Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 27, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-23695 | ||
Entity Registrant Name | BROOKLINE BANCORP, INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-3402944 | ||
Entity Address, Address Line One | 131 Clarendon Street | ||
Entity Address, City or Town | Boston | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02116 | ||
City Area Code | 617 | ||
Local Phone Number | 425-4600 | ||
Title of 12(b) Security | Common Stock, par value of $0.01 per share | ||
Trading Symbol | BRKL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1 | ||
Entity Common Stock, Shares Outstanding | 88,665,135 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for the 2023 Annual Meeting of Shareholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ending December 31, 2022. | ||
Entity Central Index Key | 0001049782 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Boston, MA |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 191,767 | $ 66,265 |
Short-term investments | 191,192 | 261,472 |
Total cash and cash equivalents | 382,959 | 327,737 |
Investment securities available-for-sale | 656,766 | 720,866 |
Total investment securities | 656,766 | 720,866 |
Total Loans and Leases | 7,644,388 | 7,154,457 |
Allowance for loan and lease losses | (98,482) | (99,084) |
Net loans and leases | 7,545,906 | 7,055,373 |
Restricted equity securities | 71,307 | 28,981 |
Premises and equipment, net of accumulated depreciation of $92,219 and $87,176, respectively | 71,391 | 70,359 |
Right-of-use asset operating leases | 19,484 | 20,508 |
Deferred tax asset | 52,237 | 38,987 |
Goodwill | 160,427 | 160,427 |
Identified intangible assets, net of accumulated amortization of $40,123 and $39,628, respectively | 1,781 | 2,276 |
Other real estate owned ("OREO") and repossessed assets, net | 408 | 718 |
Other assets | 223,170 | 176,390 |
Total assets | 9,185,836 | 8,602,622 |
Non-interest-bearing deposits: | ||
Demand checking accounts | 1,802,518 | 1,888,462 |
Interest-bearing deposits: | ||
NOW accounts | 544,118 | 604,097 |
Savings accounts | 762,271 | 915,804 |
Money market accounts | 2,174,952 | 2,358,306 |
Certificate of deposit accounts | 928,143 | 1,117,695 |
Brokered deposit accounts | 310,144 | 165,542 |
Total interest-bearing deposits | 4,719,628 | 5,161,444 |
Total deposits | 6,522,146 | 7,049,906 |
Borrowed funds: | ||
Advances from the Federal Home Loan Bank of Boston ("FHLBB") | 1,237,823 | 147,907 |
Subordinated debentures and notes | 84,044 | 83,897 |
Other borrowed funds | 110,785 | 125,517 |
Total borrowed funds | 1,432,652 | 357,321 |
Operating lease liabilities | 19,484 | 20,508 |
Mortgagors' escrow accounts | 5,607 | 6,296 |
Reserve for unfunded credits | 20,602 | 14,794 |
Accrued expenses and other liabilities | 193,220 | 158,455 |
Total liabilities | 8,193,711 | 7,607,280 |
Commitments and contingencies (Note 13) | ||
Stockholders' Equity: | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively | 852 | 852 |
Additional paid-in capital | 736,074 | 736,826 |
Retained earnings | 412,019 | 342,639 |
Accumulated other comprehensive (loss) income | (61,947) | (110) |
Treasury stock, at cost; 7,731,445 shares and 7,037,464 shares, respectively | (94,873) | (84,718) |
Unallocated common stock held by ESOP; 0 shares and 24,660 shares, respectively | 0 | (147) |
Total stockholders' equity | 992,125 | 995,342 |
Total liabilities and stockholders' equity | 9,185,836 | 8,602,622 |
Commercial real estate loans | ||
ASSETS | ||
Total Loans and Leases | 4,404,148 | 4,103,040 |
Commercial loans and leases | ||
ASSETS | ||
Total Loans and Leases | 2,016,499 | 1,887,136 |
Consumer loans | ||
ASSETS | ||
Total Loans and Leases | $ 1,223,741 | $ 1,164,281 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Premises and equipment, accumulated depreciation and amortization | $ 92,219 | $ 87,176 |
Identified intangible assets, accumulated amortization | $ 40,123 | $ 39,628 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 85,177,172 | 85,177,172 |
Treasury stock, shares (in shares) | 7,731,445 | 7,037,464 |
Unallocated common stock held by ESOP, shares (in shares) | 0 | 24,660 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income: | |||
Loans and leases | $ 328,769 | $ 297,927 | $ 309,798 |
Debt securities | 13,079 | 12,178 | 13,758 |
Marketable and restricted equity securities | 1,898 | 1,172 | 2,848 |
Short-term investments | 1,440 | 252 | 413 |
Total interest and dividend income | 345,186 | 311,529 | 326,817 |
Interest expense: | |||
Deposits | 29,592 | 20,713 | 48,426 |
Borrowed funds | 15,823 | 8,443 | 18,228 |
Total interest expense | 45,415 | 29,156 | 66,654 |
Net interest income | 299,771 | 282,373 | 260,163 |
Provision (credit) for credit losses | 8,627 | (7,837) | 61,886 |
Net interest income after provision for credit losses | 291,144 | 290,210 | 198,277 |
Non-interest income: | |||
Loan level derivative income, net | 4,246 | 4,680 | 4,268 |
Gain (loss) on investment securities, net | 321 | (38) | 1,970 |
Gain on sales of loans and leases | 4,136 | 3,737 | 1,118 |
Other | 6,517 | 5,937 | 6,190 |
Total non-interest income | 28,347 | 26,989 | 24,644 |
Non-interest expense: | |||
Compensation and employee benefits | 113,487 | 106,786 | 100,985 |
Occupancy | 16,002 | 14,961 | 15,386 |
Equipment and data processing | 20,833 | 18,322 | 17,345 |
Professional services | 5,060 | 4,694 | 5,157 |
FDIC insurance | 3,177 | 2,980 | 4,229 |
Advertising and marketing | 4,980 | 4,167 | 4,126 |
Amortization of identified intangible assets | 494 | 876 | 1,271 |
Merger and acquisition expense | 2,249 | 0 | 0 |
Other | 13,260 | 9,822 | 12,345 |
Total non-interest expense | 179,542 | 162,608 | 160,844 |
Income before provision for income taxes | 139,949 | 154,591 | 62,077 |
Provision for income taxes | 30,205 | 39,151 | 14,442 |
Net income | $ 109,744 | $ 115,440 | $ 47,635 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 1.42 | $ 1.48 | $ 0.60 |
Diluted (in dollars per share) | $ 1.42 | $ 1.48 | $ 0.60 |
Weighted average common shares outstanding during the year: | |||
Basic (in shares) | 77,079,278 | 77,974,851 | 78,951,892 |
Diluted (in shares) | 77,351,834 | 78,243,416 | 79,103,289 |
Dividends declared per common share (in dollars per share) | $ 0.530 | $ 0.490 | $ 0.460 |
Deposit fees | |||
Non-interest income: | |||
Non-interest income, fees | $ 10,919 | $ 10,578 | $ 9,050 |
Loan fees | |||
Non-interest income: | |||
Non-interest income, fees | $ 2,208 | $ 2,095 | $ 2,048 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 109,744 | $ 115,440 | $ 47,635 |
Investment securities available-for-sale: | |||
Unrealized securities holding gains (losses) | (77,303) | (21,542) | 21,683 |
Income tax (expense) benefit | 17,038 | 4,747 | (4,770) |
Net unrealized securities holding gains (losses) before reclassification adjustments, net of taxes | (60,265) | (16,795) | 16,913 |
Less reclassification adjustments for securities gains (losses) included in net income: | |||
Gain (loss) on sales of securities, net | (327) | (38) | 3,245 |
Income tax (expense) benefit | 72 | 8 | (715) |
Net reclassification adjustments for securities gains (losses) included in net income | (255) | (30) | 2,530 |
Net unrealized securities holding gains (losses) | (60,010) | (16,765) | 14,383 |
Cash flow hedges: | |||
Change in fair value of cash flow hedges | (2,899) | 37 | 7 |
Reclassification adjustment for (income) expense recognized in earnings | (168) | (7) | 0 |
Income tax (expense) benefit | 788 | 0 | 0 |
Net change in fair value of cash flow hedges, net of taxes | (2,279) | 30 | 7 |
Postretirement benefits: | |||
Adjustment of accumulated obligation for postretirement benefits | 611 | 183 | (248) |
Income tax (expense) benefit | (159) | (48) | 65 |
Net adjustment of accumulated obligation for postretirement benefits | 452 | 135 | (183) |
Other comprehensive gain (loss), net of taxes | (61,837) | (16,600) | 14,207 |
Comprehensive income | $ 47,907 | $ 98,840 | $ 61,842 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Unallocated Common Stock Held by ESOP |
Balance beginning of period at Dec. 31, 2019 | $ 945,606 | $ (11,523) | $ 852 | $ 736,601 | $ 265,376 | $ (11,523) | $ 2,283 | $ (59,073) | $ (433) |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 47,635 | 47,635 | |||||||
Other comprehensive income (loss) | 14,207 | 14,207 | |||||||
Common stock dividends | (36,396) | (36,396) | |||||||
Restricted stock awards, net of awards surrendered | (375) | (2,105) | 1,730 | ||||||
Compensation under recognition and retention plans | 2,320 | 2,520 | (200) | ||||||
Treasury stock, repurchase shares | (20,000) | (20,000) | |||||||
Common stock held by ESOP committed to be released | 304 | 162 | 142 | ||||||
Balance end of period at Dec. 31, 2020 | 941,778 | 852 | 737,178 | 264,892 | 16,490 | (77,343) | (291) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 115,440 | 115,440 | |||||||
Other comprehensive income (loss) | (16,600) | (16,600) | |||||||
Common stock dividends | (37,463) | (37,463) | |||||||
Restricted stock awards, net of awards surrendered | (588) | (3,192) | 2,604 | ||||||
Compensation under recognition and retention plans | 2,373 | 2,603 | (230) | ||||||
Treasury stock, repurchase shares | (9,979) | (9,979) | |||||||
Common stock held by ESOP committed to be released | 381 | 237 | 144 | ||||||
Balance end of period at Dec. 31, 2021 | 995,342 | 852 | 736,826 | 342,639 | (110) | (84,718) | (147) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 109,744 | 109,744 | |||||||
Other comprehensive income (loss) | (61,837) | (61,837) | |||||||
Common stock dividends | (40,077) | (40,077) | |||||||
Restricted stock awards, net of awards surrendered | (685) | (4,310) | 3,625 | ||||||
Compensation under recognition and retention plans | 3,062 | 3,349 | (287) | ||||||
Treasury stock, repurchase shares | (13,780) | (13,780) | |||||||
Common stock held by ESOP committed to be released | 356 | 209 | 147 | ||||||
Balance end of period at Dec. 31, 2022 | $ 992,125 | $ 852 | $ 736,074 | $ 412,019 | $ (61,947) | $ (94,873) | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in dollars per share) | $ 0.53 | $ 0.48 | $ 0.460 |
Common stock held by ESOP committed to be released, shares (in shares) | 24,660 | 26,454 | 28,434 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 109,744 | $ 115,440 | $ 47,635 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Provision (credit) for credit losses | 8,627 | (7,837) | 61,886 |
Deferred income tax expense (benefit) | 4,357 | 5,833 | (19,102) |
Depreciation of premises and equipment | 6,027 | 5,789 | 5,486 |
Amortization of investment securities premiums and discounts, net | 1,631 | 3,162 | 2,809 |
Amortization of deferred loan and lease origination costs, net | 4,934 | 6,278 | 7,316 |
Amortization of identified intangible assets | 494 | 876 | 1,271 |
Amortization of debt issuance costs | 101 | 100 | 101 |
Amortization (accretion) of acquisition fair value adjustments, net | 41 | (80) | (420) |
(Gain) loss on investment securities, net | (321) | 38 | (1,970) |
Gain on sales of loans and leases | (4,136) | (3,737) | (1,118) |
Gain on sales of OREO | 0 | (2,231) | 0 |
Write-down of OREO and other repossessed assets | 178 | 239 | 1,036 |
Compensation under recognition and retention plans | 3,062 | 2,373 | 2,361 |
ESOP shares committed to be released | 356 | 381 | 304 |
Net change in: | |||
Cash surrender value of bank-owned life insurance | (1,025) | (691) | (1,007) |
Equity securities held-for-trading | 0 | 520 | 1,781 |
Other assets | (48,725) | 74,662 | (77,778) |
Accrued expenses and other liabilities | 35,416 | (67,903) | 81,897 |
Net cash provided from operating activities | 120,761 | 133,212 | 112,488 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities available-for-sale | 78,778 | 39,132 | 141,448 |
Proceeds from maturities, calls, and principal repayments of investment securities available-for-sale | 98,572 | 184,199 | 214,571 |
Purchases of investment securities available-for-sale | (197,632) | (223,073) | (503,495) |
Proceeds from maturities, calls, and principal repayments of investment securities held to maturity | 0 | 0 | 6,302 |
Proceeds from redemption/sales of restricted equity securities | 29,923 | 28,473 | 33,927 |
Purchase of restricted equity securities | (66,153) | (7,668) | (29,895) |
Proceeds from sales of loans and leases held-for-investment, net | 463,937 | 387,529 | 7,370 |
Net increase in loans and leases | (959,561) | (282,304) | (567,284) |
Purchase of premises and equipment, net | (7,388) | (4,789) | (2,909) |
Proceeds from sales of OREO and other repossessed assets | 1,831 | 9,615 | 4,436 |
Net cash (used for) provided from investing activities | (557,693) | 131,114 | (695,529) |
Cash flows from financing activities: | |||
(Decrease) increase in demand checking, NOW, savings and money market accounts, including brokered | (532,446) | 605,121 | 1,018,359 |
Increase (decrease) in certificates of deposit and brokered certificates of deposit | 4,686 | (465,867) | 62,603 |
Proceeds from FHLBB advances | 8,608,609 | 377,682 | 2,987,656 |
Repayment of FHLBB advances | (7,518,693) | (878,624) | (3,097,276) |
(Decrease) increase in other borrowed funds, net | (14,732) | 37,865 | 26,963 |
(Decrease) increase in mortgagors' escrow accounts, net | (689) | 395 | (1,331) |
Repurchases of common stock | (13,780) | (9,979) | (20,000) |
Payment of dividends on common stock | (40,077) | (37,463) | (36,396) |
Payment of income taxes for shares withheld in share based activity | (724) | (636) | (410) |
Net cash provided from (used for) financing activities | 492,154 | (371,506) | 940,168 |
Net increase (decrease) in cash and cash equivalents | 55,222 | (107,180) | 357,127 |
Cash and cash equivalents at beginning of year | 327,737 | 434,917 | 77,790 |
Cash and cash equivalents at end of year | 382,959 | 327,737 | 434,917 |
Cash paid during the year for: | |||
Interest on deposits, borrowed funds and subordinated debt | 41,040 | 30,294 | 68,510 |
Income taxes | 22,554 | 27,797 | 29,392 |
Non-cash investing activities: | |||
Transfer from loans to other repossessed assets | $ 1,699 | $ 1,826 | $ 9,356 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Overview Brookline Bancorp, Inc. (the "Company") is a bank holding company (within the meaning of the Bank Holding Company Act of 1956, as amended) and the parent of Brookline Bank, a Massachusetts-chartered trust company and Bank Rhode Island ("BankRI"), a Rhode Island-chartered financial institution (collectively referred to as the "Banks"). Both Banks are all members of the Federal Reserve System. The Company is also the parent of Brookline Securities Corp. ("BSC") and Clarendon Private, LLC ("Clarendon Private"). The Company's primary business is to provide commercial, business and retail banking services to its corporate, municipal and retail customers through the Banks and its non-bank subsidiaries. Until February 14, 2020 (the "Merger Closing Date"), the Company was also the parent of First Ipswich Bank ("First Ipswich"), a Massachusetts-chartered trust company. Effective upon the Merger Closing Date, First Ipswich was merged with and into Brookline Bank, with Brookline as the surviving institution. Brookline Bank, which includes its wholly-owned subsidiaries Longwood Securities Corp., Eastern Funding LLC ("Eastern Funding") and First Ipswich Insurance Agency, operates 29 full-service banking offices in the greater Boston metropolitan area with two additional lending offices. BankRI, which includes its wholly-owned subsidiaries, Acorn Insurance Agency, BRI Realty Corp., BRI Investment Corp. and its wholly-owned subsidiary, BRI MSC Corp., operates 20 full-service banking offices in the greater Providence, Rhode Island area. Macrolease Corporation ("Macrolease"), previously a subsidiary of BankRI, was merged into Eastern Funding LLC in the second quarter of 2022. Clarendon Private is a registered investment advisor with the Securities and Exchange Commission ("SEC"). Through Clarendon Private, the Company offers a wide range of wealth management services to individuals, families, endowments and foundations to help these clients meet their long-term financial goals. The Company's activities include acceptance of commercial, municipal and retail deposits, origination of mortgage loans on commercial and residential real estate located principally in all New England states, origination of commercial loans and leases to small- and mid-sized businesses, investment in debt and equity securities, and the offering of cash management and wealth and investment advisory services. The Company also provides specialty equipment financing through its subsidiary Eastern Funding, which is based in New York City, New York, and Plainview, New York. The Company and the Banks are supervised, examined and regulated by the Board of Governors of the Federal Reserve System ("FRB"). As a Massachusetts-chartered trust company, Brookline Bank is also subject to regulation under the laws of the Commonwealth of Massachusetts and the jurisdiction of the Massachusetts Division of Banks (the "MDOB"). As a Rhode Island-chartered financial institution, BankRI is subject to regulation under the laws of the State of Rhode Island and the jurisdiction of the Banking Division of the Rhode Island Department of Business Regulation. The Federal Deposit Insurance Corporation ("FDIC") offers insurance coverage on all deposits up to $250,000 per depositor at each of the Banks. As FDIC-insured depository institutions, the Banks are also secondarily subject to supervision, examination and regulation by the FDIC. Clarendon Private is also subject to regulation by the SEC. Basis of Financial Statement Presentation The Company's consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") as set forth by the Financial Accounting Standards Board ("FASB") in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. In preparing these consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the allowance for loan and lease losses, the determination of fair market values of assets and liabilities, including acquired loans, the review of goodwill and intangibles for impairment and the review of deferred tax assets for valuation allowance. The judgments used by management in applying these significant estimates may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan and lease losses in future periods, and the inability to collect outstanding principal may result in increased loan and lease losses. Cash and Cash Equivalents For purposes of reporting asset balances and cash flows, cash and cash equivalents includes cash on hand and due from banks (including cash items in process of clearing), interest-bearing deposits with banks, federal funds sold, money market mutual funds and other short-term investments with original maturities of three months or less. Investment Securities Investment securities, other than those reported as short-term investments, are classified at the time of purchase as "available-for-sale," "held-to-maturity," or "held-for-trading." Classification is periodically re-evaluated for consistency with the Company's goals and objectives. Equity investments in the Federal Home Loan Bank of Boston ("FHLBB"), the Federal Reserve Bank of Boston and other restricted equities are discussed in more detail in Note 5, "Restricted Equity Securities." Investment Securities Available-for-Sale, Held-to-Maturity, and Held-for-Trading Investment securities for which the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at amortized cost. Those investment securities held for indefinite periods of time but not necessarily to maturity are classified as available-for-sale. Investment securities held for indefinite periods of time include investment securities that management intends to use as part of its asset/liability, liquidity, and/or capital management strategies and may be sold in response to changes in interest rates, maturities, asset/liability mix, liquidity needs, regulatory capital needs or other business factors. Investment securities available-for-sale are carried at estimated fair value, primarily obtained from a third-party pricing service, with unrealized gains and losses reported on an after-tax basis in stockholders' equity as accumulated other comprehensive income or loss. Investment securities expected to be held for very short term duration, used for hedging, or are marketable equity securities are typically designated held-for-trading. Held-for-trading securities are carried at estimated fair value principally based on market prices and dealer quotes received from third-party and nationally-recognized pricing services. Gains and losses for held-for-trading are reported on the income statement as gains on investment securities, net. As of December 31, 2022 and 2021, the Company did not make any adjustments to the prices provided by the third-party pricing service. Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and are recorded in non-interest income. Interest and dividends on securities are recorded using the accrual method. Premiums and discounts on securities are amortized or accreted into interest income using the level-yield method over the remaining period to contractual maturity, adjusted for the effect of actual prepayments in the case of mortgage-backed securities ("MBSs") and collateralized mortgage obligations ("CMOs"). These estimates of prepayment assumptions are made based upon the actual performance of the underlying security, current interest rates, the general market consensus regarding changes in mortgage interest rates, the contractual repayment terms of the underlying loans, the priority rights of the investors to the cash flows from the mortgage securities and other economic conditions. When differences arise between anticipated prepayments and actual prepayments, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. Unamortized premium or discount is adjusted to the amount that would have existed had the new effective yield been applied since purchase, with a corresponding charge or credit to interest income. Restricted Equity Securities The Company invests in the stock of the FHLBB, the Federal Reserve Bank of Boston and a small amount of other restricted securities. No ready market exists for these stocks, and they have no quoted market values. The Banks, as members of the FHLBB, are required to maintain investments in the capital stock of the FHLBB equal to their membership base investments plus an activity-based investment determined according to the Banks' level of outstanding FHLBB advances. Federal Reserve Bank of Boston stock was purchased and is redeemable at par. The Company reviews for impairment of these securities based on the ultimate recoverability of the cost basis in the stock. As of December 31, 2022 and 2021, no impairment has been recognized. Loans Originated Loans Loans the Company originates for the portfolio, and for which it has the intent and ability to hold to maturity, are reported at amortized cost, inclusive of deferred loan origination fees and expenses, less unadvanced funds due to borrowers on loans and the allowance for loan and lease losses. Interest income on loans and leases originated for the portfolio is accrued on unpaid principal balances as earned. Loan origination fees and direct loan origination costs are deferred, and the net fee or cost is recognized in interest income using the interest method. Deferred amounts are recognized for fixed-rate loans over the contractual life of the loans and for adjustable-rate loans over the period of time required to adjust the contractual interest rate to a yield approximating a market rate at the origination date. If a loan is prepaid, the unamortized portion of the loan origination costs, including third party referral related costs not subject to rebate from the dealer, is charged to income. Loans and Leases Held-for-Sale Management identifies and designates certain newly originated loans and leases for sale to specific financial institutions, subject to the underwriting criteria of those financial institutions. These loans and leases are held for sale and are carried at the lower of cost or market as determined in the aggregate. Deferred loan fees and costs are included in the determination of the gain or loss on sale. Nonperforming Loans Nonaccrual Loans Accrual of interest on loans generally is discontinued when contractual payment of principal or interest becomes past due 90 days or, if in management's judgment, reasonable doubt exists as to the full timely collection of interest. Exceptions may be made if the loan has matured and is in the process of renewal or is well-secured and in the process of collection. When a loan is placed on nonaccrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current interest income. Interest payments on nonaccrual loans are generally applied to principal. If collection of the principal is reasonably assured, interest payments are recognized as income on the cash basis. Loans are generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured and a consistent record of at least six consecutive months of performance has been achieved. Impaired Loans A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Smaller-balance, homogeneous loans that are evaluated collectively for impairment, such as residential, home equity and other consumer loans are specifically excluded from the impaired loan portfolio except where the loan is classified as a troubled debt restructuring. The Company has defined the population of impaired loans to include nonaccrual loans and troubled debt restructured ("TDR") loans. When the ultimate collectability of the total principal of an impaired loan or lease is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan or lease is not in doubt and the loan or lease is on nonaccrual status, contractual interest is credited to interest income when received, under the cash basis method. The value of an impaired loan is measured based upon the present value of expected future cash flows discounted at the loan's effective interest rate, or the fair value of the collateral if the loan is collateral-dependent and its payment is expected solely based on the underlying collateral. For impaired loans deemed collateral dependent, where impairment is measured using the fair value of the collateral, the Company will either obtain a new appraisal or use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Interest collected on impaired loans is either applied against principal or reported as income according to management's judgment as to the collectability of principal. If management does not consider a loan ultimately collectible within an acceptable time frame, payments are applied as principal to reduce the loan balance. If full collection of the remaining recorded investment should subsequently occur, interest receipts are recorded as interest income on a cash basis. Troubled Debt Restructured Loans In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR loan. In determining whether a debtor is experiencing financial difficulties, the Company considers, among other factors, whether the debtor is in payment default or is likely to be in payment default in the foreseeable future without the modification, if the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor's entity-specific projected cash flows will not be sufficient to service its debt, or the debtor cannot obtain funds from sources other than the existing creditors at market terms for debt with similar risk characteristics. Large groups of small-balance homogeneous loans such as residential real estate, residential construction, home equity and other consumer portfolios are collectively evaluated for impairment. As such, the Company does not typically identify individual loans within these groupings as impaired loans or for impairment evaluation and disclosure. However, the Company evaluates all TDRs for impairment on an individual loan basis regardless of loan type. Modifications may include interest-rate reductions, short-term (defined as one year or less) changes in payment structure to interest-only payments, short-term extensions of the loan's original contractual term, or less frequently, principal forgiveness, interest capitalization, forbearance and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Typically, TDRs are placed on nonaccrual status and reported as nonperforming loans. Generally, a nonaccrual loan that is restructured remains on nonaccrual for a period of six Loans restructured at an interest rate equal to or greater than that of a new loan with comparable risk at the time the loan agreement is modified may be excluded from restructured loan disclosures in years subsequent to the restructuring if they are in compliance with the modified terms. Allowance for Credit Losses Management has established a methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the allowance for credit losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized. To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. The Commercial real estate ("CRE"), Commercial and industrial ("C&I"), and Retail lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and utilization of expected utilization assumptions. The expected loss estimates for two small commercial portfolios and a runoff auto portfolio are based on historical loss rates. Key assumptions used in the models include portfolio segmentation, prepayments, the expected utilization of unfunded commitments, risk rating and a scalar, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a loan equivalency ("LEQ") factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available . Historical loss rate models apply a loss rate to the outstanding balance of the loan. Management uses historical loss rates for condominium association, auto, and government lease portfolio segments because these loans have distinct, historical, or expected loss patterns and a de minimus effect on the overall allowance and provision. Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of Gross Domestic Product ("GDP"), interest rates, property price indices, and employment measures. The forecasts are probability-weighted based on available information at the time of the calculation execution. Scenario weighting and model parameters are reviewed for each calculation and are subject to change. The models recognize that the life of a loan may exceed the economic forecast, therefore, the models employ mean reversion techniques at the input level to predict credit losses for loans that are expected to mature beyond the forecast period. The forecasts utilized at December 31, 2022 reflect the immediate and longer-term effects of a rising interest rate environment and inflationary conditions. The CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as variances in operational and underwriting procedures from the Company, and therefore, the Company calibrates expected losses using a scalar for each model. Each scalar was calculated by examining the loss rates of peer banks that have similar operations and asset bases to the Company and comparing these peer group loss rates to the model results. Peer group loss rates were used in the scalar calculation because management believes the peer group’s historical losses provide a better reflection of the Company’s current portfolio and operating procedures than the Company’s historical losses. Qualitative adjustments are also applied to select segments of the loan portfolio where applicable. For December 31, 2022, management applied qualitative adjustments to the CRE lifetime loss rate and C&I lifetime loss rate. These adjustments were made based on historical loss patterns, current loan and portfolio metrics, and expert judgment based on professional experience. These qualitative adjustments resulted in additions to reserves for the CRE and C&I portfolio, as compared to the model output. The general allowance related to loans collectively evaluated for impairment was determined using a formula-based approach utilizing the risk ratings of individual credits and loss factors derived from historic portfolio loss rates over a lookback period, which include estimates of incurred losses over an estimated loss emergence period (“LEP”). The LEP was generated utilizing a charge-off look-back analysis which studied the time from the first indication of elevated risk of repayment (or other early event indicating a problem) to eventual charge-off to support the LEP considered in the allowance calculation. This reserving methodology established the approximate number of months of LEP that represented incurred losses for each portfolio. In addition to quantitative measures, relevant qualitative factors included, but were not limited to: (1) levels and trends in past due and impaired loans, (2) levels and trends in charge-offs, (3) changes in underwriting standards, policy exceptions, and credit policy, (4) experience of lending management and staff, (5) economic trends, (6) industry conditions, (7) effects of changes in credit concentrations, (8) interest rate environment, and (9) regulatory and other changes. The general allowance related to the acquired loans collectively evaluated for impairment were determined based upon the degree, if any, of deterioration in the pooled loans subsequent to acquisition. The qualitative factors used in the determination was the same as those used for originated loans. Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary. Liability for Unfunded Commitments In the ordinary course of business, the Company enters into commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan and lease losses. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation and amortization, except for land which is carried at cost. Premises and equipment are depreciated using the straight-line method over the estimated useful life of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the improvements. Costs related to internal-use software development projects that provide significant new functionality are capitalized. Internal-use software is software acquired or modified solely to meet the Company's needs and for which there is no plan to market the software externally. Direct and indirect costs associated with the application development stage of internal use software are capitalized until such time that the software is substantially complete and ready for its intended use. Capitalized costs are amortized on a straight-line basis over the remaining estimated life of the software. Computer software and development costs incurred in the preliminary project stage, as well as training and maintenance costs, are expensed as incurred. Leases The Company leases certain office space under various noncancellable operating leases as well as certain other assets. These leases have original terms ranging from 3 years to over 25 years. Certain leases contain renewal options and escalation clauses which can increase rental expenses based principally on the consumer price index and fair market rental value provisions. Right-of-use lease assets are carried on the balance sheet at amortized cost and corresponding lease liabilities are carried on the balance sheet at present value of the future minimum lease payments, adjusted for any initial direct costs and incentives. All of the Company's current outstanding leases are classified as operating leases. Bank-Owned Life Insurance The Company acquired bank-owned life insurance ("BOLI") plans as part of its acquisitions of First Ipswich Bank and BankRI. BOLI represents life insurance on the lives of certain current and former employees who have provided positive consent allowing their employer to be the beneficiary of such policies. BankRI and Brookline Bank as successor in interest to First Ipswich Bank are the beneficiaries of their respective policies. BankRI and Brookline Bank utilize BOLI as tax-efficient financing for their benefit obligations to their employees, including their retirement obligations and Supplemental Executive Retirement Plans ("SERPs"). Since BankRI and Brookline Bank are the primary beneficiaries of their respective insurance policies, increases in the cash value of the policies, as well as insurance proceeds received, are recorded in non-interest income and are not subject to income taxes. BOLI is recorded at the cash value of the policies, less any applicable cash surrender charges, and is reflected as an asset in the accompanying consolidated balance sheets. Cash proceeds, if any, are classified as cash flows from investing activities. The Company reviews the financial strength of the insurance carriers prior to the purchase of BOLI to ensure minimum credit ratings of at least investment grade. The financial strength of the carriers is reviewed at least annually, and BOLI with any individual carrier is limited to 10% of the Company's capital. Total BOLI is limited to 25% of the Company's capital. Goodwill and Other Identified Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill and indefinite-lived identified intangible assets are not subject to amortization. Definite-lived identified intangible assets are assets resulting from acquisitions that are being amortized over their estimated useful lives. The recoverability of goodwill and identified intangible assets is evaluated for impairment at least annually. A Company can perform a qualitative assessment of whether it is more likely than not that the fair value of an acquired asset is greater than its carrying amount. If the Company qualitatively concludes that it is more likely than not that the fair value of an acquired asset is greater than its carrying amount, no further testing is necessary. If, however, the Company qualitatively concludes that the fair value of an acquired asset is less than its carrying value, the Company should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. However, in accordance with ASC 350-20-35-3B, an entity can bypass the qualitative assessment and perform the quantitative impairment test. Given the current economic environment, a quantitative analysis was performed where management selected a sample of comparable acquisitions and calculated the control premium associated with each sale. The Company’s market capitalization times the sampled control premium allowed management to compare the calculated fair value to the Company’s current book value to determine if an adjustment to goodwill is warranted. The Company did not have any impairment of Goodwill and other identified intangible assets as of December 31, 2022 and 2021 . Further analysis of the Company’s goodwill can be found in Note 9 “Goodwill and Other Intangible Assets” within notes to the consolidated financial statements. OREO and Other Repossessed Assets OREO and other repossessed assets consists of properties acquired through foreclosure, real estate acquired through acceptance of a deed in lieu of foreclosure and loans determined to be substantively repossessed. Real estate loans that are substantively repossessed include only those loans for which the Company has taken possession of the collateral. OREO and other repossessed assets which consist of vehicles and equipment, if any, are recorded initially at estimated fair value less costs to sell, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated cost to sell) of the foreclosed or repossessed asset is charged to the allowance for loan and lease losses. Such evaluations are based on an analysis of individual properties/assets as well as a general assessment of current real estate market conditions. Subsequent declines in the fair value of the foreclosed or repossessed asset below the new cost basis are recorded through the use of a valuation allowance. Subsequent increases in the fair value are recorded as reductions in the allowance, but not below zero. Rental revenue received on foreclosed or repossessed assets is included in other non-interest income, whereas operating expenses and changes in the valuation allowance relating to foreclosed and repossessed assets are included in other non-interest expense. Certain costs used to improve such properties are capitalized. Gains and losses from the sale of OREO and other repossessed assets are reflected in non-interest expense when realized. Together with nonperforming loans, OREO and repossessed assets comprise nonperforming assets. Derivatives The Company utilizes loan level derivatives which consists of interest rate contracts (swaps, caps and floors), and risk participation agreements as part of the Company's interest-rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on the Company's intended use for the loan level derivatives at inception, the Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging". These derivatives designated as cash flow hedges involve the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments. Loan level derivatives and foreign exchange contracts entered into on behalf of our customers are designated as economic hedges and are recorded at fair value within other assets or liabilities. Changes in the fair value of these non hedging derivatives are recorded directly through earnings at each reporting period. Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions PCSB Financial Corporation On January 1, 2023, the Company completed its previously announced acquisition (the “merger”) of PCSB Financial Corporation (“PCSB”). Pursuant to the merger agreement, each share of PCSB common stock outstanding at the effective time of the merger was converted into the right to receive, at the holder’s election, either $22.00 in cash consideration or 1.3284 shares of Company common stock for each share of PCSB common stock, subject to allocation procedures to ensure that 60% of the outstanding shares of PCSB common stock was converted to Company common stock. Subsequent to the acquisition, PCSB’s bank subsidiary, PCSB Bank, operates as a separate subsidiary of the Company and has 15 banking offices throughout the Lower Hudson Valley of New York State. The transaction will be accounted for as a business combination. Accordingly, the purchase price will be allocated to the assets acquired and liabilities assumed based on their fair values as of the merger effective date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and are subject to change. Given the close proximity between the transaction closing date and the Company’s Annual Report on Form 10-K, the preliminary purchase price allocation has not yet been completed. Management expects to complete the initial accounting for its merger with PCSB, including the purchase price allocation, later in the first quarter of 2023. As a result, the estimated fair values of the assets acquired and liabilities assumed, the valuation techniques and inputs used to measure and develop the fair values, and any goodwill recorded will be disclosed in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2023, along with supplemental pro forma financial information for the year ended December 31, 2022 as if the merger with PCSB had occurred as of January 1, 2022. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments As of December 31, 2022 and 2021, there was no average amount required to be held before a credit for vault cash. Aggregate reserve balances included in cash and cash equivalents were $301.2 million and $251.8 million, respectively, as of December 31, 2022 and 2021. Short-term investments are summarized as follows: At December 31, 2022 2021 (In Thousands) FRB interest bearing reserve $ 141,198 $ 235,108 FHLB overnight deposits 49,994 26,364 Total short-term investments $ 191,192 $ 261,472 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following tables set forth investment securities available-for-sale at the dates indicated: At December 31, 2022 Amortized Gross Gross Estimated (In Thousands) Investment securities available-for-sale: GSE debentures $ 176,751 $ — $ 24,329 $ 152,422 GSE CMOs 19,977 — 1,757 18,220 GSE MBSs 159,824 1 19,249 140,576 Corporate debt obligations 14,076 — 312 13,764 U.S. Treasury bonds 362,850 280 31,823 331,307 Foreign government obligations 500 — 23 477 Total investment securities available-for-sale $ 733,978 $ 281 $ 77,493 $ 656,766 At December 31, 2021 Amortized Gross Gross Estimated (In Thousands) Investment securities available-for-sale: GSE debentures $ 219,723 $ 2,017 $ 4,235 $ 217,505 GSE CMOs 27,892 274 27 28,139 GSE MBSs 196,930 3,749 907 199,772 Corporate debt obligations 22,178 505 — 22,683 U.S. Treasury bonds 253,878 1,136 2,746 252,268 Foreign government obligations 500 — 1 499 Total investment securities available-for-sale $ 721,101 $ 7,681 $ 7,916 $ 720,866 As of December 31, 2022, the fair value of all investment securities available-for-sale was $656.8 million, with net unrealized losses of $77.2 million, compared to a fair value of $720.9 million and net unrealized losses of $0.2 million as of December 31, 2021. As of December 31, 2022, $630.5 million, or 96.0% of the portfolio, had gross unrealized losses of $77.5 million, compared to $353.8 million, or 49.1% of the portfolio, with gross unrealized losses of $7.9 million as of December 31, 2021. As of December 31, 2022 and 2021, the Company did not hold any equity securities held-for-trading. Investment Securities as Collateral As of December 31, 2022 and 2021, respectively, $387.9 million and $491.8 million of investment securities were pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits ("TT&L"); swap agreements; and FHLBB borrowings. The Banks did not have any outstanding FRB borrowings as of December 31, 2022 and 2021. Allowance for Credit Losses-Available-for-Sale Securities For available-for-sale securities in an unrealized loss position, management first assesses whether (i) the Company intends to sell the security, or (ii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither criterion is met, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for credit loss is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Adjustments to the allowance are reported as a component of credit loss expense. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivables associated with debt securities available-for-sale totaled $2.6 million and $2.8 million, respectively, as of December 31, 2022 and 2021. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a debt security placed on nonaccrual is reversed against interest income. There were no debt securities on nonaccrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the years ended December 31, 2022 and 2021. Assessment for Available for Sale Securities for Impairment Investment securities as of December 31, 2022 and 2021 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows: At December 31, 2022 Less than Twelve Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In Thousands) Investment securities available-for-sale: GSE debentures $ 56,719 $ 1,255 $ 95,703 $ 23,076 $ 152,422 $ 24,331 GSE CMOs 16,411 1,563 1,809 192 18,220 1,755 GSE MBSs 97,858 9,823 42,500 9,426 140,358 19,249 Corporate debt obligations 13,764 312 — — 13,764 312 U.S. Treasury bonds 139,103 3,723 166,150 28,100 305,253 31,823 Foreign government obligations 477 23 — — 477 23 Temporarily impaired investment securities available-for-sale 324,332 16,699 306,162 60,794 630,494 77,493 Total temporarily impaired investment securities $ 324,332 $ 16,699 $ 306,162 $ 60,794 $ 630,494 $ 77,493 At December 31, 2021 Less than Twelve Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In Thousands) Investment securities available-for-sale: GSE debentures $ 45,695 $ 1,487 $ 70,075 $ 2,748 $ 115,770 $ 4,235 GSE CMOs 2,712 27 — — 2,712 27 GSE MBSs 57,656 907 — — 57,656 907 U.S. Treasury bonds 177,162 2,746 — — 177,162 2,746 Foreign government obligations 499 1 — — 499 1 Temporarily impaired investment securities available-for-sale 283,724 5,168 70,075 2,748 353,799 7,916 Total temporarily impaired investment securities $ 283,724 $ 5,168 $ 70,075 $ 2,748 $ 353,799 $ 7,916 The Company performs regular analysis on the investment securities available-for-sale portfolio to determine whether a decline in fair value indicates that an investment security is impaired. In making these impairment determinations, management considers, among other factors, projected future cash flows; credit subordination and the creditworthiness; capital adequacy and near-term prospects of the issuers. Management also considers the Company's capital adequacy, interest-rate risk, liquidity and business plans in assessing whether it is more likely than not that the Company will sell or be required to sell the investment securities before recovery. If the Company determines that a security investment is impaired and that it is more likely than not that the Company will not sell or be required to sell the investment security before recovery of its amortized cost, the credit portion of the impairment loss is recognized in the Company's consolidated statement of income and the noncredit portion is recognized in accumulated other comprehensive income. The credit portion of the impairment represents the difference between the amortized cost and the present value of the expected future cash flows of the investment security. If the Company determines that a security is impaired and it is more likely than not that it will sell or be required to sell the investment security before recovery of its amortized cost, the entire difference between the amortized cost and the fair value of the security will be recognized in the Company's consolidated statement of income. Investment Securities Available-For-Sale Impairment Analysis The following discussion summarizes, by investment security type, the basis for evaluating if the applicable investment securities within the Company’s available-for-sale portfolio were impaired as of December 31, 2022. The Company has determined it is more likely than not that the Company will not sell or be required to sell the investment securities before recovery of its amortized cost. The Company's ability and intent to hold these investment securities until recovery is supported by the Company's strong capital and liquidity positions as well as its historically low portfolio turnover. As such, management has determined that the investment securities are not impaired as of December 31, 2022. If market conditions for investment securities worsen or the creditworthiness of the underlying issuers deteriorates, it is possible that the Company may recognize additional impairment in future periods. U.S. Government-Sponsored Enterprises The Company invests in securities issued by U.S. Government-sponsored enterprises ("GSEs"), including GSE debentures, MBSs, and CMOs. GSE securities include obligations issued by the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC"), the Government National Mortgage Association ("GNMA"), the FHLBB and the Federal Farm Credit Bank. As of December 31, 2022, the Company held GNMA MBSs and CMOs, and Small Business Administration ("SBA") commercial loan asset-backed securities in our available-for-sale portfolio with an estimated fair value of $2.7 million were backed explicitly by the full faith and credit of the U.S. Government, compared to $4.2 million as of December 31, 2021. As of December 31, 2022, the Company owned 32 GSE debentures with a total fair value of $152.4 million, and a net unrealized loss of $24.3 million. As of December 31, 2021, the Company held 45 GSE debentures with a total fair value of $217.5 million, and a net unrealized loss of $2.2 million. As of December 31, 2022, 31 of the 32 securities in this portfolio were in an unrealized loss position. As of December 31, 2021, 12 of the 45 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA/SBA) guarantee of the U.S. Government. For the year ended December 31, 2022 and 2021, the Company did not purchase GSE debentures. As of December 31, 2022, the Company owned 32 GSE CMOs with a total fair value of $18.2 million and a net unrealized loss of $1.8 million. As of December 31, 2021, the Company held 33 GSE CMOs with a total fair value of $28.1 million with a net unrealized gain of $0.2 million. As of December 31, 2022, all of the securities in this portfolio were in an unrealized loss position. As of December 31, 2021, 5 of the 33 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S. Government. For the years ended December 31, 2022 and 2021, the Company did not purchase any GSE CMOs. As of December 31, 2022, the Company owned 134 GSE MBSs with a total fair value of $140.6 million and a net unrealized loss of $19.2 million. As of December 31, 2021, the Company held 139 GSE MBSs with a total fair value of $199.8 million with a net unrealized gain of $2.8 million. As of December 31, 2022, 128 of the 134 securities in this portfolio were in an unrealized loss position. As of December 31, 2021, 16 of the 139 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S. Government. For the year ended December 31, 2022 and 2021, the Company did not purchase any GSE MBSs. Corporate Obligations The Company may invest in high-quality corporate obligations to provide portfolio diversification and improve the overall yield on the portfolio. As of December 31, 2022, the Company owned 4 corporate obligation securities with a total fair value of $13.8 million and a net unrealized loss of $0.3 million. As of December 31, 2021, the Company held 6 corporate obligation securities with a total fair value of $22.7 million and a net unrealized gain of $0.5 million. As of December 31, 2022, all of the securities in this portfolio were in an unrealized loss position. As of December 31, 2021, none of the securities in this portfolio were in an unrealized loss position. Full collection of the obligations is expected because the financial condition of the issuers is sound, they have not defaulted on scheduled payments, the obligations are rated investment grade, and the Company has the ability and intent to hold the obligations for a period of time to recover the amortized cost. For the years ended December 31, 2022 and 2021, the Company did not purchase any corporate obligations. U.S. Treasury Bonds The Company invests in securities issued by the U.S. government. As of December 31, 2022, the Company owned 41 U.S. Treasury bonds with a total fair value of $331.3 million and a net unrealized loss of $31.5 million. As of December 31, 2021, the Company owned 34 U.S. Treasury bonds with a total fair value of $252.3 million and a net unrealized loss of $1.6 million. As of December 31, 2022, 38 of the 41 securities in this portfolio were in an unrealized loss position. As of December 31, 2021, 18 of the 34 securities in this portfolio were in unrealized loss positions. For the years ended December 31, 2022 and 2021, the Company purchased $197.1 million and $223.1 million, respectively, of U.S. Treasury bonds. Foreign Government Obligations As of December 31, 2022 and 2021, the Company owned 1 foreign government obligation security with a fair value and amortized cost of $0.5 million. As of December 31, 2022 and 2021, the security was in an unrealized loss position. During the year ended December 31, 2022, the Company repurchased the foreign government obligation security that matured during the first quarter of 2022. Portfolio Maturities The final stated maturities of the debt securities are as follows for the periods indicated: At December 31, 2022 2021 Amortized Estimated Weighted Amortized Estimated Weighted (Dollars in Thousands) Investment securities available-for-sale: Within 1 year $ 119,912 $ 119,075 3.10% $ 53,791 $ 54,183 2.09% After 1 year through 5 years 163,941 156,120 2.40% 139,068 141,928 1.95% After 5 years through 10 years 291,284 244,847 1.30% 322,873 317,324 1.29% Over 10 years 158,841 136,724 2.10% 205,369 207,431 1.96% $ 733,978 $ 656,766 2.06% $ 721,101 $ 720,866 1.67% Actual maturities of debt securities will differ from those presented above since certain obligations amortize and may also provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. MBSs and CMOs are included above based on their final stated maturities; the actual maturities, however, may occur earlier due to anticipated prepayments and stated amortization of cash flows. As of December 31, 2022, issuers of debt securities with an estimated fair value of $53.1 million had the right to call or prepay the obligations. Of the $53.1 million, approximately $2.5 million matures in less then 1 year, $6.3 million matures in 1-5 years, $37.4 million matures in 6-10 years, and $6.9 million mature after ten years. As of December 31, 2021, issuers of debt securities with an estimated fair value of approximately $67.0 million had the right to call or prepay the obligations. Of the $67.0 million, approximately $3.1 million matures in less than 1 year, $9.4 million matures in 1-5 years, $44.9 million matures in 6-10 years, and $9.6 million matures after ten years. Security Sales The proceeds from the sale of investment securities available-for-sale were $78.8 million during the year ended December 31, 2022. This compares to $39.7 million securities sold during the year ended December 31, 2021. Year Ended December 31, 2022 2021 (In Thousands) Proceeds from sales of investment securities available-for-sale $ 78,778 $ 39,652 Gross gains from sales — 273 Gross losses from sales (5,785) (303) Gain (loss) on sales of securities, net $ (5,785) $ (30) |
Restricted Equity Securities
Restricted Equity Securities | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Investments Note [Abstract] | |
Restricted Equity Securities | Restricted Equity Securities Investments in the restricted equity securities of various entities are as follows: At December 31, 2022 2021 (In Thousands) FHLBB stock $ 52,914 $ 10,488 FRB stock 18,241 18,241 Other restricted equity securities 152 252 $ 71,307 $ 28,981 The Company invests in the stock of FHLBB as one of the requirements to borrow. As of December 31, 2022 and 2021, FHLBB stock is recorded at its carrying value, which is equal to cost and which management believes approximates its fair value. The FHLBB paid a dividend to member banks at an annualized rate of 353 basis points in 2022. The FHLBB increased its dividend from 205 basis points in the first quarter of 2022 to 516 basis points in the fourth quarter of 2022. As of December 31, 2022, the Company's investment in FHLBB stock exceeded its required investment which provides for additional borrowing capacity. The Company invests in the stock of the Federal Reserve Bank of Boston as required by its the Banks' membership in the Federal Reserve system. As of December 31, 2022 and 2021, Federal Reserve Bank of Boston stock is recorded at its carrying value, which is equal to cost and which management believes approximates its fair value. |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases The following table presents the amortized cost of loans and leases and weighted average coupon rates for the loan and lease portfolios at the dates indicated: At December 31, 2022 At December 31, 2021 Balance Weighted Balance Weighted (Dollars In Thousands) Commercial real estate loans: Commercial real estate $ 3,046,746 4.93 % $ 2,842,791 3.41 % Multi-family mortgage 1,150,597 4.74 % 1,099,818 3.26 % Construction 206,805 6.51 % 160,431 3.60 % Total commercial real estate loans 4,404,148 4.95 % 4,103,040 3.38 % Commercial loans and leases: Commercial (1) 752,948 6.03 % 734,388 3.31 % Equipment financing 1,216,585 7.04 % 1,105,611 6.86 % Condominium association 46,966 4.80 % 47,137 4.34 % Total commercial loans and leases 2,016,499 6.61 % 1,887,136 5.42 % Consumer loans: Residential mortgage 844,614 3.98 % 799,737 3.49 % Home equity 322,622 7.00 % 324,156 3.27 % Other consumer 56,505 6.65 % 40,388 2.90 % Total consumer loans 1,223,741 4.90 % 1,164,281 3.41 % Total loans and leases $ 7,644,388 5.38 % $ 7,154,457 3.92 % (1) Including $257 and $67,711 of PPP loans as of December 31, 2022 and 2021, respectively. These loans are fully guaranteed by the SBA and therefore, have not been reserved for in the allowance for credit losses as of December 31, 2022 and 2021. Accrued interest on loans and leases, which were excluded from the amortized cost of loans and leases totaled $26.1 million and $16.7 million at December 31, 2022 and December 31, 2021, respectively, and were included in other assets in the accompanying consolidated balance sheets. The net unamortized deferred loan origination fees and costs included in total loans and leases were $11.3 million and $10.9 million as of December 31, 2022 and 2021, respectively. The Banks and their subsidiaries lend primarily in all New England states, with the exception of equipment financing, 26.5% of which is in the greater New York and New Jersey metropolitan area and 73.5% of which is in other areas in the United States of America as of December 31, 2022. Related Party Loans The Banks' authority to extend credit to their respective directors and executive officers, as well as to entities controlled by such persons, is currently governed by the requirements of the Sarbanes-Oxley Act and Regulation O of the FRB. Among other things, these provisions require that extensions of credit to insiders (1) be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and (2) not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of the Banks' capital. In addition, the extensions of credit to insiders must be approved by the applicable Bank's Board of Directors. The following table summarizes the change in the total amounts of loans and advances to directors, executive officers and their affiliates for the periods indicated. All loans were performing as of December 31, 2022 and 2021. Year Ended December 31, 2022 2021 (Dollars In Thousands) Balance at beginning of year $ 111,326 $ 78,201 New loans granted during the year 1,675 5,053 Loans reclassified as insider loans — Advances on lines of credit 1,233 44,638 Repayments 9,343 (16,566) Balance at end of year $ 123,577 $ 111,326 Unfunded commitments on extensions of credit to related parties totaled $12.1 million and $28.5 million as of December 31, 2022 and 2021, respectively. Loans and Leases Pledged as Collateral As of December 31, 2022 and 2021, there were $2.4 billion and $2.7 billion, respectively, of loans and leases pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; and FHLBB borrowings. The Banks did not have any outstanding FRB borrowings as of December 31, 2022 and 2021. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The following tables present the changes in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment for the periods indicated: Year Ended December 31, 2022 Commercial Commercial Consumer Total (In Thousands) Balance at December 31, 2021 $ 69,213 $ 27,055 $ 2,816 $ 99,084 Charge-offs (37) (5,068) (28) (5,133) Recoveries 24 1,725 64 1,813 (Credit) provision for loan and lease losses excluding unfunded commitments (1,046) 2,892 872 2,718 Balance at December 31, 2022 $ 68,154 $ 26,604 $ 3,724 $ 98,482 Year Ended December 31, 2021 Commercial Commercial Consumer Total (In Thousands) Balance at December 31, 2020 $ 80,132 $ 29,498 $ 4,749 $ 114,379 Charge-offs (28) (7,464) (34) (7,526) Recoveries 12 1,541 239 1,792 Provision for loan and lease losses excluding unfunded commitments (10,903) 3,480 (2,138) (9,561) Balance at December 31, 2021 $ 69,213 $ 27,055 $ 2,816 $ 99,084 The allowance for credit losses for unfunded credit commitments, which is included in other liabilities, was $20.6 million and $14.8 million at December 31, 2022 and December 31, 2021, respectively. The increase in allowance for unfunded commitments was primarily driven by the increase in such commitments from $1.7 billion at December 31, 2021 to $5.8 billion at December 31, 2022. No credit commitments were charged off against the liability account in the years ended December 31, 2022 and 2021. Provision for Credit Losses The (credit) provisions for credit losses are set forth below for the periods indicated: Year Ended December 31, 2022 2021 2020 (In Thousands) Provision (credit) for loan and lease losses: Commercial real estate $ (1,046) $ (10,903) $ 41,573 Commercial 2,892 3,480 17,050 Consumer 872 (2,138) 1,003 Total provision (credit) for loan and lease losses 2,718 (9,561) 59,626 Unfunded credit commitments 5,807 1,724 2,260 Investment securities available-for-sale 102 — — Total provision (credit) for credit losses $ 8,627 $ (7,837) $ 61,886 Allowance for Credit Losses Methodology Management has established a methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the allowance for credit losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized. To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. Commercial real estate ("CRE"), commercial and industrial ("C&I"), and retail lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and expected utilization assumptions. The expected loss estimates for two small commercial portfolios are based on historical loss rates. Key assumptions used in the models include portfolio segmentation, prepayments, and the expected utilization of unfunded commitments, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a loan equivalency ("LEQ") factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available . The ACL estimate incorporates reasonable and supportable forecasts of various macro-economic variables over the remaining life of loans and leases. The development of the reasonable and supportable forecast assume each macro-economic variable will revert to long-term expectations, with reversion characteristics unique to specific economic indicators and forecasts. Reversion towards long-term expectations generally begins two Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of Gross Domestic Product ("GDP"), interest rates, property price indices, and employment measures. Scenario weighting and model parameters are reviewed for each calculation and updated to reflect facts and circumstances as of the financial statement date. The forecasts utilized at December 31, 2022 reflect the immediate and longer-term effects of a rising interest rate environment and inflationary conditions. As of December 31, 2022, management applied qualitative adjustments to the CRE lifetime loss rate, C&I lifetime loss rate, and retail lifetime loss rate models. These adjustments addressed model limitations, were based on historical loss patterns, and targeted specific risks within the certain portfolios. A general qualitative adjustment was applied to all models to account for general economic uncertainty by placing a greater probability on negative economic forecasts. Additional qualitative adjustments were applied to the commercial, multifamily, and commercial real estate (includes owner occupied, non-owner occupied, and construction) portfolios based on the Company’s historical loss experience and the loss experience of the Company’s peer group. High risk segments of the Eastern Funding portfolios also received additional qualitative adjustments based on recent loss history and expected liquidation values. These qualitative adjustments resulted in additions to reserves for all portfolios, as compared to the model output. Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary. The general allowance for loan and lease losses was $95.4 million as of December 31, 2022, compared to $95.8 million as of December 31, 2021. The overall decline in the general allowance for credit losses is mostly attributable to further normalizing of economic forecasts offset by loan growth during the year. The specific allowance for loan and lease losses was $3.1 million as of December 31, 2022, compared to $3.3 million as of December 31, 2021. The decrease of $0.2 million was primarily driven by a $2.4 million decrease in specific reserve for select equipment financing relationships offset by a $2.2 million increase in the specific reserve for C&I relationships. As of December 31, 2022, management believes that the methodology for calculating the allowance is sound and that the allowance provides a reasonable basis for determining and reporting on expected losses over the lifetime of the Company’s loan portfolio. Credit Quality Assessment At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the credit quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, adversely risk-rated, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a TDR loan. The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk. The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows: 1 -4 Rating—Pass Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral. 5 Rating—Other Assets Especially Mentioned ("OAEM") Borrowers exhibit potential credit weaknesses or downward trends deserving management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned. 6 Rating—Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation. 7 Rating—Doubtful Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. 8 Rating—Definite Loss Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted. Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets. Credit Quality Information The following tables present the recorded investment in loans in each class as of December 31, 2022 and December 31, 2021 by credit quality indicator and year originated. December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Commercial Real Estate Pass $ 475,105 $ 622,952 $ 290,913 $ 362,339 $ 210,954 $ 971,274 $ 55,464 $ 9,167 $ 2,998,168 OAEM — 2,600 112 14,805 2,841 25,875 — — 46,233 Substandard — — — — — 2,345 — — 2,345 Total 475,105 625,552 291,025 377,144 213,795 999,494 55,464 9,167 3,046,746 Multi-Family Mortgage Pass 162,139 226,502 132,893 114,109 142,271 324,415 4,823 36,662 1,143,814 Substandard — — — — — 6,783 — — 6,783 Total 162,139 226,502 132,893 114,109 142,271 331,198 4,823 36,662 1,150,597 Construction Pass 82,650 73,995 13,787 16,421 3,306 — 6,456 — 196,615 OAEM 842 8,641 — — — — — — 9,483 Substandard — — — — — 707 — — 707 Total 83,492 82,636 13,787 16,421 3,306 707 6,456 — 206,805 Commercial Pass 178,212 116,674 48,713 22,809 29,350 52,866 273,467 1,071 723,162 OAEM — 109 — 14,821 — — 2,187 — 17,117 Substandard — 3,835 1,215 494 — 30 6,461 632 12,667 Doubtful — — — — — 1 — 1 2 Total 178,212 120,618 49,928 38,124 29,350 52,897 282,115 1,704 752,948 December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Equipment Financing Pass 443,323 282,398 185,007 140,931 76,595 60,980 13,236 1,301 1,203,771 OAEM 1,019 1,453 184 455 13 — — — 3,124 Substandard 608 784 1,514 2,597 2,503 1,669 — — 9,675 Doubtful — — — — 2 13 — — 15 Total 444,950 284,635 186,705 143,983 79,113 62,662 13,236 1,301 1,216,585 Condominium Association Pass 5,821 7,743 8,810 5,858 1,603 12,227 4,823 23 46,908 Substandard — — — — — 58 — — 58 Total 5,821 7,743 8,810 5,858 1,603 12,285 4,823 23 46,966 Other Consumer Pass 411 393 15 13 1,503 750 53,418 1 56,504 Substandard — — — — — — 1 — 1 Total 411 393 15 13 1,503 750 53,419 1 56,505 Total Pass 1,347,661 1,330,657 680,138 662,480 465,582 1,422,512 411,687 48,225 6,368,942 OAEM 1,861 12,803 296 30,081 2,854 25,875 2,187 — 75,957 Substandard 608 4,619 2,729 3,091 2,503 11,592 6,462 632 32,236 Doubtful — — — — 2 14 — 1 17 Total $ 1,350,130 $ 1,348,079 $ 683,163 $ 695,652 $ 470,941 $ 1,459,993 $ 420,336 $ 48,858 $ 6,477,152 As of December 31, 2022, there were no loans categorized as definite loss. The following table presents the recorded investment in loans in each class as of December 31, 2021 by credit quality indicator. At December 31, 2021 Commercial Real Estate Multi-Family Mortgage Construction Commercial Equipment Financing Condominium Association Other Consumer Total (In Thousands) Loan rating: Pass $ 2,782,983 $ 1,098,629 $ 156,636 $ 721,245 $ 1,088,197 $ 47,053 $ 40,387 $ 5,935,130 OAEM 46,585 1,189 — 8,324 2,176 — — 58,274 Substandard 13,223 — 3,795 4,817 15,224 84 1 37,144 Doubtful — — — 2 14 — — 16 Total loans $ 2,842,791 $ 1,099,818 $ 160,431 $ 734,388 $ 1,105,611 $ 47,137 $ 40,388 $ 6,030,564 As of December 31, 2021, there were no loans categorized as definite loss. For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model. December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Residential Credit Scores Over 700 $ 108,125 $ 176,341 $ 95,484 $ 61,763 $ 38,949 $ 132,359 $ 4,942 $ 348 $ 618,311 661 - 700 15,018 21,450 17,611 11,388 8,308 29,999 — — 103,774 600 and below 6,133 3,754 5,275 2,833 2,264 14,688 — — 34,947 Data not available* 28,097 6,661 712 3,316 — 48,796 — — 87,582 Total 157,373 208,206 119,082 79,300 49,521 225,842 4,942 348 844,614 Home Equity Credit Scores Over 700 3,833 1,399 1,128 1,209 984 6,862 247,188 2,304 264,907 661 - 700 787 92 35 249 272 1,329 41,050 296 44,110 600 and below 89 87 48 93 — 360 8,744 595 10,016 Data not available* 6 6 — — — 1,029 2,279 269 3,589 Total $ 4,715 $ 1,584 $ 1,211 $ 1,551 $ 1,256 $ 9,580 $ 299,261 $ 3,464 $ 322,622 * Represents accounts for which data are not available. December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Residential Credit Scores Over 700 $ 182,759 $ 111,380 $ 69,901 $ 51,454 $ 40,467 $ 127,303 $ 2,990 $ 355 $ 586,609 661 - 700 24,370 19,078 14,011 9,018 12,846 25,294 — — 104,617 600 and below 4,145 6,368 3,408 2,996 3,492 13,801 — — 34,210 Data not available* 10,936 — 1,958 — 6,847 54,560 — — 74,301 Total 222,210 136,826 89,278 63,468 63,652 220,958 2,990 355 799,737 Home Equity Credit Scores Over 700 1,530 1,469 1,790 1,520 1,561 8,254 242,980 1,844 260,948 661 - 700 98 51 297 392 210 1,658 42,542 541 45,789 600 and below 92 54 101 — 12 436 8,484 713 9,892 Data not available* — — — — — 1,216 5,937 374 7,527 Total $ 1,720 $ 1,574 $ 2,188 $ 1,912 $ 1,783 $ 11,564 $ 299,943 $ 3,472 $ 324,156 * Represents accounts for which data are not available. Age Analysis of Past Due Loans and Leases The following tables present an age analysis of the recorded investment in total loans and leases as of December 31, 2022 and 2021. At December 31, 2022 Past Due Past Non-accrual Non-accrual with no related Allowance 31-60 61-90 Greater Total Current Total Loans (In Thousands) Commercial real estate loans: Commercial real estate $ 2,495 $ 199 $ 408 $ 3,102 $ 3,043,644 $ 3,046,746 $ — $ 607 $ 262 Multi-family mortgage — 180 — 180 1,150,417 1,150,597 — — — Construction 707 — — 707 206,098 206,805 — 707 707 Total commercial real estate loans 3,202 379 408 3,989 4,400,159 4,404,148 — 1,314 969 Commercial loans and leases: Commercial 740 — 343 1,083 751,865 752,948 — 464 — Equipment financing 5,103 1,764 6,205 13,072 1,203,513 1,216,585 28 9,653 399 Condominium association 2,072 — — 2,072 44,894 46,966 — 58 — Total commercial loans and leases 7,915 1,764 6,548 16,227 2,000,272 2,016,499 28 10,175 399 Consumer loans: Residential mortgage 677 70 1,466 2,213 842,401 844,614 1 2,680 1,091 Home equity 443 — 155 598 322,024 322,622 4 723 — Other consumer 1 5 2 8 56,497 56,505 — 2 — Total consumer loans 1,121 75 1,623 2,819 1,220,922 1,223,741 5 3,405 1,091 Total loans and leases $ 12,238 $ 2,218 $ 8,579 $ 23,035 $ 7,621,353 $ 7,644,388 $ 33 $ 14,894 $ 2,459 There is no interest income recognized on non-accrual loans for the year ending December 31, 2022. At December 31, 2021 Past Due Past 31-60 61-90 Greater Total Current Total Loans Non-accrual Non-accrual with no related Allowance (In Thousands) Commercial real estate loans: Commercial real estate $ 2,424 $ 1,488 $ 10,443 $ 14,355 $ 2,828,436 $ 2,842,791 $ — $ 10,848 $ 10,244 Multi-family mortgage 371 89 — 460 1,099,358 1,099,818 — — — Construction 396 — — 396 160,035 160,431 — — — Total commercial real estate loans 3,191 1,577 10,443 15,211 4,087,829 4,103,040 — 10,848 10,244 Commercial loans and leases: Commercial 287 88 748 1,123 733,265 734,388 — 2,318 1,383 Equipment financing 5,265 1,044 8,774 15,083 1,090,528 1,105,611 — 15,014 1,602 Condominium association 57 — — 57 47,080 47,137 — 84 — Total commercial loans and leases 5,609 1,132 9,522 16,263 1,870,873 1,887,136 — 17,416 2,985 Consumer loans: Residential mortgage 454 3,169 2,315 5,938 793,799 799,737 — 3,909 2,165 Home equity 424 201 114 739 323,417 324,156 1 285 — Other consumer 5 2 1 8 40,380 40,388 — 1 — Total consumer loans 883 3,372 2,430 6,685 1,157,596 1,164,281 1 4,195 2,165 Total loans and leases $ 9,683 $ 6,081 $ 22,395 $ 38,159 $ 7,116,298 $ 7,154,457 $ 1 $ 32,459 $ 15,394 There is no interest income recognized on non-accrual loans for the year ending December 31, 2021. Impaired Loans and Leases A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The loans and leases risk-rated "substandard" or worse are considered impaired. The Company has also defined the population of impaired loans to include nonaccrual loans and TDR loans. Impaired loans and leases which do not share similar risk characteristics with other loans are individually evaluated for credit losses. Specific reserves are established for loans and leases with deterioration in the present value of expected future cash flows or, in the case of collateral-dependent loans and leases, any increase in the loan or lease amortized cost basis over the fair value of the underlying collateral discounted for estimated selling costs. In contrast, the loans and leases which share similar risk characteristics and are not included in the individually evaluated population are collectively evaluated for credit losses. The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated. At December 31, 2022 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Individually evaluated $ 62 $ 2,982 $ 68 $ 3,112 Collectively evaluated 68,092 23,622 3,656 95,370 Total $ 68,154 $ 26,604 $ 3,724 $ 98,482 Loans and Leases: Individually evaluated $ 11,039 $ 14,346 $ 3,863 $ 29,248 Collectively evaluated 4,393,109 2,002,153 1,219,878 7,615,140 Total $ 4,404,148 $ 2,016,499 $ 1,223,741 $ 7,644,388 At December 31, 2021 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Individually evaluated $ — $ 3,236 $ 38 $ 3,274 Collectively evaluated 69,213 23,819 2,778 95,810 Total $ 69,213 $ 27,055 $ 2,816 $ 99,084 Loan and Lease Losses: Individually evaluated $ 16,906 $ 10,944 $ 4,853 $ 32,703 Collectively evaluated 4,086,134 1,876,192 1,159,428 7,121,754 Total $ 4,103,040 $ 1,887,136 $ 1,164,281 $ 7,154,457 Troubled Debt Restructured Loans and Leases A specific valuation allowance for losses on troubled debt restructured loans is initially determined by comparing the net carrying amount of the troubled debt restructured loan with the restructured loan's cash flows discounted at the original effective rate. The following table sets forth information regarding troubled debt restructured loans and leases at the dates indicated: At December 31, 2022 At December 31, 2021 (In Thousands) Troubled debt restructurings: On accrual $ 16,385 $ 12,580 On nonaccrual 3,527 6,709 Total troubled debt restructurings $ 19,912 $ 19,289 Total troubled debt restructuring loans and leases increased by $0.6 million to $19.9 million at December 31, 2022 from $19.3 million at December 31, 2021. The increase was primarily driven by new TDR loans during the year ended December 31, 2022. The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios, that were modified during the periods indicated, are as follows: At and for the Year Ended December 31, 2022 Recorded Investment Specific Defaulted (1) Number of At At End of Nonaccrual Number of Recorded (Dollars in Thousands) Commercial 15 6,227 6,227 2,230 — — — Equipment financing 23 1,203 1,445 — 606 5 301 Home equity 1 106 106 — — — — Total loans and leases 39 7,536 7,778 2,230 606 5 301 ______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. At and for the Year Ended December 31, 2021 Recorded Investment Specific Defaulted (1) Number of At At End of Nonaccrual Number of Recorded (Dollars in Thousands) Commercial real estate 1 $ 497 $ 493 $ — $ — — $ — Commercial 1 19 17 — — — — Equipment financing 46 3,979 3,500 818 2,364 13 1,491 Residential mortgage 2 1,072 1,061 — 207 — — Home equity 1 312 312 — — — — Total loans and leases 51 $ 5,879 $ 5,383 $ 818 $ 2,571 13 $ 1,491 ______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. At and for the Year Ended December 31, 2020 Recorded Investment Specific Defaulted (1) Number of At At End of Nonaccrual Number of Recorded (Dollars in Thousands) Commercial real estate — $ — $ — $ — $ — 1 $ 215 Commercial 2 3,029 2,970 — — — — Equipment financing 24 1,366 1,914 173 1,874 — — Home equity 2 476 465 — 265 — — Total loans and leases 28 4,871 5,349 173 2,139 1 215 ______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. The following table sets forth the Company's end-of-period balances for troubled debt restructurings that were modified during the periods indicated, by type of modification. Year Ended 2022 2021 2020 (In Thousands) Extended maturity $ 6,931 $ 2,704 $ 3,297 Adjusted principal — — 40 Adjusted interest rate — — 113 Combination maturity, principal, interest rate 847 2,679 1,899 Total loans modified $ 7,778 $ 5,383 $ 5,349 The TDR loans and leases that were modified for the year ending December 31, 2022 and 2021 were $7.8 million and $5.4 million, respectively. Net charge-offs of the performing and nonperforming troubled debt restructuring loans and leases for the years ending December 31, 2022, and 2021, were $0.1 million and $0.7 million, respectively. The commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs as of December 31, 2022 was $1.9 million. As of December 31, 2021, there were $1.3 million commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment consist of the following: At December 31, Estimated 2022 2021 (In Thousands) (In Years) Land $ 12,329 $ 12,329 NA Fine art 620 553 NA Computer equipment 16,332 15,668 3 Vehicles 255 183 3 to 5 Core processing system and software 25,864 22,485 3 to 7.5 Furniture, fixtures and equipment 15,882 15,213 5 to 25 Office building and improvements 92,328 91,104 10 to 40 Total 163,610 157,535 Accumulated depreciation and amortization 92,219 87,176 Total premises and equipment $ 71,391 $ 70,359 Depreciation and amortization expense is calculated using the straight-line method and is included in occupancy and equipment and data processing expense in the Consolidated Statements of Income. For the years ended December 31, 2022, 2021 and 2020, depreciation and amortization expense related to premises and equipment totaled $6.1 million, $5.9 million, and $5.7 million, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying value of goodwill for the periods indicated were as follows: Year Ended December 31, 2022 2021 (In Thousands) Balance at beginning of year $ 160,427 $ 160,427 Additions — — Balance at end of year $ 160,427 $ 160,427 The following is a summary of the Company's other intangible assets: At December 31, 2022 At December 31, 2021 Gross Accumulated Carrying Gross Accumulated Carrying (In Thousands) Other intangible assets: Core deposits $ 38,294 $ 37,602 $ 692 $ 38,294 $ 37,107 $ 1,187 Trade name 1,600 511 1,089 1,600 511 1,089 Trust relationship 1,568 1,568 — 1,568 1,568 — Other intangible 442 442 — 442 442 — Total other intangible assets $ 41,904 $ 40,123 $ 1,781 $ 41,904 $ 39,628 $ 2,276 At December 31, 2013, the Company concluded that the BankRI name would continue to be utilized in its marketing strategies; therefore, the trade name with carrying value of $1.1 million, has an indefinite life and ceased to amortize. The weighted-average amortization period for the core deposit intangible is 5.36 years. There were no impairment losses relating to other acquisition-related intangible assets recorded during the years ended December 31, 2022, 2021 and 2020. The estimated aggregate future amortization expense for other intangible assets for each of the next five years and thereafter is as follows: Year ended December 31: Amount (In Thousands) 2023 $ 262 2024 151 2025 103 2026 74 2027 87 Thereafter 15 Total $ 692 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets BOLI BOLI is recorded at the cash surrender value of the policies, less any applicable cash surrender charges, and is recorded in other assets. As of December 31, 2022 and 2021, BankRI owned seven policies with a net cash surrender value of $43.7 million. As of December 31, 2022 and 2021, Brookline Bank, as successor-in-interest to First Ipswich Bank owned two policies with a net cash surrender value of $0.7 million, respectively. The Company recorded a total of $1.0 million, $1.2 million, and $1.0 million of tax exempt income from these nine policies in 2022, 2021, and 2020, respectively. They are included in the Company’s other non-interest income in the consolidated statements of income. Included in the 2021 income is a death benefit received on a former employee in the amount of $228 thousand. Affordable Housing Investments The Company invests in affordable housing projects that benefit low- and moderate-income individuals. As of December 31, 2022, the Company had investments in 19 of these projects. The project sponsor or general partner controls the project's management. In each case, the Company is a limited partner with less than 50% of the outstanding equity interest in any single project. The Company uses the proportional amortization method to account for investments in affordable housing projects. The proportional amortization method calculation and the operating losses or gains for these investments are included as a component of the provision for income taxes in the Company’s consolidated statements of income. Under the proportional amortization method, the initial costs of the investment in qualified affordable housing projects is amortized based on the tax credits and other benefits received. Further information regarding the Company's investments in affordable housing projects follows: At December 31, 2022 2021 (In Thousands) Investments in affordable housing projects included in other assets $ 21,985 $ 24,446 Unfunded commitments related to affordable housing projects included in other liabilities 5,211 4,987 Investment in affordable housing tax credits 2,941 2,988 Investment in affordable housing tax benefits 547 411 For the year ended December 31, 2022 2021 2020 (In Thousands) Investment amortization included in provision for income taxes $ 3,268 $ 3,192 $ 3,097 Amount recognized as income tax benefit 547 411 823 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Deposits A summary of deposits follows: December 31, 2022 December 31, 2021 Amount Weighted Amount Weighted (Dollars in Thousands) Demand checking accounts $ 1,802,518 — % $ 1,888,462 — % NOW accounts 544,118 0.18 % 604,097 0.08 % Savings accounts 762,271 0.70 % 915,804 0.09 % Money market accounts 2,174,952 1.63 % 2,358,306 0.26 % Total core deposit accounts 5,283,859 0.79 % 5,766,669 0.13 % Certificate of deposit accounts maturing: Within six months $ 379,017 0.95 % $ 493,512 0.53 % After six months but within 1 year 236,049 1.60 % 432,601 0.56 % After 1 year but within 2 years 269,243 2.81 % 128,714 1.35 % After 2 years but within 3 years 22,585 1.83 % 32,250 2.34 % After 3 years but within 4 years 8,859 0.70 % 19,568 1.49 % After 4 years but within 5 years 12,177 1.77 % 10,852 0.67 % 5+ Years 213 3.02 % 198 0.35 % Total certificate of deposit accounts 928,143 1.68 % 1,117,695 0.71 % Brokered deposit accounts 310,144 3.00 % 165,542 0.04 % Total deposits $ 6,522,146 1.02 % $ 7,049,906 0.22 % Certificate of deposit accounts issued in amounts of $250,000 or more totaled $272.2 million and $359.3 million as of December 31, 2022 and 2021, respectively. Interest expense on deposit balances is summarized as follows Year Ended December 31, 2022 2021 2020 (In Thousands) Interest-bearing deposits: NOW accounts $ 853 $ 493 $ 484 Savings accounts 2,228 950 1,503 Money market accounts 15,392 6,214 9,519 Certificate of deposit accounts 8,210 11,758 30,355 Brokered deposit accounts 2,909 1,298 6,565 Total interest-bearing deposits $ 29,592 $ 20,713 $ 48,426 Related Party Deposits Deposit accounts of directors, executive officers and their affiliates totaled $72.8 million and $109.6 million as of December 31, 2022 and 2021, respectively. Collateral Pledged to Deposits As of December 31, 2022 and 2021, $205.6 million and $340.9 million, respectively, of collateral was pledged for municipal deposits and TT&L. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds are comprised of the following: At December 31, 2022 2021 (In Thousands) Advances from the FHLBB $ 1,237,823 $ 147,907 Subordinated debentures and notes 84,044 83,897 Other borrowed funds 110,785 125,517 Total borrowed funds $ 1,432,652 $ 357,321 Interest expense on borrowed funds for the periods indicated is as follows: Year Ended December 31, 2022 2021 2020 (In Thousands) Advances from the FHLBB $ 9,355 $ 3,302 $ 12,842 Subordinated debentures and notes 5,133 4,967 5,038 Other borrowed funds 1,335 174 348 Total interest expense on borrowed funds $ 15,823 $ 8,443 $ 18,228 Collateral Pledged to Borrowed Funds As of December 31, 2022 and 2021, $2.1 billion and $2.4 billion, respectively, of investment securities and loans and leases, were pledged as collateral for repurchase agreements, swap agreements, FHLBB borrowings, and municipal deposits and TT&L. The Banks did not have any outstanding FRB borrowings as of December 31, 2022 and 2021. FHLBB Advances FHLBB advances mature as follows: At December 31, 2022 2021 Amount Callable Weighted Amount Callable Weighted (Dollars in Thousands) Within 1 year $ 1,003,300 $ — 4.37 % $ 114,798 $ — 0.35 % Over 1 year to 2 years 226,100 — 4.83 % 23,300 — 0.51 % Over 2 years to 3 years 1,371 — 0.41 % 1,100 — — % Over 3 years to 4 years — — — % 1,418 — 0.55 % Over 4 years to 5 years 364 — 0.76 % — — — % Over 5 years 6,688 — 2.83 % 7,291 — 2.73 % $ 1,237,823 $ — 4.44 % $ 147,907 $ — 0.49 % Actual maturities of the advances may differ from those presented above since the FHLBB has the right to call certain advances prior to the scheduled maturity. The FHLBB advances are secured by blanket pledge agreements which require the Banks to maintain certain qualifying assets as collateral. The Banks did not have any FRB borrowings as of December 31, 2022. Total available borrowing capacity for advances from the FHLBB and FRB was $1.9 billion as of December 31, 2022 for the Banks. The total amount of qualifying collateral for FHLBB and FRB borrowings was $2.8 billion as of December 31, 2022. Other Borrowed Funds Information concerning other borrowed funds is as follows for the periods indicated below: Year Ended December 31, 2022 2021 (Dollars In Thousands) Outstanding at end of year $ 110,785 $ 125,517 Average outstanding for the year 118,383 88,818 Maximum outstanding at any month-end 150,486 152,084 Weighted average rate at end of year 2.38 % 0.15 % Weighted average rate paid for the year 1.13 % 0.20 % In addition to advances from the FHLBB and subordinated debentures and notes, the Company utilizes other funding sources as part of the overall liquidity strategy. Those funding sources include repurchase agreements and committed and uncommitted lines of credit with several financial institutions. The Company periodically enters into repurchase agreements with its larger deposit and commercial customers as part of its cash management services which are typically overnight borrowings. Repurchase agreements with customers decreased $43.5 million to $52.0 million as of December 31, 2022 from $95.5 million as of December 31, 2021. The Company has access to a $30.0 million committed line of credit as of December 31, 2022. As of December 31, 2022 and December 31, 2021, the Company did not have any borrowings on this committed line of credit outstanding. The Banks also have access to funding through several uncommitted lines of credit of $863.0 million. As of December 31, 2022, the Company had no borrowings on outstanding uncommitted lines of credit compared to December 31, 2021, when the Company had $30.0 million borrowings on outstanding uncommitted lines of credit. Subordinated Debentures and Notes On September 15, 2014, the Company issued $75.0 million of 6.0% fixed-to-floating subordinated notes due September 15, 2029. The Company is obligated to pay 6.0% interest semiannually between September 2014 and September 2024. Subsequently, the Company is obligated to pay 3-month LIBOR plus 3.315% quarterly until the notes mature in September 2029. The following table summarizes the Company's subordinated debentures and notes at the dates indicated. Carrying Amount Issue Date Rate Maturity Date Next Call Date December 31, 2022 December 31, 2021 (Dollars in Thousands) June 26, 2003 Variable; 3-month LIBOR + 3.10% June 26, 2033 March 25, 2023 $ 4,887 $ 4,868 March 17, 2004 Variable; 3-month LIBOR + 2.79% March 17, 2034 March 16, 2023 4,830 4,802 September 15, 2014 6.0% Fixed-to-Variable; 3-month LIBOR + 3.315% September 15, 2029 September 15, 2024 74,327 74,227 Total $ 84,044 $ 83,897 On and after July 3, 2023 (the first London banking day after June 30, 2023), references to 3-month LIBOR will mean the 3-month CME Term SOFR. The above carrying amounts of the acquired subordinated debentures included $0.3 million of accretion adjustments and $0.7 million of capitalized debt issuance costs as of December 31, 2022. This compares to $0.3 million of accretion adjustments and $0.8 million of capitalized debt issuance costs as of December 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance Sheet Financial Instruments The Company is party to off-balance sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credits, and loan level derivatives. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received. The contract amounts reflect the extent of the involvement the Company has in particular classes of these instruments. Such commitments involve, to varying degrees, elements of credit risk and interest-rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss in the event of non-performance by the counterparty is represented by the fair value of the instruments. The Company uses the same policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments with off-balance-sheet risk at the dates indicated follow: At December 31, 2022 2021 (In Thousands) Financial instruments whose contract amounts represent credit risk: Commitments to originate loans and leases: Commercial real estate $ 414,217 $ 110,798 Commercial 291,188 162,931 Residential mortgage 14,036 28,685 Unadvanced portion of loans and leases 1,202,738 987,482 Unused lines of credit: Home equity 700,201 611,212 Other consumer 97,313 64,589 Other commercial 526 414 Unused letters of credit: Financial standby letters of credit 13,584 16,143 Performance standby letters of credit 31,330 17,145 Commercial and similar letters of credit 2,619 5,219 Interest rate derivatives 150,000 6,000 Loan level derivatives: Receive fixed, pay variable 1,489,709 1,324,609 Pay fixed, receive variable 1,489,709 1,324,609 Risk participation-out agreements 393,624 288,374 Risk participation-in agreements 75,223 77,016 Foreign exchange contracts: Buys foreign currency, sells U.S. currency 2,383 2,004 Sells foreign currency, buys U.S. currency 2,400 2,006 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if any, is based on management's credit evaluation of the borrower. Standby and commercial letters of credits are conditional commitments issued by the Company to guarantee performance of a customer to a third party. These standby and commercial letters of credit are primarily issued to support the financing needs of the Company's commercial customers. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The reserve for unfunded credit commitments, which is included in other liabilities, was $20.6 million and $14.8 million as of December 31, 2022 and December 31, 2021, respectively. See Note 6, "Loans and Leases" for further discussion on the Company's methodology for determining the ACL, which includes the reserve for unfunded commitments. From time to time, the Company enters into loan level derivatives, risk participation agreements or foreign exchange contracts with commercial customers and third-party financial institutions. These derivatives allow the Company to offer long-term fixed-rate commercial loans while mitigating the interest-rate or foreign exchange risk of holding those loans. In a loan level derivative transaction, the Company lends to a commercial customer on a floating-rate basis and then enters into a loan level derivative with that customer. Concurrently, the Company enters into offsetting swaps with a third-party financial institution, effectively minimizing its net interest-rate risk exposure resulting from such transactions. The fair value of these derivatives are presented in Footnote 16. Lease Commitments The Company leases certain office space under various noncancellable operating leases as well as other assets. These leases have original terms ranging from 3 years to over 25 years. Certain leases contain renewal options and escalation clauses which can increase rental expenses based principally on the consumer price index and fair market rental value provisions. All of the Company's current outstanding leases are classified as operating leases. The Company considered the following criteria when determining whether a contract contains a lease, the existence of an identifiable asset and the right to obtain substantially all of the economic benefits from use of the asset through the period. The Company used the FHLB classic advance rates available as of December 31, 2022 and 2021 as the discount rate to determine the net present value of the remaining lease payments. At December 31, 2022 At December 31, 2021 At December 31, 2020 (In Thousands) The components of lease expense were as follow: Operating lease cost $ 6,305 $ 6,163 $ 6,386 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 6,481 $ 6,246 $ 6,518 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 2,082 $ 790 $ 72 Supplemental balance sheet information related to leases was as follows: Operating Leases Operating lease right-of-use assets $ 19,484 $ 20,508 $ 24,143 Operating lease liabilities 19,484 20,508 24,143 Weighted Average Remaining Lease Term Operating leases 7.39 6.36 6.95 Weighted Average Discount Rate Operating leases 3.5 % 3.1 % 3.2 % A summary of future minimum rental payments under such leases at the dates indicated follows: Year ended December 31, Minimum Rental Payments (In Thousands) 2023 $ 5,890 2024 4,482 2025 3,207 2026 2,387 2027 1,609 Thereafter 5,416 Total $ 22,991 Less imputed interest (3,507) $ 19,484 Certain leases contain escalation clauses for real estate taxes and other expenditures, which are not included above. Total rental expense was $6.0 million in 2022. This compares to total rent expense of $5.9 million and $6.1 million in 2021 and 2020, respectively. A portion of the Company's headquarters was rented to third-party tenants which generated rental income of $0.2 million in 2022 compared to $0.1 million and $0.2 million in 2021 and 2020 respectively. The increase over the last year is due to a negotiated lease in 2022 and the negotiated early termination of a lease in 2021 coupled with a modification to an existing lease for a retail tenant. Rental income was reported in non-interest income in the Company's consolidated statements of income. Legal Proceedings In the normal course of business, there are various outstanding legal proceedings. In the opinion of management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings. |
Earnings per Share ("EPS")
Earnings per Share ("EPS") | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share ("EPS") | Earnings per Share ("EPS") The following table is a reconciliation of basic EPS and diluted EPS: For the year ended December 31, 2022 2021 2020 Basic Fully Basic Fully Basic Fully (Dollars in Thousands, Except Per Share Amounts) Numerator: Net income $ 109,744 $ 109,744 $ 115,440 $ 115,440 $ 47,635 $ 47,635 Denominator: Weighted average shares outstanding 77,079,278 77,079,278 77,974,851 77,974,851 78,951,892 78,951,892 Effect of dilutive securities — 272,556 — 268,565 — 151,397 Adjusted weighted average shares outstanding 77,079,278 77,351,834 77,974,851 78,243,416 78,951,892 79,103,289 EPS $ 1.42 $ 1.42 $ 1.48 $ 1.48 $ 0.60 $ 0.60 |
Comprehensive Income_(Loss)
Comprehensive Income/(Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Comprehensive income (loss) represents the sum of net income (loss) and other comprehensive income (loss). For the years ended December 31, 2022, 2021 and 2020, the Company’s other comprehensive income (loss) include the following three components: (i) unrealized holding gains (losses) on investment securities available-for-sale; (ii) change in the fair value of cash flow hedges and (iii) adjustment of accumulated obligation for postretirement benefits. Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the periods indicated: Year Ended December 31, 2022 Investment Securities Available-for-Sale Net Change in Fair Value of Cash Flow Hedges Postretirement Accumulated Other (In Thousands) Balance at December 31, 2021 $ (183) $ 37 $ 36 $ (110) Other comprehensive income (loss) (60,265) (2,111) 452 (61,924) Reclassification adjustment for (income) expense recognized in earnings 255 (168) — 87 Balance at December 31, 2022 $ (60,193) $ (2,242) $ 488 $ (61,947) Year Ended December 31, 2021 Investment Securities Available-for-Sale Net Change in Fair Value of Cash Flow Hedges Postretirement Accumulated Other (In Thousands) Balance at December 31, 2020 $ 16,582 $ 7 $ (99) $ 16,490 Other comprehensive income (loss) (16,795) 37 183 (16,575) Reclassification adjustment for (income) expense recognized in earnings 30 (7) (48) (25) Balance at December 31, 2021 $ (183) $ 37 $ 36 $ (110) Year Ended December 31, 2020 Investment Securities Available-for-Sale Net Change in Fair Value of Cash Flow Hedges Postretirement Accumulated Other (In Thousands) Balance at December 31, 2019 $ 2,199 $ — $ 84 $ 2,283 Other comprehensive income (loss) 17,087 7 (248) 16,846 Reclassification adjustment for (income) expense recognized in earnings (2,704) — 65 (2,639) Balance at December 31, 2020 $ 16,582 $ 7 $ (99) $ 16,490 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company executes loan level derivative products such as interest rate swap agreements with commercial banking customers to aid them in managing their interest rate risk. The interest rate swap contracts allow the commercial banking customers to convert floating rate loan payments to fixed rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third party financial institution exchanges the customer's fixed rate loan payments for floating rate loan payments. As the interest rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Based on the Company's intended use for the loan level derivatives at inception, the Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging". The Company believes using interest rate derivatives adds stability to interest income and expense and allows the Company to manage its exposure to interest rate movements. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments. The Company enters into interest rate swaps as hedging instruments against the interest rate risk associated with the Company's FHLB borrowings. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income, and is reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The following table reflects the Company's derivative positions as of the date indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes. As of December 31, 2022, the Company had no interest rate swaps on borrowings. At December 31, 2022 Notional Amount Average Maturity Weighted Average Rate Fair Value Current Rate Paid Received Fixed Swap Rate (in thousands) (in years) (in thousands) Interest rate swaps on loans $ 150,000 3.77 4.11 % 3.26 % $ (3,030) As of December 31, 2021, the Company paid its counterparties a fixed weighted average interest rate of 0.11% over a maximum period of 8 months for derivative instruments that are designated as and qualify as cash flow hedging instruments on borrowings. The Company utilizes risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings at each reporting period. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. The Company offers foreign exchange contracts to commercial borrowers to accommodate their business needs. These foreign exchange contracts do not qualify as hedges for accounting purposes. To mitigate the market and liquidity risk associated with these foreign exchange contracts, the Company enters into similar offsetting positions. Asset derivatives and liability derivatives are included in other assets and accrued expenses and other liabilities on the consolidated balance sheets. The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging: Notional Amount Maturing Number of Positions Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2022 (Dollars In Thousands) Loan level derivatives Receive fixed, pay variable 132 $ 71,547 $ 69,454 $ 141,498 $ 68,140 $ 1,139,070 $ 1,489,709 $ 103,640 Pay fixed, receive variable 132 71,547 69,454 141,498 68,140 1,139,070 1,489,709 103,640 Risk participation-out agreements 54 38,931 22,979 27,508 6,222 297,984 393,624 347 Risk participation-in agreements 8 18,421 — — 23,766 33,036 75,223 31 Foreign exchange contracts Buys foreign currency, sells U.S. currency 12 $ 2,383 $ — $ — $ — $ — $ 2,383 $ 130 Sells foreign currency, buys U.S. currency 12 2,400 — — — — 2,400 112 Notional Amount Maturing Number of Positions Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2021 (Dollars In Thousands) Loan level derivatives Receive fixed, pay variable 135 $ 8,244 $ 2,346 $ 83,461 $ 137,856 $ 1,092,702 $ 1,324,609 $ 63,798 Pay fixed, receive variable 135 8,244 2,346 83,461 137,856 1,092,702 1,324,609 63,798 Risk participation-out agreements 41 — 6,869 22,673 6,573 252,259 288,374 1,236 Risk participation-in agreements 8 — 18,718 — — 58,298 77,016 207 Foreign exchange contracts Buys foreign currency, sells U.S. currency 10 $ 2,004 $ — $ — $ — $ — $ 2,004 $ 9 Sells foreign currency, buys U.S. currency 11 2,006 — — — — 2,006 7 Changes in the fair value are recognized directly in the Company's consolidated statements of income and are included in other non-interest income Year Ended December 31, 2022 2021 (In Thousands) Net (loss) gain recognized in income on: Net risk participation agreements $ (714) $ (453) Foreign exchange contracts 16 (6) Total $ (698) $ (459) By using derivative financial instruments, the Company exposes itself to credit risk which is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative is negative, the Company owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that management believes to be creditworthy and by limiting the amount of exposure to each counterparty by either cross collateralizing the underlying hedged loan or through bilateral posting of collateral to cover exposure. As the swaps are subject to master netting agreements, the Company had limited exposure relating to loan level derivatives with institutional counterparties as of December 31, 2022 and 2021. The estimated net credit risk exposure for derivative financial instruments was zero as of December 31, 2022, and 2021. Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. The Company posted collateral of $2.4 million and $126.9 million in the normal course of business as of December 31, 2022 and 2021, respectively. The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the consolidated balance sheet at the dates indicated: At December 31, 2022 Gross Gross Amounts Net Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Net Amount Financial Instruments Pledged Cash Collateral Pledged (In Thousands) Asset derivatives Derivatives designated as hedging instruments: Interest rate derivatives $ 34 $ — $ 34 $ — $ — $ 34 Derivatives not designated as hedging instruments: Loan level derivatives $ 108,963 $ — $ 108,963 $ — $ — $ 108,963 Risk participation-out agreements 347 — 347 — — 347 Foreign exchange contracts 130 — 130 — — 130 Total $ 109,474 $ — $ 109,474 $ — $ — $ 109,474 Liability derivatives Derivatives designated as hedging instruments: Interest rate derivatives $ 3,170 $ — $ 3,170 $ — $ — $ 3,170 Derivatives not designated as hedging instruments: Loan level derivatives $ 108,963 $ — $ 108,963 $ 2,393 $ — $ 106,570 Risk participation-in agreements 31 — 31 — — 31 Foreign exchange contracts 112 — 112 — — 112 Total $ 112,276 $ — $ 112,276 $ 2,393 $ — $ 109,883 At December 31, 2021 Gross Gross Amounts Net Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Net Amount Financial Instruments Pledged Cash Collateral Pledged (In Thousands) Asset derivatives Derivatives designated as hedging instruments: Interest rate derivatives $ 43 $ — $ 43 $ — $ — $ 43 Derivatives not designated as hedging instruments: Loan level derivatives $ 73,462 $ — $ 73,462 $ — $ — $ 73,462 Risk participation-out agreements 1,236 — 1,236 — — 1,236 Foreign exchange contracts 9 — 9 — — 9 Total $ 74,750 $ — $ 74,750 $ — $ — $ 74,750 Liability derivatives Derivatives designated as hedging instruments: Interest rate derivatives $ 1 $ — $ 1 $ — $ — $ 1 Derivatives not designated as hedging instruments: Loan level derivatives $ 73,462 $ — $ 73,462 $ 118,461 $ 8,410 $ (53,409) Risk participation-in agreements 207 — 207 — — 207 Foreign exchange contracts 7 — 7 — — 7 Total $ 73,677 $ — $ 73,677 $ 118,461 $ 8,410 $ (53,194) The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution. Fair Value Year Ended December 31, 2022 Year Ended December 31, 2021 (Dollars in Thousands) Derivatives designated as hedges $ (3,136) $ 42 (Loss) in OCI on derivatives (effective portion), net of tax $ (2,242) $ 37 Gain (loss) reclassified from OCI into interest income or interest expense (effective portion) $ 61 $ 7 The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to Interest expense as interest payments are made or received on the Company’s interest rate swaps. The Company monitors the risk of counterparty default on an ongoing basis. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense is comprised of the following amounts: Year Ended December 31, 2022 2021 2020 (In Thousands) Current provision: Federal $ 17,414 $ 25,608 $ 22,450 State 8,434 8,119 7,077 Total current provision 25,848 33,727 29,527 Deferred provision (benefit) Federal 3,994 3,972 (11,452) State 363 1,452 (3,633) Total deferred provision (benefit) 4,357 5,424 (15,085) Total provision for income taxes $ 30,205 $ 39,151 $ 14,442 Total provision for income taxes differed from the amounts computed due to the following: Year Ended December 31, 2022 2021 2020 (Dollars In Thousands) Expected income tax expense at statutory federal tax rate $ 29,390 $ 32,464 $ 13,036 State taxes, net of federal income tax benefit 6,950 7,561 2,722 Bank-owned life insurance (215) (261) (212) Tax-exempt interest income (163) (171) (220) Merger and acquisition expense 302 — — Energy tax credits (6,082) — — Investments in affordable housing projects (544) (565) (595) Other, net 567 123 (289) Total provision for income taxes $ 30,205 $ 39,151 $ 14,442 Effective income tax rate 21.6 % 25.3 % 23.3 % The Company's effective tax rate was 21.6% as of December 31, 2022 compared to 25.3% as of December 31, 2021. The Company's effective tax rate was lower in 2022 due to the Company's participation in energy tax credit investments throughout the year. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at the dates indicated are as follows: At December 31, 2022 2021 (In Thousands) Deferred tax assets: Allowance for credit losses $ 30,901 $ 29,529 Right-of-use asset - operating leases 5,048 5,312 Deferred compensation 5,669 5,491 Identified intangible assets and goodwill 5,462 5,953 Supplemental Executive Retirement Plans 2,493 3,165 Postretirement benefits 1,187 517 Nonaccrual interest 558 817 Restricted stock and stock option plans 770 480 Unrealized loss on investment securities available-for-sale 17,019 52 Employee stock ownership plan — 27 Unamortized PPP fee income — 429 Other 569 486 Total gross deferred tax assets 69,676 52,258 Deferred tax liabilities: Operating leases - liability 5,048 5,312 Identified intangible assets and goodwill 1,910 1,952 Deferred loan origination costs, net 3,507 3,238 Depreciation 277 829 Prepaid expense 290 159 Accrued Expense 5,463 774 Acquisition fair value adjustments 944 1,007 Total gross deferred tax liabilities 17,439 13,271 Net deferred tax asset $ 52,237 $ 38,987 The Company has determined that a valuation allowance is not required for any of its deferred tax assets because it believes that it is more likely than not that these assets will reverse against future taxable income. For federal income tax purposes, the Company has a $1.8 million reserve for credit losses which remains subject to recapture. If any portion of the reserve is used for purposes other than to absorb the losses for which it was established, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve only to absorb credit losses, no provision has been made for the $0.5 million liability that would result if 100% of the reserve were recaptured. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock The Company is authorized to issue 50,000,000 shares of serial preferred stock, par value $0.01 per share, from time to time in one or more series subject to limitations of law. The Board of Directors is authorized to fix the designations, powers, preferences, limitations and rights of the shares of each such series. As of December 31, 2022, there were no shares of preferred stock issued. Capital Distributions and Restrictions Thereon The Company is a legal entity separate and distinct from each of the Banks, Brookline Securities Corp. and Clarendon Private. The Company's primary source of revenue is dividends paid to it by the Banks, Brookline Securities Corp. and Clarendon Private. The FRB has authority to prohibit the Company from paying dividends to the Company's shareholders if such payment is deemed to be an unsafe or unsound practice. The FRB has indicated generally that it may be an unsafe or unsound practice for bank holding companies to pay dividends unless the bank holding company's net income over the preceding year is sufficient to fund the dividends and the expected rate of earnings retention is consistent with the organization's capital needs, asset quality and overall financial condition. The FRB also has the authority to use its enforcement powers to prohibit the Banks from paying dividends to the Company if, in its opinion, the payment of dividends would constitute an unsafe or unsound practice. Federal law also prohibits the payment of dividends by a bank that will result in the bank failing to meet its applicable capital requirements on a pro forma basis. In addition, a state bank that is a member of the Federal Reserve System may not declare or pay a dividend if the total of all dividends declared during the calendar year, including the proposed dividend, exceeds the sum of the bank's net income (as reportable in its Reports of Condition and Income) during the current calendar year and the retained net income of the prior two calendar years, unless the dividend has been approved by the FRB. Payment of dividends by a bank is also restricted pursuant to various state regulatory limitations, including those enforced by the Massachusetts Division of Banks in the case of Brookline Bank and the Banking Division of the Rhode Island Department of Business Regulation in the case of BankRI. Common Stock Repurchases On March 9, 2020, the Company's Board of Directors (the "Board") approved a stock repurchase program authorizing management to repurchase up to $10.0 million bringing the total authorized amount to $20.0 million. Effective March 24, 2020, the Company suspended the Program. On October 28, 2020, the Board authorized the resumption of the Program. In 2020, 1,715,730 shares of the Company's common stock were repurchased by the Company at a weighted average price of $11.66. On January 27, 2021, the Board approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company's common stock commencing on February 1, 2021 and ending on December 31, 2021. As of September 30, 2021, 690,253 shares of the Company's common stock were repurchased by the Company at a weighted average price of $14.46. On November 10, 2021, the Board approved a stock repurchase program authorizing management to repurchase up to $20.0 million of the Company's common stock, commencing on November 15, 2021 and ending on December 31, 2022. As of June 24, 2022, 956,341 shares of the Company's common stock were repurchased by the Company at a weighted average price of $14.41. The Company suspended the program on June 24, 2022 and the program expired at the end of the year. Repurchases may be made from time to time depending on market conditions and other factors, and will be conducted through open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with the Securities and Exchange Commission Rule 10b5-1. There is no guarantee as to the exact number of shares, if any, to be repurchased by the Company. Restricted Retained Earnings As part of the stock offering in 2002 and as required by regulation, Brookline Bank established a liquidation account for the benefit of eligible account holders and supplemental eligible account holders who maintain their deposit accounts at Brookline Bank after the stock offering. In the unlikely event of a complete liquidation of Brookline Bank (and only in that event), eligible depositors who continue to maintain deposit accounts at Brookline Bank shall be entitled to receive a distribution from the liquidation account. Accordingly, retained earnings of the Company are deemed to be restricted up to the balance of the liquidation account. The liquidation account balance is reduced annually to the extent that eligible depositors have reduced their qualifying deposits as of each anniversary date. Subsequent increases in deposit account balances do not restore an account holder's interest in the liquidation account. The liquidation account totaled $9.9 million (unaudited), $11.3 million (unaudited), and $11.5 million (unaudited) at December 31, 2022, 2021 and 2020, respectively. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements The Company's primary source of cash is dividends from the Banks and Brookline Securities Corp. The Banks are subject to certain restrictions on the amount of dividends that they may declare without prior regulatory approval. In addition, the dividends declared cannot be in excess of the amount which would cause the Banks to fall below the minimum required for capital adequacy purposes. The Company is a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended and as such, must comply with the capital requirements of the FRB at the consolidated level. As member banks of the FRB, Brookline Bank and BankRI are also required to comply with the regulatory capital requirement of the FRB. The FRB has promulgated regulations imposing minimum capital requirements for bank holding companies and state member banks as well as prompt corrective action regulations for state member banks that implement the system of prompt corrective action established by Section 38 of the Federal Deposit Insurance Act, as amended (the "FDIA"). Under the prompt corrective action regulations in effect as of December 31, 2022, a bank is "well-capitalized" if it has: (1) a total risk-based capital ratio of 10.0% or greater; (2) a Tier 1 risk-based capital ratio of 8.0% or greater; (3) a common equity Tier 1 capital ratio of 6.5% or greater; (4) a Tier 1 leverage ratio of 5.0% or greater; and (5) is not subject to any written agreement, order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines, the Company and each of the Banks must meet specific capital guidelines that involve quantitative measures of the Company's and the Banks' assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, the prompt corrective action rules applicable to state member banks establish a framework of supervisory actions for state member banks that are not at least adequately capitalized. The Company's and the Banks' capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Bank holding companies are not subject to prompt corrective action requirements. However, a bank holding company is considered "well capitalized" for purpose of the FRB's Regulation Y if the bank holding company maintains on a consolidated basis a total risk-based capital ratio of 10.0% or greater and a Tier 1 risk-based capital ratio of 6.0% or greater and is not subject to any written agreement under capital directive or prompt correction action directive issued by the FRB to meet and maintain a specific capital level for any capital measure. The Company and the Banks are required to maintain a capital conservation buffer composed of common equity Tier 1 capital equal to 2.5% of risk-weighted assets above the amounts required to be adequately capitalized in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. Capital ratios required to be considered well-capitalized exceed the ratios required under the capital conservation buffer requirement at December 31, 2022. As of December 31, 2022, the Company and the Banks exceeded all regulatory capital requirements and were considered “well-capitalized” under applicable rules. The following table presents actual and required capital ratios as of December 31, 2022 for the Company and the Banks. Actual Minimum Required for Capital Adequacy Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer Minimum Required to be Considered Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) At December 31, 2022: Brookline Bancorp, Inc. Common equity Tier 1 capital ratio (1) $ 893,978 12.05 % $ 333,851 4.50 % $ 519,323 7.00 % N/A N/A Tier 1 leverage capital ratio (2) 903,695 10.26 % 352,318 4.00 % 352,318 4.00 % N/A N/A Tier 1 risk-based capital ratio (3) 903,695 12.18 % 445,170 6.00 % 630,657 8.50 % N/A N/A Total risk-based capital ratio (4) 1,071,078 14.44 % 593,395 8.00 % 778,831 10.50 % N/A N/A Brookline Bank Common equity Tier 1 capital ratio (1) $ 570,530 11.24 % $ 228,415 4.50 % $ 355,312 7.00 % $ 329,933 6.50 % Tier 1 leverage capital ratio (2) 570,530 9.72 % 234,786 4.00 % 234,786 4.00 % 293,483 5.00 % Tier 1 risk-based capital ratio (3) 570,530 11.24 % 304,553 6.00 % 431,451 8.50 % 406,071 8.00 % Total risk-based capital ratio (4) 634,226 12.50 % 405,905 8.00 % 532,750 10.50 % 507,381 10.00 % BankRI Common equity Tier 1 capital ratio (1) $ 244,422 10.32 % $ 106,579 4.50 % $ 165,790 7.00 % $ 153,948 6.50 % Tier 1 leverage capital ratio (2) 244,422 8.13 % 120,257 4.00 % 120,257 4.00 % 150,321 5.00 % Tier 1 risk-based capital ratio (3) 244,422 10.32 % 142,106 6.00 % 201,317 8.50 % 189,474 8.00 % Total risk-based capital ratio (4) 274,091 11.57 % 189,518 8.00 % 248,743 10.50 % 236,898 10.00 % _______________________________________________________________________________ (1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets. (2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets. (3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets. (4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets. The following table presents actual and required capital ratios as of December 31, 2021 for the Company and the Banks under the regulatory capital rules then in effect. Actual Minimum Required for Capital Adequacy Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer Minimum Required to be Considered Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) At December 31, 2021: Brookline Bancorp, Inc. Common equity Tier 1 capital ratio (1) $ 834,988 11.86 % $ 316,817 4.50 % $ 492,826 7.00 % N/A N/A Tier 1 leverage capital ratio (2) 844,658 10.15 % 332,870 4.00 % 332,870 4.00 % N/A N/A Tier 1 risk-based capital ratio (3) 844,658 11.99 % 422,681 6.00 % 598,798 8.50 % N/A N/A Total risk-based capital ratio (4) 1,007,237 14.30 % 563,489 8.00 % 739,580 10.50 % N/A N/A Brookline Bank Common equity Tier 1 capital ratio (1) $ 570,278 11.94 % $ 214,929 4.50 % $ 334,334 7.00 % $ 310,453 6.50 % Tier 1 leverage capital ratio (2) 570,278 10.51 % 217,042 4.00 % 217,042 4.00 % 271,303 5.00 % Tier 1 risk-based capital ratio (3) 570,278 11.94 % 286,572 6.00 % 405,977 8.50 % 382,096 8.00 % Total risk-based capital ratio (4) 630,194 13.20 % 381,936 8.00 % 501,291 10.50 % 477,420 10.00 % BankRI Common equity Tier 1 capital ratio (1) $ 260,679 11.36 % $ 103,262 4.50 % $ 160,630 7.00 % $ 149,156 6.50 % Tier 1 leverage capital ratio (2) 260,679 8.58 % 121,529 4.00 % 121,529 4.00 % 151,911 5.00 % Tier 1 risk-based capital ratio (3) 260,679 11.36 % 137,683 6.00 % 195,050 8.50 % 183,577 8.00 % Total risk-based capital ratio (4) 289,454 12.61 % 183,635 8.00 % 241,020 10.50 % 229,543 10.00 % _______________________________________________________________________________ (1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets. (2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets. (3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets. (4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Postretirement Benefits Postretirement benefits are provided for part of the annual expense of health insurance premiums for certain retired employees and their dependents. No contributions are made by the Company to invest in assets allocated for the purpose of funding this benefit obligation. The following table presents the change in plan assets and change in benefit obligation: Year Ended 2022 2021 2020 (In Thousands) Change in plan assets: Fair value of plan assets at beginning of year $ — $ — $ — Employer contributions 34 35 38 Benefits paid (34) (35) (38) Fair value of plan assets at end of year $ — $ — $ — Change in benefit obligation: Benefit obligation at beginning of year $ 2,026 $ 2,095 $ 1,757 Service cost 64 67 55 Interest cost 55 50 56 Estimated benefits paid (34) (35) (38) Actuarial (gain) loss (581) (151) 265 Benefit obligation at end of year $ 1,530 $ 2,026 $ 2,095 Funded status at end of year $ 1,530 $ 2,026 $ 2,095 Accumulated benefit obligation at end of year $ 1,530 $ 2,026 $ 2,095 The liability for the postretirement benefits included in accrued expenses and other liabilities was $1.5 million, $2.0 million, and $2.1 million as of December 31, 2022, 2021 and 2020, respectively. The following table presents the components of net periodic postretirement benefit cost and other amounts recognized in other comprehensive income: Year Ended 2022 2021 2020 (In Thousands) Net periodic benefit expense: Service cost $ 64 $ 67 $ 55 Interest cost 55 50 56 Prior service credit — (2) (21) Actuarial gain — — — Net periodic benefit expense $ 119 $ 115 $ 90 Changes in postretirement benefit obligation recognized in other comprehensive income: Net actuarial (loss) gain 611 $ 185 $ (227) Prior service credit — (2) (21) Total pre-tax changes