Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-11713 | |
Entity Registrant Name | OceanFirst Financial Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3412577 | |
Entity Address, Address Line One | 110 West Front Street, | |
Entity Address, City or Town | Red Bank, | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07701 | |
City Area Code | 732 | |
Local Phone Number | 240-4500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,423,069 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001004702 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | OCFC | |
Security Exchange Name | NASDAQ | |
Depositary Shares | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock) | |
Trading Symbol | OCFCP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 408,882 | $ 167,946 |
Debt securities available-for-sale, at estimated fair value | 453,208 | 457,648 |
Debt securities held-to-maturity, net of allowance for securities credit losses of $932 at September 30, 2023 and $1,128 at December 31, 2022 (estimated fair value of $1,047,342 at September 30, 2023 and $1,110,041 at December 31, 2022) | 1,189,339 | 1,221,138 |
Equity investments | 97,908 | 102,037 |
Restricted equity investments, at cost | 82,484 | 109,278 |
Loans receivable, net of allowance for loan credit losses of $63,877 at September 30, 2023 and $56,824 at December 31, 2022 | 10,068,156 | 9,868,718 |
Loans held-for-sale | 0 | 690 |
Interest and dividends receivable | 50,030 | 44,704 |
Premises and equipment, net | 122,646 | 126,705 |
Bank owned life insurance | 265,071 | 261,603 |
Assets held for sale | 3,004 | 2,719 |
Goodwill | 506,146 | 506,146 |
Core deposit intangible | 10,489 | 13,497 |
Other assets | 240,820 | 221,067 |
Total assets | 13,498,183 | 13,103,896 |
Liabilities and Stockholders’ Equity | ||
Deposits | 10,533,929 | 9,675,206 |
Federal Home Loan Bank (“FHLB”) advances | 606,056 | 1,211,166 |
Securities sold under agreements to repurchase with customers | 82,981 | 69,097 |
Other borrowings | 196,183 | 195,403 |
Advances by borrowers for taxes and insurance | 29,696 | 21,405 |
Other liabilities | 411,734 | 346,155 |
Total liabilities | 11,860,579 | 11,518,432 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, and 57,370 shares issued at both September 30, 2023 and December 31, 2022 | 1 | 1 |
Common stock, $0.01 par value, 150,000,000 shares authorized, 62,156,581 and 61,877,686 shares issued at September 30, 2023 and December 31, 2022, respectively; and 59,421,498 and 59,144,128 shares outstanding at September 30, 2023 and December 31, 2022, respectively | 613 | 612 |
Additional paid-in capital | 1,160,869 | 1,154,821 |
Retained earnings | 577,708 | 540,507 |
Accumulated other comprehensive loss | (28,811) | (35,982) |
Less: Unallocated common stock held by Employee Stock Ownership Plan ("ESOP") | (4,383) | (6,191) |
Treasury stock, 2,735,083 and 2,733,558 shares at September 30, 2023 and December 31, 2022 | (69,106) | (69,106) |
OceanFirst Financial Corp. stockholders’ equity | 1,636,891 | 1,584,662 |
Non-controlling interest | 713 | 802 |
Total stockholders’ equity | 1,637,604 | 1,585,464 |
Total liabilities and stockholders’ equity | $ 13,498,183 | $ 13,103,896 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 932,000 | $ 1,128,000 |
Securities held-to-maturity, fair value | 1,047,342,000 | 1,110,041,000 |
Allowance for loan credit losses | $ 63,877,000 | $ 56,824,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference, value | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 57,370 | 57,370 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 62,156,581 | 61,877,686 |
Common stock, shares outstanding (in shares) | 59,421,498 | 59,144,128 |
Treasury stock, shares (in shares) | 2,735,083 | 2,733,558 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Loans | $ 133,931 | $ 100,141 | $ 384,755 | $ 273,340 |
Debt securities | 15,223 | 8,479 | 43,829 | 23,456 |
Equity investments and other | 9,256 | 1,879 | 18,956 | 4,102 |
Total interest income | 158,410 | 110,499 | 447,540 | 300,898 |
Interest expense: | ||||
Deposits | 53,287 | 9,238 | 112,551 | 17,596 |
Borrowed funds | 14,127 | 5,296 | 53,082 | 12,313 |
Total interest expense | 67,414 | 14,534 | 165,633 | 29,909 |
Net interest income | 90,996 | 95,965 | 281,907 | 270,989 |
Provision for credit losses | 10,283 | 1,016 | 14,525 | 4,121 |
Net interest income after provision for credit losses | 80,713 | 94,949 | 267,382 | 266,868 |
Other income: | ||||
Bankcard services revenue | 1,507 | 1,509 | 4,381 | 7,782 |
Net gain on sales of loans | 66 | 168 | 119 | 348 |
Net gain (loss) on equity investments | 1,452 | 3,362 | (5,908) | (7,502) |
Net gain from other real estate operations | 0 | 0 | 0 | 48 |
Income from bank owned life insurance | 1,390 | 1,356 | 3,853 | 4,881 |
Commercial loan swap income | 11 | 1,471 | 712 | 6,546 |
Other | 496 | 396 | 748 | 579 |
Total other income | 10,762 | 15,150 | 21,763 | 31,543 |
Operating expenses: | ||||
Compensation and employee benefits | 35,534 | 34,124 | 103,676 | 97,972 |
Occupancy | 5,466 | 5,288 | 15,970 | 15,790 |
Equipment | 1,172 | 1,150 | 3,478 | 3,856 |
Marketing | 1,183 | 655 | 3,126 | 2,242 |
Federal deposit insurance and regulatory assessments | 2,557 | 1,757 | 6,771 | 5,435 |
Data processing | 6,086 | 6,560 | 18,405 | 18,466 |
Check card processing | 1,154 | 1,231 | 3,649 | 3,728 |
Professional fees | 5,258 | 2,502 | 15,439 | 8,296 |
Amortization of core deposit intangible | 987 | 1,171 | 3,008 | 3,559 |
Branch consolidation (benefit) expense, net | 0 | (346) | 70 | 602 |
Merger related expenses | 0 | 298 | 22 | 2,459 |
Other operating expense | 5,087 | 4,607 | 15,109 | 12,748 |
Total operating expenses | 64,484 | 58,997 | 188,723 | 175,153 |
Income before provision for income taxes | 26,991 | 51,102 | 100,422 | 123,258 |
Provision for income taxes | 6,459 | 12,298 | 24,109 | 29,212 |
Net income | 20,532 | 38,804 | 76,313 | 94,046 |
Net (loss) income attributable to non-controlling interest | (135) | 193 | (34) | 715 |
Net income attributable to OceanFirst Financial Corp. | 20,667 | 38,611 | 76,347 | 93,331 |
Dividends on preferred shares | 1,004 | 1,004 | 3,012 | 3,012 |
Net income available to common stockholders, basic | 19,663 | 37,607 | 73,335 | 90,319 |
Net income available to common stockholders, diluted | $ 19,663 | $ 37,607 | $ 73,335 | $ 90,319 |
Basic earnings per share (in dollars per share) | $ 0.33 | $ 0.64 | $ 1.24 | $ 1.54 |
Diluted earnings per share (in dollars per share) | $ 0.33 | $ 0.64 | $ 1.24 | $ 1.53 |
Average basic shares outstanding (in shares) | 59,104 | 58,681 | 59,037 | 58,777 |
Average diluted shares outstanding (in shares) | 59,111 | 58,801 | 59,068 | 58,918 |
Trust and asset management revenue | ||||
Other income: | ||||
Other income | $ 662 | $ 568 | $ 1,919 | $ 1,835 |
Fees and service charges | ||||
Other income: | ||||
Other income | $ 5,178 | $ 6,320 | $ 15,939 | $ 17,026 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 20,532 | $ 38,804 | $ 76,313 | $ 94,046 |
Other comprehensive income (loss): | ||||
Net unrealized gain (loss) on debt securities (net of tax expense of $572 and $2,430 in 2023 and tax benefit of $3,023 and $11,411 in 2022, respectively) | 1,797 | (9,490) | 7,626 | (35,858) |
Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $66 and $176 in 2023 and tax expense of $60 and $186 in 2022, respectively) | 116 | 87 | 277 | 265 |
Unrealized loss on derivative hedges (net of tax benefit of $198 and $573 in 2023) | (622) | 0 | (1,798) | 0 |
Reclassification adjustment for losses (gains) included in net income (net of tax expense of $78 and $340 in 2023 and tax benefit $26 in 2022, respectively) | 246 | 0 | 1,066 | (82) |
Total other comprehensive income (loss), net of tax | 1,537 | (9,403) | 7,171 | (35,675) |
Total comprehensive income | 22,069 | 29,401 | 83,484 | 58,371 |
Less: comprehensive (loss) income attributable to non-controlling interest | (135) | 193 | (34) | 715 |
Comprehensive income attributable to OceanFirst Financial Corp. | 22,204 | 29,208 | 83,518 | 57,656 |
Less: Dividends on preferred shares | 1,004 | 1,004 | 3,012 | 3,012 |
Total comprehensive income available to common stockholders | $ 21,200 | $ 28,204 | $ 80,506 | $ 54,644 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gain (loss), before adjustment, tax expense (benefit) | $ 572 | $ (3,023) | $ 2,430 | $ (11,411) |
Other comprehensive income accretion of fair value adjustment on held to maturity securities tax | 66 | $ 60 | 176 | 186 |
Other comprehensive income (loss), cash flow hedge, gain (loss), after reclassification, tax benefit | (198) | (573) | ||
Reclassification adjustment from AOCI for sale of securities, tax expense (benefit) | $ 78 | $ 340 | $ (26) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Employee Stock Ownership Plan | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non-Controlling Interest |
Beginning balance at Dec. 31, 2021 | $ 1,516,553 | $ (8,615) | $ 1 | $ 611 | $ 1,146,781 | $ 442,306 | $ (2,821) | $ (61,710) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 94,046 | 93,331 | 715 | ||||||
Other comprehensive income (loss), net of tax | (35,675) | (35,675) | |||||||
Stock compensation | 5,019 | 5,019 | |||||||
Allocation of ESOP stock | 1,848 | 1,818 | 30 | ||||||
Cash dividend | (31,767) | (31,767) | |||||||
Exercise of stock options | 346 | 1 | 1,242 | (897) | |||||
Repurchase shares of common stock | (7,396) | (7,396) | |||||||
Preferred stock dividend | (3,012) | (3,012) | |||||||
Acquisition of Trident Abstract Title Agency, LLC (“Trident”) | 836 | 836 | |||||||
Distributions to non-controlling interest | (582) | 6 | (588) | ||||||
Ending balance at Sep. 30, 2022 | 1,540,216 | (6,797) | 1 | 612 | 1,153,072 | 499,967 | (38,496) | (69,106) | 963 |
Beginning balance at Jun. 30, 2022 | 1,521,432 | (7,403) | 1 | 612 | 1,151,363 | 474,114 | (29,093) | (69,106) | 944 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 38,804 | 38,611 | 193 | ||||||
Other comprehensive income (loss), net of tax | (9,403) | (9,403) | |||||||
Stock compensation | 1,619 | 1,619 | |||||||
Allocation of ESOP stock | 601 | 606 | (5) | ||||||
Cash dividend | (11,752) | (11,752) | |||||||
Exercise of stock options | 95 | 0 | 95 | ||||||
Preferred stock dividend | (1,004) | (1,004) | |||||||
Distributions to non-controlling interest | (176) | (2) | (174) | ||||||
Ending balance at Sep. 30, 2022 | 1,540,216 | (6,797) | 1 | 612 | 1,153,072 | 499,967 | (38,496) | (69,106) | 963 |
Beginning balance at Dec. 31, 2022 | 1,585,464 | (6,191) | 1 | 612 | 1,154,821 | 540,507 | (35,982) | (69,106) | 802 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 76,313 | 76,347 | (34) | ||||||
Other comprehensive income (loss), net of tax | 7,171 | 7,171 | |||||||
Stock compensation | 4,910 | 4,910 | |||||||
Allocation of ESOP stock | 1,634 | 1,808 | (174) | ||||||
Cash dividend | (35,414) | (35,414) | |||||||
Exercise of stock options | 593 | 1 | 1,312 | (720) | |||||
Preferred stock dividend | (3,012) | (3,012) | |||||||
Distributions to non-controlling interest | (55) | (55) | |||||||
Ending balance at Sep. 30, 2023 | 1,637,604 | (4,383) | 1 | 613 | 1,160,869 | 577,708 | (28,811) | (69,106) | 713 |
Beginning balance at Jun. 30, 2023 | 1,626,283 | (4,986) | 1 | 613 | 1,159,394 | 569,867 | (30,348) | (69,106) | 848 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 20,532 | 20,667 | (135) | ||||||
Other comprehensive income (loss), net of tax | 1,537 | 1,537 | |||||||
Stock compensation | 1,574 | 1,574 | |||||||
Allocation of ESOP stock | 504 | 603 | (99) | ||||||
Cash dividend | (11,822) | (11,822) | |||||||
Preferred stock dividend | (1,004) | (1,004) | |||||||
Ending balance at Sep. 30, 2023 | $ 1,637,604 | $ (4,383) | $ 1 | $ 613 | $ 1,160,869 | $ 577,708 | $ (28,811) | $ (69,106) | $ 713 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.54 |
Purchase of common stock (in shares) | 373,223 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 76,313 | $ 94,046 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 9,164 | 8,526 |
Allocation of ESOP stock | 1,634 | 1,848 |
Stock compensation | 4,910 | 5,019 |
Net excess tax expense on stock compensation | 243 | 215 |
Amortization of servicing asset | 54 | 77 |
Net premium amortization in excess of discount accretion on securities | 3,818 | 5,522 |
Net amortization of deferred costs on borrowings | 445 | 416 |
Amortization of core deposit intangible | 3,008 | 3,559 |
Net accretion of purchase accounting adjustments | (4,219) | (7,433) |
Net amortization of deferred fees/costs and premiums/discounts on loans | (940) | 349 |
Provision for credit losses | 14,525 | 4,121 |
Net gain on sale of other real estate owned | 0 | (54) |
Net write down of fixed assets held-for-sale to net realizable value | 459 | 1,427 |
Net gain on sale of fixed assets | (26) | (52) |
Net loss on sales of available-for-sale securities | 697 | 0 |
Net loss on equity investments | 5,908 | 7,502 |
Net gain on sales of loans | (119) | (348) |
Proceeds from sales of residential loans held for sale | 38,048 | 10,266 |
Residential loans originated for sale | (37,239) | (13,677) |
Increase in value of bank owned life insurance | (3,853) | (4,881) |
Net loss (gain) on sale of assets held for sale | 7 | (1,947) |
Increase in interest and dividends receivable | (5,326) | (5,782) |
Deferred tax benefit | (93) | (66) |
Increase in other assets | (22,350) | (84,582) |
Increase in other liabilities | 66,016 | 185,927 |
Total adjustments | 74,771 | 115,952 |
Net cash provided by operating activities | 151,084 | 209,998 |
Cash flows from investing activities: | ||
Net increase in loans receivable | (210,412) | (938,915) |
Proceeds from sale of loans | 0 | 13,388 |
Purchase of residential loan pool | 0 | (161,701) |
Premiums paid on purchased loan pool | 0 | (495) |
Purchase of debt securities available-for-sale | (4,287) | (64,862) |
Purchase of debt securities held-to-maturity | (65,567) | (26,666) |
Purchase of equity investments | (7,383) | (5,935) |
Proceeds from maturities and calls of debt securities available-for-sale | 16,950 | 84,200 |
Proceeds from maturities and calls of debt securities held-to-maturity | 13,940 | 25,126 |
Proceeds from sales of debt securities available-for-sale | 1,300 | 30,257 |
Proceeds from sale of equity investments | 4,822 | 19,235 |
Principal repayments on debt securities held-to-maturity | 82,661 | 111,283 |
Proceeds from bank owned life insurance | 385 | 2,970 |
Proceeds from the redemption of restricted equity investments | 128,544 | 164,939 |
Purchases of restricted equity investments | (101,745) | (189,300) |
Proceeds from sale of other real estate owned | 0 | 160 |
Proceeds from sales of assets held-for-sale | 969 | 7,676 |
Purchases of premises and equipment | (6,062) | (14,358) |
Purchases of operating lease equipment | 0 | (4,789) |
Net cash consideration received for acquisition | 0 | 38,609 |
Net cash used in investing activities | (145,885) | (909,178) |
Cash flows from financing activities: | ||
Increase in deposits | 858,947 | 227,192 |
Increase (decrease) in short-term borrowings | 13,807 | (22,480) |
Net (repayment) proceeds from FHLB advances | (605,110) | 514,200 |
Repayments of other borrowings | 0 | (35,076) |
Increase in advances by borrowers for taxes and insurance | 8,291 | 5,152 |
Exercise of stock options | 593 | 346 |
Payment of employee taxes withheld from stock awards and phantom stock units | (2,350) | (1,473) |
Purchase of treasury stock | 0 | (7,396) |
Dividends paid | (38,426) | (34,779) |
Distributions to non-controlling interest | (55) | (582) |
Net cash provided by financing activities | 235,697 | 645,104 |
Net increase (decrease) in cash and due from banks and restricted cash | 240,896 | (54,076) |
Cash and due from banks and restricted cash at beginning of period | 167,986 | 224,784 |
Cash and due from banks and restricted cash at end of period | 408,882 | 170,708 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash and due from banks at beginning of period | 167,946 | 204,949 |
Restricted cash at beginning of period | 40 | 19,835 |
Cash and due from banks at end of period | 408,882 | 170,668 |
Restricted cash at end of period | 0 | 40 |
Cash and due from banks and restricted cash at end of period | 408,882 | 170,708 |
Cash paid during the period for: | ||
Interest | 148,950 | 27,953 |
Income taxes | 28,151 | 12,633 |
Non-cash activities: | ||
Accretion of unrealized loss on securities reclassified to held-to-maturity | 453 | 451 |
Net loan charge-offs (recoveries) | 8,271 | (335) |
Transfer of loans receivable to loans held-for-sale | 0 | 13,178 |
