depreciable life of assets (years) | 5 years | |||
Building Improvements | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated depreciable life of assets (years) | 10 years | |||
Buildings | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated depreciable life of assets (years) | 30 years | |||
Other assets | Accounting Standards Update 2016-02 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease, right-of-use asset | $ 20,600,000 | |||
Other liabilities | Accounting Standards Update 2016-02 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease liability | $ 20,700,000 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Regulatory Capital Amounts and Ratios (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital (to average assets), Actual Ratio | 4.00% | |||
Common equity Tier 1 (to risk-weighted assets), Actual Ratio | 7.00% | |||
Tier 1 capital (to risk-weighted assets), Actual Ratio | 5.00% | |||
Tier 1 capital (to average assets), For capital adequacy purposes Ratio | 8.50% | 4.00% | ||
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio | 10.50% | |||
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Ratio | 5.00% | |||
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Ratio | 6.50% | |||
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio | 8.00% | |||
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio | 10.00% | |||
Capital conservation buffer (as a percent) | 2.50% | 1.875% | 1.25% | 0.625% |
OceanFirst Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital (to average assets), Actual Amount | $ 779,108,000 | $ 712,900,000 | ||
Common equity Tier 1 (to risk-weighted asset), Actual Amount | 779,108,000 | 712,900,000 | ||
Tier 1 capital (to risk-weighted assets), Actual Amount | 779,108,000 | 712,900,000 | ||
Total capital (to risk-weighted assets), Actual Amount | $ 797,339,000 | $ 730,484,000 | ||
Tier 1 capital (to average assets), Actual Ratio | 10.03% | 10.01% | ||
Common equity Tier 1 (to risk-weighted assets), Actual Ratio | 12.98% | 13.39% | ||
Tier 1 capital (to risk-weighted assets), Actual Ratio | 12.98% | 13.39% | ||
Total capital (to risk-weighted assets), Actual Ratio | 13.29% | 13.72% | ||
Tier 1 capital (to average assets), For capital adequacy purposes Amount | $ 310,798,000 | $ 284,772,000 | ||
Common equity Tier 1 (to risk-weighted asset), For capital adequacy purposes Amount | 420,106,000 | 339,513,000 | ||
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Amount | 510,129,000 | 419,398,000 | ||
Total capital (to risk-weighted assets), For capital adequacy purposes Amount | $ 630,159,000 | $ 525,912,000 | ||
Tier 1 capital (to average assets), For capital adequacy purposes Ratio | 4.00% | |||
Common equity Tier 1 (to risk-weighted assets), For capital adequacy purposes Ratio | 7.00% | 6.375% | ||
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Ratio | 8.50% | 7.875% | ||
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio | 10.50% | 9.875% | ||
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Amount | $ 388,498,000 | $ 355,965,000 | ||
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Amount | 390,099,000 | 346,170,000 | ||
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Amount | 480,121,000 | 426,056,000 | ||
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Amount | $ 600,152,000 | $ 532,570,000 | ||
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Ratio | 5.00% | |||
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Ratio | 6.50% | 6.50% | ||
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio | 8.00% | 8.00% | ||
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio | 10.00% | 10.00% | ||
OceanFirst Financial Corp. | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital (to average assets), Actual Amount | $ 791,746,000 | $ 709,972,000 | ||
Common equity Tier 1 (to risk-weighted asset), Actual Amount | 729,095,000 | 647,773,000 | ||
Tier 1 capital (to risk-weighted assets), Actual Amount | 791,746,000 | 709,972,000 | ||
Total capital (to risk-weighted assets), Actual Amount | $ 844,977,000 | $ 762,556,000 | ||
Tier 1 capital (to average assets), Actual Ratio | 10.17% | 9.96% | ||
Common equity Tier 1 (to risk-weighted assets), Actual Ratio | 12.14% | 12.15% | ||
Tier 1 capital (to risk-weighted assets), Actual Ratio | 13.19% | 13.32% | ||
Total capital (to risk-weighted assets), Actual Ratio | 14.07% | 14.31% | ||
Tier 1 capital (to average assets), For capital adequacy purposes Amount | $ 311,289,000 | $ 285,199,000 | ||
Common equity Tier 1 (to risk-weighted asset), For capital adequacy purposes Amount | 420,273,000 | 339,791,000 | ||
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Amount | 510,331,000 | 419,742,000 | ||
Total capital (to risk-weighted assets), For capital adequacy purposes Amount | $ 630,409,000 | $ 526,343,000 | ||
Tier 1 capital (to average assets), For capital adequacy purposes Ratio | 4.00% | 4.00% | ||
Common equity Tier 1 (to risk-weighted assets), For capital adequacy purposes Ratio | 7.00% | 6.375% | ||
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Ratio | 8.50% | 7.875% | ||
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio | 10.50% | 9.875% |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands | Jan. 31, 2019USD ($)Property | Jan. 31, 2018USD ($) | Dec. 31, 2018Property | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Merger related expenses | $ 10,503 | $ 26,911 | $ 8,293 | |||
Capital Bank | ||||||
Business Acquisition [Line Items] | ||||||
Purchase accounting adjustments, assets | $ 494,760 | |||||
Purchase accounting adjustments, loans | 307,778 | |||||
Deposits | (449,018) | |||||
Consideration paid | 76,834 | |||||
Cash consideration paid for outstanding warrants and fractional shares | $ 353 | |||||
Number of properties in lease agreements | Property | 1 | |||||
Core deposit intangible | $ 2,662 | |||||
Sun Bancorp, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase accounting adjustments, assets | $ 2,044,054 | |||||
Purchase accounting adjustments, loans | 1,517,345 | |||||
Deposits | (1,616,073) | |||||
Consideration paid | 474,930 | |||||
Cash consideration paid for outstanding warrants and fractional shares | 72,400 | |||||
Number of properties in lease agreements | Property | 21 | |||||
Core deposit intangible | $ 11,897 | |||||
Weighted average useful life (years) | 10 years |
Business Combinations - Schedul
Business Combinations - Schedule of Merger Related Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Data processing fees | $ 2,514 | $ 6,017 | $ 3,956 |
Professional fees | 4,239 | 4,414 | 2,771 |
Employee severance payments | 2,942 | 15,660 | 1,177 |
Other/miscellaneous fees | 808 | 820 | 389 |
Merger related expenses | $ 10,503 | $ 26,911 | $ 8,293 |
Business Combinations- Summary
Business Combinations- Summary of Estimated Fair Values of Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets acquired: | ||||
Bank Owned Life Insurance | $ 237,411 | $ 222,482 | ||
Liabilities assumed: | ||||
Goodwill recorded in the merger | $ 374,632 | $ 338,442 | ||
Capital Bank | ||||
Business Acquisition [Line Items] | ||||
Total Purchase Price: | $ 76,834 | |||
Assets acquired: | ||||
Cash and cash equivalents | 59,748 | |||
Securities | 103,775 | |||
Loans | 307,778 | |||
Accrued interest receivable | 1,390 | |||
Bank Owned Life Insurance | 10,460 | |||
Deferred tax asset | 3,967 | |||
Other assets | 4,980 | |||
Core deposit intangible | 2,662 | |||
Total assets acquired | 494,760 | |||
Liabilities assumed: | ||||
Deposits | 449,018 | |||
Other liabilities | 5,121 | |||
Total liabilities assumed | 454,139 | |||
Net assets acquired | 40,621 | |||
Goodwill recorded in the merger | $ 36,213 | |||
Sun Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Total Purchase Price: | $ 474,930 | |||
Assets acquired: | ||||
Cash and cash equivalents | 68,632 | |||
Securities | 254,522 | |||
Loans | 1,517,345 | |||
Accrued interest receivable | 5,621 | |||
Bank Owned Life Insurance | 85,238 | |||
Deferred tax asset | 57,597 | |||
Other assets | 43,202 | |||
Core deposit intangible | 11,897 | |||
Total assets acquired | 2,044,054 | |||
Liabilities assumed: | ||||
Deposits | 1,616,073 | |||
Borrowings | 127,727 | |||
Other liabilities | 13,242 | |||
Total liabilities assumed | 1,757,042 | |||
Net assets acquired | 287,012 | |||
Goodwill recorded in the merger | $ 187,918 |
Business Combinations - Sched_2
Business Combinations - Schedule of Supplemental Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Bank | |||||
Business Acquisition [Line Items] | |||||
Net interest income, Actual | $ 17,090 | ||||
Provision for loan losses, Actual | 385 | ||||
Non-interest income, Actual | 1,456 | ||||
Non-interest expense, Actual | 12,482 | ||||
Provision (benefit) for income taxes, Actual | 1,193 | ||||
Net income, Actual | $ 4,486 | ||||
Sun Bancorp, Inc. | |||||
Business Acquisition [Line Items] | |||||
Net interest income, Actual | $ 63,889 | ||||
Provision for loan losses, Actual | 1,215 | ||||
Non-interest income, Actual | 7,961 | ||||
Non-interest expense, Actual | 35,184 | ||||
Provision (benefit) for income taxes, Actual | 7,090 | ||||
Net income, Actual | $ 28,361 | ||||
Ocean Shore Holdings Co. | |||||
Business Acquisition [Line Items] | |||||
Net interest income, Pro forma | $ 257,703 | $ 266,014 | $ 260,520 | ||
Provision for loan losses, Pro forma | 1,636 | 3,070 | 3,239 | ||
Non-interest income, Pro forma | 42,277 | 37,554 | 40,914 | ||
Non-interest expense, Pro forma | 190,934 | 214,713 | 201,605 | ||
Provision (benefit) for income taxes, Pro forma | 18,798 | 15,100 | 26,111 | ||
Net income, Pro forma | $ 88,612 | $ 70,685 | $ 70,479 | ||
Fully diluted, Pro forma | $ 1.74 | $ 1.36 | $ 1.37 |
Business Combinations - Sched_3
Business Combinations - Schedule of Future Amortization Expense (Details) - Core Deposit $ in Thousands | Dec. 31, 2019USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2020 | $ 3,596 |
2021 | 3,121 |
2022 | 2,646 |
2023 | 2,171 |
2024 | 1,695 |
Thereafter | 2,378 |
Total | $ 15,607 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | $ 149,640 | $ 101,522 |
Available-for-sale, Gross Unrealized Gains | 1,413 | 163 |
Available-for-sale, Gross Unrealized Loss | (93) | (968) |
