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OceanFirst Financial (OCFC)

Cover

Cover - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Feb. 22, 2021Jun. 30, 2020
Entity Information [Line Items]
Document Type10-K
Document Annual Reporttrue
Document Period End DateDec. 31,
2020
Current Fiscal Year End Date--12-31
Document Transition Reportfalse
Entity File Number001-11713
Entity Registrant NameOceanFirst Financial Corp.
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number22-3412577
Entity Address, Address Line One110 West Front Street
Entity Address, City or TownRed Bank
Entity Address, State or ProvinceNJ
Entity Address, Postal Zip Code07701
City Area Code732
Local Phone Number240-4500
Entity Well-known Seasoned IssuerYes
Entity Voluntary FilersNo
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
ICFR Auditor Attestation Flagtrue
Entity Shell Companyfalse
Entity Public Float $ 1,037,577
Entity Common Stock, Shares Outstanding59,915,803
Documents Incorporated by ReferencePortions of the Proxy Statement for the 2021 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days from December 31, 2020, are incorporated by reference into Part III of this Form 10-K.
Amendment Flagfalse
Document Fiscal Year Focus2020
Document Fiscal Period FocusFY
Entity Central Index Key0001004702
Common Stock
Entity Information [Line Items]
Title of 12(b) SecurityCommon stock, $0.01 par value per share
Trading SymbolOCFC
Security Exchange NameNASDAQ
Depositary Shares
Entity Information [Line Items]
Title of 12(b) SecurityDepositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)
Trading SymbolOCFCP
Security Exchange NameNASDAQ

Consolidated Statements of Fina

Consolidated Statements of Financial Condition - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Assets
Cash and due from banks $ 1,272,134 $ 120,544
Debt securities available-for-sale, at estimated fair value (encumbered $5,339 at December 31, 2020 and $21,646 at December 31, 2019)183,302 150,960
Debt securities held-to-maturity, net of allowance for credit losses of $1,715 at December 31, 2020 (estimated fair value of $968,466 at December 31, 2020 and $777,290 at December 31, 2019) (encumbered $418,719 at December 31, 2020 and $452,212 at December 31, 2019)937,253 768,873
Equity investments, at estimated fair value107,079 10,136
Restricted equity investments, at cost51,705 62,356
Loans receivable, net of allowance for credit losses of $60,735 at December 31, 2020 and $16,852 at December 31, 20197,704,857 6,207,680
Loans held-for-sale45,524 0
Interest and dividends receivable35,269 21,674
Other real estate owned106 264
Premises and equipment, net107,094 102,691
Bank owned life insurance265,253 237,411
Assets held for sale5,782 3,785
Goodwill500,319 374,632
Core deposit intangible23,668 15,607
Other assets208,968 169,532
Total assets11,448,313 8,246,145
Liabilities and Stockholders’ Equity
Deposits9,427,616 6,328,777
Federal Home Loan Bank ("FHLB") advances0 519,260
Securities sold under agreements to repurchase with retail customers128,454 71,739
Other borrowings235,471 96,801
Advances by borrowers for taxes and insurance17,296 13,884
Other liabilities155,346 62,565
Total liabilities9,964,183 7,093,026
Stockholders’ equity:
Preferred stock, $0.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, 57,370 shares issued at December 31, 2020 and no shares issued at December 31, 20191 0
Common stock, $0.01 par value, 150,000,000 shares authorized, 61,040,894 shares issued and 60,392,043 and 50,405,048 shares outstanding at December 31, 2020 and December 31, 2019, respectively609 519
Additional paid-in capital1,137,715 840,691
Retained earnings378,268 358,668
Accumulated other comprehensive income (loss)621 (1,208)
Less: Unallocated common stock held by Employee Stock Ownership Plan ("ESOP")(7,433)(8,648)
Treasury stock, 648,851 and 1,586,808 shares at December 31, 2020 and December 31, 2019, respectively(25,651)(36,903)
Total stockholders’ equity1,484,130 1,153,119
Total liabilities and stockholders’ equity $ 11,448,313 $ 8,246,145

Consolidated Statements of Fi_2

Consolidated Statements of Financial Condition (Parenthetical) - USD ($)Dec. 31, 2020Dec. 31, 2019
Statement of Financial Position [Abstract]
Securities available-for-sale, encumbered $ 5,339,000 $ 21,646,000
Allowance for credit loss1,715,000 0
Securities held-to-maturity, net estimated fair value968,466,000 777,290,000
Securities held-to-maturity, net encumbered418,719,000 452,212,000
Loan receivable, allowance for credit losses $ 60,735,000 $ 16,852,000
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)57,370 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)61,040,894 61,040,894
Common stock, shares outstanding (shares)60,392,043 50,405,048
Treasury stock, shares (shares)648,851 1,586,808

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Interest income:
Loans $ 349,221 $ 279,931 $ 249,549
Mortgage-backed securities14,037 15,300 16,034
Debt securities, equity investments and other16,350 13,563 11,071
Total interest income379,608 308,794 276,654
Interest expense:
Deposits48,290 38,432 22,578
Borrowed funds18,367 14,391 13,574
Total interest expense66,657 52,823 36,152
Net interest income312,951 255,971 240,502
Credit loss expense59,404 1,636 3,490
Net interest income after credit loss expense253,547 254,335 237,012
Other income:
Bankcard services revenue11,417 10,263 9,228
Net gain on sales of loans8,278 16 668
Net gain (loss) on equity investments21,214 267 (199)
Net gain (loss) from other real estate operations35 (330)(3,812)
Income from bank owned life insurance6,424 5,420 5,105
Commercial loan swap income8,080 5,285 669
Other618 642 1,462
Total other income73,926 42,165 34,827
Operating expenses:
Compensation and employee benefits114,155 89,912 83,135
Occupancy20,782 17,159 17,915
Equipment7,769 7,719 8,319
Marketing3,117 3,469 3,415
Federal deposit insurance and regulatory assessments4,871 2,227 3,713
Data processing17,467 14,814 13,286
Check card processing5,458 5,956 4,209
Professional fees12,247 9,338 4,963
Other operating expense16,552 14,968 13,509
Amortization of core deposit intangible6,186 4,027 3,811
FHLB advance prepayment fees14,257 0
Branch consolidation expenses7,623 9,050 3,151
Merger related expenses15,947 10,503 26,911
Total operating expenses246,431 189,142 186,337
Income before provision for income taxes81,042 107,358 85,502
Provision for income taxes17,733 18,784 13,570
Net income63,309 88,574 71,932
Dividends on preferred shares(2,097)0 0
Net income available to common stockholders $ (61,212) $ (88,574) $ (71,932)
Basic earnings per share (in dollars per share) $ 1.02 $ 1.77 $ 1.54
Diluted earnings per share (in dollars per share) $ 1.02 $ 1.75 $ 1.51
Average basic shares outstanding (in shares)59,919 50,166 46,773
Average diluted shares outstanding (in shares)60,072 50,746 47,657
Trust and asset management revenue
Other income:
Trust and asset management revenue and fees and service charges $ 2,052 $ 2,102 $ 2,245
Fees and service charges
Other income:
Trust and asset management revenue and fees and service charges $ 15,808 $ 18,500 $ 19,461

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income $ 63,309 $ 88,574 $ 71,932
Other comprehensive income:
Unrealized gain (loss) on debt securities (net of tax expense of $411 and $470 in 2020 and 2019, respectively, and net of tax benefit of $33 in 2018)1,039 1,655 (162)
Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $310, $404 and $1,186 in 2020, 2019, and 2018, respectively)446 587 1,719
Reclassification adjustment for gains included in net income (net of tax expense of $101 and $53 in 2020 and 2018, respectively)344 0 195
Total other comprehensive income1,829 2,242 1,752
Total comprehensive income65,138 90,816 73,684
Less: Dividends on preferred shares2,097 0 0
Total comprehensive income available to common stockholders $ 63,041 $ 90,816 $ 73,684

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Unrealized holding gain (loss), before adjustment, tax $ 411 $ 470 $ (33)
Other comprehensive income accretion of fair value adjustment on held to maturity securities tax310 $ 404 1,186
Reclassification adjustment from AOCI for sale of securities, tax $ 101 $ 53

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in ThousandsTotalSun Bancorp IncTwo River Bancorp Inc.OCFCCountry Bank Holding Company IncCumulative Effect, Period of Adoption, AdjustmentEmployee Stock Ownership PlanPreferred StockCommon StockCommon StockSun Bancorp IncCommon StockTwo River Bancorp Inc.Common StockOCFCCountry Bank Holding Company IncAdditional Paid-In CapitalAdditional Paid-In CapitalSun Bancorp IncAdditional Paid-In CapitalTwo River Bancorp Inc.Additional Paid-In CapitalOCFCCountry Bank Holding Company IncRetained EarningsRetained EarningsCumulative Effect, Period of Adoption, AdjustmentAccumulated Other Comprehensive (Loss) GainAccumulated Other Comprehensive (Loss) GainCumulative Effect, Period of Adoption, AdjustmentTreasury StockTreasury StockSun Bancorp IncTreasury StockTwo River Bancorp Inc.
Beginning Balance at Dec. 31, 2017 $ 601,941 $ 0 $ (2,479) $ 0 $ 336 $ 354,377 $ 271,023 $ (147) $ (5,349) $ 147 $ (15,967)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income71,932 71,932
Other comprehensive income, net of tax1,752 1,752
Stock awards3,038 2 3,036
Acquisition of common stock by ESOP(8,400)(8,400)
Allocation of ESOP stock1,618 1,022 596
Cash dividend(29,564)(29,564)
Exercise of stock options5,324 4 13,306 (8,188)202
Acquisition of company $ 402,554 $ 141 $ 386,648 $ 15,765
Purchase shares of common stock(10,837)(10,837)
Ending Balance at Dec. 31, 20181,039,358 (9,857)0 483 757,963 305,056 (3,450)(10,837)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income88,574 88,574
Other comprehensive income, net of tax2,242 2,242
Stock awards3,861 2 3,859
Allocation of ESOP stock1,575 1,209 366
Cash dividend(34,241)(34,241)
Exercise of stock options1,335 2 2,054 (721)0
Acquisition of company76,481 32 76,449 0
Purchase shares of common stock(26,066)(26,066)
Ending Balance at Dec. 31, 2019 $ 1,153,119 $ (4)(8,648)0 519 840,691 358,668 $ (4)(1,208)(36,903)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]us-gaap:AccountingStandardsUpdate201613Member
Net income $ 63,309 63,309
Other comprehensive income, net of tax1,829 1,829
Stock awards4,258 2 4,256
Allocation of ESOP stock1,135 1,215 (80)
Cash dividend(40,820)(40,820)
Exercise of stock options1,241 2 2,027 (788)0
Proceeds from preferred stock issuance, net of costs55,529 1 55,528
Preferred stock dividend(2,097)(2,097)
Acquisition of company $ 148,609 $ 112,836 $ 42 $ 44 $ 122,501 $ 112,792 $ 26,066
Purchase shares of common stock(14,814)(14,814)
Ending Balance at Dec. 31, 2020 $ 1,484,130 $ (7,433) $ 1 $ 609 $ 1,137,715 $ 378,268 $ 621 $ (25,651)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividend per share (in dollars per share) $ 0.68 $ 0.68 $ 0.62
Purchase of common stock, shares648,851 1,127,557 459,251

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Cash flows from operating activities:
Net income $ 63,309 $ 88,574 $ 71,932
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment8,453 8,363 8,706
Allocation of ESOP stock1,135 1,575 1,618
Stock awards4,258 3,861 3,038
Net excess tax expense (benefit) on stock compensation123 (357)(722)
Amortization of core deposit intangible6,186 4,027 3,811
Net accretion of purchase accounting adjustments(21,557)(14,094)(16,733)
Amortization of servicing asset93 42 98
Net premium amortization in excess of discount accretion on securities2,997 3,232 3,893
Net amortization of deferred costs on borrowings553 216 262
Net amortization of deferred costs and discounts on loans4,872 1,584 669
Credit loss expense59,404 1,636 3,490
Deferred tax (benefit) provision(4,615)16,053 (4,568)
Net loss on sale and write-down of other real estate owned(390)20 2,359
Net write-down of fixed assets held-for-sale to net realizable value3,853 7,532 4,024
Net gain on sale of fixed assets(6)(27)(26)
Net (gain) loss on equity securities(21,214)(267)199
Net gain on sales of loans(8,278)(16)(668)
Proceeds from sales of mortgage loans held for sale171,263 1,023 2,794
Mortgage loans originated for sale(213,428)(1,007)(2,498)
Increase in value of bank owned life insurance(6,424)(5,420)(5,105)
Net (gain) loss on sale of assets held for sale(21)17 (1,245)
(Increase) decrease in interest and dividends receivable(9,434)(397)186
Decrease (increase) in other assets17,030 (32,871)27,301
Increase (decrease) in other liabilities74,494 16,948 (10,264)
Total adjustments69,347 11,673 20,619
Net cash provided by operating activities132,656 100,247 92,551
Cash flows from investing activities:
Net (increase) decrease in loans receivable(428,444)(215,881)103,889
Purchases of loans receivable0 (101,674)(199,580)
Proceeds from sale of loans449,462 5,901 10,412
Purchase of debt investment securities available-for-sale(77,519)(60,158)(33,040)
Purchase of debt investment securities held-to-maturity(28,796)(4,381)(6,486)
Purchase of debt mortgage-backed securities held-to-maturity(195,277)0
Purchase of equity investments(96,519)(214)(191)
Proceeds from sale of equity investments16,978 0 0
Proceeds from maturities and calls of debt investment securities available-for-sale43,503 29,299 18,501
Proceeds from maturities and calls of debt investment securities held-to-maturity53,959 43,256 52,543
Proceeds from sales of debt mortgage backed securities held-to-maturity12,450 0 0
Proceeds from sales of debt investment securities available-for-sale10,598 0 0
Principal repayments on debt mortgage-backed securities available-for-sale306 503 655
Principal repayments on debt investment securities held-to-maturity857 0 0
Principal repayments on debt mortgage-backed securities held-to-maturity185,830 123,833 119,125
Proceeds from bank owned life insurance1,022 870 2,708
Proceeds from the redemption of restricted equity investments78,190 122,535 106,807
Purchases of restricted equity investments(59,525)(127,794)(127,048)
Proceeds from sales of other real estate owned855 2,060 5,438
Proceeds from sales of assets held for sale1,169 2,353 10,050
Purchases of premises and equipment(14,728)(5,075)(11,487)
Cash held in escrow for acquisitions0 (46,950)
Cash consideration received (paid) for acquisition, net of cash received23,460 59,395 (3,743)
Net cash (used in) provided by investing activities(22,169)(172,122)48,553
Cash flows from financing activities:
Increase (decrease) in deposits1,507,943 65,687 (143,025)
(Decrease) increase in short-term borrowings(226,018)105,979 126,092
Proceeds from Federal Home Loan Bank advances525,000 80,000 0
Repayments of Federal Home Loan Bank advances(840,200)(106,618)(67,155)
Net proceeds from issuance of subordinated notes122,180 0 0
Proceeds from Federal Reserve Bank Term advances53,778 0 0
Repayments from Federal Reserve Bank Term advances(53,778)0 0
Repayments of other borrowings(8,109)(263)(439)
(Decrease) increase in advances by borrowers for taxes and insurance(2,803)(182)2,910
Exercise of stock options1,241 1,335 5,324
Payment of employee taxes withheld from stock awards(2,084)(2,858)(3,295)
Purchase of treasury stock(14,814)(26,066)(10,837)
Net proceeds from the issuance of preferred stock55,529 0 0
Acquisition of common stock by ESOP0 0 (8,400)
Dividends paid(42,917)(34,241)(29,564)
Net cash provided by (used in) financing activities1,074,948 82,773 (128,389)
Net increase in cash and due from banks and restricted cash1,185,435 10,898 12,715
Supplemental disclosure of cash flow information:
Cash and due from banks and restricted cash at beginning of year133,226 122,328 109,613
Cash and due from banks at beginning of year120,544 120,792 109,613
Restricted cash at beginning of year12,682 1,536 0
Cash and due from banks at end of year1,272,134 120,544 120,792
Restricted cash at end of year46,527 12,682 1,536
Cash and due from banks and restricted cash at end of year1,318,661 133,226 122,328
Cash paid during the year for:
Interest66,454 52,315 36,447
Income taxes5,742 20,006 2,317
Non-cash activities:
Accretion of unrealized loss on securities reclassified to held-to-maturity756 991 2,905
Net loan charge-offs18,859 1,361 2,634
Transfer of premises and equipment to assets held-for-sale3,953 2,189 11,092
Transfer of loans receivable to other real estate owned106 963 992
Transfer of loans receivable to loans held for sale444,543 0 0
Unsettled trades of debt investment securities available-for-sale(1,404)0 0
Unsettled trades of debt investment securities held-to-maturity(3,000)0 0
Unsettled trades of equity securities8,142 0 0
Non-cash assets acquired:
Securities208,880 103,775 254,522
Restricted equity investments5,334 313 16,967
Loans1,558,480 307,778 1,517,345
Premises and equipment9,744 3,389 19,892
Accrued interest receivable4,161 1,390 5,621
Bank owned life insurance22,440 10,460 85,238
Deferred tax asset41 3,967 57,574
Other assets10,073 1,278 6,343
Goodwill and other intangible assets, net139,501 38,875 199,838
Total non-cash assets acquired1,958,654 471,225 2,163,340
Liabilities assumed:
Deposits1,594,403 449,018 1,616,073
Borrowings92,618 0 127,727
Other liabilities33,648 5,121 13,242
Total liabilities assumed $ 1,720,669 $ 454,139 $ 1,757,042

Summary of Significant Accounti

Summary of Significant Accounting Policies12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting PoliciesSummary 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., Casaba Real Estate Holdings Corporation, CBNJ Investments Corp., Country Property Holdings, Inc., and TRCB Investment Corp. Certain other subsidiaries were dissolved in 2020 and are included in the consolidated financial statements for previous periods. 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 (“GAAP”). 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 credit losses. 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, including in the economic environment, will be reflected in the financial statements in future periods. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash items in the process of collection and 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 (“HTM”), and debt and equity securities available-for-sale (“AFS”). Debt securities include U.S. government and agency obligations, state and municipal obligations, corporate debt securities, collateralized loan obligations, and mortgage-backed securities which are issued and guaranteed by either the Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”), Government National Mortgage Association (“GNMA”), or Small Business Administration (“SBA”) and collateralized mortgage obligations (“CMOs”). 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 HTM debt securities. Such securities are stated at amortized cost. Securities in the AFS 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. During 2013, the Company transferred $536.0 million of previously designated AFS debt securities to HTM 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. Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost less impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Credit Losses for Available-for-Sale Debt Securities As of January 1, 2020, the Company adopted ASC 326-30, Available-for-Sale Debt Securities. The adoption retained the fundamental nature of other-than-temporary impairment (“OTTI”) – that entities recognize credit losses only once securities become impaired. An AFS debt security is considered impaired when amounts are deemed uncollectible or when the company intends, or more likely than not will be required to sell, the AFS debt security before recovery of the amortized cost basis. If a determination is made that an AFS debt security is 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 a credit loss expense through an allowance for credit losses. The credit loss expense will be limited to the difference between the security’s amortized cost basis and fair value and any future changes may be reversed, limited to the amount previously expensed, in the period they occur. 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 AFS debt securities for impairment. Securities that are in an unrealized loss position are reviewed to determine if a credit loss exists based on certain quantitative and qualitative factors. The primary factors considered in evaluating whether an impairment exists include: (a) the extent to which the fair value is less than the amortized cost basis, (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 associated allowance for credit 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, 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 and has returned to accrual status. A loan is returned to accrual status when all amounts due have been received, payments remain current for a period of six months and the remaining principal and interest are deemed collectible. Loans are charged-off in the period the loans, or portion thereof, are deemed uncollectible. The Company will record a loan 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. Prior to the adoption of ASU 2016-13, the Company defined an impaired loan as non-accrual commercial real estate, multi-family, land, construction and commercial and industrial loans in excess of $250,000. Impaired loans also include all loans modified as troubled debt restructurings. 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. 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 troubled debt restructuring. Loans Held for Sale 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 generally determined based on bid quotations from securities dealers. Allowance for Credit Losses (“ACL”) Under the Current Expected Credit Loss (“CECL”) model, the allowance for credit losses on financial assets is a valuation allowance estimated at each balance sheet date in accordance with GAAP that is deducted from the financial assets’ amortized cost basis to present the net amount expected to be collected on the financial assets. The CECL model also applies to certain off-balance sheet credit exposures. The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to write-off accrued interest receivable by reversing interest income in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the amortized cost basis and therefore excludes it from the measurement of the ACL. For loans under forbearance as a result of Coronavirus Disease 2019 (“COVID-19”), the Company made a policy election to include the accrued interest receivable related to such loans in the amortized cost basis and therefore includes it in the measurement of the ACL. Accrued interest receivable at December 31, 2020 was $35.3 million, of which $8.0 million related to forbearance loans. Expected credit losses are reflected in the ACL through a charge to credit loss expense. The Company’s estimate of the ACL reflects credit losses currently expected over the remaining contractual life of the assets. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible. When available information confirms that specific financial assets, or portions thereof, are uncollectible, these amounts are charged-off against the ACL. Subsequent recoveries, if any, are credited to the ACL when received. The Company measures the ACL of financial assets on a collective portfolio segment basis when the financial assets share similar risk characteristics. The Company has identified the following portfolio segments of financial assets with similar risk characteristics for measuring expected credit losses: commercial and industrial, commercial real estate - owner occupied, commercial real estate - investor (including commercial real estate - construction and land), residential real estate, consumer (including student loans) and HTM debt securities. The Company further segments the commercial loan portfolios by risk rating, and the residential and consumer loan portfolios by delinquency. The HTM portfolio is segmented by rating category. The Company’s methodology to measure the ACL incorporates both quantitative and qualitative information to assess lifetime expected credit losses at the portfolio segment level. The quantitative component includes the calculation of loss rates using an open pool method. Under this method, the Company calculates a loss rate based on historical loan level loss experience for portfolio segments with similar risk characteristics. The historical loss rate is adjusted for select macroeconomic variables that consider both historical trends as well as forecasted trends for a single economic scenario. The adjusted loss rate is calculated for an eight quarter forecast period then reverts to the historical loss rate on a straight-line basis over four quarters. The Company differentiates its loss-rate method for HTM debt securities by looking to publicly available historical default and recovery statistics based on the attributes of issuer type, rating category and time to maturity. The Company measures expected credit losses of these financial assets by applying loss rates to the amortized cost basis of each asset taking into consideration amortization, prepayment and default assumptions. The Company considers qualitative adjustments to expected credit loss estimates for information not already captured in the loss estimation process. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Adjustments will not be made for information that has already been considered and included in the quantitative allowance. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data, changes in loan composition, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. Collateral Dependent Financial Assets For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less an appraisal discount and the estimated cost to sell. Due to conditions caused by COVID-19, appraisals ordered in the current environment may not be indicative of the underlying loan collateral value. As such, the Company may require multiple valuation approaches (sales comparison approach, income approach, cost approach), as applicable. The Company will assess the individual facts and circumstances of COVID-19-related loan downgrades and, if a new appraisal is not necessary, an additional discount may be applied to an existing appraisal. Troubled Debt Restructured (“TDR”) Loans A loan that has been modified or renewed is considered a TDR when two conditions are met: (1) the borrower is experiencing financial difficulty and (2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. So long as they share similar risk characteristics, TDRs may be collectively evaluated and included in the Company’s existing portfolio segments to measure the ACL, unless the TDR is collateral dependent. Loans modified in accordance with the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act are not considered TDRs. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial assets include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures through a charge to credit loss expense for off-balance sheet credit exposures. The ACL on off-balance sheet credit exposures is estimated by portfolio segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration management’s assumption of the likelihood that funding will occur, and is included in other liabilities on the Company’s consolidated balance sheets. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain acquired loans are grouped together according to similar risk characteristics and are aggregated when applying various valuation techniques. These cash flow evaluations are subjective as they require material estimates, all of which may be susceptible to significant change. Prior to January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Beginning on January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased with credit deterioration (“PCD”) loans. The Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that were current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses was made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. All loans considered to be PCI prior to January 1, 2020 were converted to PCD on that date. For acquired loans not deemed PCD at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Loan Losses (Prior to January 1, 2020) The allowance for loan losses (currently referred to as ACL on loans) represented a valuation account that reflected probable incurred losses in the loan portfolio. The adequacy of the allowance for loan losses was 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. The allowance for loan losses was maintained at an amount management considered sufficient to provide for probable losses. Acquired loans that have not been renewed since acquisition, or that had a PCI mark, were excluded from the allowance for loan loss calculation. The Bank calculated a general valuation allowance for these excluded acquired loans without a PCI mark and compared that to the remaining general credit and interest rate marks. To the extent the remaining general credit and interest rate marks exceeded the calculated general valuation allowance, no additional reserve was required. If the calculated general valuation allowance exceeded the remaining general credit and interest rate marks, the Bank recorded an adjustment to the extent necessary. The Bank’s allowance for loan losses included specific allowances and a general allowance, each updated on a quarterly basis. A specific allowance was determined for all impaired loans (excluding PCI loans). The Bank defined an impaired loan as all non-accrual commercial real estate, multi-family, land, construction and commercial loans (currently segmented as commercial real estate and commercial and industrial loans) in excess of $250,000 for which it was probable, based on current information, that the Company would not collect all amounts due under the contractual terms of the loan agreement. Impaired loans also included all loans modified as TDRs. For collateral dependent loans, the specific allowance represented 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 was 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. A general allowance was determined for all loans that were 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 segmented the loan portfolio into portfolio segments. The portfolio segments were further segmented by delinquency status or risk rating. An estimated loss factor was 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 utilized historical loss experience adjusted for certain qualitative factors and the loss emergence period. The Bank’s historical loss experience was 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 captured 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 was 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 considered in its estimate of the allowance for loan losses included: local and regional trends in economic growth, unemployment and real estate values. The Bank considered the applicability of each of these qualitative factors in estimating the general allowance for each portfolio segment. Each quarter, the Bank considered 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 calculated and analyzed the loss emergence period on an annual basis or more frequently if conditions warranted. The Bank’s methodology was to use loss events in the past 12 quarters to determine the loss emergence period for each loan segment. The loss emergence period was specific to each portfolio segment and represented 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 recorded an initial charge-off or downgrades the risk-rating of the loan to substandard. The Bank also maintained an unallocated portion of the allowance for loan losses. The primary purpose of the unallocated component was to account for the inherent factors that could not 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 have been fully captured in the Bank’s loss history or qualitative factors. 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, an estimate of the Bank’s obligation under a loss sharing arrangement for loans sold to the FHLB as well as the potential repair requests for guaranteed loans sold to the 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 and loss sharing obligations over the period of repurchase risk. The reserve for repurchased loans and loss sharing obligations, as well as SBA repair requests, is included in other liabilities on the Company’s consolidated statement of financial condition. Other Real Estate Owned (“OREO”) Other real estate owned 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 credit losses for loans. 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 estimated fair 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. Leases The Company recognizes operating lease agreements on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The ROU asset and lease liability are calculated as the present value of the minimum lease payments over the lease term, discounted for the rate implicit in the lease, provided the rate is readily determinable. Refer to Note 17 Leases for a further discussion on leases. 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. Bank Owned Life Insurance (“BOLI”) Bank owned life insurance 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, consists of goodwill and core deposit intangibles. 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, and if necessary, a quantitative assessment, in determining whether goodwill may be impaired. The factors considered in the qualitative assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, among others. Under a quantitative assessment, the Company will estimate the fair value of the Company by utilizing a weighted discounted cash flow method, guideline public company method and