Transfer of premises and equipment to assets held-for-sale | 1,302 | 2,776 |
Non-cash assets acquired: | ||
Other current assets | 0 | 238 |
Premises and equipment | 0 | 18 |
Right of use (“ROU”) asset | 0 | 779 |
Other assets | 0 | 81 |
Total non-cash assets acquired | 0 | 1,116 |
Liabilities assumed: | ||
Lease liability | 0 | 779 |
Other liabilities | 0 | 43,937 |
Total liabilities assumed | $ 0 | $ 44,716 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include: the accounts of OceanFirst Financial Corp. (the “Company”); its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc.; the Bank’s direct and indirect wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., OceanFirst Management Corp., OceanFirst Realty Corp., Casaba Real Estate Holdings Corporation, and Country Property Holdings, Inc; and a majority controlling interest in Trident. Certain other subsidiaries were dissolved in 2022 and are included in the consolidated financial statements for previous periods. All significant intercompany accounts and transactions have been eliminated in consolidation. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results of operations that may be expected for the full year 2023 or any other period. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and the results of operations for the periods presented. Actual results could differ from these estimates. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following reconciles shares outstanding for basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Weighted average shares outstanding 59,422 59,134 59,388 59,245 Less: Unallocated ESOP shares (243) (363) (272) (393) Unallocated incentive award shares (75) (90) (79) (75) Average basic shares outstanding 59,104 58,681 59,037 58,777 Add: Effect of dilutive securities: Incentive awards 7 120 31 141 Average diluted shares outstanding 59,111 58,801 59,068 58,918 For the three and nine months ended September 30, 2023, antidilutive stock options of 1,961,000 and 1,525,000, respectively, were excluded from the earnings per share calculation. For both the three and nine months ended September 30, 2022, antidilutive stock options of 1,552,000 were excluded from the earnings per share calculation. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost, estimated fair value, and allowance for securities credit losses of debt securities available-for-sale and held-to-maturity at September 30, 2023 and December 31, 2022 are as follows (in thousands): Amortized Gross Gross Estimated Allowance for Credit Losses At September 30, 2023 Debt securities available-for-sale: U.S. government and agency obligations $ 71,895 $ — $ (7,815) $ 64,080 $ — Corporate debt securities 10,084 — (1,132) 8,952 — Asset-backed securities 296,212 — (5,768) 290,444 — Agency commercial mortgage-backed securities (“MBS”) 109,827 — (20,095) 89,732 — Total debt securities available-for-sale $ 488,018 $ — $ (34,810) $ 453,208 $ — Debt securities held-to-maturity: State and municipal debt obligations $ 228,779 $ 30 $ (26,705) $ 202,104 $ (41) Corporate debt securities 71,430 373 (6,106) 65,697 (868) Mortgage-backed securities: Agency residential 787,875 3 (103,865) 684,013 — Agency commercial 83,322 16 (6,392) 76,946 (16) Non-agency commercial 20,760 — (2,178) 18,582 (7) Total mortgage-backed securities 891,957 19 (112,435) 779,541 (23) Total debt securities held-to-maturity $ 1,192,166 $ 422 $ (145,246) $ 1,047,342 $ (932) Total debt securities $ 1,680,184 $ 422 $ (180,056) $ 1,500,550 $ (932) At December 31, 2022 Debt securities available-for-sale: U.S. government and agency obligations $ 87,648 $ 1 $ (7,635) $ 80,014 $ — Corporate debt securities 8,928 — (756) 8,172 — Asset-backed securities 296,222 — (19,349) 276,873 — Agency commercial MBS 110,606 — (18,017) 92,589 — Total debt securities available-for-sale $ 503,404 $ 1 $ (45,757) $ 457,648 $ — Debt securities held-to-maturity: State, municipal, and sovereign debt obligations $ 260,249 $ 46 $ (24,940) $ 235,355 $ (60) Corporate debt securities 56,893 380 (3,778) 53,495 (1,059) Mortgage-backed securities: Agency residential 849,985 795 (83,586) 767,194 — Agency commercial 32,127 23 (1,189) 30,961 — Non-agency commercial 25,310 — (2,274) 23,036 (9) Total mortgage-backed securities 907,422 818 (87,049) 821,191 (9) Total debt securities held-to-maturity $ 1,224,564 $ 1,244 $ (115,767) $ 1,110,041 $ (1,128) Total debt securities $ 1,727,968 $ 1,245 $ (161,524) $ 1,567,689 $ (1,128) There was no allowance for securities credit losses on debt securities available-for-sale at September 30, 2023 or December 31, 2022. The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Allowance for securities credit losses Beginning balance $ (964) $ (1,293) $ (1,128) $ (1,467) Provision for credit loss benefit 32 59 196 233 Total ending allowance balance $ (932) $ (1,234) $ (932) $ (1,234) 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. Credit ratings of BBB- or Baa3 or higher are considered investment grade. Where multiple ratings are available, the Company considers the lowest rating when determining the allowance for securities credit losses. Under this approach, the amortized cost of debt securities held-to-maturity at September 30, 2023, aggregated by credit quality indicator, are as follows (in thousands): Investment Grade Non-Investment Grade/Non-rated Total As of September 30, 2023 State and municipal debt obligations $ 228,779 $ — $ 228,779 Corporate debt securities 57,050 14,380 71,430 Agency commercial MBS 83,323 — 83,323 Non-agency commercial MBS 20,760 — 20,760 Total debt securities held-to-maturity $ 389,912 $ 14,380 $ 404,292 During 2021 and 2013, the Bank transferred $12.7 million and $536.0 million, respectively, of previously designated available-for-sale securities to a held-to-maturity designation at estimated fair value. The securities transferred had an unrealized net loss of $209,000 and $13.3 million at the time of transfer in 2021 and 2013, respectively, 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 debt securities held-to-maturity at September 30, 2023 and December 31, 2022 was as follows (in thousands): September 30, December 31, 2023 2022 Amortized cost $ 1,192,166 $ 1,224,564 Allowance for securities credit losses (932) (1,128) Net loss on date of transfer from available-for-sale (13,556) (13,556) Accretion of net unrealized loss on securities reclassified as held-to-maturity 11,661 11,258 Carrying value $ 1,189,339 $ 1,221,138 There were $0 realized gains/losses and $697,000 of realized losses on sale of debt securities available-for-sale for the three and nine months ended September 30, 2023, respectively, as compared to realized gains of $131,000 and $23,000 for the corresponding prior year periods, respectively. These realized gains/losses on debt securities are presented within Other under Total other income of the Consolidated Statements of Income. The amortized cost and estimated fair value of debt securities at September 30, 2023 by contractual maturity are shown below (in thousands): September 30, 2023 Amortized Estimated Less than one year $ 39,412 $ 38,958 Due after one year through five years 183,574 166,592 Due after five years through ten years 205,459 192,786 Due after ten years 249,955 232,941 $ 678,400 $ 631,277 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 September 30, 2023, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $80.4 million, $63.9 million, and $296.2 million, respectively, and an estimated fair value of $73.6 million, $59.6 million, and $290.4 million, respectively, were callable prior to the maturity date. 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 and unrealized losses for debt securities available-for-sale and held-to-maturity at September 30, 2023 and December 31, 2022, segregated by the duration of the unrealized losses, are as follows (in thousands): Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized At September 30, 2023 Debt securities available-for-sale: U.S. government and agency obligations $ 1,060 $ (11) $ 63,020 $ (7,804) $ 64,080 $ (7,815) Corporate debt securities 6,519 (565) 2,433 (567) 8,952 (1,132) Asset-backed securities — — 290,444 (5,768) 290,444 (5,768) Agency commercial MBS — — 89,732 (20,095) 89,732 (20,095) Total debt securities available-for-sale 7,579 (576) 445,629 (34,234) 453,208 (34,810) Debt securities held-to-maturity: State and municipal debt obligations 9,266 (397) 187,876 (26,308) 197,142 (26,705) Corporate debt securities 38,247 (3,634) 22,687 (2,472) 60,934 (6,106) MBS: Agency residential 222,066 (13,368) 461,630 (90,497) 683,696 (103,865) Agency commercial 52,836 (5,460) 16,431 (932) 69,267 (6,392) Non-agency commercial — — 18,582 (2,178) 18,582 (2,178) Total MBS 274,902 (18,828) 496,643 (93,607) 771,545 (112,435) Total debt securities held-to-maturity 322,415 (22,859) 707,206 (122,387) 1,029,621 (145,246) Total debt securities $ 329,994 $ (23,435) $ 1,152,835 $ (156,621) $ 1,482,829 $ (180,056) At December 31, 2022 Debt securities available-for-sale: U.S. government and agency obligations $ 27,232 $ (450) $ 52,782 $ (7,185) $ 80,014 $ (7,635) Corporate debt securities 4,735 (193) 3,437 (563) 8,172 (756) Asset-backed securities 143,392 (9,179) 133,481 (10,170) 276,873 (19,349) Agency commercial MBS 8,782 (1,675) 83,807 (16,342) 92,589 (18,017) Total debt securities available-for-sale 184,141 (11,497) 273,507 (34,260) 457,648 (45,757) Debt securities held-to-maturity: State, municipal, and sovereign debt obligations 133,492 (11,952) 97,135 (12,988) 230,627 (24,940) Corporate debt securities 11,783 (598) 36,152 (3,180) 47,935 (3,778) MBS: Agency residential 297,296 (12,404) 397,036 (71,182) 694,332 (83,586) Agency commercial 25,936 (1,150) 2,062 (39) 27,998 (1,189) Non-agency commercial 16,839 (1,621) 6,198 (653) 23,037 (2,274) Total MBS 340,071 (15,175) 405,296 (71,874) 745,367 (87,049) Total debt securities held-to-maturity 485,346 (27,725) 538,583 (88,042) 1,023,929 (115,767) Total debt securities $ 669,487 $ (39,222) $ 812,090 $ (122,302) $ 1,481,577 $ (161,524) The Company concluded that debt securities were not impaired at September 30, 2023 based on consideration of several factors. 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 change in net unrealized losses were primarily due to changes in the general credit and interest rate environment and not credit quality. Historically, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside securities sales. Equity Investments At September 30, 2023 and December 31, 2022, the Company held equity investments of $97.9 million and $102.0 million, respectively. The equity investments are primarily comprised of select financial services institutions’ preferred stocks, investments in funds and other financial institutions. The realized and unrealized gains or losses on equity securities for the three and nine months ended September 30, 2023 and 2022 are shown in the table below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net gain (loss) on equity investments $ 1,452 $ 3,362 $ (5,908) $ (7,502) Less: Net (losses) gains recognized on equity investments sold — — (5,462) 1,351 Unrealized gains (losses) recognized on equity investments still held $ 1,452 $ 3,362 $ (446) $ (8,853) |
Loans Receivable, Net
Loans Receivable, Net | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans Receivable, Net | Loans Receivable, Net Loans receivable, net at September 30, 2023 and December 31, 2022 consisted of the following (in thousands): September 30, December 31, 2023 2022 Commercial: Commercial real estate – investor $ 5,334,279 $ 5,171,952 Commercial real estate – owner occupied 957,216 997,367 Commercial and industrial 652,119 622,372 Total commercial 6,943,614 6,791,691 Consumer: Residential real estate 2,928,259 2,861,991 Home equity loans and lines and other consumer (“other consumer”) 251,698 264,372 Total consumer 3,179,957 3,126,363 Total loans receivable 10,123,571 9,918,054 Deferred origination costs, net of fees 8,462 7,488 Allowance for loan credit losses (63,877) (56,824) Total loans receivable, net $ 10,068,156 $ 9,868,718 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. The Company evaluates risk ratings on an ongoing basis. The Company uses the following definitions for risk ratings: Pass : Loans classified as Pass are well protected by the paying capacity and net worth of the borrower. Special Mention : Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date. Substandard : Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the collection or the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following tables summarize total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands): 2023 2022 2021 2020 2019 2018 and prior Revolving lines of credit Total September 30, 2023 Commercial real estate - investor Pass $ 126,967 $ 1,165,509 $ 1,314,561 $ 527,205 $ 497,540 $ 972,537 $ 658,558 $ 5,262,877 Special Mention — — 2,437 187 60 17,893 1,388 21,965 Substandard — — — 3,750 11,907 32,980 800 49,437 Total commercial real estate - investor 126,967 1,165,509 1,316,998 531,142 509,507 1,023,410 660,746 5,334,279 Commercial real estate - owner occupied Pass 54,658 115,573 109,260 65,866 106,434 461,324 13,543 926,658 Special Mention — — — — — 4,542 457 4,999 Substandard — 3,278 — — 1,986 20,205 90 25,559 Total commercial real estate - owner occupied 54,658 118,851 109,260 65,866 108,420 486,071 14,090 957,216 Commercial and industrial Pass 98,193 58,728 20,374 10,087 9,193 53,478 379,799 629,852 Special Mention — 654 197 — — 197 14,625 15,673 Substandard — — — — 902 1,438 4,254 6,594 Total commercial and industrial 98,193 59,382 20,571 10,087 10,095 55,113 398,678 652,119 Residential real estate (1) Pass 182,209 926,600 571,434 397,584 225,997 618,805 — 2,922,629 Special Mention — 1,332 187 205 123 456 — 2,303 Substandard 62 — — 258 487 2,520 — 3,327 Total residential real estate 182,271 927,932 571,621 398,047 226,607 621,781 — 2,928,259 Other consumer (1) Pass 26,676 20,640 21,656 13,339 13,142 124,084 30,481 250,018 Substandard — — — 1 6 1,673 — 1,680 Total other consumer 26,676 20,640 21,656 13,340 13,148 125,757 30,481 251,698 Total loans $ 488,765 $ 2,292,314 $ 2,040,106 $ 1,018,482 $ 867,777 $ 2,312,132 $ 1,103,995 $ 10,123,571 (1) For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. 2022 2021 2020 2019 2018 2017 and prior Revolving lines of credit Total December 31, 2022 Commercial real estate - investor Pass $ 1,144,763 $ 1,339,289 $ 555,937 $ 524,428 $ 220,999 $ 881,344 $ 450,787 $ 5,117,547 Special Mention — 2,508 192 17,094 — 12,818 2,188 34,800 Substandard — — — 893 — 18,180 532 19,605 Total commercial real estate - investor 1,144,763 1,341,797 556,129 542,415 220,999 912,342 453,507 5,171,952 Commercial real estate - owner occupied Pass 119,912 110,440 59,952 115,385 88,204 458,708 14,932 967,533 Special Mention — — — — 748 5,679 — 6,427 Substandard — — 3,750 2,037 4,817 12,803 — 23,407 Total commercial real estate - owner occupied 119,912 110,440 63,702 117,422 93,769 477,190 14,932 997,367 Commercial and industrial Pass 60,078 23,724 14,072 17,175 10,992 47,370 443,211 616,622 Special Mention — 7 — — — 250 1,680 1,937 Substandard — 21 76 1,083 301 2,212 120 3,813 Total commercial and industrial 60,078 23,752 14,148 18,258 11,293 49,832 445,011 622,372 Residential real estate (1) Pass 919,364 591,745 419,712 247,387 99,945 577,392 — 2,855,545 Special Mention — 193 1,514 204 59 2,407 — 4,377 Substandard — — — 656 286 1,127 — 2,069 Total residential real estate 919,364 591,938 421,226 248,247 100,290 580,926 — 2,861,991 Other consumer (1) Pass 24,069 24,111 15,440 15,471 39,057 108,818 34,851 261,817 Special Mention — — — 75 — 598 — 673 Substandard — — — 157 18 1,707 — 1,882 Total other consumer 24,069 24,111 15,440 15,703 39,075 111,123 34,851 264,372 Total loans $ 2,268,186 $ 2,092,038 $ 1,070,645 $ 942,045 $ 465,426 $ 2,131,413 $ 948,301 $ 9,918,054 (1) For residential real estate and other 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 three and nine months ended September 30, 2023 and 2022 was as follows (in thousands): Commercial Commercial Commercial Residential Other Consumer Total For the three months ended September 30, 2023 Allowance for credit losses on loans Balance at beginning of period $ 24,481 $ 4,342 $ 5,945 $ 26,152 $ 871 $ 61,791 Provision (benefit) for credit losses 9,602 119 604 95 (63) 10,357 Charge-offs (1) (8,350) — — — (29) (8,379) Recoveries 2 3 13 17 73 108 Balance at end of period $ 25,735 $ 4,464 $ 6,562 $ 26,264 $ 852 $ 63,877 For the three months ended September 30, 2022 Allowance for credit losses on loans Balance at beginning of period $ 22,608 $ 5,021 $ 5,240 $ 18,196 $ 996 $ 52,061 Provision (benefit) for credit losses 82 (1,047) 554 1,618 1 1,208 Charge-offs (3) — — — (2) (5) Recoveries 3 48 69 44 93 257 Balance at end of period $ 22,690 $ 4,022 $ 5,863 $ 19,858 $ 1,088 $ 53,521 For the nine months ended September 30, 2023 Allowance for credit losses on loans Balance at beginning of period $ 21,070 $ 4,423 $ 5,695 $ 24,530 $ 1,106 $ 56,824 Provision (benefit) for credit losses 13,010 38 974 1,700 (322) 15,400 Charge-offs (1) (8,350) (6) (128) — (111) (8,595) Recoveries 5 9 21 34 179 248 Balance at end of period $ 25,735 $ 4,464 $ 6,562 $ 26,264 $ 852 $ 63,877 For the nine months ended September 30, 2022 Allowance for credit losses on loans Balance at beginning of period $ 25,504 $ 5,884 $ 5,039 $ 11,155 $ 1,268 $ 48,850 (Benefit) provision for credit losses (2,865) (2,003) 720 8,612 (128) 4,336 Charge-offs (3) (18) — (56) (358) (435) Recoveries 54 159 104 147 306 770 Balance at end of period $ 22,690 $ 4,022 $ 5,863 $ 19,858 $ 1,088 $ 53,521 (1) Gross charge-offs for the three and nine months ended September 30, 2023 of $8.4 million and $8.6 million, respectively, primarily related to one commercial relationship, which was originated in 2019 and had a partial charge-off of $8.4 million in the third quarter of 2023 to its estimated realizable value of $8.8 million. The remainder of the charge-offs were related to loans that were originated in and prior to 2018. 