Debt securities, available-for sale, at fair value | 150,960 | 100,717 |
Held-to-maturity, Amortized Cost | 772,975 | 851,903 |
Held-to-maturity, Gross Unrealized Gains | 8,224 | 1,303 |
Held-to-maturity, Gross Unrealized Losses | (3,909) | (20,391) |
Estimated Fair Value | 777,290 | 832,815 |
Total, Amortized Cost | 922,615 | 953,425 |
Total, Gross Unrealized Gains | 9,637 | 1,466 |
Total, Gross Unrealized Losses | (4,002) | (21,359) |
Total, Estimated Fair Value | 928,250 | 933,532 |
Investment Securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 149,145 | |
Available-for-sale, Gross Unrealized Gains | 1,408 | |
Available-for-sale, Gross Unrealized Loss | (93) | |
Debt securities, available-for sale, at fair value | 150,460 | |
Held-to-maturity, Amortized Cost | 208,961 | 205,796 |
Held-to-maturity, Gross Unrealized Gains | 2,384 | 193 |
Held-to-maturity, Gross Unrealized Losses | (2,629) | (6,811) |
Estimated Fair Value | 208,716 | 199,178 |
U.S. Agency Obligations | Investment Securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 149,120 | 100,524 |
Available-for-sale, Gross Unrealized Gains | 1,408 | 163 |
Available-for-sale, Gross Unrealized Loss | (93) | (963) |
Debt securities, available-for sale, at fair value | 150,435 | 99,724 |
Held-to-maturity, Amortized Cost | 4,984 | 14,975 |
Held-to-maturity, Gross Unrealized Gains | 14 | 0 |
Held-to-maturity, Gross Unrealized Losses | 0 | (130) |
Estimated Fair Value | 4,998 | 14,845 |
State and Municipal Obligations | Investment Securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 25 | |
Available-for-sale, Gross Unrealized Gains | 0 | |
Available-for-sale, Gross Unrealized Loss | 0 | |
Debt securities, available-for sale, at fair value | 25 | |
Held-to-maturity, Amortized Cost | 124,430 | 123,987 |
Held-to-maturity, Gross Unrealized Gains | 1,537 | 67 |
Held-to-maturity, Gross Unrealized Losses | (208) | (1,697) |
Estimated Fair Value | 125,759 | 122,357 |
Corporate Debt Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 39,836 | |
Estimated Fair Value | 37,628 | |
Corporate Debt Securities | Investment Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 79,547 | 66,834 |
Held-to-maturity, Gross Unrealized Gains | 833 | 126 |
Held-to-maturity, Gross Unrealized Losses | (2,421) | (4,984) |
Estimated Fair Value | 77,959 | 61,976 |
Mortgage-Backed Securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 564,014 | 646,107 |
Held-to-maturity, Gross Unrealized Gains | 5,840 | 1,110 |
Held-to-maturity, Gross Unrealized Losses | (1,280) | (13,580) |
Estimated Fair Value | 568,574 | 633,637 |
Mortgage-Backed Securities | FNMA | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 495 | 998 |
Available-for-sale, Gross Unrealized Gains | 5 | 0 |
Available-for-sale, Gross Unrealized Loss | 0 | (5) |
Debt securities, available-for sale, at fair value | 500 | 993 |
Held-to-maturity, Amortized Cost | 244,428 | 277,266 |
Held-to-maturity, Gross Unrealized Gains | 2,680 | 753 |
Held-to-maturity, Gross Unrealized Losses | (493) | (6,030) |
Estimated Fair Value | 246,615 | 271,989 |
Mortgage-Backed Securities | FHLMC | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 206,985 | 237,703 |
Held-to-maturity, Gross Unrealized Gains | 2,221 | 159 |
Held-to-maturity, Gross Unrealized Losses | (524) | (5,110) |
Estimated Fair Value | 208,682 | 232,752 |
Mortgage-Backed Securities | GNMA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 110,661 | 127,611 |
Held-to-maturity, Gross Unrealized Gains | 939 | 198 |
Held-to-maturity, Gross Unrealized Losses | (212) | (2,360) |
Estimated Fair Value | 111,388 | 125,449 |
Mortgage-Backed Securities | SBA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 1,940 | 3,527 |
Held-to-maturity, Gross Unrealized Gains | 0 | 0 |
Held-to-maturity, Gross Unrealized Losses | (51) | (80) |
Estimated Fair Value | $ 1,889 | $ 3,447 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 | |
Investment [Line Items] | ||||
Available-for-sale securities transferred to held-to-maturity securities | $ 536,000 | $ 536,000 | ||
Unrealized net loss on securities reclassified from available-for-sale to held-to-maturity, Gross | $ 13,300 | $ 13,300 | ||
Realized gains on sale of investment securities | $ 0 | $ 248 | ||
Corporate debt securities, callable, amortized cost | 59,400 | |||
Corporate debt securities, callable, estimated fair value | 57,400 | |||
Estimated fair value of securities pledged for deposits and other purposes | 475,600 | 563,100 | ||
Reverse Repurchase Agreements | ||||
Investment [Line Items] | ||||
Estimated fair value of securities pledged for reverse repurchase agreements | $ 81,400 | $ 74,100 |
Securities - Carrying Value of
Securities - Carrying Value of Held-to-Maturity Investment Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost | $ 772,975 | $ 851,903 |
Net loss on date of transfer from available-for-sale | (13,347) | (13,347) |
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 9,245 | 8,254 |
Carrying value | $ 768,873 | $ 846,810 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Amortized Cost | |
Less than one year | $ 69,635 |
Due after one year through five years | 203,081 |
Due after five years through ten years | 71,590 |
Due after ten years | 13,800 |
Total Amortized Cost | 358,106 |
Estimated Fair Value | |
Less than one year | 69,723 |
Due after one year through five years | 205,520 |
Due after five years through ten years | 70,118 |
Due after ten years | 13,815 |
Total Estimated Fair Value | $ 359,176 |
Securities - Estimated Fair Val
Securities - Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less than 12 months, Estimated Fair Value | $ 25,021 | $ 1,978 |
Available-for-sale, Less than 12 months, Unrealized Losses | (54) | (8) |
Available-for-sale, 12 months or Longer, Estimated Fair Value | 22,451 | 66,438 |
Available-for-sale, 12 months or longer, Unrealized Losses | (39) | (960) |
Available-for-sale, Total, Estimated Fair Value | 47,472 | 68,416 |
Available-for-sale, Total, Unrealized Losses | (93) | (968) |
Held-to-maturity, Less than 12 months, Estimated Fair Value | 67,314 | 118,203 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (452) | (924) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 151,085 | 556,536 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (3,457) | (19,467) |
Held-to-maturity, Total, Estimated Fair Value | 218,399 | 674,739 |
Held-to-maturity, Total, Unrealized Losses | (3,909) | (20,391) |
Total securities, Less than 12 months, Estimated Fair Value | 92,335 | 120,181 |
Total securities, Less than 12 months, Unrealized Losses | (506) | (932) |
Total securities, 12 months or longer, Estimated Fair Value | 173,536 | 622,974 |
Total securities, 12 months or longer, Unrealized Losses | (3,496) | (20,427) |
Total securities, Estimated Fair Value | 265,871 | 743,155 |
Total securities, Unrealized Losses | (4,002) | (21,359) |
Other investments | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less than 12 months, Estimated Fair Value | 993 | |
Available-for-sale, Less than 12 months, Unrealized Losses | (5) | |
Available-for-sale, 12 months or Longer, Estimated Fair Value | 0 | |
Available-for-sale, 12 months or longer, Unrealized Losses | 0 | |
Available-for-sale, Total, Estimated Fair Value | 993 | |
Available-for-sale, Total, Unrealized Losses | (5) | |
Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 50,279 | 112,877 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (181) | (899) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 98,926 | 392,559 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (1,099) | (12,681) |
Held-to-maturity, Total, Estimated Fair Value | 149,205 | 505,436 |
Held-to-maturity, Total, Unrealized Losses | (1,280) | (13,580) |
Investment Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 17,035 | 5,326 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (271) | (25) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 52,159 | 163,977 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (2,358) | (6,786) |
Held-to-maturity, Total, Estimated Fair Value | 69,194 | 169,303 |
Held-to-maturity, Total, Unrealized Losses | (2,629) | (6,811) |
Investment Securities | U.S. Agency Obligations | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less than 12 months, Estimated Fair Value | 25,021 | 985 |
Available-for-sale, Less than 12 months, Unrealized Losses | (54) | (3) |
Available-for-sale, 12 months or Longer, Estimated Fair Value | 22,451 | 66,438 |
Available-for-sale, 12 months or longer, Unrealized Losses | (39) | (960) |
Available-for-sale, Total, Estimated Fair Value | 47,472 | 67,423 |
Available-for-sale, Total, Unrealized Losses | (93) | (963) |
Held-to-maturity, Less than 12 months, Estimated Fair Value | 0 | |
Held-to-maturity, Less than 12 months, Unrealized Losses | 0 | |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 14,845 | |
Held-to-maturity, 12 months or longer, Unrealized Losses | (130) | |
Held-to-maturity, Total, Estimated Fair Value | 14,845 | |
Held-to-maturity, Total, Unrealized Losses | 0 | (130) |
Investment Securities | State and Municipal Obligations | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 7,308 | 2,856 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (58) | (4) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 14,531 | 106,073 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (150) | (1,693) |
Held-to-maturity, Total, Estimated Fair Value | 21,839 | 108,929 |
Held-to-maturity, Total, Unrealized Losses | (208) | (1,697) |
Investment Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 9,727 | 2,470 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (213) | (21) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 37,628 | 43,059 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (2,208) | (4,963) |
Held-to-maturity, Total, Estimated Fair Value | 47,355 | 45,529 |
Held-to-maturity, Total, Unrealized Losses | (2,421) | (4,984) |
FHLMC | Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 6,329 | 46,615 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (29) | (159) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 38,641 | 147,763 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (495) | (4,951) |
Held-to-maturity, Total, Estimated Fair Value | 44,970 | 194,378 |