Regulatory Matters

Regulatory Matters12 Months Ended
Dec. 31, 2020
Banking and Thrift, Interest [Abstract]
Regulatory MattersRegulatory Matters Applicable regulations require the Bank to maintain minimum levels of regulatory capital. Under the regulations in effect at December 31, 2020, the Bank was required to maintain a minimum ratio of Tier 1 capital to total average 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 2.50% 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 Federal Reserve Board (“FRB”) regulations. 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, 2020 and 2019, the Company and the Bank exceeded all regulatory capital requirements currently applicable . The following is a summary of the Bank’s and the Company’s regulatory capital amounts and ratios as of December 31, 2020 and 2019 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, 2020 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 942,122 8.48 % $ 444,648 4.00 % $ 555,810 5.00 % Common equity Tier 1 (to risk-weighted assets) 942,122 12.11 544,625 7.00 (1) 505,724 6.50 Tier 1 capital (to risk-weighted assets) 942,122 12.11 661,331 8.50 (1) 622,429 8.00 Total capital (to risk-weighted assets) 1,004,480 12.91 816,938 10.50 (1) 778,036 10.00 Company: Tier 1 capital (to average assets) $ 998,273 9.44 % $ 423,028 4.00 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 871,385 11.05 552,075 7.00 (1) N/A N/A Tier 1 capital (to risk-weighted assets) 998,273 12.66 670,377 8.50 (1) N/A N/A Total capital (to risk-weighted assets) 1,230,370 15.60 828,113 10.50 (1) N/A N/A 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 Company: 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 (1) Includes the Capital Conservation Buffer of 2.50%. The Bank satisfies the criteria to be well-capitalized under the Prompt Corrective Action Regulations. On January 1, 2019, the full capital conservation buffer requirement, of 2.50%, 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.

Business Combinations

Business Combinations12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]
Business CombinationsBusiness Combinations The Company incurred merger related expenses of $15.9 million, $10.5 million, and $26.9 million for the years ended December 31, 2020, 2019, and 2018, respectively. The following table summarizes the merger related expenses for the years ended December 31, 2020, 2019 and 2018 was as follows: For the Year Ended December 31, 2020 2019 2018 (in thousands) Data processing fees $ 3,758 $ 2,514 $ 6,017 Professional fees 3,638 4,239 4,414 Employee severance payments 7,727 2,942 15,660 Other/miscellaneous fees 824 808 820 Merger related expenses $ 15,947 $ 10,503 $ 26,911 Two River Bancorp Acquisition On January 1, 2020, the Company completed its acquisition of Two River Bancorp (“Two River”), which after purchase accounting adjustments added $1.11 billion to assets, $940.1 million to loans, and $941.8 million to deposits. Total consideration paid for Two River was $197.1 million, including cash consideration of $48.4 million. Two River 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 Two River, net of total consideration paid (in thousands): At January 1, 2020 Estimated Total purchase price: $ 197,050 Assets acquired: Cash and cash equivalents $ 51,102 Securities 64,381 Loans 940,072 Accrued interest receivable 2,382 Bank owned life insurance 22,440 Deferred tax assets, net 3,158 Other assets 15,956 Core deposit intangible 12,130 Total assets acquired 1,111,621 Liabilities assumed: Deposits (941,750) Other liabilities (59,026) Total liabilities assumed (1,000,776) Net assets acquired $ 110,845 Goodwill recorded in the merger $ 86,205 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the estimates and uncertainties used to determine fair value as of the closing date become available. As of January 1, 2021, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. Country Bank Holding Company, Inc. Acquisition On January 1, 2020, the Company completed its acquisition of Country Bank Holding Company, Inc. (“Country Bank”), which after purchase accounting adjustments added $793.7 million to assets, $618.4 million to loans, and $652.7 million to deposits. Total consideration paid for Country Bank was $112.8 million. Country 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 Country Bank, net of total consideration paid (in thousands): At January 1, 2020 Estimated Total purchase price: $ 112,836 Assets acquired: Cash and cash equivalents $ 20,799 Securities 144,499 Loans 618,408 Accrued interest receivable 1,779 Deferred tax assets, net (3,117) Other assets 9,195 Core deposit intangible 2,117 Total assets acquired 793,680 Liabilities assumed: Deposits (652,653) Other liabilities (67,240) Total liabilities assumed (719,893) Net assets acquired $ 73,787 Goodwill recorded in the merger $ 39,049 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the estimates and uncertainties used to determine fair value as of the closing date become available. As of January 1, 2021, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. 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 $494.4 million to assets, $307.3 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 Fair Value Total Purchase Price: $ 76,834 Assets acquired: Cash and cash equivalents $ 59,748 Securities 103,775 Loans 307,300 Accrued interest receivable 1,390 Bank owned life insurance 10,460 Deferred tax assets, net 4,101 Other assets 4,980 Core deposit intangible 2,662 Total assets acquired 494,416 Liabilities assumed: Deposits (449,018) Other liabilities (5,210) Total liabilities assumed (454,228) Net assets acquired $ 40,188 Goodwill recorded in the merger $ 36,646 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the estimates and uncertainties used to determine fair value as of the closing date become available. On January 31, 2020, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. 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 Estimated 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 assets, net 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 estimates and uncertainties used to determine fair value as of the closing date 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; 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; and regarding Two River and Country Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 1, 2020) through December 31, 2020. In addition, the table provides condensed pro forma financial information assuming the Two River, Country Bank, Sun and Capital Bank acquisitions had been completed as of January 1, 2018, for the year ended December 31, 2018, and January 1, 2019 for the year ended December 31, 2019. 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 Two River’s, Country Bank’s, Sun’s and Capital Bank’s operations. The pro forma information reflects adjustments related to certain purchase ac counting fair value adjustments, amortization of core deposit and other intangibles, and related income tax effects. Two River Actual from January 1, 2020 to December 31, 2020 Country Bank Actual from January 1, 2020 to December 31, 2020 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 (in thousands, except per share amounts) (unaudited) Net interest income $ 41,978 $ 27,411 $ 17,090 $ 63,889 $ 329,327 $ 337,118 Credit loss expense 6,117 4,481 385 1,215 2,686 4,545 Non-interest income 2,688 45 1,456 7,961 47,484 43,677 Non-interest expense 27,431 17,993 12,482 35,184 240,913 258,072 Provision for income taxes 2,686 1,204 1,193 7,090 23,870 21,098 Net income $ 8,432 $ 3,778 $ 4,486 $ 28,361 $ 109,342 $ 97,080 Fully diluted earnings per share $ 1.79 $ 1.56 Core Deposit Intangible The estimated future amortization expense for the core deposit intangible over the next five years and thereafter is as follows (in thousands): For the Year Ended December 31, Amortization Expense 2021 $ 5,452 2022 4,718 2023 3,984 2024 3,250 2025 2,516 Thereafter 3,748 Total $ 23,668 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 Two River, Country Bank, 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 the Company’s 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-step analysis: (1) expected lifetime losses and (2) estimated fair value adjustments for qualitative factors. The expected lifetime losses were calculated using an average of historical losses of the acquired bank or historical loss experiences of peer groups where deemed appropriate. The adjustment related to qualitative factors, if any, 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, subsequent to January 1, 2020, the Company identified loans that experienced more-than-insignificant deterioration in credit quality since origination. Loans meeting this 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 value estimates were based upon appraisals from independent third parties. In addition to owned properties, Two River operated 14 properties, Country Bank operated five properties, Sun operated 21 properties, and Capital Bank operated one property, subject to lease agreements. Deposits and Core Deposit Premium Core deposits were considered to be non-interest-bearing demand deposits, interest-bearing checking, money market and saving accounts acquired as part of the acquisitions. 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 was valued utilizing Level 2 inputs. The core deposit premiums totaled $12.1 million, $2.1 million, $2.7 million and $11.9 million, for the acquisitions of Two River, Country Bank, Sun and Capital Bank, respectively, and is being amortized over its estimated useful life of approximately 10 years under 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 were determined by calculating 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

Securities12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
SecuritiesSecurities The amortized cost, estimated fair value and allowance for credit losses of debt securities available-for-sale and held-to-maturity at December 31, 2020 and 2019 are as follows (in thousands): Amortized Gross Gross Estimated Allowance for Credit Losses At December 31, 2020 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 173,790 $ 3,152 $ (2) $ 176,940 $ — Collateralized loan obligations 6,174 — (4) 6,170 — Total investment securities 179,964 3,152 (6) 183,110 — Mortgage-backed securities - FNMA 190 2 — 192 — Total debt securities available-for-sale $ 180,154 $ 3,154 $ (6) $ 183,302 $ — Debt securities held-to-maturity: Investment securities: State and municipal obligations $ 238,405 $ 11,500 $ (231) $ 249,674 $ (48) Corporate debt securities 72,305 1,615 (2,652) 71,268 (1,550) Total investment securities 310,710 13,115 (2,883) 320,942 (1,598) Mortgage-backed securities: FHLMC 232,942 5,383 (124) 238,201 — FNMA 293,615 7,640 (147) 301,108 — GNMA 67,334 2,014 (12) 69,336 — SBA 5,392 — (60) 5,332 — CMO 32,321 1,226 — 33,547 (117) Total mortgage-backed securities 631,604 16,263 (343) 647,524 (117) Total debt securities held-to-maturity $ 942,314 $ 29,378 $ (3,226) $ 968,466 $ (1,715) Total debt securities $ 1,122,468 $ 32,532 $ (3,232) $ 1,151,768 $ (1,715) There was no allowance for credit losses on debt securities available-for-sale at December 31, 2020. 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 The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the year ended December 31, 2020 (in thousands): Investment Securities Mortgage-backed Securities Allowance for credit losses Beginning balance $ — $ — Impact of CECL adoption (1,268) — Provision for credit loss expense (330) (117) Total ending allowance balance $ (1,598) $ (117) 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 statement of financial condition, 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, 2020 and 2019 are as follows (in thousands): December 31, 2020 2019 Amortized cost $ 942,314 $ 772,975 Net loss on date of transfer from available-for-sale (13,347) (13,347) Allowance for credit loss (1,715) — Accretion of net unrealized loss on securities reclassified as held-to-maturity 10,001 9,245 Carrying value $ 937,253 $ 768,873 During the year ended December 31, 2020 there were $476,000 of realized gains on debt securities. There were no realized gains or losses on debt securities for the year ended December 31, 2019. The amortized cost and estimated fair value of investment securities at December 31, 2020 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, 2020, corporate debt securities with an amortized cost and estimated fair value of $53.8 million and $52.9 million, respectively, were callable prior to the maturity date. December 31, 2020 Amortized Estimated Less than one year $ 97,822 $ 98,394 Due after one year through five years 195,949 201,798 Due after five years through ten years 93,596 92,120 Due after ten years 103,307 111,740 Total investment securities $ 490,674 $ 504,052 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 $435.9 million and $475.6 million at December 31, 2020 and 2019, respectively, including $152.7 million and $81.4 million at December 31, 2020 and 2019, respectively, pledged as collateral for securities sold under agreements to repurchase. At December 31, 2020, there were no holdings of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity. The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at December 31, 2020 and December 31, 2019, segregated by the duration of the unrealized losses, are as follows (in thousands): As of December 31, 2020 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 $ 17,029 $ (2) $ — $ — $ 17,029 $ (2) Collateralized loan obligations 4,766 (4) — — 4,766 (4) Total debt securities available-for-sale 21,795 (6) — — 21,795 (6) Debt securities held-to-maturity: Investment securities: State and municipal obligations 2,823 (23) 7,509 (208) 10,332 (231) Corporate debt securities 10,192 (255) 35,935 (2,397) 46,127 (2,652) Total investment securities 13,015 (278) 43,444 (2,605) 56,459 (2,883) Mortgage-backed securities: FHLMC 24,661 (117) 669 (7) 25,330 (124) FNMA 39,365 (128) 939 (19) 40,304 (147) GNMA 5,856 (11) 207 (1) 6,063 (12) SBA 3,626 (12) 1,706 (48) 5,332 (60) Total mortgage-backed securities 73,508 (268) 3,521 (75) 77,029 (343) Total debt securities held-to-maturity 86,523 (546) 46,965 (2,680) 133,488 (3,226) Total debt securities $ 108,318 $ (552) $ 46,965 $ (2,680) $ 155,283 $ (3,232) 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) At December 31, 2020, 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, 2020 Security Description Amortized Estimated Credit Rating Chase Capital $ 10,000 $ 9,479 Baa1/BBB- Wells Fargo Capital 5,000 4,702 A1/BBB- Huntington Capital 5,000 4,546 Baa2/BB+ Keycorp Capital 5,000 4,647 Baa2/BB+ PNC Capital 5,000 4,743 Baa1/BBB- State Street Capital 3,332 3,147 A3/BBB SunTrust Capital 5,000 4,671 Not Rated/BBB- Total $ 38,332 $ 35,935 At December 31, 2020, 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, 2020. 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 FHLMC, FNMA, GNMA, or 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. Additionally, there are private label commercial mortgage-backed securities with credit ratings from multiple credit rating services ranging between Aaa and Aa2. The Company considers the unrealized losses to be the result of changes in interest rates, and not credit quality, 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, 2020. 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 Baa2/BBB. 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 not impaired as of December 31, 2020. The Company monitors the credit quality of debt securities held-to-maturity on a quarterly basis through the use of internal credit analysis supplemented by external credit ratings. The following table summarized the amortized cost of debt securities held-to-maturity at December 31, 2020 aggregated by credit quality indicator (in thousands): AAA AA A BBB BB Total As of December 31, 2020 Investment securities: State and municipal obligations $ 34,091 $ 130,218 $ 59,272 $ 14,824 $ — $ 238,405 Corporate debt securities — 496 11,978 48,498 11,333 72,305 Total investment securities 34,091 130,714 71,250 63,322 11,333 310,710 Mortgage-backed securities: CMO 11,118 21,203 — — — 32,321 Total mortgage-backed securities 11,118 21,203 — — — 32,321 Total debt securities held-to-maturity $ 45,209 $ 151,917 $ 71,250 $ 63,322 $ 11,333 $ 343,031 At December 31, 2020, and 2019, the Company held equity investments at an estimated fair value of $107.1 million and $10.1 million, respectively. The equity investments primarily comprised of select financial services institutions’ common stocks paying attractive dividends. During the year ended December 31, 2020, there were $5.4 million of realized gains on equity securities. There were no realized gains or losses on equity securities for the year ended December 31, 2019. The realized and unrealized gains on equity securities for the year ended December 31, 2020 are shown in the table below (in thousands). For the year ended December 31, 2020 Net gain on equity investments $ 21,214 Less: Net gains recognized on equity securities sold 5,401 Unrealized gain recognized on equity securities still held $ 15,813

Loans Receivable, Net

Loans Receivable, Net12 Months Ended
Dec. 31, 2020
Receivables [Abstract]
Loans Receivable, NetLoans Receivable, Net Loans receivable, net, at December 31, 2020 and 2019 consisted of the following (in thousands): December 31, 2020 2019 Commercial: Commercial and industrial (1) $ 470,656 $ 396,434 Commercial real estate - owner occupied 1,145,065 792,653 Commercial real estate - investor 3,491,464 2,296,410 Total commercial 5,107,185 3,485,497 Consumer: Residential real estate 2,309,459 2,321,157 Home equity loans and lines 285,016 318,576 Other consumer 54,446 89,422 Total consumer 2,648,921 2,729,155 Total loans receivable 7,756,106 6,214,652 Deferred origination costs, net of fees 9,486 9,880 Allowance for credit losses (60,735) (16,852) Total loans receivable, net $ 7,704,857 $ 6,207,680 (1) The commercial and industrial loans balance at December 31, 2020 includes Paycheck Protection Program (“PPP”) loans of $95.4 million. The Company categorizes all 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. Generally, risk ratings for loans on forbearance pursuant to the CARES Act are not re-evaluated until the initial 90-day forbearance period ends. At that time, risk ratings are updated with an emphasis on industries that were heavily impacted by the pandemic, as well as individual borrower liquidity, and other measures of resiliency as described below. The Company evaluates risk ratings on an ongoing basis and as such, adversely rated loans will be re-evaluated as government restrictions end and businesses resume normal operations. 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. This includes borrowers that have been negatively affected by the pandemic but demonstrate some degree of liquidity. This liquidity may or may not be adequate to resume operations. 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. This includes borrowers whose operations were negatively affected by the pandemic and whom, in the Bank’s assessment, do not have adequate liquidity available to resume operations at levels sufficient to service their current debt levels. 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. The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands): 2020 2019 2018 2017 2016 2015 and prior Revolving lines of credit Total December 31, 2020 Commercial and industrial Pass $ 137,262 $ 40,737 $ 27,967 $ 18,845 $ 33,568 $ 59,339 $ 134,140 $ 451,858 Special Mention 150 583 826 1,422 907 118 1,429 5,435 Substandard 581 1,284 1,243 809 439 1,706 7,301 13,363 Total commercial and industrial 137,993 42,604 30,036 21,076 34,914 61,163 142,870 470,656 Commercial real estate - owner occupied Pass 96,888 114,506 122,962 124,050 104,264 428,423 18,932 1,010,025 Special Mention — 3,512 8,240 1,023 17,115 17,811 439 48,140 Substandard — 34,670 9,001 3,404 3,677 35,509 639 86,900 Total commercial real estate - owner occupied 96,888 152,688 140,203 128,477 125,056 481,743 20,010 1,145,065 Commercial real estate - investor Pass $ 635,930 $ 628,435 $ 317,104 $ 426,268 $ 281,876 $ 812,062 $ 194,913 $ 3,296,588 Special Mention — 15,979 17,113 15,225 4,234 55,872 149 108,572 Substandard 4,311 9,217 1,931 17,222 11,474 36,326 5,823 86,304 Total commercial real estate - investor 640,241 653,631 336,148 458,715 297,584 904,260 200,885 3,491,464 Consumer: Residential real estate (1) Pass $ 595,982 $ 437,593 $ 226,435 $ 166,773 $ 146,237 $ 729,037 $ — $ 2,302,057 Special Mention — 532 — — 446 2,186 — 3,164 Substandard 570 — 1,489 221 — 1,958 — 4,238 Total residential real estate 596,552 438,125 227,924 166,994 146,683 733,181 — 2,309,459 Consumer (1) Pass 24,954 26,659 83,296 25,469 16,565 156,276 2,145 335,364 Special Mention — — — — 150 382 — 532 Substandard — — — — — 3,566 — 3,566 Total consumer 24,954 26,659 83,296 25,469 16,715 160,224 2,145 339,462 Total loans receivable $ 1,496,628 $ 1,313,707 $ 817,607 $ 800,731 $ 620,952 $ 2,340,571 $ 365,910 $ 7,756,106 (1) For residential real estate and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. An analysis of the allowance for credit losses on loans for the years ended December 31, 2020 and 2019 is as follows (in thousands): Commercial Commercial Real Estate - Owner Occupied Commercial Real Estate - Investor Residential Consumer Unallocated Total For the Year Ended December 31, 2020 Allowance for credit losses on loans Balance at beginning of year $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Impact of CECL adoption 2,416 (1,109) (5,395) 3,833 2,981 (25) 2,701 Initial allowance for credit losses on PCD loans 1,221 26 260 109 1,023 — 2,639 Credit loss expense (benefit) (1) 1,039 15,007 34,935 8,191 (1,770) — 57,402 Charge-offs (1) (890) (1,769) (13,081) (3,200) (1,244) — (20,184) Recoveries 146 6 101 883 189 — 1,325 Balance at end of year $ 5,390 $ 15,054 $ 26,703 $ 11,818 $ 1,770 $ — $ 60,735 For the Year Ended December 31, 2019 Allowance for credit losses on loans Balance at beginning of year $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Credit loss (benefit) expense (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 (1) The year ended December 31, 2020 was impacted by the shift in current and forward-looking economic conditions, credit migration and borrower vulnerability related to COVID-19. The Company recorded $14.6 million of charge-offs related to the sale of higher-risk commercial loans and $3.3 million of charge-offs related to the sale of under-performing residential and consumer loans. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. At December 31, 2020, the Company had collateral dependent loans with an amortized cost balance as follows: commercial and industrial of $1.9 million, commercial real estate - owner occupied of $13.8 million, and commercial real estate - investor of $18.3 million. In addition, the Company had residential and consumer loans collateralized by residential real estate, which are in the process of foreclosure, with an amortized cost balance of $1.4 million and $1.8 million at December 31, 2020 and December 31, 2019, respectively. The amount of foreclosed residential real estate property held by the Company was $106,000 and $51,000 at December 31, 2020 and December 31, 2019, respectively. In accordance with ASC 310, prior to the adoption of ASU 2016-13, the following table presents 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, excluding PCI loans (in thousands): Commercial Commercial Real Estate - Owner Occupied Commercial Real Estate - Investor Residential Real Estate Consumer Unallocated Total At 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 As of December 31, 2019, the Company defined an impaired loan as non-accrual commercial real estate, multi-family, land, construction and commercial loans in excess of $250,000. Impaired loans also included all loans modified as troubled debt restructurings. At December 31, 2019, the impaired loan portfolio totaled $26.5 million for which there was a $476,000 specific allocation in the allowance for loan losses. The average balance of impaired loans for the year ended December 31, 2019 was $29.4 million. If interest income on non-accrual loans and impaired loans had been current in accordance with their original terms, approximately $372,000 and $419,000 of interest income for the years ended December 31, 2019 and 2018, respectively, would have been recorded. At December 31, 2019, impaired loans include 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. The summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2019 was 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 — Total with no related allowance recorded $ 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 Total with an allowance recorded $ 2,378 $ 2,197 $ 476 For the Year Ended December 31, 2019 Average Interest With no related allowance recorded: Commercial and industrial $ 523 $ 5 Commercial real estate – owner occupied 4,171 179 Commercial real estate – investor 9,012 222 Residential real estate 10,275 548 Consumer 3,275 178 Total with no related allowance recorded $ 27,256 $ 1,132 With an allowance recorded: Commercial and industrial $ — $ — Commercial real estate – owner occupied 2,173 138 Commercial real estate – investor — — Residential real estate — — Consumer — — Total with an allowance recorded $ 2,173 $ 138 The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of December 31, 2020 and 2019 (in thousands). The December 31, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020). December 31, 2020 2019 Commercial and industrial $ 1,908 $ 207 Commercial real estate – owner occupied 13,751 4,811 Commercial real estate – investor 18,287 2,917 Residential real estate 8,671 7,181 Consumer 4,246 2,733 Total non-accrual loans $ 46,863 $ 17,849 At December 31, 2020, the non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At December 31, 2020 and December 31, 2019, there were no loans that were 90 days or greater past due and still accruing interest. The following table presents the aging of the recorded investment in past due loans as of December 31, 2020 and 2019 by loan portfolio segment (in thousands). The December 31, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020). 30-59 60-89 90 Days or Greater Total Loans Not Total December 31, 2020 Commercial and industrial $ 3,050 $ 628 $ 327 $ 4,005 $ 466,651 $ 470,656 Commercial real estate – owner occupied 1,015 — 7,871 8,886 1,136,179 1,145,065 Commercial real estate – investor 8,897 3,233 11,122 23,252 3,468,212 3,491,464 Residential real estate 15,156 3,164 4,238 22,558 2,286,901 2,309,459 Consumer 978 533 3,568 5,079 334,383 339,462 Total loans receivable $ 29,096 $ 7,558 $ 27,126 $ 63,780 $ 7,692,326 $ 7,756,106 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 Total loans receivable $ 11,231 $ 6,119 $ 9,286 $ 26,636 $ 6,174,751 $ 6,201,387 The Company classifies certain loans as TDRs 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. Residential real estate and consumer loans where the borrower’s debt is discharged in a bankruptcy filing are also considered TDRs. For these loans, the Bank retains its security interest in the real estate collateral. At December 31, 2020 and 2019, TDR loans totaled $17.5 million and $24.6 million, respectively. Included in the non-accrual loan total at December 31, 2020 and 2019 were $5.5 million and $6.6 million, respectively, of TDRs. At December 31, 2020 and 2019, the Company had $0 and $476,000, respectively, of specific reserves allocated to loans that are classified as TDRs. Non-accrual loans which become TDRs are generally returned to accrual status after six months of performance. In addition to the TDRs included in non-accrual loans, the Company also has loans classified as accruing TDRs at December 31, 2020 and 2019 which totaled $12.0 million and $18.0 million, respectively. The following table presents information about TDRs which occurred during the years ended December 31, 2020 and 2019, and TDRs modified within the previous year and which defaulted during the years ended December 31, 2020 and 2019 (dollars in thousands): Number Pre-modification Post-modification For the Year Ended December 31, 2020 Troubled debt restructurings: Commercial real estate – owner occupied 1 $ 1,112 $ 1,143 Commercial real estate – investor 2 1,035 1,116 Residential real estate 6 1,018 1,065 Consumer 6 1,035 668 Number of Loans Recorded Investment Troubled debt restructurings Which subsequently defaulted: None None 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 In response to the COVID-19 pandemic and its economic impact on customers, short-term modification programs that comply with the CARES Act were implemented to provide temporary payment relief to those borrowers directly impacted by COVID-19. The Commercial Borrower Relief Program allowed for the deferral of principal and interest or principal only. For principal and interest deferrals as well as principal only deferrals, all payments received are first applied to all accrued and unpaid interest and the balance, if any, on account of unpaid principal, is then applied to fees, expenses and other amounts due to the Bank. Monthly payments will continue until the maturity date when all then unpaid principal, interest, fees, and all other charges are due and payable to the Bank. The Consumer Borrower Relief Program allowed for the deferral of principal and interest. The deferred payments along with interest accrued during the deferral period are due and payable on the maturity date. Provided these loans were current as of either year end or the date of the modification, these loans were not considered TDR loans at December 31, 2020 and will not be reported as past due during the deferral period. As part of the Two River and Country Bank acquisitions, the Company purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of the PCD loans is as follows (in thousands): Two River Country Bank January 1, 2020 January 1, 2020 Purchase price of loans at acquisition $ 26,354 $ 24,667 Allowance for credit losses at acquisition 1,343 1,296 Non-credit discount at acquisition 3,589 5,334 Par value of acquired loans at acquisition $ 31,286 $ 31,297 The following table summarizes the changes in accretable yield for PCI loans during the year ended December 31, 2019 (in thousands): For the Year Ended December 31, 2019 Beginning balance $ 3,630 Acquisition 691 Accretion (2,613) Reclassification from non-accretable difference 1,317 Ending balance $ 3,025