in postretirement benefit obligation recognized in other comprehensive income $ 611 $ 183 $ (248) The discount rate used to determine the actuarial present value of projected postretirement benefit obligations was 5.02% in 2022, 2.77% in 2021 and 2.44% in 2020. There is no estimated prior service credit that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2023. The actual health care trend used to measure the accumulated postretirement benefit obligation in 2022 for plan participants below age 65 and for plan participants over age 65 was 8.0% and 1.6%, respectively. In 2021, the rate for plan participants below age 65 and for plan participants over age 65 was (0.4)% and 4.7%, respectively. The health care trend rates for 2021 and 2022 are based on actual changes in medical premium rates for those years. The rates to be used in 2023 through 2026 are expected to be in the range of 7.5% to 6% and to decline gradually thereafter to 4.5%. Assumed health care trend rates may have a significant effect on the amounts reported for the postretirement benefit plan. A 1% change in assumed health care cost trend rates would have the following effects: Year Ended 1% Increase 1% Decrease (In Thousands) Effect on total service and interest cost components of net periodic postretirement benefit costs $ 25 $ (20) Effect on the accumulated postretirement benefit obligation 260 (213) 401(k) Plan The Company administers one 401(k) plan, which is a qualified, tax-exempt profit-sharing plan with a salary deferral feature under Section 401(k) of the Internal Revenue Code. Each employee, excluding temporary employees, who has attained the age of 21 is eligible to participate in the 401(k) plan by making voluntary contributions, subject to certain limits based on federal tax laws. The Company makes a matching contribution of the amount contributed by eligible employees, up to 5% of the employee's yearly compensation. Expenses associated with the plans were $3.8 million in 2022, $3.6 million in 2021, and $3.3 million in 2020. Nonqualified Deferred Compensation Plan The Company also maintains a Nonqualified Deferred Compensation Plan (the "Nonqualified Plan") under which certain participants may contribute the amounts they are precluded from contributing to the Company's 401(k) plan because of the qualified plan limitations, and additional compensation deferrals that may be advantageous for personal income tax or other planning reasons. Expenses associated with the Nonqualified Plan in 2022, 2021 and 2020 were $477.6 thousand, $409.4 thousand, and $239.5 thousand, respectively. Accrued liabilities associated with the Nonqualified Plan in 2022, 2021, and 2020 were $1.3 thousand, $109.5 thousand, and $36.1 thousand, respectively. Supplemental Executive Retirement Agreements The Company acquired two Supplemental Executive Retirement Plans (the "SERPs") as part of its acquisition of BankRI. The Company maintains the SERPs for certain senior executives who are entitled to an annual retirement benefit. As of December 31, 2022, there were 14 participants in the SERPs. The Company funded a Rabbi Trust to provide a partial funding source for the Company's liabilities under the SERPs. In 2016, a portion of the Company's BOLI assets were transferred into the Rabbi Trust as a replacement for the funds previously held in the Rabbi Trust. In 2020, additional BOLI assets were transferred into the Rabbi Trust. The Company records the liability for the SERPs based on an actuarial calculation in accordance with GAAP, and no actuarial gains and losses are recognized. Total benefit under the SERPs for the year ended December 31, 2022 was $2.1 million compared to an expense in 2021 of $6.0 thousand and an expense in 2020 of $1.5 million. Aggregate benefits payable included in accrued expenses and other liabilities as of December 31, 2022 and 2021 were $10.7 million and $13.3 million, respectively. The nominal discount rate used to determine the actuarial present value of projected benefits under the agreements was 5.00% and 2.75% in the years 2022 and 2021, respectively. Employee Stock Ownership Plan Brookline Bank established an Employee Stock Ownership Plan ("ESOP") on November 1, 1997. The Company's ESOP loan to Brookline Bank to purchase 546,986 shares of Company common stock was payable in quarterly installments bearing an interest rate of 8.50% per annum and matured December 31, 2022. The loan was repaid to the Company in the form of cash contributions from Brookline Bank, subject to federal tax law limits. The outstanding balance of the loan as of December 31, 2022 and 2021, was $0.0 million and $0.3 million, respectively, and is eliminated in consolidation. Shares of common stock used as collateral to secure the loan were released and available for allocation to eligible employees as the principal and interest on the loan was paid. The ESOP was amended in 2015 to permit all eligible participants in the ESOP as of July 1, 2015 or any eligible participants after July 1, 2015 to be fully vested in the ESOP upon the date of eligibility. Dividends on released shares are credited to the participants' ESOP accounts. Dividends on unallocated shares of common stock were generally applied towards payment of the loan. ESOP shares committed to be released are considered outstanding in determining earnings per share. As of December 31, 2022 and 2021, the ESOP held 0 and 24,660 unallocated shares, respectively, at an aggregate cost of $0.0 million and $0.1 million, respectively. The market value of such shares as of December 31, 2022 and 2021 was $0.0 million and $0.4 million, respectively. Compensation and employee benefits expense related to the ESOP was $0.4 million in 2022, $0.4 million in 2021 and $0.3 million in 2020, based on the commitment to release to eligible employees 24,660 shares in 2022, 26,454 shares in 2021 and 28,434 shares in 2020. Share-Based Compensation Plans As of December 31, 2022, the Company had one active equity plan: the 2021 Brookline Bancorp, Inc. Stock Option and Incentive Plan ("2021 Plan") with 1,750,000 authorized shares. As a result of the 2021 Plan having been approved by the Company's stockholders at the 2021 annual meeting of stockholders, the Company discontinued granting awards under the 2014 Equity Incentive Plan (the "2014 Plan"), and no further shares will be granted as awards under the 2014 Plan. The Company's 2011 Restricted Stock Plan (the "2011 Plan") expired in July 2021, and the Company has not issued shares from the 2011 Plan since the adoption of the 2014 Plan. The 2021 Plan and the 2014 Plan together referred to as the "Plans." Of the awarded shares, generally 50% vest ratably over three years with one-third of such shares vesting at each of the first, second and third anniversary dates of the awards. The remaining 50% of each award has a cliff vesting schedule and vest three years after the award date based on the level of the Company's achievement of identified performance targets in comparison to the level of achievement of such identified performance targets by a defined peer group comprised of 14 financial institutions. The specific performance measure targets are approved by annually by the Compensation Committee and are discussed in the Company's proxy statement. If a grantee leaves the Company prior to the third anniversary date of an award, any unvested shares are forfeited. Dividends declared with respect to shares awarded will be held by the Company and paid to the grantee only when the shares vest. Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company as treasury shares. Any shares not issued because vesting requirements are not met will be retired back to treasury and be made available again for issuance under the Plans. Total expense for the Plans was $3.3 million in 2022, $2.6 million in 2021 and $2.5 million in 2020, respectively. Total income tax benefits on vested awards was $0.0 million in 2022, $0.1 million in 2021, and $0.0 million in 2020. There were no income tax benefits on the 2020 vesting due to the stock price at the vesting date being lower than the stock price at the grant date. Dividends paid on unvested awards under the 2021 Plan, the 2014 Plan and the 2011 Plan were $0.2 million in 2022, $0.2 million in 2021, and $0.2 million in 2020. The following table presents information about the Company's restricted stock awards as of and for the year ending December 31, 2022: Restricted Stock Awards Outstanding Weighted Average Price (Dollars in Thousands, Except Per Share Amounts) Restricted Stock Awards: Outstanding at December 31, 2021 500,098 $ 12.70 Granted 310,349 13.80 Vested (210,551) 13.51 Forfeited / Canceled (3,384) 13.05 Added by Performance Factor 4,983 14.25 Outstanding at December 31, 2022 601,495 $ 12.99 Unrecognized compensation cost $ 2,908 Weighted average remaining recognition period (months) 21 months Stock Options Shares issued upon the exercise of a stock option may be either authorized but unissued shares or reacquired shares held by the Company as treasury shares. There are currently no outstanding options. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsA description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring and non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in the valuation techniques used during 2022 and 2021. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and 2021: Carrying Value as of December 31, 2022 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Investment securities available-for-sale: GSE debentures $ — $ 152,422 $ — $ 152,422 GSE CMOs — 18,220 — 18,220 GSE MBSs — 140,576 — 140,576 Corporate debt obligations — 13,764 — 13,764 U.S. Treasury bonds — 331,307 — 331,307 Foreign government obligations — 477 — 477 Total investment securities available-for-sale $ — $ 656,766 $ — $ 656,766 Interest rate derivatives — 34 — 34 Loan level derivatives — 108,963 — 108,963 Risk participation-out agreements — 347 — 347 Foreign exchange contracts — 130 — 130 Liabilities: Interest rate derivatives $ — $ 3,170 $ — $ 3,170 Loan level derivatives — 108,963 — 108,963 Risk participation-in agreements — 31 — 31 Foreign exchange contracts — 112 — 112 Carrying Value as of December 31, 2021 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Investment securities available-for-sale: GSE debentures $ — $ 217,505 $ — $ 217,505 GSE CMOs — 28,139 — 28,139 GSE MBSs — 199,772 — 199,772 Corporate debt obligations — 22,683 — 22,683 U.S. Treasury bonds — 252,268 — 252,268 Foreign government obligations — 499 — 499 Total investment securities available-for-sale $ — $ 720,866 $ — $ 720,866 Interest rate derivatives — 43 — 43 Loan level derivatives — 73,462 — 73,462 Risk participation-out agreements — 1,236 — 1,236 Foreign exchange contracts — 9 — 9 Liabilities: Interest rate derivatives $ — $ 1 $ — $ 1 Loan level derivatives $ — $ 73,462 $ — $ 73,462 Risk participation-in agreements — 207 — 207 Foreign exchange contracts — 7 — 7 Investment Securities Available-for-Sale The fair value of investment securities is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds where applicable. These investments include GSE debentures, GSE mortgage-related securities, SBA commercial loan asset backed securities, corporate debt securities, and trust preferred securities, all of which are included in Level 2. As of December 31, 2022 and December 31, 2021, no investment securities were valued using pricing models included in Level 3. Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with management's expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for a particular security. Derivatives and Hedging Instruments The fair value of interest rate derivatives designated as hedging instruments, loan level derivatives, risk participation agreements (RPA in/out), and foreign exchange contracts represent a Level 2 valuation and are based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves and foreign exchange rates where applicable. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. To date, the Company has not realized any losses due to a counterparty's inability to pay any net uncollateralized position. Refer also to Note 16, "Derivatives and Hedging Activities." There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis during 2022 or 2021. Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2022 and 2021 are summarized below: Carrying Value as of December 31, 2022 Level 1 Level 2 Level 3 Total (In Thousands) Assets measured at fair value on a non-recurring basis: Collateral-dependent impaired loans and leases $ — $ — $ 779 $ 779 OREO — — — — Repossessed assets — 408 — 408 Total assets measured at fair value on a non-recurring basis $ — $ 408 $ 779 $ 1,187 Carrying Value as of December 31, 2021 Level 1 Level 2 Level 3 Total (In Thousands) Assets measured at fair value on a non-recurring basis: Collateral-dependent impaired loans and leases $ — $ — $ 802 $ 802 OREO $ — $ — $ — $ — Repossessed assets — 718 — 718 Total assets measured at fair value on a non-recurring basis $ — $ 718 $ 802 $ 1,520 Collateral-Dependent Impaired Loans and Leases For nonperforming loans and leases where the credit quality of the borrower has deteriorated significantly, fair values of the underlying collateral were estimated using purchase and sales agreements (Level 2), or comparable sales or recent appraisals (Level 3), adjusted for selling costs and other expenses. Other Real Estate Owned The Company records OREO at the lower of cost or fair value. In estimating fair value, the Company utilizes purchase and sales agreements (Level 2) or comparable sales, recent appraisals or cash flows discounted at an interest rate commensurate with the risk associated with these cash flows (Level 3), adjusted for selling costs and other expenses. Repossessed Assets Repossessed assets are carried at estimated fair value less costs to sell based on auction pricing (Level 2). The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a recurring basis at the dates indicated. Fair Value Valuation Technique At December 31, 2022 At December 31, 2021 (Dollars in Thousands) Collateral-dependent impaired loans and leases $ 779 $ 802 Appraisal of collateral (1) Other real estate owned — — Appraisal of collateral (1) _______________________________________________________________________________ (1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments. Summary of Estimated Fair Values of Financial Instruments The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable. There were no transfers between levels during 2022. Fair Value Measurements Carrying Estimated Level 1 Level 2 Level 3 (In Thousands) At December 31, 2022 Financial assets: Loans and leases, net $ 7,545,906 $ 7,450,654 $ — $ — $ 7,450,654 Financial liabilities: Certificates of deposit 1,238,287 1,217,024 — 1,217,024 — Borrowed funds 1,432,652 1,431,716 — 1,431,716 — At December 31, 2021 Financial assets: Loans and leases, net $ 7,055,373 $ 6,983,524 $ — $ — $ 6,983,524 Restricted equity securities 28,981 28,981 — — 28,981 Financial liabilities: Certificates of deposit 1,283,237 1,283,012 — 1,283,012 — Borrowed funds 357,321 350,471 — 350,471 — Loans and Leases The fair values of performing loans and leases was estimated by segregating the portfolio into its primary loan and lease categories—commercial real estate mortgage, multi-family mortgage, construction, commercial, equipment financing, condominium association, residential mortgage, home equity and other consumer. These categories were further disaggregated based upon significant financial characteristics such as type of interest rate (fixed / variable) and payment status (current / past-due). Using the exit price valuation method, the Company discounts the contractual cash flows for each loan category using interest rates currently being offered for loans with similar terms to borrowers of similar quality and incorporates estimates of future loan prepayments. Restricted Equity Securities The fair values of certain restricted equity securities are estimated using observable inputs adjusted for other unobservable information, including but not limited to probability assumptions and similar discounts where applicable. These restricted equity securities are considered to be Level 3. Deposits The fair values of deposit liabilities with no stated maturity (demand, NOW, savings and money market savings accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the Company's core deposit relationships (deposit-based intangibles). Borrowed Funds The fair value of federal funds purchased is equal to the amount borrowed. The fair value of FHLBB advances and repurchase agreements represents contractual repayments discounted using interest rates currently available for borrowings with similar characteristics and remaining maturities. The fair values reported for retail repurchase agreements are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on borrowings with similar characteristics and maturities. The fair values reported for subordinated deferrable interest debentures are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar terms and maturities. |
Condensed Parent Company Financ
Condensed Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Parent Company Financial Statements | Condensed Parent Company Financial Statements Condensed Parent Company Balance Sheets as of December 31, 2022 and 2021 and Statements of Income for the years ended December 31, 2022, 2021 and 2020 are as follows. The Statement of Stockholders' Equity is not presented below as the parent company's stockholders' equity is that of the consolidated company. Balance Sheets At December 31, 2022 2021 (In Thousands) ASSETS Cash and due from banks $ 161,281 $ 88,823 Short-term investments 32 32 Total cash and cash equivalents 161,313 88,855 ESOP loan to Brookline Bank — 252 Restricted equity securities 152 252 Premises and equipment, net 4,167 2,121 Deferred tax asset 2,646 2,249 Investment in subsidiaries, at equity 877,833 956,045 Goodwill 35,267 35,267 Other assets 15,799 10,804 Total assets $ 1,097,177 $ 1,095,845 LIABILITIES AND STOCKHOLDERS' EQUITY Borrowed funds $ 84,044 $ 83,897 Accrued expenses and other liabilities 21,008 16,606 Total liabilities 105,052 100,503 Stockholders' equity: Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively 852 852 Additional paid-in capital 736,074 736,826 Retained earnings 412,019 342,639 Accumulated other comprehensive (loss) income (61,947) (110) Treasury stock, at cost; 7,731,445 shares and 7,037,464 shares, respectively (94,873) (84,718) Unallocated common stock held by ESOP; 0 shares and 24,660 shares, respectively — (147) Total stockholders' equity 992,125 995,342 Total liabilities and stockholders' equity $ 1,097,177 $ 1,095,845 Statements of Income Year Ended December 31, 2022 2021 2020 (In Thousands) Interest and dividend income: Dividend income from subsidiaries $ 130,500 $ 88,000 $ 42,000 Marketable and restricted equity securities — — 52 ESOP loan to Brookline Bank 13 34 56 Intercompany loan to Brookline Bank — 139 330 Total interest and dividend income 130,513 88,173 42,438 Interest expense: Borrowed funds 5,188 5,043 5,108 Net interest income 125,325 83,130 37,330 Non-interest income: Gain (loss) on securities, net 6,106 — (1,306) Other 425 13 123 Total non-interest income 6,531 13 (1,183) Non-interest expense: Compensation and employee benefits 1,531 1,540 403 Occupancy 1,735 1,605 1,689 Equipment and data processing (1) (255) (363) (745) Directors' fees 435 402 433 Franchise taxes 250 253 250 Insurance 663 678 570 Professional services 829 295 841 Advertising and marketing 82 62 35 Merger and acquisition expense 2,249 — — Other (1) (1,360) (1,288) (1,571) Total non-interest expense 6,159 3,184 1,905 Income before income taxes 125,697 79,959 34,242 Credit for income taxes (421) (1,837) (1,427) Income before equity in undistributed income of subsidiaries 126,118 81,796 35,669 Equity in undistributed income of subsidiaries (16,374) 33,644 11,966 Net income $ 109,744 $ 115,440 $ 47,635 _______________________________________________________________________________ (1) The Parent Company received a net benefit in 2022, 2021 and 2020 from the intercompany allocation of expense that is eliminated in consolidation. Statements of Cash Flows Year Ended December 31, 2022 2021 2020 (In Thousands) Cash flows from operating activities: Net income attributable to parent company $ 109,744 $ 115,440 $ 47,635 Adjustments to reconcile net income to net cash provided from operating activities: Equity in undistributed income of subsidiaries 16,374 (33,644) (11,966) Depreciation of premises and equipment 1,211 1,111 1,546 Amortization of debt issuance costs 100 100 100 Equity securities held-for-trading — — 2,569 Other operating activities, net (11,989) (5,416) (18,655) Net cash provided from (used for) operating activities 115,440 77,591 21,229 Cash flows from investing activities: Repayment of ESOP loan by Brookline Bank 252 250 250 Pay down of intercompany loan to Brookline Bank — 10,000 20,000 Proceeds from sale of restricted equity securities 100 — — Purchase of premises and equipment (3,257) (1,820) (555) Net cash (used for) provided from investing activities (2,905) 8,430 19,695 Cash flows from financing activities: Payment of dividends on common stock (40,077) (37,463) (36,396) Net cash (used for) provided from financing activities (40,077) (37,463) (36,396) Net increase (decrease) in cash and cash equivalents 72,458 48,558 4,528 Cash and cash equivalents at beginning of year 88,855 40,297 35,769 Cash and cash equivalents at end of year $ 161,313 $ 88,855 $ 40,297 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customers | Revenue from Contracts with Customers Overview Revenue from contracts with customers in the scope of ASC 606 ("Topic 606") is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements. In certain cases, other parties are involved with providing services to our customers. If the Company is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported in gross noninterest expense. If the Company is an agent in the transaction (referring to another party to provide services), the Company reports its net fee or commission retained as revenue. A substantial portion of the Company’s revenue is specifically excluded from the scope of Topic 606. This exclusion is associated with financial instruments, including interest income on loans and investment securities, in addition to loan derivative income and gains on loan and investment sales. For the revenue that is in-scope of Topic 606, the following is a description of principal activities from which the Company generates its revenue from contracts with customers, separated by the timing of revenue recognition. Revenue Recognized at a Point in Time The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. Revenue Recognized Over Time The Company recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes commissions on investments, insurance sales and service charges on deposit accounts. Fee revenue from service charges on deposit accounts represents the service charges assessed to customers who hold deposit accounts at the Banks. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company has evaluated subsequent events from the date of the Consolidated Financial Statements and accompanying Notes thereto through the date of issuance, and determined that, except for the merger that is discussed within Note 2, "Acquisitions", no other significant events were identified requiring recognition or disclosure. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | The Company's consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") as set forth by the Financial Accounting Standards Board ("FASB") in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. |
Consolidation | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. |
Use of Estimates | In preparing these consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the allowance for loan and lease losses, the determination of fair market values of assets and liabilities, including acquired loans, the review of goodwill and intangibles for impairment and the review of deferred tax assets for valuation allowance. The judgments used by management in applying these significant estimates may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting asset balances and cash flows, cash and cash equivalents includes cash on hand and due from banks (including cash items in process of clearing), interest-bearing deposits with banks, federal funds sold, money market mutual funds and other short-term investments with original maturities of three months or less. |
Investment Securities | Investment Securities Investment securities, other than those reported as short-term investments, are classified at the time of purchase as "available-for-sale," "held-to-maturity," or "held-for-trading." Classification is periodically re-evaluated for consistency with the Company's goals and objectives. Equity investments in the Federal Home Loan Bank of Boston ("FHLBB"), the Federal Reserve Bank of Boston and other restricted equities are discussed in more detail in Note 5, "Restricted Equity Securities." Investment Securities Available-for-Sale, Held-to-Maturity, and Held-for-Trading Investment securities for which the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at amortized cost. Those investment securities held for indefinite periods of time but not necessarily to maturity are classified as available-for-sale. Investment securities held for indefinite periods of time include investment securities that management intends to use as part of its asset/liability, liquidity, and/or capital management strategies and may be sold in response to changes in interest rates, maturities, asset/liability mix, liquidity needs, regulatory capital needs or other business factors. Investment securities available-for-sale are carried at estimated fair value, primarily obtained from a third-party pricing service, with unrealized gains and losses reported on an after-tax basis in stockholders' equity as accumulated other comprehensive income or loss. Investment securities expected to be held for very short term duration, used for hedging, or are marketable equity securities are typically designated held-for-trading. Held-for-trading securities are carried at estimated fair value principally based on market prices and dealer quotes received from third-party and nationally-recognized pricing services. Gains and losses for held-for-trading are reported on the income statement as gains on investment securities, net. As of December 31, 2022 and 2021, the Company did not make any adjustments to the prices provided by the third-party pricing service. Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and are recorded in non-interest income. Interest and dividends on securities are recorded using the accrual method. Premiums and discounts on securities are amortized or accreted into interest income using the level-yield method over the remaining period to contractual maturity, adjusted for the effect of actual prepayments in the case of mortgage-backed securities ("MBSs") and collateralized mortgage obligations ("CMOs"). These estimates of prepayment assumptions are made based upon the actual performance of the underlying security, current interest rates, the general market consensus regarding changes in mortgage interest rates, the contractual repayment terms of the underlying loans, the priority rights of the investors to the cash flows from the mortgage securities and other economic conditions. When differences arise between anticipated prepayments and actual prepayments, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. Unamortized premium or discount is adjusted to the amount that would have existed had the new effective yield been applied since purchase, with a corresponding charge or credit to interest income. Restricted Equity Securities |
Loans | Loans Originated Loans Loans the Company originates for the portfolio, and for which it has the intent and ability to hold to maturity, are reported at amortized cost, inclusive of deferred loan origination fees and expenses, less unadvanced funds due to borrowers on loans and the allowance for loan and lease losses. Interest income on loans and leases originated for the portfolio is accrued on unpaid principal balances as earned. Loan origination fees and direct loan origination costs are deferred, and the net fee or cost is recognized in interest income using the interest method. Deferred amounts are recognized for fixed-rate loans over the contractual life of the loans and for adjustable-rate loans over the period of time required to adjust the contractual interest rate to a yield approximating a market rate at the origination date. If a loan is prepaid, the unamortized portion of the loan origination costs, including third party referral related costs not subject to rebate from the dealer, is charged to income. Loans and Leases Held-for-Sale Management identifies and designates certain newly originated loans and leases for sale to specific financial institutions, subject to the underwriting criteria of those financial institutions. These loans and leases are held for sale and are carried at the lower of cost or market as determined in the aggregate. Deferred loan fees and costs are included in the determination of the gain or loss on sale. Nonperforming Loans Nonaccrual Loans Accrual of interest on loans generally is discontinued when contractual payment of principal or interest becomes past due 90 days or, if in management's judgment, reasonable doubt exists as to the full timely collection of interest. Exceptions may be made if the loan has matured and is in the process of renewal or is well-secured and in the process of collection. When a loan is placed on nonaccrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current interest income. Interest payments on nonaccrual loans are generally applied to principal. If collection of the principal is reasonably assured, interest payments are recognized as income on the cash basis. Loans are generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured and a consistent record of at least six consecutive months of performance has been achieved. Impaired Loans A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Smaller-balance, homogeneous loans that are evaluated collectively for impairment, such as residential, home equity and other consumer loans are specifically excluded from the impaired loan portfolio except where the loan is classified as a troubled debt restructuring. The Company has defined the population of impaired loans to include nonaccrual loans and troubled debt restructured ("TDR") loans. When the ultimate collectability of the total principal of an impaired loan or lease is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan or lease is not in doubt and the loan or lease is on nonaccrual status, contractual interest is credited to interest income when received, under the cash basis method. The value of an impaired loan is measured based upon the present value of expected future cash flows discounted at the loan's effective interest rate, or the fair value of the collateral if the loan is collateral-dependent and its payment is expected solely based on the underlying collateral. For impaired loans deemed collateral dependent, where impairment is measured using the fair value of the collateral, the Company will either obtain a new appraisal or use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Interest collected on impaired loans is either applied against principal or reported as income according to management's judgment as to the collectability of principal. If management does not consider a loan ultimately collectible within an acceptable time frame, payments are applied as principal to reduce the loan balance. If full collection of the remaining recorded investment should subsequently occur, interest receipts are recorded as interest income on a cash basis. Troubled Debt Restructured Loans In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR loan. In determining whether a debtor is experiencing financial difficulties, the Company considers, among other factors, whether the debtor is in payment default or is likely to be in payment default in the foreseeable future without the modification, if the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor's entity-specific projected cash flows will not be sufficient to service its debt, or the debtor cannot obtain funds from sources other than the existing creditors at market terms for debt with similar risk characteristics. Large groups of small-balance homogeneous loans such as residential real estate, residential construction, home equity and other consumer portfolios are collectively evaluated for impairment. As such, the Company does not typically identify individual loans within these groupings as impaired loans or for impairment evaluation and disclosure. However, the Company evaluates all TDRs for impairment on an individual loan basis regardless of loan type. Modifications may include interest-rate reductions, short-term (defined as one year or less) changes in payment structure to interest-only payments, short-term extensions of the loan's original contractual term, or less frequently, principal forgiveness, interest capitalization, forbearance and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Typically, TDRs are placed on nonaccrual status and reported as nonperforming loans. Generally, a nonaccrual loan that is restructured remains on nonaccrual for a period of six Loans restructured at an interest rate equal to or greater than that of a new loan with comparable risk at the time the loan agreement is modified may be excluded from restructured loan disclosures in years subsequent to the restructuring if they are in compliance with the modified terms. |
Allowance for Credit Losses | Allowance for Credit Losses Management has established a methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the allowance for credit losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized. To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. The Commercial real estate ("CRE"), Commercial and industrial ("C&I"), and Retail lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and utilization of expected utilization assumptions. The expected loss estimates for two small commercial portfolios and a runoff auto portfolio are based on historical loss rates. Key assumptions used in the models include portfolio segmentation, prepayments, the expected utilization of unfunded commitments, risk rating and a scalar, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a loan equivalency ("LEQ") factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available . Historical loss rate models apply a loss rate to the outstanding balance of the loan. Management uses historical loss rates for condominium association, auto, and government lease portfolio segments because these loans have distinct, historical, or expected loss patterns and a de minimus effect on the overall allowance and provision. Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of Gross Domestic Product ("GDP"), interest rates, property price indices, and employment measures. The forecasts are probability-weighted based on available information at the time of the calculation execution. Scenario weighting and model parameters are reviewed for each calculation and are subject to change. The models recognize that the life of a loan may exceed the economic forecast, therefore, the models employ mean reversion techniques at the input level to predict credit losses for loans that are expected to mature beyond the forecast period. The forecasts utilized at December 31, 2022 reflect the immediate and longer-term effects of a rising interest rate environment and inflationary conditions. The CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as variances in operational and underwriting procedures from the Company, and therefore, the Company calibrates expected losses using a scalar for each model. Each scalar was calculated by examining the loss rates of peer banks that have similar operations and asset bases to the Company and comparing these peer group loss rates to the model results. Peer group loss rates were used in the scalar calculation because management believes the peer group’s historical losses provide a better reflection of the Company’s current portfolio and operating procedures than the Company’s historical losses. Qualitative adjustments are also applied to select segments of the loan portfolio where applicable. For December 31, 2022, management applied qualitative adjustments to the CRE lifetime loss rate and C&I lifetime loss rate. These adjustments were made based on historical loss patterns, current loan and portfolio metrics, and expert judgment based on professional experience. These qualitative adjustments resulted in additions to reserves for the CRE and C&I portfolio, as compared to the model output. The general allowance related to loans collectively evaluated for impairment was determined using a formula-based approach utilizing the risk ratings of individual credits and loss factors derived from historic portfolio loss rates over a lookback period, which include estimates of incurred losses over an estimated loss emergence period (“LEP”). The LEP was generated utilizing a charge-off look-back analysis which studied the time from the first indication of elevated risk of repayment (or other early event indicating a problem) to eventual charge-off to support the LEP considered in the allowance calculation. This reserving methodology established the approximate number of months of LEP that represented incurred losses for each portfolio. In addition to quantitative measures, relevant qualitative factors included, but were not limited to: (1) levels and trends in past due and impaired loans, (2) levels and trends in charge-offs, (3) changes in underwriting standards, policy exceptions, and credit policy, (4) experience of lending management and staff, (5) economic trends, (6) industry conditions, (7) effects of changes in credit concentrations, (8) interest rate environment, and (9) regulatory and other changes. The general allowance related to the acquired loans collectively evaluated for impairment were determined based upon the degree, if any, of deterioration in the pooled loans subsequent to acquisition. The qualitative factors used in the determination was the same as those used for originated loans. Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary. Liability for Unfunded Commitments In the ordinary course of business, the Company enters into commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan and lease losses. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation and amortization, except for land which is carried at cost. Premises and equipment are depreciated using the straight-line method over the estimated useful life of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the improvements. Costs related to internal-use software development projects that provide significant new functionality are capitalized. Internal-use software is software acquired or modified solely to meet the Company's needs and for which there is no plan to market the software externally. Direct and indirect costs associated with the application development stage of internal use software are capitalized until such time that the software is substantially complete and ready for its intended use. Capitalized costs are amortized on a straight-line basis over the remaining estimated life of the software. Computer software and development costs incurred in the preliminary project stage, as well as training and maintenance costs, are expensed as incurred. |
Leases | LeasesThe Company leases certain office space under various noncancellable operating leases as well as certain other assets. These leases have original terms ranging from 3 years to over 25 years. Certain leases contain renewal options and escalation clauses which can increase rental expenses based principally on the consumer price index and fair market rental value provisions. Right-of-use lease assets are carried on the balance sheet at amortized cost and corresponding lease liabilities are carried on the balance sheet at present value of the future minimum lease payments, adjusted for any initial direct costs and incentives. All of the Company's current outstanding leases are classified as operating leases. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company acquired bank-owned life insurance ("BOLI") plans as part of its acquisitions of First Ipswich Bank and BankRI. BOLI represents life insurance on the lives of certain current and former employees who have provided positive consent allowing their employer to be the beneficiary of such policies. BankRI and Brookline Bank as successor in interest to First Ipswich Bank are the beneficiaries of their respective policies. BankRI and Brookline Bank utilize BOLI as tax-efficient financing for their benefit obligations to their employees, including their retirement obligations and Supplemental Executive Retirement Plans ("SERPs"). Since BankRI and Brookline Bank are the primary beneficiaries of their respective insurance policies, increases in the cash value of the policies, as well as insurance proceeds received, are recorded in non-interest income and are not subject to income taxes. BOLI is recorded at the cash value of the policies, less any applicable cash surrender charges, and is reflected as an asset in the accompanying consolidated balance sheets. Cash proceeds, if any, are classified as cash flows from investing activities. |