Held-to-maturity, Total, Unrealized Losses | (524) | (5,110) |
FNMA | Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 13,682 | 27,594 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (59) | (125) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 38,568 | 185,328 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (434) | (5,905) |
Held-to-maturity, Total, Estimated Fair Value | 52,250 | 212,922 |
Held-to-maturity, Total, Unrealized Losses | (493) | (6,030) |
GNMA | Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 30,268 | 35,221 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (93) | (535) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 19,828 | 59,468 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (119) | (1,825) |
Held-to-maturity, Total, Estimated Fair Value | 50,096 | 94,689 |
Held-to-maturity, Total, Unrealized Losses | (212) | (2,360) |
SBA | Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 0 | 3,447 |
Held-to-maturity, Less than 12 months, Unrealized Losses | 0 | (80) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 1,889 | 0 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (51) | 0 |
Held-to-maturity, Total, Estimated Fair Value | 1,889 | 3,447 |
Held-to-maturity, Total, Unrealized Losses | $ (51) | $ (80) |
Securities - Amortized Cost, Es
Securities - Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 772,975 | $ 851,903 |
Estimated Fair Value | 777,290 | $ 832,815 |
Chase Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 10,000 | |
Estimated Fair Value | $ 9,632 | |
Credit Rating Moody's/S&P | Baa1/BBB- | |
Wells Fargo Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,744 | |
Credit Rating Moody's/S&P | A1/BBB | |
Huntington Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,500 | |
Credit Rating Moody's/S&P | Baa2/BB+ | |
Keycorp Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,625 | |
Credit Rating Moody's/S&P | Baa2/BB+ | |
PNC Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,700 | |
Credit Rating Moody's/S&P | Baa1/BBB- | |
State Street Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 3,332 | |
Estimated Fair Value | $ 3,199 | |
Credit Rating Moody's/S&P | A3/BBB | |
SunTrust Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,725 | |
Credit Rating Moody's/S&P | Not Rated/BBB- | |
Southern Company | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,504 | |
Estimated Fair Value | $ 1,503 | |
Credit Rating Moody's/S&P | Baa2/BBB+ |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Loans Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | $ 6,201,387 | $ 5,579,812 | ||
Purchased credit impaired (“PCI”) loans | 13,265 | 8,901 | ||
Total loans | 6,214,652 | 5,588,713 | ||
Deferred origination costs, net | 9,880 | 7,086 | ||
Allowance for loan losses | (16,852) | (16,577) | $ (15,721) | $ (15,183) |
Loans receivable, net | 6,207,680 | 5,579,222 | ||
Commercial: | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 3,472,730 | 3,060,579 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,728,657 | 2,519,233 | ||
Allowance for loan losses | (591) | (486) | $ (614) | |
Commercial and industrial | Commercial: | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 396,091 | 304,994 | ||
Commercial real estate – owner occupied | Commercial: | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 791,941 | 740,375 | ||
Commercial real estate - investor | Commercial: | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,284,698 | 2,015,210 | ||
Residential real estate | Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,320,821 | 2,044,286 | ||
Home equity loans and lines | Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 318,414 | 353,386 | ||
Other consumer | Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | $ 89,422 | $ 121,561 |
Loans Receivable, Net - Analysi
Loans Receivable, Net - Analysis of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance at beginning of year | $ 16,577 | $ 15,721 | $ 16,577 | $ 15,721 | $ 15,183 | ||||||
Provision charged to operations | $ 355 | $ 305 | $ 356 | $ 620 | $ 506 | $ 907 | $ 706 | $ 1,371 | 1,636 | 3,490 | 4,445 |
Charge-offs | (2,804) | (3,841) | (5,384) | ||||||||
Recoveries | 1,443 | 1,207 | 1,477 | ||||||||
Balance at end of year | $ 16,852 | $ 16,577 | $ 16,852 | $ 16,577 | $ 15,721 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans pledged | $ 3,851,000,000 | ||
Impaired loans on non-accrual commercial real estate, multi-family, land, construction, commercial and industrial loans | 250,000 | ||
Impaired loan portfolio total | 26,510,000 | $ 29,797,000 | |
Impaired Financing Receivable, Related Allowance | 476,000 | 0 | |
Specific reserves to loans accruing troubled debt restructurings | 476,000 | 0 | $ 0 |
Average balance of impaired loans | 29,400,000 | 38,100,000 | 39,800,000 |
Interest income on non-accrual loans | 372,000 | 419,000 | 639,000 |
Troubled debt restructuring loans | 24,600,000 | 26,500,000 | |
Troubled debt restructuring loans with accrual interest | 18,000,000 | 22,900,000 | 33,300,000 |
Commitments to lend additional funds to borrowers | 0 | ||
Loans with non-accrual of interest | 17,849,000 | 17,415,000 | 20,900,000 |
Financing receivables 90 days past due and still accruing | 0 | ||
Non-accrual loan total troubled debt restructurings | 6,600,000 | 3,600,000 | $ 8,800,000 |
Allowance for loan losses | 0 | ||
Colonial American Bank | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | ||
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans with non-accrual of interest | 7,181,000 | $ 7,389,000 | |
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 1,800,000 | ||
Foreclosed property held | $ 51,000 |
Loans Receivable, Net - Allowan
Loans Receivable, Net - Allowance for Loan Loses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 16,577 | $ 15,721 | $ 15,183 |
Provision (benefit) charged to operations | 1,636 | 3,490 | |
Charge-offs | (2,804) | (3,841) | (5,384) |
Recoveries | 1,443 | 1,207 | 1,477 |
Balance at end of year | 16,852 | 16,577 | 15,721 |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 476 | 0 | |
Collectively evaluated for impairment | 16,376 | 16,577 | |
Total ending allowance balance | 16,852 | 16,577 | |
Loans: | |||
Loans individually evaluated for impairment | 26,510 | 29,797 | |
Loans collectively evaluated for impairment | 6,174,877 | 5,550,015 | |
Total | 6,201,387 | 5,579,812 | |
Commercial and industrial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 1,609 | 1,801 | |
Provision (benefit) charged to operations | (311) | (66) | |
Charge-offs | 0 | (230) | |
Recoveries | 160 | 104 | |
Balance at end of year | 1,458 | 1,609 | 1,801 |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,458 | 1,609 | |
Total ending allowance balance | 1,458 | 1,609 | |
Loans: | |||
Loans individually evaluated for impairment | 243 | 1,626 | |
Loans collectively evaluated for impairment | 395,848 | 303,368 | |
Total | 396,091 | 304,994 | |
Commercial real estate – owner occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 2,277 | 3,175 | |
Provision (benefit) charged to operations | 947 | (783) | |
Charge-offs | (663) | (314) | |
Recoveries | 332 | 199 | |
Balance at end of year | 2,893 | 2,277 | 3,175 |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 474 | 0 | |
Collectively evaluated for impairment | 2,419 | 2,277 | |
Total ending allowance balance | 2,893 | 2,277 | |
Loans: | |||
Loans individually evaluated for impairment | 6,163 | 5,395 | |
Loans collectively evaluated for impairment | 785,778 | 734,980 | |
Total | 791,941 | 740,375 | |
Commercial real estate - investor | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 8,770 | 7,952 | |
Provision (benefit) charged to operations | 638 | 2,550 | |
Charge-offs | (236) | (1,939) | |
Recoveries | 711 | 207 | |
Balance at end of year | 9,883 | 8,770 | 7,952 |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 9,883 | 8,770 | |
Total ending allowance balance | 9,883 | 8,770 | |
Loans: | |||
Loans individually evaluated for impairment | 5,584 | 9,738 | |
Loans collectively evaluated for impairment | 2,279,114 | 2,005,472 | |
Total | 2,284,698 | 2,015,210 | |
Residential real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 2,413 | 1,804 | |
Provision (benefit) charged to operations | 792 | 1,056 | |
Charge-offs | (1,299) | (1,021) | |
Recoveries | 96 | 574 | |
Balance at end of year | 2,002 | 2,413 | 1,804 |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 2,002 | 2,413 | |
Total ending allowance balance | 2,002 | 2,413 | |
Loans: | |||
Loans individually evaluated for impairment | 11,009 | 10,064 | |
Loans collectively evaluated for impairment | 2,309,812 | 2,034,222 | |
Total | 2,320,821 | 2,044,286 | |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 486 | 614 | |
Provision (benefit) charged to operations | 567 | 86 | |
Charge-offs | (606) | (337) | |
Recoveries | 144 | 123 | |
Balance at end of year | 591 | 486 | 614 |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 2 | 0 | |
Collectively evaluated for impairment | 589 | 486 | |
Total ending allowance balance | 591 | 486 | |
Loans: | |||
Loans individually evaluated for impairment | 3,511 | 2,974 | |
Loans collectively evaluated for impairment | 404,325 | 471,973 | |
Total | 407,836 | 474,947 | |
Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 1,022 | 375 | |
Provision (benefit) charged to operations | (997) | 647 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Balance at end of year | 25 | 1,022 | $ 375 |
Ending allowance balance attributed to loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 25 | 1,022 | |
Total ending allowance balance | 25 | 1,022 | |
Loans: | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 0 | 0 | |
Total | $ 0 | $ 0 |
Loans Receivable, Net - Summa_2
Loans Receivable, Net - Summary of Impaired Loans Excluding PCI Loans (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Impaired loans with no allocated allowance for loan losses | $ 24,313,000 | $ 29,797,000 |
Impaired loans with allocated allowance for loan losses | 2,197,000 | 0 |
Total | 26,510,000 | 29,797,000 |
Amount of the allowance for loan losses allocated | $ 476,000 | $ 0 |
Loans Receivable, Net - Summa_3
Loans Receivable, Net - Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 26,510,000 | $ 29,797,000 |