Interest and Dividends Receivab

Interest and Dividends Receivable12 Months Ended
Dec. 31, 2020
Receivables [Abstract]
Interest and Dividends ReceivableInterest and Dividends Receivable Interest and dividends receivable at December 31, 2020 and 2019 are summarized as follows (in thousands): December 31, 2020 2019 Loans receivable $ 30,893 $ 17,664 Debt securities, equity investments and other 3,169 2,827 Mortgage-backed securities 1,207 1,183 Total interest and dividends receivable $ 35,269 $ 21,674

Premises and Equipment, Net

Premises and Equipment, Net12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Premises and Equipment, NetPremises and Equipment, Net Premises and equipment, net of accumulated depreciation and amortization expense at December 31, 2020 and 2019 are summarized as follows (in thousands): December 31, 2020 2019 Land $ 23,109 $ 24,446 Buildings and improvements 99,350 97,653 Leasehold improvements 8,640 9,274 Furniture and equipment 31,639 25,558 Finance lease 1,845 2,572 Other 10,270 2,764 Total 174,853 162,267 Accumulated depreciation and amortization (67,759) (59,576) Total premises and equipment, net $ 107,094 $ 102,691 Depreciation and amortization expense for the years ended December 31, 2020, 2019, and 2018 amounted to $8.5 million, $8.2 million and $8.7 million, respectively.

Deposits

Deposits12 Months Ended
Dec. 31, 2020
Banking and Thrift, Other Disclosures [Abstract]
DepositsDeposits Deposits, including accrued interest payable of $367,000 at December 31, 2020 and $238,000 at December 31, 2019, are summarized as follows (in thousands): December 31, 2020 2019 Amount Weighted Amount Weighted Non-interest-bearing accounts $ 2,133,195 — % $ 1,377,396 — % Interest-bearing checking accounts 3,646,866 0.49 2,539,428 0.68 Money market deposit accounts 783,521 0.19 578,147 0.68 Savings accounts 1,491,251 0.05 898,174 0.13 Time deposits 1,372,783 1.51 935,632 1.82 Total deposits $ 9,427,616 0.43 % $ 6,328,777 0.62 % Included in time deposits at December 31, 2020 and 2019 were $409.5 million and $150.6 million, respectively, in deposits of $250,000 and over. Time deposits at December 31, 2020 mature as follows (in thousands): For the Year Ended December 31, Time Deposit Maturities 2021 $ 973,426 2022 265,668 2023 63,132 2024 46,321 2025 15,138 Thereafter 9,098 Total $ 1,372,783 Interest expense on deposits for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 Interest-bearing checking accounts $ 19,395 $ 16,820 $ 9,219 Money market deposit accounts 2,902 4,919 2,818 Savings accounts 2,505 1,195 990 Time deposits 23,488 15,498 9,551 Total interest expense on deposits $ 48,290 $ 38,432 $ 22,578

Borrowed Funds

Borrowed Funds12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]
Borrowed FundsBorrowed Funds Borrowed funds are summarized as follows (in thousands): December 31, 2020 2019 Amount Weighted Amount Weighted FHLB advances $ — — % $ 519,260 1.84 % Securities sold under agreements to repurchase with retail customers 128,454 0.33 71,739 0.42 Other borrowings 235,471 4.58 96,801 4.64 Total borrowed funds $ 363,925 3.08 % $ 687,800 2.09 % The Company prepaid all of its FHLB advances, in addition to the advances that matured, in 2020. The total FHLB prepayment fees incurred for the year ended December 31, 2020 was $14.3 million. Information concerning FHLB advances and securities sold under agreements to repurchase with retail customers (“reverse repurchase agreements”) is summarized as follows (in thousands): FHLB Reverse Repurchase 2020 2019 2020 2019 Average balance $ 413,290 $ 387,925 $ 125,500 $ 64,525 Maximum amount outstanding at any month end 825,824 519,260 153,810 71,739 Average interest rate for the year 1.70 % 2.18 % 0.45 % 0.43 % Amortized cost of collateral: Mortgage-backed securities $ — $ — $ 147,445 $ 80,436 Estimated fair value of collateral: Mortgage-backed securities — — 152,679 81,365 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. Reverse repurchase agreements have contractual maturities at December 31, 2020 as follows (in thousands): Reverse For the Year Ended December 31, 2021 $ 128,454 Total $ 128,454 The other borrowings at December 31, 2020 include the following (in thousands): Type of Debt Stated Value Carrying Value Interest Rate Maturity Subordinated debt $ 35,000 $ 34,804 5.125 % (1) September 30, 2026 Subordinated debt 125,000 122,446 5.250 % (2) May 15, 2030 Subordinated debt 7,500 7,539 7.210 % (3) October 1, 2025 Trust preferred 5,000 5,000 3 month LIBOR plus 165 basis points August 1, 2036 Trust preferred 30,000 22,944 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 7,737 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 7,601 3 month LIBOR plus 139 basis points October 1, 2037 Trust preferred 10,000 7,800 3 month LIBOR plus 225 basis points December 15, 2034 Finance lease 2,100 2,100 5.625 % June 30, 2029 Total $ 252,100 $ 235,471 (1) Adjusts to a floating rate of 392 basis points over 3 month London Inter-bank Offered Rate (“LIBOR”) on September 30, 2021. (2) Adjusts to a floating rate of 509.5 basis points over 3 month Secured Overnight Financing Rate on May 15, 2025. (3) In January 2021, the Company prepaid the subordinated debt in its entirety. All of the trust preferred debt is currently callable. Interest expense on borrowings for the years ended December 31, 2020, 2019, and 2018 was as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 FHLB advances $ 7,018 $ 8,441 $ 7,885 Reverse repurchase agreements 562 276 168 Other borrowings 10,787 5,674 5,521 Total interest expense on borrowings $ 18,367 $ 14,391 $ 13,574 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 Taxes12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income TaxesIncome Taxes The provision for income taxes for the years ended December 31, 2020, 2019 and 2018 consists of the following (in thousands): For the Year Ended December 31, 2020 2019 2018 Current Federal $ 15,731 $ 1,991 $ 18,030 State 6,617 740 108 Total current 22,348 2,731 18,138 Deferred Federal (2,746) 18,846 (4,568) State (1,869) (2,793) — Total deferred (4,615) 16,053 (4,568) Total provision for income taxes $ 17,733 $ 18,784 $ 13,570 Included in other comprehensive income was 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 $721,000, $874,000, and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. 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, 2020, 2019 and 2018 was as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 Income before provision for income taxes $ 81,042 $ 107,358 $ 85,502 Applicable statutory Federal income tax rate 21.0 % 21.0 % 21.0 % Computed “expected” Federal income tax expense $ 17,019 $ 22,545 $ 17,955 Increase (decrease) in Federal income tax expense resulting from State income taxes, net of Federal benefit 3,751 583 85 Earnings on BOLI (1,349) (1,138) (1,072) Tax exempt interest (1,161) (665) (615) Merger related expenses 138 297 322 Stock compensation (136) (386) (758) Revaluation of state deferred tax asset — (2,205) — Impact of Tax Cuts and Jobs Act (“Tax Reform”) — — (1,854) Reclassification of certain tax effect from accumulated other comprehensive income (204) (221) (586) Other items, net (325) (26) 93 Total provision for income taxes $ 17,733 $ 18,784 $ 13,570 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 are presented in the following table (in thousands): December 31, 2020 2019 Deferred tax assets: Allowance for credit losses on loans and debt securities HTM $ 16,168 $ 4,107 Other reserves 2,485 3,061 Incentive compensation 2,919 1,397 Deferred compensation 533 591 Stock plans 2,214 1,270 Unrealized loss on properties available-for-sale 2,435 1,438 Unrealized loss on securities 272 826 Net operating loss carryforwards related to acquisition 33,014 39,519 Deferred fees on PPP loans 517 — Other, net 195 178 Federal and state alternative minimum tax 3,705 4,746 Total gross deferred tax assets 64,457 57,133 Deferred tax liabilities: Unrealized gain on equity securities (4,154) — Premises and equipment (5,871) (7,340) Deferred loan and commitment costs, net (2,968) (2,379) Purchase accounting adjustments (602) 8,475 Investments, discount accretion (452) (380) Undistributed REIT income — (4,735) Other, net (783) (707) Total gross deferred tax liabilities (14,830) (7,066) Net deferred tax assets $ 49,627 $ 50,067 The 2020 deferred tax expense does not equal the change in net deferred tax assets as a result of net deferred liabilities recorded in connection with the Two River and Country Bank acquisitions of approximately $4.5 million. The Company has Federal net operating losses from the acquisitions of Colonial American Bank (“Colonial American”) and Sun. At December 31, 2020 and 2019, the net operating losses from Colonial American were $4.6 million and $4.9 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, 2020 and 2019, the net operating losses from Sun were $152.6 million and $175.9 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, 2020 and 2019 , the Company had $1.8 million of New Jersey Alternative Minimum Assessment Tax (“AMT”) Credits. These credits do not expire. As of December 31, 2020 and 2019 , the Company had $0 and $1.0 million, respectively, of AMT Tax Credits that were part of the Cape Bancorp, Inc. (“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, 2020, 2019 and 2018, 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, 2020 included approximately $10.8 million for which no provision for income tax has been made. This amount represented 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, 2020, the Company had an unrecognized deferred tax liability of $2.8 million with respect to this reserve. There were no unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018. The tax years that remain subject to examination by the Federal government and the state of New York include the years ended December 31, 2017 and forward. The tax years that remain subject to examination by the state of New Jersey include the years ended December 31, 2016 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. 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 an 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 required that the effect of income tax law changes on deferred taxes 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 an 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, 2020, subject to reclassification, was $786,000.

Employee Stock Ownership Plan

Employee Stock Ownership Plan12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]
Employee Stock Ownership PlanEmployee 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, 2020 and 2019, contributions to the ESOP, which were used to fund principal and interest payments on the ESOP debt, totaled $1.5 million. During 2020 and 2019, $313,000 and $357,000, respectively, of dividends paid on unallocated ESOP shares were used for debt service. At December 31, 2020 and 2019, the loan had an outstanding balance of $8.1 million and $9.3 million, respectively, and the ESOP had unallocated shares of 394,080 and 459,711, respectively. At December 31, 2020, the unallocated shares had a fair value of $7.3 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 year ended December 31, 2020, the Bank recorded compensation expense related to the ESOP of $1.1 million including $80,000 representing a decrease in compensation expense to reflect the decrease in the average fair value of shares committed to be released and allocated shares below the Bank’s cost. For the years ended December 31, 2019 and 2018, the Bank recorded compensation expense related to the ESOP of $1.6 million, and $1.6 million, respectively, including $366,000, and $596,000,

Incentive Plan

Incentive Plan12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Incentive PlanIncentive Plan On May 5, 2011, the OceanFirst Financial Corp. 2011 Stock Incentive Plan, which 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 select senior management executives. On May 20, 2020, the OceanFirst Financial Corp. 2020 Stock Incentive Plan, which also authorizes the granting of stock options or awards of common stock, was approved by stockholders. 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 2020 Stock Incentive Plan, the Company is authorized to issue up to 2,000,000 shares subject to option or, in lieu of options, up to 800,000 shares in the form of stock awards. At December 31, 2020, 969,294 options or 387,718 awards remain available for issuance. 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, 2020, 47,690 options or 19,076 awards remain available for issuance. 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 were accounted for as part of the acquisition. Stock awards generally vest at the rate of 20% per year. The Company granted to senior executives performance-based awards in 2020, 2019 and 2018, which vest in equal amounts over a five-year period (for 2020 and 2019 awards) or a three-year period (for 2018 awards) when a specific performance metric has been attained or exceeded. Tiered performance goals for each metric are aligned with corresponding tiered vesting values and have been set using financial data from the applicable strategic plan as approved by the Board. The Company accrues expense for the performance-based awards based on the estimated probability of achievement of the defined performance goals. 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 $1.5 million, $973,000, and $1.0 million, of expense for stock option grants and $2.8 million, $2.9 million, and $2.0 million, of expense for stock award grants, for the years ended December 31, 2020, 2019 and 2018, respectively. At December 31, 2020, the Company had $12.5 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 3.25 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: 2020 2019 2018 Risk-free interest rate 1.03 % 2.63 % 2.65 % Expected option life 7 years 7 years 7 years Expected volatility 23 % 21 % 21 % Expected dividend yield 3.33 % 2.70 % 2.19 % Weighted average fair value of an option share granted during the year $ 2.93 $ 4.47 $ 5.44 Intrinsic value of options exercised during the year (in thousands) 2,499 2,994 8,513 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, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Number Weighted Number Weighted Number Weighted Outstanding at beginning of year 2,424,032 $ 19.80 2,340,842 $ 18.25 2,489,314 $ 16.91 Granted 699,651 20.44 461,407 25.20 135,107 27.39 Assumed in acquisition — — — — 491,248 21.92 Exercised (213,506) 9.50 (227,189) 11.24 (765,624) 17.69 Forfeited (6,357) 21.26 (149,158) 24.71 (9,203) 28.42 Expired (64,953) 22.51 (1,870) 29.59 — — Outstanding at end of year 2,838,867 $ 20.67 2,424,032 $ 19.80 2,340,842 $ 18.25 Options exercisable 1,596,927 1,612,946 1,604,576 The following table summarizes information about stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Exercise Prices Number Weighted Weighted Number Weighted Weighted 9.54 to 14.41 397,734 1.0 years $ 13.41 397,734 1.0 years $ 13.41 14.42 to 19.28 743,519 3.7 16.72 696,051 3.6 16.68 19.29 to 24.15 753,703 8.8 20.56 48,771 4.5 22.07 24.16 to 29.01 943,911 6.5 26.93 454,371 5.4 27.62 2,838,867 5.6 years $ 20.67 1,596,927 3.5 years $ 19.14 The aggregate intrinsic value for stock options outstanding and stock options exercisable at December 31, 2020 was $3.5 million and $3.4 million, respectively. A summary of the granted but unvested stock award activity for the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Number Weighted Number Weighted Number Weighted Outstanding at beginning of year: 451,443 $ 25.61 330,598 $ 25.92 169,703 $ 21.79 Granted 256,649 20.38 249,651 24.80 272,668 27.52 Vested (96,564) 24.41 (105,307) 24.49 (58,754) 20.81 Forfeited (35,532) 26.56 (23,499) 26.38 (53,019) 26.60 Outstanding at end of year 575,996 $ 23.42 451,443 $ 25.61 330,598 $ 25.92

Commitments, Contingencies and

Commitments, Contingencies and Concentrations of Credit Risk12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments, Contingencies and Concentrations of Credit RiskCommitments, Contingencies and Concentrations of Credit RiskThe 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, 2020, the following commitments and contingent liabilities existed which are not reflected in the accompanying consolidated financial statements (in thousands): December 31, 2020 Unused consumer and construction loan lines of credit (primarily floating-rate) $ 372,159 Unused commercial loan lines of credit (primarily floating-rate) 668,114 Other commitments to extend credit: Fixed-rate 234,608 Adjustable-rate 2,750 Floating-rate 130,448 The Company’s fixed-rate loan commitments expire within 90 days of issuance and carried interest rates ranging from 2.50% to 6.38% at December 31, 2020. 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, 2020, the Company is obligated under noncancelable operating leases for premises and equipment. Rental and lease expense under these leases aggregated approximately $7.9 million, $5.0 million, and $5.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Refer to Note 17 Leases, for the projected minimum lease commitments as of December 31, 2020. The Company grants residential real estate and first mortgage commercial 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 Share12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]
Earnings Per ShareEarnings Per Share The following reconciles average shares outstanding for basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018 (in thousands): December 31, 2020 2019 2018 Weighted average shares outstanding 60,358 50,701 47,266 Less: Unallocated ESOP shares (426) (493) (435) Unallocated incentive award shares and shares held by deferred compensation plan (13) (42) (58) Average basic shares outstanding 59,919 50,166 46,773 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan 153 580 884 Average diluted shares outstanding 60,072 50,746 47,657 For the years ended December 31, 2020, 2019 and 2018, antidilutive stock options of 2,242,000, 993,000, and 504,000, respectively, were excluded from the earnings per share calculations.