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 and, therefore, is classified as non-accruing. At September 30, 2023 and December 31, 2022, the Company had collateral dependent loans with an amortized cost balance as follows: commercial real estate - investor of $15.1 million and $4.6 million, respectively, commercial real estate - owner occupied of $240,000 and $4.0 million, respectively, and commercial and industrial of $1.1 million and $160,000, respectively. 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 $2.7 million and $858,000 at September 30, 2023 and December 31, 2022, respectively. The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of September 30, 2023 and December 31, 2022 (in thousands): September 30, December 31, 2023 2022 Commercial real estate – investor (1) $ 20,723 $ 10,483 Commercial real estate – owner occupied 240 4,025 Commercial and industrial 1,120 331 Residential real estate 5,624 5,969 Other consumer 2,391 2,457 $ 30,098 $ 23,265 (1) At September 30, 2023, non-performing loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the three months ended September 30, 2023. At September 30, 2023 and December 31, 2022, 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 September 30, 2023, there were no loans that were past due 90 days or greater and still accruing interest. At December 31, 2022, there was one Paycheck Protection Program (“PPP”) loan for $14,000 that was past due 90 days or greater and still accrued interest, which subsequently became current. Per Small Business Administration (“SBA”) guidelines, the SBA will pay accrued interest through the deferral period up to a maximum of 120 days past due. Given these servicing guidelines, PPP loans that are 90 to 120 days past due will be reported as accruing loans. The following table presents the aging of the recorded investment in past due loans as of September 30, 2023 and December 31, 2022 by loan portfolio segment (in thousands): 30-59 60-89 90 Days or Greater Past Due Total Loans Not Total September 30, 2023 Commercial real estate – investor (1) $ 999 $ 11,266 $ 3,791 $ 16,056 $ 5,318,223 $ 5,334,279 Commercial real estate – owner occupied 799 1,529 35 2,363 954,853 957,216 Commercial and industrial 1,773 803 145 2,721 649,398 652,119 Residential real estate — 2,303 3,327 5,630 2,922,629 2,928,259 Other consumer 1,119 — 1,680 2,799 248,899 251,698 $ 4,690 $ 15,901 $ 8,978 $ 29,569 $ 10,094,002 $ 10,123,571 December 31, 2022 Commercial real estate – investor $ 217 $ 875 $ 3,700 $ 4,792 $ 5,167,160 $ 5,171,952 Commercial real estate – owner occupied 143 80 3,750 3,973 993,394 997,367 Commercial and industrial 159 47 180 386 621,986 622,372 Residential real estate 7,003 4,377 2,069 13,449 2,848,542 2,861,991 Other consumer 573 673 1,882 3,128 261,244 264,372 $ 8,095 $ 6,052 $ 11,581 $ 25,728 $ 9,892,326 $ 9,918,054 (1) At September 30, 2023, 60-89 days past due loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the three months ended September 30, 2023. The Company adopted Accounting Standards Update (“ASU”) 2022-02 on January 1, 2023. Since adoption, the Company has modified certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. At September 30, 2023, loans with modifications to borrowers experiencing financial difficulty totaled $1.1 million related to term extensions and interest rate reductions, which included residential real estate loans of $723,000 and other consumer loans of $410,000. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Of the $1.1 million loans with modifications to borrowers experiencing financial difficulty, $994,000 were current and one residential loan of $140,000 had a payment default during the three and nine months ended September 30, 2023. Prior to the adoption of ASU 2022-02, the Company classified certain loans as troubled debt restructuring (“TDR”) loans when credit terms to a borrower in financial difficulty were modified in accordance with ASC 310-40. Since adoption of this ASU, the Company has ceased to recognize or measure for new TDRs but those existing at December 31, 2022 remain until settled. At September 30, 2023 and December 31, 2022, TDR loans totaled $13.2 million and $13.9 million, respectively. At September 30, 2023 and December 31, 2022, there were $5.8 million and $6.4 million, respectively, of TDR loans included in the non-accrual loan totals. At September 30, 2023 and December 31, 2022, the Company had $354,000 and $590,000, respectively, of specific reserve allocated to one loan that was classified as a TDR loan. Non-accrual loans which become TDR loans are generally returned to accrual status after six months of performance. In addition to the TDR loans included in non-accrual loans, the Company also has TDR loans classified as accruing loans, which totaled $7.4 million and $7.5 million at September 30, 2023 and December 31, 2022, respectively. The following table presents information about TDR loans which occurred during the three and nine months ended September 30, 2022 (dollars in thousands): Number of Loans Pre-modification Post-modification Three months ended September 30, 2022 Troubled debt restructurings: Other consumer 3 $ 114 $ 124 Nine months ended September 30, 2022 Troubled debt restructurings: Commercial and industrial 1 65 65 Other consumer 6 1,105 1,233 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Deposits | Deposits The major types of deposits at September 30, 2023 and December 31, 2022 were as follows (in thousands): Type of Account September 30, December 31, 2023 2022 Non-interest-bearing $ 1,827,381 $ 2,101,308 Interest-bearing checking 3,708,874 3,829,683 Money market deposit 860,025 714,386 Savings 1,484,000 1,487,809 Time deposits 2,653,649 1,542,020 Total deposits $ 10,533,929 $ 9,675,206 Included in time deposits at September 30, 2023 and December 31, 2022 was $381.4 million and $117.7 million, respectively, of deposits of $250,000 or more. Time deposits also include brokered deposits of $995.5 million and $873.4 million at September 30, 2023 and December 31, 2022, respectively. |
Borrowed Funds
Borrowed Funds | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds at September 30, 2023 and December 31, 2022 were as follows (in thousands): September 30, December 31, 2023 2022 FHLB advances $ 606,056 $ 1,211,166 Securities sold under agreements to repurchase with customers 82,981 69,097 Other borrowings 196,183 195,403 Total borrowed funds $ 885,220 $ 1,475,666 The Company had no FHLB overnight advances and no borrowings from the Federal Reserve Bank (“FRB”) Discount Window or Bank Term Funding Program at September 30, 2023 and December 31, 2022. Pledged assets The following table presents the assets pledged to secure borrowings, borrowing capacity, repurchase agreements, letters of credit, and for other purposes required by law at carrying value (in thousands): Loans Debt securities Total September 30, 2023 FHLB and FRB $ 7,253,277 $ 997,973 $ 8,251,250 Repurchase agreements — 93,145 93,145 Total pledged assets $ 7,253,277 $ 1,091,118 $ 8,344,395 December 31, 2022 FHLB and FRB $ 6,487,980 $ 830,057 $ 7,318,037 Repurchase agreements — 105,294 105,294 Total pledged assets $ 6,487,980 $ 935,351 $ 7,423,331 The securities pledged, which collateralize the 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 repurchase agreements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or 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 Securities Available-for-Sale Debt securities classified as available-for-sale are reported at fair value. Fair value of U.S. Treasuries are determined using quoted prices in active markets (Level 1). The majority of the other debt securities are determined using inputs other than quoted prices that are based on market observable information (Level 2). Level 2 debt securities are priced through third-party pricing services or security 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 with readily determinable fair value 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) or using inputs other than quoted prices that are based on market observable information (Level 2). Equity investments 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 (measurement alternative). Certain equity investments without readily determinable fair values are measured at net asset value (“NAV”) per share as a practical expedient, which are excluded from the fair value hierarchy levels in the table below. Interest Rate Derivatives The Company’s interest rate swaps and cap contracts are reported at fair value utilizing discounted cash flow models provided by an independent, third-party and observable market data (Level 2). When entering into an interest rate swap or cap contract, the Company is exposed to fair value changes due to interest rate movements, and also the potential nonperformance of the contract counterparty. Loans Individually Measured for Impairment 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 generally based on independent appraisals (Level 3), which may be adjusted by management for qualitative factors, such as economic factors and estimated liquidation expenses. The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2023 and December 31, 2022, 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 September 30, 2023 Items measured on a recurring basis: Debt securities available-for-sale $ 453,208 $ 42,054 $ 411,154 $ — Equity investments 50,945 — 50,945 — Interest rate derivative asset 137,090 — 137,090 — Interest rate derivative liability (138,806) — (138,806) — Items measured on a non-recurring basis: Equity investments (1) (2) 46,963 — — 43,576 Loans measured for impairment based on the fair value of the underlying collateral (3) 19,080 — — 19,080 December 31, 2022 Items measured on a recurring basis: Debt securities available-for-sale $ 457,648 $ — $ 457,648 $ — Equity investments 61,942 430 61,511 — Interest rate derivative asset 113,420 — 113,420 — Interest rate derivative liability (113,473) — (113,473) — Items measured on a non-recurring basis: Equity investments (1) (2) 40,095 — — 37,076 Loans measured for impairment based on the fair value of the underlying collateral (3) 9,635 — — 9,635 (1) As of September 30, 2023 and December 31, 2022, primarily consists of $43.6 million and $37.1 million, respectively, of equity investments measured under the measurement alternative. This included no unrealized gains or losses for the nine months ended September 30, 2023 and $20.0 million of unrealized gains for the year ended December 31, 2022. (2) As of September 30, 2023 and December 31, 2022, equity investments of $47.0 million and $40.1 million, respectively, included $3.4 million and $3.0 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels. (3) Primarily consists of commercial loans, which are collateral dependent. The range may vary but is generally 0% to 8% on the discount for costs to sell and 0% to 10% on appraisal adjustments. The following table reconciles the beginning and ending balances for equity investments 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 Nine Months Ended September 30, 2022 Beginning balance $ 2,718 Transfers out of Level 3 (2,718) Ending balance $ — The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no assets in Level 3 that were recognized at fair value on a recurring basis or transfers into or out of Level 3 for the three and nine months ended September 30, 2023. During the nine months ended September 30, 2022, the Company executed its right to convert $2.7 million of preferred stock into common stock, which resulted in a transfer from Level 3 into Level 1. 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 debt 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 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, Federal Reserve Bank stock, and Atlantic Community Bankers Bank 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 entities. 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, which is based on an exit price notion, was estimated by discounting the future cash flows, net of estimated prepayments, at market discount rates that reflect the credit and interest rate risk inherent in the loan. 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 Customers Fair value approximates the carrying amount as these borrowings are payable on demand and the interest rate adjusts monthly. FHLB Advances and Other Borrowings 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 Company’s significant financial instruments not recorded at fair value as of September 30, 2023 and December 31, 2022 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Level 1 Level 2 Level 3 September 30, 2023 Financial Assets: Cash and due from banks $ 408,882 $ 408,882 $ — $ — Debt securities held-to-maturity 1,189,339 — 1,047,342 — Restricted equity investments 82,484 — — 82,484 Loans receivable, net and loans held-for-sale 10,068,156 — — 9,035,358 Financial Liabilities: Deposits other than time deposits (1) 7,880,280 — 7,880,280 — Time deposits 2,653,649 — 2,626,602 — FHLB advances and other borrowings 802,239 — 770,544 — Securities sold under agreements to repurchase with customers 82,981 82,981 — — December 31, 2022 Financial Assets: Cash and due from banks $ 167,946 $ 167,946 $ — $ — Debt securities held-to-maturity 1,221,138 — 1,097,984 12,057 Restricted equity investments 109,278 — — 109,278 Loans receivable, net and loans held-for-sale 9,869,408 — — 9,103,137 Financial Liabilities: Deposits other than time deposits (1) 8,133,186 — 8,133,186 — Time deposits 1,542,020 — 1,504,601 — FHLB advances and other borrowings 1,406,569 — 1,416,384 — Securities sold under agreements to repurchase with customers 69,097 69,097 — — (1) The estimated fair value of non-maturity deposits does not consider any inherent value and represents the amount payable on demand. However, non-maturity deposits do contain significant inherent value to the Company, particularly when overnight funding costs are greater than the deposit costs. 