Allowance for Loan Losses Allocated | 476,000 | 0 |
With no related allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 25,735,000 | 33,538,000 |
Recorded Investment | 24,313,000 | 29,797,000 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 27,256,000 | 36,824,000 |
Interest Income Recognized | 1,132,000 | 1,416,000 |
With an allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,378,000 | 0 |
Recorded Investment | 2,197,000 | 0 |
Allowance for Loan Losses Allocated | 476,000 | 0 |
Average Recorded Investment | 2,173,000 | 1,259,000 |
Interest Income Recognized | 138,000 | 0 |
Commercial and industrial | With no related allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 265,000 | 1,750,000 |
Recorded Investment | 243,000 | 1,626,000 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 523,000 | 1,075,000 |
Interest Income Recognized | 5,000 | 107,000 |
Commercial and industrial | With an allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 589,000 |
Interest Income Recognized | 0 | 0 |
Commercial real estate – owner occupied | With no related allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 4,062,000 | 5,413,000 |
Recorded Investment | 3,968,000 | 5,395,000 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 4,171,000 | 8,264,000 |
Interest Income Recognized | 179,000 | 297,000 |
Commercial real estate – owner occupied | With an allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,376,000 | 0 |
Recorded Investment | 2,195,000 | 0 |
Allowance for Loan Losses Allocated | 474,000 | 0 |
Average Recorded Investment | 2,173,000 | 0 |
Interest Income Recognized | 138,000 | 0 |
Commercial real estate - investor | With no related allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 6,665,000 | 12,633,000 |
Recorded Investment | 5,584,000 | 9,738,000 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 9,012,000 | 13,934,000 |
Interest Income Recognized | 222,000 | 382,000 |
Commercial real estate - investor | With an allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 670,000 |
Interest Income Recognized | 0 | 0 |
Residential real estate | With no related allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 11,009,000 | 10,441,000 |
Recorded Investment | 11,009,000 | 10,064,000 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 10,275,000 | 10,787,000 |
Interest Income Recognized | 548,000 | 475,000 |
Residential real estate | With an allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Consumer | With no related allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 3,734,000 | 3,301,000 |
Recorded Investment | 3,509,000 | 2,974,000 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 3,275,000 | 2,764,000 |
Interest Income Recognized | 178,000 | 155,000 |
Consumer | With an allowance recorded: | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,000 | 0 |
Recorded Investment | 2,000 | 0 |
Allowance for Loan Losses Allocated | 2,000 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
Loans Receivable, Net - Recorde
Loans Receivable, Net - Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Past Due [Line Items] | |||
Loans with non-accrual of interest | $ 17,849 | $ 17,415 | $ 20,900 |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Loans with non-accrual of interest | 2,733 | 2,914 | |
Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Loans with non-accrual of interest | 207 | 1,587 | |
Commercial real estate – owner occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Loans with non-accrual of interest | 4,811 | 501 | |
Commercial real estate - investor | |||
Financing Receivable, Past Due [Line Items] | |||
Loans with non-accrual of interest | 2,917 | 5,024 | |
Residential real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Loans with non-accrual of interest | $ 7,181 | $ 7,389 |
Loans Receivable, Net - Aging o
Loans Receivable, Net - Aging of Recorded Investment in Past Due Loans Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 26,636 | $ 39,728 |
90 Days or Greater Past Due | 9,286 | 9,573 |
Loans Not Past Due | 6,174,751 | 5,540,084 |
Total | 6,201,387 | 5,579,812 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11,231 | 21,482 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6,119 | 8,673 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 307 | 0 |
90 Days or Greater Past Due | 207 | 0 |
Loans Not Past Due | 395,784 | 304,994 |
Total | 396,091 | 304,994 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 100 | 0 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,784 | 5,537 |
90 Days or Greater Past Due | 1,040 | 197 |
Loans Not Past Due | 788,157 | 734,838 |
Total | 791,941 | 740,375 |
Commercial real estate – owner occupied | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,541 | 5,104 |
Commercial real estate – owner occupied | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,203 | 236 |
Commercial real estate - investor | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,111 | 8,943 |
90 Days or Greater Past Due | 2,792 | 2,461 |
Loans Not Past Due | 2,280,587 | 2,006,267 |
Total | 2,284,698 | 2,015,210 |
Commercial real estate - investor | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 381 | 3,979 |
Commercial real estate - investor | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 938 | 2,503 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 14,507 | 19,629 |
90 Days or Greater Past Due | 2,859 | 4,451 |
Loans Not Past Due | 2,306,314 | 2,024,657 |
Total | 2,320,821 | 2,044,286 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 8,161 | 10,199 |
Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,487 | 4,979 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,927 | 5,619 |
90 Days or Greater Past Due | 2,388 | 2,464 |
Loans Not Past Due | 403,909 | 469,328 |
Total | 407,836 | 474,947 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,048 | 2,200 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 491 | $ 955 |
Loans Receivable, Net - Risk Ca
Loans Receivable, Net - Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | $ 3,472,730 | $ 3,060,579 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 3,374,850 | 2,964,585 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 30,201 | 29,504 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 67,679 | 66,490 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 396,091 | 304,994 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 378,154 | 291,265 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 2,657 | 2,777 |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 15,280 | 10,952 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 0 | 0 |
Commercial real estate – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 791,941 | 740,375 |
Commercial real estate – owner occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 756,592 | 706,825 |
Commercial real estate – owner occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 3,985 | 3,000 |
Commercial real estate – owner occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 31,364 | 30,550 |
Commercial real estate – owner occupied | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 0 | 0 |
Commercial real estate - investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 2,284,698 | 2,015,210 |
Commercial real estate - investor | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 2,240,104 | 1,966,495 |
Commercial real estate - investor | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 23,559 | 23,727 |
Commercial real estate - investor | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | 21,035 | 24,988 |
Commercial real estate - investor | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loan | $ 0 | $ 0 |
Loans Receivable, Net - Recor_2
Loans Receivable, Net - Recorded Investment in Residential and Consumer Loans Based on Payment Activity Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Non-performing | $ 17,849 | $ 17,415 | $ 20,900 |
Total | 6,201,387 | 5,579,812 | |
Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Non-performing | 2,733 | 2,914 | |
Total | 407,836 | 474,947 | |
Consumer | Residential Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Performing | 405,103 | 472,033 | |
Non-performing | 2,733 | 2,914 | |
Total | 407,836 | 474,947 | |
Residential real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Non-performing | 7,181 | 7,389 | |
Total | 2,320,821 | 2,044,286 | |
Residential real estate | Residential Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Performing | 2,313,640 | 2,036,897 | |
Non-performing | 7,181 | 7,389 | |
Total | $ 2,320,821 | $ 2,044,286 |
Loans Receivable, Net - Trouble
Loans Receivable, Net - Troubled Debt Restructurings (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)SecurityLoan | Dec. 31, 2018USD ($)SecurityLoan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 1 | |
Pre-modification Recorded Investment | $ 49 | |
Post-modification Recorded Investment | $ 50 | |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 2 | |
Pre-modification Recorded Investment | $ 496 | |
Post-modification Recorded Investment | $ 502 | |
Commercial real estate – owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 1 | |
Pre-modification Recorded Investment | $ 154 | |
Post-modification Recorded Investment | $ 198 | |
Commercial real estate – investor | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 1 | 3 |
Pre-modification Recorded Investment | $ 272 | $ 1,395 |
Post-modification Recorded Investment | $ 393 | $ 1,435 |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 6 | 5 |
Pre-modification Recorded Investment | $ 1,036 | $ 558 |
Post-modification Recorded Investment | $ 1,091 | $ 598 |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 7 | |
Pre-modification Recorded Investment | $ 663 | |
Post-modification Recorded Investment | $ 683 | |
Number of Loans, Which Subsequently Defaulted | SecurityLoan | 1 | 1 |
Recorded Investment, Which Subsequently Defaulted | $ 115 | $ 29 |
Loans Receivable, Net - PCI Loa
Loans Receivable, Net - PCI Loans Acquired (Detail) - Capital Bank $ in Thousands | Jan. 31, 2019USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually required principal and interest | $ 6,877 |