Fair Value Measurements

Fair Value Measurements12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value MeasurementsFair 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. 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) and Level 3 inputs which were utilized for certain state and municipal obligations known as bond anticipation notes (“BANs”). 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 primarily determined using a quoted price in an active market or exchange (Level 1). Equity securities without readily determinable fair values are carried at cost less impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Equity securities include convertible preferred stock for which fair value was determined using broker or dealer quotes with limited levels of activity and price transparency (Level 3). 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 Loans Individually Measured for Impairment 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, 2020 and 2019, 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 Level 1 Level 2 Level 3 December 31, 2020 Items measured on a recurring basis: Debt securities available-for-sale $ 183,302 $ — $ 183,302 $ — Equity investments 107,079 104,539 — 2,540 Interest rate swaps asset 45,289 — 45,289 — Interest rate swaps liability (45,429) — (45,429) — Items measured on a non-recurring basis: Other real estate owned 106 — — 106 Loans measured for impairment based on the fair value of the underlying collateral 35,366 — — 35,366 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 swaps asset 10,141 — 10,141 — Interest rate swaps 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 The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no transfers of assets between Level 1 and Level 2 during the years ended December 31, 2020 and 2019. The following table reconciles, for the year ended December 31, 2020, the beginning and ending balances for debt securities available-for-sale that are recognized at fair value on a recurring basis, in the consolidated statements of financial condition, using significant unobservable inputs (in thousands): For the Year Ended December 31, 2020 Beginning balance $ 25 Total gains (losses) included in earnings — Purchases 2,377 Transfers into Level 3 — Transfers out of Level 3 — Maturities (2,402) Ending balance $ — The Company purchased $2.4 million (fair value) of equity investments, consisting of convertible preferred stock, classified as Level 3 at December 31, 2020 as the fair value was determined using broker or dealer quotes with limited levels of activity and price transparency. 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 BANs as well as certain debt securities where management utilized Level 3 inputs, such as broker or dealer quotes with limited levels of activity and price transparency. 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 Receivable and Loans Held-for-Sale 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, 2020 and December 31, 2019 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Level 1 Level 2 Level 3 December 31, 2020 Financial assets: Cash and due from banks $ 1,272,134 $ 1,272,134 $ — $ — Debt securities held-to-maturity 937,253 — 952,365 16,101 Restricted equity investments 51,705 — — 51,705 Loans receivable, net and loans held-for-sale 7,750,381 — — 7,806,743 Financial liabilities: Deposits other than time deposits 8,054,833 — 8,054,833 — Time deposits 1,372,783 — 1,383,173 — FHLB advances and other borrowings 235,471 — 251,798 — Securities sold under agreements to repurchase with retail customers 128,454 128,454 — — 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 — FHLB advances and other borrowings 616,061 — 626,225 — Securities sold under agreements to repurchase with retail customers 71,739 71,139 — — 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 Instruments12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives, Hedging Activities and Other Financial InstrumentsDerivatives, 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 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 period ended December 31, 2020, the Company recognized a gain of $428,000, and for the period ended December 31, 2019 the Company recognized a loss of $478,000, in other income resulting from a fair value adjustment. The notional amount of derivatives not designated as hedging instruments was $725.9 million and $337.6 million at December 31, 2020 and 2019, 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 2020 2019 Other assets $ 45,289 $ 10,141 Other liabilities 45,429 10,708 Credit Risk-Related Contingent Features

Leases

Leases12 Months Ended
Dec. 31, 2020
Leases [Abstract]
LeasesLeases 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. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The Company has one existing finance lease, which was acquired in the Sun acquisition and has a lease term through 2029. 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, 2020 December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 22,555 $ 18,682 Finance lease ROU asset Premises and equipment, net 1,694 1,534 Total lease ROU asset $ 24,249 $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 22,990 $ 18,893 Finance lease liability Other borrowings 2,100 1,953 Total lease liability $ 25,090 $ 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, 2020 December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 7.77 years 9.69 years Finance lease 8.59 years 9.60 years Weighted-Average Discount Rate Operating leases 3.01 % 3.45 % Finance lease 5.63 % 5.63 % The following table represents lease expenses and other lease information (in thousands): For Year Ended December 31, 2020 For Year Ended December 31, 2019 Lease Expense Operating lease expense $ 6,438 $ 3,904 Finance lease expense: Amortization of ROU assets 174 274 Interest on lease liabilities (1) 110 174 Total $ 6,722 $ 4,352 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,298 $ 3,625 Operating cash flows from finance leases 110 174 Financing cash flows from finance leases 187 263 (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, 2020 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended December 31, 2021 $ 307 $ 5,725 2022 307 4,713 2023 307 3,285 2024 307 2,723 2025 307 2,281 Thereafter 1,105 7,592 Total 2,640 26,319 Less: Imputed interest (540) (3,329) Total lease liabilities $ 2,100 $ 22,990
LeasesLeases 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. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The Company has one existing finance lease, which was acquired in the Sun acquisition and has a lease term through 2029. 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, 2020 December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 22,555 $ 18,682 Finance lease ROU asset Premises and equipment, net 1,694 1,534 Total lease ROU asset $ 24,249 $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 22,990 $ 18,893 Finance lease liability Other borrowings 2,100 1,953 Total lease liability $ 25,090 $ 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, 2020 December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 7.77 years 9.69 years Finance lease 8.59 years 9.60 years Weighted-Average Discount Rate Operating leases 3.01 % 3.45 % Finance lease 5.63 % 5.63 % The following table represents lease expenses and other lease information (in thousands): For Year Ended December 31, 2020 For Year Ended December 31, 2019 Lease Expense Operating lease expense $ 6,438 $ 3,904 Finance lease expense: Amortization of ROU assets 174 274 Interest on lease liabilities (1) 110 174 Total $ 6,722 $ 4,352 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,298 $ 3,625 Operating cash flows from finance leases 110 174 Financing cash flows from finance leases 187 263 (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, 2020 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended December 31, 2021 $ 307 $ 5,725 2022 307 4,713 2023 307 3,285 2024 307 2,723 2025 307 2,281 Thereafter 1,105 7,592 Total 2,640 26,319 Less: Imputed interest (540) (3,329) Total lease liabilities $ 2,100 $ 22,990

Parent-Only Financial Informati

Parent-Only Financial Information12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Parent-Only Financial InformationParent-Only Financial Information The following condensed statements of financial condition at December 31, 2020 and 2019 and condensed statements of operations and cash flows for the years ended December 31, 2020, 2019 and 2018 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, 2020 2019 Assets: Cash and due from banks $ 7,187 $ 5,442 Advances to Bank 101,304 27,878 Investment securities 93,207 1,000 ESOP loan receivable 8,071 9,271 Investment in subsidiaries 1,502,867 1,206,479 Other assets 10,180 327 Total assets $ 1,722,816 $ 1,250,397 Liabilities and Stockholders’ Equity: Borrowings $ 233,371 $ 94,848 Other liabilities 5,315 2,430 Stockholders’ equity 1,484,130 1,153,119 Total liabilities and stockholders’ equity $ 1,722,816 $ 1,250,397 Condensed Statements of Operations (in thousands) For the Year Ended December 31, 2020 2019 2018 Dividend income – subsidiary Bank $ 54,000 $ 79,000 $ 32,000 Interest and dividend income – investment securities 949 63 63 Interest income – advances to subsidiary Bank 403 426 525 Interest income – ESOP loan receivable 301 321 321 Net gain on equity investments 20,460 — — Other income — — 15 Total income 76,113 79,810 32,924 Interest expense – borrowings 10,592 5,402 4,997 Operating expenses 3,382 2,686 2,397 Income before income taxes and undistributed earnings of subsidiary Bank 62,139 71,722 25,530 (Provision) benefit for income taxes (2,901) 924 846 Income before undistributed earnings of subsidiary Bank 59,238 72,646 26,376 Undistributed earnings of subsidiary Bank 4,071 15,928 45,556 Net income $ 63,309 $ 88,574 $ 71,932 Condensed Statements of Cash Flows (in thousands) For the Year Ended December 31, 2020 2019 2018 Cash flows from operating activities: Net income $ 63,309 $ 88,574 $ 71,932 (Increase) decrease in advances to subsidiary Bank (73,426) (13,852) 15,262 Undistributed earnings of subsidiary Bank (4,071) (15,928) (45,556) Net gain on sales of investment securities (20,460) — — Amortization of deferred costs on borrowings 576 261 262 Net amortization of purchase accounting adjustments 638 453 395 Change in other assets and other liabilities 648 (184) 4,076 Net cash (used in) provided by operating activities (32,786) 59,324 46,371 Cash flows from investing activities: Proceeds from sale of investment securities 15,339 — — Purchase of investment securities (95,228) — — Increase in ESOP loan receivable — — (8,400) Repayments on ESOP loan receivable 1,200 1,160 1,020 Net cash (used in) provided by investing activities (78,689) 1,160 (7,380) Cash flows from financing activities: Net proceeds from issuance of subordinated notes 122,180 — — Repayment of borrowings (7,999) — — Dividends paid (42,917) (34,241) (29,564) Purchase of treasury stock (14,814) (26,066) (10,837) Net proceeds from the issuance of preferred stock 55,529 — — Exercise of stock options 1,241 1,335 5,324 Net cash provided by (used in) financing activities 113,220 (58,972) (35,077) Net increase in cash and due from banks 1,745 1,512 3,914 Cash and due from banks at beginning of year 5,442 3,930 16 Cash and due from banks at end of year $ 7,187 $ 5,442 $ 3,930 Supplemental disclosure of cash flow information: Non-cash activities: Unsettled trades of equity securities $ 8,142 $ — $ —

Selected Consolidated Quarterly

Selected Consolidated Quarterly Financial Data12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Selected Consolidated Quarterly Financial DataSELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (dollars in thousands, except per share data) (Unaudited) For the Quarter Ended December 31 September 30 June 30 March 31 2020 Interest income $ 92,562 $ 92,962 $ 95,877 $ 98,207 Interest expense 14,711 16,174 17,210 18,562 Net interest income 77,851 76,788 78,667 79,645 Credit loss expense 4,072 35,714 9,649 9,969 Net interest income after credit loss expense 73,779 41,074 69,018 69,676 Other income (excluding net gain (loss) on equity investments and gain on sale of PPP loans) 11,032 11,755 11,282 13,542 Net gain (loss) on equity investments 24,487 (3,576) 148 155 Gain on sale of PPP loans 5,101 — — — Operating expenses (excluding FHLB advance prepayment fees, branch consolidation and merger related expenses) 53,053 52,801 51,075 51,675 FHLB advance prepayment fees 13,333 — 924 — Branch consolidation expense 3,336 830 863 2,594 Merger related expenses 1,194 3,156 3,070 8,527 Income (loss) before provision (benefit) for income taxes 43,483 (7,534) 24,516 20,577 Provision (benefit) for income taxes 10,419 (2,608) 5,878 4,044 Net income (loss) $ 33,064 $ (4,926) $ 18,638 $ 16,533 Net income (loss) available to common stockholders $ 32,060 $ (6,019) $ 18,638 $ 16,533 Basic earnings (loss) per share $ 0.53 $ (0.10) $ 0.31 $ 0.28 Diluted earnings (loss) per share $ 0.54 $ (0.10) $ 0.31 $ 0.27 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 Credit loss expense 355 305 356 620 Net interest income after credit loss expense 62,999 63,087 64,481 63,768 Other income 11,231 11,543 9,879 9,512 Operating expenses (excluding merger related expenses 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

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]
Principles of ConsolidationPrinciples 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., Casaba Real Estate Holdings Corporation, CBNJ Investments Corp., Country Property Holdings, Inc., and TRCB Investment Corp. Certain other subsidiaries were dissolved in 2020 and are included in the consolidated financial statements for previous periods. 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.
Basis of Financial Statement PresentationBasis of Financial Statement Presentation The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). 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 credit losses. 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, including in the economic environment, will be reflected in the financial statements in future periods.
Cash and Cash EquivalentsCash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash items in the process of collection and 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 IMPAIRMENT ON AFS SECURITIESSecurities Securities include debt securities held-to-maturity (“HTM”), and debt and equity securities available-for-sale (“AFS”). Debt securities include U.S. government and agency obligations, state and municipal obligations, corporate debt securities, collateralized loan obligations, and mortgage-backed securities which are issued and guaranteed by either the Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”), Government National Mortgage Association (“GNMA”), or Small Business Administration (“SBA”) and collateralized mortgage obligations (“CMOs”). 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 HTM debt securities. Such securities are stated at amortized cost. Securities in the AFS 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. During 2013, the Company transferred $536.0 million of previously designated AFS debt securities to HTM 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. Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost less impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Credit Losses for Available-for-Sale Debt Securities As of January 1, 2020, the Company adopted ASC 326-30, Available-for-Sale Debt Securities. The adoption retained the fundamental nature of other-than-temporary impairment (“OTTI”) – that entities recognize credit losses only once securities become impaired. An AFS debt security is considered impaired when amounts are deemed uncollectible or when the company intends, or more likely than not will be required to sell, the AFS debt security before recovery of the amortized cost basis. If a determination is made that an AFS debt security is 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 a credit loss expense through an allowance for credit losses. The credit loss expense will be limited to the difference between the security’s amortized cost basis and fair value and any future changes may be reversed, limited to the amount previously expensed, in the period they occur. 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 AFS debt securities for impairment. Securities that are in an unrealized loss position are reviewed to determine if a credit loss exists based on certain quantitative and qualitative factors. The primary factors considered in evaluating whether an impairment exists include: (a) the extent to which the fair value is less than the amortized cost basis, (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 ReceivableLoans 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 associated allowance for credit 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, 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 and has returned to accrual status. A loan is returned to accrual status when all amounts due have been received, payments remain current for a period of six months and the remaining principal and interest are deemed collectible. Loans are charged-off in the period the loans, or portion thereof, are deemed uncollectible. The Company will record a loan 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. Prior to the adoption of ASU 2016-13, the Company defined an impaired loan as non-accrual commercial real estate, multi-family, land, construction and commercial and industrial loans in excess of $250,000. Impaired loans also include all loans modified as troubled debt restructurings. 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. 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
Loans Held-for-saleLoans Held for Sale 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 generally determined based on bid quotations from securities dealers.
Allowance for Credit Losses (“ACL”)Allowance for Credit Losses (“ACL”) Under the Current Expected Credit Loss (“CECL”) model, the allowance for credit losses on financial assets is a valuation allowance estimated at each balance sheet date in accordance with GAAP that is deducted from the financial assets’ amortized cost basis to present the net amount expected to be collected on the financial assets. The CECL model also applies to certain off-balance sheet credit exposures. The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to write-off accrued interest receivable by reversing interest income in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the amortized cost basis and therefore excludes it from the measurement of the ACL. For loans under forbearance as a result of Coronavirus Disease 2019 (“COVID-19”), the Company made a policy election to include the accrued interest receivable related to such loans in the amortized cost basis and therefore includes it in the measurement of the ACL. Accrued interest receivable at December 31, 2020 was $35.3 million, of which $8.0 million related to forbearance loans. Expected credit losses are reflected in the ACL through a charge to credit loss expense. The Company’s estimate of the ACL reflects credit losses currently expected over the remaining contractual life of the assets. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible. When available information confirms that specific financial assets, or portions thereof, are uncollectible, these amounts are charged-off against the ACL. Subsequent recoveries, if any, are credited to the ACL when received. The Company measures the ACL of financial assets on a collective portfolio segment basis when the financial assets share similar risk characteristics. The Company has identified the following portfolio segments of financial assets with similar risk characteristics for measuring expected credit losses: commercial and industrial, commercial real estate - owner occupied, commercial real estate - investor (including commercial real estate - construction and land), residential real estate, consumer (including student loans) and HTM debt securities. The Company further segments the commercial loan portfolios by risk rating, and the residential and consumer loan portfolios by delinquency. The HTM portfolio is segmented by rating category. The Company’s methodology to measure the ACL incorporates both quantitative and qualitative information to assess lifetime expected credit losses at the portfolio segment level. The quantitative component includes the calculation of loss rates using an open pool method. Under this method, the Company calculates a loss rate based on historical loan level loss experience for portfolio segments with similar risk characteristics. The historical loss rate is adjusted for select macroeconomic variables that consider both historical trends as well as forecasted trends for a single economic scenario. The adjusted loss rate is calculated for an eight quarter forecast period then reverts to the historical loss rate on a straight-line basis over four quarters. The Company differentiates its loss-rate method for HTM debt securities by looking to publicly available historical default and recovery statistics based on the attributes of issuer type, rating category and time to maturity. The Company measures expected credit losses of these financial assets by applying loss rates to the amortized cost basis of each asset taking into consideration amortization, prepayment and default assumptions. The Company considers qualitative adjustments to expected credit loss estimates for information not already captured in the loss estimation process. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Adjustments will not be made for information that has already been considered and included in the quantitative allowance. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data, changes in loan composition, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. Collateral Dependent Financial Assets For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less an appraisal discount and the estimated cost to sell. Due to conditions caused by COVID-19, appraisals ordered in the current environment may not be indicative of the underlying loan collateral value. As such, the Company may require multiple valuation approaches (sales comparison approach, income approach, cost approach), as applicable. The Company will assess the individual facts and circumstances of COVID-19-related loan downgrades and, if a new appraisal is not necessary, an additional discount may be applied to an existing appraisal. Troubled Debt Restructured (“TDR”) Loans A loan that has been modified or renewed is considered a TDR when two conditions are met: (1) the borrower is experiencing financial difficulty and (2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. So long as they share similar risk characteristics, TDRs may be collectively evaluated and included in the Company’s existing portfolio segments to measure the ACL, unless the TDR is collateral dependent. Loans modified in accordance with the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act are not considered TDRs. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial assets include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures through a charge to credit loss expense for off-balance sheet credit exposures. The ACL on off-balance sheet credit exposures is estimated by portfolio segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration management’s assumption of the likelihood that funding will occur, and is included in other liabilities on the Company’s consolidated balance sheets. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain acquired loans are grouped together according to similar risk characteristics and are aggregated when applying various valuation techniques. These cash flow evaluations are subjective as they require material estimates, all of which may be susceptible to significant change. Prior to January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Beginning on January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased with credit deterioration (“PCD”) loans. The Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that were current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses was made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. All loans considered to be PCI prior to January 1, 2020 were converted to PCD on that date. For acquired loans not deemed PCD at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Loan Losses (Prior to January 1, 2020) The allowance for loan losses (currently referred to as ACL on loans) represented a valuation account that reflected probable incurred losses in the loan portfolio. The adequacy of the allowance for loan losses was 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. The allowance for loan losses was maintained at an amount management considered sufficient to provide for probable losses. Acquired loans that have not been renewed since acquisition, or that had a PCI mark, were excluded from the allowance for loan loss calculation. The Bank calculated a general valuation allowance for these excluded acquired loans without a PCI mark and compared that to the remaining general credit and interest rate marks. To the extent the remaining general credit and interest rate marks exceeded the calculated general valuation allowance, no additional reserve was required. If the calculated general valuation allowance exceeded the remaining general credit and interest rate marks, the Bank recorded an adjustment to the extent necessary. The Bank’s allowance for loan losses included specific allowances and a general allowance, each updated on a quarterly basis. A specific allowance was determined for all impaired loans (excluding PCI loans). The Bank defined an impaired loan as all non-accrual commercial real estate, multi-family, land, construction and commercial loans (currently segmented as commercial real estate and commercial and industrial loans) in excess of $250,000 for which it was probable, based on current information, that the Company would not collect all amounts due under the contractual terms of the loan agreement. Impaired loans also included all loans modified as TDRs. For collateral dependent loans, the specific allowance represented 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 was 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. A general allowance was determined for all loans that were 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 segmented the loan portfolio into portfolio segments. The portfolio segments were further segmented by delinquency status or risk rating. An estimated loss factor was 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 utilized historical loss experience adjusted for certain qualitative factors and the loss emergence period. The Bank’s historical loss experience was 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 captured 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 was 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 considered in its estimate of the allowance for loan losses included: local and regional trends in economic growth, unemployment and real estate values. The Bank considered the applicability of each of these qualitative factors in estimating the general allowance for each portfolio segment. Each quarter, the Bank considered 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 calculated and analyzed the loss emergence period on an annual basis or more frequently if conditions warranted. The Bank’s methodology was to use loss events in the past 12 quarters to determine the loss emergence period for each loan segment. The loss emergence period was specific to each portfolio segment and represented 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 recorded an initial charge-off or downgrades the risk-rating of the loan to substandard.
Reserve for Repurchased Loans and Loss Sharing ObligationsReserve 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, an estimate of the Bank’s obligation under a loss sharing arrangement for loans sold to the FHLB as well as the potential repair requests for guaranteed loans sold to the 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 and loss sharing obligations over the period of repurchase risk. The reserve for repurchased loans and loss sharing obligations, as well as SBA repair requests, is included in other liabilities on the Company’s consolidated statement of financial condition.
Other Real Estate Owned (“OREO”)Other Real Estate Owned (“OREO”) Other real estate owned 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 credit losses for loans. 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 EquipmentPremises 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 estimated fair 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.
LeasesLeases The Company recognizes operating lease agreements on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The ROU asset and lease liability are calculated as the present value of the minimum lease payments over the lease term, discounted for the rate implicit in the lease, provided the rate is readily determinable. Refer to Note 17 Leases for a further discussion on leases.
Income TaxesIncome 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.
Bank Owned Life Insurance (“BOLI”)Bank Owned Life Insurance (“BOLI”) Bank owned life insurance 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 AssetsIntangible Assets Intangible assets resulting from acquisitions, under the acquisition method of accounting, consists of goodwill and core deposit intangibles. 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, and if necessary, a quantitative assessment, in determining whether goodwill may be impaired. The factors considered in the qualitative assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, among others. Under a quantitative assessment, the Company will estimate the fair value of the Company by utilizing a weighted discounted cash flow method, guideline public company method and transaction method. The Company completes its annual goodwill impairment test as of August 31 and evaluates triggering events during interim periods, as applicable.
Segment ReportingSegment 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 Company’s consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes.
Earnings Per ShareEarnings 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 and potential common stock, utilizing the treasury stock method. All share amounts exclude unallocated shares of stock held by the ESOP and by the Incentive Plans. Refer to Note 12 Incentive Plan, for a discussion of the incentive plans.
Impact of New Accounting PronouncementsImpact of New Accounting Pronouncements Accounting Pronouncements Adopted in 2020 In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments (Topic 326).” This ASU significantly changed how entities measure credit losses for financial assets and certain other instruments that are measured at amortized cost. The standard replaced the “incurred loss” approach with an “expected loss” model, which necessitates a forecast of lifetime losses. The new model, referred to as the 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 AFS debt securities. The ASU simplifies the accounting model for purchased credit-impaired debt securities and loans. The standard’s provisions are to be applied 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 adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after January 1, 2020 are presented in accordance with ASU 2016-13, or Accounting Standards Codification (“ASC”) 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $4,000, net of tax, as of January 1, 2020 for the cumulative effect of adopting ASC 326. The transition adjustment included a decrease in the allowance for credit losses on loans of $475,000, an increase in the allowance for credit losses on held to maturity debt securities of $1.3 million, and a decrease in the allowance for credit losses on off-balance sheet credit exposures of $788,000. As allowed by ASC 326, the Company elected not to maintain pools of loans accounted for under ASC 310-30. At December 31, 2019, purchase credit impaired (“PCI”) loans totaled $13.3 million. In accordance with the standard, management did not reassess whether modifications individually acquired financial assets accounted for in pools were troubled debt restructured loans as of the date of adoption. Upon adoption, the Company’s PCI loans were converted to PCD loans as defined by ASC 326. The transition adjustment for the PCI loans to PCD loans resulted in a reclassification of $3.2 million from the specific credit fair value adjustment to the allowance for credit losses on loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. At December 31, 2020, the Company utilized the December 15, 2020 forecast, from Oxford Economics, the most recent forecast available as of quarter end, to provide the macroeconomic forecasts for select variables. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. 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. The adoption of this update did not have an 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 did not have an impact on the Company’s consolidated financial statements. Refer to Note 15 Fair Value Measurements, for additional information.

Regulatory Matters (Tables)

Regulatory Matters (Tables)12 Months Ended
Dec. 31, 2020
Banking and Thrift, Interest [Abstract]
Summary of Regulatory Capital Amounts and RatiosThe following is a summary of the Bank’s and the Company’s regulatory capital amounts and ratios as of December 31, 2020 and 2019 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, 2020 Actual For capital adequacy To be well-capitalized Bank: Amount Ratio Amount Ratio Amount Ratio Tier 1 capital (to average assets) $ 942,122 8.48 % $ 444,648 4.00 % $ 555,810 5.00 % Common equity Tier 1 (to risk-weighted assets) 942,122 12.11 544,625 7.00 (1) 505,724 6.50 Tier 1 capital (to risk-weighted assets) 942,122 12.11 661,331 8.50 (1) 622,429 8.00 Total capital (to risk-weighted assets) 1,004,480 12.91 816,938 10.50 (1) 778,036 10.00 Company: Tier 1 capital (to average assets) $ 998,273 9.44 % $ 423,028 4.00 % N/A N/A Common equity Tier 1 (to risk-weighted assets) 871,385 11.05 552,075 7.00 (1) N/A N/A Tier 1 capital (to risk-weighted assets) 998,273 12.66 670,377 8.50 (1) N/A N/A Total capital (to risk-weighted assets) 1,230,370 15.60 828,113 10.50 (1) N/A N/A 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 Company: 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 (1) Includes the Capital Conservation Buffer of 2.50%.