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 and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company enters into derivative financial instruments which involve, to varying degrees, interest rate 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 derivative financial instruments to accommodate the business needs of its customers as well as to economically hedge the exposure that this creates for the Company. Additionally, the Company enters into certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The Company does not use derivative financial instruments for trading purposes. Customer Derivatives – Interest Rate Swaps and Cap Contracts Derivatives Not Designated as Hedging Instruments 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 Company also enters into interest rate cap contracts that enable commercial loan customers to lock in a cap on a variable-rate commercial loan agreement. This feature prevents the loan from repricing to a level that exceeds the cap contract’s specified interest rate, which serves to hedge the risk from rising interest rates. The Company then enters into an offsetting interest rate cap contract with a third party in order to economically hedge its exposure through the customer agreement. These interest rate swaps and cap contracts with both the customers and third parties are not designated as hedges under ASC Topic 815, Derivatives and Hedging, therefore changes in fair value are reported in earnings. As the interest rate swaps and cap contracts 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 ASC Topic 820, Fair Value Measurements. The Company recognized losses of $2,000 and $2,000 in commercial loan swap income resulting from the fair value adjustment for the three and nine months ended September 30, 2023, respectively, as compared to gains of $19,000 and $56,000 for the corresponding prior year periods. Derivatives Designated as Hedging Instruments During the fourth quarter of 2022, the Company entered into a three-year interest rate swap intended to add stability to its net interest income and to manage its exposure to future interest rate movements associated with a pool of floating rate commercial loans. The swap requires the Company to pay variable-rate amounts indexed to one-month term Secured Overnight Financing Rate (“SOFR”) to the counterparty in exchange for the receipt of fixed-rate amounts at 4.0% from the counterparty. The swap was designated and qualified as a cash flow hedge, under ASC Topic 815, Derivatives and Hedging. The changes in the fair value of cash flow hedges are initially reported in other comprehensive income. Amounts are subsequently reclassified from accumulated other comprehensive income to earnings when the hedged transactions occur, specifically within the same line item as the hedged item (interest income). Therefore, a portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are made or received on the Company’s interest rate swaps. The table below presents the effect on the Company’s accumulated other comprehensive income/loss (“AOCI” or “AOCL”) attributable to the cash flow hedge derivative, net of tax, and the related gains/(losses) reclassified from AOCI into income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2023 AOCL balance at beginning of period, net of tax $ (909) $ (25) Unrealized losses recognized in OCI (622) (1,798) Losses reclassified from AOCI into interest income 246 538 AOCL balance at end of period, net of tax $ (1,285) $ (1,285) During the next twelve months ending September 30, 2024, the Company estimates that an additional $1.4 million will be reclassified as a reduction to interest income. The table below presents the notional amount and fair value of derivatives designated and not designated as hedging instruments, as well as their location on the Consolidated Statements of Financial Condition (in thousands): Notional Fair Value Other assets Other liabilities As of September 30, 2023 Derivatives Not Designated as Hedging Instruments Interest rate swaps and cap contracts $ 1,420,826 $ 137,090 $ 137,111 Derivatives Designated as Cash Flow Hedge Interest rate swap contract 100,000 — 1,695 Total Derivatives $ 1,520,826 $ 137,090 $ 138,806 As of December 31, 2022 Derivatives Not Designated as Hedging Instruments Interest rate swaps and cap contracts $ 1,368,245 $ 113,420 $ 113,440 Derivatives Designated as Cash Flow Hedge Interest rate swap contract 100,000 — 33 Total Derivatives $ 1,468,245 $ 113,420 $ 113,473 Credit Risk-Related Contingent Features The Company is exposed to credit risk in the event of nonperformance by the interest rate derivative counterparty. The Company minimizes this risk by being a party to International Swaps and Derivatives Association agreements with third party broker-dealers that require a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties was $0 and $40,000 at September 30, 2023 and December 31, 2022, respectively. The amount of collateral received from third parties was $142.3 million and $104.5 million at September 30, 2023 and December 31, 2022, respectively. The amount of collateral posted with third parties and received from third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $138.8 million and $113.5 million at September 30, 2023 and December 31, 2022, respectively. The interest rate derivatives which the Company executes with the commercial borrowers are collateralized by the borrowers’ commercial real estate financed by the Company. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, automated teller machine locations and office space with terms extending through 2038. The Company has one existing finance lease, which 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): September 30, December 31, 2023 2022 Lease ROU Assets Classification Operating lease ROU assets Other assets $ 19,610 $ 19,055 Finance lease ROU asset Premises and equipment, net 1,362 1,532 Total lease ROU assets $ 20,972 $ 20,587 Lease Liabilities Operating lease liabilities (1) Other liabilities $ 20,645 $ 20,053 Finance lease liability Other borrowings 1,748 1,934 Total lease liabilities $ 22,393 $ 21,987 (1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $6.3 million and $7.7 million at September 30, 2023 and December 31, 2022, respectively. 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, ASC Topic 842, Leases requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is not readily determinable, the Company generally 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. September 30, December 31, 2023 2022 Weighted-Average Remaining Lease Term Operating leases 6.59 years 6.87 years Finance lease 5.85 years 6.60 years Weighted-Average Discount Rate Operating leases 2.95 % 2.86 % Finance lease 5.63 5.63 The following table represents lease expenses and other lease information (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Lease Expense Operating lease expense $ 1,153 $ 1,159 $ 3,472 $ 3,857 Finance lease expense: Amortization of ROU assets 58 49 170 149 Interest on lease liabilities (1) 25 24 77 76 Total $ 1,236 $ 1,232 $ 3,719 $ 4,082 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,154 $ 955 $ 3,414 $ 3,366 Operating cash flows from finance leases 25 24 77 76 Financing cash flows from finance leases 63 52 186 154 (1) Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income. Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands): Finance Lease Operating Leases For the Year Ending December 31, 2023 $ 88 $ 1,157 2024 350 4,334 2025 350 4,351 2026 350 3,784 2027 350 2,628 Thereafter 559 6,754 Total 2,047 23,008 Less: Imputed interest (299) (2,363) Total lease liabilities $ 1,748 $ 20,645 |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, automated teller machine locations and office space with terms extending through 2038. The Company has one existing finance lease, which 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): September 30, December 31, 2023 2022 Lease ROU Assets Classification Operating lease ROU assets Other assets $ 19,610 $ 19,055 Finance lease ROU asset Premises and equipment, net 1,362 1,532 Total lease ROU assets $ 20,972 $ 20,587 Lease Liabilities Operating lease liabilities (1) Other liabilities $ 20,645 $ 20,053 Finance lease liability Other borrowings 1,748 1,934 Total lease liabilities $ 22,393 $ 21,987 (1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $6.3 million and $7.7 million at September 30, 2023 and December 31, 2022, respectively. 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, ASC Topic 842, Leases requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is not readily determinable, the Company generally 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. September 30, December 31, 2023 2022 Weighted-Average Remaining Lease Term Operating leases 6.59 years 6.87 years Finance lease 5.85 years 6.60 years Weighted-Average Discount Rate Operating leases 2.95 % 2.86 % Finance lease 5.63 5.63 The following table represents lease expenses and other lease information (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Lease Expense Operating lease expense $ 1,153 $ 1,159 $ 3,472 $ 3,857 Finance lease expense: Amortization of ROU assets 58 49 170 149 Interest on lease liabilities (1) 25 24 77 76 Total $ 1,236 $ 1,232 $ 3,719 $ 4,082 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,154 $ 955 $ 3,414 $ 3,366 Operating cash flows from finance leases 25 24 77 76 Financing cash flows from finance leases 63 52 186 154 (1) Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income. Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands): Finance Lease Operating Leases For the Year Ending December 31, 2023 $ 88 $ 1,157 2024 350 4,334 2025 350 4,351 2026 350 3,784 2027 350 2,628 Thereafter 559 6,754 Total 2,047 23,008 Less: Imputed interest (299) (2,363) Total lease liabilities $ 1,748 $ 20,645 |
Variable Interest Entity
Variable Interest Entity | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity The Company accounts for Trident as a variable interest entity (“VIE”) under ASC 810, Consolidation, for which the Company is considered the primary beneficiary (i.e. the party that has a controlling financial interest). In accordance with ASC 810, Consolidation, the Company has consolidated Trident’s assets and liabilities. The summarized financial information for the Company’s consolidated VIE at September 30, 2023 and December 31, 2022 consisted of the following (in thousands): September 30, 2023 December 31, 2022 Cash and cash equivalents $ 26,082 $ 30,062 Other assets 937 941 Total assets 27,019 31,003 Other liabilities 25,237 28,998 Net assets $ 1,782 $ 2,005 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 20,667 | $ 38,611 | $ 76,347 | $ 93,331 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The consolidated financial statements include: the accounts of OceanFirst Financial Corp. (the “Company”); its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc.; the Bank’s direct and indirect wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., OceanFirst Management Corp., OceanFirst Realty Corp., Casaba Real Estate Holdings Corporation, and Country Property Holdings, Inc; and a majority controlling interest in Trident. Certain other subsidiaries were dissolved in 2022 and are included in the consolidated financial statements for previous periods. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Shares Outstanding for Basic and Diluted Earnings Per Share | The following reconciles shares outstanding for basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Weighted average shares outstanding 59,422 59,134 59,388 59,245 Less: Unallocated ESOP shares (243) (363) (272) (393) Unallocated incentive award shares (75) (90) (79) (75) Average basic shares outstanding 59,104 58,681 59,037 58,777 Add: Effect of dilutive securities: Incentive awards 7 120 31 141 Average diluted shares outstanding 59,111 58,801 59,068 58,918 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-Sale and Held-to-Maturity | The amortized cost, estimated fair value, and allowance for securities credit losses of debt securities available-for-sale and held-to-maturity at September 30, 2023 and December 31, 2022 are as follows (in thousands): Amortized Gross Gross Estimated Allowance for Credit Losses At September 30, 2023 Debt securities available-for-sale: U.S. government and agency obligations $ 71,895 $ — $ (7,815) $ 64,080 $ — Corporate debt securities 10,084 — (1,132) 8,952 — Asset-backed securities 296,212 — (5,768) 290,444 — Agency commercial mortgage-backed securities (“MBS”) 109,827 — (20,095) 89,732 — Total debt securities available-for-sale $ 488,018 $ — $ (34,810) $ 453,208 $ — Debt securities held-to-maturity: State and municipal debt obligations $ 228,779 $ 30 $ (26,705) $ 202,104 $ (41) Corporate debt securities 71,430 373 (6,106) 65,697 (868) Mortgage-backed securities: Agency residential 787,875 3 (103,865) 684,013 — Agency commercial 83,322 16 (6,392) 76,946 (16) Non-agency commercial 20,760 — (2,178) 18,582 (7) Total mortgage-backed securities 891,957 19 (112,435) 779,541 (23) Total debt securities held-to-maturity $ 1,192,166 $ 422 $ (145,246) $ 1,047,342 $ (932) Total debt securities $ 1,680,184 $ 422 $ (180,056) $ 1,500,550 $ (932) At December 31, 2022 Debt securities available-for-sale: U.S. government and agency obligations $ 87,648 $ 1 $ (7,635) $ 80,014 $ — Corporate debt securities 8,928 — (756) 8,172 — Asset-backed securities 296,222 — (19,349) 276,873 — Agency commercial MBS 110,606 — (18,017) 92,589 — Total debt securities available-for-sale $ 503,404 $ 1 $ (45,757) $ 457,648 $ — Debt securities held-to-maturity: State, municipal, and sovereign debt obligations $ 260,249 $ 46 $ (24,940) $ 235,355 $ (60) Corporate debt securities 56,893 380 (3,778) 53,495 (1,059) Mortgage-backed securities: Agency residential 849,985 795 (83,586) 767,194 — Agency commercial 32,127 23 (1,189) 30,961 — Non-agency commercial 25,310 — (2,274) 23,036 (9) Total mortgage-backed securities 907,422 818 (87,049) 821,191 (9) Total debt securities held-to-maturity $ 1,224,564 $ 1,244 $ (115,767) $ 1,110,041 $ (1,128) Total debt securities $ 1,727,968 $ 1,245 $ (161,524) $ 1,567,689 $ (1,128) |
Schedule of Allowance for Credit Losses for Debt Securities Held-to-Maturity | The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Allowance for securities credit losses Beginning balance $ (964) $ (1,293) $ (1,128) $ (1,467) Provision for credit loss benefit 32 59 196 233 Total ending allowance balance $ (932) $ (1,234) $ (932) $ (1,234) |
Schedule of Amortized Cost of Debt Securities Held-to-Maturity, Aggregated by Credit Quality Indicator | Under this approach, the amortized cost of debt securities held-to-maturity at September 30, 2023, aggregated by credit quality indicator, are as follows (in thousands): Investment Grade Non-Investment Grade/Non-rated Total As of September 30, 2023 State and municipal debt obligations $ 228,779 $ — $ 228,779 Corporate debt securities 57,050 14,380 71,430 Agency commercial MBS 83,323 — 83,323 Non-agency commercial MBS 20,760 — 20,760 Total debt securities held-to-maturity $ 389,912 $ 14,380 $ 404,292 |
Schedule of Carrying Value of Debt Securities Held-to-Maturity and Equity Investment | The carrying value of debt securities held-to-maturity at September 30, 2023 and December 31, 2022 was as follows (in thousands): September 30, December 31, 2023 2022 Amortized cost $ 1,192,166 $ 1,224,564 Allowance for securities credit losses (932) (1,128) Net loss on date of transfer from available-for-sale (13,556) (13,556) Accretion of net unrealized loss on securities reclassified as held-to-maturity 11,661 11,258 Carrying value $ 1,189,339 $ 1,221,138 The realized and unrealized gains or losses on equity securities for the three and nine months ended September 30, 2023 and 2022 are shown in the table below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net gain (loss) on equity investments $ 1,452 $ 3,362 $ (5,908) $ (7,502) Less: Net (losses) gains recognized on equity investments sold — — (5,462) 1,351 Unrealized gains (losses) recognized on equity investments still held $ 1,452 $ 3,362 $ (446) $ (8,853) |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of debt securities at September 30, 2023 by contractual maturity are shown below (in thousands): September 30, 2023 Amortized Estimated Less than one year $ 39,412 $ 38,958 Due after one year through five years 183,574 166,592 Due after five years through ten years 205,459 192,786 Due after ten years 249,955 232,941 $ 678,400 $ 631,277 |