Contractual cash flows not expected to be collected (non-accretable discount) | (769) |
Expected cash flows to be collected at acquisition | 6,108 |
Interest component of expected cash flows (accretable yield) | (691) |
Fair value of acquired loans | $ 5,417 |
Loans Receivable, Net - Summa_4
Loans Receivable, Net - Summary of Changes in Accretable Yield (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 3,630 | $ 161 |
Acquisition | 691 | 2,646 |
Accretion | (2,613) | (2,257) |
Reclassification from non-accretable difference | 1,317 | 3,080 |
Ending balance | $ 3,025 | $ 3,630 |
Interest and Dividends Receiv_3
Interest and Dividends Receivable - Summary of Interest and Dividends Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Loans | $ 17,664 | $ 15,905 |
Investment securities and other | 2,827 | 2,490 |
Mortgage-backed securities | 1,183 | 1,294 |
Interest and dividends receivable | $ 21,674 | $ 19,689 |
Premises and Equipment, Net - S
Premises and Equipment, Net - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 167,538 | |
Finance lease | $ 2,572 | |
Total | 162,267 | |
Accumulated depreciation and amortization | (59,576) | |
Accumulated depreciation and amortization | (56,329) | |
Premises and equipment, net | 102,691 | |
Premises and equipment, net | 111,209 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 24,446 | 25,415 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 97,653 | 101,211 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 9,274 | 7,465 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 25,558 | 22,373 |
Finance lease | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 8,630 | |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 2,764 | $ 2,444 |
Premises and Equipment, Net - N
Premises and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 8.2 | $ 8.7 | $ 6.3 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Accrued interest payable | $ 238 | $ 430 |
Time deposits, $100,000 and over | $ 150,600 | $ 124,300 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits Including Accrued Interest Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amount | ||
Non-interest-bearing accounts | $ 1,377,396 | $ 1,151,362 |
Interest-bearing checking accounts, Amount | 2,539,428 | 2,350,106 |
Money market deposit accounts | 578,147 | 569,680 |
Savings accounts | 898,174 | 877,177 |
Time deposits | 935,632 | 866,244 |
Total deposits | $ 6,328,777 | $ 5,814,569 |
Weighted Average Cost | ||
Non-interest-bearing accounts | 0.00% | 0.00% |
Interest-bearing checking accounts | 0.68% | 0.51% |
Money market deposit accounts | 0.68% | 0.66% |
Savings accounts | 0.13% | 0.12% |
Time deposits | 1.82% | 1.50% |
Total deposits | 0.62% | 0.51% |
Deposits - Summary of Time Depo
Deposits - Summary of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2020 | $ 522,246 | |
2021 | 257,040 | |
2022 | 104,241 | |
2023 | 34,341 | |
2024 | 16,902 | |
Thereafter | 862 | |
Total time deposits | $ 935,632 | $ 866,244 |
Deposits - Summary of Interest
Deposits - Summary of Interest Expense on Deposits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |||
Interest-bearing checking accounts | $ 16,820 | $ 9,219 | $ 4,533 |
Money market deposit accounts | 4,919 | 2,818 | 1,213 |
Savings accounts | 1,195 | 990 | 345 |
Time deposits | 15,498 | 9,551 | 6,245 |
Total interest expense on deposits | $ 38,432 | $ 22,578 | $ 12,336 |
Borrowed Funds - Summary of Bor
Borrowed Funds - Summary of Borrowed Funds (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Federal Home Loan Bank advances, Amount | $ 519,260 | $ 449,383 |
Securities sold under agreements to repurchase, Amount | 71,739 | 61,760 |
Other borrowings, Amount | 96,801 | 99,530 |
Borrowed funds, Amount | $ 687,800 | $ 610,673 |
Weighted Average | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Federal Home Loan Bank advances, Weighted Average Rate | 1.84% | 2.15% |
Securities sold under agreements to repurchase, Weighted Average Rate | 0.42% | 0.30% |
Other borrowings, Weighted Average Rate | 4.64% | 5.24% |
Borrowed funds, Weighted Average Rate | 2.09% | 2.47% |
Borrowed Funds - Summary of Fed
Borrowed Funds - Summary of Federal Home Loan Bank Advances and Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Average balance | $ 387,925 | $ 382,464 |
Maximum amount outstanding at any month end | $ 519,260 | $ 675,802 |
Average interest rate for the year | 2.18% | 2.06% |
Reverse Repurchase Agreements | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Average balance | $ 64,525 | $ 66,340 |
Maximum amount outstanding at any month end | $ 71,739 | $ 82,463 |
Average interest rate for the year | 0.43% | 0.25% |
Amortized cost of collateral, Mortgage-backed securities | $ 80,436 | $ 75,425 |
Estimated fair value of collateral, Mortgage-backed securities | $ 81,365 | $ 74,144 |
Borrowed Funds - Contractual Ma
Borrowed Funds - Contractual Maturities of FHLB Advances and Reverse Repurchase Agreements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
FHLB Advances | ||
2020 | $ 359,724 | |
2021 | 24,743 | |
2022 | 92,793 | |
2023 | 0 | |
2024 | 42,000 | |
Total | 519,260 | $ 449,383 |
Reverse Repurchase Agreements | ||
Reverse Repurchase Agreements | ||
2020 | 71,739 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Total | $ 71,739 |
Borrowed Funds - Schedule of Ot
Borrowed Funds - Schedule of Other Borrowings (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Capital lease | |
Debt Instrument [Line Items] | |
Stated Value | $ 109,453 |
Carrying Value | 96,801 |
Maturing September 30, 2026 | Subordinated debt | |
Debt Instrument [Line Items] | |
Stated Value | 35,000 |
Carrying Value | $ 34,542 |
Debt instrument, interest rate, stated percentage | 5.125% |
Maturing September 30, 2026 | Subordinated debt | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Floating rate percentage | 392.00% |
Maturing August 1, 2036 | Trust preferred | |
Debt Instrument [Line Items] | |
Stated Value | $ 5,000 |
Carrying Value | $ 5,000 |
Maturing August 1, 2036 | Trust preferred | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Floating rate percentage | 165.00% |
Maturing March 15, 2036 | Trust preferred | |
Debt Instrument [Line Items] | |
Stated Value | $ 30,000 |
Carrying Value | $ 22,645 |
Maturing March 15, 2036 | Trust preferred | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Floating rate percentage | 135.00% |
Maturing November 1, 2036 | Trust preferred | |
Debt Instrument [Line Items] | |
Stated Value | $ 7,500 |
Carrying Value | $ 7,500 |
Maturing November 1, 2036 | Trust preferred | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Floating rate percentage | 166.00% |
Maturing April 19, 2037 | Trust preferred | |
Debt Instrument [Line Items] | |
Stated Value | $ 10,000 |
Carrying Value | $ 7,652 |
Maturing April 19, 2037 | Trust preferred | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Floating rate percentage | 153.00% |
Maturing September 1, 2037 | Trust preferred | |
Debt Instrument [Line Items] | |
Stated Value | $ 10,000 |
Carrying Value | $ 10,000 |
Maturing September 1, 2037 | Trust preferred | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Floating rate percentage | 175.00% |
Maturing October 1, 2037 | Trust preferred | |
Debt Instrument [Line Items] | |
Stated Value | $ 10,000 |
Carrying Value | $ 7,509 |
Maturing October 1, 2037 | Trust preferred | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Floating rate percentage | 139.00% |
Maturing June 30, 2029 | Capital lease | |
Debt Instrument [Line Items] | |
Stated Value | $ 1,953 |
Carrying Value | $ 1,953 |
Debt instrument, interest rate, stated percentage | 5.625% |
Borrowed Funds - Interest Expen
Borrowed Funds - Interest Expense on Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Federal Home Loan Bank advances | $ 8,441 | $ 7,885 | $ 4,486 |
Securities sold under agreements to repurchase | 276 | 168 | 121 |
Other borrowings | 5,674 | 5,521 | 2,668 |
Net interest expense on borrowed funds | $ 14,391 | $ 13,574 | $ 7,275 |
Borrowed Funds - Additional Inf
Borrowed Funds - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Statement of Financial Position [Abstract] | |
Minimum investment in the capital stock of the FHLB (percent) | 0.125% |
Specified value of certain transactions between the Bank and the FHLB (percent) | 4.50% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
Federal | $ 1,991 | $ 18,030 | $ (12,754) | ||||||||
State | 740 | 108 | 169 | ||||||||
Total current | 2,731 | 18,138 | (12,585) | ||||||||
Deferred | |||||||||||
Federal | 18,846 | (4,568) | 35,440 | ||||||||
State | (2,793) | 0 | 0 | ||||||||
Total deferred | 16,053 | (4,568) | 35,440 | ||||||||
Income tax expense (benefit) | $ 3,181 | $ 6,302 | $ 4,465 | $ 4,836 | $ 4,269 | $ 5,278 | $ 3,018 | $ 1,005 | $ 18,784 | $ 13,570 | $ 22,855 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Unrealized gains (loss) on securities, tax expense | $ 874,000 | $ 1,100,000 | $ 276,000 |
Share-based compensation, excess tax benefit, amount | 1,800,000 | ||
Purchase accounting adjustments | 8,475,000 | 16,142,000 | |
Retained earnings not provided for provision for income tax | 10,800,000 | ||
Unrecognized deferred tax liability | 2,600,000 | ||
Unrecognized tax benefits | 0 | 0 | 0 |
Income tax benefit from revaluation of state deferred tax assets | (2,200,000) | ||
Tax Cuts and Jobs Act of 2017, change in tax rate, income tax expense (benefit) | (1,900,000) | $ 3,600,000 | |
Colonial American Bank | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 4,900,000 | 5,300,000 | |
Operating loss carryforwards, subject to expiration | 330,000 | ||
Cape Bancorp, Inc. | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 0 | 3,000,000 | |
Operating loss carryforwards, subject to expiration | 4,500,000 | ||
Tax credit | 1,000,000 | 1,000,000 | |
Sun Bancorp, Inc. | |||
Operating Loss Carryforwards [Line Items] | |||
Purchase accounting adjustments | 3,100,000 | ||
Operating loss carryforwards | 175,900,000 | 198,900,000 | |
Operating loss carryforwards, subject to expiration | 23,300,000 | 9,300,000 | |
Tax credit | 2,300,000 | 2,300,000 | |
New Jersey | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit | 1,800,000 | $ 1,800,000 | |
Other Comprehensive Income | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Cuts and Jobs Act of 2017, change in tax rate, income tax expense (benefit) | 1,800,000 | ||