Goodwill and Other Identified Intangible Assets | Goodwill and Other Identified Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill and indefinite-lived identified intangible assets are not subject to amortization. Definite-lived identified intangible assets are assets resulting from acquisitions that are being amortized over their estimated useful lives. The recoverability of goodwill and identified intangible assets is evaluated for impairment at least annually. A Company can perform a qualitative assessment of whether it is more likely than not that the fair value of an acquired asset is greater than its carrying amount. If the Company qualitatively concludes that it is more likely than not that the fair value of an acquired asset is greater than its carrying amount, no further testing is necessary. If, however, the Company qualitatively concludes that the fair value of an acquired asset is less than its carrying value, the Company should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. However, in accordance with ASC 350-20-35-3B, an entity can bypass the qualitative assessment and perform the quantitative impairment test. Given the current economic environment, a quantitative analysis was performed where management selected a sample of comparable acquisitions and calculated the control premium associated with each sale. The Company’s market capitalization times the sampled control premium allowed management to compare the calculated fair value to the Company’s current book value to determine if an adjustment to goodwill is warranted. The Company did not have any impairment of Goodwill and other identified intangible assets as of December 31, 2022 and 2021 |
OREO and Other Repossessed Assets | OREO and Other Repossessed AssetsOREO and other repossessed assets consists of properties acquired through foreclosure, real estate acquired through acceptance of a deed in lieu of foreclosure and loans determined to be substantively repossessed. Real estate loans that are substantively repossessed include only those loans for which the Company has taken possession of the collateral. OREO and other repossessed assets which consist of vehicles and equipment, if any, are recorded initially at estimated fair value less costs to sell, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated cost to sell) of the foreclosed or repossessed asset is charged to the allowance for loan and lease losses. Such evaluations are based on an analysis of individual properties/assets as well as a general assessment of current real estate market conditions. Subsequent declines in the fair value of the foreclosed or repossessed asset below the new cost basis are recorded through the use of a valuation allowance. Subsequent increases in the fair value are recorded as reductions in the allowance, but not below zero. Rental revenue received on foreclosed or repossessed assets is included in other non-interest income, whereas operating expenses and changes in the valuation allowance relating to foreclosed and repossessed assets are included in other non-interest expense. Certain costs used to improve such properties are capitalized. Gains and losses from the sale of OREO and other repossessed assets are reflected in non-interest expense when realized. Together with nonperforming loans, OREO and repossessed assets comprise nonperforming assets. |
Derivatives | Derivatives The Company utilizes loan level derivatives which consists of interest rate contracts (swaps, caps and floors), and risk participation agreements as part of the Company's interest-rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on the Company's intended use for the loan level derivatives at inception, the Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging". These derivatives designated as cash flow hedges involve the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments. Loan level derivatives and foreign exchange contracts entered into on behalf of our customers are designated as economic hedges and are recorded at fair value within other assets or liabilities. Changes in the fair value of these non hedging derivatives are recorded directly through earnings at each reporting period. |
Transfer of Financial Assets | Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Securities Sold under Agreements to Repurchase | Securities Sold under Agreements to Repurchase The Company enters into sales of securities under agreements to repurchase with the Banks' commercial customers. These agreements are treated as financings, and the obligations to repurchase securities sold are reflected as a liability in the consolidated balance sheets. Securities pledged as collateral under agreements to repurchase are reflected as assets in the accompanying consolidated balance sheets. |
Employee Benefits | Employee Benefits Costs related to the Company's 401(k) plan are recognized in current earnings. Costs related to the Company's nonqualified deferred compensation plan, SERPs and postretirement benefits are recognized over the vesting period or the related service periods of the participating employees. Changes in the funded status of postretirement benefits are recognized through comprehensive income in the year in which changes occur. Compensation expense for the Company's Employee Stock Ownership Program ("ESOP") is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the year. The Company recognizes compensation expense ratably over the year based upon the Company's estimate of the number of shares expected to be allocated by the ESOP. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. As of December 31, 2022, all shares have been allocated and the ESOP has ended. The fair value of restricted stock awards and stock option grants are determined as of the grant date and are recorded as compensation expense over the period in which the shares of restricted stock awards and stock options vest. Forfeitures are accounted for as they occur. |
Fair Value Measurements | Fair Value Measurements ASC 820-10, "Fair Value Measurements and Disclosures," defines fair value 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 is not 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 independent, knowledgeable, able to transact, and willing to transact. A fair-value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs are included in ASC 820. The fair value hierarchy is as follows: Level 1: Inputs are unadjusted quoted prices in active markets for assets and liabilities identical to those reported at fair value. Level 2: Inputs other than quoted prices included within Level 1. Level 2 inputs are observable either directly or indirectly. These inputs might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3: Inputs are unobservable inputs for an asset or liability that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. These inputs are used to determine fair value only when observable inputs are not available. |
Earnings per Common Share | Earnings per Common ShareBasic earnings per share ("EPS") is computed by dividing net income by the weighted average number of shares of common stock outstanding for the applicable period, exclusive of Treasury shares, unearned ESOP shares and unvested shares of restricted stock. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potential dilutive common shares outstanding during the period. The dilutive effects of options and unvested restricted stock awards are computed using the "treasury stock" method. Management evaluated the "two class" method and concluded that the method did not apply to the Company's EPS calculation. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Tax positions that are more likely than not to be sustained upon a tax examination are recognized in the Company's financial statements to the extent that the benefit is greater than 50% likely of being recognized. Interest resulting from underpayment of income taxes is classified as income tax expense in the first period the interest would begin accruing according to the provision of the relevant tax law. Penalties resulting from underpayment of income taxes are classified as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company's judgment changes regarding an uncertain tax position. For new investment tax credits ("ITC"), the Company chose to apply the flow-through method and immediately recognize the ITC benefit in income tax expense, as opposed to deferring. |
Treasury Stock | Treasury Stock Any shares repurchased under the Company's share repurchase programs were purchased in open-market transactions and are held as treasury stock. Treasury stock also consists of common stock withheld to satisfy federal, state and local income tax withholding requirements for employee restricted stock awards upon vesting. All treasury stock is held at cost. |
Segment Reporting | Segment Reporting An operating segment is defined as a component of a business for which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and evaluate performance. The Company is a bank holding company with subsidiaries engaged in the business of banking and activities closely related to banking. The Company's banking business provided substantially all of its total revenues and pre-tax income in 2022, 2021 and 2020. Therefore, the Company has determined to be a single segment. |
Accounting Standards Adopted in 2021 and 2020 | Accounting Standards Adopted in 2022, 2021 and 2020 In August 2018, FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)"("ASU 2018-14"), to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 is effective for fiscal years beginning after December 15, 2020, for public business entities and for fiscal years beginning after December 15, 2021, for all other entities. Early adoption is permitted. Management evaluated ASU 2018-14 and as of December 31, 2020, the Company adopted ASU 2018-14 and determined the impact to be immaterial. In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848)-Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") to provide optional expedients and exceptions for applying GAAP to certain contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients provided that those elections are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022 and do not apply to contract modifications made after December 31, 2022. In January 2021, FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)" an update to address concerns around structural risk of interbank offered rates ("IBORs"), particularly, the risk of cessation of the LIBOR. The amendments in this update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. In December 2022, FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848)" which deferred the sunset date of Topic 848 to December 31, 2024, to allow for a transition period after the sunset of LIBOR. The Company has adopted the amendments in these updates and established a LIBOR transition committee to guide the Company’s transition from LIBOR. The Company has completed much of the work to transition off the LIBOR index consistent with industry timelines. The working group has identified its products that utilize LIBOR and has implemented fallback language to facilitate the transition to alternative rates. The Company has also evaluated its infrastructure and identified fallback rates as well as started offering alternative indices and new products tied to these alternative indices. The Company does not anticipate the adoption of these standards to have a material impact to the consolidated financial statements. In August 2021, the FASB issued ASU 2021-06, "Presentation of Financial Statements (Topic 205), Financial Services – Depository and Lending (Topic 942), and Financial Services – Investment Companies (Topic 946) which updated guidance to align with new SEC regulations with regards to statistical disclosures for banking and savings and loan institutions. This ASU is effective for fiscal years ending on or after December 15, 2021. The Company adopted ASU 2021-06 as of December 31, 2021. The adoption did not have a material impact on the Company’s consolidated financial statements. |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Short-term investments | Short-term investments are summarized as follows: At December 31, 2022 2021 (In Thousands) FRB interest bearing reserve $ 141,198 $ 235,108 FHLB overnight deposits 49,994 26,364 Total short-term investments $ 191,192 $ 261,472 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities available-for-sale securities | The following tables set forth investment securities available-for-sale at the dates indicated: At December 31, 2022 Amortized Gross Gross Estimated (In Thousands) Investment securities available-for-sale: GSE debentures $ 176,751 $ — $ 24,329 $ 152,422 GSE CMOs 19,977 — 1,757 18,220 GSE MBSs 159,824 1 19,249 140,576 Corporate debt obligations 14,076 — 312 13,764 U.S. Treasury bonds 362,850 280 31,823 331,307 Foreign government obligations 500 — 23 477 Total investment securities available-for-sale $ 733,978 $ 281 $ 77,493 $ 656,766 At December 31, 2021 Amortized Gross Gross Estimated (In Thousands) Investment securities available-for-sale: GSE debentures $ 219,723 $ 2,017 $ 4,235 $ 217,505 GSE CMOs 27,892 274 27 28,139 GSE MBSs 196,930 3,749 907 199,772 Corporate debt obligations 22,178 505 — 22,683 U.S. Treasury bonds 253,878 1,136 2,746 252,268 Foreign government obligations 500 — 1 499 Total investment securities available-for-sale $ 721,101 $ 7,681 $ 7,916 $ 720,866 |
Investment securities in a continuous unrealized loss position | Investment securities as of December 31, 2022 and 2021 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows: At December 31, 2022 Less than Twelve Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In Thousands) Investment securities available-for-sale: GSE debentures $ 56,719 $ 1,255 $ 95,703 $ 23,076 $ 152,422 $ 24,331 GSE CMOs 16,411 1,563 1,809 192 18,220 1,755 GSE MBSs 97,858 9,823 42,500 9,426 140,358 19,249 Corporate debt obligations 13,764 312 — — 13,764 312 U.S. Treasury bonds 139,103 3,723 166,150 28,100 305,253 31,823 Foreign government obligations 477 23 — — 477 23 Temporarily impaired investment securities available-for-sale 324,332 16,699 306,162 60,794 630,494 77,493 Total temporarily impaired investment securities $ 324,332 $ 16,699 $ 306,162 $ 60,794 $ 630,494 $ 77,493 At December 31, 2021 Less than Twelve Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In Thousands) Investment securities available-for-sale: GSE debentures $ 45,695 $ 1,487 $ 70,075 $ 2,748 $ 115,770 $ 4,235 GSE CMOs 2,712 27 — — 2,712 27 GSE MBSs 57,656 907 — — 57,656 907 U.S. Treasury bonds 177,162 2,746 — — 177,162 2,746 Foreign government obligations 499 1 — — 499 1 Temporarily impaired investment securities available-for-sale 283,724 5,168 70,075 2,748 353,799 7,916 Total temporarily impaired investment securities $ 283,724 $ 5,168 $ 70,075 $ 2,748 $ 353,799 $ 7,916 |
Schedule of maturities of the investments in debt securities | The final stated maturities of the debt securities are as follows for the periods indicated: At December 31, 2022 2021 Amortized Estimated Weighted Amortized Estimated Weighted (Dollars in Thousands) Investment securities available-for-sale: Within 1 year $ 119,912 $ 119,075 3.10% $ 53,791 $ 54,183 2.09% After 1 year through 5 years 163,941 156,120 2.40% 139,068 141,928 1.95% After 5 years through 10 years 291,284 244,847 1.30% 322,873 317,324 1.29% Over 10 years 158,841 136,724 2.10% 205,369 207,431 1.96% $ 733,978 $ 656,766 2.06% $ 721,101 $ 720,866 1.67% |
Schedule of sales of investment securities | Year Ended December 31, 2022 2021 (In Thousands) Proceeds from sales of investment securities available-for-sale $ 78,778 $ 39,652 Gross gains from sales — 273 Gross losses from sales (5,785) (303) Gain (loss) on sales of securities, net $ (5,785) $ (30) |
Restricted Equity Securities (T
Restricted Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Investments Note [Abstract] | |
Components of investments in the restricted equity securities of various entities | Investments in the restricted equity securities of various entities are as follows: At December 31, 2022 2021 (In Thousands) FHLBB stock $ 52,914 $ 10,488 FRB stock 18,241 18,241 Other restricted equity securities 152 252 $ 71,307 $ 28,981 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of loan and lease balances for the originated and acquired portfolios | The following table presents the amortized cost of loans and leases and weighted average coupon rates for the loan and lease portfolios at the dates indicated: At December 31, 2022 At December 31, 2021 Balance Weighted Balance Weighted (Dollars In Thousands) Commercial real estate loans: Commercial real estate $ 3,046,746 4.93 % $ 2,842,791 3.41 % Multi-family mortgage 1,150,597 4.74 % 1,099,818 3.26 % Construction 206,805 6.51 % 160,431 3.60 % Total commercial real estate loans 4,404,148 4.95 % 4,103,040 3.38 % Commercial loans and leases: Commercial (1) 752,948 6.03 % 734,388 3.31 % Equipment financing 1,216,585 7.04 % 1,105,611 6.86 % Condominium association 46,966 4.80 % 47,137 4.34 % Total commercial loans and leases 2,016,499 6.61 % 1,887,136 5.42 % Consumer loans: Residential mortgage 844,614 3.98 % 799,737 3.49 % Home equity 322,622 7.00 % 324,156 3.27 % Other consumer 56,505 6.65 % 40,388 2.90 % Total consumer loans 1,223,741 4.90 % 1,164,281 3.41 % Total loans and leases $ 7,644,388 5.38 % $ 7,154,457 3.92 % |
Summary of the change in the total amounts of loans and advances, all of which were performing, to directors, executive officers and their affiliates | The following table summarizes the change in the total amounts of loans and advances to directors, executive officers and their affiliates for the periods indicated. All loans were performing as of December 31, 2022 and 2021. Year Ended December 31, 2022 2021 (Dollars In Thousands) Balance at beginning of year $ 111,326 $ 78,201 New loans granted during the year 1,675 5,053 Loans reclassified as insider loans — Advances on lines of credit 1,233 44,638 Repayments 9,343 (16,566) Balance at end of year $ 123,577 $ 111,326 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for loan and lease losses | The following tables present the changes in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment for the periods indicated: Year Ended December 31, 2022 Commercial Commercial Consumer Total (In Thousands) Balance at December 31, 2021 $ 69,213 $ 27,055 $ 2,816 $ 99,084 Charge-offs (37) (5,068) (28) (5,133) Recoveries 24 1,725 64 1,813 (Credit) provision for loan and lease losses excluding unfunded commitments (1,046) 2,892 872 2,718 Balance at December 31, 2022 $ 68,154 $ 26,604 $ 3,724 $ 98,482 Year Ended December 31, 2021 Commercial Commercial Consumer Total (In Thousands) Balance at December 31, 2020 $ 80,132 $ 29,498 $ 4,749 $ 114,379 Charge-offs (28) (7,464) (34) (7,526) Recoveries 12 1,541 239 1,792 Provision for loan and lease losses excluding unfunded commitments (10,903) 3,480 (2,138) (9,561) Balance at December 31, 2021 $ 69,213 $ 27,055 $ 2,816 $ 99,084 |
Provisions for credit losses | The (credit) provisions for credit losses are set forth below for the periods indicated: Year Ended December 31, 2022 2021 2020 (In Thousands) Provision (credit) for loan and lease losses: Commercial real estate $ (1,046) $ (10,903) $ 41,573 Commercial 2,892 3,480 17,050 Consumer 872 (2,138) 1,003 Total provision (credit) for loan and lease losses 2,718 (9,561) 59,626 Unfunded credit commitments 5,807 1,724 2,260 Investment securities available-for-sale 102 — — Total provision (credit) for credit losses $ 8,627 $ (7,837) $ 61,886 |
Summary of the recorded investments by credit quality indicator, by loan class | The following tables present the recorded investment in loans in each class as of December 31, 2022 and December 31, 2021 by credit quality indicator and year originated. December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Commercial Real Estate Pass $ 475,105 $ 622,952 $ 290,913 $ 362,339 $ 210,954 $ 971,274 $ 55,464 $ 9,167 $ 2,998,168 OAEM — 2,600 112 14,805 2,841 25,875 — — 46,233 Substandard — — — — — 2,345 — — 2,345 Total 475,105 625,552 291,025 377,144 213,795 999,494 55,464 9,167 3,046,746 Multi-Family Mortgage Pass 162,139 226,502 132,893 114,109 142,271 324,415 4,823 36,662 1,143,814 Substandard — — — — — 6,783 — — 6,783 Total 162,139 226,502 132,893 114,109 142,271 331,198 4,823 36,662 1,150,597 Construction Pass 82,650 73,995 13,787 16,421 3,306 — 6,456 — 196,615 OAEM 842 8,641 — — — — — — 9,483 Substandard — — — — — 707 — — 707 Total 83,492 82,636 13,787 16,421 3,306 707 6,456 — 206,805 Commercial Pass 178,212 116,674 48,713 22,809 29,350 52,866 273,467 1,071 723,162 OAEM — 109 — 14,821 — — 2,187 — 17,117 Substandard — 3,835 1,215 494 — 30 6,461 632 12,667 Doubtful — — — — — 1 — 1 2 Total 178,212 120,618 49,928 38,124 29,350 52,897 282,115 1,704 752,948 December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Equipment Financing Pass 443,323 282,398 185,007 140,931 76,595 60,980 13,236 1,301 1,203,771 OAEM 1,019 1,453 184 455 13 — — — 3,124 Substandard 608 784 1,514 2,597 2,503 1,669 — — 9,675 Doubtful — — — — 2 13 — — 15 Total 444,950 284,635 186,705 143,983 79,113 62,662 13,236 1,301 1,216,585 Condominium Association Pass 5,821 7,743 8,810 5,858 1,603 12,227 4,823 23 46,908 Substandard — — — — — 58 — — 58 Total 5,821 7,743 8,810 5,858 1,603 12,285 4,823 23 46,966 Other Consumer Pass 411 393 15 13 1,503 750 53,418 1 56,504 Substandard — — — — — — 1 — 1 Total 411 393 15 13 1,503 750 53,419 1 56,505 Total Pass 1,347,661 1,330,657 680,138 662,480 465,582 1,422,512 411,687 48,225 6,368,942 OAEM 1,861 12,803 296 30,081 2,854 25,875 2,187 — 75,957 Substandard 608 4,619 2,729 3,091 2,503 11,592 6,462 632 32,236 Doubtful — — — — 2 14 — 1 17 Total $ 1,350,130 $ 1,348,079 $ 683,163 $ 695,652 $ 470,941 $ 1,459,993 $ 420,336 $ 48,858 $ 6,477,152 As of December 31, 2022, there were no loans categorized as definite loss. The following table presents the recorded investment in loans in each class as of December 31, 2021 by credit quality indicator. At December 31, 2021 Commercial Real Estate Multi-Family Mortgage Construction Commercial Equipment Financing Condominium Association Other Consumer Total (In Thousands) Loan rating: Pass $ 2,782,983 $ 1,098,629 $ 156,636 $ 721,245 $ 1,088,197 $ 47,053 $ 40,387 $ 5,935,130 OAEM 46,585 1,189 — 8,324 2,176 — — 58,274 Substandard 13,223 — 3,795 4,817 15,224 84 1 37,144 Doubtful — — — 2 14 — — 16 Total loans $ 2,842,791 $ 1,099,818 $ 160,431 $ 734,388 $ 1,105,611 $ 47,137 $ 40,388 $ 6,030,564 As of December 31, 2021, there were no loans categorized as definite loss. For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model. December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Residential Credit Scores Over 700 $ 108,125 $ 176,341 $ 95,484 $ 61,763 $ 38,949 $ 132,359 $ 4,942 $ 348 $ 618,311 661 - 700 15,018 21,450 17,611 11,388 8,308 29,999 — — 103,774 600 and below 6,133 3,754 5,275 2,833 2,264 14,688 — — 34,947 Data not available* 28,097 6,661 712 3,316 — 48,796 — — 87,582 Total 157,373 208,206 119,082 79,300 49,521 225,842 4,942 348 844,614 Home Equity Credit Scores Over 700 3,833 1,399 1,128 1,209 984 6,862 247,188 2,304 264,907 661 - 700 787 92 35 249 272 1,329 41,050 296 44,110 600 and below 89 87 48 93 — 360 8,744 595 10,016 Data not available* 6 6 — — — 1,029 2,279 269 3,589 Total $ 4,715 $ 1,584 $ 1,211 $ 1,551 $ 1,256 $ 9,580 $ 299,261 $ 3,464 $ 322,622 * Represents accounts for which data are not available. December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Residential Credit Scores Over 700 $ 182,759 $ 111,380 $ 69,901 $ 51,454 $ 40,467 $ 127,303 $ 2,990 $ 355 $ 586,609 661 - 700 24,370 19,078 14,011 9,018 12,846 25,294 — — 104,617 600 and below 4,145 6,368 3,408 2,996 3,492 13,801 — — 34,210 Data not available* 10,936 — 1,958 — 6,847 54,560 — — 74,301 Total 222,210 136,826 89,278 63,468 63,652 220,958 2,990 355 799,737 Home Equity Credit Scores Over 700 1,530 1,469 1,790 1,520 1,561 8,254 242,980 1,844 260,948 661 - 700 98 51 297 392 210 1,658 42,542 541 45,789 600 and below 92 54 101 — 12 436 8,484 713 9,892 Data not available* — — — — — 1,216 5,937 374 7,527 Total $ 1,720 $ 1,574 $ 2,188 $ 1,912 $ 1,783 $ 11,564 $ 299,943 $ 3,472 $ 324,156 |
Information regarding the aging of past due loans, by loan class | The following tables present an age analysis of the recorded investment in total loans and leases as of December 31, 2022 and 2021. At December 31, 2022 Past Due Past Non-accrual Non-accrual with no related Allowance 31-60 61-90 Greater Total Current Total Loans (In Thousands) Commercial real estate loans: Commercial real estate $ 2,495 $ 199 $ 408 $ 3,102 $ 3,043,644 $ 3,046,746 $ — $ 607 $ 262 Multi-family mortgage — 180 — 180 1,150,417 1,150,597 — — — Construction 707 — — 707 206,098 206,805 — 707 707 Total commercial real estate loans 3,202 379 408 3,989 4,400,159 4,404,148 — 1,314 969 Commercial loans and leases: Commercial 740 — 343 1,083 751,865 752,948 — 464 — Equipment financing 5,103 1,764 6,205 13,072 1,203,513 1,216,585 28 9,653 399 Condominium association 2,072 — — 2,072 44,894 46,966 — 58 — Total commercial loans and leases 7,915 1,764 6,548 16,227 2,000,272 2,016,499 28 10,175 399 Consumer loans: Residential mortgage 677 70 1,466 2,213 842,401 844,614 1 2,680 1,091 Home equity 443 — 155 598 322,024 322,622 4 723 — Other consumer 1 5 2 8 56,497 56,505 — 2 — Total consumer loans 1,121 75 1,623 2,819 1,220,922 1,223,741 5 3,405 1,091 Total loans and leases $ 12,238 $ 2,218 $ 8,579 $ 23,035 $ 7,621,353 $ 7,644,388 $ 33 $ 14,894 $ 2,459 There is no interest income recognized on non-accrual loans for the year ending December 31, 2022. At December 31, 2021 Past Due Past 31-60 61-90 Greater Total Current Total Loans Non-accrual Non-accrual with no related Allowance (In Thousands) Commercial real estate loans: Commercial real estate $ 2,424 $ 1,488 $ 10,443 $ 14,355 $ 2,828,436 $ 2,842,791 $ — $ 10,848 $ 10,244 Multi-family mortgage 371 89 — 460 1,099,358 1,099,818 — — — Construction 396 — — 396 160,035 160,431 — — — Total commercial real estate loans 3,191 1,577 10,443 15,211 4,087,829 4,103,040 — 10,848 10,244 Commercial loans and leases: Commercial 287 88 748 1,123 733,265 734,388 — 2,318 1,383 Equipment financing 5,265 1,044 8,774 15,083 1,090,528 1,105,611 — 15,014 1,602 Condominium association 57 — — 57 47,080 47,137 — 84 — Total commercial loans and leases 5,609 1,132 9,522 16,263 1,870,873 1,887,136 — 17,416 2,985 Consumer loans: Residential mortgage 454 3,169 2,315 5,938 793,799 799,737 — 3,909 2,165 Home equity 424 201 114 739 323,417 324,156 1 285 — Other consumer 5 2 1 8 40,380 40,388 — 1 — Total consumer loans 883 3,372 2,430 6,685 1,157,596 1,164,281 1 4,195 2,165 Total loans and leases $ 9,683 $ 6,081 $ 22,395 $ 38,159 $ 7,116,298 $ 7,154,457 $ 1 $ 32,459 $ 15,394 |
Schedule of the impaired and non-impaired loans and leases, by loan and leases class | The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated. At December 31, 2022 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Individually evaluated $ 62 $ 2,982 $ 68 $ 3,112 Collectively evaluated 68,092 23,622 3,656 95,370 Total $ 68,154 $ 26,604 $ 3,724 $ 98,482 Loans and Leases: Individually evaluated $ 11,039 $ 14,346 $ 3,863 $ 29,248 Collectively evaluated 4,393,109 2,002,153 1,219,878 7,615,140 Total $ 4,404,148 $ 2,016,499 $ 1,223,741 $ 7,644,388 At December 31, 2021 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Individually evaluated $ — $ 3,236 $ 38 $ 3,274 Collectively evaluated 69,213 23,819 2,778 95,810 Total $ 69,213 $ 27,055 $ 2,816 $ 99,084 Loan and Lease Losses: Individually evaluated $ 16,906 $ 10,944 $ 4,853 $ 32,703 Collectively evaluated 4,086,134 1,876,192 1,159,428 7,121,754 Total $ 4,103,040 $ 1,887,136 $ 1,164,281 $ 7,154,457 |
Information regarding troubled debt restructuring loans | The following table sets forth information regarding troubled debt restructured loans and leases at the dates indicated: At December 31, 2022 At December 31, 2021 (In Thousands) Troubled debt restructurings: On accrual $ 16,385 $ 12,580 On nonaccrual 3,527 6,709 Total troubled debt restructurings $ 19,912 $ 19,289 |
Summary of loans restructured or defaulted | The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios, that were modified during the periods indicated, are as follows: At and for the Year Ended December 31, 2022 Recorded Investment Specific Defaulted (1) Number of At At End of Nonaccrual Number of Recorded (Dollars in Thousands) Commercial 15 6,227 6,227 2,230 — — — Equipment financing 23 1,203 1,445 — 606 5 301 Home equity 1 106 106 — — — — Total loans and leases 39 7,536 7,778 2,230 606 5 301 ______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. At and for the Year Ended December 31, 2021 Recorded Investment Specific Defaulted (1) Number of At At End of Nonaccrual Number of Recorded (Dollars in Thousands) Commercial real estate 1 $ 497 $ 493 $ — $ — — $ — Commercial 1 19 17 — — — — Equipment financing 46 3,979 3,500 818 2,364 13 1,491 Residential mortgage 2 1,072 1,061 — 207 — — Home equity 1 312 312 — — — — Total loans and leases 51 $ 5,879 $ 5,383 $ 818 $ 2,571 13 $ 1,491 ______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. At and for the Year Ended December 31, 2020 Recorded Investment Specific Defaulted (1) Number of At At End of Nonaccrual Number of Recorded (Dollars in Thousands) Commercial real estate — $ — $ — $ — $ — 1 $ 215 Commercial 2 3,029 2,970 — — — — Equipment financing 24 1,366 1,914 173 1,874 — — Home equity 2 476 465 — 265 — — Total loans and leases 28 4,871 5,349 173 2,139 1 215 ______________________________________________________________________ |
Schedule of troubled debt restructurings by type of modification | The following table sets forth the Company's end-of-period balances for troubled debt restructurings that were modified during the periods indicated, by type of modification. Year Ended 2022 2021 2020 (In Thousands) Extended maturity $ 6,931 $ 2,704 $ 3,297 Adjusted principal — — 40 Adjusted interest rate — — 113 Combination maturity, principal, interest rate 847 2,679 1,899 Total loans modified $ 7,778 $ 5,383 $ 5,349 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | Premises and equipment consist of the following: At December 31, Estimated 2022 2021 (In Thousands) (In Years) Land $ 12,329 $ 12,329 NA Fine art 620 553 NA Computer equipment 16,332 15,668 3 Vehicles 255 183 3 to 5 Core processing system and software 25,864 22,485 3 to 7.5 Furniture, fixtures and equipment 15,882 15,213 5 to 25 Office building and improvements 92,328 91,104 10 to 40 Total 163,610 157,535 Accumulated depreciation and amortization 92,219 87,176 Total premises and equipment $ 71,391 $ 70,359 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying value of goodwill | The changes in the carrying value of goodwill for the periods indicated were as follows: Year Ended December 31, 2022 2021 (In Thousands) Balance at beginning of year $ 160,427 $ 160,427 Additions — — Balance at end of year $ 160,427 $ 160,427 |
Schedule of composition of other intangible assets | The following is a summary of the Company's other intangible assets: At December 31, 2022 At December 31, 2021 Gross Accumulated Carrying Gross Accumulated Carrying (In Thousands) Other intangible assets: Core deposits $ 38,294 $ 37,602 $ 692 $ 38,294 $ 37,107 $ 1,187 Trade name 1,600 511 1,089 1,600 511 1,089 Trust relationship 1,568 1,568 — 1,568 1,568 — Other intangible 442 442 — 442 442 — Total other intangible assets $ 41,904 $ 40,123 $ 1,781 $ 41,904 $ 39,628 $ 2,276 |
Schedule of estimated aggregate future amortization expense for intangible assets | The estimated aggregate future amortization expense for other intangible assets for each of the next five years and thereafter is as follows: Year ended December 31: Amount (In Thousands) 2023 $ 262 2024 151 2025 103 2026 74 2027 87 Thereafter 15 Total $ 692 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of information regarding the Company's investments in affordable housing projects | Further information regarding the Company's investments in affordable housing projects follows: At December 31, 2022 2021 (In Thousands) Investments in affordable housing projects included in other assets $ 21,985 $ 24,446 Unfunded commitments related to affordable housing projects included in other liabilities 5,211 4,987 Investment in affordable housing tax credits 2,941 2,988 Investment in affordable housing tax benefits 547 411 For the year ended December 31, 2022 2021 2020 (In Thousands) Investment amortization included in provision for income taxes $ 3,268 $ 3,192 $ 3,097 Amount recognized as income tax benefit 547 411 823 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Summary of deposits | A summary of deposits follows: December 31, 2022 December 31, 2021 Amount Weighted Amount Weighted (Dollars in Thousands) Demand checking accounts $ 1,802,518 — % $ 1,888,462 — % NOW accounts 544,118 0.18 % 604,097 0.08 % Savings accounts 762,271 0.70 % 915,804 0.09 % Money market accounts 2,174,952 1.63 % 2,358,306 0.26 % Total core deposit accounts 5,283,859 0.79 % 5,766,669 0.13 % Certificate of deposit accounts maturing: Within six months $ 379,017 0.95 % $ 493,512 0.53 % After six months but within 1 year 236,049 1.60 % 432,601 0.56 % After 1 year but within 2 years 269,243 2.81 % 128,714 1.35 % After 2 years but within 3 years 22,585 1.83 % 32,250 2.34 % After 3 years but within 4 years 8,859 0.70 % 19,568 1.49 % After 4 years but within 5 years 12,177 1.77 % 10,852 0.67 % 5+ Years 213 3.02 % 198 0.35 % Total certificate of deposit accounts 928,143 1.68 % 1,117,695 0.71 % Brokered deposit accounts 310,144 3.00 % 165,542 0.04 % Total deposits $ 6,522,146 1.02 % $ 7,049,906 0.22 % |
Schedule of interest expense on deposit balances | Interest expense on deposit balances is summarized as follows Year Ended December 31, 2022 2021 2020 (In Thousands) Interest-bearing deposits: NOW accounts $ 853 $ 493 $ 484 Savings accounts 2,228 950 1,503 Money market accounts 15,392 6,214 9,519 Certificate of deposit accounts 8,210 11,758 30,355 Brokered deposit accounts 2,909 1,298 6,565 Total interest-bearing deposits $ 29,592 $ 20,713 $ 48,426 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of borrowed funds | Borrowed funds are comprised of the following: At December 31, 2022 2021 (In Thousands) Advances from the FHLBB $ 1,237,823 $ 147,907 Subordinated debentures and notes 84,044 83,897 Other borrowed funds 110,785 125,517 Total borrowed funds $ 1,432,652 $ 357,321 |
Schedule of interest expense on borrowed funds | Interest expense on borrowed funds for the periods indicated is as follows: Year Ended December 31, 2022 2021 2020 (In Thousands) Advances from the FHLBB $ 9,355 $ 3,302 $ 12,842 Subordinated debentures and notes 5,133 4,967 5,038 Other borrowed funds 1,335 174 348 Total interest expense on borrowed funds $ 15,823 $ 8,443 $ 18,228 |
Schedule of federal home loan bank advances | FHLBB advances mature as follows: At December 31, 2022 2021 Amount Callable Weighted Amount Callable Weighted (Dollars in Thousands) Within 1 year $ 1,003,300 $ — 4.37 % $ 114,798 $ — 0.35 % Over 1 year to 2 years 226,100 — 4.83 % 23,300 — 0.51 % Over 2 years to 3 years 1,371 — 0.41 % 1,100 — — % Over 3 years to 4 years — — — % 1,418 — 0.55 % Over 4 years to 5 years 364 — 0.76 % — — — % Over 5 years 6,688 — 2.83 % 7,291 — 2.73 % $ 1,237,823 $ — 4.44 % $ 147,907 $ — 0.49 % |
Schedule of information concerning repurchase agreements during the period | Information concerning other borrowed funds is as follows for the periods indicated below: Year Ended December 31, 2022 2021 (Dollars In Thousands) Outstanding at end of year $ 110,785 $ 125,517 Average outstanding for the year 118,383 88,818 Maximum outstanding at any month-end 150,486 152,084 Weighted average rate at end of year 2.38 % 0.15 % Weighted average rate paid for the year 1.13 % 0.20 % |
Summary of subordinated debentures | The following table summarizes the Company's subordinated debentures and notes at the dates indicated. Carrying Amount Issue Date Rate Maturity Date Next Call Date December 31, 2022 December 31, 2021 (Dollars in Thousands) June 26, 2003 Variable; 3-month LIBOR + 3.10% June 26, 2033 March 25, 2023 $ 4,887 $ 4,868 March 17, 2004 Variable; 3-month LIBOR + 2.79% March 17, 2034 March 16, 2023 4,830 4,802 September 15, 2014 6.0% Fixed-to-Variable; 3-month LIBOR + 3.315% September 15, 2029 September 15, 2024 74,327 74,227 Total $ 84,044 $ 83,897 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of financial instruments with off-balance sheet risk | Financial instruments with off-balance-sheet risk at the dates indicated follow: At December 31, 2022 2021 (In Thousands) Financial instruments whose contract amounts represent credit risk: Commitments to originate loans and leases: Commercial real estate $ 414,217 $ 110,798 Commercial 291,188 162,931 Residential mortgage 14,036 28,685 Unadvanced portion of loans and leases 1,202,738 987,482 Unused lines of credit: Home equity 700,201 611,212 Other consumer 97,313 64,589 Other commercial 526 414 Unused letters of credit: Financial standby letters of credit 13,584 16,143 Performance standby letters of credit 31,330 17,145 Commercial and similar letters of credit 2,619 5,219 Interest rate derivatives 150,000 6,000 Loan level derivatives: Receive fixed, pay variable 1,489,709 1,324,609 Pay fixed, receive variable 1,489,709 1,324,609 Risk participation-out agreements 393,624 288,374 Risk participation-in agreements 75,223 77,016 Foreign exchange contracts: Buys foreign currency, sells U.S. currency 2,383 2,004 Sells foreign currency, buys U.S. currency 2,400 2,006 |
Schedule of lease cost, supplemental cash flow and supplemental balance sheet information | At December 31, 2022 At December 31, 2021 At December 31, 2020 (In Thousands) The components of lease expense were as follow: Operating lease cost $ 6,305 $ 6,163 $ 6,386 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 6,481 $ 6,246 $ 6,518 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 2,082 $ 790 $ 72 Supplemental balance sheet information related to leases was as follows: Operating Leases Operating lease right-of-use assets $ 19,484 $ 20,508 $ 24,143 Operating lease liabilities 19,484 20,508 24,143 Weighted Average Remaining Lease Term Operating leases 7.39 6.36 6.95 Weighted Average Discount Rate Operating leases 3.5 % 3.1 % 3.2 % |
Maturities of operating leases | A summary of future minimum rental payments under such leases at the dates indicated follows: Year ended December 31, Minimum Rental Payments (In Thousands) 2023 $ 5,890 2024 4,482 2025 3,207 2026 2,387 2027 1,609 Thereafter 5,416 Total $ 22,991 Less imputed interest (3,507) $ 19,484 |
Earnings per Share ("EPS") (Tab
Earnings per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic EPS and diluted EPS | The following table is a reconciliation of basic EPS and diluted EPS: For the year ended December 31, 2022 2021 2020 Basic Fully Basic Fully Basic Fully (Dollars in Thousands, Except Per Share Amounts) Numerator: Net income $ 109,744 $ 109,744 $ 115,440 $ 115,440 $ 47,635 $ 47,635 Denominator: Weighted average shares outstanding 77,079,278 77,079,278 77,974,851 77,974,851 78,951,892 78,951,892 Effect of dilutive securities — 272,556 — 268,565 — 151,397 Adjusted weighted average shares outstanding 77,079,278 77,351,834 77,974,851 78,243,416 78,951,892 79,103,289 EPS $ 1.42 $ 1.42 $ 1.48 $ 1.48 $ 0.60 $ 0.60 |
Comprehensive Income_(Loss) (Ta
Comprehensive Income/(Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive (loss) income by component, net of tax | Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the periods indicated: Year Ended December 31, 2022 Investment Securities Available-for-Sale Net Change in Fair Value of Cash Flow Hedges Postretirement Accumulated Other (In Thousands) Balance at December 31, 2021 $ (183) $ 37 $ 36 $ (110) Other comprehensive income (loss) (60,265) (2,111) 452 (61,924) Reclassification adjustment for (income) expense recognized in earnings 255 (168) — 87 Balance at December 31, 2022 $ (60,193) $ (2,242) $ 488 $ (61,947) Year Ended December 31, 2021 Investment Securities Available-for-Sale Net Change in Fair Value of Cash Flow Hedges Postretirement Accumulated Other (In Thousands) Balance at December 31, 2020 $ 16,582 $ 7 $ (99) $ 16,490 Other comprehensive income (loss) (16,795) 37 183 (16,575) Reclassification adjustment for (income) expense recognized in earnings 30 (7) (48) (25) Balance at December 31, 2021 $ (183) $ 37 $ 36 $ (110) Year Ended December 31, 2020 Investment Securities Available-for-Sale Net Change in Fair Value of Cash Flow Hedges Postretirement Accumulated Other (In Thousands) Balance at December 31, 2019 $ 2,199 $ — $ 84 $ 2,283 Other comprehensive income (loss) 17,087 7 (248) 16,846 Reclassification adjustment for (income) expense recognized in earnings (2,704) — 65 (2,639) Balance at December 31, 2020 $ 16,582 $ 7 $ (99) $ 16,490 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Hedged Forecasted Transaction Affects Earnings | The following table reflects the Company's derivative positions as of the date indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes. As of December 31, 2022, the Company had no interest rate swaps on borrowings. At December 31, 2022 Notional Amount Average Maturity Weighted Average Rate Fair Value Current Rate Paid Received Fixed Swap Rate (in thousands) (in years) (in thousands) Interest rate swaps on loans $ 150,000 3.77 4.11 % 3.26 % $ (3,030) |
Schedule of fair value and classification of derivative financial instruments on the consolidated balance sheets and the effect of the derivative financial instruments on the consolidated income statements | The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging: Notional Amount Maturing Number of Positions Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2022 (Dollars In Thousands) Loan level derivatives Receive fixed, pay variable 132 $ 71,547 $ 69,454 $ 141,498 $ 68,140 $ 1,139,070 $ 1,489,709 $ 103,640 Pay fixed, receive variable 132 71,547 69,454 141,498 68,140 1,139,070 1,489,709 103,640 Risk participation-out agreements 54 38,931 22,979 27,508 6,222 297,984 393,624 347 Risk participation-in agreements 8 18,421 — — 23,766 33,036 75,223 31 Foreign exchange contracts Buys foreign currency, sells U.S. currency 12 $ 2,383 $ — $ — $ — $ — $ 2,383 $ 130 Sells foreign currency, buys U.S. currency 12 2,400 — — — — 2,400 112 Notional Amount Maturing Number of Positions Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2021 (Dollars In Thousands) Loan level derivatives Receive fixed, pay variable 135 $ 8,244 $ 2,346 $ 83,461 $ 137,856 $ 1,092,702 $ 1,324,609 $ 63,798 Pay fixed, receive variable 135 8,244 2,346 83,461 137,856 1,092,702 1,324,609 63,798 Risk participation-out agreements 41 — 6,869 22,673 6,573 252,259 288,374 1,236 Risk participation-in agreements 8 — 18,718 — — 58,298 77,016 207 Foreign exchange contracts Buys foreign currency, sells U.S. currency 10 $ 2,004 $ — $ — $ — $ — $ 2,004 $ 9 Sells foreign currency, buys U.S. currency 11 2,006 — — — — 2,006 7 Changes in the fair value are recognized directly in the Company's consolidated statements of income and are included in other non-interest income Year Ended December 31, 2022 2021 (In Thousands) Net (loss) gain recognized in income on: Net risk participation agreements $ (714) $ (453) Foreign exchange contracts 16 (6) Total $ (698) $ (459) |