Schedule of Estimated Fair Value and Unrealized Losses for Debt Securities Available-for-Sale and Held-to-Maturity | The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at September 30, 2023 and December 31, 2022, segregated by the duration of the unrealized losses, are as follows (in thousands): Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized At September 30, 2023 Debt securities available-for-sale: U.S. government and agency obligations $ 1,060 $ (11) $ 63,020 $ (7,804) $ 64,080 $ (7,815) Corporate debt securities 6,519 (565) 2,433 (567) 8,952 (1,132) Asset-backed securities — — 290,444 (5,768) 290,444 (5,768) Agency commercial MBS — — 89,732 (20,095) 89,732 (20,095) Total debt securities available-for-sale 7,579 (576) 445,629 (34,234) 453,208 (34,810) Debt securities held-to-maturity: State and municipal debt obligations 9,266 (397) 187,876 (26,308) 197,142 (26,705) Corporate debt securities 38,247 (3,634) 22,687 (2,472) 60,934 (6,106) MBS: Agency residential 222,066 (13,368) 461,630 (90,497) 683,696 (103,865) Agency commercial 52,836 (5,460) 16,431 (932) 69,267 (6,392) Non-agency commercial — — 18,582 (2,178) 18,582 (2,178) Total MBS 274,902 (18,828) 496,643 (93,607) 771,545 (112,435) Total debt securities held-to-maturity 322,415 (22,859) 707,206 (122,387) 1,029,621 (145,246) Total debt securities $ 329,994 $ (23,435) $ 1,152,835 $ (156,621) $ 1,482,829 $ (180,056) At December 31, 2022 Debt securities available-for-sale: U.S. government and agency obligations $ 27,232 $ (450) $ 52,782 $ (7,185) $ 80,014 $ (7,635) Corporate debt securities 4,735 (193) 3,437 (563) 8,172 (756) Asset-backed securities 143,392 (9,179) 133,481 (10,170) 276,873 (19,349) Agency commercial MBS 8,782 (1,675) 83,807 (16,342) 92,589 (18,017) Total debt securities available-for-sale 184,141 (11,497) 273,507 (34,260) 457,648 (45,757) Debt securities held-to-maturity: State, municipal, and sovereign debt obligations 133,492 (11,952) 97,135 (12,988) 230,627 (24,940) Corporate debt securities 11,783 (598) 36,152 (3,180) 47,935 (3,778) MBS: Agency residential 297,296 (12,404) 397,036 (71,182) 694,332 (83,586) Agency commercial 25,936 (1,150) 2,062 (39) 27,998 (1,189) Non-agency commercial 16,839 (1,621) 6,198 (653) 23,037 (2,274) Total MBS 340,071 (15,175) 405,296 (71,874) 745,367 (87,049) Total debt securities held-to-maturity 485,346 (27,725) 538,583 (88,042) 1,023,929 (115,767) Total debt securities $ 669,487 $ (39,222) $ 812,090 $ (122,302) $ 1,481,577 $ (161,524) |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Receivable, Net | Loans receivable, net at September 30, 2023 and December 31, 2022 consisted of the following (in thousands): September 30, December 31, 2023 2022 Commercial: Commercial real estate – investor $ 5,334,279 $ 5,171,952 Commercial real estate – owner occupied 957,216 997,367 Commercial and industrial 652,119 622,372 Total commercial 6,943,614 6,791,691 Consumer: Residential real estate 2,928,259 2,861,991 Home equity loans and lines and other consumer (“other consumer”) 251,698 264,372 Total consumer 3,179,957 3,126,363 Total loans receivable 10,123,571 9,918,054 Deferred origination costs, net of fees 8,462 7,488 Allowance for loan credit losses (63,877) (56,824) Total loans receivable, net $ 10,068,156 $ 9,868,718 |
Schedule of Total Loans by Year of Origination, Internally Assigned Credit Grades and Risk Characteristics | The following tables summarize total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands): 2023 2022 2021 2020 2019 2018 and prior Revolving lines of credit Total September 30, 2023 Commercial real estate - investor Pass $ 126,967 $ 1,165,509 $ 1,314,561 $ 527,205 $ 497,540 $ 972,537 $ 658,558 $ 5,262,877 Special Mention — — 2,437 187 60 17,893 1,388 21,965 Substandard — — — 3,750 11,907 32,980 800 49,437 Total commercial real estate - investor 126,967 1,165,509 1,316,998 531,142 509,507 1,023,410 660,746 5,334,279 Commercial real estate - owner occupied Pass 54,658 115,573 109,260 65,866 106,434 461,324 13,543 926,658 Special Mention — — — — — 4,542 457 4,999 Substandard — 3,278 — — 1,986 20,205 90 25,559 Total commercial real estate - owner occupied 54,658 118,851 109,260 65,866 108,420 486,071 14,090 957,216 Commercial and industrial Pass 98,193 58,728 20,374 10,087 9,193 53,478 379,799 629,852 Special Mention — 654 197 — — 197 14,625 15,673 Substandard — — — — 902 1,438 4,254 6,594 Total commercial and industrial 98,193 59,382 20,571 10,087 10,095 55,113 398,678 652,119 Residential real estate (1) Pass 182,209 926,600 571,434 397,584 225,997 618,805 — 2,922,629 Special Mention — 1,332 187 205 123 456 — 2,303 Substandard 62 — — 258 487 2,520 — 3,327 Total residential real estate 182,271 927,932 571,621 398,047 226,607 621,781 — 2,928,259 Other consumer (1) Pass 26,676 20,640 21,656 13,339 13,142 124,084 30,481 250,018 Substandard — — — 1 6 1,673 — 1,680 Total other consumer 26,676 20,640 21,656 13,340 13,148 125,757 30,481 251,698 Total loans $ 488,765 $ 2,292,314 $ 2,040,106 $ 1,018,482 $ 867,777 $ 2,312,132 $ 1,103,995 $ 10,123,571 (1) For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. 2022 2021 2020 2019 2018 2017 and prior Revolving lines of credit Total December 31, 2022 Commercial real estate - investor Pass $ 1,144,763 $ 1,339,289 $ 555,937 $ 524,428 $ 220,999 $ 881,344 $ 450,787 $ 5,117,547 Special Mention — 2,508 192 17,094 — 12,818 2,188 34,800 Substandard — — — 893 — 18,180 532 19,605 Total commercial real estate - investor 1,144,763 1,341,797 556,129 542,415 220,999 912,342 453,507 5,171,952 Commercial real estate - owner occupied Pass 119,912 110,440 59,952 115,385 88,204 458,708 14,932 967,533 Special Mention — — — — 748 5,679 — 6,427 Substandard — — 3,750 2,037 4,817 12,803 — 23,407 Total commercial real estate - owner occupied 119,912 110,440 63,702 117,422 93,769 477,190 14,932 997,367 Commercial and industrial Pass 60,078 23,724 14,072 17,175 10,992 47,370 443,211 616,622 Special Mention — 7 — — — 250 1,680 1,937 Substandard — 21 76 1,083 301 2,212 120 3,813 Total commercial and industrial 60,078 23,752 14,148 18,258 11,293 49,832 445,011 622,372 Residential real estate (1) Pass 919,364 591,745 419,712 247,387 99,945 577,392 — 2,855,545 Special Mention — 193 1,514 204 59 2,407 — 4,377 Substandard — — — 656 286 1,127 — 2,069 Total residential real estate 919,364 591,938 421,226 248,247 100,290 580,926 — 2,861,991 Other consumer (1) Pass 24,069 24,111 15,440 15,471 39,057 108,818 34,851 261,817 Special Mention — — — 75 — 598 — 673 Substandard — — — 157 18 1,707 — 1,882 Total other consumer 24,069 24,111 15,440 15,703 39,075 111,123 34,851 264,372 Total loans $ 2,268,186 $ 2,092,038 $ 1,070,645 $ 942,045 $ 465,426 $ 2,131,413 $ 948,301 $ 9,918,054 |
Schedule of Analysis of Allowance for Credit Losses on Loans | An analysis of the allowance for credit losses on loans for the three and nine months ended September 30, 2023 and 2022 was as follows (in thousands): Commercial Commercial Commercial Residential Other Consumer Total For the three months ended September 30, 2023 Allowance for credit losses on loans Balance at beginning of period $ 24,481 $ 4,342 $ 5,945 $ 26,152 $ 871 $ 61,791 Provision (benefit) for credit losses 9,602 119 604 95 (63) 10,357 Charge-offs (1) (8,350) — — — (29) (8,379) Recoveries 2 3 13 17 73 108 Balance at end of period $ 25,735 $ 4,464 $ 6,562 $ 26,264 $ 852 $ 63,877 For the three months ended September 30, 2022 Allowance for credit losses on loans Balance at beginning of period $ 22,608 $ 5,021 $ 5,240 $ 18,196 $ 996 $ 52,061 Provision (benefit) for credit losses 82 (1,047) 554 1,618 1 1,208 Charge-offs (3) — — — (2) (5) Recoveries 3 48 69 44 93 257 Balance at end of period $ 22,690 $ 4,022 $ 5,863 $ 19,858 $ 1,088 $ 53,521 For the nine months ended September 30, 2023 Allowance for credit losses on loans Balance at beginning of period $ 21,070 $ 4,423 $ 5,695 $ 24,530 $ 1,106 $ 56,824 Provision (benefit) for credit losses 13,010 38 974 1,700 (322) 15,400 Charge-offs (1) (8,350) (6) (128) — (111) (8,595) Recoveries 5 9 21 34 179 248 Balance at end of period $ 25,735 $ 4,464 $ 6,562 $ 26,264 $ 852 $ 63,877 For the nine months ended September 30, 2022 Allowance for credit losses on loans Balance at beginning of period $ 25,504 $ 5,884 $ 5,039 $ 11,155 $ 1,268 $ 48,850 (Benefit) provision for credit losses (2,865) (2,003) 720 8,612 (128) 4,336 Charge-offs (3) (18) — (56) (358) (435) Recoveries 54 159 104 147 306 770 Balance at end of period $ 22,690 $ 4,022 $ 5,863 $ 19,858 $ 1,088 $ 53,521 (1) Gross charge-offs for the three and nine months ended September 30, 2023 of $8.4 million and $8.6 million, respectively, primarily related to one commercial relationship, which was originated in 2019 and had a partial charge-off of $8.4 million in the third quarter of 2023 to its estimated realizable value of $8.8 million. The remainder of the charge-offs were related to loans that were originated in and prior to 2018. |
Schedule of Recorded Investment in Non-Accrual Loans, by Loan Portfolio Segment | The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of September 30, 2023 and December 31, 2022 (in thousands): September 30, December 31, 2023 2022 Commercial real estate – investor (1) $ 20,723 $ 10,483 Commercial real estate – owner occupied 240 4,025 Commercial and industrial 1,120 331 Residential real estate 5,624 5,969 Other consumer 2,391 2,457 $ 30,098 $ 23,265 (1) At September 30, 2023, non-performing loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the three months ended September 30, 2023. |
Schedule of Aging of Recorded Investment in Past Due Loans by Loan Portfolio Segment | The following table presents the aging of the recorded investment in past due loans as of September 30, 2023 and December 31, 2022 by loan portfolio segment (in thousands): 30-59 60-89 90 Days or Greater Past Due Total Loans Not Total September 30, 2023 Commercial real estate – investor (1) $ 999 $ 11,266 $ 3,791 $ 16,056 $ 5,318,223 $ 5,334,279 Commercial real estate – owner occupied 799 1,529 35 2,363 954,853 957,216 Commercial and industrial 1,773 803 145 2,721 649,398 652,119 Residential real estate — 2,303 3,327 5,630 2,922,629 2,928,259 Other consumer 1,119 — 1,680 2,799 248,899 251,698 $ 4,690 $ 15,901 $ 8,978 $ 29,569 $ 10,094,002 $ 10,123,571 December 31, 2022 Commercial real estate – investor $ 217 $ 875 $ 3,700 $ 4,792 $ 5,167,160 $ 5,171,952 Commercial real estate – owner occupied 143 80 3,750 3,973 993,394 997,367 Commercial and industrial 159 47 180 386 621,986 622,372 Residential real estate 7,003 4,377 2,069 13,449 2,848,542 2,861,991 Other consumer 573 673 1,882 3,128 261,244 264,372 $ 8,095 $ 6,052 $ 11,581 $ 25,728 $ 9,892,326 $ 9,918,054 (1) At September 30, 2023, 60-89 days past due loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the three months ended September 30, 2023. |
Schedule of Troubled Debt Restructuring Loans | The following table presents information about TDR loans which occurred during the three and nine months ended September 30, 2022 (dollars in thousands): Number of Loans Pre-modification Post-modification Three months ended September 30, 2022 Troubled debt restructurings: Other consumer 3 $ 114 $ 124 Nine months ended September 30, 2022 Troubled debt restructurings: Commercial and industrial 1 65 65 Other consumer 6 1,105 1,233 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of Major Types of Deposits | The major types of deposits at September 30, 2023 and December 31, 2022 were as follows (in thousands): Type of Account September 30, December 31, 2023 2022 Non-interest-bearing $ 1,827,381 $ 2,101,308 Interest-bearing checking 3,708,874 3,829,683 Money market deposit 860,025 714,386 Savings 1,484,000 1,487,809 Time deposits 2,653,649 1,542,020 Total deposits $ 10,533,929 $ 9,675,206 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at September 30, 2023 and December 31, 2022 were as follows (in thousands): September 30, December 31, 2023 2022 FHLB advances $ 606,056 $ 1,211,166 Securities sold under agreements to repurchase with customers 82,981 69,097 Other borrowings 196,183 195,403 Total borrowed funds $ 885,220 $ 1,475,666 |
Schedule of Pledged Assets | The following table presents the assets pledged to secure borrowings, borrowing capacity, repurchase agreements, letters of credit, and for other purposes required by law at carrying value (in thousands): Loans Debt securities Total September 30, 2023 FHLB and FRB $ 7,253,277 $ 997,973 $ 8,251,250 Repurchase agreements — 93,145 93,145 Total pledged assets $ 7,253,277 $ 1,091,118 $ 8,344,395 December 31, 2022 FHLB and FRB $ 6,487,980 $ 830,057 $ 7,318,037 Repurchase agreements — 105,294 105,294 Total pledged assets $ 6,487,980 $ 935,351 $ 7,423,331 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Financial Liabilities Measured at Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2023 and December 31, 2022, 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 September 30, 2023 Items measured on a recurring basis: Debt securities available-for-sale $ 453,208 $ 42,054 $ 411,154 $ — Equity investments 50,945 — 50,945 — Interest rate derivative asset 137,090 — 137,090 — Interest rate derivative liability (138,806) — (138,806) — Items measured on a non-recurring basis: Equity investments (1) (2) 46,963 — — 43,576 Loans measured for impairment based on the fair value of the underlying collateral (3) 19,080 — — 19,080 December 31, 2022 Items measured on a recurring basis: Debt securities available-for-sale $ 457,648 $ — $ 457,648 $ — Equity investments 61,942 430 61,511 — Interest rate derivative asset 113,420 — 113,420 — Interest rate derivative liability (113,473) — (113,473) — Items measured on a non-recurring basis: Equity investments (1) (2) 40,095 — — 37,076 Loans measured for impairment based on the fair value of the underlying collateral (3) 9,635 — — 9,635 (1) As of September 30, 2023 and December 31, 2022, primarily consists of $43.6 million and $37.1 million, respectively, of equity investments measured under the measurement alternative. This included no unrealized gains or losses for the nine months ended September 30, 2023 and $20.0 million of unrealized gains for the year ended December 31, 2022. (2) As of September 30, 2023 and December 31, 2022, equity investments of $47.0 million and $40.1 million, respectively, included $3.4 million and $3.0 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels. (3) Primarily consists of commercial loans, which are collateral dependent. The range may vary but is generally 0% to 8% on the discount for costs to sell and 0% to 10% on appraisal adjustments. |
Schedule of Equity Investments Recognized at Fair Value on a Recurring Basis | The following table reconciles the beginning and ending balances for equity investments 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 Nine Months Ended September 30, 2022 Beginning balance $ 2,718 Transfers out of Level 3 (2,718) Ending balance $ — |
Schedule of Book Value and Estimated Fair Value of Significant Financial Instruments Not Recorded at Fair Value | The book value and estimated fair value of the Company’s significant financial instruments not recorded at fair value as of September 30, 2023 and December 31, 2022 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Level 1 Level 2 Level 3 September 30, 2023 Financial Assets: Cash and due from banks $ 408,882 $ 408,882 $ — $ — Debt securities held-to-maturity 1,189,339 — 1,047,342 — Restricted equity investments 82,484 — — 82,484 Loans receivable, net and loans held-for-sale 10,068,156 — — 9,035,358 Financial Liabilities: Deposits other than time deposits (1) 7,880,280 — 7,880,280 — Time deposits 2,653,649 — 2,626,602 — FHLB advances and other borrowings 802,239 — 770,544 — Securities sold under agreements to repurchase with customers 82,981 82,981 — — December 31, 2022 Financial Assets: Cash and due from banks $ 167,946 $ 167,946 $ — $ — Debt securities held-to-maturity 1,221,138 — 1,097,984 12,057 Restricted equity investments 109,278 — — 109,278 Loans receivable, net and loans held-for-sale 9,869,408 — — 9,103,137 Financial Liabilities: Deposits other than time deposits (1) 8,133,186 — 8,133,186 — Time deposits 1,542,020 — 1,504,601 — FHLB advances and other borrowings 1,406,569 — 1,416,384 — Securities sold under agreements to repurchase with customers 69,097 69,097 — — (1) The estimated fair value of non-maturity deposits does not consider any inherent value and represents the amount payable on demand. However, non-maturity deposits do contain significant inherent value to the Company, particularly when overnight funding costs are greater than the deposit costs. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Accumulated Other Comprehensive Income/Loss Attributable to Cash Flow Hedge Derivative | The table below presents the effect on the Company’s accumulated other comprehensive income/loss (“AOCI” or “AOCL”) attributable to the cash flow hedge derivative, net of tax, and the related gains/(losses) reclassified from AOCI into income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2023 AOCL balance at beginning of period, net of tax $ (909) $ (25) Unrealized losses recognized in OCI (622) (1,798) Losses reclassified from AOCI into interest income 246 538 AOCL balance at end of period, net of tax $ (1,285) $ (1,285) |