Accumulated Other Comprehensive (Loss) Gain | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Cuts and Jobs Act of 2017, change in tax rate, income tax expense (benefit) | $ 1,100,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Reconciliation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income before provision for income taxes | $ 26,631 | $ 31,273 | $ 23,445 | $ 26,009 | $ 31,001 | $ 29,349 | $ 18,720 | $ 6,432 | $ 107,358 | $ 85,502 | $ 65,325 |
Applicable statutory Federal income tax rate | 21.00% | 21.00% | 35.00% | ||||||||
Computed “expected” Federal income tax expense | $ 22,545 | $ 17,955 | $ 22,864 | ||||||||
(Decrease) increase in Federal income tax expense resulting from | |||||||||||
Tax exempt interest | (665) | (615) | (839) | ||||||||
ESOP fair market value adjustment | 77 | 125 | 223 | ||||||||
ESOP dividends | (151) | (136) | (230) | ||||||||
Earnings on BOLI | (1,138) | (1,072) | (1,155) | ||||||||
Merger related expenses | 297 | 322 | 478 | ||||||||
State income taxes net of Federal benefit | 583 | 85 | 110 | ||||||||
Stock compensation | (386) | (758) | (1,823) | ||||||||
Revaluation of state deferred tax asset | (2,205) | 0 | 0 | ||||||||
Impact of Tax Cuts and Jobs Act (“Tax Reform”) | 0 | (1,854) | 3,643 | ||||||||
Reclassification of certain tax effect from accumulated other comprehensive income | (221) | (586) | 0 | ||||||||
Other items, net | 48 | 104 | (416) | ||||||||
Income tax expense (benefit) | $ 3,181 | $ 6,302 | $ 4,465 | $ 4,836 | $ 4,269 | $ 5,278 | $ 3,018 | $ 1,005 | $ 18,784 | $ 13,570 | $ 22,855 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 4,107 | $ 3,501 |
Reserve for repurchased loans | 112 | 55 |
Reserve for uncollected interest | 212 | 119 |
Incentive compensation | 1,397 | 1,302 |
Deferred compensation | 591 | 529 |
Other reserves | 2,737 | 334 |
Stock plans | 1,270 | 950 |
ESOP | 178 | 142 |
Purchase accounting adjustments | 8,475 | 16,142 |
Net operating loss carryforward related to acquisition | 39,519 | 44,436 |
Other real estate owned | 0 | 90 |
Unrealized loss on securities | 826 | 1,225 |
Unrealized loss on properties available-for-sale | 1,438 | 1,266 |
Federal and state alternative minimum tax | 4,746 | 1,410 |
Total gross deferred tax assets | 65,608 | 71,501 |
Deferred tax liabilities: | ||
Investments, discount accretion | (380) | (232) |
Deferred loan and commitment costs, net | (2,379) | (1,478) |
Premises and equipment, differences in depreciation | (7,340) | (4,350) |
Undistributed REIT income | (4,735) | (1,730) |
Other | (707) | (334) |
Total gross deferred tax liabilities | (15,541) | (8,124) |
Net deferred tax assets | $ 50,067 | $ 63,377 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) $ in Thousands | May 12, 1998 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 01, 2018 | Apr. 30, 2018 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Contributions to ESOP | $ 1,500 | $ 1,400 | ||||
Dividends paid unallocated ESOP shares | 357 | 287 | ||||
Outstanding loan | $ 9,300 | $ 10,400 | ||||
Unallocated shares of ESOP (shares) | 459,711 | 525,241 | ||||
Fair value of unallocated shares | $ 11,700 | |||||
Shares allocated to participants (shares) | 2,412,132 | |||||
Shares committed to be released (shares) | 65,531 | |||||
Employee Stock Ownership Plan | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Minimum age limit for employees to participate in ESOP (years) | 21 years | |||||
Minimum number of working hours (hours) | 1000 hours | |||||
ESOP original borrowings | $ 13,400 | |||||
Purchase of common stock shares (shares) | 2,013,137 | |||||
Additional borrowings | $ 8,200 | $ 8,400 | ||||
Additional common stock shares (shares) | 633,750 | 292,592 | ||||
Fixed interest rate (percent) | 3.25% | 8.25% | ||||
Compensation expense related to ESOP | $ 1,600 | $ 1,600 | $ 919 | |||
Increase in the average fair value | $ 366 | $ 596 | $ 637 | |||
Employee Stock Ownership Plan | Minimum | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Extended loan term (years) | 12 years | |||||
Employee Stock Ownership Plan | Maximum | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Extended loan term (years) | 30 years |
Incentive Plan - Additional Inf
Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, assumed in acquisition (shares) | 0 | 491,248 | 0 | |
Weighted average exercise price, assumed in acquisition (in dollars per share) | $ 0 | $ 21.92 | $ 0 | |
Compensation cost related to non-vested awards not yet recognized | $ 10,400 | |||
Aggregate intrinsic value for stock options outstanding | 15,400 | |||
Aggregate intrinsic value for stock options exercisable | $ 14,100 | |||
Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plan vesting rate (percent) | 20.00% | |||
Award vesting period (years) | 3 years | |||
Stock incentive plan expiration period (years) | 10 years | |||
Expense for stock option grants | $ 973 | $ 1,000 | $ 1,200 | |
Vesting period of compensation cost related to non-vested awards | 3 years 4 months 6 days | |||
Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense for stock option grants | $ 2,900 | $ 2,000 | $ 1,000 | |
2011 Stock Incentive Plan | Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plan, number of additional shares authorized (shares) | 4,000,000 | |||
Stock incentive plan remaining options or awards (shares) | 261,527 | |||
2011 Stock Incentive Plan | Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plan, number of additional shares authorized (shares) | 1,600,000 | |||
Stock incentive plan remaining options or awards (shares) | 104,611 | |||
2006 Stock Incentive Plan | Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plan, number of additional shares authorized (shares) | 1,000,000 | |||
Stock incentive plan remaining options or awards (shares) | 0 | |||
2006 Stock Incentive Plan | Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plan, number of additional shares authorized (shares) | 333,333 | |||
Tranche One | Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plan vesting rate (percent) | 20.00% | |||
Cape Bancorp, Inc. | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, assumed in acquisition (shares) | 599,373 | |||
Weighted average exercise price, assumed in acquisition (in dollars per share) | $ 10.34 | |||
Ocean Shore Holdings Co. | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, assumed in acquisition (shares) | 287,595 | |||
Weighted average exercise price, assumed in acquisition (in dollars per share) | $ 9.37 | |||
Sun Bancorp, Inc. | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, assumed in acquisition (shares) | 491,248 | |||
Weighted average exercise price, assumed in acquisition (in dollars per share) | $ 21.92 |
Incentive Plan - Summary of Fai
Incentive Plan - Summary of Fair Value of Stock Options Granted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate (percent) | 2.63% | 2.65% | 2.31% |
Expected option life (years) | 7 years | 7 years | 7 years |
Expected volatility (percent) | 21.00% | 21.00% | 21.00% |
Expected dividend yield (percent) | 2.70% | 2.19% | 2.07% |
Weighted average fair value of an option share granted during the year (usd per share) | $ 4.47 | $ 5.44 | $ 5.62 |
Intrinsic value of options exercised during the year (shares) | $ 2,994 | $ 8,513 | $ 7,882 |
Incentive Plan - Summary of Opt
Incentive Plan - Summary of Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Shares, Outstanding at beginning of year (shares) | 2,340,842 | 2,489,314 | 2,758,833 |
Number of Shares, Granted (shares) | 461,407 | 135,107 | 335,150 |
Number of Shares, Assumed in acquisition (shares) | 0 | 491,248 | 0 |
Number of Shares, Exercised (shares) | (227,189) | (765,624) | (567,153) |
Number of Shares, Forfeited (shares) | (149,158) | (9,203) | (35,099) |
Number of Shares, Expired (shares) | (1,870) | 0 | (2,417) |
Number of Shares, Outstanding at end of year (shares) | 2,424,032 | 2,340,842 | 2,489,314 |
Number of Shares, Options exercisable at end of year (shares) | 1,612,946 | 1,604,576 | 1,608,762 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Outstanding at beginning of year (in dollars per share) | $ 18.25 | $ 16.91 | $ 14.94 |
Weighted Average Exercise Price, Granted (in dollars per share) | 25.20 | 27.39 | 29.01 |
Weighted Average Exercise Price, Assumed in acquisition | 0 | 21.92 | 0 |
Weighted Average Exercise Price, Exercised (in dollars per share) | 11.24 | 17.69 | 14.39 |
Weighted Average Exercise Price, Forfeited (in dollars per share) | 24.71 | 28.42 | 18.42 |
Weighted Average Exercise Price, Expired (in dollars per share) | 29.59 | 0 | 11.70 |
Weighted Average Exercise Price, Outstanding at end of year (in dollars per share) | $ 19.80 | $ 18.25 | $ 16.91 |
Incentive Plan - Summary of Sto
Incentive Plan - Summary of Stock Options Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding (shares) | shares | 2,424,032 |
Weighted average remaining contractual life, options outstanding (years) | 4 years 10 months 24 days |
Weighted average exercise price, options outstanding (usd per share) | $ 19.80 |
Number of options exercisable (shares) | shares | 1,612,946 |
Weighted average remaining contractual life, options exercisable (years) | 3 years 3 months 18 days |
Weighted average exercise price, options exercisable (in dollars per share) | $ 17.29 |
$8.45 to 12.95 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices lower limit (usd per share) | 8.45 |
Exercise prices higher limit (usd per share) | $ 12.95 |
Number of options outstanding (shares) | shares | 293,334 |
Weighted average remaining contractual life, options outstanding (years) | 1 year 3 months 18 days |
Weighted average exercise price, options outstanding (usd per share) | $ 9.78 |
Number of options exercisable (shares) | shares | 290,334 |
Weighted average remaining contractual life, options exercisable (years) | 1 year 3 months 18 days |
Weighted average exercise price, options exercisable (in dollars per share) | $ 9.76 |
12.95 to 17.45 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices lower limit (usd per share) | 12.95 |
Exercise prices higher limit (usd per share) | $ 17.45 |
Number of options outstanding (shares) | shares | 900,520 |