Schedule of offsetting derivatives and amounts subject to master netting agreements not offset in the audited consolidated balance sheet | The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the consolidated balance sheet at the dates indicated: At December 31, 2022 Gross Gross Amounts Net Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Net Amount Financial Instruments Pledged Cash Collateral Pledged (In Thousands) Asset derivatives Derivatives designated as hedging instruments: Interest rate derivatives $ 34 $ — $ 34 $ — $ — $ 34 Derivatives not designated as hedging instruments: Loan level derivatives $ 108,963 $ — $ 108,963 $ — $ — $ 108,963 Risk participation-out agreements 347 — 347 — — 347 Foreign exchange contracts 130 — 130 — — 130 Total $ 109,474 $ — $ 109,474 $ — $ — $ 109,474 Liability derivatives Derivatives designated as hedging instruments: Interest rate derivatives $ 3,170 $ — $ 3,170 $ — $ — $ 3,170 Derivatives not designated as hedging instruments: Loan level derivatives $ 108,963 $ — $ 108,963 $ 2,393 $ — $ 106,570 Risk participation-in agreements 31 — 31 — — 31 Foreign exchange contracts 112 — 112 — — 112 Total $ 112,276 $ — $ 112,276 $ 2,393 $ — $ 109,883 At December 31, 2021 Gross Gross Amounts Net Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Net Amount Financial Instruments Pledged Cash Collateral Pledged (In Thousands) Asset derivatives Derivatives designated as hedging instruments: Interest rate derivatives $ 43 $ — $ 43 $ — $ — $ 43 Derivatives not designated as hedging instruments: Loan level derivatives $ 73,462 $ — $ 73,462 $ — $ — $ 73,462 Risk participation-out agreements 1,236 — 1,236 — — 1,236 Foreign exchange contracts 9 — 9 — — 9 Total $ 74,750 $ — $ 74,750 $ — $ — $ 74,750 Liability derivatives Derivatives designated as hedging instruments: Interest rate derivatives $ 1 $ — $ 1 $ — $ — $ 1 Derivatives not designated as hedging instruments: Loan level derivatives $ 73,462 $ — $ 73,462 $ 118,461 $ 8,410 $ (53,409) Risk participation-in agreements 207 — 207 — — 207 Foreign exchange contracts 7 — 7 — — 7 Total $ 73,677 $ — $ 73,677 $ 118,461 $ 8,410 $ (53,194) |
Schedule of derivatives designated as hedges and impact on OCI | These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution. Fair Value Year Ended December 31, 2022 Year Ended December 31, 2021 (Dollars in Thousands) Derivatives designated as hedges $ (3,136) $ 42 (Loss) in OCI on derivatives (effective portion), net of tax $ (2,242) $ 37 Gain (loss) reclassified from OCI into interest income or interest expense (effective portion) $ 61 $ 7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Income tax expense is comprised of the following amounts: Year Ended December 31, 2022 2021 2020 (In Thousands) Current provision: Federal $ 17,414 $ 25,608 $ 22,450 State 8,434 8,119 7,077 Total current provision 25,848 33,727 29,527 Deferred provision (benefit) Federal 3,994 3,972 (11,452) State 363 1,452 (3,633) Total deferred provision (benefit) 4,357 5,424 (15,085) Total provision for income taxes $ 30,205 $ 39,151 $ 14,442 |
Schedule of reconciliation of income tax expense | Total provision for income taxes differed from the amounts computed due to the following: Year Ended December 31, 2022 2021 2020 (Dollars In Thousands) Expected income tax expense at statutory federal tax rate $ 29,390 $ 32,464 $ 13,036 State taxes, net of federal income tax benefit 6,950 7,561 2,722 Bank-owned life insurance (215) (261) (212) Tax-exempt interest income (163) (171) (220) Merger and acquisition expense 302 — — Energy tax credits (6,082) — — Investments in affordable housing projects (544) (565) (595) Other, net 567 123 (289) Total provision for income taxes $ 30,205 $ 39,151 $ 14,442 Effective income tax rate 21.6 % 25.3 % 23.3 % |
Schedule of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at the dates indicated are as follows: At December 31, 2022 2021 (In Thousands) Deferred tax assets: Allowance for credit losses $ 30,901 $ 29,529 Right-of-use asset - operating leases 5,048 5,312 Deferred compensation 5,669 5,491 Identified intangible assets and goodwill 5,462 5,953 Supplemental Executive Retirement Plans 2,493 3,165 Postretirement benefits 1,187 517 Nonaccrual interest 558 817 Restricted stock and stock option plans 770 480 Unrealized loss on investment securities available-for-sale 17,019 52 Employee stock ownership plan — 27 Unamortized PPP fee income — 429 Other 569 486 Total gross deferred tax assets 69,676 52,258 Deferred tax liabilities: Operating leases - liability 5,048 5,312 Identified intangible assets and goodwill 1,910 1,952 Deferred loan origination costs, net 3,507 3,238 Depreciation 277 829 Prepaid expense 290 159 Accrued Expense 5,463 774 Acquisition fair value adjustments 944 1,007 Total gross deferred tax liabilities 17,439 13,271 Net deferred tax asset $ 52,237 $ 38,987 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Schedule of the Company's and the bank's actual and required capital amounts and ratios | The following table presents actual and required capital ratios as of December 31, 2022 for the Company and the Banks. Actual Minimum Required for Capital Adequacy Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer Minimum Required to be Considered Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) At December 31, 2022: Brookline Bancorp, Inc. Common equity Tier 1 capital ratio (1) $ 893,978 12.05 % $ 333,851 4.50 % $ 519,323 7.00 % N/A N/A Tier 1 leverage capital ratio (2) 903,695 10.26 % 352,318 4.00 % 352,318 4.00 % N/A N/A Tier 1 risk-based capital ratio (3) 903,695 12.18 % 445,170 6.00 % 630,657 8.50 % N/A N/A Total risk-based capital ratio (4) 1,071,078 14.44 % 593,395 8.00 % 778,831 10.50 % N/A N/A Brookline Bank Common equity Tier 1 capital ratio (1) $ 570,530 11.24 % $ 228,415 4.50 % $ 355,312 7.00 % $ 329,933 6.50 % Tier 1 leverage capital ratio (2) 570,530 9.72 % 234,786 4.00 % 234,786 4.00 % 293,483 5.00 % Tier 1 risk-based capital ratio (3) 570,530 11.24 % 304,553 6.00 % 431,451 8.50 % 406,071 8.00 % Total risk-based capital ratio (4) 634,226 12.50 % 405,905 8.00 % 532,750 10.50 % 507,381 10.00 % BankRI Common equity Tier 1 capital ratio (1) $ 244,422 10.32 % $ 106,579 4.50 % $ 165,790 7.00 % $ 153,948 6.50 % Tier 1 leverage capital ratio (2) 244,422 8.13 % 120,257 4.00 % 120,257 4.00 % 150,321 5.00 % Tier 1 risk-based capital ratio (3) 244,422 10.32 % 142,106 6.00 % 201,317 8.50 % 189,474 8.00 % Total risk-based capital ratio (4) 274,091 11.57 % 189,518 8.00 % 248,743 10.50 % 236,898 10.00 % _______________________________________________________________________________ (1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets. (2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets. (3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets. (4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets. The following table presents actual and required capital ratios as of December 31, 2021 for the Company and the Banks under the regulatory capital rules then in effect. Actual Minimum Required for Capital Adequacy Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer Minimum Required to be Considered Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) At December 31, 2021: Brookline Bancorp, Inc. Common equity Tier 1 capital ratio (1) $ 834,988 11.86 % $ 316,817 4.50 % $ 492,826 7.00 % N/A N/A Tier 1 leverage capital ratio (2) 844,658 10.15 % 332,870 4.00 % 332,870 4.00 % N/A N/A Tier 1 risk-based capital ratio (3) 844,658 11.99 % 422,681 6.00 % 598,798 8.50 % N/A N/A Total risk-based capital ratio (4) 1,007,237 14.30 % 563,489 8.00 % 739,580 10.50 % N/A N/A Brookline Bank Common equity Tier 1 capital ratio (1) $ 570,278 11.94 % $ 214,929 4.50 % $ 334,334 7.00 % $ 310,453 6.50 % Tier 1 leverage capital ratio (2) 570,278 10.51 % 217,042 4.00 % 217,042 4.00 % 271,303 5.00 % Tier 1 risk-based capital ratio (3) 570,278 11.94 % 286,572 6.00 % 405,977 8.50 % 382,096 8.00 % Total risk-based capital ratio (4) 630,194 13.20 % 381,936 8.00 % 501,291 10.50 % 477,420 10.00 % BankRI Common equity Tier 1 capital ratio (1) $ 260,679 11.36 % $ 103,262 4.50 % $ 160,630 7.00 % $ 149,156 6.50 % Tier 1 leverage capital ratio (2) 260,679 8.58 % 121,529 4.00 % 121,529 4.00 % 151,911 5.00 % Tier 1 risk-based capital ratio (3) 260,679 11.36 % 137,683 6.00 % 195,050 8.50 % 183,577 8.00 % Total risk-based capital ratio (4) 289,454 12.61 % 183,635 8.00 % 241,020 10.50 % 229,543 10.00 % _______________________________________________________________________________ (1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets. (2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets. (3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets. (4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Reconciliation of changes in plan assets and benefit obligation | The following table presents the change in plan assets and change in benefit obligation: Year Ended 2022 2021 2020 (In Thousands) Change in plan assets: Fair value of plan assets at beginning of year $ — $ — $ — Employer contributions 34 35 38 Benefits paid (34) (35) (38) Fair value of plan assets at end of year $ — $ — $ — Change in benefit obligation: Benefit obligation at beginning of year $ 2,026 $ 2,095 $ 1,757 Service cost 64 67 55 Interest cost 55 50 56 Estimated benefits paid (34) (35) (38) Actuarial (gain) loss (581) (151) 265 Benefit obligation at end of year $ 1,530 $ 2,026 $ 2,095 Funded status at end of year $ 1,530 $ 2,026 $ 2,095 Accumulated benefit obligation at end of year $ 1,530 $ 2,026 $ 2,095 |
Schedule of the components of net periodic postretirement benefit cost and other amounts recognized in other comprehensive income | The following table presents the components of net periodic postretirement benefit cost and other amounts recognized in other comprehensive income: Year Ended 2022 2021 2020 (In Thousands) Net periodic benefit expense: Service cost $ 64 $ 67 $ 55 Interest cost 55 50 56 Prior service credit — (2) (21) Actuarial gain — — — Net periodic benefit expense $ 119 $ 115 $ 90 Changes in postretirement benefit obligation recognized in other comprehensive income: Net actuarial (loss) gain 611 $ 185 $ (227) Prior service credit — (2) (21) Total pre-tax changes in postretirement benefit obligation recognized in other comprehensive income $ 611 $ 183 $ (248) |
Schedule of effect of 1% change in assumed health care cost trend rates | A 1% change in assumed health care cost trend rates would have the following effects: Year Ended 1% Increase 1% Decrease (In Thousands) Effect on total service and interest cost components of net periodic postretirement benefit costs $ 25 $ (20) Effect on the accumulated postretirement benefit obligation 260 (213) |
Activity under recognition and retention plans | The following table presents information about the Company's restricted stock awards as of and for the year ending December 31, 2022: Restricted Stock Awards Outstanding Weighted Average Price (Dollars in Thousands, Except Per Share Amounts) Restricted Stock Awards: Outstanding at December 31, 2021 500,098 $ 12.70 Granted 310,349 13.80 Vested (210,551) 13.51 Forfeited / Canceled (3,384) 13.05 Added by Performance Factor 4,983 14.25 Outstanding at December 31, 2022 601,495 $ 12.99 Unrecognized compensation cost $ 2,908 Weighted average remaining recognition period (months) 21 months |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring and non-recurring basis | The following table set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and 2021: Carrying Value as of December 31, 2022 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Investment securities available-for-sale: GSE debentures $ — $ 152,422 $ — $ 152,422 GSE CMOs — 18,220 — 18,220 GSE MBSs — 140,576 — 140,576 Corporate debt obligations — 13,764 — 13,764 U.S. Treasury bonds — 331,307 — 331,307 Foreign government obligations — 477 — 477 Total investment securities available-for-sale $ — $ 656,766 $ — $ 656,766 Interest rate derivatives — 34 — 34 Loan level derivatives — 108,963 — 108,963 Risk participation-out agreements — 347 — 347 Foreign exchange contracts — 130 — 130 Liabilities: Interest rate derivatives $ — $ 3,170 $ — $ 3,170 Loan level derivatives — 108,963 — 108,963 Risk participation-in agreements — 31 — 31 Foreign exchange contracts — 112 — 112 Carrying Value as of December 31, 2021 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Investment securities available-for-sale: GSE debentures $ — $ 217,505 $ — $ 217,505 GSE CMOs — 28,139 — 28,139 GSE MBSs — 199,772 — 199,772 Corporate debt obligations — 22,683 — 22,683 U.S. Treasury bonds — 252,268 — 252,268 Foreign government obligations — 499 — 499 Total investment securities available-for-sale $ — $ 720,866 $ — $ 720,866 Interest rate derivatives — 43 — 43 Loan level derivatives — 73,462 — 73,462 Risk participation-out agreements — 1,236 — 1,236 Foreign exchange contracts — 9 — 9 Liabilities: Interest rate derivatives $ — $ 1 $ — $ 1 Loan level derivatives $ — $ 73,462 $ — $ 73,462 Risk participation-in agreements — 207 — 207 Foreign exchange contracts — 7 — 7 Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2022 and 2021 are summarized below: Carrying Value as of December 31, 2022 Level 1 Level 2 Level 3 Total (In Thousands) Assets measured at fair value on a non-recurring basis: Collateral-dependent impaired loans and leases $ — $ — $ 779 $ 779 OREO — — — — Repossessed assets — 408 — 408 Total assets measured at fair value on a non-recurring basis $ — $ 408 $ 779 $ 1,187 Carrying Value as of December 31, 2021 Level 1 Level 2 Level 3 Total (In Thousands) Assets measured at fair value on a non-recurring basis: Collateral-dependent impaired loans and leases $ — $ — $ 802 $ 802 OREO $ — $ — $ — $ — Repossessed assets — 718 — 718 Total assets measured at fair value on a non-recurring basis $ — $ 718 $ 802 $ 1,520 |
Schedule of quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a recurring basis | The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a recurring basis at the dates indicated. Fair Value Valuation Technique At December 31, 2022 At December 31, 2021 (Dollars in Thousands) Collateral-dependent impaired loans and leases $ 779 $ 802 Appraisal of collateral (1) Other real estate owned — — Appraisal of collateral (1) _______________________________________________________________________________ (1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors |
Summary of the carrying values and estimated fair values | The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable. There were no transfers between levels during 2022. Fair Value Measurements Carrying Estimated Level 1 Level 2 Level 3 (In Thousands) At December 31, 2022 Financial assets: Loans and leases, net $ 7,545,906 $ 7,450,654 $ — $ — $ 7,450,654 Financial liabilities: Certificates of deposit 1,238,287 1,217,024 — 1,217,024 — Borrowed funds 1,432,652 1,431,716 — 1,431,716 — At December 31, 2021 Financial assets: Loans and leases, net $ 7,055,373 $ 6,983,524 $ — $ — $ 6,983,524 Restricted equity securities 28,981 28,981 — — 28,981 Financial liabilities: Certificates of deposit 1,283,237 1,283,012 — 1,283,012 — Borrowed funds 357,321 350,471 — 350,471 — |
Condensed Parent Company Fina_2
Condensed Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance sheets | Balance Sheets At December 31, 2022 2021 (In Thousands) ASSETS Cash and due from banks $ 161,281 $ 88,823 Short-term investments 32 32 Total cash and cash equivalents 161,313 88,855 ESOP loan to Brookline Bank — 252 Restricted equity securities 152 252 Premises and equipment, net 4,167 2,121 Deferred tax asset 2,646 2,249 Investment in subsidiaries, at equity 877,833 956,045 Goodwill 35,267 35,267 Other assets 15,799 10,804 Total assets $ 1,097,177 $ 1,095,845 LIABILITIES AND STOCKHOLDERS' EQUITY Borrowed funds $ 84,044 $ 83,897 Accrued expenses and other liabilities 21,008 16,606 Total liabilities 105,052 100,503 Stockholders' equity: Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively 852 852 Additional paid-in capital 736,074 736,826 Retained earnings 412,019 342,639 Accumulated other comprehensive (loss) income (61,947) (110) Treasury stock, at cost; 7,731,445 shares and 7,037,464 shares, respectively (94,873) (84,718) Unallocated common stock held by ESOP; 0 shares and 24,660 shares, respectively — (147) Total stockholders' equity 992,125 995,342 Total liabilities and stockholders' equity $ 1,097,177 $ 1,095,845 |
Statements of income | Statements of Income Year Ended December 31, 2022 2021 2020 (In Thousands) Interest and dividend income: Dividend income from subsidiaries $ 130,500 $ 88,000 $ 42,000 Marketable and restricted equity securities — — 52 ESOP loan to Brookline Bank 13 34 56 Intercompany loan to Brookline Bank — 139 330 Total interest and dividend income 130,513 88,173 42,438 Interest expense: Borrowed funds 5,188 5,043 5,108 Net interest income 125,325 83,130 37,330 Non-interest income: Gain (loss) on securities, net 6,106 — (1,306) Other 425 13 123 Total non-interest income 6,531 13 (1,183) Non-interest expense: Compensation and employee benefits 1,531 1,540 403 Occupancy 1,735 1,605 1,689 Equipment and data processing (1) (255) (363) (745) Directors' fees 435 402 433 Franchise taxes 250 253 250 Insurance 663 678 570 Professional services 829 295 841 Advertising and marketing 82 62 35 Merger and acquisition expense 2,249 — — Other (1) (1,360) (1,288) (1,571) Total non-interest expense 6,159 3,184 1,905 Income before income taxes 125,697 79,959 34,242 Credit for income taxes (421) (1,837) (1,427) Income before equity in undistributed income of subsidiaries 126,118 81,796 35,669 Equity in undistributed income of subsidiaries (16,374) 33,644 11,966 Net income $ 109,744 $ 115,440 $ 47,635 _______________________________________________________________________________ (1) The Parent Company received a net benefit in 2022, 2021 and 2020 from the intercompany allocation of expense that is eliminated in consolidation. |
Statements of cash flows | Statements of Cash Flows Year Ended December 31, 2022 2021 2020 (In Thousands) Cash flows from operating activities: Net income attributable to parent company $ 109,744 $ 115,440 $ 47,635 Adjustments to reconcile net income to net cash provided from operating activities: Equity in undistributed income of subsidiaries 16,374 (33,644) (11,966) Depreciation of premises and equipment 1,211 1,111 1,546 Amortization of debt issuance costs 100 100 100 Equity securities held-for-trading — — 2,569 Other operating activities, net (11,989) (5,416) (18,655) Net cash provided from (used for) operating activities 115,440 77,591 21,229 Cash flows from investing activities: Repayment of ESOP loan by Brookline Bank 252 250 250 Pay down of intercompany loan to Brookline Bank — 10,000 20,000 Proceeds from sale of restricted equity securities 100 — — Purchase of premises and equipment (3,257) (1,820) (555) Net cash (used for) provided from investing activities (2,905) 8,430 19,695 Cash flows from financing activities: Payment of dividends on common stock (40,077) (37,463) (36,396) Net cash (used for) provided from financing activities (40,077) (37,463) (36,396) Net increase (decrease) in cash and cash equivalents 72,458 48,558 4,528 Cash and cash equivalents at beginning of year 88,855 40,297 35,769 Cash and cash equivalents at end of year $ 161,313 $ 88,855 $ 40,297 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) office bank segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Basis of Presentation | |||
Number of full-service banking offices | office | 29 | ||
Number of lending offices | office | 2 | ||
Impairment of restricted securities | $ 0 | $ 0 | |
Number of days past due, non-accrual status (in days) | 90 days | ||
Period after which a non-accrual loan is restructured (in months) | 6 months | ||
BOLI, as percentage of capital plus reserves, maximum, individual carrier (as a percent) | 10% | ||
BOLI, as percentage of capital plus reserves, maximum, aggregate (as a percent) | 25% | ||
Number of reportable segments | segment | 1 | ||
Number of operating segments | segment | 1 | ||
Allowance for loans and lease losses | $ 98,482,000 | 99,084,000 | $ 114,379,000 |
Reserve for unfunded credits | $ 20,602,000 | $ 14,794,000 | |
Minimum | |||
Basis of Presentation | |||
Term of operating lease | 3 years | ||
Maximum | |||
Basis of Presentation | |||
Term of operating lease | 25 years | ||
BankRI | |||
Basis of Presentation | |||
Number of full-service banking offices | bank | 20 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jan. 01, 2023 office $ / shares shares | Dec. 31, 2022 USD ($) office | |
Business Acquisition [Line Items] | ||
Number of full-service banking offices | 29 | |
Merger related expenses | $ | $ 2.2 | |
Subsequent Event | Lower Hudson Valley of New York State | ||
Business Acquisition [Line Items] | ||
Number of full-service banking offices | 15 | |
PCSB Financial Corporation | Subsequent Event | ||
Business Acquisition [Line Items] | ||
Cash portion, cash per share for PCSB common stock converted (in USD dollar per share) | $ / shares | $ 22 | |
Common stock portion (in shares) | shares | 1.3284 | |
Percentage of shares converted | 60% |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Average amount required to be held with Federal Reserve Bank | $ 0 | $ 0 |
Aggregate reserves | $ 301,200,000 | $ 251,800,000 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-Term Investments - Short-term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Short-term investments | ||
FRB interest bearing reserve | $ 141,198 | $ 235,108 |
FHLB overnight deposits | 49,994 | 26,364 |
Total short-term investments | $ 191,192 | $ 261,472 |
Investment Securities - Summary
Investment Securities - Summary of Available-for-sale and Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 733,978 | $ 721,101 |
Gross Unrealized Gains | 281 | 7,681 |
Gross Unrealized Losses | 77,493 | 7,916 |
Investment securities available-for-sale | 656,766 | 720,866 |
GSE debentures | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 176,751 | 219,723 |
Gross Unrealized Gains | 0 | 2,017 |
Gross Unrealized Losses | 24,329 | 4,235 |
Investment securities available-for-sale | 152,422 | 217,505 |
GSE CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,977 | 27,892 |
Gross Unrealized Gains | 0 | 274 |
Gross Unrealized Losses | 1,757 | 27 |
Investment securities available-for-sale | 18,220 | 28,139 |
GSE MBSs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 159,824 | 196,930 |
Gross Unrealized Gains | 1 | 3,749 |
Gross Unrealized Losses | 19,249 | 907 |
Investment securities available-for-sale | 140,576 | 199,772 |
Corporate debt obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,076 | 22,178 |
Gross Unrealized Gains | 0 | 505 |
Gross Unrealized Losses | 312 | 0 |
Investment securities available-for-sale | 13,764 | 22,683 |
U.S. Treasury bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 362,850 | 253,878 |
Gross Unrealized Gains | 280 | 1,136 |
Gross Unrealized Losses | 31,823 | 2,746 |
Investment securities available-for-sale | 331,307 | 252,268 |
Foreign government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 500 | 500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 23 | 1 |
Investment securities available-for-sale | $ 477 | $ 499 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | Dec. 31, 2020 USD ($) | |
Investment Securities | |||
Investment securities available-for-sale | $ 656,766,000 | $ 720,866,000 | |
Debt securities, unrealized gain (loss) | (77,200,000) | (200,000) | |
AFS, debt securities, unrealized loss position | $ 630,494,000 | $ 353,799,000 | |
Percentage of securities in unrealized loss positions, available-for-sale securities | 96% | 49.10% | |
AFS, debt securities, unrealized loss position, accumulated loss | $ 77,493,000 | $ 7,916,000 | |
Equity securities held-for-trading | $ 0 | $ 0 | |
Debt Securities, Available For Sale, Accrued Interest, After Allowance For Credit Loss, Statement of Financial Position Extensible List Not Disclosed Flag | Accrued interest receivables | Accrued interest receivables | |
Accrued interest receivable | $ 2,600,000 | $ 2,800,000 | |
Number of days past due to be placed in nonaccrual status | 90 days | ||
Payments to acquired AFS debt securities | $ 197,632,000 | 223,073,000 | $ 503,495,000 |
Estimated fair value of debt securities have right to call or prepay the obligations | 53,100,000 | 67,000,000 | |
Estimated fair value of debt securities have right to call or prepay the obligations, scheduled maturities less than one year | 2,500,000 | 3,100,000 | |
Estimated fair value of debt securities have right to call or prepay the obligations, scheduled maturities of after one year through five years | 6,300,000 | 9,400,000 | |
Estimated fair value of debt securities have right to call or prepay the obligations, scheduled maturities after five years through ten years | 37,400,000 | 44,900,000 | |
Estimated fair value of debt securities have right to call or prepay the obligations, scheduled maturities of which is after 10 years | 6,900,000 | 9,600,000 | |
Proceeds from sales of investment securities available-for-sale | 78,778,000 | 39,652,000 | |
GSE debt securities excluding specified securities | |||
Investment Securities | |||
Investment securities available-for-sale | 2,700,000 | 4,200,000 | |
GSE debentures | |||
Investment Securities | |||
Investment securities available-for-sale | 152,422,000 | 217,505,000 | |
Debt securities, unrealized gain (loss) | $ (24,300,000) | $ (2,200,000) | |
Available-for-sale, qualitative disclosure, number of positions | security | 32 | 45 | |
Number of securities in unrealized loss positions | security | 31 | 12 | |
GSE CMOs | |||
Investment Securities | |||
Investment securities available-for-sale | $ 18,200,000 | $ 28,100,000 | |
Debt securities, unrealized gain (loss) | $ (1,800,000) | $ 200,000 | |
Available-for-sale, qualitative disclosure, number of positions | security | 32 | 33 | |
Number of securities in unrealized loss positions | security | 5 | ||
Payments to acquired AFS debt securities | $ 0 | $ 0 | |
GSE MBSs | |||
Investment Securities | |||
Investment securities available-for-sale | 140,600,000 | 199,800,000 | |
Debt securities, unrealized gain (loss) | $ (19,200,000) | $ 2,800,000 | |
Available-for-sale, qualitative disclosure, number of positions | security | 134 | 139 | |
Number of securities in unrealized loss positions | security | 128 | 16 | |
Corporate debt obligations | |||
Investment Securities | |||
Investment securities available-for-sale | $ 13,764,000 | $ 22,683,000 | |
Debt securities, unrealized gain (loss) | $ (300,000) | $ 500,000 | |
Available-for-sale, qualitative disclosure, number of positions | security | 4 | 6 | |
Payments to acquired AFS debt securities | $ 0 | $ 0 | |
U.S. Treasury bonds | |||
Investment Securities | |||
Investment securities available-for-sale | 331,300,000 | 252,300,000 | |
Debt securities, unrealized gain (loss) | $ (31,500,000) | $ (1,600,000) | |
Available-for-sale, qualitative disclosure, number of positions | security | 41 | 34 | |
Number of securities in unrealized loss positions | security | 38 | 18 | |
Payments to acquired AFS debt securities | $ 197,100,000 | $ 223,100,000 | |
Foreign government obligations | |||
Investment Securities | |||
Investment securities available-for-sale | $ 477,000 | $ 499,000 | |
Available-for-sale, qualitative disclosure, number of positions | security | 1 | 1 | |
Collateral Pledged | |||
Investment Securities | |||
Available for sale securities pledged as collateral | $ 387,900,000 | $ 491,800,000 | |
Outstanding borrowings | $ 0 | $ 0 |
Investment Securities - Other-T
Investment Securities - Other-Than-Temporary Impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment securities available-for-sale: | ||
Less than twelve months, estimated fair value | $ 324,332 | $ 283,724 |
Less than twelve months, unrealized losses | 16,699 | 5,168 |
Twelve months or longer, estimated fair value | 306,162 | 70,075 |
Twelve months or longer, unrealized losses | 60,794 | 2,748 |
AFS, debt securities, unrealized loss position | 630,494 | 353,799 |
AFS, debt securities, unrealized loss position, accumulated loss | 77,493 | 7,916 |
Total temporarily impaired investment securities | ||
Less Than Twelve Months, Estimated Fair Value | 324,332 | 283,724 |
Less Than Twelve Months, Unrealized Losses | 16,699 | 5,168 |
Twelve Months or Longer, Estimated Fair Value | 306,162 | 70,075 |
Twelve Months or Longer, Unrealized Losses | 60,794 | 2,748 |
Total, Estimated Fair Value | 630,494 | 353,799 |
Total, Unrealized Losses | 77,493 | 7,916 |
GSE debentures | ||
Investment securities available-for-sale: | ||
Less than twelve months, estimated fair value | 56,719 | 45,695 |
Less than twelve months, unrealized losses | 1,255 | 1,487 |
Twelve months or longer, estimated fair value | 95,703 | 70,075 |
Twelve months or longer, unrealized losses | 23,076 | 2,748 |
AFS, debt securities, unrealized loss position | 152,422 | 115,770 |
AFS, debt securities, unrealized loss position, accumulated loss | 24,331 | 4,235 |
GSE CMOs | ||
Investment securities available-for-sale: | ||
Less than twelve months, estimated fair value | 16,411 | 2,712 |
Less than twelve months, unrealized losses | 1,563 | 27 |
Twelve months or longer, estimated fair value | 1,809 | 0 |
Twelve months or longer, unrealized losses | 192 | 0 |
AFS, debt securities, unrealized loss position | 18,220 | 2,712 |
AFS, debt securities, unrealized loss position, accumulated loss | 1,755 | 27 |
GSE MBSs | ||
Investment securities available-for-sale: | ||
Less than twelve months, estimated fair value | 97,858 | 57,656 |
Less than twelve months, unrealized losses | 9,823 | 907 |
Twelve months or longer, estimated fair value | 42,500 | 0 |
Twelve months or longer, unrealized losses | 9,426 | 0 |
AFS, debt securities, unrealized loss position | 140,358 | 57,656 |
AFS, debt securities, unrealized loss position, accumulated loss | 19,249 | 907 |
Corporate debt obligations | ||
Investment securities available-for-sale: | ||
Less than twelve months, estimated fair value | 13,764 | |
Less than twelve months, unrealized losses | 312 | |
Twelve months or longer, estimated fair value | 0 | |
Twelve months or longer, unrealized losses | 0 | |
AFS, debt securities, unrealized loss position | 13,764 | |
AFS, debt securities, unrealized loss position, accumulated loss | 312 | |
U.S. Treasury bonds | ||
Investment securities available-for-sale: | ||
Less than twelve months, estimated fair value | 139,103 | 177,162 |
Less than twelve months, unrealized losses | 3,723 | 2,746 |
Twelve months or longer, estimated fair value | 166,150 | 0 |
Twelve months or longer, unrealized losses | 28,100 | 0 |
AFS, debt securities, unrealized loss position | 305,253 | 177,162 |
AFS, debt securities, unrealized loss position, accumulated loss | 31,823 | 2,746 |
Foreign government obligations | ||
Investment securities available-for-sale: | ||
Less than twelve months, estimated fair value | 477 | 499 |
Less than twelve months, unrealized losses | 23 | 1 |
Twelve months or longer, estimated fair value | 0 | 0 |
Twelve months or longer, unrealized losses | 0 | 0 |
AFS, debt securities, unrealized loss position | 477 | 499 |
AFS, debt securities, unrealized loss position, accumulated loss | $ 23 | $ 1 |
Investment Securities - Portfol
Investment Securities - Portfolio Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Within 1 year | $ 119,912 | $ 53,791 |
After 1 year through 5 years | 163,941 | 139,068 |
After 5 years through 10 years | 291,284 | 322,873 |
Over 10 years | 158,841 | 205,369 |
Amortized Cost | 733,978 | 721,101 |
Estimated Fair Value | ||
Within 1 year | 119,075 | 54,183 |
After 1 year through 5 years | 156,120 | 141,928 |
After 5 years through 10 years | 244,847 | 317,324 |
Over 10 years | 136,724 | 207,431 |
Estimated Fair Value | $ 656,766 | $ 720,866 |
Weighted Average Rate | ||
Within 1 year | 3.10% | 2.09% |
After 1 year through 5 years | 2.40% | 1.95% |
After 5 years through 10 years | 1.30% | 1.29% |
Over 10 years | 2.10% | 1.96% |
Weighted Average Rate | 2.06% | 1.67% |
Investment Securities - Securit
Investment Securities - Security Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of investment securities available-for-sale | $ 78,778 | $ 39,652 |
Gross gains from sales | 0 | 273 |
Gross losses from sales | (5,785) | (303) |
Gain (loss) on sales of securities, net | $ (5,785) | $ (30) |
Restricted Equity Securities -
Restricted Equity Securities - Investments in Restricted Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted equity securities | ||
Restricted equity securities | $ 71,307 | $ 28,981 |
FHLBB stock | ||
Restricted equity securities | ||
Restricted equity securities | 52,914 | 10,488 |
FRB stock | ||
Restricted equity securities | ||
Restricted equity securities | 18,241 | 18,241 |
Other restricted equity securities | ||
Restricted equity securities | ||
Restricted equity securities | $ 152 | $ 252 |
Restricted Equity Securities _2
Restricted Equity Securities - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | |
FHLBB stock | |||
Investment Securities | |||
Dividend rate (as a percent) | 5.16% | 2.05% | 3.53% |
Loans and Leases - Summary of L
Loans and Leases - Summary of Loan and Lease Balances and Weighted Average Coupon Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 7,644,388 | $ 7,154,457 |
Weighted Average Coupon | 5.38% | 3.92% |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 3,046,746 | $ 2,842,791 |
Multi-family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 1,150,597 | 1,099,818 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 206,805 | 160,431 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 752,948 | 734,388 |
Equipment financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 1,216,585 | 1,105,611 |
Condominium association | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 46,966 | 47,137 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 844,614 | 799,737 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 322,622 | 324,156 |
Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 56,505 | 40,388 |
Commercial real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 4,404,148 | $ 4,103,040 |
Weighted Average Coupon | 4.95% | 3.38% |
Commercial real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 3,046,746 | $ 2,842,791 |
Weighted Average Coupon | 4.93% | 3.41% |
Commercial real estate loans | Multi-family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 1,150,597 | $ 1,099,818 |
Weighted Average Coupon | 4.74% | 3.26% |
Commercial real estate loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 206,805 | $ 160,431 |
Weighted Average Coupon | 6.51% | 3.60% |
Commercial loans and leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 2,016,499 | $ 1,887,136 |
Weighted Average Coupon | 6.61% | 5.42% |
Commercial loans and leases | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 752,948 | $ 734,388 |
Weighted Average Coupon | 6.03% | 3.31% |
Commercial loans and leases | SBA PPP Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 257 | $ 67,711 |
Commercial loans and leases | Equipment financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 1,216,585 | $ 1,105,611 |
Weighted Average Coupon | 7.04% | 6.86% |
Commercial loans and leases | Condominium association | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 46,966 | $ 47,137 |
Weighted Average Coupon | 4.80% | 4.34% |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 1,223,741 | $ 1,164,281 |
Weighted Average Coupon | 4.90% | 3.41% |
Consumer loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 844,614 | $ 799,737 |
Weighted Average Coupon | 3.98% | 3.49% |
Consumer loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 322,622 | $ 324,156 |
Weighted Average Coupon | 7% | 3.27% |
Consumer loans | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | $ 56,505 | $ 40,388 |
Weighted Average Coupon | 6.65% | 2.90% |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unamortized deferred loan origination fees and costs | $ 11,300,000 | $ 10,900,000 |
Percentage of loans to aggregate outstanding amount in Other areas of the United States | 26.50% | |
Percentage of loans to aggregate outstanding amount in the greater New York/New Jersey Metropolitan area and northeastern states | 73.50% | |
Total Loans and Leases | $ 7,644,388,000 | 7,154,457,000 |
Asset Pledged as Collateral with Right | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 2,400,000,000 | 2,700,000,000 |
FRB borrowings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Directors, executive officers and their affiliates | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded commitments on extensions of credit | 12,100,000 | 28,500,000 |
Loans And Leases Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 26,100,000 | $ 16,700,000 |
Loans and Leases - Loans and Ad
Loans and Leases - Loans and Advances to Directors, Executive Officers and Their Affiliates (Details) - Directors, executive officers and their affiliates - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in the total amounts of loans and advances, all of which were performing | ||
Balance at beginning of year | $ 111,326 | $ 78,201 |
New loans granted during the year | 1,675 | 5,053 |
Loans reclassified as insider loans | 0 | |
Advances on lines of credit | 1,233 | 44,638 |
Repayments | 9,343 | (16,566) |
Balance at end of year | $ 123,577 | $ 111,326 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Changes in the Allowance for Loan and Lease Losses and Recorded Investments by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in allowance for loan losses | |||
Beginning balance | $ 99,084 | $ 114,379 | |
Charge-offs | (5,133) | (7,526) | |
Recoveries | 1,813 | 1,792 | |
(Credit) provision for loan and lease losses excluding unfunded commitments | 2,718 | (9,561) | $ 59,626 |
Ending balance | 98,482 | 99,084 | 114,379 |
Provisions for credit losses | |||
Provision (credit) for loan and lease losses: | 2,718 | (9,561) | 59,626 |
Provision (credit) for credit losses | 8,627 | (7,837) | 61,886 |
Unfunded credit commitments | |||
Provisions for credit losses | |||
Provision for other credit losses | 5,807 | 1,724 | 2,260 |
Investment securities available-for-sale | |||
Provisions for credit losses | |||
Provision for other credit losses | 102 | 0 | 0 |
Commercial Real Estate | |||
Changes in allowance for loan losses | |||
Beginning balance | 69,213 | 80,132 | |
Charge-offs | (37) | (28) | |
Recoveries | 24 | 12 | |
(Credit) provision for loan and lease losses excluding unfunded commitments | (1,046) | (10,903) | 41,573 |
Ending balance | 68,154 | 69,213 | 80,132 |
Provisions for credit losses | |||
Provision (credit) for loan and lease losses: | (1,046) | (10,903) | 41,573 |
Commercial | |||
Changes in allowance for loan losses | |||
Beginning balance | 27,055 | 29,498 | |
Charge-offs | (5,068) | (7,464) | |
Recoveries | 1,725 | 1,541 | |
(Credit) provision for loan and lease losses excluding unfunded commitments | 2,892 | 3,480 | 17,050 |
Ending balance | 26,604 | 27,055 | 29,498 |
Provisions for credit losses | |||
Provision (credit) for loan and lease losses: | 2,892 | 3,480 | 17,050 |
Consumer | |||
Changes in allowance for loan losses | |||
Beginning balance | 2,816 | 4,749 | |
Charge-offs | (28) | (34) | |
Recoveries | 64 | 239 | |
(Credit) provision for loan and lease losses excluding unfunded commitments | 872 | (2,138) | 1,003 |
Ending balance | 3,724 | 2,816 | 4,749 |
Provisions for credit losses | |||
Provision (credit) for loan and lease losses: | $ 872 | $ (2,138) | $ 1,003 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Unfunded credit commitments liability included in other liabilities | $ 20,600,000 | $ 14,800,000 | |
Increase (decrease) in allowance | 5,800,000,000 | 1,700,000,000 | |
Unfunded credit commitments liability charge-off | $ 0 | 0 | |
Allowance for credit loss, completion of revision, period from forecast start date | 5 years | ||
Allowance for loans and lease losses | $ 98,482,000 | 99,084,000 | $ 114,379,000 |
Increase in restructuring loans | 600,000 | ||
Total troubled debt restructurings | 19,912,000 | 19,289,000 | |
Recorded investment, at end of period | 7,778,000 | 5,383,000 | 5,349,000 |
Financial impact of modification of performing and nonperforming loans | 100,000 | 700,000 | |
Loans modified to trouble debt restructurings | 1,900,000 | 1,300,000 | |
Equipment financing | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Recorded investment, at end of period | 1,445,000 | 3,500,000 | $ 1,914,000 |
General Allowance | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for loans and lease losses | 95,400,000 | 95,800,000 | |
Specific Allowance | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Increase (decrease) in allowance | (200,000) | ||
Allowance for loans and lease losses | $ 3,100,000 | 3,300,000 | |
Specific Allowance | Equipment financing | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Increase (decrease) in allowance | (2,400,000) | ||
Specific Allowance | C&I Relationships | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Increase (decrease) in allowance | $ 2,200,000 | ||
Minimum | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for credit loss, start of revision, period from forecast start date | 2 years | ||
Maximum | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for credit loss, start of revision, period from forecast start date | 3 years |