Schedule of Notional Amount and Fair Value of Derivatives Designated and Not Designated as Hedging Instruments | The table below presents the notional amount and fair value of derivatives designated and not designated as hedging instruments, as well as their location on the Consolidated Statements of Financial Condition (in thousands): Notional Fair Value Other assets Other liabilities As of September 30, 2023 Derivatives Not Designated as Hedging Instruments Interest rate swaps and cap contracts $ 1,420,826 $ 137,090 $ 137,111 Derivatives Designated as Cash Flow Hedge Interest rate swap contract 100,000 — 1,695 Total Derivatives $ 1,520,826 $ 137,090 $ 138,806 As of December 31, 2022 Derivatives Not Designated as Hedging Instruments Interest rate swaps and cap contracts $ 1,368,245 $ 113,420 $ 113,440 Derivatives Designated as Cash Flow Hedge Interest rate swap contract 100,000 — 33 Total Derivatives $ 1,468,245 $ 113,420 $ 113,473 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Lease Liabilities | The following table represents the classification of the Company’s ROU assets and lease liabilities on the Consolidated Statements of Financial Condition (in thousands): September 30, December 31, 2023 2022 Lease ROU Assets Classification Operating lease ROU assets Other assets $ 19,610 $ 19,055 Finance lease ROU asset Premises and equipment, net 1,362 1,532 Total lease ROU assets $ 20,972 $ 20,587 Lease Liabilities Operating lease liabilities (1) Other liabilities $ 20,645 $ 20,053 Finance lease liability Other borrowings 1,748 1,934 Total lease liabilities $ 22,393 $ 21,987 (1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $6.3 million and $7.7 million at September 30, 2023 and December 31, 2022, respectively. |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate | September 30, December 31, 2023 2022 Weighted-Average Remaining Lease Term Operating leases 6.59 years 6.87 years Finance lease 5.85 years 6.60 years Weighted-Average Discount Rate Operating leases 2.95 % 2.86 % Finance lease 5.63 5.63 |
Schedule of Lease Expenses and Other Lease Information | The following table represents lease expenses and other lease information (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Lease Expense Operating lease expense $ 1,153 $ 1,159 $ 3,472 $ 3,857 Finance lease expense: Amortization of ROU assets 58 49 170 149 Interest on lease liabilities (1) 25 24 77 76 Total $ 1,236 $ 1,232 $ 3,719 $ 4,082 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,154 $ 955 $ 3,414 $ 3,366 Operating cash flows from finance leases 25 24 77 76 Financing cash flows from finance leases 63 52 186 154 (1) Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income. |
Schedule of Future Minimum Payments for Finance Leases | Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands): Finance Lease Operating Leases For the Year Ending December 31, 2023 $ 88 $ 1,157 2024 350 4,334 2025 350 4,351 2026 350 3,784 2027 350 2,628 Thereafter 559 6,754 Total 2,047 23,008 Less: Imputed interest (299) (2,363) Total lease liabilities $ 1,748 $ 20,645 |
Schedule of Future Minimum Payments for Operating Leases | Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands): Finance Lease Operating Leases For the Year Ending December 31, 2023 $ 88 $ 1,157 2024 350 4,334 2025 350 4,351 2026 350 3,784 2027 350 2,628 Thereafter 559 6,754 Total 2,047 23,008 Less: Imputed interest (299) (2,363) Total lease liabilities $ 1,748 $ 20,645 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Financial Information of Consolidated Variable Interest Entities | The summarized financial information for the Company’s consolidated VIE at September 30, 2023 and December 31, 2022 consisted of the following (in thousands): September 30, 2023 December 31, 2022 Cash and cash equivalents $ 26,082 $ 30,062 Other assets 937 941 Total assets 27,019 31,003 Other liabilities 25,237 28,998 Net assets $ 1,782 $ 2,005 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Reconciliation of Shares Outstanding for Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding (in shares) | 59,422 | 59,134 | 59,388 | 59,245 |
Less: Unallocated ESOP shares (in shares) | (243) | (363) | (272) | (393) |
Unallocated incentive award shares (in shares) | (75) | (90) | (79) | (75) |
Average basic shares outstanding (in shares) | 59,104 | 58,681 | 59,037 | 58,777 |
Add: Effect of dilutive securities: | ||||
Incentive awards (in shares) | 7 | 120 | 31 | 141 |
Average diluted shares outstanding (in shares) | 59,111 | 58,801 | 59,068 | 58,918 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive stock options excluded from earnings per share calculations (in shares) | 1,961 | 1,552 | 1,525 | 1,552 |
Securities - Schedule of Debt S
Securities - Schedule of Debt Securities, Available-for-Sale and Held-to-Maturity (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Securities Financing Transaction [Line Items] | ||||||
Available-for-sale, amortized cost | $ 488,018,000 | $ 503,404,000 | ||||
Available-for-sale, gross unrealized gains | 0 | 1,000 | ||||
Available-for-sale, gross unrealized losses | (34,810,000) | (45,757,000) | ||||
Available-for-sale, fair value | 453,208,000 | 457,648,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Amortized Cost | 1,192,166,000 | 1,224,564,000 | ||||
Held-to-maturity, gross unrealized gains | 422,000 | 1,244,000 | ||||
Held-to-maturity, gross unrealized losses | (145,246,000) | (115,767,000) | ||||
Debt securities held-to-maturity | 1,047,342,000 | 1,110,041,000 | ||||
Allowance for Credit Losses | (932,000) | $ (964,000) | (1,128,000) | $ (1,234,000) | $ (1,293,000) | $ (1,467,000) |
Total, amortized cost | 1,680,184,000 | 1,727,968,000 | ||||
Total, gross unrealized gains | 422,000 | 1,245,000 | ||||
Total, gross unrealized losses | (180,056,000) | (161,524,000) | ||||
Total, estimated fair value | 1,500,550,000 | 1,567,689,000 | ||||
U.S. government and agency obligations | ||||||
Securities Financing Transaction [Line Items] | ||||||
Available-for-sale, amortized cost | 71,895,000 | 87,648,000 | ||||
Available-for-sale, gross unrealized gains | 0 | 1,000 | ||||
Available-for-sale, gross unrealized losses | (7,815,000) | (7,635,000) | ||||
Available-for-sale, fair value | 64,080,000 | 80,014,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Corporate debt securities | ||||||
Securities Financing Transaction [Line Items] | ||||||
Available-for-sale, amortized cost | 10,084,000 | 8,928,000 | ||||
Available-for-sale, gross unrealized gains | 0 | 0 | ||||
Available-for-sale, gross unrealized losses | (1,132,000) | (756,000) | ||||
Available-for-sale, fair value | 8,952,000 | 8,172,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Amortized Cost | 71,430,000 | 56,893,000 | ||||
Held-to-maturity, gross unrealized gains | 373,000 | 380,000 | ||||
Held-to-maturity, gross unrealized losses | (6,106,000) | (3,778,000) | ||||
Debt securities held-to-maturity | 65,697,000 | 53,495,000 | ||||
Allowance for Credit Losses | (868,000) | (1,059,000) | ||||
Asset-backed securities | ||||||
Securities Financing Transaction [Line Items] | ||||||
Available-for-sale, amortized cost | 296,212,000 | 296,222,000 | ||||
Available-for-sale, gross unrealized gains | 0 | 0 | ||||
Available-for-sale, gross unrealized losses | (5,768,000) | (19,349,000) | ||||
Available-for-sale, fair value | 290,444,000 | 276,873,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Agency residential | ||||||
Securities Financing Transaction [Line Items] | ||||||
Amortized Cost | 787,875,000 | 849,985,000 | ||||
Held-to-maturity, gross unrealized gains | 3,000 | 795,000 | ||||
Held-to-maturity, gross unrealized losses | (103,865,000) | (83,586,000) | ||||
Debt securities held-to-maturity | 684,013,000 | 767,194,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Agency commercial | ||||||
Securities Financing Transaction [Line Items] | ||||||
Available-for-sale, amortized cost | 109,827,000 | 110,606,000 | ||||
Available-for-sale, gross unrealized gains | 0 | 0 | ||||
Available-for-sale, gross unrealized losses | (20,095,000) | (18,017,000) | ||||
Available-for-sale, fair value | 89,732,000 | 92,589,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Amortized Cost | 83,322,000 | 32,127,000 | ||||
Held-to-maturity, gross unrealized gains | 16,000 | 23,000 | ||||
Held-to-maturity, gross unrealized losses | (6,392,000) | (1,189,000) | ||||
Debt securities held-to-maturity | 76,946,000 | 30,961,000 | ||||
Allowance for Credit Losses | (16,000) | 0 | ||||
State, municipal, and sovereign debt obligations | ||||||
Securities Financing Transaction [Line Items] | ||||||
Amortized Cost | 228,779,000 | 260,249,000 | ||||
Held-to-maturity, gross unrealized gains | 30,000 | 46,000 | ||||
Held-to-maturity, gross unrealized losses | (26,705,000) | (24,940,000) | ||||
Debt securities held-to-maturity | 202,104,000 | 235,355,000 | ||||
Allowance for Credit Losses | (41,000) | (60,000) | ||||
Non-agency commercial | ||||||
Securities Financing Transaction [Line Items] | ||||||
Amortized Cost | 20,760,000 | 25,310,000 | ||||
Held-to-maturity, gross unrealized gains | 0 | 0 | ||||
Held-to-maturity, gross unrealized losses | (2,178,000) | (2,274,000) | ||||
Debt securities held-to-maturity | 18,582,000 | 23,036,000 | ||||
Allowance for Credit Losses | (7,000) | (9,000) | ||||
Total mortgage-backed securities | ||||||
Securities Financing Transaction [Line Items] | ||||||
Amortized Cost | 891,957,000 | 907,422,000 | ||||
Held-to-maturity, gross unrealized gains | 19,000 | 818,000 | ||||
Held-to-maturity, gross unrealized losses | (112,435,000) | (87,049,000) | ||||
Debt securities held-to-maturity | 779,541,000 | 821,191,000 | ||||
Allowance for Credit Losses | $ (23,000) | $ (9,000) |
Securities - Schedule of Allowa
Securities - Schedule of Allowance for Credit Losses for Debt Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for securities credit losses | ||||
Beginning balance | $ (964) | $ (1,293) | $ (1,128) | $ (1,467) |
Provision for credit loss benefit | 32 | 59 | 196 | 233 |
Total ending allowance balance | $ (932) | $ (1,234) | $ (932) | $ (1,234) |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost of Debt Securities Held-to-Maturity, Aggregated by Credit Quality Indicator (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Securities Financing Transaction [Line Items] | |
Carrying value | $ 404,292 |
Investment Grade | |
Securities Financing Transaction [Line Items] | |
Carrying value | 389,912 |
Non-Investment Grade/Non-rated | |
Securities Financing Transaction [Line Items] | |
Carrying value | 14,380 |
State and municipal debt obligations | |
Securities Financing Transaction [Line Items] | |
Carrying value | 228,779 |
State and municipal debt obligations | Investment Grade | |
Securities Financing Transaction [Line Items] | |
Carrying value | 228,779 |
State and municipal debt obligations | Non-Investment Grade/Non-rated | |
Securities Financing Transaction [Line Items] | |
Carrying value | 0 |
Corporate debt securities | |
Securities Financing Transaction [Line Items] | |
Carrying value | 71,430 |
Corporate debt securities | Investment Grade | |
Securities Financing Transaction [Line Items] | |
Carrying value | 57,050 |
Corporate debt securities | Non-Investment Grade/Non-rated | |
Securities Financing Transaction [Line Items] | |
Carrying value | 14,380 |
Agency commercial | |
Securities Financing Transaction [Line Items] | |
Carrying value | 83,323 |
Agency commercial | Investment Grade | |
Securities Financing Transaction [Line Items] | |
Carrying value | 83,323 |
Agency commercial | Non-Investment Grade/Non-rated | |
Securities Financing Transaction [Line Items] | |
Carrying value | 0 |
Non-agency commercial MBS | |
Securities Financing Transaction [Line Items] | |
Carrying value | 20,760 |
Non-agency commercial MBS | Investment Grade | |
Securities Financing Transaction [Line Items] | |
Carrying value | 20,760 |
Non-agency commercial MBS | Non-Investment Grade/Non-rated | |
Securities Financing Transaction [Line Items] | |
Carrying value | $ 0 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2013 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||||||
Available-for-sale securities transferred to held-to-maturity securities | $ 12,700 | $ 536,000 | |||||
Unrealized net loss | $ 209 | $ 13,300 | |||||
Realized gains (losses) | $ 0 | $ 131 | $ (697) | $ 23 | |||
Equity investments | 97,908 | 97,908 | $ 102,037 | ||||
Corporate debt securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Amortized cost | 80,400 | 80,400 | |||||
Fair value | 73,600 | 73,600 | |||||
State, municipal, and sovereign debt obligations | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Amortized cost | 63,900 | 63,900 | |||||
Fair value | 59,600 | 59,600 | |||||
Asset-backed securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Amortized cost | 296,200 | 296,200 | |||||
Fair value | $ 290,400 | $ 290,400 |
Securities - Schedule of Carryi
Securities - Schedule of Carrying Value of Debt Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||||
Amortized cost | $ 1,192,166 | $ 1,224,564 | ||||
Allowance for securities credit losses | (932) | (1,128) | $ (964) | $ (1,234) | $ (1,293) | $ (1,467) |
Net loss on date of transfer from available-for-sale | (13,556) | (13,556) | ||||
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 11,661 | 11,258 | ||||
Carrying value | $ 1,189,339 | $ 1,221,138 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Amortized Cost | |
Less than one year | $ 39,412 |
Due after one year through five years | 183,574 |
Due after five years through ten years | 205,459 |
Due after ten years | 249,955 |
Total amortized cost | 678,400 |
Estimated Fair Value | |
Less than one year | 38,958 |
Due after one year through five years | 166,592 |
Due after five years through ten years | 192,786 |
Due after ten years | 232,941 |
Total estimated fair value | $ 631,277 |
Securities - Schedule of Estima
Securities - Schedule of Estimated Fair Value and Unrealized Losses for Debt Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less than 12 months, Estimated Fair Value | $ 7,579 | $ 184,141 |
Available-for-sale, Less than 12 months, Unrealized Losses | (576) | (11,497) |
Available-for-sale, 12 months or Longer, Estimated Fair Value | 445,629 | 273,507 |
Available-for-sale, 12 months or longer, Unrealized Losses | (34,234) | (34,260) |
Available-for-sale, Total, Estimated Fair Value | 453,208 | 457,648 |
Available-for-sale, Total, Unrealized Losses | (34,810) | (45,757) |
Held-to-maturity, Less than 12 months, Estimated Fair Value | 322,415 | 485,346 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (22,859) | (27,725) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 707,206 | 538,583 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (122,387) | (88,042) |
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1 | 1,029,621 | 1,023,929 |
Held-to-maturity, total, unrealized losses | (145,246) | (115,767) |
Total securities, Less than 12 months, Estimated Fair Value | 329,994 | 669,487 |
Total securities, Less than 12 months, Unrealized Losses | (23,435) | (39,222) |
Total securities, 12 months or longer, Estimated Fair Value | 1,152,835 | 812,090 |
Total securities, 12 months or longer, Unrealized Losses | (156,621) | (122,302) |
Total securities, Estimated Fair Value | 1,482,829 | 1,481,577 |
Total securities, Unrealized Losses | (180,056) | (161,524) |
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 Value | 1,060 | 27,232 |
Available-for-sale, Less than 12 months, Unrealized Losses | (11) | (450) |
Available-for-sale, 12 months or Longer, Estimated Fair Value | 63,020 | 52,782 |
Available-for-sale, 12 months or longer, Unrealized Losses | (7,804) | (7,185) |
Available-for-sale, Total, Estimated Fair Value | 64,080 | 80,014 |
Available-for-sale, Total, Unrealized Losses | (7,815) | (7,635) |
Corporate debt securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, total, unrealized losses | (6,106) | (3,778) |
Corporate debt securities | Investment securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less than 12 months, Estimated Fair Value | 6,519 | 4,735 |
Available-for-sale, Less than 12 months, Unrealized Losses | (565) | (193) |
Available-for-sale, 12 months or Longer, Estimated Fair Value | 2,433 | 3,437 |
Available-for-sale, 12 months or longer, Unrealized Losses | (567) | (563) |
Available-for-sale, Total, Estimated Fair Value | 8,952 | 8,172 |
Available-for-sale, Total, Unrealized Losses | (1,132) | (756) |
Held-to-maturity, Less than 12 months, Estimated Fair Value | 38,247 | 11,783 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (3,634) | (598) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 22,687 | 36,152 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (2,472) | (3,180) |
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1 | 60,934 | 47,935 |
Held-to-maturity, total, unrealized losses | (6,106) | (3,778) |
Asset-backed securities | Investment securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less than 12 months, Estimated Fair Value | 0 | 143,392 |