Business Combinations (Tables)

Business Combinations (Tables)12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]
Schedule of Merger Related ExpensesThe following table summarizes the merger related expenses for the years ended December 31, 2020, 2019 and 2018 was as follows: For the Year Ended December 31, 2020 2019 2018 (in thousands) Data processing fees $ 3,758 $ 2,514 $ 6,017 Professional fees 3,638 4,239 4,414 Employee severance payments 7,727 2,942 15,660 Other/miscellaneous fees 824 808 820 Merger related expenses $ 15,947 $ 10,503 $ 26,911
Schedule of Estimated Fair Value of the Assets Acquired and the Liabilities Assumed as Date of AcquisitionThe following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Two River, net of total consideration paid (in thousands): At January 1, 2020 Estimated Total purchase price: $ 197,050 Assets acquired: Cash and cash equivalents $ 51,102 Securities 64,381 Loans 940,072 Accrued interest receivable 2,382 Bank owned life insurance 22,440 Deferred tax assets, net 3,158 Other assets 15,956 Core deposit intangible 12,130 Total assets acquired 1,111,621 Liabilities assumed: Deposits (941,750) Other liabilities (59,026) Total liabilities assumed (1,000,776) Net assets acquired $ 110,845 Goodwill recorded in the merger $ 86,205 The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Country Bank, net of total consideration paid (in thousands): At January 1, 2020 Estimated Total purchase price: $ 112,836 Assets acquired: Cash and cash equivalents $ 20,799 Securities 144,499 Loans 618,408 Accrued interest receivable 1,779 Deferred tax assets, net (3,117) Other assets 9,195 Core deposit intangible 2,117 Total assets acquired 793,680 Liabilities assumed: Deposits (652,653) Other liabilities (67,240) Total liabilities assumed (719,893) Net assets acquired $ 73,787 Goodwill recorded in the merger $ 39,049 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 Fair Value Total Purchase Price: $ 76,834 Assets acquired: Cash and cash equivalents $ 59,748 Securities 103,775 Loans 307,300 Accrued interest receivable 1,390 Bank owned life insurance 10,460 Deferred tax assets, net 4,101 Other assets 4,980 Core deposit intangible 2,662 Total assets acquired 494,416 Liabilities assumed: Deposits (449,018) Other liabilities (5,210) Total liabilities assumed (454,228) Net assets acquired $ 40,188 Goodwill recorded in the merger $ 36,646 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 Estimated 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 assets, net 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 Acquisition, Pro Forma InformationTwo River Actual from January 1, 2020 to December 31, 2020 Country Bank Actual from January 1, 2020 to December 31, 2020 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 (in thousands, except per share amounts) (unaudited) Net interest income $ 41,978 $ 27,411 $ 17,090 $ 63,889 $ 329,327 $ 337,118 Credit loss expense 6,117 4,481 385 1,215 2,686 4,545 Non-interest income 2,688 45 1,456 7,961 47,484 43,677 Non-interest expense 27,431 17,993 12,482 35,184 240,913 258,072 Provision for income taxes 2,686 1,204 1,193 7,090 23,870 21,098 Net income $ 8,432 $ 3,778 $ 4,486 $ 28,361 $ 109,342 $ 97,080 Fully diluted earnings per share $ 1.79 $ 1.56
Schedule of Finite-Lived Intangible Assets, Future Amortization ExpenseThe estimated future amortization expense for the core deposit intangible over the next five years and thereafter is as follows (in thousands): For the Year Ended December 31, Amortization Expense 2021 $ 5,452 2022 4,718 2023 3,984 2024 3,250 2025 2,516 Thereafter 3,748 Total $ 23,668

Securities (Tables)

Securities (Tables)12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-saleThe amortized cost, estimated fair value and allowance for credit losses of debt securities available-for-sale and held-to-maturity at December 31, 2020 and 2019 are as follows (in thousands): Amortized Gross Gross Estimated Allowance for Credit Losses At December 31, 2020 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 173,790 $ 3,152 $ (2) $ 176,940 $ — Collateralized loan obligations 6,174 — (4) 6,170 — Total investment securities 179,964 3,152 (6) 183,110 — Mortgage-backed securities - FNMA 190 2 — 192 — Total debt securities available-for-sale $ 180,154 $ 3,154 $ (6) $ 183,302 $ — Debt securities held-to-maturity: Investment securities: State and municipal obligations $ 238,405 $ 11,500 $ (231) $ 249,674 $ (48) Corporate debt securities 72,305 1,615 (2,652) 71,268 (1,550) Total investment securities 310,710 13,115 (2,883) 320,942 (1,598) Mortgage-backed securities: FHLMC 232,942 5,383 (124) 238,201 — FNMA 293,615 7,640 (147) 301,108 — GNMA 67,334 2,014 (12) 69,336 — SBA 5,392 — (60) 5,332 — CMO 32,321 1,226 — 33,547 (117) Total mortgage-backed securities 631,604 16,263 (343) 647,524 (117) Total debt securities held-to-maturity $ 942,314 $ 29,378 $ (3,226) $ 968,466 $ (1,715) Total debt securities $ 1,122,468 $ 32,532 $ (3,232) $ 1,151,768 $ (1,715) There was no allowance for credit losses on debt securities available-for-sale at December 31, 2020. 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
Debt Securities, Held-to-maturity, Allowance for Credit LossThe following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the year ended December 31, 2020 (in thousands): Investment Securities Mortgage-backed Securities Allowance for credit losses Beginning balance $ — $ — Impact of CECL adoption (1,268) — Provision for credit loss expense (330) (117) Total ending allowance balance $ (1,598) $ (117)
Carrying Value of Held-to-Maturity Investment SecuritiesThe carrying value of the debt securities held-to-maturity at December 31, 2020 and 2019 are as follows (in thousands): December 31, 2020 2019 Amortized cost $ 942,314 $ 772,975 Net loss on date of transfer from available-for-sale (13,347) (13,347) Allowance for credit loss (1,715) — Accretion of net unrealized loss on securities reclassified as held-to-maturity 10,001 9,245 Carrying value $ 937,253 $ 768,873 For the year ended December 31, 2020 Net gain on equity investments $ 21,214 Less: Net gains recognized on equity securities sold 5,401 Unrealized gain recognized on equity securities still held $ 15,813
Debt Securities, Trading, and Equity Securities, FV-NI
Amortized Cost and Estimated Fair Value of Investment Securities by Contractual MaturityThe amortized cost and estimated fair value of investment securities at December 31, 2020 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, 2020, corporate debt securities with an amortized cost and estimated fair value of $53.8 million and $52.9 million, respectively, were callable prior to the maturity date. December 31, 2020 Amortized Estimated Less than one year $ 97,822 $ 98,394 Due after one year through five years 195,949 201,798 Due after five years through ten years 93,596 92,120 Due after ten years 103,307 111,740 Total investment securities $ 490,674 $ 504,052
Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-MaturityThe estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at December 31, 2020 and December 31, 2019, segregated by the duration of the unrealized losses, are as follows (in thousands): As of December 31, 2020 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 $ 17,029 $ (2) $ — $ — $ 17,029 $ (2) Collateralized loan obligations 4,766 (4) — — 4,766 (4) Total debt securities available-for-sale 21,795 (6) — — 21,795 (6) Debt securities held-to-maturity: Investment securities: State and municipal obligations 2,823 (23) 7,509 (208) 10,332 (231) Corporate debt securities 10,192 (255) 35,935 (2,397) 46,127 (2,652) Total investment securities 13,015 (278) 43,444 (2,605) 56,459 (2,883) Mortgage-backed securities: FHLMC 24,661 (117) 669 (7) 25,330 (124) FNMA 39,365 (128) 939 (19) 40,304 (147) GNMA 5,856 (11) 207 (1) 6,063 (12) SBA 3,626 (12) 1,706 (48) 5,332 (60) Total mortgage-backed securities 73,508 (268) 3,521 (75) 77,029 (343) Total debt securities held-to-maturity 86,523 (546) 46,965 (2,680) 133,488 (3,226) Total debt securities $ 108,318 $ (552) $ 46,965 $ (2,680) $ 155,283 $ (3,232) 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)
Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt SecuritiesAt December 31, 2020, 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, 2020 Security Description Amortized Estimated Credit Rating Chase Capital $ 10,000 $ 9,479 Baa1/BBB- Wells Fargo Capital 5,000 4,702 A1/BBB- Huntington Capital 5,000 4,546 Baa2/BB+ Keycorp Capital 5,000 4,647 Baa2/BB+ PNC Capital 5,000 4,743 Baa1/BBB- State Street Capital 3,332 3,147 A3/BBB SunTrust Capital 5,000 4,671 Not Rated/BBB- Total $ 38,332 $ 35,935
Debt Securities, Held-to-maturity, Credit Quality IndicatorThe following table summarized the amortized cost of debt securities held-to-maturity at December 31, 2020 aggregated by credit quality indicator (in thousands): AAA AA A BBB BB Total As of December 31, 2020 Investment securities: State and municipal obligations $ 34,091 $ 130,218 $ 59,272 $ 14,824 $ — $ 238,405 Corporate debt securities — 496 11,978 48,498 11,333 72,305 Total investment securities 34,091 130,714 71,250 63,322 11,333 310,710 Mortgage-backed securities: CMO 11,118 21,203 — — — 32,321 Total mortgage-backed securities 11,118 21,203 — — — 32,321 Total debt securities held-to-maturity $ 45,209 $ 151,917 $ 71,250 $ 63,322 $ 11,333 $ 343,031

Loans Receivable, Net (Tables)

Loans Receivable, Net (Tables)12 Months Ended
Dec. 31, 2020
Receivables [Abstract]
Summary of Loans ReceivableLoans receivable, net, at December 31, 2020 and 2019 consisted of the following (in thousands): December 31, 2020 2019 Commercial: Commercial and industrial (1) $ 470,656 $ 396,434 Commercial real estate - owner occupied 1,145,065 792,653 Commercial real estate - investor 3,491,464 2,296,410 Total commercial 5,107,185 3,485,497 Consumer: Residential real estate 2,309,459 2,321,157 Home equity loans and lines 285,016 318,576 Other consumer 54,446 89,422 Total consumer 2,648,921 2,729,155 Total loans receivable 7,756,106 6,214,652 Deferred origination costs, net of fees 9,486 9,880 Allowance for credit losses (60,735) (16,852) Total loans receivable, net $ 7,704,857 $ 6,207,680 (1) The commercial and industrial loans balance at December 31, 2020 includes Paycheck Protection Program (“PPP”) loans of $95.4 million.
Risk Category of Loans by Loan Portfolio Segment Excluding PCI LoansThe following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands): 2020 2019 2018 2017 2016 2015 and prior Revolving lines of credit Total December 31, 2020 Commercial and industrial Pass $ 137,262 $ 40,737 $ 27,967 $ 18,845 $ 33,568 $ 59,339 $ 134,140 $ 451,858 Special Mention 150 583 826 1,422 907 118 1,429 5,435 Substandard 581 1,284 1,243 809 439 1,706 7,301 13,363 Total commercial and industrial 137,993 42,604 30,036 21,076 34,914 61,163 142,870 470,656 Commercial real estate - owner occupied Pass 96,888 114,506 122,962 124,050 104,264 428,423 18,932 1,010,025 Special Mention — 3,512 8,240 1,023 17,115 17,811 439 48,140 Substandard — 34,670 9,001 3,404 3,677 35,509 639 86,900 Total commercial real estate - owner occupied 96,888 152,688 140,203 128,477 125,056 481,743 20,010 1,145,065 Commercial real estate - investor Pass $ 635,930 $ 628,435 $ 317,104 $ 426,268 $ 281,876 $ 812,062 $ 194,913 $ 3,296,588 Special Mention — 15,979 17,113 15,225 4,234 55,872 149 108,572 Substandard 4,311 9,217 1,931 17,222 11,474 36,326 5,823 86,304 Total commercial real estate - investor 640,241 653,631 336,148 458,715 297,584 904,260 200,885 3,491,464 Consumer: Residential real estate (1) Pass $ 595,982 $ 437,593 $ 226,435 $ 166,773 $ 146,237 $ 729,037 $ — $ 2,302,057 Special Mention — 532 — — 446 2,186 — 3,164 Substandard 570 — 1,489 221 — 1,958 — 4,238 Total residential real estate 596,552 438,125 227,924 166,994 146,683 733,181 — 2,309,459 Consumer (1) Pass 24,954 26,659 83,296 25,469 16,565 156,276 2,145 335,364 Special Mention — — — — 150 382 — 532 Substandard — — — — — 3,566 — 3,566 Total consumer 24,954 26,659 83,296 25,469 16,715 160,224 2,145 339,462 Total loans receivable $ 1,496,628 $ 1,313,707 $ 817,607 $ 800,731 $ 620,952 $ 2,340,571 $ 365,910 $ 7,756,106
Analysis of Allowance for Loan LossesAn analysis of the allowance for credit losses on loans for the years ended December 31, 2020 and 2019 is as follows (in thousands): Commercial Commercial Real Estate - Owner Occupied Commercial Real Estate - Investor Residential Consumer Unallocated Total For the Year Ended December 31, 2020 Allowance for credit losses on loans Balance at beginning of year $ 1,458 $ 2,893 $ 9,883 $ 2,002 $ 591 $ 25 $ 16,852 Impact of CECL adoption 2,416 (1,109) (5,395) 3,833 2,981 (25) 2,701 Initial allowance for credit losses on PCD loans 1,221 26 260 109 1,023 — 2,639 Credit loss expense (benefit) (1) 1,039 15,007 34,935 8,191 (1,770) — 57,402 Charge-offs (1) (890) (1,769) (13,081) (3,200) (1,244) — (20,184) Recoveries 146 6 101 883 189 — 1,325 Balance at end of year $ 5,390 $ 15,054 $ 26,703 $ 11,818 $ 1,770 $ — $ 60,735 For the Year Ended December 31, 2019 Allowance for credit losses on loans Balance at beginning of year $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Credit loss (benefit) expense (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 (1) The year ended December 31, 2020 was impacted by the shift in current and forward-looking economic conditions, credit migration and borrower vulnerability related to COVID-19. The Company recorded $14.6 million of charge-offs related to the sale of higher-risk commercial loans and $3.3 million of charge-offs related to the sale of under-performing residential and consumer loans. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. At December 31, 2020, the Company had collateral dependent loans with an amortized cost balance as follows: commercial and industrial of $1.9 million, commercial real estate - owner occupied of $13.8 million, and commercial real estate - investor of $18.3 million. In addition, the Company had residential and consumer loans collateralized by residential real estate, which are in the process of foreclosure, with an amortized cost balance of $1.4 million and $1.8 million at December 31, 2020 and December 31, 2019, respectively. The amount of foreclosed residential real estate property held by the Company was $106,000 and $51,000 at December 31, 2020 and December 31, 2019, respectively. In accordance with ASC 310, prior to the adoption of ASU 2016-13, the following table presents 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, excluding PCI loans (in thousands): Commercial Commercial Real Estate - Owner Occupied Commercial Real Estate - Investor Residential Real Estate Consumer Unallocated Total At 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
Impaired Financing ReceivablesThe summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2019 was 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 — Total with no related allowance recorded $ 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 Total with an allowance recorded $ 2,378 $ 2,197 $ 476 For the Year Ended December 31, 2019 Average Interest With no related allowance recorded: Commercial and industrial $ 523 $ 5 Commercial real estate – owner occupied 4,171 179 Commercial real estate – investor 9,012 222 Residential real estate 10,275 548 Consumer 3,275 178 Total with no related allowance recorded $ 27,256 $ 1,132 With an allowance recorded: Commercial and industrial $ — $ — Commercial real estate – owner occupied 2,173 138 Commercial real estate – investor — — Residential real estate — — Consumer — — Total with an allowance recorded $ 2,173 $ 138
Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI LoansThe following table presents the recorded investment in non-accrual loans by loan portfolio segment as of December 31, 2020 and 2019 (in thousands). The December 31, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020). December 31, 2020 2019 Commercial and industrial $ 1,908 $ 207 Commercial real estate – owner occupied 13,751 4,811 Commercial real estate – investor 18,287 2,917 Residential real estate 8,671 7,181 Consumer 4,246 2,733 Total non-accrual loans $ 46,863 $ 17,849
Aging of Recorded Investment in Past Due Loans Excluding PCI LoansThe following table presents the aging of the recorded investment in past due loans as of December 31, 2020 and 2019 by loan portfolio segment (in thousands). The December 31, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020). 30-59 60-89 90 Days or Greater Total Loans Not Total December 31, 2020 Commercial and industrial $ 3,050 $ 628 $ 327 $ 4,005 $ 466,651 $ 470,656 Commercial real estate – owner occupied 1,015 — 7,871 8,886 1,136,179 1,145,065 Commercial real estate – investor 8,897 3,233 11,122 23,252 3,468,212 3,491,464 Residential real estate 15,156 3,164 4,238 22,558 2,286,901 2,309,459 Consumer 978 533 3,568 5,079 334,383 339,462 Total loans receivable $ 29,096 $ 7,558 $ 27,126 $ 63,780 $ 7,692,326 $ 7,756,106 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 Total loans receivable $ 11,231 $ 6,119 $ 9,286 $ 26,636 $ 6,174,751 $ 6,201,387
Troubled Debt RestructuringsThe following table presents information about TDRs which occurred during the years ended December 31, 2020 and 2019, and TDRs modified within the previous year and which defaulted during the years ended December 31, 2020 and 2019 (dollars in thousands): Number Pre-modification Post-modification For the Year Ended December 31, 2020 Troubled debt restructurings: Commercial real estate – owner occupied 1 $ 1,112 $ 1,143 Commercial real estate – investor 2 1,035 1,116 Residential real estate 6 1,018 1,065 Consumer 6 1,035 668 Number of Loans Recorded Investment Troubled debt restructurings Which subsequently defaulted: None None 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
Financing Receivable, Purchased With Credit DeteriorationThe carrying amount of the PCD loans is as follows (in thousands): Two River Country Bank January 1, 2020 January 1, 2020 Purchase price of loans at acquisition $ 26,354 $ 24,667 Allowance for credit losses at acquisition 1,343 1,296 Non-credit discount at acquisition 3,589 5,334 Par value of acquired loans at acquisition $ 31,286 $ 31,297
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During PeriodThe following table summarizes the changes in accretable yield for PCI loans during the year ended December 31, 2019 (in thousands): For the Year Ended December 31, 2019 Beginning balance $ 3,630 Acquisition 691 Accretion (2,613) Reclassification from non-accretable difference 1,317 Ending balance $ 3,025

Interest and Dividends Receiv_2

Interest and Dividends Receivable (Tables)12 Months Ended
Dec. 31, 2020
Receivables [Abstract]
Summary of Interest and Dividends ReceivableInterest and dividends receivable at December 31, 2020 and 2019 are summarized as follows (in thousands): December 31, 2020 2019 Loans receivable $ 30,893 $ 17,664 Debt securities, equity investments and other 3,169 2,827 Mortgage-backed securities 1,207 1,183 Total interest and dividends receivable $ 35,269 $ 21,674

Premises and Equipment, Net (Ta

Premises and Equipment, Net (Tables)12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Summary of Premises and EquipmentPremises and equipment, net of accumulated depreciation and amortization expense at December 31, 2020 and 2019 are summarized as follows (in thousands): December 31, 2020 2019 Land $ 23,109 $ 24,446 Buildings and improvements 99,350 97,653 Leasehold improvements 8,640 9,274 Furniture and equipment 31,639 25,558 Finance lease 1,845 2,572 Other 10,270 2,764 Total 174,853 162,267 Accumulated depreciation and amortization (67,759) (59,576) Total premises and equipment, net $ 107,094 $ 102,691

Deposits (Tables)

Deposits (Tables)12 Months Ended
Dec. 31, 2020
Banking and Thrift, Other Disclosures [Abstract]
Summary of Deposits Including Accrued Interest PayableDeposits, including accrued interest payable of $367,000 at December 31, 2020 and $238,000 at December 31, 2019, are summarized as follows (in thousands): December 31, 2020 2019 Amount Weighted Amount Weighted Non-interest-bearing accounts $ 2,133,195 — % $ 1,377,396 — % Interest-bearing checking accounts 3,646,866 0.49 2,539,428 0.68 Money market deposit accounts 783,521 0.19 578,147 0.68 Savings accounts 1,491,251 0.05 898,174 0.13 Time deposits 1,372,783 1.51 935,632 1.82 Total deposits $ 9,427,616 0.43 % $ 6,328,777 0.62 %
Summary of Time Deposits by MaturityTime deposits at December 31, 2020 mature as follows (in thousands): For the Year Ended December 31, Time Deposit Maturities 2021 $ 973,426 2022 265,668 2023 63,132 2024 46,321 2025 15,138 Thereafter 9,098 Total $ 1,372,783
Summary of Interest Expense on DepositsInterest expense on deposits for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 Interest-bearing checking accounts $ 19,395 $ 16,820 $ 9,219 Money market deposit accounts 2,902 4,919 2,818 Savings accounts 2,505 1,195 990 Time deposits 23,488 15,498 9,551 Total interest expense on deposits $ 48,290 $ 38,432 $ 22,578

Borrowed Funds (Tables)

Borrowed Funds (Tables)12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]
Summary of Borrowed FundsBorrowed funds are summarized as follows (in thousands): December 31, 2020 2019 Amount Weighted Amount Weighted FHLB advances $ — — % $ 519,260 1.84 % Securities sold under agreements to repurchase with retail customers 128,454 0.33 71,739 0.42 Other borrowings 235,471 4.58 96,801 4.64 Total borrowed funds $ 363,925 3.08 % $ 687,800 2.09 %
Summary of Federal Home Loan Bank Advances and Securities Sold Under Agreements to RepurchaseInformation concerning FHLB advances and securities sold under agreements to repurchase with retail customers (“reverse repurchase agreements”) is summarized as follows (in thousands): FHLB Reverse Repurchase 2020 2019 2020 2019 Average balance $ 413,290 $ 387,925 $ 125,500 $ 64,525 Maximum amount outstanding at any month end 825,824 519,260 153,810 71,739 Average interest rate for the year 1.70 % 2.18 % 0.45 % 0.43 % Amortized cost of collateral: Mortgage-backed securities $ — $ — $ 147,445 $ 80,436 Estimated fair value of collateral: Mortgage-backed securities — — 152,679 81,365
Contractual Maturities of FHLB Advances and Reverse Repurchase AgreementsReverse repurchase agreements have contractual maturities at December 31, 2020 as follows (in thousands): Reverse For the Year Ended December 31, 2021 $ 128,454 Total $ 128,454
Schedule of Other BorrowingsThe other borrowings at December 31, 2020 include the following (in thousands): Type of Debt Stated Value Carrying Value Interest Rate Maturity Subordinated debt $ 35,000 $ 34,804 5.125 % (1) September 30, 2026 Subordinated debt 125,000 122,446 5.250 % (2) May 15, 2030 Subordinated debt 7,500 7,539 7.210 % (3) October 1, 2025 Trust preferred 5,000 5,000 3 month LIBOR plus 165 basis points August 1, 2036 Trust preferred 30,000 22,944 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 7,737 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 7,601 3 month LIBOR plus 139 basis points October 1, 2037 Trust preferred 10,000 7,800 3 month LIBOR plus 225 basis points December 15, 2034 Finance lease 2,100 2,100 5.625 % June 30, 2029 Total $ 252,100 $ 235,471 (1) Adjusts to a floating rate of 392 basis points over 3 month London Inter-bank Offered Rate (“LIBOR”) on September 30, 2021. (2) Adjusts to a floating rate of 509.5 basis points over 3 month Secured Overnight Financing Rate on May 15, 2025.
Interest Expense on BorrowingsInterest expense on borrowings for the years ended December 31, 2020, 2019, and 2018 was as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 FHLB advances $ 7,018 $ 8,441 $ 7,885 Reverse repurchase agreements 562 276 168 Other borrowings 10,787 5,674 5,521 Total interest expense on borrowings $ 18,367 $ 14,391 $ 13,574

Income Taxes (Tables)

Income Taxes (Tables)12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]
Components of Income Tax Expense BenefitThe provision for income taxes for the years ended December 31, 2020, 2019 and 2018 consists of the following (in thousands): For the Year Ended December 31, 2020 2019 2018 Current Federal $ 15,731 $ 1,991 $ 18,030 State 6,617 740 108 Total current 22,348 2,731 18,138 Deferred Federal (2,746) 18,846 (4,568) State (1,869) (2,793) — Total deferred (4,615) 16,053 (4,568) Total provision for income taxes $ 17,733 $ 18,784 $ 13,570
Schedule of Income Tax ReconciliationA 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, 2020, 2019 and 2018 was as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 Income before provision for income taxes $ 81,042 $ 107,358 $ 85,502 Applicable statutory Federal income tax rate 21.0 % 21.0 % 21.0 % Computed “expected” Federal income tax expense $ 17,019 $ 22,545 $ 17,955 Increase (decrease) in Federal income tax expense resulting from State income taxes, net of Federal benefit 3,751 583 85 Earnings on BOLI (1,349) (1,138) (1,072) Tax exempt interest (1,161) (665) (615) Merger related expenses 138 297 322 Stock compensation (136) (386) (758) Revaluation of state deferred tax asset — (2,205) — Impact of Tax Cuts and Jobs Act (“Tax Reform”) — — (1,854) Reclassification of certain tax effect from accumulated other comprehensive income (204) (221) (586) Other items, net (325) (26) 93 Total provision for income taxes $ 17,733 $ 18,784 $ 13,570
Schedule of Significant Portions of Deferred Tax Assets and LiabilitiesThe tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 are presented in the following table (in thousands): December 31, 2020 2019 Deferred tax assets: Allowance for credit losses on loans and debt securities HTM $ 16,168 $ 4,107 Other reserves 2,485 3,061 Incentive compensation 2,919 1,397 Deferred compensation 533 591 Stock plans 2,214 1,270 Unrealized loss on properties available-for-sale 2,435 1,438 Unrealized loss on securities 272 826 Net operating loss carryforwards related to acquisition 33,014 39,519 Deferred fees on PPP loans 517 — Other, net 195 178 Federal and state alternative minimum tax 3,705 4,746 Total gross deferred tax assets 64,457 57,133 Deferred tax liabilities: Unrealized gain on equity securities (4,154) — Premises and equipment (5,871) (7,340) Deferred loan and commitment costs, net (2,968) (2,379) Purchase accounting adjustments (602) 8,475 Investments, discount accretion (452) (380) Undistributed REIT income — (4,735) Other, net (783) (707) Total gross deferred tax liabilities (14,830) (7,066) Net deferred tax assets $ 49,627 $ 50,067