Weighted average remaining contractual life, options outstanding (years) | 3 years 8 months 12 days |
Weighted average exercise price, options outstanding (usd per share) | $ 15.45 |
Number of options exercisable (shares) | shares | 765,149 |
Weighted average remaining contractual life, options exercisable (years) | 3 years 3 months 18 days |
Weighted average exercise price, options exercisable (in dollars per share) | $ 15.13 |
17.45 to 21.95 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices lower limit (usd per share) | 17.45 |
Exercise prices higher limit (usd per share) | $ 21.95 |
Number of options outstanding (shares) | shares | 196,744 |
Weighted average remaining contractual life, options outstanding (years) | 4 years 2 months 12 days |
Weighted average exercise price, options outstanding (usd per share) | $ 17.98 |
Number of options exercisable (shares) | shares | 196,744 |
Weighted average remaining contractual life, options exercisable (years) | 4 years 2 months 12 days |
Weighted average exercise price, options exercisable (in dollars per share) | $ 17.98 |
21.95 to 26.45 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices lower limit (usd per share) | 21.95 |
Exercise prices higher limit (usd per share) | $ 26.45 |
Number of options outstanding (shares) | shares | 457,563 |
Weighted average remaining contractual life, options outstanding (years) | 8 years 9 months 18 days |
Weighted average exercise price, options outstanding (usd per share) | $ 24.99 |
Number of options exercisable (shares) | shares | 34,570 |
Weighted average remaining contractual life, options exercisable (years) | 4 years 9 months 18 days |
Weighted average exercise price, options exercisable (in dollars per share) | $ 23.18 |
26.45 to 30.95 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices lower limit (usd per share) | 26.45 |
Exercise prices higher limit (usd per share) | $ 30.95 |
Number of options outstanding (shares) | shares | 575,871 |
Weighted average remaining contractual life, options outstanding (years) | 5 years 10 months 24 days |
Weighted average exercise price, options outstanding (usd per share) | $ 28.21 |
Number of options exercisable (shares) | shares | 326,149 |
Weighted average remaining contractual life, options exercisable (years) | 4 years 7 months 6 days |
Weighted average exercise price, options exercisable (in dollars per share) | $ 28.04 |
Incentive Plan - Summary of Gra
Incentive Plan - Summary of Granted but Unvested Stock Award Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Shares, Outstanding at beginning of year (shares) | 330,598 | 169,703 | 156,945 |
Number of Shares, Granted (shares) | 249,651 | 272,668 | 69,175 |
Number of Shares, Vested (shares) | (105,307) | (58,754) | (47,379) |
Number of Shares, Forfeited (shares) | (23,499) | (53,019) | (9,038) |
Number of Shares, Outstanding at end of year (shares) | 451,443 | 330,598 | 169,703 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted Average Grant Date Fair Value, Outstanding at beginning of year (usd per share) | $ 25.92 | $ 21.79 | $ 17.25 |
Weighted Average Grant Date Fair Value, Granted (usd per share) | 24.80 | 27.52 | 28.70 |
Weighted Average Grant Date Fair Value, Vested (usd per share) | 24.49 | 20.81 | 17.32 |
Weighted Average Grant Date Fair Value, Forfeited (usd per share) | 26.38 | 26.60 | 19.14 |
Weighted Average Grant Date Fair Value, Outstanding at end of year (usd per share) | $ 25.61 | $ 25.92 | $ 21.79 |
Commitments, Contingencies an_3
Commitments, Contingencies and Concentrations of Credit Risk - Summary of Commitments and Contingent Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Fixed-Rate | $ 197,940 |
Adjustable-Rate | 2,764 |
Floating-Rate | 127,010 |
Unused consumer and construction loan lines of credit (primarily floating-rate) | |
Debt Instrument [Line Items] | |
Unused loan lines of credit (primarily floating-rate) | 333,074 |
Unused commercial loan lines of credit (primarily floating-rate) | |
Debt Instrument [Line Items] | |
Unused loan lines of credit (primarily floating-rate) | $ 451,535 |
Commitments, Contingencies an_4
Commitments, Contingencies and Concentrations of Credit Risk - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Commitments [Line Items] | |||
Fixed-rate loan commitments | 90 days | ||
Rental expense | $ 5 | $ 5.2 | $ 3.2 |
Minimum | |||
Other Commitments [Line Items] | |||
Interest rates | 2.25% | ||
Maximum | |||
Other Commitments [Line Items] | |||
Interest rates | 6.75% |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Shares Outstanding for Basic and Diluted Earnings per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding (shares) | 50,701 | 47,266 | 32,490 |
Less: Unallocated ESOP shares (shares) | (493) | (435) | (311) |
Unallocated incentive award shares and shares held by deferred compensation plan (shares) | (42) | (58) | (66) |
Average basic shares outstanding (shares) | 50,166 | 46,773 | 32,113 |
Add: Effect of dilutive securities: | |||
Incentive awards and shares held by deferred compensation plan (shares) | 580 | 884 | 1,012 |
Average diluted shares outstanding (shares) | 50,746 | 47,657 | 33,125 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive stock options excluded from earnings per share calculations | 993 | 504 | 331 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Financial Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | $ 150,960 | $ 100,717 |
Other real estate owned | 264 | 1,381 |
Items measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | 150,960 | 100,717 |
Equity investments | 10,136 | 9,655 |
Interest rate swap asset | 10,141 | 1,722 |
Interest rate swap liability | (10,708) | (1,813) |
Items measured on a non-recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 264 | |
Items measured on a non-recurring basis | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | 11,639 | |
Fair value | 8,794 | 1,381 |
Level 1 Inputs | Items measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | 0 | 0 |
Equity investments | 10,136 | 9,655 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Level 1 Inputs | Items measured on a non-recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | |
Level 1 Inputs | Items measured on a non-recurring basis | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | 0 | |
Fair value | 0 | 0 |
Level 2 Inputs | Items measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | 150,935 | 100,717 |
Equity investments | 0 | 0 |
Interest rate swap asset | 10,141 | 1,722 |
Interest rate swap liability | (10,708) | (1,813) |
Level 2 Inputs | Items measured on a non-recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | |
Level 2 Inputs | Items measured on a non-recurring basis | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | 0 | |
Fair value | 0 | 0 |
Level 3 Inputs | Items measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | 25 | 0 |
Equity investments | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Level 3 Inputs | Items measured on a non-recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 264 | |
Level 3 Inputs | Items measured on a non-recurring basis | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for sale, at fair value | 11,639 | |
Fair value | $ 8,794 | $ 1,381 |
Fair Value Measurements - Book
Fair Value Measurements - Book Value and Estimated Fair Value of Bank's Significant Financial Instruments Not Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Debt securities held-to-maturity | $ 777,290 | $ 832,815 |
Restricted equity investments | 62,356 | 56,784 |
Financial Liabilities: | ||
Time deposits | 935,632 | 866,244 |
Securities sold under agreements to repurchase with retail customers | 71,739 | 61,760 |
Book Value | ||
Financial Assets: | ||
Cash and due from banks | 120,544 | 120,792 |
Debt securities held-to-maturity | 768,873 | 846,810 |
Restricted equity investments | 62,356 | 56,784 |
Loans receivable, net and loans held-for-sale | 6,207,680 | 5,579,222 |
Financial Liabilities: | ||
Deposits other than time deposits | 5,393,145 | 4,948,325 |
Time deposits | 935,632 | 866,244 |
Federal Home Loan Bank advances and other borrowings | 616,061 | 548,913 |
Securities sold under agreements to repurchase with retail customers | 71,739 | 61,760 |
Level 1 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 120,544 | 120,792 |
Debt securities held-to-maturity | 0 | 0 |
Restricted equity investments | 0 | 0 |
Loans receivable, net and loans held-for-sale | 0 | 0 |
Financial Liabilities: | ||
Deposits other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Securities sold under agreements to repurchase with retail customers | 71,739 | 61,760 |
Level 2 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Debt securities held-to-maturity | 774,805 | 830,999 |
Restricted equity investments | 0 | 0 |
Loans receivable, net and loans held-for-sale | 0 | 0 |
Financial Liabilities: | ||
Deposits other than time deposits | 5,393,145 | 4,948,325 |
Time deposits | 936,318 | 853,678 |
Federal Home Loan Bank advances and other borrowings | 626,225 | 554,692 |
Securities sold under agreements to repurchase with retail customers | 0 | 0 |
Level 3 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Debt securities held-to-maturity | 2,485 | 1,816 |
Restricted equity investments | 62,356 | 56,784 |
Loans receivable, net and loans held-for-sale | 6,173,237 | 5,474,306 |
Financial Liabilities: | ||
Deposits other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Securities sold under agreements to repurchase with retail customers | $ 0 | $ 0 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Other Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Collateral already posted, fair value | $ 13,700 | $ 4,100 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Income (expense) in fair value adjustments | (478) | (87) |
Other liabilities | ||
Derivative [Line Items] | ||
Credit risk derivative liability, fair value | 10,708 | 1,813 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 337,600 | $ 59,300 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Other Financial Instruments - Notional and Fair Value of Derivatives Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other assets | ||
Derivative [Line Items] | ||