Available-for-sale, Less than 12 months, Unrealized Losses | 0 | (9,179) |
Available-for-sale, 12 months or Longer, Estimated Fair Value | 290,444 | 133,481 |
Available-for-sale, 12 months or longer, Unrealized Losses | (5,768) | (10,170) |
Available-for-sale, Total, Estimated Fair Value | 290,444 | 276,873 |
Available-for-sale, Total, Unrealized Losses | (5,768) | (19,349) |
Mortgage-backed securities: | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 274,902 | 340,071 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (18,828) | (15,175) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 496,643 | 405,296 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (93,607) | (71,874) |
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1 | 771,545 | 745,367 |
Held-to-maturity, total, unrealized losses | (112,435) | (87,049) |
Mortgage-backed securities: | Investment securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less than 12 months, Estimated Fair Value | 0 | 8,782 |
Available-for-sale, Less than 12 months, Unrealized Losses | 0 | (1,675) |
Available-for-sale, 12 months or Longer, Estimated Fair Value | 89,732 | 83,807 |
Available-for-sale, 12 months or longer, Unrealized Losses | (20,095) | (16,342) |
Available-for-sale, Total, Estimated Fair Value | 89,732 | 92,589 |
Available-for-sale, Total, Unrealized Losses | (20,095) | (18,017) |
Mortgage-backed securities: | Agency residential | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 222,066 | 297,296 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (13,368) | (12,404) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 461,630 | 397,036 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (90,497) | (71,182) |
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1 | 683,696 | 694,332 |
Held-to-maturity, total, unrealized losses | (103,865) | (83,586) |
Mortgage-backed securities: | Agency commercial | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 52,836 | 25,936 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (5,460) | (1,150) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 16,431 | 2,062 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (932) | (39) |
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1 | 69,267 | 27,998 |
Held-to-maturity, total, unrealized losses | (6,392) | (1,189) |
Mortgage-backed securities: | Non-agency commercial | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 0 | 16,839 |
Held-to-maturity, Less than 12 months, Unrealized Losses | 0 | (1,621) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 18,582 | 6,198 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (2,178) | (653) |
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1 | 18,582 | 23,037 |
Held-to-maturity, total, unrealized losses | (2,178) | (2,274) |
State, municipal, and sovereign debt obligations | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, total, unrealized losses | (26,705) | (24,940) |
State, municipal, and sovereign debt 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 Value | 9,266 | 133,492 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (397) | (11,952) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 187,876 | 97,135 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (26,308) | (12,988) |
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1 | 197,142 | 230,627 |
Held-to-maturity, total, unrealized losses | $ (26,705) | $ (24,940) |
Securities - Schedule of Equity
Securities - Schedule of Equity Securities Realized Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gain (loss) on equity investments | $ 1,452 | $ 3,362 | $ (5,908) | $ (7,502) |
Less: Net (losses) gains recognized on equity investments sold | 0 | 0 | (5,462) | 1,351 |
Unrealized gains (losses) recognized on equity investments still held | $ 1,452 | $ 3,362 | $ (446) | $ (8,853) |
Loans Receivable, Net - Schedul
Loans Receivable, Net - Schedule of Loans Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans receivable | $ 10,123,571 | $ 9,918,054 | ||||
Deferred origination costs, net of fees | 8,462 | 7,488 | ||||
Allowance for loan credit losses | (63,877) | $ (61,791) | (56,824) | $ (53,521) | $ (52,061) | $ (48,850) |
Total loans receivable, net | 10,068,156 | 9,868,718 | ||||
Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans receivable | 6,943,614 | 6,791,691 | ||||
Commercial | Commercial real estate – investor | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans receivable | 5,334,279 | 5,171,952 | ||||
Commercial | Commercial real estate – owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans receivable | 957,216 | 997,367 | ||||
Commercial | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans receivable | 652,119 | 622,372 | ||||
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans receivable | 3,179,957 | 3,126,363 | ||||
Allowance for loan credit losses | (852) | $ (871) | (1,106) | $ (1,088) | $ (996) | $ (1,268) |
Consumer | Residential real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans receivable | 2,928,259 | 2,861,991 | ||||
Consumer | Home equity loans and lines and other consumer (“other consumer”) | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans receivable | $ 251,698 | $ 264,372 |
Loans Receivable, Net - Sched_2
Loans Receivable, Net - Schedule of Total Loans by Year of Origination, Internally Assigned Credit Grades and Risk Characteristics (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | $ 488,765 | $ 2,268,186 |
Year two | 2,292,314 | 2,092,038 |
Year three | 2,040,106 | 1,070,645 |
Year four | 1,018,482 | 942,045 |
Year five | 867,777 | 465,426 |
Year six and prior | 2,312,132 | 2,131,413 |
Revolving lines of credit | 1,103,995 | 948,301 |
Total | 10,123,571 | 9,918,054 |
Commercial real estate – investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 126,967 | 1,144,763 |
Year two | 1,165,509 | 1,341,797 |
Year three | 1,316,998 | 556,129 |
Year four | 531,142 | 542,415 |
Year five | 509,507 | 220,999 |
Year six and prior | 1,023,410 | 912,342 |
Revolving lines of credit | 660,746 | 453,507 |
Total | 5,334,279 | 5,171,952 |
Commercial real estate – investor | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 126,967 | 1,144,763 |
Year two | 1,165,509 | 1,339,289 |
Year three | 1,314,561 | 555,937 |
Year four | 527,205 | 524,428 |
Year five | 497,540 | 220,999 |
Year six and prior | 972,537 | 881,344 |
Revolving lines of credit | 658,558 | 450,787 |
Total | 5,262,877 | 5,117,547 |
Commercial real estate – investor | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year two | 0 | 2,508 |
Year three | 2,437 | 192 |
Year four | 187 | 17,094 |
Year five | 60 | 0 |
Year six and prior | 17,893 | 12,818 |
Revolving lines of credit | 1,388 | 2,188 |
Total | 21,965 | 34,800 |
Commercial real estate – investor | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 3,750 | 893 |
Year five | 11,907 | 0 |
Year six and prior | 32,980 | 18,180 |
Revolving lines of credit | 800 | 532 |
Total | 49,437 | 19,605 |
Commercial real estate – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 54,658 | 119,912 |
Year two | 118,851 | 110,440 |
Year three | 109,260 | 63,702 |
Year four | 65,866 | 117,422 |
Year five | 108,420 | 93,769 |
Year six and prior | 486,071 | 477,190 |
Revolving lines of credit | 14,090 | 14,932 |
Total | 957,216 | 997,367 |
Commercial real estate – owner occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 54,658 | 119,912 |
Year two | 115,573 | 110,440 |
Year three | 109,260 | 59,952 |
Year four | 65,866 | 115,385 |
Year five | 106,434 | 88,204 |
Year six and prior | 461,324 | 458,708 |
Revolving lines of credit | 13,543 | 14,932 |
Total | 926,658 | 967,533 |
Commercial real estate – owner occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 748 |
Year six and prior | 4,542 | 5,679 |
Revolving lines of credit | 457 | 0 |
Total | 4,999 | 6,427 |
Commercial real estate – owner occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year two | 3,278 | 0 |
Year three | 0 | 3,750 |
Year four | 0 | 2,037 |
Year five | 1,986 | 4,817 |
Year six and prior | 20,205 | 12,803 |
Revolving lines of credit | 90 | 0 |
Total | 25,559 | 23,407 |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 98,193 | 60,078 |
Year two | 59,382 | 23,752 |
Year three | 20,571 | 14,148 |
Year four | 10,087 | 18,258 |
Year five | 10,095 | 11,293 |
Year six and prior | 55,113 | 49,832 |
Revolving lines of credit | 398,678 | 445,011 |
Total | 652,119 | 622,372 |
Commercial and Industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 98,193 | 60,078 |
Year two | 58,728 | 23,724 |
Year three | 20,374 | 14,072 |
Year four | 10,087 | 17,175 |
Year five | 9,193 | 10,992 |
Year six and prior | 53,478 | 47,370 |
Revolving lines of credit | 379,799 | 443,211 |
Total | 629,852 | 616,622 |
Commercial and Industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year two | 654 | 7 |
Year three | 197 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Year six and prior | 197 | 250 |
Revolving lines of credit | 14,625 | 1,680 |
Total | 15,673 | 1,937 |
Commercial and Industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year two | 0 | 21 |
Year three | 0 | 76 |
Year four | 0 | 1,083 |
Year five | 902 | 301 |
Year six and prior | 1,438 | 2,212 |
Revolving lines of credit | 4,254 | 120 |
Total | 6,594 | 3,813 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 251,698 | 264,372 |
Consumer | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 182,271 | 919,364 |
Year two | 927,932 | 591,938 |
Year three | 571,621 | 421,226 |
Year four | 398,047 | 248,247 |
Year five | 226,607 | 100,290 |
Year six and prior | 621,781 | 580,926 |
Revolving lines of credit | 0 | 0 |
Total | 2,928,259 | 2,861,991 |
Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 26,676 | 24,069 |
Year two | 20,640 | 24,111 |
Year three | 21,656 | 15,440 |
Year four | 13,340 | 15,703 |
Year five | 13,148 | 39,075 |
Year six and prior | 125,757 | 111,123 |
Revolving lines of credit | 30,481 | 34,851 |
Total | 251,698 | 264,372 |
Consumer | Pass | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 182,209 | 919,364 |
Year two | 926,600 | 591,745 |
Year three | 571,434 | 419,712 |
Year four | 397,584 | 247,387 |
Year five | 225,997 | 99,945 |
Year six and prior | 618,805 | 577,392 |
Revolving lines of credit | 0 | 0 |
Total | 2,922,629 | 2,855,545 |
Consumer | Pass | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 26,676 | 24,069 |
Year two | 20,640 | 24,111 |
Year three | 21,656 | 15,440 |
Year four | 13,339 | 15,471 |
Year five | 13,142 | 39,057 |
Year six and prior | 124,084 | 108,818 |
Revolving lines of credit | 30,481 | 34,851 |
Total | 250,018 | 261,817 |
Consumer | Special Mention | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year two | 1,332 | 193 |
Year three | 187 | 1,514 |
Year four | 205 | 204 |
Year five | 123 | 59 |
Year six and prior | 456 | 2,407 |
Revolving lines of credit | 0 | 0 |
Total | 2,303 | 4,377 |
Consumer | Special Mention | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 75 | |
Year five | 0 | |
Year six and prior | 598 | |
Revolving lines of credit | 0 | |
Total | 673 | |
Consumer | Substandard | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 62 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 258 | 656 |
Year five | 487 | 286 |
Year six and prior | 2,520 | 1,127 |
Revolving lines of credit | 0 | 0 |
Total | 3,327 | 2,069 |
Consumer | Substandard | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 1 | 157 |
Year five | 6 | 18 |
Year six and prior | 1,673 | 1,707 |
Revolving lines of credit | 0 | 0 |
Total | $ 1,680 | $ 1,882 |
Loans Receivable, Net - Sched_3
Loans Receivable, Net - Schedule of Analysis of Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses on loans | ||||
Balance at beginning of period | $ 61,791 | $ 52,061 | $ 56,824 | $ 48,850 |
Provision (benefit) for credit losses | 10,357 | 1,208 | 15,400 | 4,336 |
Charge-offs | (8,379) | (5) | (8,595) | (435) |
Recoveries | 108 | 257 | 248 | 770 |
Balance at end of period | 63,877 | 53,521 | 63,877 | 53,521 |
Charge-off | 8,400 | |||
Commercial Real Estate – Investor | ||||
Allowance for credit losses on loans | ||||
Balance at beginning of period | 24,481 | 22,608 | 21,070 | 25,504 |
Provision (benefit) for credit losses | 9,602 | 82 | 13,010 | (2,865) |
Charge-offs | (8,350) | (3) | (8,350) | (3) |
Recoveries | 2 | 3 | 5 | 54 |
Balance at end of period | 25,735 | 22,690 | 25,735 | 22,690 |
Estimated realizable value | 8,800 | 8,800 | ||
Commercial Real Estate – Owner Occupied | ||||
Allowance for credit losses on loans | ||||
Balance at beginning of period | 4,342 | 5,021 | 4,423 | 5,884 |
Provision (benefit) for credit losses | 119 | (1,047) | 38 | (2,003) |
Charge-offs | 0 | 0 | (6) | (18) |
Recoveries | 3 | 48 | 9 | 159 |
Balance at end of period | 4,464 | 4,022 | 4,464 | 4,022 |
Commercial and Industrial | ||||
Allowance for credit losses on loans | ||||
Balance at beginning of period | 5,945 | 5,240 | 5,695 | 5,039 |
Provision (benefit) for credit losses | 604 | 554 | 974 | 720 |
Charge-offs | 0 | 0 | (128) | 0 |
Recoveries | 13 | 69 | 21 | 104 |
Balance at end of period | 6,562 | 5,863 | 6,562 | 5,863 |
Residential Real Estate | ||||
Allowance for credit losses on loans | ||||
Balance at beginning of period | 26,152 | 18,196 | 24,530 | 11,155 |
Provision (benefit) for credit losses | 95 | 1,618 | 1,700 | 8,612 |
Charge-offs | 0 | 0 | 0 | (56) |
Recoveries | 17 | 44 | 34 | 147 |
Balance at end of period | 26,264 | 19,858 | 26,264 | 19,858 |
Other Consumer | ||||
Allowance for credit losses on loans | ||||
Balance at beginning of period | 871 | 996 | 1,106 | 1,268 |
Provision (benefit) for credit losses | (63) | 1 | (322) | (128) |
Charge-offs | (29) | (2) | (111) | (358) |
Recoveries | 73 | 93 | 179 | 306 |
Balance at end of period | $ 852 | $ 1,088 | $ 852 | $ 1,088 |
Loans Receivable, Net - Narrati
Loans Receivable, Net - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to lend additional funds to borrowers | $ 14,000 | ||||
Number of loans | loan | 1 | ||||
Modified loans | $ 1,100,000 | ||||
Troubled debt restructured loans with accrual interest | $ 7,400,000 | 7,400,000 | $ 7,500,000 | ||
Troubled debt restructured loans | 13,200,000 | 13,200,000 | 13,900,000 | ||
Non-accrual loan total troubled debt restructurings | 5,800,000 | 6,400,000 | |||
Specific reserves to loans accruing troubled debt restructurings | 354,000 | 354,000 | 590,000 | ||
Defaulted TDR loans | 0 | $ 0 | 0 | $ 0 | |
Loans Not Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Troubled debt restructured loans with accrual interest | 994,000 | 994,000 | |||
Paycheck Protection Program | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to lend additional funds to borrowers | 0 | 0 | |||
Commercial real estate – investor | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 15,100,000 | 15,100,000 | 4,600,000 | ||
Commercial real estate – owner occupied | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 240,000 | 240,000 | 4,000,000 | ||
Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 1,100,000 | 1,100,000 | 160,000 | ||
Residential Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 2,700,000 | 2,700,000 | $ 858,000 | ||
Modified loans | 723,000 | ||||
Financing receivable, excluding accrued interest, subsequent default | $ 140,000 | 140,000 | |||
Other Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Modified loans | $ 410,000 |
Loans Receivable, Net - Sched_4
Loans Receivable, Net - Schedule of Recorded Investment in Non-Accrual Loans, by Loan Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | $ 30,098 | $ 23,265 |
Commercial real estate – investor | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | 20,723 | 10,483 |
Estimated realizable value | 8,800 | |
Commercial real estate – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | 240 | 4,025 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | 1,120 | 331 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | 5,624 | 5,969 |
Other Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans with non-accrual of interest | $ 2,391 | $ 2,457 |
Loans Receivable, Net - Sched_5
Loans Receivable, Net - Schedule of Aging of Recorded Investment in Past Due Loans by Loan Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | $ 10,123,571 | $ 9,918,054 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 29,569 | 25,728 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 4,690 | 8,095 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 15,901 | 6,052 |