Allowance for Credit Losses - C
Allowance for Credit Losses - Credit Quality Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Credit Quality Information | ||
Total loans and leases | $ 7,644,388,000 | $ 7,154,457,000 |
Total | ||
Credit Quality Information | ||
Year One | 1,350,130,000 | |
Year Two | 1,348,079,000 | |
Year Three | 683,163,000 | |
Year Four | 695,652,000 | |
Year Five | 470,941,000 | |
Prior | 1,459,993,000 | |
Revolving Loans | 420,336,000 | |
Revolving Loans Converted to Term Loans | 48,858,000 | |
Total loans and leases | 6,477,152,000 | 6,030,564,000 |
Total | Pass | ||
Credit Quality Information | ||
Year One | 1,347,661,000 | |
Year Two | 1,330,657,000 | |
Year Three | 680,138,000 | |
Year Four | 662,480,000 | |
Year Five | 465,582,000 | |
Prior | 1,422,512,000 | |
Revolving Loans | 411,687,000 | |
Revolving Loans Converted to Term Loans | 48,225,000 | |
Total loans and leases | 6,368,942,000 | 5,935,130,000 |
Total | OAEM | ||
Credit Quality Information | ||
Year One | 1,861,000 | |
Year Two | 12,803,000 | |
Year Three | 296,000 | |
Year Four | 30,081,000 | |
Year Five | 2,854,000 | |
Prior | 25,875,000 | |
Revolving Loans | 2,187,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 75,957,000 | 58,274,000 |
Total | Substandard | ||
Credit Quality Information | ||
Year One | 608,000 | |
Year Two | 4,619,000 | |
Year Three | 2,729,000 | |
Year Four | 3,091,000 | |
Year Five | 2,503,000 | |
Prior | 11,592,000 | |
Revolving Loans | 6,462,000 | |
Revolving Loans Converted to Term Loans | 632,000 | |
Total loans and leases | 32,236,000 | 37,144,000 |
Total | Doubtful | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 2,000 | |
Prior | 14,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 1,000 | |
Total loans and leases | 17,000 | 16,000 |
Total | Definite Loss | ||
Credit Quality Information | ||
Total loans and leases | 0 | |
Commercial real estate | ||
Credit Quality Information | ||
Year One | 475,105,000 | |
Year Two | 625,552,000 | |
Year Three | 291,025,000 | |
Year Four | 377,144,000 | |
Year Five | 213,795,000 | |
Prior | 999,494,000 | |
Revolving Loans | 55,464,000 | |
Revolving Loans Converted to Term Loans | 9,167,000 | |
Total loans and leases | 3,046,746,000 | 2,842,791,000 |
Commercial real estate | Pass | ||
Credit Quality Information | ||
Year One | 475,105,000 | |
Year Two | 622,952,000 | |
Year Three | 290,913,000 | |
Year Four | 362,339,000 | |
Year Five | 210,954,000 | |
Prior | 971,274,000 | |
Revolving Loans | 55,464,000 | |
Revolving Loans Converted to Term Loans | 9,167,000 | |
Total loans and leases | 2,998,168,000 | 2,782,983,000 |
Commercial real estate | OAEM | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 2,600,000 | |
Year Three | 112,000 | |
Year Four | 14,805,000 | |
Year Five | 2,841,000 | |
Prior | 25,875,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 46,233,000 | 46,585,000 |
Commercial real estate | Substandard | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 2,345,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 2,345,000 | 13,223,000 |
Commercial real estate | Doubtful | ||
Credit Quality Information | ||
Total loans and leases | 0 | |
Multi-family mortgage | ||
Credit Quality Information | ||
Year One | 162,139,000 | |
Year Two | 226,502,000 | |
Year Three | 132,893,000 | |
Year Four | 114,109,000 | |
Year Five | 142,271,000 | |
Prior | 331,198,000 | |
Revolving Loans | 4,823,000 | |
Revolving Loans Converted to Term Loans | 36,662,000 | |
Total loans and leases | 1,150,597,000 | 1,099,818,000 |
Multi-family mortgage | Pass | ||
Credit Quality Information | ||
Year One | 162,139,000 | |
Year Two | 226,502,000 | |
Year Three | 132,893,000 | |
Year Four | 114,109,000 | |
Year Five | 142,271,000 | |
Prior | 324,415,000 | |
Revolving Loans | 4,823,000 | |
Revolving Loans Converted to Term Loans | 36,662,000 | |
Total loans and leases | 1,143,814,000 | 1,098,629,000 |
Multi-family mortgage | OAEM | ||
Credit Quality Information | ||
Total loans and leases | 1,189,000 | |
Multi-family mortgage | Substandard | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 6,783,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 6,783,000 | 0 |
Multi-family mortgage | Doubtful | ||
Credit Quality Information | ||
Total loans and leases | 0 | |
Construction | ||
Credit Quality Information | ||
Year One | 83,492,000 | |
Year Two | 82,636,000 | |
Year Three | 13,787,000 | |
Year Four | 16,421,000 | |
Year Five | 3,306,000 | |
Prior | 707,000 | |
Revolving Loans | 6,456,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 206,805,000 | 160,431,000 |
Construction | Pass | ||
Credit Quality Information | ||
Year One | 82,650,000 | |
Year Two | 73,995,000 | |
Year Three | 13,787,000 | |
Year Four | 16,421,000 | |
Year Five | 3,306,000 | |
Prior | 0 | |
Revolving Loans | 6,456,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 196,615,000 | 156,636,000 |
Construction | OAEM | ||
Credit Quality Information | ||
Year One | 842,000 | |
Year Two | 8,641,000 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 9,483,000 | 0 |
Construction | Substandard | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 707,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 707,000 | 3,795,000 |
Construction | Doubtful | ||
Credit Quality Information | ||
Total loans and leases | 0 | |
Commercial | ||
Credit Quality Information | ||
Year One | 178,212,000 | |
Year Two | 120,618,000 | |
Year Three | 49,928,000 | |
Year Four | 38,124,000 | |
Year Five | 29,350,000 | |
Prior | 52,897,000 | |
Revolving Loans | 282,115,000 | |
Revolving Loans Converted to Term Loans | 1,704,000 | |
Total loans and leases | 752,948,000 | 734,388,000 |
Commercial | Pass | ||
Credit Quality Information | ||
Year One | 178,212,000 | |
Year Two | 116,674,000 | |
Year Three | 48,713,000 | |
Year Four | 22,809,000 | |
Year Five | 29,350,000 | |
Prior | 52,866,000 | |
Revolving Loans | 273,467,000 | |
Revolving Loans Converted to Term Loans | 1,071,000 | |
Total loans and leases | 723,162,000 | 721,245,000 |
Commercial | OAEM | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 109,000 | |
Year Three | 0 | |
Year Four | 14,821,000 | |
Year Five | 0 | |
Prior | 0 | |
Revolving Loans | 2,187,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 17,117,000 | 8,324,000 |
Commercial | Substandard | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 3,835,000 | |
Year Three | 1,215,000 | |
Year Four | 494,000 | |
Year Five | 0 | |
Prior | 30,000 | |
Revolving Loans | 6,461,000 | |
Revolving Loans Converted to Term Loans | 632,000 | |
Total loans and leases | 12,667,000 | 4,817,000 |
Commercial | Doubtful | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 1,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 1,000 | |
Total loans and leases | 2,000 | 2,000 |
Equipment financing | ||
Credit Quality Information | ||
Year One | 444,950,000 | |
Year Two | 284,635,000 | |
Year Three | 186,705,000 | |
Year Four | 143,983,000 | |
Year Five | 79,113,000 | |
Prior | 62,662,000 | |
Revolving Loans | 13,236,000 | |
Revolving Loans Converted to Term Loans | 1,301,000 | |
Total loans and leases | 1,216,585,000 | 1,105,611,000 |
Equipment financing | Pass | ||
Credit Quality Information | ||
Year One | 443,323,000 | |
Year Two | 282,398,000 | |
Year Three | 185,007,000 | |
Year Four | 140,931,000 | |
Year Five | 76,595,000 | |
Prior | 60,980,000 | |
Revolving Loans | 13,236,000 | |
Revolving Loans Converted to Term Loans | 1,301,000 | |
Total loans and leases | 1,203,771,000 | 1,088,197,000 |
Equipment financing | OAEM | ||
Credit Quality Information | ||
Year One | 1,019,000 | |
Year Two | 1,453,000 | |
Year Three | 184,000 | |
Year Four | 455,000 | |
Year Five | 13,000 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 3,124,000 | 2,176,000 |
Equipment financing | Substandard | ||
Credit Quality Information | ||
Year One | 608,000 | |
Year Two | 784,000 | |
Year Three | 1,514,000 | |
Year Four | 2,597,000 | |
Year Five | 2,503,000 | |
Prior | 1,669,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 9,675,000 | 15,224,000 |
Equipment financing | Doubtful | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 2,000 | |
Prior | 13,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 15,000 | 14,000 |
Condominium association | ||
Credit Quality Information | ||
Year One | 5,821,000 | |
Year Two | 7,743,000 | |
Year Three | 8,810,000 | |
Year Four | 5,858,000 | |
Year Five | 1,603,000 | |
Prior | 12,285,000 | |
Revolving Loans | 4,823,000 | |
Revolving Loans Converted to Term Loans | 23,000 | |
Total loans and leases | 46,966,000 | 47,137,000 |
Condominium association | Pass | ||
Credit Quality Information | ||
Year One | 5,821,000 | |
Year Two | 7,743,000 | |
Year Three | 8,810,000 | |
Year Four | 5,858,000 | |
Year Five | 1,603,000 | |
Prior | 12,227,000 | |
Revolving Loans | 4,823,000 | |
Revolving Loans Converted to Term Loans | 23,000 | |
Total loans and leases | 46,908,000 | 47,053,000 |
Condominium association | OAEM | ||
Credit Quality Information | ||
Total loans and leases | 0 | |
Condominium association | Substandard | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 58,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 58,000 | 84,000 |
Condominium association | Doubtful | ||
Credit Quality Information | ||
Total loans and leases | 0 | |
Other consumer | ||
Credit Quality Information | ||
Year One | 411,000 | |
Year Two | 393,000 | |
Year Three | 15,000 | |
Year Four | 13,000 | |
Year Five | 1,503,000 | |
Prior | 750,000 | |
Revolving Loans | 53,419,000 | |
Revolving Loans Converted to Term Loans | 1,000 | |
Total loans and leases | 56,505,000 | 40,388,000 |
Other consumer | Pass | ||
Credit Quality Information | ||
Year One | 411,000 | |
Year Two | 393,000 | |
Year Three | 15,000 | |
Year Four | 13,000 | |
Year Five | 1,503,000 | |
Prior | 750,000 | |
Revolving Loans | 53,418,000 | |
Revolving Loans Converted to Term Loans | 1,000 | |
Total loans and leases | 56,504,000 | 40,387,000 |
Other consumer | OAEM | ||
Credit Quality Information | ||
Total loans and leases | 0 | |
Other consumer | Substandard | ||
Credit Quality Information | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 0 | |
Revolving Loans | 1,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans and leases | 1,000 | 1,000 |
Other consumer | Doubtful | ||
Credit Quality Information | ||
Total loans and leases | 0 | |
Residential mortgage | ||
Credit Quality Information | ||
Year One | 157,373,000 | 222,210,000 |
Year Two | 208,206,000 | 136,826,000 |
Year Three | 119,082,000 | 89,278,000 |
Year Four | 79,300,000 | 63,468,000 |
Year Five | 49,521,000 | 63,652,000 |
Prior | 225,842,000 | 220,958,000 |
Revolving Loans | 4,942,000 | 2,990,000 |
Revolving Loans Converted to Term Loans | 348,000 | 355,000 |
Total loans and leases | 844,614,000 | 799,737,000 |
Residential mortgage | Over 700 | ||
Credit Quality Information | ||
Year One | 108,125,000 | 182,759,000 |
Year Two | 176,341,000 | 111,380,000 |
Year Three | 95,484,000 | 69,901,000 |
Year Four | 61,763,000 | 51,454,000 |
Year Five | 38,949,000 | 40,467,000 |
Prior | 132,359,000 | 127,303,000 |
Revolving Loans | 4,942,000 | 2,990,000 |
Revolving Loans Converted to Term Loans | 348,000 | 355,000 |
Total loans and leases | 618,311,000 | 586,609,000 |
Residential mortgage | 661 - 700 | ||
Credit Quality Information | ||
Year One | 15,018,000 | 24,370,000 |
Year Two | 21,450,000 | 19,078,000 |
Year Three | 17,611,000 | 14,011,000 |
Year Four | 11,388,000 | 9,018,000 |
Year Five | 8,308,000 | 12,846,000 |
Prior | 29,999,000 | 25,294,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total loans and leases | 103,774,000 | 104,617,000 |
Residential mortgage | 600 and below | ||
Credit Quality Information | ||
Year One | 6,133,000 | 4,145,000 |
Year Two | 3,754,000 | 6,368,000 |
Year Three | 5,275,000 | 3,408,000 |
Year Four | 2,833,000 | 2,996,000 |
Year Five | 2,264,000 | 3,492,000 |
Prior | 14,688,000 | 13,801,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total loans and leases | 34,947,000 | 34,210,000 |
Residential mortgage | Data not available | ||
Credit Quality Information | ||
Year One | 28,097,000 | 10,936,000 |
Year Two | 6,661,000 | 0 |
Year Three | 712,000 | 1,958,000 |
Year Four | 3,316,000 | 0 |
Year Five | 0 | 6,847,000 |
Prior | 48,796,000 | 54,560,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total loans and leases | 87,582,000 | 74,301,000 |
Home equity | ||
Credit Quality Information | ||
Year One | 4,715,000 | 1,720,000 |
Year Two | 1,584,000 | 1,574,000 |
Year Three | 1,211,000 | 2,188,000 |
Year Four | 1,551,000 | 1,912,000 |
Year Five | 1,256,000 | 1,783,000 |
Prior | 9,580,000 | 11,564,000 |
Revolving Loans | 299,261,000 | 299,943,000 |
Revolving Loans Converted to Term Loans | 3,464,000 | 3,472,000 |
Total loans and leases | 322,622,000 | 324,156,000 |
Home equity | Over 700 | ||
Credit Quality Information | ||
Year One | 3,833,000 | 1,530,000 |
Year Two | 1,399,000 | 1,469,000 |
Year Three | 1,128,000 | 1,790,000 |
Year Four | 1,209,000 | 1,520,000 |
Year Five | 984,000 | 1,561,000 |
Prior | 6,862,000 | 8,254,000 |
Revolving Loans | 247,188,000 | 242,980,000 |
Revolving Loans Converted to Term Loans | 2,304,000 | 1,844,000 |
Total loans and leases | 264,907,000 | 260,948,000 |
Home equity | 661 - 700 | ||
Credit Quality Information | ||
Year One | 787,000 | 98,000 |
Year Two | 92,000 | 51,000 |
Year Three | 35,000 | 297,000 |
Year Four | 249,000 | 392,000 |
Year Five | 272,000 | 210,000 |
Prior | 1,329,000 | 1,658,000 |
Revolving Loans | 41,050,000 | 42,542,000 |
Revolving Loans Converted to Term Loans | 296,000 | 541,000 |
Total loans and leases | 44,110,000 | 45,789,000 |
Home equity | 600 and below | ||
Credit Quality Information | ||
Year One | 89,000 | 92,000 |
Year Two | 87,000 | 54,000 |
Year Three | 48,000 | 101,000 |
Year Four | 93,000 | 0 |
Year Five | 0 | 12,000 |
Prior | 360,000 | 436,000 |
Revolving Loans | 8,744,000 | 8,484,000 |
Revolving Loans Converted to Term Loans | 595,000 | 713,000 |
Total loans and leases | 10,016,000 | 9,892,000 |
Home equity | Data not available | ||
Credit Quality Information | ||
Year One | 6,000 | 0 |
Year Two | 6,000 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 1,029,000 | 1,216,000 |
Revolving Loans | 2,279,000 | 5,937,000 |
Revolving Loans Converted to Term Loans | 269,000 | 374,000 |
Total loans and leases | $ 3,589,000 | $ 7,527,000 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Past Due Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Age analysis of past due loans | ||
Total Loans and Leases | $ 7,644,388,000 | $ 7,154,457,000 |
Past Due Greater Than 90 Days and Accruing | 33,000 | 1,000 |
Non-accrual | 14,894,000 | 32,459,000 |
Non-accrual with no related Allowance | 2,459,000 | 15,394,000 |
Interest income on nonaccrual loans | 0 | 0 |
Commercial real estate | ||
Age analysis of past due loans | ||
Total Loans and Leases | 3,046,746,000 | 2,842,791,000 |
Multi-family mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,150,597,000 | 1,099,818,000 |
Construction | ||
Age analysis of past due loans | ||
Total Loans and Leases | 206,805,000 | 160,431,000 |
Commercial | ||
Age analysis of past due loans | ||
Total Loans and Leases | 752,948,000 | 734,388,000 |
Equipment financing | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,216,585,000 | 1,105,611,000 |
Condominium association | ||
Age analysis of past due loans | ||
Total Loans and Leases | 46,966,000 | 47,137,000 |
Residential mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 844,614,000 | 799,737,000 |
Home equity | ||
Age analysis of past due loans | ||
Total Loans and Leases | 322,622,000 | 324,156,000 |
Other consumer | ||
Age analysis of past due loans | ||
Total Loans and Leases | 56,505,000 | 40,388,000 |
Commercial real estate loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 4,404,148,000 | 4,103,040,000 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Non-accrual | 1,314,000 | 10,848,000 |
Non-accrual with no related Allowance | 969,000 | 10,244,000 |
Commercial real estate loans | Commercial real estate | ||
Age analysis of past due loans | ||
Total Loans and Leases | 3,046,746,000 | 2,842,791,000 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Non-accrual | 607,000 | 10,848,000 |
Non-accrual with no related Allowance | 262,000 | 10,244,000 |
Commercial real estate loans | Multi-family mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,150,597,000 | 1,099,818,000 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Non-accrual | 0 | 0 |
Non-accrual with no related Allowance | 0 | 0 |
Commercial real estate loans | Construction | ||
Age analysis of past due loans | ||
Total Loans and Leases | 206,805,000 | 160,431,000 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Non-accrual | 707,000 | 0 |
Non-accrual with no related Allowance | 707,000 | 0 |
Commercial loans and leases | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,016,499,000 | 1,887,136,000 |
Past Due Greater Than 90 Days and Accruing | 28,000 | 0 |
Non-accrual | 10,175,000 | 17,416,000 |
Non-accrual with no related Allowance | 399,000 | 2,985,000 |
Commercial loans and leases | Commercial | ||
Age analysis of past due loans | ||
Total Loans and Leases | 752,948,000 | 734,388,000 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Non-accrual | 464,000 | 2,318,000 |
Non-accrual with no related Allowance | 0 | 1,383,000 |
Commercial loans and leases | Equipment financing | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,216,585,000 | 1,105,611,000 |
Past Due Greater Than 90 Days and Accruing | 28,000 | 0 |
Non-accrual | 9,653,000 | 15,014,000 |
Non-accrual with no related Allowance | 399,000 | 1,602,000 |
Commercial loans and leases | Condominium association | ||
Age analysis of past due loans | ||
Total Loans and Leases | 46,966,000 | 47,137,000 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Non-accrual | 58,000 | 84,000 |
Non-accrual with no related Allowance | 0 | 0 |
Consumer loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,223,741,000 | 1,164,281,000 |
Past Due Greater Than 90 Days and Accruing | 5,000 | 1,000 |
Non-accrual | 3,405,000 | 4,195,000 |
Non-accrual with no related Allowance | 1,091,000 | 2,165,000 |
Consumer loans | Residential mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 844,614,000 | 799,737,000 |
Past Due Greater Than 90 Days and Accruing | 1,000 | 0 |
Non-accrual | 2,680,000 | 3,909,000 |
Non-accrual with no related Allowance | 1,091,000 | 2,165,000 |
Consumer loans | Home equity | ||
Age analysis of past due loans | ||
Total Loans and Leases | 322,622,000 | 324,156,000 |
Past Due Greater Than 90 Days and Accruing | 4,000 | 1,000 |
Non-accrual | 723,000 | 285,000 |
Non-accrual with no related Allowance | 0 | 0 |
Consumer loans | Other consumer | ||
Age analysis of past due loans | ||
Total Loans and Leases | 56,505,000 | 40,388,000 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Non-accrual | 2,000 | 1,000 |
Non-accrual with no related Allowance | 0 | 0 |
Past Due | ||
Age analysis of past due loans | ||
Total Loans and Leases | 23,035,000 | 38,159,000 |
Past Due | Commercial real estate loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 3,989,000 | 15,211,000 |
Past Due | Commercial real estate loans | Commercial real estate | ||
Age analysis of past due loans | ||
Total Loans and Leases | 3,102,000 | 14,355,000 |
Past Due | Commercial real estate loans | Multi-family mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 180,000 | 460,000 |
Past Due | Commercial real estate loans | Construction | ||
Age analysis of past due loans | ||
Total Loans and Leases | 707,000 | 396,000 |
Past Due | Commercial loans and leases | ||
Age analysis of past due loans | ||
Total Loans and Leases | 16,227,000 | 16,263,000 |
Past Due | Commercial loans and leases | Commercial | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,083,000 | 1,123,000 |
Past Due | Commercial loans and leases | Equipment financing | ||
Age analysis of past due loans | ||
Total Loans and Leases | 13,072,000 | 15,083,000 |
Past Due | Commercial loans and leases | Condominium association | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,072,000 | 57,000 |
Past Due | Consumer loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,819,000 | 6,685,000 |
Past Due | Consumer loans | Residential mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,213,000 | 5,938,000 |
Past Due | Consumer loans | Home equity | ||
Age analysis of past due loans | ||
Total Loans and Leases | 598,000 | 739,000 |
Past Due | Consumer loans | Other consumer | ||
Age analysis of past due loans | ||
Total Loans and Leases | 8,000 | 8,000 |
31-60 days past due | ||
Age analysis of past due loans | ||
Total Loans and Leases | 12,238,000 | 9,683,000 |
31-60 days past due | Commercial real estate loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 3,202,000 | 3,191,000 |
31-60 days past due | Commercial real estate loans | Commercial real estate | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,495,000 | 2,424,000 |
31-60 days past due | Commercial real estate loans | Multi-family mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 0 | 371,000 |
31-60 days past due | Commercial real estate loans | Construction | ||
Age analysis of past due loans | ||
Total Loans and Leases | 707,000 | 396,000 |
31-60 days past due | Commercial loans and leases | ||
Age analysis of past due loans | ||
Total Loans and Leases | 7,915,000 | 5,609,000 |
31-60 days past due | Commercial loans and leases | Commercial | ||
Age analysis of past due loans | ||
Total Loans and Leases | 740,000 | 287,000 |
31-60 days past due | Commercial loans and leases | Equipment financing | ||
Age analysis of past due loans | ||
Total Loans and Leases | 5,103,000 | 5,265,000 |
31-60 days past due | Commercial loans and leases | Condominium association | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,072,000 | 57,000 |
31-60 days past due | Consumer loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,121,000 | 883,000 |
31-60 days past due | Consumer loans | Residential mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 677,000 | 454,000 |
31-60 days past due | Consumer loans | Home equity | ||
Age analysis of past due loans | ||
Total Loans and Leases | 443,000 | 424,000 |
31-60 days past due | Consumer loans | Other consumer | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,000 | 5,000 |
61-90 days past due | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,218,000 | 6,081,000 |
61-90 days past due | Commercial real estate loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 379,000 | 1,577,000 |
61-90 days past due | Commercial real estate loans | Commercial real estate | ||
Age analysis of past due loans | ||
Total Loans and Leases | 199,000 | 1,488,000 |
61-90 days past due | Commercial real estate loans | Multi-family mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 180,000 | 89,000 |
61-90 days past due | Commercial real estate loans | Construction | ||
Age analysis of past due loans | ||
Total Loans and Leases | 0 | 0 |
61-90 days past due | Commercial loans and leases | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,764,000 | 1,132,000 |
61-90 days past due | Commercial loans and leases | Commercial | ||
Age analysis of past due loans | ||
Total Loans and Leases | 0 | 88,000 |
61-90 days past due | Commercial loans and leases | Equipment financing | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,764,000 | 1,044,000 |
61-90 days past due | Commercial loans and leases | Condominium association | ||
Age analysis of past due loans | ||
Total Loans and Leases | 0 | 0 |
61-90 days past due | Consumer loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 75,000 | 3,372,000 |
61-90 days past due | Consumer loans | Residential mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 70,000 | 3,169,000 |
61-90 days past due | Consumer loans | Home equity | ||
Age analysis of past due loans | ||
Total Loans and Leases | 0 | 201,000 |
61-90 days past due | Consumer loans | Other consumer | ||
Age analysis of past due loans | ||
Total Loans and Leases | 5,000 | 2,000 |
Greater than 90 days past due | ||
Age analysis of past due loans | ||
Total Loans and Leases | 8,579,000 | 22,395,000 |
Greater than 90 days past due | Commercial real estate loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 408,000 | 10,443,000 |
Greater than 90 days past due | Commercial real estate loans | Commercial real estate | ||
Age analysis of past due loans | ||
Total Loans and Leases | 408,000 | 10,443,000 |
Greater than 90 days past due | Commercial real estate loans | Multi-family mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 0 | 0 |
Greater than 90 days past due | Commercial real estate loans | Construction | ||
Age analysis of past due loans | ||
Total Loans and Leases | 0 | 0 |
Greater than 90 days past due | Commercial loans and leases | ||
Age analysis of past due loans | ||
Total Loans and Leases | 6,548,000 | 9,522,000 |
Greater than 90 days past due | Commercial loans and leases | Commercial | ||
Age analysis of past due loans | ||
Total Loans and Leases | 343,000 | 748,000 |
Greater than 90 days past due | Commercial loans and leases | Equipment financing | ||
Age analysis of past due loans | ||
Total Loans and Leases | 6,205,000 | 8,774,000 |
Greater than 90 days past due | Commercial loans and leases | Condominium association | ||
Age analysis of past due loans | ||
Total Loans and Leases | 0 | 0 |
Greater than 90 days past due | Consumer loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,623,000 | 2,430,000 |
Greater than 90 days past due | Consumer loans | Residential mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,466,000 | 2,315,000 |
Greater than 90 days past due | Consumer loans | Home equity | ||
Age analysis of past due loans | ||
Total Loans and Leases | 155,000 | 114,000 |
Greater than 90 days past due | Consumer loans | Other consumer | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,000 | 1,000 |
Current | ||
Age analysis of past due loans | ||
Total Loans and Leases | 7,621,353,000 | 7,116,298,000 |
Current | Commercial real estate loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 4,400,159,000 | 4,087,829,000 |
Current | Commercial real estate loans | Commercial real estate | ||
Age analysis of past due loans | ||
Total Loans and Leases | 3,043,644,000 | 2,828,436,000 |
Current | Commercial real estate loans | Multi-family mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,150,417,000 | 1,099,358,000 |
Current | Commercial real estate loans | Construction | ||
Age analysis of past due loans | ||
Total Loans and Leases | 206,098,000 | 160,035,000 |
Current | Commercial loans and leases | ||
Age analysis of past due loans | ||
Total Loans and Leases | 2,000,272,000 | 1,870,873,000 |
Current | Commercial loans and leases | Commercial | ||
Age analysis of past due loans | ||
Total Loans and Leases | 751,865,000 | 733,265,000 |
Current | Commercial loans and leases | Equipment financing | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,203,513,000 | 1,090,528,000 |
Current | Commercial loans and leases | Condominium association | ||
Age analysis of past due loans | ||
Total Loans and Leases | 44,894,000 | 47,080,000 |
Current | Consumer loans | ||
Age analysis of past due loans | ||
Total Loans and Leases | 1,220,922,000 | 1,157,596,000 |
Current | Consumer loans | Residential mortgage | ||
Age analysis of past due loans | ||
Total Loans and Leases | 842,401,000 | 793,799,000 |
Current | Consumer loans | Home equity | ||
Age analysis of past due loans | ||
Total Loans and Leases | 322,024,000 | 323,417,000 |
Current | Consumer loans | Other consumer | ||
Age analysis of past due loans | ||
Total Loans and Leases | $ 56,497,000 | $ 40,380,000 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Recorded Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Recorded investment in loans and leases by portfolio segment | |||
Individually evaluated for impairment, allowance | $ 3,112 | $ 3,274 | |
Collectively evaluated for impairment, allowance | 95,370 | 95,810 | |
Total allowance for loan and lease losses | 98,482 | 99,084 | $ 114,379 |
Individually evaluated for impairment, loans and leases | 29,248 | 32,703 | |
Collectively evaluated for impairment, loans and leases | 7,615,140 | 7,121,754 | |
Total loans and leases | 7,644,388 | 7,154,457 | |
Commercial real estate loans | |||
Recorded investment in loans and leases by portfolio segment | |||
Individually evaluated for impairment, allowance | 62 | 0 | |
Collectively evaluated for impairment, allowance | 68,092 | 69,213 | |
Total allowance for loan and lease losses | 68,154 | 69,213 | 80,132 |
Individually evaluated for impairment, loans and leases | 11,039 | 16,906 | |
Collectively evaluated for impairment, loans and leases | 4,393,109 | 4,086,134 | |
Total loans and leases | 4,404,148 | 4,103,040 | |
Commercial | |||
Recorded investment in loans and leases by portfolio segment | |||
Individually evaluated for impairment, allowance | 2,982 | 3,236 | |
Collectively evaluated for impairment, allowance | 23,622 | 23,819 | |
Total allowance for loan and lease losses | 26,604 | 27,055 | 29,498 |
Individually evaluated for impairment, loans and leases | 14,346 | 10,944 | |
Collectively evaluated for impairment, loans and leases | 2,002,153 | 1,876,192 | |
Total loans and leases | 2,016,499 | 1,887,136 | |
Consumer loans | |||
Recorded investment in loans and leases by portfolio segment | |||
Individually evaluated for impairment, allowance | 68 | 38 | |
Collectively evaluated for impairment, allowance | 3,656 | 2,778 | |
Total allowance for loan and lease losses | 3,724 | 2,816 | $ 4,749 |
Individually evaluated for impairment, loans and leases | 3,863 | 4,853 | |
Collectively evaluated for impairment, loans and leases | 1,219,878 | 1,159,428 | |
Total loans and leases | $ 1,223,741 | $ 1,164,281 |
Allowance for Credit Losses - T
Allowance for Credit Losses - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) loan | |
Troubled debt restructurings: | |||
On accrual | $ 16,385 | $ 12,580 | |
On nonaccrual | 3,527 | 6,709 | |
Total troubled debt restructurings | $ 19,912 | $ 19,289 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans/ Leases | loan | 39 | 51 | 28 |
Recorded investment, at modification | $ 7,536 | $ 5,879 | $ 4,871 |
Recorded investment, at end of period | 7,778 | 5,383 | 5,349 |
Specific Allowance for Loan and Lease Losses | 2,230 | 818 | 173 |
Nonaccrual Loans and Leases | $ 606 | $ 2,571 | $ 2,139 |
Defaulted, number of loans/leases | loan | 5 | 13 | 1 |
Defaulted, recorded investment | $ 301 | $ 1,491 | $ 215 |
Loans with one modification | 7,778 | 5,383 | 5,349 |
Extended maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans with one modification | 6,931 | 2,704 | 3,297 |
Adjusted principal | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans with one modification | 0 | 0 | 40 |
Adjusted interest rate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans with one modification | 0 | 0 | 113 |
Combination maturity, principal, interest rate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans with one modification | $ 847 | $ 2,679 | $ 1,899 |
Commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans/ Leases | loan | 1 | 0 | |
Recorded investment, at modification | $ 497 | $ 0 | |
Recorded investment, at end of period | 493 | 0 | |
Specific Allowance for Loan and Lease Losses | 0 | 0 | |
Nonaccrual Loans and Leases | $ 0 | $ 0 | |
Defaulted, number of loans/leases | loan | 0 | 1 | |
Defaulted, recorded investment | $ 0 | $ 215 | |
Commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans/ Leases | loan | 15 | 1 | 2 |
Recorded investment, at modification | $ 6,227 | $ 19 | $ 3,029 |
Recorded investment, at end of period | 6,227 | 17 | 2,970 |
Specific Allowance for Loan and Lease Losses | 2,230 | 0 | 0 |
Nonaccrual Loans and Leases | $ 0 | $ 0 | $ 0 |
Defaulted, number of loans/leases | loan | 0 | 0 | 0 |
Defaulted, recorded investment | $ 0 | $ 0 | $ 0 |
Equipment financing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans/ Leases | loan | 23 | 46 | 24 |
Recorded investment, at modification | $ 1,203 | $ 3,979 | $ 1,366 |
Recorded investment, at end of period | 1,445 | 3,500 | 1,914 |
Specific Allowance for Loan and Lease Losses | 0 | 818 | 173 |
Nonaccrual Loans and Leases | $ 606 | $ 2,364 | $ 1,874 |
Defaulted, number of loans/leases | loan | 5 | 13 | 0 |
Defaulted, recorded investment | $ 301 | $ 1,491 | $ 0 |
Residential mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans/ Leases | loan | 2 | ||
Recorded investment, at modification | $ 1,072 | ||
Recorded investment, at end of period | 1,061 | ||
Specific Allowance for Loan and Lease Losses | 0 | ||
Nonaccrual Loans and Leases | $ 207 | ||
Defaulted, number of loans/leases | loan | 0 | ||
Defaulted, recorded investment | $ 0 | ||
Home equity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans/ Leases | loan | 1 | 1 | 2 |
Recorded investment, at modification | $ 106 | $ 312 | $ 476 |
Recorded investment, at end of period | 106 | 312 | 465 |
Specific Allowance for Loan and Lease Losses | 0 | 0 | 0 |
Nonaccrual Loans and Leases | $ 0 | $ 0 | $ 265 |
Defaulted, number of loans/leases | loan | 0 | 0 | 0 |
Defaulted, recorded investment | $ 0 | $ 0 | $ 0 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Premises and Equipment | ||
Premises and Equipment, gross amount | $ 163,610 | $ 157,535 |
Accumulated depreciation and amortization | 92,219 | 87,176 |
Total premises and equipment | 71,391 | 70,359 |
Land | ||
Premises and Equipment | ||
Premises and Equipment, gross amount | 12,329 | 12,329 |
Fine art | ||
Premises and Equipment | ||
Premises and Equipment, gross amount | 620 | 553 |
Computer equipment | ||
Premises and Equipment | ||
Premises and Equipment, gross amount | $ 16,332 | 15,668 |
Estimated Useful Life | 3 years | |
Vehicles | ||
Premises and Equipment | ||
Premises and Equipment, gross amount | $ 255 | 183 |
Core processing system and software | ||
Premises and Equipment | ||
Premises and Equipment, gross amount | 25,864 | 22,485 |
Furniture, fixtures and equipment | ||
Premises and Equipment | ||
Premises and Equipment, gross amount | 15,882 | 15,213 |
Office building and improvements | ||
Premises and Equipment | ||
Premises and Equipment, gross amount | $ 92,328 | $ 91,104 |
Minimum | Vehicles | ||
Premises and Equipment | ||
Estimated Useful Life | 3 years | |
Minimum | Core processing system and software | ||
Premises and Equipment | ||
Estimated Useful Life | 3 years | |
Minimum | Furniture, fixtures and equipment | ||
Premises and Equipment | ||
Estimated Useful Life | 5 years | |
Minimum | Office building and improvements | ||
Premises and Equipment | ||
Estimated Useful Life | 10 years | |
Maximum | Vehicles | ||
Premises and Equipment | ||
Estimated Useful Life | 5 years | |
Maximum | Core processing system and software | ||
Premises and Equipment | ||
Estimated Useful Life | 7 years 6 months | |
Maximum | Furniture, fixtures and equipment | ||
Premises and Equipment | ||
Estimated Useful Life | 25 years | |
Maximum | Office building and improvements | ||
Premises and Equipment | ||
Estimated Useful Life | 40 years |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 6.1 | $ 5.9 | $ 5.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Rollforward of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 160,427 | $ 160,427 |
Additions | 0 | 0 |
Balance at end of year | $ 160,427 | $ 160,427 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other intangibe assets: | ||
Gross amount | $ 41,904 | $ 41,904 |
Accumulated amortization | 40,123 | 39,628 |
Carrying Amount | 1,781 | 2,276 |
Core deposits | ||
Other intangibe assets: | ||
Gross amount | 38,294 | 38,294 |
Accumulated amortization | 37,602 | 37,107 |
Carrying Amount | 692 | 1,187 |
Trade name | ||
Other intangibe assets: | ||
Gross amount | 1,600 | 1,600 |
Accumulated amortization | 511 | 511 |
Carrying Amount | 1,089 | 1,089 |
Trust relationship | ||
Other intangibe assets: | ||
Gross amount | 1,568 | 1,568 |
Accumulated amortization | 1,568 | 1,568 |
Carrying Amount | 0 | 0 |
Other intangible | ||
Other intangibe assets: | ||
Gross amount | 442 | 442 |
Accumulated amortization | 442 | 442 |
Carrying Amount | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2013 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment losses | $ 0 | $ 0 | $ 0 | |
Core deposits | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Weighted-average amortization period | 5 years 4 months 9 days | |||
Trade name | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | $ 1,100,000 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 262 |
2024 | 151 |
2025 | 103 |
2026 | 74 |
2027 | 87 |
Thereafter | 15 |
Total | $ 692 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) policy project | Dec. 31, 2021 USD ($) policy | Dec. 31, 2020 USD ($) policy | |
Business Acquisition [Line Items] | |||
Number of policies owned | policy | 9 | 9 | 9 |
Death benefit | $ 228 | ||
Affordable housing project | |||
Business Acquisition [Line Items] | |||
Number of investments | project | 19 | ||
Maximum percentage of outstanding equity interest that can be invested by the entity in any single project | 50% | ||
Other non-interest income | |||
Business Acquisition [Line Items] | |||
Tax exempt BOLI income | $ 1,000 | $ 1,200 | $ 1,000 |
BankRI | |||
Business Acquisition [Line Items] | |||
Number of policies owned | policy | 7 | 7 | |
Net cash surrender value | $ 43,700 | $ 43,700 | |
First Ipswich Bancorp | |||
Business Acquisition [Line Items] | |||
Number of policies owned | policy | 2 | 2 | |
Net cash surrender value | $ 700 | $ 700 |
Other Assets - Additional Infor
Other Assets - Additional Information on Investments in Affordable Housing Projects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in Affordable Housing Projects [Abstract] | |||
Investments in affordable housing projects included in other assets | $ 223,170 | $ 176,390 | |
Unfunded commitments related to affordable housing projects included in other liabilities | 20,600 | 14,800 | |
Investment amortization included in provision for income taxes | 3,268 | 3,192 | $ 3,097 |
Amount recognized as income tax benefit | 547 | 411 | $ 823 |
Affordable housing project | |||
Investments in Affordable Housing Projects [Abstract] | |||
Investments in affordable housing projects included in other assets | 21,985 | 24,446 | |
Unfunded commitments related to affordable housing projects included in other liabilities | 5,211 | 4,987 | |
Investment in affordable housing tax credits | 2,941 | 2,988 | |
Investment in affordable housing tax benefits | $ 547 | $ 411 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Demand checking accounts | $ 1,802,518 | $ 1,888,462 |
NOW accounts | 544,118 | 604,097 |
Savings accounts | 762,271 | 915,804 |
Money market accounts | 2,174,952 | 2,358,306 |
Total core deposit accounts | 5,283,859 | 5,766,669 |
Certificate of deposit accounts maturing: | ||
Within six months | 379,017 | 493,512 |
After six months but within 1 year | 236,049 | 432,601 |
After 1 year but within 2 years | 269,243 | 128,714 |
After 2 years but within 3 years | 22,585 | 32,250 |
After 3 years but within 4 years | 8,859 | 19,568 |
After 4 years but within 5 years | 12,177 | 10,852 |
5+ Years | 213 | 198 |
Total certificate of deposit accounts | 928,143 | 1,117,695 |
Brokered deposit accounts | 310,144 | 165,542 |
Total deposits | $ 6,522,146 | $ 7,049,906 |
Weighted Average Rate of Demand checking accounts | ||
Demand checking accounts | 0% | 0% |
NOW accounts | 0.18% | 0.08% |
Savings accounts | 0.70% | 0.09% |
Money market accounts | 1.63% | 0.26% |
Total core deposit accounts | 0.79% | 0.13% |
Weighted Average Rate of Certificate of deposit accounts maturing: | ||
Within six months | 0.95% | 0.53% |
After six months but within 1 year | 1.60% | 0.56% |
After 1 year but within 2 years | 2.81% | 1.35% |
After 2 years but within 3 years | 1.83% | 2.34% |
After 3 years but within 4 years | 0.70% | 1.49% |
After 4 years but within 5 years | 1.77% | 0.67% |
5+ Years | 3.02% | 0.35% |
Total certificate of deposit accounts | 1.68% | 0.71% |
Brokered deposit accounts | 3% | 0.04% |
Total deposits | 1.02% | 0.22% |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Threshold for disclosure of time deposit issued amounts | $ 250,000 | $ 250,000 |
Time Deposits, $100,000 or More | 272,200,000 | 359,300,000 |
Related party deposits | 72,800,000 | 109,600,000 |
Deposits pledged as collateral | $ 205,600,000 | $ 340,900,000 |
Deposits - Interest Expense (De
Deposits - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest-bearing deposits: | |||
NOW accounts | $ 853 | $ 493 | $ 484 |
Savings accounts | 2,228 | 950 | 1,503 |
Money market accounts | 15,392 | 6,214 | 9,519 |
Certificate of deposit accounts | 8,210 | 11,758 | 30,355 |
Brokered deposit accounts | 2,909 | 1,298 | 6,565 |
Total interest-bearing deposits | $ 29,592 | $ 20,713 | $ 48,426 |
Borrowed Funds - Components and
Borrowed Funds - Components and Interest Expenses of Borrowed Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Outstanding balance | $ 1,432,652 | $ 357,321 | |
Total interest expense on borrowed funds | 15,823 | 8,443 | $ 18,228 |
Advances from the FHLBB | |||
Debt Instrument [Line Items] | |||
Outstanding balance | 1,237,823 | 147,907 | |
Total interest expense on borrowed funds | 9,355 | 3,302 | 12,842 |
Subordinated debentures and notes | |||
Debt Instrument [Line Items] | |||
Outstanding balance | 84,044 | 83,897 | |
Total interest expense on borrowed funds | 5,133 | 4,967 | 5,038 |
Other borrowed funds | |||
Debt Instrument [Line Items] | |||
Outstanding balance | 110,785 | 125,517 | |
Total interest expense on borrowed funds | $ 1,335 | $ 174 | $ 348 |
Borrowed Funds - Narrative (Det
Borrowed Funds - Narrative (Details) - USD ($) | 12 Months Ended | |||
Sep. 15, 2014 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Securities available-for-sale and loans pledged as collateral | $ 2,100,000,000 | $ 2,400,000,000 | ||
Outstanding balance | 1,432,652,000 | 357,321,000 | ||
Total available borrowing capacity from Federal Home Loan Bank | 1,900,000,000 | |||