Incentive Plan (Tables)

Incentive Plan (Tables)12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Summary of Fair Value of Stock Options GrantedThe 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: 2020 2019 2018 Risk-free interest rate 1.03 % 2.63 % 2.65 % Expected option life 7 years 7 years 7 years Expected volatility 23 % 21 % 21 % Expected dividend yield 3.33 % 2.70 % 2.19 % Weighted average fair value of an option share granted during the year $ 2.93 $ 4.47 $ 5.44 Intrinsic value of options exercised during the year (in thousands) 2,499 2,994 8,513
Summary of Option ActivityA summary of option activity for the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Number Weighted Number Weighted Number Weighted Outstanding at beginning of year 2,424,032 $ 19.80 2,340,842 $ 18.25 2,489,314 $ 16.91 Granted 699,651 20.44 461,407 25.20 135,107 27.39 Assumed in acquisition — — — — 491,248 21.92 Exercised (213,506) 9.50 (227,189) 11.24 (765,624) 17.69 Forfeited (6,357) 21.26 (149,158) 24.71 (9,203) 28.42 Expired (64,953) 22.51 (1,870) 29.59 — — Outstanding at end of year 2,838,867 $ 20.67 2,424,032 $ 19.80 2,340,842 $ 18.25 Options exercisable 1,596,927 1,612,946 1,604,576
Summary of Stock Options OutstandingThe following table summarizes information about stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Exercise Prices Number Weighted Weighted Number Weighted Weighted 9.54 to 14.41 397,734 1.0 years $ 13.41 397,734 1.0 years $ 13.41 14.42 to 19.28 743,519 3.7 16.72 696,051 3.6 16.68 19.29 to 24.15 753,703 8.8 20.56 48,771 4.5 22.07 24.16 to 29.01 943,911 6.5 26.93 454,371 5.4 27.62 2,838,867 5.6 years $ 20.67 1,596,927 3.5 years $ 19.14
Summary of Granted but Unvested Stock Award ActivityA summary of the granted but unvested stock award activity for the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Number Weighted Number Weighted Number Weighted Outstanding at beginning of year: 451,443 $ 25.61 330,598 $ 25.92 169,703 $ 21.79 Granted 256,649 20.38 249,651 24.80 272,668 27.52 Vested (96,564) 24.41 (105,307) 24.49 (58,754) 20.81 Forfeited (35,532) 26.56 (23,499) 26.38 (53,019) 26.60 Outstanding at end of year 575,996 $ 23.42 451,443 $ 25.61 330,598 $ 25.92

Commitments, Contingencies an_2

Commitments, Contingencies and Concentrations of Credit Risk (Tables)12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Summary of Commitments and Contingent LiabilitiesAt December 31, 2020, the following commitments and contingent liabilities existed which are not reflected in the accompanying consolidated financial statements (in thousands): December 31, 2020 Unused consumer and construction loan lines of credit (primarily floating-rate) $ 372,159 Unused commercial loan lines of credit (primarily floating-rate) 668,114 Other commitments to extend credit: Fixed-rate 234,608 Adjustable-rate 2,750 Floating-rate 130,448

Earnings Per Share (Tables)

Earnings Per Share (Tables)12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]
Reconciliation of Shares Outstanding for Basic and Diluted Earnings per ShareThe following reconciles average shares outstanding for basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018 (in thousands): December 31, 2020 2019 2018 Weighted average shares outstanding 60,358 50,701 47,266 Less: Unallocated ESOP shares (426) (493) (435) Unallocated incentive award shares and shares held by deferred compensation plan (13) (42) (58) Average basic shares outstanding 59,919 50,166 46,773 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan 153 580 884 Average diluted shares outstanding 60,072 50,746 47,657

Fair Value Measurements (Tables

Fair Value Measurements (Tables)12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]
Financial Assets and Financial Liabilities Measured at Fair ValueThe following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2020 and 2019, 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 Level 1 Level 2 Level 3 December 31, 2020 Items measured on a recurring basis: Debt securities available-for-sale $ 183,302 $ — $ 183,302 $ — Equity investments 107,079 104,539 — 2,540 Interest rate swaps asset 45,289 — 45,289 — Interest rate swaps liability (45,429) — (45,429) — Items measured on a non-recurring basis: Other real estate owned 106 — — 106 Loans measured for impairment based on the fair value of the underlying collateral 35,366 — — 35,366 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 swaps asset 10,141 — 10,141 — Interest rate swaps 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
Fair Value, Assets Measured on Recurring Basis, Unobservable Input ReconciliationThe following table reconciles, for the year ended December 31, 2020, the beginning and ending balances for debt securities available-for-sale that are recognized at fair value on a recurring basis, in the consolidated statements of financial condition, using significant unobservable inputs (in thousands): For the Year Ended December 31, 2020 Beginning balance $ 25 Total gains (losses) included in earnings — Purchases 2,377 Transfers into Level 3 — Transfers out of Level 3 — Maturities (2,402) Ending balance $ —
Book Value and Estimated Fair Value of Bank's Significant Financial Instruments Not Recorded at Fair ValueThe book value and estimated fair value of the Bank’s significant financial instruments not recorded at fair value as of December 31, 2020 and December 31, 2019 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Level 1 Level 2 Level 3 December 31, 2020 Financial assets: Cash and due from banks $ 1,272,134 $ 1,272,134 $ — $ — Debt securities held-to-maturity 937,253 — 952,365 16,101 Restricted equity investments 51,705 — — 51,705 Loans receivable, net and loans held-for-sale 7,750,381 — — 7,806,743 Financial liabilities: Deposits other than time deposits 8,054,833 — 8,054,833 — Time deposits 1,372,783 — 1,383,173 — FHLB advances and other borrowings 235,471 — 251,798 — Securities sold under agreements to repurchase with retail customers 128,454 128,454 — — 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 — FHLB advances and other borrowings 616,061 — 626,225 — Securities sold under agreements to repurchase with retail customers 71,739 71,139 — —

Derivatives, Hedging Activiti_2

Derivatives, Hedging Activities and Other Financial Instruments (Tables)12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts of Outstanding Derivative PositionsThe 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 2020 2019 Other assets $ 45,289 $ 10,141 Other liabilities 45,429 10,708

Leases (Tables)

Leases (Tables)12 Months Ended
Dec. 31, 2020
Leases [Abstract]
Schedule of Right-of-Use Assets and Lease LiabilitiesThe 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, 2020 December 31, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 22,555 $ 18,682 Finance lease ROU asset Premises and equipment, net 1,694 1,534 Total lease ROU asset $ 24,249 $ 20,216 Lease Liabilities Operating lease liability Other liabilities $ 22,990 $ 18,893 Finance lease liability Other borrowings 2,100 1,953 Total lease liability $ 25,090 $ 20,846
Schedule of Weighted Average Remaining Lease Term and Discount RateDecember 31, 2020 December 31, 2019 Weighted-Average Remaining Lease Term Operating leases 7.77 years 9.69 years Finance lease 8.59 years 9.60 years Weighted-Average Discount Rate Operating leases 3.01 % 3.45 % Finance lease 5.63 % 5.63 %
Schedule of Lease Costs and Other Lease InformationThe following table represents lease expenses and other lease information (in thousands): For Year Ended December 31, 2020 For Year Ended December 31, 2019 Lease Expense Operating lease expense $ 6,438 $ 3,904 Finance lease expense: Amortization of ROU assets 174 274 Interest on lease liabilities (1) 110 174 Total $ 6,722 $ 4,352 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,298 $ 3,625 Operating cash flows from finance leases 110 174 Financing cash flows from finance leases 187 263 (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 LeasesFuture minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of December 31, 2020 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended December 31, 2021 $ 307 $ 5,725 2022 307 4,713 2023 307 3,285 2024 307 2,723 2025 307 2,281 Thereafter 1,105 7,592 Total 2,640 26,319 Less: Imputed interest (540) (3,329) Total lease liabilities $ 2,100 $ 22,990
Future Minimum Payments for Operating LeasesFuture minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of December 31, 2020 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended December 31, 2021 $ 307 $ 5,725 2022 307 4,713 2023 307 3,285 2024 307 2,723 2025 307 2,281 Thereafter 1,105 7,592 Total 2,640 26,319 Less: Imputed interest (540) (3,329) Total lease liabilities $ 2,100 $ 22,990

Parent-Only Financial Informa_2

Parent-Only Financial Information (Tables)12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Condensed Statements of Financial ConditionCondensed Statement of Financial Condition (in thousands) December 31, 2020 2019 Assets: Cash and due from banks $ 7,187 $ 5,442 Advances to Bank 101,304 27,878 Investment securities 93,207 1,000 ESOP loan receivable 8,071 9,271 Investment in subsidiaries 1,502,867 1,206,479 Other assets 10,180 327 Total assets $ 1,722,816 $ 1,250,397 Liabilities and Stockholders’ Equity: Borrowings $ 233,371 $ 94,848 Other liabilities 5,315 2,430 Stockholders’ equity 1,484,130 1,153,119 Total liabilities and stockholders’ equity $ 1,722,816 $ 1,250,397
Condensed Statements of OperationsCondensed Statements of Operations (in thousands) For the Year Ended December 31, 2020 2019 2018 Dividend income – subsidiary Bank $ 54,000 $ 79,000 $ 32,000 Interest and dividend income – investment securities 949 63 63 Interest income – advances to subsidiary Bank 403 426 525 Interest income – ESOP loan receivable 301 321 321 Net gain on equity investments 20,460 — — Other income — — 15 Total income 76,113 79,810 32,924 Interest expense – borrowings 10,592 5,402 4,997 Operating expenses 3,382 2,686 2,397 Income before income taxes and undistributed earnings of subsidiary Bank 62,139 71,722 25,530 (Provision) benefit for income taxes (2,901) 924 846 Income before undistributed earnings of subsidiary Bank 59,238 72,646 26,376 Undistributed earnings of subsidiary Bank 4,071 15,928 45,556 Net income $ 63,309 $ 88,574 $ 71,932
Condensed Statements of Cash FlowsCondensed Statements of Cash Flows (in thousands) For the Year Ended December 31, 2020 2019 2018 Cash flows from operating activities: Net income $ 63,309 $ 88,574 $ 71,932 (Increase) decrease in advances to subsidiary Bank (73,426) (13,852) 15,262 Undistributed earnings of subsidiary Bank (4,071) (15,928) (45,556) Net gain on sales of investment securities (20,460) — — Amortization of deferred costs on borrowings 576 261 262 Net amortization of purchase accounting adjustments 638 453 395 Change in other assets and other liabilities 648 (184) 4,076 Net cash (used in) provided by operating activities (32,786) 59,324 46,371 Cash flows from investing activities: Proceeds from sale of investment securities 15,339 — — Purchase of investment securities (95,228) — — Increase in ESOP loan receivable — — (8,400) Repayments on ESOP loan receivable 1,200 1,160 1,020 Net cash (used in) provided by investing activities (78,689) 1,160 (7,380) Cash flows from financing activities: Net proceeds from issuance of subordinated notes 122,180 — — Repayment of borrowings (7,999) — — Dividends paid (42,917) (34,241) (29,564) Purchase of treasury stock (14,814) (26,066) (10,837) Net proceeds from the issuance of preferred stock 55,529 — — Exercise of stock options 1,241 1,335 5,324 Net cash provided by (used in) financing activities 113,220 (58,972) (35,077) Net increase in cash and due from banks 1,745 1,512 3,914 Cash and due from banks at beginning of year 5,442 3,930 16 Cash and due from banks at end of year $ 7,187 $ 5,442 $ 3,930 Supplemental disclosure of cash flow information: Non-cash activities: Unsettled trades of equity securities $ 8,142 $ — $ —

Selected Consolidated Quarter_2

Selected Consolidated Quarterly Financial Data (Tables)12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information For the Quarter Ended December 31 September 30 June 30 March 31 2020 Interest income $ 92,562 $ 92,962 $ 95,877 $ 98,207 Interest expense 14,711 16,174 17,210 18,562 Net interest income 77,851 76,788 78,667 79,645 Credit loss expense 4,072 35,714 9,649 9,969 Net interest income after credit loss expense 73,779 41,074 69,018 69,676 Other income (excluding net gain (loss) on equity investments and gain on sale of PPP loans) 11,032 11,755 11,282 13,542 Net gain (loss) on equity investments 24,487 (3,576) 148 155 Gain on sale of PPP loans 5,101 — — — Operating expenses (excluding FHLB advance prepayment fees, branch consolidation and merger related expenses) 53,053 52,801 51,075 51,675 FHLB advance prepayment fees 13,333 — 924 — Branch consolidation expense 3,336 830 863 2,594 Merger related expenses 1,194 3,156 3,070 8,527 Income (loss) before provision (benefit) for income taxes 43,483 (7,534) 24,516 20,577 Provision (benefit) for income taxes 10,419 (2,608) 5,878 4,044 Net income (loss) $ 33,064 $ (4,926) $ 18,638 $ 16,533 Net income (loss) available to common stockholders $ 32,060 $ (6,019) $ 18,638 $ 16,533 Basic earnings (loss) per share $ 0.53 $ (0.10) $ 0.31 $ 0.28 Diluted earnings (loss) per share $ 0.54 $ (0.10) $ 0.31 $ 0.27 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 Credit loss expense 355 305 356 620 Net interest income after credit loss expense 62,999 63,087 64,481 63,768 Other income 11,231 11,543 9,879 9,512 Operating expenses (excluding merger related expenses 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

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)3 Months Ended12 Months Ended
Sep. 30, 2013Dec. 31, 2020Dec. 31, 2019Dec. 31, 2013Dec. 31, 2018Dec. 31, 2017
Summary Of Significant Accounting Policies [Line Items]
Maturity period of highly liquid debt instrumentsthree months
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 period90 days
Impaired loans on non-accrual commercial real estate, multi-family, land, construction, commercial and industrial loans $ 250,000 $ 250,000
Interest and dividends receivable35,269,000 21,674,000
Accrued interest, before allowance for credit loss8,000,000
Stockholders’ equity(1,484,130,000)(1,153,119,000) $ (1,039,358,000) $ (601,941,000)
Purchased credit impaired (“PCI”) loans13,300,000
Effect of change in method $ 3,200,000
Cumulative Effect, Period of Adoption, Adjustment
Summary Of Significant Accounting Policies [Line Items]
Stockholders’ equity4,000 $ 0
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
Accounting Standards Update 2016-13
Summary Of Significant Accounting Policies [Line Items]
allowance for credit loss, period increase (decrease) $ 475,000
Debt securities, held-to-maturity, allowance for credit loss, period increase (decrease)1,300,000
Off-Balance sheet, credit loss $ 788,000
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment
Summary Of Significant Accounting Policies [Line Items]
Stockholders’ equity $ 4,000

Regulatory Matters - Additional

Regulatory Matters - Additional Information (Details)Dec. 31, 2020Dec. 31, 2019Jan. 01, 2019
Banking and Thrift, Interest [Abstract]
Minimum ratio of tier 1 capital to total adjusted assets0.040
Minimum ratio of common equity tier 1 to risk-weighted assets7.00%
Minimum ratio of tier 1 leverage ratio, For capital adequacy purposes0.085 0.0400
Minimum ratio of total capital to risk-weighted assets0.105
Capital conversation buffer0.0250 0.0250
Tier 1 capital ratio, To be well capitalized0.050
Common equity tier 1 risk-based ratio, To be well capitalized6.50%
Tier 1 risk-based capital, To be well capitalized under prompt corrective action ratio0.080
Total risk-based capital, To be well capitalized under prompt corrective action ratio0.100

Regulatory Matters - Summary of

Regulatory Matters - Summary of Regulatory Capital Amounts and Ratios (Details) $ in Thousands12 Months Ended
Dec. 31, 2020USD ($)Dec. 31, 2019USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 capital (to average assets), Actual Ratio0.040
Common equity Tier 1 (to risk-weighted assets), Actual Ratio7.00%
Tier 1 capital (to risk-weighted assets), Actual Ratio0.050
Tier 1 capital (to average assets), For capital adequacy purposes Ratio0.085 0.0400
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio0.105
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Ratio0.0500
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Ratio6.50%
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio0.080
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio0.100
Capital conservation buffer (as a percent)2.50%
OceanFirst Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 capital (to average assets), Actual Amount $ 942,122 $ 779,108
Common equity Tier 1 (to risk-weighted asset), Actual Amount942,122 779,108
Tier 1 capital (to risk-weighted assets), Actual Amount942,122 779,108
Total capital (to risk-weighted assets), Actual Amount $ 1,004,480 $ 797,339
Tier 1 capital (to average assets), Actual Ratio0.0848 0.1003
Common equity Tier 1 (to risk-weighted assets), Actual Ratio12.11%12.98%
Tier 1 capital (to risk-weighted assets), Actual Ratio0.1211 0.1298
Total capital (to risk-weighted assets), Actual Ratio0.1291 0.1329
Tier 1 capital (to average assets), For capital adequacy purposes Amount $ 444,648 $ 310,798
Common equity Tier 1 (to risk-weighted asset), For capital adequacy purposes Amount544,625 420,106
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Amount661,331 510,129
Total capital (to risk-weighted assets), For capital adequacy purposes Amount $ 816,938 $ 630,159
Tier 1 capital (to average assets), For capital adequacy purposes Ratio0.0400
Common equity Tier 1 (to risk-weighted assets), For capital adequacy purposes Ratio7.00%7.00%
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Ratio0.0850 0.0850
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio0.1050 0.1050
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Amount $ 555,810 $ 388,498
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Amount505,724 390,099
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Amount622,429 480,121
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Amount $ 778,036 $ 600,152
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action Ratio0.0500
Common equity Tier 1 (to risk-weighted asset), To be well capitalized under prompt corrective action Ratio6.50%6.50%
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio0.0800 0.0800
Total capital (to risk-weighted assets), To be well capitalized under prompt corrective action Ratio0.1000 0.1000
OceanFirst Financial Corp.
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 capital (to average assets), Actual Amount $ 998,273 $ 791,746
Common equity Tier 1 (to risk-weighted asset), Actual Amount871,385 729,095
Tier 1 capital (to risk-weighted assets), Actual Amount998,273 791,746
Total capital (to risk-weighted assets), Actual Amount $ 1,230,370 $ 844,977
Tier 1 capital (to average assets), Actual Ratio0.0944 0.1017
Common equity Tier 1 (to risk-weighted assets), Actual Ratio11.05%12.14%
Tier 1 capital (to risk-weighted assets), Actual Ratio0.1266 0.1319
Total capital (to risk-weighted assets), Actual Ratio0.1560 0.1407
Tier 1 capital (to average assets), For capital adequacy purposes Amount $ 423,028 $ 311,289
Common equity Tier 1 (to risk-weighted asset), For capital adequacy purposes Amount552,075 420,273
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Amount670,377 510,331
Total capital (to risk-weighted assets), For capital adequacy purposes Amount $ 828,113 $ 630,409
Tier 1 capital (to average assets), For capital adequacy purposes Ratio0.0400 0.0400
Common equity Tier 1 (to risk-weighted assets), For capital adequacy purposes Ratio7.00%7.00%
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Ratio0.0850 0.0850
Total capital (to risk-weighted assets) For capital adequacy purposes Ratio0.1050 0.1050

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in ThousandsJan. 01, 2020USD ($)Jan. 31, 2019USD ($)Jan. 31, 2018USD ($)Dec. 31, 2020USD ($)Sep. 30, 2020USD ($)Jun. 30, 2020USD ($)Mar. 31, 2020USD ($)Dec. 31, 2020USD ($)propertyDec. 31, 2019USD ($)Dec. 31, 2018USD ($)
Business Acquisition [Line Items]
Merger related expenses $ 1,194 $ 3,156 $ 3,070 $ 8,527 $ 15,947 $ 10,503 $ 26,911
Two River Bancorp Acquisition
Business Acquisition [Line Items]
Purchase accounting adjustments, assets $ 1,111,621
Purchase accounting adjustments, loans940,072
Deposits941,750
Consideration paid197,050
Cash consideration paid for outstanding warrants and fractional shares48,400
Number of properties in lease agreements | property14
Core deposit intangible12,130
Country Bank Holding Company, Inc. Acquisition
Business Acquisition [Line Items]
Purchase accounting adjustments, assets793,680
Purchase accounting adjustments, loans618,408
Deposits652,653
Consideration paid112,836
Number of properties in lease agreements | property5
Core deposit intangible $ 2,117
Sun Bancorp, Inc.
Business Acquisition [Line Items]
Purchase accounting adjustments, assets $ 2,044,054
Purchase accounting adjustments, loans1,517,345
Deposits1,616,073
Consideration paid474,930
Cash consideration paid for outstanding warrants and fractional shares72,400
Number of properties in lease agreements | property21
Core deposit intangible $ 2,662
Weighted average useful life (years)10 years
Capital Bank
Business Acquisition [Line Items]
Purchase accounting adjustments, assets494,416
Purchase accounting adjustments, loans307,300
Deposits449,018
Consideration paid76,834
Cash consideration paid for outstanding warrants and fractional shares $ 353
Number of properties in lease agreements | property1
Core deposit intangible $ 11,897

Business Combinations - Schedul

Business Combinations - Schedule of Merger Related Expenses (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2020Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Business Combinations [Abstract]
Data processing fees $ 3,758 $ 2,514 $ 6,017
Professional fees3,638 4,239 4,414
Employee severance payments7,727 2,942 15,660
Other/miscellaneous fees824 808 820
Merger related expenses $ 1,194 $ 3,156 $ 3,070 $ 8,527 $ 15,947 $ 10,503 $ 26,911

Business Combinations- Summary

Business Combinations- Summary of Estimated Fair Values of Assets Acquired and Liabilities (Details) - USD ($) $ in ThousandsJan. 01, 2020Jan. 31, 2019Jan. 31, 2018Dec. 31, 2020Dec. 31, 2019
Assets acquired:
Bank owned life insurance $ 265,253 $ 237,411
Liabilities assumed:
Goodwill recorded in the merger $ 500,319 $ 374,632
Two River Bancorp Acquisition
Business Acquisition [Line Items]
Total Purchase Price: $ 197,050
Assets acquired:
Cash and cash equivalents51,102
Securities64,381
Loans940,072
Accrued interest receivable2,382
Bank owned life insurance22,440
Deferred tax assets, net3,158
Other assets15,956
Core deposit intangible12,130
Total assets acquired1,111,621
Liabilities assumed:
Deposits(941,750)
Other liabilities(59,026)
Total liabilities assumed(1,000,776)
Net assets acquired110,845
Goodwill recorded in the merger86,205
Country Bank Holding Company, Inc. Acquisition
Business Acquisition [Line Items]
Total Purchase Price:112,836
Assets acquired:
Cash and cash equivalents20,799
Securities144,499
Loans618,408
Accrued interest receivable1,779
Deferred tax assets, net(3,117)
Other assets9,195
Core deposit intangible2,117
Total assets acquired793,680
Liabilities assumed:
Deposits(652,653)
Other liabilities(67,240)
Total liabilities assumed(719,893)
Net assets acquired73,787
Goodwill recorded in the merger $ 39,049
Capital Bank
Business Acquisition [Line Items]
Total Purchase Price: $ 76,834
Assets acquired:
Cash and cash equivalents59,748
Securities103,775
Loans307,300
Accrued interest receivable1,390
Bank owned life insurance10,460
Deferred tax assets, net4,101
Other assets4,980
Core deposit intangible $ 11,897
Total assets acquired494,416
Liabilities assumed:
Deposits(449,018)
Other liabilities(5,210)
Total liabilities assumed(454,228)
Net assets acquired40,188
Goodwill recorded in the merger36,646
Sun Bancorp, Inc.
Business Acquisition [Line Items]
Total Purchase Price:474,930
Assets acquired:
Cash and cash equivalents68,632
Securities254,522
Loans1,517,345
Accrued interest receivable5,621
Bank owned life insurance85,238
Deferred tax assets, net57,597
Other assets43,202
Core deposit intangible $ 2,662
Total assets acquired2,044,054
Liabilities assumed:
Deposits(1,616,073)
Borrowings(127,727)
Other liabilities(13,242)
Total liabilities assumed(1,757,042)
Net assets acquired287,012
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 Thousands11 Months Ended12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Two River Bancorp Acquisition
Business Acquisition [Line Items]
Net interest income, Actual $ 41,978
Credit loss expense, Actual6,117
Non-interest income, Actual2,688
Non-interest expense, Actual27,431
Provision for income taxes, Actual2,686
Net income, Actual8,432
Country Bank Holding Company, Inc. Acquisition
Business Acquisition [Line Items]
Net interest income, Actual27,411
Credit loss expense, Actual4,481
Non-interest income, Actual45
Non-interest expense, Actual17,993
Provision for income taxes, Actual1,204
Net income, Actual $ 3,778
Capital Bank
Business Acquisition [Line Items]
Net interest income, Actual $ 17,090
Credit loss expense, Actual385
Non-interest income, Actual1,456
Non-interest expense, Actual12,482
Provision for income taxes, Actual1,193
Net income, Actual $ 4,486
Sun Bancorp, Inc.
Business Acquisition [Line Items]
Net interest income, Actual $ 63,889
Credit loss expense, Actual1,215
Non-interest income, Actual7,961
Non-interest expense, Actual35,184
Provision for income taxes, Actual7,090
Net income, Actual $ 28,361
Ocean Shore Holdings Co.
Business Acquisition [Line Items]
Net interest income, Pro forma $ 329,327 $ 337,118
Provision for credit loss expense, Pro forma2,686 4,545
Non-interest income, Pro forma47,484 43,677
Non-interest expense, Pro forma240,913 258,072
Provision for income taxes, Pro forma23,870 21,098
Net income, Pro forma $ 109,342 $ 97,080
Fully diluted earnings per share, Pro forma $ 1.79 $ 1.56