90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 8,978 | 11,581 |
Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 10,094,002 | 9,892,326 |
Commercial real estate – investor | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 5,334,279 | 5,171,952 |
Estimated realizable value | 8,800 | |
Commercial real estate – investor | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 16,056 | 4,792 |
Commercial real estate – investor | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 999 | 217 |
Commercial real estate – investor | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 11,266 | 875 |
Commercial real estate – investor | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 3,791 | 3,700 |
Commercial real estate – investor | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 5,318,223 | 5,167,160 |
Commercial real estate – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 957,216 | 997,367 |
Commercial real estate – owner occupied | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 2,363 | 3,973 |
Commercial real estate – owner occupied | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 799 | 143 |
Commercial real estate – owner occupied | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 1,529 | 80 |
Commercial real estate – owner occupied | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 35 | 3,750 |
Commercial real estate – owner occupied | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 954,853 | 993,394 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 652,119 | 622,372 |
Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 2,721 | 386 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 1,773 | 159 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 803 | 47 |
Commercial and industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 145 | 180 |
Commercial and industrial | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 649,398 | 621,986 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 2,928,259 | 2,861,991 |
Residential real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 5,630 | 13,449 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 0 | 7,003 |
Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 2,303 | 4,377 |
Residential real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 3,327 | 2,069 |
Residential real estate | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 2,922,629 | 2,848,542 |
Other Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 251,698 | 264,372 |
Other Consumer | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 2,799 | 3,128 |
Other Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 1,119 | 573 |
Other Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 0 | 673 |
Other Consumer | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 1,680 | 1,882 |
Other Consumer | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | $ 248,899 | $ 261,244 |
Loans Receivable, Net - Sched_6
Loans Receivable, Net - Schedule of Troubled Debt Restructuring Loans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) loan | Sep. 30, 2022 USD ($) loan | |
Commercial and Industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | |
Pre-modification Recorded Investment | $ 65 | |
Post-modification Recorded Investment | $ 65 | |
Other Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 3 | 6 |
Pre-modification Recorded Investment | $ 114 | $ 1,105 |
Post-modification Recorded Investment | $ 124 | $ 1,233 |
Deposits - Schedule of Major Ty
Deposits - Schedule of Major Types of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Banking and Thrift, Other Disclosure [Abstract] | ||
Non-interest-bearing | $ 1,827,381 | $ 2,101,308 |
Interest-bearing checking | 3,708,874 | 3,829,683 |
Money market deposit | 860,025 | 714,386 |
Savings | 1,484,000 | 1,487,809 |
Time deposits | 2,653,649 | 1,542,020 |
Total deposits | $ 10,533,929 | $ 9,675,206 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Banking and Thrift, Other Disclosure [Abstract] | ||
Time deposits, $250,000 and over | $ 381.4 | $ 117.7 |
Time deposits also include brokered deposits | $ 995.5 | $ 873.4 |
Borrowed Funds - Schedule of Bo
Borrowed Funds - Schedule of Borrowed Funds (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
FHLB advances | $ 606,056 | $ 1,211,166 |
Securities sold under agreements to repurchase with customers | 82,981 | 69,097 |
Other borrowings | 196,183 | 195,403 |
Total borrowed funds | $ 885,220 | $ 1,475,666 |
Borrowed Funds - Schedule of Pl
Borrowed Funds - Schedule of Pledged Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Loans | $ 10,068,156 | $ 9,868,718 |
Debt securities | 453,208 | 457,648 |
Assets | 13,498,183 | 13,103,896 |
FHLB and FRB | ||
Debt Instrument [Line Items] | ||
Loans | 7,253,277 | 6,487,980 |
Debt securities | 997,973 | 830,057 |
Assets | 8,251,250 | 7,318,037 |
Repurchase agreements | ||
Debt Instrument [Line Items] | ||
Loans | 0 | 0 |
Debt securities | 93,145 | 105,294 |
Assets | 93,145 | 105,294 |
Total pledged assets | ||
Debt Instrument [Line Items] | ||
Loans | 7,253,277 | 6,487,980 |
Debt securities | 1,091,118 | 935,351 |
Assets | $ 8,344,395 | $ 7,423,331 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Financial Liabilities Measured at Fair Value (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) | $ 1,452,000 | $ 3,362,000 | $ (446,000) | $ (8,853,000) | |
Measurement Input, Discount Rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Minimum range of unobservable inputs | 0% | 0% | |||
Maximum range of unobservable inputs | 8% | 8% | |||
Measurement Input, Appraisal Adjustments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Minimum range of unobservable inputs | 0% | 0% | |||
Maximum range of unobservable inputs | 10% | 10% | |||
Fair Value Measured at Net Asset Value Per Share | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investment funds measured at NAV | 3,400,000 | $ 3,400,000 | $ 3,000,000 | ||
Items measured on a recurring basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt securities available-for-sale | 453,208,000 | 453,208,000 | 457,648,000 | ||
Equity investments | 50,945,000 | 50,945,000 | 61,942,000 | ||
Interest rate derivative asset | 137,090,000 | 137,090,000 | 113,420,000 | ||
Interest rate derivative liability | (138,806,000) | (138,806,000) | (113,473,000) | ||
Items measured on a recurring basis | Level 1 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt securities available-for-sale | 42,054,000 | 42,054,000 | 0 | ||
Equity investments | 0 | 0 | 430,000 | ||
Interest rate derivative asset | 0 | 0 | 0 | ||
Interest rate derivative liability | 0 | 0 | 0 | ||
Items measured on a recurring basis | Level 2 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt securities available-for-sale | 411,154,000 | 411,154,000 | 457,648,000 | ||
Equity investments | 50,945,000 | 50,945,000 | 61,511,000 | ||
Interest rate derivative asset | 137,090,000 | 137,090,000 | 113,420,000 | ||
Interest rate derivative liability | (138,806,000) | (138,806,000) | (113,473,000) | ||
Items measured on a recurring basis | Level 3 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt securities available-for-sale | 0 | 0 | 0 | ||
Equity investments | 0 | 0 | 0 | ||
Interest rate derivative asset | 0 | 0 | 0 | ||
Interest rate derivative liability | 0 | 0 | 0 | ||
Items measured on a non-recurring basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments | 46,963,000 | 46,963,000 | 40,095,000 | ||
Items measured on a non-recurring basis | Loans measured for impairment based on the fair value of the underlying collateral | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans measured for impairment based on the fair value of the underlying collateral | 19,080,000 | 19,080,000 | 9,635,000 | ||
Items measured on a non-recurring basis | Level 1 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments | 0 | 0 | 0 | ||
Items measured on a non-recurring basis | Level 1 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans measured for impairment based on the fair value of the underlying collateral | 0 | 0 | 0 | ||
Items measured on a non-recurring basis | Level 2 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments | 0 | 0 | 0 | ||
Items measured on a non-recurring basis | Level 2 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans measured for impairment based on the fair value of the underlying collateral | 0 | 0 | 0 | ||
Items measured on a non-recurring basis | Level 3 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments | 43,576,000 | 43,576,000 | 37,076,000 | ||
Items measured on a non-recurring basis | Level 3 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans measured for impairment based on the fair value of the underlying collateral | 19,080,000 | 19,080,000 | 9,635,000 | ||
Items measured on a non-recurring basis | Fair Value Measured at Net Asset Value Per Share | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity investments | $ 43,600,000 | 43,600,000 | 37,100,000 | ||
Unrealized gain (loss) | $ 0 | $ 20,000,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Equity Investments Recognized at Fair Value on a Recurring Basis (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Debt Securities, Available For Sale, Fair Value [Roll Forward] | |
Transfers out of Level 3 | $ (2,700) |
Fair Value, Recurring | Level 3 Inputs | Investments | |
Debt Securities, Available For Sale, Fair Value [Roll Forward] | |
Beginning balance | 2,718 |
Transfers out of Level 3 | (2,718) |
Ending balance | $ 0 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Book Value and Estimated Fair Value of Significant Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Debt securities held-to-maturity | $ 1,047,342 | $ 1,110,041 |
Restricted equity investments | 82,484 | 109,278 |
Financial Liabilities: | ||
Time deposits | 2,653,649 | 1,542,020 |
Securities sold under agreements to repurchase with customers | 82,981 | 69,097 |
Level 1 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 408,882 | 167,946 |
Debt securities held-to-maturity | 0 | 0 |
Restricted equity investments | 0 | 0 |
Loans receivable, net and loans held-for-sale | 0 | 0 |
Financial Liabilities: | ||
Deposits other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
FHLB advances and other borrowings | 0 | 0 |
Securities sold under agreements to repurchase with customers | 82,981 | 69,097 |
Level 2 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Debt securities held-to-maturity | 1,047,342 | 1,097,984 |
Restricted equity investments | 0 | 0 |
Loans receivable, net and loans held-for-sale | 0 | 0 |
Financial Liabilities: | ||
Deposits other than time deposits | 7,880,280 | 8,133,186 |
Time deposits | 2,626,602 | 1,504,601 |
FHLB advances and other borrowings | 770,544 | 1,416,384 |
Securities sold under agreements to repurchase with customers | 0 | 0 |
Level 3 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Debt securities held-to-maturity | 0 | 12,057 |
Restricted equity investments | 82,484 | 109,278 |
Loans receivable, net and loans held-for-sale | 9,035,358 | 9,103,137 |
Financial Liabilities: | ||
Deposits other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
FHLB advances and other borrowings | 0 | 0 |
Securities sold under agreements to repurchase with customers | 0 | 0 |
Book Value | ||
Financial Assets: | ||
Cash and due from banks | 408,882 | 167,946 |
Debt securities held-to-maturity | 1,189,339 | 1,221,138 |
Restricted equity investments | 82,484 | 109,278 |
Loans receivable, net and loans held-for-sale | 10,068,156 | 9,869,408 |
Financial Liabilities: | ||
Deposits other than time deposits | 7,880,280 | 8,133,186 |
Time deposits | 2,653,649 | 1,542,020 |
FHLB advances and other borrowings | 802,239 | 1,406,569 |
Securities sold under agreements to repurchase with customers | $ 82,981 | $ 69,097 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative [Line Items] | |||||
Reduction to interest income | $ 1,400 | ||||
Collateral already posted, fair value | $ 0 | $ 40 | 0 | ||
Collateral received from third parties | 142,300 | 104,500 | 142,300 | ||
Credit risk derivative liability, fair value | 138,806 | $ 113,473 | 138,806 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Derivative [Line Items] | |||||
Floating rate percentage | 4% | ||||
Interest rate swap contract | |||||
Derivative [Line Items] | |||||
Income (expense) in fair value adjustments | $ (2) | $ 19 | $ (2) | $ 56 | |
Derivative term | 3 years |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Accumulated Other Comprehensive Income/Loss Attributable to Cash Flow Hedge Derivative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,626,283 | $ 1,585,464 |
Ending balance | 1,637,604 | 1,637,604 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (909) | (25) |
Unrealized losses recognized in OCI | (622) | (1,798) |
Losses reclassified from AOCI into interest income | 246 | 538 |
Ending balance | $ (1,285) | $ (1,285) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Schedule of Notional Amount and Fair Value of Derivatives Designated and Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |
Derivative, notional amount | $ 1,520,826 | $ 1,468,245 |
Credit risk derivative asset, fair value | 137,090 | 113,420 |
Credit risk derivative liability, fair value | 138,806 | 113,473 |
Not Designated as Hedging Instrument | Interest rate swaps and cap contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 1,420,826 | 1,368,245 |
Credit risk derivative asset, fair value | 137,090 | 113,420 |
Credit risk derivative liability, fair value | 137,111 | 113,440 |
Designated as Hedging Instrument | Interest rate swap contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 100,000 | 100,000 |
Credit risk derivative asset, fair value | 0 | 0 |
Credit risk derivative liability, fair value | $ 1,695 | $ 33 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 renewalTerm lease | |
Leases [Abstract] | |
Number of finance leases | lease | 1 |
Number of option to renew | renewalTerm | 1 |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease ROU assets | $ 19,610 | $ 19,055 |
Finance lease ROU asset | 1,362 | 1,532 |
Total lease ROU assets | $ 20,972 | $ 20,587 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Premises and equipment, net | Premises and equipment, net |
Lease Liabilities | ||
Operating lease liabilities | $ 20,645 | $ 20,053 |
Finance lease liability | 1,748 | 1,934 |
Total lease liabilities | $ 22,393 | $ 21,987 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Other borrowings | Other borrowings |
Future rent and estimated lease termination liability excluded from operating lease liability | $ 6,300 | $ 7,700 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating leases, weighted-average remaining lease term (years) | 6 years 7 months 2 days | 6 years 10 months 13 days |
Finance lease, weighted-average remaining lease term (years) | 5 years 10 months 6 days | 6 years 7 months 6 days |
Operating leases, weighted-average discount rate (percent) | 2.95% | 2.86% |
Finance lease, weighted-average discount rate (percent) | 5.63% | 5.63% |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expenses and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lease Expense | ||||
Operating lease expense | $ 1,153 | $ 1,159 | $ 3,472 | $ 3,857 |
Finance lease expense: | ||||
Amortization of ROU assets | 58 | 49 | 170 | 149 |
Interest on lease liabilities | 25 | 24 | 77 | 76 |
Total | 1,236 | 1,232 | 3,719 | 4,082 |
Operating cash flows from operating leases | 1,154 | 955 | 3,414 | 3,366 |
Operating cash flows from finance leases | 25 | 24 | 77 | 76 |
Financing cash flows from finance leases | $ 63 | $ 52 | $ 186 | $ 154 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments for Financing and Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finance Lease | ||
2023 | $ 88 | |
2024 | 350 | |
2025 | 350 | |
2026 | 350 | |
2027 | 350 | |
Thereafter | 559 | |
Total | 2,047 | |
Less: Imputed interest | (299) | |
Total lease liabilities | 1,748 | $ 1,934 |
Operating Leases | ||
2023 | 1,157 | |
2024 | 4,334 | |
2025 | 4,351 | |
2026 | 3,784 | |
2027 | 2,628 | |
Thereafter | 6,754 | |
Total | 23,008 | |
Less: Imputed interest | (2,363) | |
Total lease liabilities | $ 20,645 | $ 20,053 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Other assets | $ 240,820 | $ 221,067 |
Total assets | 13,498,183 | 13,103,896 |
Other liabilities | 411,734 | 346,155 |
VIE | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 26,082 | 30,062 |
Other assets | 937 | 941 |
Total assets | 27,019 | 31,003 |
Other liabilities | 25,237 | 28,998 |
Net assets | $ 1,782 | $ 2,005 |