Credit risk derivative asset, fair value | $ 10,141 | $ 1,722 |
Other liabilities | ||
Derivative [Line Items] | ||
Credit risk derivative liability, fair value | $ 10,708 | $ 1,813 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019lease | |
Leases [Abstract] | |
Number of finance leases (leases) | 1 |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease ROU asset | $ 18,682 |
Finance lease ROU asset | 1,534 |
Total Lease ROU Asset | 20,216 |
Operating lease liability | 18,893 |
Finance lease liability | 1,953 |
Total Lease Liability | $ 20,846 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (years) | 9 years 8 months 8 days |
Finance lease, weighted average remaining lease term (years) | 9 years 7 months 6 days |
Operating lease, weighted average discount rate (percent) | 3.45% |
Finance lease, weighted average discount rate (percent) | 5.63% |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs and Other Lease Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Expense | |
Operating Lease Expense | $ 3,904 |
Finance Lease Expense: | |
Amortization of ROU assets | 274 |
Interest on lease liabilities | 174 |
Total | 4,352 |
Operating cash flows from operating leases | 3,625 |
Operating cash flows from finance leases | 174 |
Financing cash flows from finance leases | $ 263 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments for Operating and Financing Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance Lease | |
2020 | $ 295 |
2021 | 295 |
2022 | 295 |
2023 | 295 |
2024 | 295 |
Thereafter | 942 |
Total | 2,417 |
Less: Imputed Interest | (464) |
Total Lease Liabilities | 1,953 |
Operating Leases | |
2020 | 3,425 |
2021 | 3,256 |
2022 | 2,869 |
2023 | 2,132 |
2024 | 1,878 |
Thereafter | 9,165 |
Total | 22,725 |
Less: Imputed Interest | (3,832) |
Total Lease Liabilities | $ 18,893 |
Parent-Only Financial Informa_3
Parent-Only Financial Information - Condensed Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and due from banks | $ 120,544 | $ 120,792 | $ 109,613 | $ 301,373 |
Other assets | 119,465 | 24,101 | ||
Total assets | 8,246,145 | 7,516,154 | ||
Liabilities and Stockholders’ Equity | ||||
Borrowings | 687,800 | 610,673 | ||
Other liabilities | 62,565 | 37,488 | ||
Stockholders’ equity | 1,153,119 | 1,039,358 | $ 601,941 | $ 571,903 |
Total liabilities and stockholders’ equity | 8,246,145 | 7,516,154 | ||
OceanFirst Financial Corp. | ||||
Assets | ||||
Cash and due from banks | 5,442 | 3,930 | ||
Advances to subsidiary Bank | 27,878 | 14,026 | ||
Investment securities | 1,000 | 1,000 | ||
ESOP loan receivable | 9,271 | 10,431 | ||
Investment in subsidiaries | 1,206,479 | 1,107,539 | ||
Other assets | 327 | 234 | ||
Total assets | 1,250,397 | 1,137,160 | ||
Liabilities and Stockholders’ Equity | ||||
Borrowings | 94,848 | 94,134 | ||
Other liabilities | 2,430 | 3,668 | ||
Stockholders’ equity | 1,153,119 | 1,039,358 | ||
Total liabilities and stockholders’ equity | $ 1,250,397 | $ 1,137,160 |
Parent-Only Financial Informa_4
Parent-Only Financial Information - Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest expense – borrowings | $ 14,391 | $ 13,574 | $ 7,275 | ||||||||
Operating expenses | 189,142 | 186,337 | 126,520 | ||||||||
Benefit for income taxes | $ (3,181) | $ (6,302) | $ (4,465) | $ (4,836) | $ (4,269) | $ (5,278) | $ (3,018) | $ (1,005) | (18,784) | (13,570) | (22,855) |
Net income | $ 23,450 | $ 24,971 | $ 18,980 | $ 21,173 | $ 26,732 | $ 24,071 | $ 15,702 | $ 5,427 | 88,574 | 71,932 | 42,470 |
OceanFirst Financial Corp. | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividend income – subsidiary Bank | 79,000 | 32,000 | 32,000 | ||||||||
Interest and dividend income – investment securities | 63 | 63 | 63 | ||||||||
Interest income – advances to subsidiary Bank | 426 | 525 | 280 | ||||||||
Interest income – ESOP loan receivable | 321 | 321 | 321 | ||||||||
Other income | 0 | 15 | 0 | ||||||||
Total income | 79,810 | 32,924 | 32,664 | ||||||||
Interest expense – borrowings | 5,402 | 4,997 | 2,592 | ||||||||
Operating expenses | 2,686 | 2,397 | 1,788 | ||||||||
Income before income taxes and undistributed earnings of subsidiary Bank | 71,722 | 25,530 | 28,284 | ||||||||
Benefit for income taxes | 924 | 846 | 973 | ||||||||
Income before undistributed earnings of subsidiary Bank | 72,646 | 26,376 | 29,257 | ||||||||
Undistributed earnings of subsidiary Bank | 15,928 | 45,556 | 13,213 | ||||||||
Net income | $ 88,574 | $ 71,932 | $ 42,470 |
Parent-Only Financial Informa_5
Parent-Only Financial Information - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 23,450 | $ 24,971 | $ 18,980 | $ 21,173 | $ 26,732 | $ 24,071 | $ 15,702 | $ 5,427 | $ 88,574 | $ 71,932 | $ 42,470 |
Net amortization of purchase accounting adjustments | (14,094) | (16,733) | (8,216) | ||||||||
Net cash provided by operating activities | 100,247 | 92,551 | 80,131 | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash (used in) provided by investing activities | (172,122) | 48,553 | (455,223) | ||||||||
Cash flows from financing activities: | |||||||||||
Dividends paid | (34,241) | (29,564) | (19,286) | ||||||||
Purchase of treasury stock | (26,066) | (10,837) | 0 | ||||||||
Exercise of stock options | 1,335 | 5,324 | 3,354 | ||||||||
Net cash provided by (used in) financing activities | 82,773 | (128,389) | 183,332 | ||||||||
OceanFirst Financial Corp. | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 88,574 | 71,932 | 42,470 | ||||||||
(Increase) decrease in advances to subsidiary Bank | (13,852) | 15,262 | (23,371) | ||||||||
Undistributed earnings of subsidiary Bank | (15,928) | (45,556) | (13,213) | ||||||||
Amortization of deferred costs on borrowings | 261 | 262 | 121 | ||||||||
Net amortization of purchase accounting adjustments | 453 | 395 | 0 | ||||||||
Change in other assets and other liabilities | (184) | 4,076 | 607 | ||||||||
Net cash provided by operating activities | 59,324 | 46,371 | 6,614 | ||||||||
Cash flows from investing activities: | |||||||||||
Increase in ESOP loan receivable | 0 | (8,400) | 0 | ||||||||
Repayments on ESOP loan receivable | 1,160 | 1,020 | 234 | ||||||||
Net cash (used in) provided by investing activities | 1,160 | (7,380) | 234 | ||||||||
Cash flows from financing activities: | |||||||||||
Dividends paid | (34,241) | (29,564) | (19,286) | ||||||||
Purchase of treasury stock | (26,066) | (10,837) | 0 | ||||||||
Exercise of stock options | 1,335 | 5,324 | 3,354 | ||||||||
Net cash provided by (used in) financing activities | (58,972) | (35,077) | (15,932) | ||||||||
Net increase (decrease) in cash and due from banks | 1,512 | 3,914 | (9,084) | ||||||||
Cash and due from banks at beginning of year | $ 3,930 | $ 16 | 3,930 | 16 | 9,100 | ||||||
Cash and due from banks at end of year | $ 5,442 | $ 3,930 | $ 5,442 | $ 3,930 | $ 16 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event $ / shares in Units, $ in Millions | Jan. 01, 2020USD ($)branchloan_office$ / sharesshares |
Subsequent Event [Line Items] | |
Share price (in dollars per share) | $ / shares | $ 25.54 |
Purchase accounting adjustments, assets | $ 10,200 |
Purchase accounting adjustments, loans | 7,800 |
Purchase accounting adjustments, deposits | 7,900 |
Two River Bancorp | |
Subsequent Event [Line Items] | |
Consideration paid | $ 197 |
Stock issued during period, shares, acquisitions | shares | 5,818,687 |
Number of branches (branches) | branch | 14 |
Number of loan production offices (loan office) | loan_office | 1 |
Purchase accounting adjustments, assets | $ 1,100 |
Purchase accounting adjustments, loans | 938 |
Purchase accounting adjustments, deposits | 942 |
Country Bank Holding Company, Inc | |
Subsequent Event [Line Items] | |
Consideration paid | $ 113 |
Stock issued during period, shares, acquisitions | shares | 4,418,000 |
Number of branches (branches) | branch | 5 |
Number of loan production offices (loan office) | loan_office | 1 |
Purchase accounting adjustments, assets | $ 798 |
Purchase accounting adjustments, loans | 616 |
Purchase accounting adjustments, deposits | $ 654 |
Selected Consolidated Quarter_3
Selected Consolidated Quarterly Financial Data - Summary of Consolidated Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 77,075 | $ 76,887 | $ 78,410 | $ 76,422 | $ 72,358 | $ 71,382 | $ 70,078 | $ 62,837 | $ 308,794 | $ 276,654 | $ 188,829 |
Interest expense | 13,721 | 13,495 | 13,573 | 12,034 | 10,517 | 9,878 | 8,631 | 7,126 | 52,823 | 36,152 | 19,611 |
Net interest income | 63,354 | 63,392 | 64,837 | 64,388 | 61,841 | 61,504 | 61,447 | 55,711 | 255,971 | 240,502 | 169,218 |
Provision for loan losses | 355 | 305 | 356 | 620 | 506 | 907 | 706 | 1,371 | 1,636 | 3,490 | 4,445 |
Net interest income after provision for loan losses | 62,999 | 63,087 | 64,481 | 63,768 | 61,335 | 60,597 | 60,741 | 54,340 | 254,335 | 237,012 | 164,773 |
Other income | 11,231 | 11,543 | 9,879 | 9,512 | 8,748 | 8,285 | 8,883 | 8,910 | 42,165 | 34,827 | 27,072 |
Operating expenses (excluding merger related and branch consolidation expenses) | 43,589 | 40,884 | 43,289 | 41,827 | 37,794 | 37,503 | 42,470 | 38,508 | |||
Merger related and branch consolidation expenses | 4,010 | 2,473 | 7,626 | 5,444 | 1,288 | 2,030 | 8,434 | 18,310 | |||
Income before provision for income taxes | 26,631 | 31,273 | 23,445 | 26,009 | 31,001 | 29,349 | 18,720 | 6,432 | 107,358 | 85,502 | 65,325 |
Provision for income taxes | 3,181 | 6,302 | 4,465 | 4,836 | 4,269 | 5,278 | 3,018 | 1,005 | 18,784 | 13,570 | 22,855 |
Net income | $ 23,450 | $ 24,971 | $ 18,980 | $ 21,173 | $ 26,732 | $ 24,071 | $ 15,702 | $ 5,427 | $ 88,574 | $ 71,932 | $ 42,470 |
Basic earnings per share (in dollars per share) | $ 0.47 | $ 0.50 | $ 0.37 | $ 0.43 | $ 0.56 | $ 0.50 | $ 0.33 | $ 0.12 | $ 1.77 | $ 1.54 | $ 1.32 |
Diluted earnings per share (in dollars per share) | $ 0.47 | $ 0.49 | $ 0.37 | $ 0.42 | $ 0.55 | $ 0.50 | $ 0.32 | $ 0.12 | $ 1.75 | $ 1.51 | $ 1.28 |
Uncategorized Items - ocfc-1231
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (147,000) |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 147,000 |
Accounting Standards Update 2016-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-09 [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (11,129,000) |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 11,129,000 |