Business Combinations - Sched_3

Business Combinations - Schedule of Future Amortization Expense (Details) - Core Deposit $ in ThousandsDec. 31, 2020USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
2021 $ 5,452
20224,718
20233,984
20243,250
20252,516
Thereafter3,748
Total $ 23,668

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($)Dec. 31, 2020Dec. 31, 2019
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost $ 180,154,000 $ 149,640,000
Available-for-sale, gross unrealized gains3,154,000 1,413,000
Available-for-sale, gross unrealized losses(6,000)(93,000)
Available-for-sale, estimated fair value183,302,000 150,960,000
Allowance for Credit Losses0
Held-to-maturity, gross unrealized gains942,314,000 772,975,000
Held-to-maturity, gross unrealized losses29,378,000 8,224,000
Held-to-maturity, Gross Unrealized Losses(3,226,000)(3,909,000)
Estimated Fair Value968,466,000 777,290,000
Allowance for Credit Losses(1,715,000)0
Total, Amortized Cost1,122,468,000 922,615,000
Total, Gross Unrealized Gains32,532,000 9,637,000
Total, Gross Unrealized Losses(3,232,000)(4,002,000)
Total, Estimated Fair Value1,151,768,000
Debt Securities928,250,000
Investment securities:
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost179,964,000 149,145,000
Available-for-sale, gross unrealized gains3,152,000 1,408,000
Available-for-sale, gross unrealized losses(6,000)(93,000)
Available-for-sale, estimated fair value183,110,000 150,460,000
Allowance for Credit Losses0
Held-to-maturity, gross unrealized gains310,710,000 208,961,000
Held-to-maturity, gross unrealized losses13,115,000 2,384,000
Held-to-maturity, Gross Unrealized Losses(2,883,000)(2,629,000)
Estimated Fair Value320,942,000 208,716,000
Allowance for Credit Losses(1,598,000)
U.S. government and agency obligations | Investment securities:
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost173,790,000 149,120,000
Available-for-sale, gross unrealized gains3,152,000 1,408,000
Available-for-sale, gross unrealized losses(2,000)(93,000)
Available-for-sale, estimated fair value176,940,000 150,435,000
Allowance for Credit Losses0
Held-to-maturity, gross unrealized gains4,984,000
Held-to-maturity, gross unrealized losses14,000
Held-to-maturity, Gross Unrealized Losses0
Estimated Fair Value4,998,000
Collateralized loan obligations | Investment securities:
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost6,174,000
Available-for-sale, gross unrealized gains0
Available-for-sale, gross unrealized losses(4,000)
Available-for-sale, estimated fair value6,170,000
Allowance for Credit Losses0
Corporate debt securities
Securities Financing Transaction [Line Items]
Held-to-maturity, gross unrealized gains38,332,000
Estimated Fair Value35,935,000
Corporate debt securities | Investment securities:
Securities Financing Transaction [Line Items]
Held-to-maturity, gross unrealized gains72,305,000 79,547,000
Held-to-maturity, gross unrealized losses1,615,000 833,000
Held-to-maturity, Gross Unrealized Losses(2,652,000)(2,421,000)
Estimated Fair Value71,268,000 77,959,000
Allowance for Credit Losses(1,550,000)
Mortgage-backed Securities
Securities Financing Transaction [Line Items]
Held-to-maturity, gross unrealized gains631,604,000 564,014,000
Held-to-maturity, gross unrealized losses16,263,000 5,840,000
Held-to-maturity, Gross Unrealized Losses(343,000)(1,280,000)
Estimated Fair Value647,524,000 568,574,000
Allowance for Credit Losses(117,000)0
Mortgage-backed Securities | FHLMC
Securities Financing Transaction [Line Items]
Held-to-maturity, gross unrealized gains232,942,000 206,985,000
Held-to-maturity, gross unrealized losses5,383,000 2,221,000
Held-to-maturity, Gross Unrealized Losses(124,000)(524,000)
Estimated Fair Value238,201,000 208,682,000
Allowance for Credit Losses0
Mortgage-backed Securities | FNMA
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost190,000 495,000
Available-for-sale, gross unrealized gains2,000 5,000
Available-for-sale, gross unrealized losses0 0
Available-for-sale, estimated fair value192,000 500,000
Allowance for Credit Losses0
Held-to-maturity, gross unrealized gains293,615,000 244,428,000
Held-to-maturity, gross unrealized losses7,640,000 2,680,000
Held-to-maturity, Gross Unrealized Losses(147,000)(493,000)
Estimated Fair Value301,108,000 246,615,000
Allowance for Credit Losses0
Mortgage-backed Securities | GNMA
Securities Financing Transaction [Line Items]
Held-to-maturity, gross unrealized gains67,334,000 110,661,000
Held-to-maturity, gross unrealized losses2,014,000 939,000
Held-to-maturity, Gross Unrealized Losses(12,000)(212,000)
Estimated Fair Value69,336,000 111,388,000
Allowance for Credit Losses0
Mortgage-backed Securities | SBA
Securities Financing Transaction [Line Items]
Held-to-maturity, gross unrealized gains5,392,000 1,940,000
Held-to-maturity, gross unrealized losses0 0
Held-to-maturity, Gross Unrealized Losses(60,000)(51,000)
Estimated Fair Value5,332,000 1,889,000
Allowance for Credit Losses0
Mortgage-backed Securities | CMO
Securities Financing Transaction [Line Items]
Held-to-maturity, gross unrealized gains32,321,000
Held-to-maturity, gross unrealized losses1,226,000
Held-to-maturity, Gross Unrealized Losses0
Estimated Fair Value33,547,000
Allowance for Credit Losses(117,000)
State and municipal obligations | Investment securities:
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost25,000
Available-for-sale, gross unrealized gains0
Available-for-sale, gross unrealized losses0
Available-for-sale, estimated fair value25,000
Held-to-maturity, gross unrealized gains238,405,000 124,430,000
Held-to-maturity, gross unrealized losses11,500,000 1,537,000
Held-to-maturity, Gross Unrealized Losses(231,000)(208,000)
Estimated Fair Value249,674,000 $ 125,759,000
Allowance for Credit Losses $ (48,000)

Securities - Allowance for Cred

Securities - Allowance for Credit Losses (Details) $ in Thousands12 Months Ended
Dec. 31, 2020USD ($)
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance $ 0
Total ending allowance balance(1,715)
Investment Securities
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance0
Provision for credit loss expense(330)
Total ending allowance balance(1,598)
Investment Securities | Cumulative Effect, Period of Adoption, Adjustment
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance(1,268)
Mortgage-backed Securities
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance0
Provision for credit loss expense(117)
Total ending allowance balance(117)
Mortgage-backed Securities | Cumulative Effect, Period of Adoption, Adjustment
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance $ 0

Securities - Additional Informa

Securities - Additional Information (Details) - USD ($)3 Months Ended12 Months Ended
Sep. 30, 2013Dec. 31, 2020Dec. 31, 2019Dec. 31, 2013
Investment [Line Items]
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
Realized gains on sale of investment securities $ 476,000
Debt securities, available-for-sale, realized gain (loss) $ 0
Less: Net gains recognized on equity securities sold5,401,000 0
Corporate debt securities, callable, amortized cost53,800,000
Corporate debt securities, callable, estimated fair value52,900,000
Estimated fair value of securities pledged for deposits and other purposes435,900,000 475,600,000
Equity investments, at estimated fair value107,079,000 10,136,000
Reverse Repurchase Agreements
Investment [Line Items]
Estimated fair value of securities pledged for reverse repurchase agreements $ 152,700,000 $ 81,400,000

Securities - Carrying Value of

Securities - Carrying Value of Held-to-Maturity Investment Securities (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Amortized cost $ 942,314 $ 772,975
Net loss on date of transfer from available-for-sale(13,347)(13,347)
Allowance for credit loss(1,715)0
Accretion of net unrealized loss on securities reclassified as held-to-maturity10,001 9,245
Carrying value $ 937,253 $ 768,873

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Details) $ in ThousandsDec. 31, 2020USD ($)
Amortized Cost
Less than one year $ 97,822
Due after one year through five years195,949
Due after five years through ten years93,596
Due after ten years103,307
Total investment securities490,674
Estimated Fair Value
Less than one year98,394
Due after one year through five years201,798
Due after five years through ten years92,120
Due after ten years111,740
Total investment securities $ 504,052

Securities - Estimated Fair Val

Securities - Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value $ 21,795 $ 25,021
Available-for-sale, Less than 12 months, Unrealized Losses(6)(54)
Available-for-sale, 12 months or Longer, Estimated Fair Value0 22,451
Available-for-sale, 12 months or longer, Unrealized Losses0 (39)
Available-for-sale, Total, Estimated Fair Value21,795 47,472
Available-for-sale, Total, Unrealized Losses(6)(93)
Held-to-maturity, Less than 12 months, Estimated Fair Value86,523 67,314
Held-to-maturity, Less than 12 months, Unrealized Losses(546)(452)
Held-to-maturity, 12 months or longer, Estimated Fair Value46,965 151,085
Held-to-maturity, 12 months or longer, Unrealized Losses(2,680)(3,457)
Held-to-maturity, Total, Estimated Fair Value133,488 218,399
Held-to-maturity, Total, Unrealized Losses(3,226)(3,909)
Total securities, Less than 12 months, Estimated Fair Value108,318 92,335
Total securities, Less than 12 months, Unrealized Losses(552)(506)
Total securities, 12 months or longer, Estimated Fair Value46,965 173,536
Total securities, 12 months or longer, Unrealized Losses(2,680)(3,496)
Total securities, Estimated Fair Value155,283 265,871
Total securities, Unrealized Losses(3,232)(4,002)
Investment securities:
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value13,015 17,035
Held-to-maturity, Less than 12 months, Unrealized Losses(278)(271)
Held-to-maturity, 12 months or longer, Estimated Fair Value43,444 52,159
Held-to-maturity, 12 months or longer, Unrealized Losses(2,605)(2,358)
Held-to-maturity, Total, Estimated Fair Value56,459 69,194
Held-to-maturity, Total, Unrealized Losses(2,883)(2,629)
U.S. government and agency obligations | Investment securities:
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value17,029 25,021
Available-for-sale, Less than 12 months, Unrealized Losses(2)(54)
Available-for-sale, 12 months or Longer, Estimated Fair Value0 22,451
Available-for-sale, 12 months or longer, Unrealized Losses0 (39)
Available-for-sale, Total, Estimated Fair Value17,029 47,472
Available-for-sale, Total, Unrealized Losses(2)(93)
Held-to-maturity, Total, Unrealized Losses0
State and municipal obligations | Investment securities:
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value2,823 7,308
Held-to-maturity, Less than 12 months, Unrealized Losses(23)(58)
Held-to-maturity, 12 months or longer, Estimated Fair Value7,509 14,531
Held-to-maturity, 12 months or longer, Unrealized Losses(208)(150)
Held-to-maturity, Total, Estimated Fair Value10,332 21,839
Held-to-maturity, Total, Unrealized Losses(231)(208)
Collateralized loan obligations
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value4,766
Available-for-sale, Less than 12 months, Unrealized Losses(4)
Available-for-sale, 12 months or Longer, Estimated Fair Value0
Available-for-sale, 12 months or longer, Unrealized Losses0
Available-for-sale, Total, Estimated Fair Value4,766
Available-for-sale, Total, Unrealized Losses(4)
Corporate debt securities | Investment securities:
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value10,192 9,727
Held-to-maturity, Less than 12 months, Unrealized Losses(255)(213)
Held-to-maturity, 12 months or longer, Estimated Fair Value35,935 37,628
Held-to-maturity, 12 months or longer, Unrealized Losses(2,397)(2,208)
Held-to-maturity, Total, Estimated Fair Value46,127 47,355
Held-to-maturity, Total, Unrealized Losses(2,652)(2,421)
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 Value73,508 50,279
Held-to-maturity, Less than 12 months, Unrealized Losses(268)(181)
Held-to-maturity, 12 months or longer, Estimated Fair Value3,521 98,926
Held-to-maturity, 12 months or longer, Unrealized Losses(75)(1,099)
Held-to-maturity, Total, Estimated Fair Value77,029 149,205
Held-to-maturity, Total, Unrealized Losses(343)(1,280)
Mortgage-backed Securities | FHLMC
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value24,661 6,329
Held-to-maturity, Less than 12 months, Unrealized Losses(117)(29)
Held-to-maturity, 12 months or longer, Estimated Fair Value669 38,641
Held-to-maturity, 12 months or longer, Unrealized Losses(7)(495)
Held-to-maturity, Total, Estimated Fair Value25,330 44,970
Held-to-maturity, Total, Unrealized Losses(124)(524)
Mortgage-backed Securities | FNMA
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value39,365 13,682
Held-to-maturity, Less than 12 months, Unrealized Losses(128)(59)
Held-to-maturity, 12 months or longer, Estimated Fair Value939 38,568
Held-to-maturity, 12 months or longer, Unrealized Losses(19)(434)
Held-to-maturity, Total, Estimated Fair Value40,304 52,250
Held-to-maturity, Total, Unrealized Losses(147)(493)
Mortgage-backed Securities | GNMA
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value5,856 30,268
Held-to-maturity, Less than 12 months, Unrealized Losses(11)(93)
Held-to-maturity, 12 months or longer, Estimated Fair Value207 19,828
Held-to-maturity, 12 months or longer, Unrealized Losses(1)(119)
Held-to-maturity, Total, Estimated Fair Value6,063 50,096
Held-to-maturity, Total, Unrealized Losses(12)(212)
Mortgage-backed Securities | SBA
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value3,626 0
Held-to-maturity, Less than 12 months, Unrealized Losses(12)0
Held-to-maturity, 12 months or longer, Estimated Fair Value1,706 1,889
Held-to-maturity, 12 months or longer, Unrealized Losses(48)(51)
Held-to-maturity, Total, Estimated Fair Value5,332 1,889
Held-to-maturity, Total, Unrealized Losses $ (60) $ (51)

Securities - Amortized Cost, Es

Securities - Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost $ 942,314 $ 772,975
Estimated Fair Value968,466 $ 777,290
Chase Capital
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost10,000
Estimated Fair Value $ 9,479
Credit Rating Moody’s/S&PBaa1/BBB-
Wells Fargo Capital
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost $ 5,000
Estimated Fair Value $ 4,702
Credit Rating Moody’s/S&PA1/BBB-
Huntington Capital
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost $ 5,000
Estimated Fair Value $ 4,546
Credit Rating Moody’s/S&PBaa2/BB+
Keycorp Capital
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost $ 5,000
Estimated Fair Value $ 4,647
Credit Rating Moody’s/S&PBaa2/BB+
PNC Capital
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost $ 5,000
Estimated Fair Value $ 4,743
Credit Rating Moody’s/S&PBaa1/BBB-
State Street Capital
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost $ 3,332
Estimated Fair Value $ 3,147
Credit Rating Moody’s/S&PA3/BBB
SunTrust Capital
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost $ 5,000
Estimated Fair Value $ 4,671
Credit Rating Moody’s/S&PNot Rated/BBB-

Securities - Debt Securities, H

Securities - Debt Securities, Held-to-maturity, Credit Quality Indicator (Details) $ in ThousandsDec. 31, 2020USD ($)
Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses $ 310,710
AAA | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses34,091
AA | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses130,714
A | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses71,250
BBB | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses63,322
BB | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses11,333
State and municipal obligations | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses238,405
State and municipal obligations | Investment And C M O Mortgage Backed Securities
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses343,031
State and municipal obligations | AAA | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses34,091
State and municipal obligations | AAA | Investment And C M O Mortgage Backed Securities
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses45,209
State and municipal obligations | AA | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses130,218
State and municipal obligations | AA | Investment And C M O Mortgage Backed Securities
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses151,917
State and municipal obligations | A | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses59,272
State and municipal obligations | A | Investment And C M O Mortgage Backed Securities
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses71,250
State and municipal obligations | BBB | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses14,824
State and municipal obligations | BBB | Investment And C M O Mortgage Backed Securities
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses63,322
State and municipal obligations | BB | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses0
State and municipal obligations | BB | Investment And C M O Mortgage Backed Securities
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses11,333
Corporate debt securities | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses72,305
Corporate debt securities | AAA | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses0
Corporate debt securities | AA | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses496
Corporate debt securities | A | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses11,978
Corporate debt securities | BBB | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses48,498
Corporate debt securities | BB | Investment securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses11,333
Mortgage-backed securities:
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses32,321
Mortgage-backed securities: | CMO
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses32,321
Mortgage-backed securities: | AAA
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses11,118
Mortgage-backed securities: | AAA | CMO
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses11,118
Mortgage-backed securities: | AA
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses21,203
Mortgage-backed securities: | AA | CMO
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses21,203
Mortgage-backed securities: | A
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses0
Mortgage-backed securities: | A | CMO
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses0
Mortgage-backed securities: | BBB
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses0
Mortgage-backed securities: | BBB | CMO
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses0
Mortgage-backed securities: | BB
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses0
Mortgage-backed securities: | BB | CMO
Securities Financing Transaction [Line Items]
Debt securities held to maturity net of allowance for credit losses $ 0

Securities - Equity Securities

Securities - Equity Securities Realized Losses (Details) - USD ($)12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Net gain on equity investments $ 21,214,000
Less: Net gains recognized on equity securities sold5,401,000 $ 0
Unrealized gain recognized on equity securities still held $ 15,813,000

Loans Receivable, Net - Compone

Loans Receivable, Net - Components of Loans Receivable, Net (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable $ 7,756,106 $ 6,214,652
Deferred origination costs, net of fees9,486 9,880
Allowance for credit losses(60,735)(16,852) $ (16,577)
Total loans receivable, net7,704,857 6,207,680
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable5,107,185 3,485,497
Commercial | Commercial real estate – owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable470,656 396,434
Commercial | Commercial real estate – owner occupied | Paycheck Protection Program
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable95,400
Commercial | Commercial real estate – owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable1,145,065 792,653
Commercial | Commercial real estate - investor
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable3,491,464 2,296,410
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable2,648,921 2,729,155
Allowance for credit losses(1,770)(591) $ (486)
Consumer | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable2,309,459 2,321,157
Consumer | Home equity loans and lines
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable285,016 318,576
Consumer | Other consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable $ 54,446 $ 89,422

Loans Receivable, Net - Credit

Loans Receivable, Net - Credit Grades and Risk Characteristics (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
2020 $ 1,496,628
20191,313,707
2018817,607
2017800,731
2016620,952
2015 and prior2,340,571
Revolving lines of credit365,910
Total7,756,106 $ 6,214,652
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2020137,993
201942,604
201830,036
201721,076
201634,914
2015 and prior61,163
Revolving lines of credit142,870
Total470,656
Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020137,262
201940,737
201827,967
201718,845
201633,568
2015 and prior59,339
Revolving lines of credit134,140
Total451,858
Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020150
2019583
2018826
20171,422
2016907
2015 and prior118
Revolving lines of credit1,429
Total5,435
Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020581
20191,284
20181,243
2017809
2016439
2015 and prior1,706
Revolving lines of credit7,301
Total13,363
Commercial real estate – owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
202096,888
2019152,688
2018140,203
2017128,477
2016125,056
2015 and prior481,743
Revolving lines of credit20,010
Total1,145,065
Commercial real estate – owner occupied | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
202096,888
2019114,506
2018122,962
2017124,050
2016104,264
2015 and prior428,423
Revolving lines of credit18,932
Total1,010,025
Commercial real estate – owner occupied | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
20200
20193,512
20188,240
20171,023
201617,115
2015 and prior17,811
Revolving lines of credit439
Total48,140
Commercial real estate – owner occupied | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
20200
201934,670
20189,001
20173,404
20163,677
2015 and prior35,509
Revolving lines of credit639
Total86,900
Commercial real estate - investor
Financing Receivable, Credit Quality Indicator [Line Items]
2020640,241
2019653,631
2018336,148
2017458,715
2016297,584
2015 and prior904,260
Revolving lines of credit200,885
Total3,491,464
Commercial real estate - investor | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020635,930
2019628,435
2018317,104
2017426,268
2016281,876
2015 and prior812,062
Revolving lines of credit194,913
Total3,296,588
Commercial real estate - investor | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
20200
201915,979
201817,113
201715,225
20164,234
2015 and prior55,872
Revolving lines of credit149
Total108,572
Commercial real estate - investor | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
20204,311
20199,217
20181,931
201717,222
201611,474
2015 and prior36,326
Revolving lines of credit5,823
Total86,304
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total2,648,921 2,729,155
Consumer | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020596,552
2019438,125
2018227,924
2017166,994
2016146,683
2015 and prior733,181
Revolving lines of credit0
Total2,309,459 $ 2,321,157
Consumer | Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
202024,954
201926,659
201883,296
201725,469
201616,715
2015 and prior160,224
Revolving lines of credit2,145
Total339,462
Consumer | Pass | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020595,982
2019437,593
2018226,435
2017166,773
2016146,237
2015 and prior729,037
Revolving lines of credit0
Total2,302,057
Consumer | Pass | Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
202024,954
201926,659
201883,296
201725,469
201616,565
2015 and prior156,276
Revolving lines of credit2,145
Total335,364
Consumer | Special Mention | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
20200
2019532
20180
20170
2016446
2015 and prior2,186
Revolving lines of credit0
Total3,164
Consumer | Special Mention | Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
20200
20190
20180
20170
2016150
2015 and prior382
Revolving lines of credit0
Total532
Consumer | Substandard | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020570
20190
20181,489
2017221
20160
2015 and prior1,958
Revolving lines of credit0
Total4,238
Consumer | Substandard | Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
20200
20190
20180
20170
20160
2015 and prior3,566
Revolving lines of credit0
Total $ 3,566

Loans Receivable, Net - Additio

Loans Receivable, Net - Additional Information (Details) - USD ($)12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, writeoff $ 20,184,000 $ 2,804,000
Impaired loans on non-accrual commercial real estate, multi-family, land, construction, commercial and industrial loans250,000 250,000
Impaired loan portfolio total26,500,000
Specific reserves to loans accruing troubled debt restructurings0 476,000
Average balance of impaired loans29,400,000
Interest income on non-accrual loans372,000 $ 419,000
Troubled debt restructuring loans17,500,000 24,600,000
Financing receivable impaired troubled debt restructuring performing loan amount12,000,000 18,000,000
Financing receivable commitments to lend additional funds on non accrual loans0 0
Non-accrual loan total troubled debt restructurings5,500,000 6,600,000
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, writeoff14,600,000
Residential and Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, writeoff3,300,000
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, writeoff890,000 0
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount1,900,000
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, writeoff1,244,000 606,000
Commercial real estate – owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, writeoff1,769,000 663,000
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount13,800,000
Commercial real estate - investor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, writeoff13,081,000 236,000
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount18,300,000
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, writeoff3,200,000 1,299,000
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount1,400,000 1,800,000
Foreclosed property held $ 106,000 $ 51,000

Loans Receivable, Net - Allowan

Loans Receivable, Net - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2020Dec. 31, 2019
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period $ 16,852 $ 16,577
Initial allowance for credit losses on PCD loans2,639
Credit loss expense57,402 1,636
Charge-offs(20,184)(2,804)
Recoveries1,325 1,443
Balance at end of period60,735 16,852
Ending allowance balance attributed to loans
Individually evaluated for impairment $ 476
Collectively evaluated for impairment16,376
Total ending allowance balance16,852 16,852 $ 60,735 16,852
Loans
Loans individually evaluated for impairment26,510
Loans collectively evaluated for impairment6,174,877
Total ending loan balance7,756,106 6,201,387
Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period2,701
Balance at end of period2,701
Ending allowance balance attributed to loans
Total ending allowance balance2,701 2,701 2,701
Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period1,458 1,609
Initial allowance for credit losses on PCD loans1,221
Credit loss expense1,039 (311)
Charge-offs(890)0
Recoveries146 160
Balance at end of period5,390 1,458
Ending allowance balance attributed to loans
Individually evaluated for impairment0
Collectively evaluated for impairment1,458
Total ending allowance balance5,390 1,609 5,390 1,458
Loans
Loans individually evaluated for impairment243
Loans collectively evaluated for impairment395,848
Total ending loan balance470,656 396,091
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period2,416
Balance at end of period2,416
Ending allowance balance attributed to loans
Total ending allowance balance2,416 2,416 2,416
Commercial real estate – owner occupied
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period2,893 2,277
Initial allowance for credit losses on PCD loans26
Credit loss expense15,007 947
Charge-offs(1,769)(663)
Recoveries6 332
Balance at end of period15,054 2,893
Ending allowance balance attributed to loans
Individually evaluated for impairment474
Collectively evaluated for impairment2,419
Total ending allowance balance2,893 2,893 15,054 2,893
Loans
Loans individually evaluated for impairment6,163
Loans collectively evaluated for impairment785,778
Total ending loan balance1,145,065 791,941
Commercial real estate – owner occupied | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period(1,109)
Balance at end of period(1,109)
Ending allowance balance attributed to loans
Total ending allowance balance(1,109)(1,109)(1,109)
Commercial Real Estate - Investor
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period9,883 8,770
Initial allowance for credit losses on PCD loans260
Credit loss expense34,935 638
Charge-offs(13,081)(236)
Recoveries101 711
Balance at end of period26,703 9,883
Ending allowance balance attributed to loans
Individually evaluated for impairment0
Collectively evaluated for impairment9,883
Total ending allowance balance9,883 9,883 26,703 9,883
Loans
Loans individually evaluated for impairment5,584
Loans collectively evaluated for impairment2,279,114
Total ending loan balance3,491,464 2,284,698
Commercial Real Estate - Investor | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period(5,395)
Balance at end of period(5,395)
Ending allowance balance attributed to loans
Total ending allowance balance(5,395)(5,395)(5,395)
Residential real estate
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period2,002 2,413
Initial allowance for credit losses on PCD loans109
Credit loss expense8,191 792
Charge-offs(3,200)(1,299)
Recoveries883 96
Balance at end of period11,818 2,002
Ending allowance balance attributed to loans
Individually evaluated for impairment0
Collectively evaluated for impairment2,002
Total ending allowance balance11,818 2,413 11,818 2,002
Loans
Loans individually evaluated for impairment11,009
Loans collectively evaluated for impairment2,309,812
Total ending loan balance2,309,459 2,320,821
Residential real estate | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period3,833
Balance at end of period3,833
Ending allowance balance attributed to loans
Total ending allowance balance3,833 3,833 3,833
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period591 486
Initial allowance for credit losses on PCD loans1,023
Credit loss expense(1,770)567
Charge-offs(1,244)(606)
Recoveries189 144
Balance at end of period1,770 591
Ending allowance balance attributed to loans
Individually evaluated for impairment2
Collectively evaluated for impairment589
Total ending allowance balance1,770 486 1,770 591
Loans
Loans individually evaluated for impairment3,511
Loans collectively evaluated for impairment404,325
Total ending loan balance339,462 407,836
Consumer | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period2,981
Balance at end of period2,981
Ending allowance balance attributed to loans
Total ending allowance balance2,981 2,981 2,981
Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period25 1,022
Initial allowance for credit losses on PCD loans0
Credit loss expense0 (997)
Charge-offs0 0
Recoveries0 0
Balance at end of period0 25
Ending allowance balance attributed to loans
Individually evaluated for impairment0
Collectively evaluated for impairment25
Total ending allowance balance25 25 $ 0 25
Loans
Loans individually evaluated for impairment0
Loans collectively evaluated for impairment0
Total ending loan balance0
Unallocated | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period(25)
Balance at end of period(25)
Ending allowance balance attributed to loans
Total ending allowance balance $ (25) $ (25) $ (25)

Loans Receivable, Net - Summary

Loans Receivable, Net - Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans (Details) $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)
Financing Receivable, Impaired [Line Items]
Recorded Investment $ 26,500
With no related allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance25,735
Recorded Investment24,313
Allowance for Loan Losses Allocated0
Average Recorded Investment27,256
Interest Income Recognized1,132
With an allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance2,378
Recorded Investment2,197
Allowance for Loan Losses Allocated476
Average Recorded Investment2,173
Interest Income Recognized138
Commercial and industrial | With no related allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance265
Recorded Investment243
Allowance for Loan Losses Allocated0
Average Recorded Investment523
Interest Income Recognized5
Commercial and industrial | With an allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance0
Recorded Investment0
Allowance for Loan Losses Allocated0
Average Recorded Investment0
Interest Income Recognized0
Commercial real estate – owner occupied | With no related allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance4,062
Recorded Investment3,968
Allowance for Loan Losses Allocated0
Average Recorded Investment4,171
Interest Income Recognized179
Commercial real estate – owner occupied | With an allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance2,376
Recorded Investment2,195
Allowance for Loan Losses Allocated474
Average Recorded Investment2,173
Interest Income Recognized138
Commercial real estate - investor | With no related allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance6,665
Recorded Investment5,584
Allowance for Loan Losses Allocated0
Average Recorded Investment9,012
Interest Income Recognized222
Commercial real estate - investor | With an allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance0
Recorded Investment0
Allowance for Loan Losses Allocated0
Average Recorded Investment0
Interest Income Recognized0
Residential real estate | With no related allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance11,009
Recorded Investment11,009
Allowance for Loan Losses Allocated0
Average Recorded Investment10,275
Interest Income Recognized548
Residential real estate | With an allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance0
Recorded Investment0
Allowance for Loan Losses Allocated0
Average Recorded Investment0
Interest Income Recognized0
Consumer | With no related allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance3,734
Recorded Investment3,509
Allowance for Loan Losses Allocated0
Average Recorded Investment3,275
Interest Income Recognized178
Consumer | With an allowance recorded
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance2
Recorded Investment2
Allowance for Loan Losses Allocated2
Average Recorded Investment0
Interest Income Recognized $ 0

Loans Receivable, Net - Recorde

Loans Receivable, Net - Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest $ 46,863 $ 17,849
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest1,908 207
Commercial real estate – owner occupied
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest13,751 4,811
Commercial real estate - investor
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest18,287 2,917
Residential real estate
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest8,671 7,181
Consumer
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest $ 4,246 $ 2,733

Loans Receivable, Net - Aging o

Loans Receivable, Net - Aging of Recorded Investment in Past Due Loans Excluding PCI Loans (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
90 Days or Greater Past Due $ 27,126 $ 9,286
Total Past Due63,780 26,636
Loans Not Past Due7,692,326 6,174,751
Total ending loan balance7,756,106 6,201,387
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due29,096 11,231
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due7,558 6,119
Commercial and industrial
Financing Receivable, Past Due [Line Items]
90 Days or Greater Past Due327 207
Total Past Due4,005 307
Loans Not Past Due466,651 395,784
Total ending loan balance470,656 396,091
Commercial and industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due3,050 100
Commercial and industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due628 0
Commercial real estate – owner occupied
Financing Receivable, Past Due [Line Items]
90 Days or Greater Past Due7,871 1,040
Total Past Due8,886 3,784
Loans Not Past Due1,136,179 788,157
Total ending loan balance1,145,065 791,941
Commercial real estate – owner occupied | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due1,015 1,541
Commercial real estate – owner occupied | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due0 1,203
Commercial real estate - investor
Financing Receivable, Past Due [Line Items]
90 Days or Greater Past Due11,122 2,792
Total Past Due23,252 4,111
Loans Not Past Due3,468,212 2,280,587
Total ending loan balance3,491,464 2,284,698
Commercial real estate - investor | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due8,897 381
Commercial real estate - investor | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due3,233 938
Residential real estate
Financing Receivable, Past Due [Line Items]
90 Days or Greater Past Due4,238 2,859
Total Past Due22,558 14,507
Loans Not Past Due2,286,901 2,306,314
Total ending loan balance2,309,459 2,320,821
Residential real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due15,156 8,161
Residential real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due3,164 3,487
Consumer
Financing Receivable, Past Due [Line Items]
90 Days or Greater Past Due3,568 2,388
Total Past Due5,079 3,927
Loans Not Past Due334,383 403,909
Total ending loan balance339,462 407,836
Consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due978 1,048
Consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due $ 533 $ 491

Loans Receivable, Net - Trouble

Loans Receivable, Net - Troubled Debt Restructurings (Details) $ in Thousands12 Months Ended
Dec. 31, 2020USD ($)loanDec. 31, 2019USD ($)loan
Commercial real estate – owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan1 1
Pre-modification Recorded Investment $ 1,112 $ 154
Post-modification Recorded Investment $ 1,143 $ 198
Commercial real estate – investor
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan2 1
Pre-modification Recorded Investment $ 1,035 $ 272
Post-modification Recorded Investment $ 1,116 $ 393
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan6 6
Pre-modification Recorded Investment $ 1,018 $ 1,036
Post-modification Recorded Investment $ 1,065 $ 1,091
Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan6 7
Pre-modification Recorded Investment $ 1,035 $ 663
Post-modification Recorded Investment $ 668 $ 683
Number of Loans | loan1
Recorded Investment $ 115

Loans Receivable, Net - PCD Loa

Loans Receivable, Net - PCD Loans Acquired (Details) $ in ThousandsJan. 01, 2020USD ($)
Two River
Financing Receivable, Impaired [Line Items]
Purchase price of loans at acquisition $ 26,354
Allowance for credit losses at acquisition1,343
Non-credit discount at acquisition3,589
Par value of acquired loans at acquisition31,286
Country Bank
Financing Receivable, Impaired [Line Items]
Purchase price of loans at acquisition24,667
Allowance for credit losses at acquisition1,296
Non-credit discount at acquisition5,334
Par value of acquired loans at acquisition $ 31,297

Loans Receivable, Net - Summa_2

Loans Receivable, Net - Summary of Changes in Accretable Yield (Details) $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning balance $ 3,630
Acquisition691
Accretion(2,613)
Reclassification from non-accretable difference1,317
Ending balance $ 3,025

Interest and Dividends Receiv_3

Interest and Dividends Receivable - Summary of Interest and Dividends Receivable (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Receivables [Abstract]
Loans receivable $ 30,893 $ 17,664
Debt securities, equity investments and other3,169 2,827
Mortgage-backed securities1,207 1,183
Total interest and dividends receivable $ 35,269 $ 21,674

Premises and Equipment, Net - S

Premises and Equipment, Net - Summary of Premises and Equipment (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Finance lease $ 1,845 $ 2,572
Total174,853 162,267
Accumulated depreciation and amortization(67,759)(59,576)
Total premises and equipment, net107,094 102,691
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross23,109 24,446
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross99,350 97,653
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross8,640 9,274
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross31,639 25,558
Other
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross $ 10,270 $ 2,764

Premises and Equipment, Net - A

Premises and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense $ 8.5 $ 8.2 $ 8.7

Deposits - Additional Informati

Deposits - Additional Information (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Banking and Thrift, Other Disclosures [Abstract]
Accrued interest payable $ 367 $ 238
Time deposits, $250,000 and over $ 409,500 $ 150,600

Deposits - Summary of Deposits

Deposits - Summary of Deposits Including Accrued Interest Payable (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Amount
Non-interest-bearing accounts $ 2,133,195 $ 1,377,396
Interest-bearing checking accounts3,646,866 2,539,428
Money market deposit accounts783,521 578,147
Savings accounts1,491,251 898,174
Time deposits1,372,783 935,632
Total deposits $ 9,427,616 $ 6,328,777
Weighted Average Cost
Non-interest-bearing accounts0.00%0.00%
Interest-bearing checking accounts0.49%0.68%
Money market deposit accounts0.19%0.68%
Savings accounts0.05%0.13%
Time deposits1.51%1.82%
Total deposits0.43%0.62%

Deposits - Summary of Time Depo

Deposits - Summary of Time Deposits (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Banking and Thrift, Other Disclosures [Abstract]
2021 $ 973,426
2022265,668
202363,132
202446,321
202515,138
Thereafter9,098
Total $ 1,372,783 $ 935,632

Deposits - Summary of Interest

Deposits - Summary of Interest Expense on Deposits (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Banking and Thrift, Other Disclosures [Abstract]
Interest-bearing checking accounts $ 19,395 $ 16,820 $ 9,219
Money market deposit accounts2,902 4,919 2,818
Savings accounts2,505 1,195 990
Time deposits23,488 15,498 9,551
Total interest expense on deposits $ 48,290 $ 38,432 $ 22,578

Borrowed Funds - Summary of Bor

Borrowed Funds - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
FHLB advance, amount $ 0 $ 519,260
Securities sold under agreements to repurchase with retail customers, amount128,454 71,739
Other borrowings, amount235,471 96,801
Total Borrowed funds, Amount $ 363,925 $ 687,800
Weighted Average
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
FHLB advances, weighted average rate0.00%1.84%
Securities sold under agreements to repurchase with retail customer, weighted average rate0.33%0.42%
Other borrowings, weighted average rate4.58%4.64%
Total Borrowed funds, weighted average rate3.08%2.09%

Borrowed Funds - Additional Inf

Borrowed Funds - Additional Information (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2020Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2020Dec. 31, 2018
Statement of Financial Position [Abstract]
FHLB advance prepayment fees $ 13,333 $ 0 $ 924 $ 0 $ 14,257 $ 0
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%

Borrowed Funds - Summary of Fed

Borrowed Funds - Summary of Federal Home Loan Bank Advances and Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Average balance $ 413,290 $ 387,925
Maximum amount outstanding at any month end $ 825,824 $ 519,260
Average interest rate for the year1.70%2.18%
Reverse Repurchase Agreements
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Average balance $ 125,500 $ 64,525
Maximum amount outstanding at any month end $ 153,810 $ 71,739
Average interest rate for the year0.45%0.43%
Mortgage-backed securities $ 147,445 $ 80,436
Estimated fair value of collateral, Mortgage-backed securities $ 152,679 $ 81,365

Borrowed Funds - Contractual Ma

Borrowed Funds - Contractual Maturities of FHLB Advances and Reverse Repurchase Agreements (Details) $ in ThousandsDec. 31, 2020USD ($)
Reverse Repurchase Agreements
Total $ 235,471
Reverse Repurchase Agreements
Reverse Repurchase Agreements
2021128,454
Total $ 128,454

Borrowed Funds - Schedule of Ot

Borrowed Funds - Schedule of Other Borrowings (Details)12 Months Ended
Dec. 31, 2020USD ($)
Debt Instrument [Line Items]
Stated Value $ 252,100,000
Carrying Value235,471,000
Maturing September 30, 2026 | Subordinated debt
Debt Instrument [Line Items]
Stated Value35,000,000
Carrying Value $ 34,804,000
Debt instrument, interest rate, stated percentage5.125%
Maturing May 15, 2030 | Subordinated debt
Debt Instrument [Line Items]
Stated Value $ 125,000,000
Carrying Value $ 122,446,000
Debt instrument, interest rate, stated percentage5.25%
Maturing October 1,2025 | Subordinated debt
Debt Instrument [Line Items]
Stated Value $ 7,500,000
Carrying Value $ 7,539,000
Debt instrument, interest rate, stated percentage7.21%
Maturing August 1, 2036 | Trust preferred
Debt Instrument [Line Items]
Stated Value $ 5,000,000
Carrying Value $ 5,000,000
Maturing August 1, 2036 | Trust preferred | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Floating rate percentage1.65%
Maturing March 15, 2036 | Trust preferred
Debt Instrument [Line Items]
Stated Value $ 30,000,000
Carrying Value $ 22,944,000
Maturing March 15, 2036 | Trust preferred | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Floating rate percentage1.35%
Maturing November 1, 2036 | Trust preferred
Debt Instrument [Line Items]
Stated Value $ 7,500,000
Carrying Value $ 7,500,000
Maturing November 1, 2036 | Trust preferred | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Floating rate percentage1.66%
Maturing April 19, 2037 | Trust preferred
Debt Instrument [Line Items]
Stated Value $ 10,000,000
Carrying Value $ 7,737,000
Maturing April 19, 2037 | Trust preferred | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Floating rate percentage1.53%
Maturing September 1, 2037 | Trust preferred
Debt Instrument [Line Items]
Stated Value $ 10,000,000
Carrying Value $ 10,000,000
Maturing September 1, 2037 | Trust preferred | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Floating rate percentage1.75%
Maturing October 1, 2037 | Trust preferred
Debt Instrument [Line Items]
Stated Value $ 10,000,000
Carrying Value $ 7,601,000
Maturing October 1, 2037 | Trust preferred | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Floating rate percentage1.39%
Maturing December 15, 2034 | Trust preferred
Debt Instrument [Line Items]
Stated Value $ 10,000,000
Carrying Value $ 7,800,000
Maturing December 15, 2034 | Trust preferred | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Floating rate percentage2.25%
Maturing June 30, 2029
Debt Instrument [Line Items]
Stated Value $ 2,100,000
Carrying Value $ 2,100,000
Debt instrument, interest rate, stated percentage5.625%
September 30, 2021 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Floating rate percentage3.92%
August 15, 2025 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Floating rate percentage5.095%

Borrowed Funds - Interest Expen

Borrowed Funds - Interest Expense on Borrowings (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Debt Disclosure [Abstract]
FHLB advances $ 7,018 $ 8,441 $ 7,885
Reverse repurchase agreements562 276 168
Other borrowings10,787 5,674 5,521
Total interest expense on borrowings $ 18,367 $ 14,391 $ 13,574

Income Taxes - Components of In

Income Taxes - Components of Income Tax Expense Benefit (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2020Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Current
Federal $ 15,731 $ 1,991 $ 18,030
State6,617 740 108
Total current22,348 2,731 18,138
Deferred
Federal(2,746)18,846 (4,568)
State(1,869)(2,793)0
Total deferred(4,615)16,053 (4,568)
Total provision for income taxes $ 10,419 $ (2,608) $ 5,878 $ 4,044 $ 3,181 $ 6,302 $ 4,465 $ 4,836 $ 17,733 $ 18,784 $ 13,570

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Unrealized gains (loss) on securities, tax expense $ 721,000 $ 874,000 $ 1,100,000
Purchase accounting adjustments(602,000)8,475,000
Retained earnings not provided for provision for income tax10,800,000
Unrecognized deferred tax liability2,800,000
Unrecognized tax benefits0 0 0
Income tax benefit from revaluation of state deferred tax assets2,200,000
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 carryforwards4,600,000 4,900,000
Operating loss carryforwards, subject to expiration330,000
Cape Bancorp, Inc.
Operating Loss Carryforwards [Line Items]
Tax credit0 1,000,000
Sun Bancorp, Inc.
Operating Loss Carryforwards [Line Items]
Purchase accounting adjustments4,500,000
Operating loss carryforwards152,600,000 175,900,000
Operating loss carryforwards, subject to expiration23,300,000 9,300,000
Tax credit2,300,000 2,300,000
New Jersey
Operating Loss Carryforwards [Line Items]
Tax credit1,800,000 $ 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) $ 786,000

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Reconciliation (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2020Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income before provision for income taxes $ 43,483 $ (7,534) $ 24,516 $ 20,577 $ 26,631 $ 31,273 $ 23,445 $ 26,009 $ 81,042 $ 107,358 $ 85,502
Applicable statutory Federal income tax rate21.00%21.00%21.00%
Computed “expected” Federal income tax expense $ 17,019 $ 22,545 $ 17,955
Increase (decrease) in Federal income tax expense resulting from
State income taxes, net of Federal benefit3,751 583 85
Earnings on BOLI(1,349)(1,138)(1,072)
Tax exempt interest(1,161)(665)(615)
Merger related expenses138 297 322
Stock compensation(136)(386)(758)
Revaluation of state deferred tax asset0 (2,205)0
Impact of Tax Cuts and Jobs Act (“Tax Reform”)0 0 (1,854)
Reclassification of certain tax effect from accumulated other comprehensive income(204)(221)(586)
Other items, net(325)(26)93
Total provision for income taxes $ 10,419 $ (2,608) $ 5,878 $ 4,044 $ 3,181 $ 6,302 $ 4,465 $ 4,836 $ 17,733 $ 18,784 $ 13,570

Income Taxes - Schedule of Sign

Income Taxes - Schedule of Significant Portions of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Deferred tax assets:
Allowance for credit losses on loans and debt securities HTM $ 16,168 $ 4,107
Other reserves2,485 3,061
Incentive compensation2,919 1,397
Deferred compensation533 591
Stock plans2,214 1,270
Unrealized loss on properties available-for-sale2,435 1,438
Unrealized loss on securities272 826
Net operating loss carryforwards related to acquisition33,014 39,519
Deferred fees on PPP loans517 0
Other, net195 178
Federal and state alternative minimum tax3,705 4,746
Total gross deferred tax assets64,457 57,133
Deferred tax liabilities:
Unrealized gain on equity securities(4,154)0
Premises and equipment(5,871)(7,340)
Deferred loan and commitment costs, net(2,968)(2,379)
Purchase accounting adjustments(602)8,475
Investments, discount accretion(452)(380)
Undistributed REIT income0 (4,735)
Other, net(783)(707)
Total gross deferred tax liabilities(14,830)(7,066)
Net deferred tax assets $ 49,627 $ 50,067

Employee Stock Ownership Plan -

Employee Stock Ownership Plan - Additional Information (Details) - USD ($) $ in ThousandsMay 12, 1998Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018May 01, 2018Apr. 30, 2018
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Contributions to ESOP $ 1,500 $ 1,500
Dividends paid unallocated ESOP shares313 357
Outstanding loan $ 8,100 $ 9,300
Unallocated shares of ESOP (in shares)394,080 459,711
Fair value of unallocated shares $ 7,300
Shares allocated to participants (in shares)2,477,663
Shares committed to be released (in shares)65,631
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 (in shares)2,013,137
Additional borrowings $ 8,200 $ 8,400
Additional common stock shares (in shares)633,750 292,592
Fixed interest rate (percent)3.25%8.25%
Compensation expense related to ESOP $ 1,100 $ 1,600 $ 1,600
Increase (decrease) in the average fair value $ (80) $ 366 $ 596
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 (Details) - USD ($) $ / shares in Units, $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, assumed in acquisition (in shares)0 0 491,248
Weighted average exercise price, assumed in acquisition (in dollars per share) $ 0 $ 0 $ 21.92
Compensation cost related to non-vested awards not yet recognized $ 12,500
Aggregate intrinsic value for stock options outstanding3,500
Aggregate intrinsic value for stock options exercisable $ 3,400
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 $ 1,500 $ 973 $ 1,000
Vesting period of compensation cost related to non-vested awards3 years 3 months
Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expense for stock option grants $ 2,800 $ 2,900 $ 2,000
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (years)5 years
2020 Stock Incentive Plan | Equity Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock incentive plan, number of additional shares authorized (in shares)2,000,000
Stock incentive plan remaining options or awards (in shares)969,294
2020 Stock Incentive Plan | Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock incentive plan, number of additional shares authorized (in shares)800,000
Stock incentive plan remaining options or awards (in shares)387,718
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 (in shares)4,000,000
Stock incentive plan remaining options or awards (in shares)47,690
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 (in shares)1,600,000
Stock incentive plan remaining options or awards (in shares)19,076
Tranche One | Equity Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock incentive plan vesting rate (percent)20.00%
Sun Bancorp, Inc.