Qualifying collateral available for Federal Home Loan Bank borrowings | 2,800,000,000 | |||
Accretion adjustment | (1,631,000) | (3,162,000) | $ (2,809,000) | |
Repurchase agreements | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | 52,000,000 | 95,500,000 | ||
Decrease in agreement amount | 43,500,000 | |||
Committed line of credit | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | 0 | 0 | ||
Committed line of credit | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | 30,000,000 | |||
Uncommitted lines of credit | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | 863,000,000 | |||
Outstanding balance | 0 | 30,000,000 | ||
FRB | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | 0 | 0 | ||
Subordinated debentures and notes | Subordinated debenture maturing September 15, 2029 | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | $ 74,327,000 | 74,227,000 | ||
Principal amount | $ 75,000,000 | |||
Fixed interest rate | 6% | |||
Accretion adjustment | $ 300,000 | 300,000 | ||
Capitalized financing costs | $ 700,000 | $ 800,000 | ||
Subordinated debentures and notes | Subordinated debenture maturing September 15, 2029 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate spread (as a percent) | 3.315% | |||
Subordinated debentures and notes | Subordinated debenture maturing September 15, 2029 | Interest rate period 1 | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 6% | |||
Subordinated debentures and notes | Subordinated debenture maturing September 15, 2029 | Interest rate period 2 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate spread (as a percent) | 3.315% |
Borrowed Funds - FHLBB Advances
Borrowed Funds - FHLBB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amount | ||
Within 1 year | $ 1,003,300 | $ 114,798 |
Over 1 year to 2 years | 226,100 | 23,300 |
Over 2 years to 3 years | 1,371 | 1,100 |
Over 3 years to 4 years | 0 | 1,418 |
Over 4 years to 5 years | 364 | 0 |
Over 5 years | 6,688 | 7,291 |
Total | 1,237,823 | 147,907 |
Callable Amount | ||
Within 1 year | 0 | 0 |
Over 1 year to 2 years | 0 | 0 |
Over 2 years to 3 years | 0 | 0 |
Over 3 years to 4 years | 0 | 0 |
Over 4 years to 5 years | 0 | 0 |
Over 5 years | 0 | 0 |
Total | $ 0 | $ 0 |
Weighted Average Rate | ||
Within 1 year | 4.37% | 0.35% |
Over 1 year to 2 years | 4.83% | 0.51% |
Over 2 years to 3 years | 0.41% | 0% |
Over 3 years to 4 years | 0% | 0.55% |
Over 4 years to 5 years | 0.76% | 0% |
Over 5 years | 2.83% | 2.73% |
Weighted average interest rate of total advances from the FHLB (as a percent) | 4.44% | 0.49% |
Borrowed Funds - Other Borrowed
Borrowed Funds - Other Borrowed Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Outstanding at end of year | $ 1,432,652 | $ 357,321 |
Other borrowed funds | ||
Debt Instrument [Line Items] | ||
Outstanding at end of year | 110,785 | 125,517 |
Average outstanding for the year | 118,383 | 88,818 |
Maximum outstanding at any month-end | $ 150,486 | $ 152,084 |
Weighted average rate at end of year | 2.38% | 0.15% |
Weighted average rate paid for the year | 1.13% | 0.20% |
Borrowed Funds - Summary of Sub
Borrowed Funds - Summary of Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 1,432,652 | $ 357,321 |
Subordinated Debentures Maturing June 26, 2033, March 17, 2034 and September 15, 2029 | Subordinated debentures and notes | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 84,044 | 83,897 |
Subordinated debenture maturing June 26, 2033 | Subordinated debentures and notes | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 4,887 | 4,868 |
Subordinated debenture maturing March 17, 2034 | Subordinated debentures and notes | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 4,830 | 4,802 |
Subordinated debenture maturing September 15, 2029 | Subordinated debentures and notes | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 6% | |
Outstanding balance | $ 74,327 | $ 74,227 |
LIBOR | Subordinated debenture maturing June 26, 2033 | Subordinated debentures and notes | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread (as a percent) | 3.10% | |
LIBOR | Subordinated debenture maturing March 17, 2034 | Subordinated debentures and notes | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread (as a percent) | 2.79% | |
LIBOR | Subordinated debenture maturing September 15, 2029 | Subordinated debentures and notes | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread (as a percent) | 3.315% |
Commitments and Contingencies -
Commitments and Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loan commitments | ||
Unadvanced portion of loans and leases | $ 1,202,738 | $ 987,482 |
Unused lines of credit: | ||
Home equity | 700,201 | 611,212 |
Other consumer | 97,313 | 64,589 |
Other commercial | 526 | 414 |
Unused letters of credit: | ||
Financial standby letters of credit | 13,584 | 16,143 |
Performance standby letters of credit | 31,330 | 17,145 |
Commercial and similar letters of credit | 2,619 | 5,219 |
Interest rate derivatives | ||
Unused letters of credit: | ||
Notional Amount | 150,000 | 6,000 |
Receive fixed, pay variable | ||
Unused letters of credit: | ||
Notional Amount | 1,489,709 | 1,324,609 |
Pay fixed, receive variable | ||
Unused letters of credit: | ||
Notional Amount | 1,489,709 | 1,324,609 |
Risk participation-out agreements | ||
Unused letters of credit: | ||
Notional Amount | 393,624 | 288,374 |
Risk participation-in agreements | ||
Unused letters of credit: | ||
Notional Amount | 75,223 | 77,016 |
Foreign exchange contracts | Buys foreign currency, sells U.S. currency | ||
Unused letters of credit: | ||
Notional Amount | 2,383 | 2,004 |
Foreign exchange contracts | Sells foreign currency, buys U.S. currency | ||
Unused letters of credit: | ||
Notional Amount | 2,400 | 2,006 |
Commercial real estate | ||
Loan commitments | ||
Commitments to originate loans and leases | 414,217 | 110,798 |
Commercial | ||
Loan commitments | ||
Commitments to originate loans and leases | 291,188 | 162,931 |
Residential mortgage | ||
Loan commitments | ||
Commitments to originate loans and leases | $ 14,036 | $ 28,685 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Unfunded credit commitments liability included in other liabilities | $ 20.6 | $ 14.8 | |
Total rental expense, net | 6 | 5.9 | $ 6.1 |
Rental income | $ 0.2 | $ 0.1 | $ 0.2 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 25 years |
Commitments and Contingencies_3
Commitments and Contingencies - Lease Costs, Cash Flows and Balance Sheet Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 6,305 | $ 6,163 | $ 6,386 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | 6,481 | 6,246 | 6,518 |
Right-of-use assets obtained in exchange for new lease obligations: | |||
Operating leases | 2,082 | 790 | 72 |
Supplemental balance sheet information related to leases was as follows: | |||
Operating lease right-of-use assets | 19,484 | 20,508 | 24,143 |
Operating lease liabilities | $ 19,484 | $ 20,508 | $ 24,143 |
Weighted Average Remaining Lease Term | |||
Operating leases | 7 years 4 months 20 days | 6 years 4 months 9 days | 6 years 11 months 12 days |
Weighted Average Discount Rate | |||
Operating leases | 3.50% | 3.10% | 3.20% |
Commitments and Contingencies_4
Commitments and Contingencies - Maturities of Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases, After Adoption of 842 | |||
2023 | $ 5,890 | ||
2024 | 4,482 | ||
2025 | 3,207 | ||
2026 | 2,387 | ||
2027 | 1,609 | ||
Thereafter | 5,416 | ||
Total | 22,991 | ||
Less imputed interest | (3,507) | ||
Operating lease liabilities | $ 19,484 | $ 20,508 | $ 24,143 |
Earnings per Share ("EPS") (Det
Earnings per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income | $ 109,744 | $ 115,440 | $ 47,635 |
Denominator: | |||
Weighted average shares outstanding (in shares) | 77,079,278 | 77,974,851 | 78,951,892 |
Effect of dilutive securities (in shares) | 272,556 | 268,565 | 151,397 |
Adjusted weighted average shares outstanding (in shares) | 77,351,834 | 78,243,416 | 79,103,289 |
Basic EPS (in dollars per share) | $ 1.42 | $ 1.48 | $ 0.60 |
Diluted EPS (in dollars per share) | $ 1.42 | $ 1.48 | $ 0.60 |
Comprehensive Income_(Loss) - C
Comprehensive Income/(Loss) - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning of period | $ 995,342 | $ 941,778 | $ 945,606 |
Balance end of period | 992,125 | 995,342 | 941,778 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning of period | (110) | 16,490 | 2,283 |
Other comprehensive income (loss) | (61,924) | (16,575) | 16,846 |
Reclassification adjustment for (income) expense recognized in earnings | 87 | (25) | (2,639) |
Balance end of period | (61,947) | (110) | 16,490 |
Investment Securities Available-for-Sale | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning of period | (183) | 16,582 | 2,199 |
Other comprehensive income (loss) | (60,265) | (16,795) | 17,087 |
Reclassification adjustment for (income) expense recognized in earnings | 255 | 30 | (2,704) |
Balance end of period | (60,193) | (183) | 16,582 |
Net Change in Fair Value of Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning of period | 37 | 7 | 0 |
Other comprehensive income (loss) | (2,111) | 37 | 7 |
Reclassification adjustment for (income) expense recognized in earnings | (168) | (7) | 0 |
Balance end of period | (2,242) | 37 | 7 |
Postretirement Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning of period | 36 | (99) | 84 |
Other comprehensive income (loss) | 452 | 183 | (248) |
Reclassification adjustment for (income) expense recognized in earnings | 0 | (48) | 65 |
Balance end of period | $ 488 | $ 36 | $ (99) |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Hedged Forecasted Transaction Affects Earnings (Details) - Interest rate swaps on loans $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Notional Amount | $ 150,000 |
Average Maturity | 3 years 9 months 7 days |
Current Rate Paid | 4.11% |
Received Fixed Swap Rate | 3.26% |
Fair Value | $ (3,030) |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Weighted average interest rate | 0.11% | |
Derivative term of contract | 8 months | |
Estimated net credit risk exposure | $ 0 | $ 0 |
Collateral posted | $ 126,900,000 | $ 2,400,000 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Summary of Derivative Positions (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) derivative | Dec. 31, 2021 USD ($) derivative | |
Loss Recognized in Income on Derivatives | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other |
Gain (loss) recognized in income | $ (698) | $ (459) |
Receive fixed, pay variable | ||
Derivatives and Hedging Activities | ||
Total | $ 1,489,709 | $ 1,324,609 |
Receive fixed, pay variable | Derivatives not designed as hedging instruments | ||
Derivatives and Hedging Activities | ||
Number of Positions | derivative | 132,000 | 135,000 |
Notional Amount Maturing, Less than 1 year | $ 71,547 | $ 8,244 |
Notional Amount Maturing, Less than 2 years | 69,454 | 2,346 |
Notional Amount Maturing, Less than 3 years | 141,498 | 83,461 |
Notional Amount Maturing, Less than 4 years | 68,140 | 137,856 |
Notional Amount Maturing, Thereafter | 1,139,070 | 1,092,702 |
Total | 1,489,709 | 1,324,609 |
Fair Value | 103,640 | 63,798 |
Pay fixed, receive variable | ||
Derivatives and Hedging Activities | ||
Total | $ 1,489,709 | $ 1,324,609 |
Pay fixed, receive variable | Derivatives not designed as hedging instruments | ||
Derivatives and Hedging Activities | ||
Number of Positions | derivative | 132,000 | 135,000 |
Notional Amount Maturing, Less than 1 year | $ 71,547 | $ 8,244 |
Notional Amount Maturing, Less than 2 years | 69,454 | 2,346 |
Notional Amount Maturing, Less than 3 years | 141,498 | 83,461 |
Notional Amount Maturing, Less than 4 years | 68,140 | 137,856 |
Notional Amount Maturing, Thereafter | 1,139,070 | 1,092,702 |
Total | 1,489,709 | 1,324,609 |
Fair Value | 103,640 | 63,798 |
Risk participation-out agreements | ||
Derivatives and Hedging Activities | ||
Total | 393,624 | 288,374 |
Loss Recognized in Income on Derivatives | ||
Gain (loss) recognized in income | $ (714) | $ (453) |
Risk participation-out agreements | Derivatives not designed as hedging instruments | ||
Derivatives and Hedging Activities | ||
Number of Positions | derivative | 54,000 | 41,000 |
Notional Amount Maturing, Less than 1 year | $ 38,931 | $ 0 |
Notional Amount Maturing, Less than 2 years | 22,979 | 6,869 |
Notional Amount Maturing, Less than 3 years | 27,508 | 22,673 |
Notional Amount Maturing, Less than 4 years | 6,222 | 6,573 |
Notional Amount Maturing, Thereafter | 297,984 | 252,259 |
Total | 393,624 | 288,374 |
Fair Value | 347 | 1,236 |
Risk participation-in agreements | ||
Derivatives and Hedging Activities | ||
Total | $ 75,223 | $ 77,016 |
Risk participation-in agreements | Derivatives not designed as hedging instruments | ||
Derivatives and Hedging Activities | ||
Number of Positions | derivative | 8,000 | 8,000 |
Notional Amount Maturing, Less than 1 year | $ 18,421 | $ 0 |
Notional Amount Maturing, Less than 2 years | 0 | 18,718 |
Notional Amount Maturing, Less than 3 years | 0 | 0 |
Notional Amount Maturing, Less than 4 years | 23,766 | 0 |
Notional Amount Maturing, Thereafter | 33,036 | 58,298 |
Total | 75,223 | 77,016 |
Fair Value | 31 | 207 |
Foreign exchange contracts | ||
Loss Recognized in Income on Derivatives | ||
Gain (loss) recognized in income | 16 | (6) |
Foreign exchange contracts | Buys foreign currency, sells U.S. currency | ||
Derivatives and Hedging Activities | ||
Total | $ 2,383 | $ 2,004 |
Foreign exchange contracts | Buys foreign currency, sells U.S. currency | Derivatives not designed as hedging instruments | ||
Derivatives and Hedging Activities | ||
Number of Positions | derivative | 12,000 | 10,000 |
Notional Amount Maturing, Less than 1 year | $ 2,383 | $ 2,004 |
Notional Amount Maturing, Less than 2 years | 0 | 0 |
Notional Amount Maturing, Less than 3 years | 0 | 0 |
Notional Amount Maturing, Less than 4 years | 0 | 0 |
Notional Amount Maturing, Thereafter | 0 | 0 |
Total | 2,383 | 2,004 |
Fair Value | 130 | 9 |
Foreign exchange contracts | Sells foreign currency, buys U.S. currency | ||
Derivatives and Hedging Activities | ||
Total | $ 2,400 | $ 2,006 |
Foreign exchange contracts | Sells foreign currency, buys U.S. currency | Derivatives not designed as hedging instruments | ||
Derivatives and Hedging Activities | ||
Number of Positions | derivative | 12,000 | 11,000 |
Notional Amount Maturing, Less than 1 year | $ 2,400 | $ 2,006 |
Notional Amount Maturing, Less than 2 years | 0 | 0 |
Notional Amount Maturing, Less than 3 years | 0 | 0 |
Notional Amount Maturing, Less than 4 years | 0 | 0 |
Notional Amount Maturing, Thereafter | 0 | 0 |
Total | 2,400 | 2,006 |
Fair Value | $ 112 | $ 7 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Amounts Subject to Master Netting Agreement (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Asset derivatives | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Investments in affordable housing projects included in other assets | Investments in affordable housing projects included in other assets |
Assets, Gross Amounts Recognized | $ 109,474 | $ 74,750 |
Assets, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Assets, Net Amounts Presented in the Statement of Financial Position | 109,474 | 74,750 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 0 | 0 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 0 |
Assets, Net Amount | $ 109,474 | $ 74,750 |
Liability derivatives | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Liabilities, Gross Amounts Recognized | $ 112,276 | $ 73,677 |
Liabilities, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Liabilities, Net Amounts Presented in the Statement of Financial Position | 112,276 | 73,677 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 2,393 | 118,461 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 8,410 |
Liabilities, Net Amount | 109,883 | (53,194) |
Designated as hedging instrument | Interest rate derivatives | ||
Asset derivatives | ||
Assets, Gross Amounts Recognized | 34 | 43 |
Assets, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Assets, Net Amounts Presented in the Statement of Financial Position | 34 | 43 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 0 | 0 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 0 |
Assets, Net Amount | 34 | 43 |
Liability derivatives | ||
Liabilities, Gross Amounts Recognized | 3,170 | 1 |
Liabilities, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Liabilities, Net Amounts Presented in the Statement of Financial Position | 3,170 | 1 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 0 | 0 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 0 |
Liabilities, Net Amount | 3,170 | 1 |
Derivatives not designed as hedging instruments | Loan level derivatives | ||
Asset derivatives | ||
Assets, Gross Amounts Recognized | 108,963 | 73,462 |
Assets, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Assets, Net Amounts Presented in the Statement of Financial Position | 108,963 | 73,462 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 0 | 0 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 0 |
Assets, Net Amount | 108,963 | 73,462 |
Liability derivatives | ||
Liabilities, Gross Amounts Recognized | 108,963 | 73,462 |
Liabilities, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Liabilities, Net Amounts Presented in the Statement of Financial Position | 108,963 | 73,462 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 2,393 | 118,461 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 8,410 |
Liabilities, Net Amount | 106,570 | (53,409) |
Derivatives not designed as hedging instruments | Risk participation-out agreements | ||
Asset derivatives | ||
Assets, Gross Amounts Recognized | 347 | 1,236 |
Assets, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Assets, Net Amounts Presented in the Statement of Financial Position | 347 | 1,236 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 0 | 0 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 0 |
Assets, Net Amount | 347 | 1,236 |
Derivatives not designed as hedging instruments | Risk participation-in agreements | ||
Liability derivatives | ||
Liabilities, Gross Amounts Recognized | 31 | 207 |
Liabilities, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Liabilities, Net Amounts Presented in the Statement of Financial Position | 31 | 207 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 0 | 0 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 0 |
Liabilities, Net Amount | 31 | 207 |
Derivatives not designed as hedging instruments | Foreign exchange contracts | ||
Asset derivatives | ||
Assets, Gross Amounts Recognized | 130 | 9 |
Assets, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Assets, Net Amounts Presented in the Statement of Financial Position | 130 | 9 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 0 | 0 |
Assets, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 0 |
Assets, Net Amount | 130 | 9 |
Liability derivatives | ||
Liabilities, Gross Amounts Recognized | 112 | 7 |
Liabilities, Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Liabilities, Net Amounts Presented in the Statement of Financial Position | 112 | 7 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments Pledged | 0 | 0 |
Liabilities, Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Pledged | 0 | 0 |
Liabilities, Net Amount | $ 112 | $ 7 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Schedule of Gain (Loss) of Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivatives designated as hedges | $ (3,136) | |
Derivatives designated as hedges | $ 42 | |
(Loss) in OCI on derivatives (effective portion), net of tax | (2,242) | 37 |
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion) | $ 61 | $ 7 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current provision: | |||
Federal | $ 17,414 | $ 25,608 | $ 22,450 |
State | 8,434 | 8,119 | 7,077 |
Total current provision | 25,848 | 33,727 | 29,527 |
Deferred provision (benefit) | |||
Federal | 3,994 | 3,972 | (11,452) |
State | 363 | 1,452 | (3,633) |
Total deferred provision (benefit) | 4,357 | 5,424 | (15,085) |
Total provision for income taxes | $ 30,205 | $ 39,151 | $ 14,442 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of income tax expense | |||
Expected income tax expense at statutory federal tax rate | $ 29,390 | $ 32,464 | $ 13,036 |
State taxes, net of federal income tax benefit | 6,950 | 7,561 | 2,722 |
Bank-owned life insurance | (215) | (261) | (212) |
Tax-exempt interest income | (163) | (171) | (220) |
Merger and acquisition expense | 302 | 0 | 0 |
Energy tax credits | (6,082) | 0 | 0 |
Investments in affordable housing projects | (544) | (565) | (595) |
Other, net | 567 | 123 | (289) |
Total provision for income taxes | $ 30,205 | $ 39,151 | $ 14,442 |
Effective income tax rate | 21.60% | 25.30% | 23.30% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 21.60% | 25.30% | 23.30% |
Reserve for loan losses | $ 1,800,000 | ||
Percentage of the amount the used reserve for loan losses would be subject to taxation, if, the reserve is used for purposes other than to absorb the losses for which it was established | 150% | ||
Amount of liability that would result if 100% of the reserve were recaptured on which no provision has been made | $ 500,000 | ||
Reserve for loan losses recaptured (as a percent) | 100% | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for credit losses | $ 30,901 | $ 29,529 |
Right-of-use asset - operating leases | 5,048 | 5,312 |
Deferred compensation | 5,669 | 5,491 |
Identified intangible assets and goodwill | 5,462 | 5,953 |
Supplemental Executive Retirement Plans | 2,493 | 3,165 |
Postretirement benefits | 1,187 | 517 |
Nonaccrual interest | 558 | 817 |
Restricted stock and stock option plans | 770 | 480 |
Unrealized loss on investment securities available-for-sale | 17,019 | 52 |
Employee stock ownership plan | 0 | 27 |
Unamortized PPP fee income | 0 | 429 |
Other | 569 | 486 |
Total gross deferred tax assets | 69,676 | 52,258 |
Deferred tax liabilities: | ||
Operating leases - liability | 5,048 | 5,312 |
Identified intangible assets and goodwill | 1,910 | 1,952 |
Deferred loan origination costs, net | 3,507 | 3,238 |
Depreciation | 277 | 829 |
Prepaid expense | 290 | 159 |
Accrued Expense | 5,463 | 774 |
Acquisition fair value adjustments | 944 | 1,007 |
Total gross deferred tax liabilities | 17,439 | 13,271 |
Net deferred tax asset | $ 52,237 | $ 38,987 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
Jun. 24, 2022 | Sep. 30, 2021 | Mar. 09, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 10, 2021 | Jan. 27, 2021 | |
Equity [Abstract] | ||||||||
Authorized serial preferred stock (in shares) | 50,000,000 | |||||||
Serial preferred stock, par value (in dollars per share) | $ 0.01 | |||||||
Preferred stock issued (in shares) | 0 | |||||||
Stock repurchase program, additional authorized amount | $ 10 | |||||||
Stock repurchase program, authorized amount | $ 20 | $ 20 | $ 10 | |||||
Number of shares repurchased (in shares) | 956,341 | 690,253 | 1,715,730 | |||||
Stock repurchase program, weighted average price (in dollars per share) | $ 14.41 | $ 14.46 | $ 11.66 | |||||
Liquidation account, total | $ 11.5 | $ 9.9 | $ 11.3 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Narrative (Details) - Brookline Bank | Dec. 31, 2022 | Dec. 31, 2021 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total (as a percent) | 0.100 | 0.1000 |
Tier 1 (as a percent) | 0.0800 | 0.0800 |
Common equity Tier 1 capital ratio, Minimum Required to Be Considered Well-Capitalized, Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 leverage capital ratio (as a percent) | 0.050 | 0.0500 |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Summary of Regulatory Capital Requirements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Bank actual capital amount | ||
Common equity Tier 1 capital ratio | $ 893,978 | $ 834,988 |
Tier 1 leverage capital | 903,695 | 844,658 |
Risk-based capital: | ||
Tier 1 | 903,695 | 844,658 |
Total risk-based capital | $ 1,071,078 | $ 1,007,237 |
Bank actual capital ratio | ||
Common equity Tier 1 capital ratio, Actual, Ratio (as a percent) | 12.05% | 11.86% |
Tier 1 leverage capital ratio (as a percent) | 0.1026 | 0.1015 |
Risk-based capital: | ||
Tier 1 (as a percent) | 0.1218 | 0.1199 |
Total (as a percent) | 0.1444 | 0.1430 |
Minimum capital adequacy amount | ||
Common equity Tier 1 capital ratio, Minimum Required for Capital Adequacy Purposes, Amount | $ 333,851 | $ 316,817 |
Tier 1 leverage capital | 352,318 | 332,870 |
Risk-based capital: | ||
Tier 1 | 445,170 | 422,681 |
Total | $ 593,395 | $ 563,489 |
Minimum capital adequacy ratio | ||
Common equity Tier 1 capital ratio, Minimum Required for Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | 4.50% |
Tier 1 leverage capital ratio (as a percent) | 0.0400 | 0.0400 |
Risk-based capital: | ||
Tier 1 (as a percent) | 0.0600 | 0.0600 |
Total (as a percent) | 0.0800 | 0.0800 |
Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer | ||
Common equity Tier 1 capital ratio | $ 519,323 | $ 492,826 |
Tier 1 leverage capital ratio | 352,318 | 332,870 |
Risk-based capital: | ||
Tier 1 risk-based capital ratio | 630,657 | 598,798 |
Total risk-based capital ratio | $ 778,831 | $ 739,580 |
Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer | ||
Common equity Tier 1 capital ratio (as a percent) | 7% | 7% |
Tier 1 leverage capital ratio (as a percent) | 4% | 4% |
Risk-based capital: | ||
Tier 1 (as a percent) | 8.50% | 8.50% |
Total (as a percent) | 10.50% | 10.50% |
BankRI | ||
Bank actual capital amount | ||
Common equity Tier 1 capital ratio | $ 244,422 | $ 260,679 |
Tier 1 leverage capital | 244,422 | 260,679 |
Risk-based capital: | ||
Tier 1 | 244,422 | 260,679 |
Total risk-based capital | $ 274,091 | $ 289,454 |
Bank actual capital ratio | ||
Common equity Tier 1 capital ratio, Actual, Ratio (as a percent) | 10.32% | 11.36% |
Tier 1 leverage capital ratio (as a percent) | 0.0813 | 0.0858 |
Risk-based capital: | ||
Tier 1 (as a percent) | 0.1032 | 0.1136 |
Total (as a percent) | 0.1157 | 0.1261 |
Minimum capital adequacy amount | ||
Common equity Tier 1 capital ratio, Minimum Required for Capital Adequacy Purposes, Amount | $ 106,579 | $ 103,262 |
Tier 1 leverage capital | 120,257 | 121,529 |
Risk-based capital: | ||
Tier 1 | 142,106 | 137,683 |
Total | $ 189,518 | $ 183,635 |
Minimum capital adequacy ratio | ||
Common equity Tier 1 capital ratio, Minimum Required for Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | 4.50% |
Tier 1 leverage capital ratio (as a percent) | 0.0400 | 0.0400 |
Risk-based capital: | ||
Tier 1 (as a percent) | 0.0600 | 0.0600 |
Total (as a percent) | 0.0800 | 0.0800 |
Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer | ||
Common equity Tier 1 capital ratio | $ 165,790 | $ 160,630 |
Tier 1 leverage capital ratio | 120,257 | 121,529 |
Risk-based capital: | ||
Tier 1 risk-based capital ratio | 201,317 | 195,050 |
Total risk-based capital ratio | $ 248,743 | $ 241,020 |
Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer | ||
Common equity Tier 1 capital ratio (as a percent) | 7% | 7% |
Tier 1 leverage capital ratio (as a percent) | 4% | 4% |
Risk-based capital: | ||
Tier 1 (as a percent) | 8.50% | 8.50% |
Total (as a percent) | 10.50% | 10.50% |
Classified as well capitalized | ||
Common equity Tier 1 capital ratio, Minimum Required to Be Considered Well-Capitalized, Amount | $ 153,948 | $ 149,156 |
Tier 1 leverage capital | 150,321 | 151,911 |
Risk-based capital: | ||
Tier 1 | 189,474 | 183,577 |
Total | $ 236,898 | $ 229,543 |
Classified as well capitalized ratio | ||
Common equity Tier 1 capital ratio, Minimum Required to Be Considered Well-Capitalized, Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 leverage capital ratio (as a percent) | 0.0500 | 0.0500 |
Risk-based capital: | ||
Tier 1 (as a percent) | 0.0800 | 0.0800 |
Total (as a percent) | 0.1000 | 0.1000 |
Brookline Bank | ||
Bank actual capital amount | ||
Common equity Tier 1 capital ratio | $ 570,530 | $ 570,278 |
Tier 1 leverage capital | 570,530 | 570,278 |
Risk-based capital: | ||
Tier 1 | 570,530 | 570,278 |
Total risk-based capital | $ 634,226 | $ 630,194 |
Bank actual capital ratio | ||
Common equity Tier 1 capital ratio, Actual, Ratio (as a percent) | 11.24% | 11.94% |
Tier 1 leverage capital ratio (as a percent) | 0.0972 | 0.1051 |
Risk-based capital: | ||
Tier 1 (as a percent) | 0.1124 | 0.1194 |
Total (as a percent) | 0.1250 | 0.1320 |
Minimum capital adequacy amount | ||
Common equity Tier 1 capital ratio, Minimum Required for Capital Adequacy Purposes, Amount | $ 228,415 | $ 214,929 |
Tier 1 leverage capital | 234,786 | 217,042 |
Risk-based capital: | ||
Tier 1 | 304,553 | 286,572 |
Total | $ 405,905 | $ 381,936 |
Minimum capital adequacy ratio | ||
Common equity Tier 1 capital ratio, Minimum Required for Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | 4.50% |
Tier 1 leverage capital ratio (as a percent) | 0.0400 | 0.0400 |
Risk-based capital: | ||
Tier 1 (as a percent) | 0.0600 | 0.0600 |
Total (as a percent) | 0.0800 | 0.0800 |
Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer | ||
Common equity Tier 1 capital ratio | $ 355,312 | $ 334,334 |
Tier 1 leverage capital ratio | 234,786 | 217,042 |
Risk-based capital: | ||
Tier 1 risk-based capital ratio | 431,451 | 405,977 |
Total risk-based capital ratio | $ 532,750 | $ 501,291 |
Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer | ||
Common equity Tier 1 capital ratio (as a percent) | 7% | 7% |
Tier 1 leverage capital ratio (as a percent) | 4% | 4% |
Risk-based capital: | ||
Tier 1 (as a percent) | 8.50% | 8.50% |
Total (as a percent) | 10.50% | 10.50% |
Classified as well capitalized | ||
Common equity Tier 1 capital ratio, Minimum Required to Be Considered Well-Capitalized, Amount | $ 329,933 | $ 310,453 |
Tier 1 leverage capital | 293,483 | 271,303 |
Risk-based capital: | ||
Tier 1 | 406,071 | 382,096 |
Total | $ 507,381 | $ 477,420 |
Classified as well capitalized ratio | ||
Common equity Tier 1 capital ratio, Minimum Required to Be Considered Well-Capitalized, Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 leverage capital ratio (as a percent) | 0.050 | 0.0500 |
Risk-based capital: | ||
Tier 1 (as a percent) | 0.0800 | 0.0800 |
Total (as a percent) | 0.100 | 0.1000 |
Employee Benefit Plans - Rollfo
Employee Benefit Plans - Rollforward of Plan Assets and Benefit Obligation (Details) - Health Insurance Postretirement Benefit - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | $ 0 | $ 0 | $ 0 |
Employer contributions | 34 | 35 | 38 |
Benefits paid | (34) | (35) | (38) |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 2,026 | 2,095 | 1,757 |
Service cost | 64 | 67 | 55 |
Interest cost | 55 | 50 | 56 |
Estimated benefits paid | (34) | (35) | (38) |
Actuarial (gain) loss | (581) | (151) | 265 |
Benefit obligation at end of year | 1,530 | 2,026 | 2,095 |
Funded status at end of year | 1,530 | 2,026 | 2,095 |
Accumulated benefit obligation at end of year | $ 1,530 | $ 2,026 | $ 2,095 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan participant financial_institution yr shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of 401(k) plans administered | plan | 1 | ||
Minimum employee age required to participate in the plan (in years) | yr | 21 | ||
Company contribution as percentage of compensation of eligible employees | 5% | ||
Expense for the company plan contributions | $ 3,800,000 | $ 3,600,000 | $ 3,300,000 |
Expense with deferred compensation plan | 477,600 | 409,400 | 239,500 |
Accrued liabilities with deferred compensation plan | $ 1,300 | $ 109,500 | 36,100 |
Number of supplemental executive retirement plans | plan | 2 | ||
Number of participants in supplemental executive retirement plans | participant | 14 | ||
Unallocated common stock held by ESOP, shares (in shares) | shares | 0 | 24,660 | |
Unallocated shares, aggregate cost | $ 0 | $ 147,000 | |
ESOP shares committed to be released | $ 356,000 | 381,000 | 304,000 |
Number of share-based compensation plans | plan | 1 | ||
Number of shares authorized (in shares) | shares | 1,750,000 | ||
Share-based expense | $ 3,300,000 | 2,600,000 | 2,500,000 |
Tax benefits from vested awards | $ 0 | 100,000 | 0 |
Time-based shares | Vesting equally over three years | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of shares in tranche | 50% | ||
Award vesting period | 3 years | ||
Vesting percentage | 33.33% | ||
Performance-based shares | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of financial institutions comprising peer group | financial_institution | 14 | ||
Performance-based shares | Vesting after achievement of performance targets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of shares in tranche | 50% | ||
Award vesting period | 3 years | ||
Restricted stock | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Dividends paid on unvested shares recognized as compensation expense | $ 200,000 | 200,000 | $ 200,000 |
Stock Options | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Outstanding options (in shares) | shares | 0 | ||
Employee Stock Ownership Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ESOP loan to purchase shares of entity's common stock (in shares) | shares | 546,986 | ||
Percentage of interest payable per annum on loan obtained by the ESOP | 8.50% | ||
Outstanding balance of loan | $ 0 | $ 300,000 | |
Unallocated common stock held by ESOP, shares (in shares) | shares | 0 | 24,660 | |
Unallocated shares, aggregate cost | $ 0 | $ 100,000 | |
Unallocated shares, market value | 0 | $ 400,000 | |
ESOP shares committed to be released | $ 400,000 | ||
Number of shares committed to be released to eligible employees (in shares) | shares | 24,660 | 26,454 | 28,434 |
Health Insurance Postretirement Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued expenses and other liabilities | $ 1,500,000 | $ 2,000,000 | $ 2,100,000 |
Discount rate used to determine the actuarial present value of projected postretirement benefit obligations (as a percent) | 5.02% | 2.77% | 2.44% |
Assumed health care trend rates used in 2019 through 2023, high end of range (as a percent) | 7.50% | ||
Assumed health care trend rates used in 2019 through 2023, low end of range (as a percent) | 6% | ||
Ultimate health care trend rate after 2020 (as a percent) | 4.50% | ||
Net periodic benefit expense cost (credit) | $ 119,000 | $ 115,000 | $ 90,000 |
Health Insurance Postretirement Benefit | Below age 65 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual health care trend that will be used to measure the accumulated postretirement benefit obligation (as a percent) | 8% | ||
Actual health care trend used to measure the accumulated postretirement benefit obligation (as a percent) | (0.40%) | ||
Health Insurance Postretirement Benefit | Over age 65 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual health care trend that will be used to measure the accumulated postretirement benefit obligation (as a percent) | 1.60% | ||
Actual health care trend used to measure the accumulated postretirement benefit obligation (as a percent) | 4.70% | ||
Supplemental retirement plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued expenses and other liabilities | $ 10,700,000 | $ 13,300,000 | |
Net periodic benefit expense cost (credit) | $ (2,100,000) | $ 6,000 | $ 1,500,000 |
Discount rate used to determine the actuarial present value (as a percent) | 5% | 2.75% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Postretirement Benefit Costs and Other Amounts Recognized in OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in postretirement benefit obligation recognized in other comprehensive income: | |||
Total pre-tax changes in postretirement benefit obligation recognized in other comprehensive income | $ 611 | $ 183 | $ (248) |
Health Insurance Postretirement Benefit | |||
Net periodic benefit expense: | |||
Service cost | 64 | 67 | 55 |
Interest cost | 55 | 50 | 56 |
Prior service credit | 0 | (2) | (21) |
Actuarial gain | 0 | 0 | 0 |
Net periodic benefit expense | 119 | 115 | 90 |
Changes in postretirement benefit obligation recognized in other comprehensive income: | |||
Net actuarial (loss) gain | 611 | 185 | (227) |
Prior service credit | 0 | (2) | (21) |
Total pre-tax changes in postretirement benefit obligation recognized in other comprehensive income | $ 611 | $ 183 | $ (248) |
Employee Benefit Plans - Effect
Employee Benefit Plans - Effects of Changes in Assumed Healthcare Cost Trends (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Effect of 1% change in assumed health care cost trend rates | |
Effect of 1% increase on total service and interest cost components of net periodic postretirement benefit costs | $ 25 |
Effect of 1% decrease on total service and interest cost components of net periodic postretirement benefit costs | (20) |
Effect of 1% increase on the accumulated postretirement benefit obligation | 260 |
Effect of 1% decrease on the accumulated postretirement benefit obligation | $ (213) |
Employee Benefit Plans - Activi
Employee Benefit Plans - Activity in Recognition and Retention Plans (Details) - Restricted stock $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Restricted Stock Awards Outstanding | |
Outstanding at beginning of year (in shares) | shares | 500,098 |
Granted (in shares) | shares | 310,349 |
Vested (in shares) | shares | (210,551) |
Forfeited / Canceled (in shares) | shares | (3,384) |
Added by performance factor (in shares) | shares | 4,983 |
Outstanding at end of year (in shares) | shares | 601,495 |
Weighted Average Price per Share | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 12.70 |
Granted (in dollars per share) | $ / shares | 13.80 |
Vested (in dollars per share) | $ / shares | 13.51 |
Forfeited / Canceled (in dollars per share) | $ / shares | 13.05 |
Added by Performance Factor (in dollar per shares) | $ / shares | 14.25 |
Outstanding at end of year (in dollars per share) | $ / shares | $ 12.99 |
Unrecognized compensation cost | $ | $ 2,908 |
Weighted average remaining recognition period (months) | 21 months |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Estimated Fair Value | $ 656,766 | $ 720,866 |
Derivatives | 109,474 | 74,750 |
Liabilities: | ||
Derivatives | 112,276 | 73,677 |
GSE debentures | ||
Assets: | ||
Estimated Fair Value | 152,422 | 217,505 |
GSE CMOs | ||
Assets: | ||
Estimated Fair Value | 18,220 | 28,139 |
GSE MBSs | ||
Assets: | ||
Estimated Fair Value | 140,576 | 199,772 |
Corporate debt obligations | ||
Assets: | ||
Estimated Fair Value | 13,764 | 22,683 |
U.S. Treasury bonds | ||
Assets: | ||
Estimated Fair Value | 331,307 | 252,268 |
Foreign government obligations | ||
Assets: | ||
Estimated Fair Value | 477 | 499 |
Recurring basis | Investment securities available-for-sale | ||
Assets: | ||
Estimated Fair Value | 656,766 | 720,866 |
Recurring basis | GSE debentures | ||
Assets: | ||
Estimated Fair Value | 152,422 | 217,505 |
Recurring basis | GSE CMOs | ||
Assets: | ||
Estimated Fair Value | 18,220 | 28,139 |
Recurring basis | GSE MBSs | ||
Assets: | ||
Estimated Fair Value | 140,576 | 199,772 |
Recurring basis | Corporate debt obligations | ||
Assets: | ||
Estimated Fair Value | 13,764 | 22,683 |
Recurring basis | U.S. Treasury bonds | ||
Assets: | ||
Estimated Fair Value | 331,307 | 252,268 |
Recurring basis | Foreign government obligations | ||
Assets: | ||
Estimated Fair Value | 477 | 499 |
Recurring basis | Interest rate derivatives | ||
Assets: | ||
Derivatives | 34 | 43 |
Liabilities: | ||
Derivatives | 3,170 | 1 |
Recurring basis | Loan level derivatives | ||
Assets: | ||
Derivatives | 108,963 | 73,462 |
Liabilities: | ||
Derivatives | 108,963 | 73,462 |
Recurring basis | Risk participation-out agreements | ||
Assets: | ||
Derivatives | 347 | 1,236 |
Recurring basis | Risk participation-in agreements | ||
Liabilities: | ||
Derivatives | 31 | 207 |
Recurring basis | Foreign exchange contracts | ||
Assets: | ||
Derivatives | 130 | 9 |
Liabilities: | ||
Derivatives | 112 | 7 |
Recurring basis | Level 1 | Investment securities available-for-sale | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 1 | GSE debentures | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 1 | GSE CMOs | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 1 | GSE MBSs | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 1 | Corporate debt obligations | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 1 | U.S. Treasury bonds | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 1 | Foreign government obligations | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 1 | Interest rate derivatives | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 1 | Loan level derivatives | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 1 | Risk participation-out agreements | ||
Assets: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 1 | Risk participation-in agreements | ||
Liabilities: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 1 | Foreign exchange contracts | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 2 | Investment securities available-for-sale | ||
Assets: | ||
Estimated Fair Value | 656,766 | 720,866 |
Recurring basis | Level 2 | GSE debentures | ||
Assets: | ||
Estimated Fair Value | 152,422 | 217,505 |
Recurring basis | Level 2 | GSE CMOs | ||
Assets: | ||
Estimated Fair Value | 18,220 | 28,139 |
Recurring basis | Level 2 | GSE MBSs | ||
Assets: | ||
Estimated Fair Value | 140,576 | 199,772 |
Recurring basis | Level 2 | Corporate debt obligations | ||
Assets: | ||
Estimated Fair Value | 13,764 | 22,683 |
Recurring basis | Level 2 | U.S. Treasury bonds | ||
Assets: | ||
Estimated Fair Value | 331,307 | 252,268 |
Recurring basis | Level 2 | Foreign government obligations | ||
Assets: | ||
Estimated Fair Value | 477 | 499 |
Recurring basis | Level 2 | Interest rate derivatives | ||
Assets: | ||
Derivatives | 34 | 43 |
Liabilities: | ||
Derivatives | 3,170 | 1 |
Recurring basis | Level 2 | Loan level derivatives | ||
Assets: | ||
Derivatives | 108,963 | 73,462 |
Liabilities: | ||
Derivatives | 108,963 | 73,462 |
Recurring basis | Level 2 | Risk participation-out agreements | ||
Assets: | ||
Derivatives | 347 | 1,236 |
Recurring basis | Level 2 | Risk participation-in agreements | ||
Liabilities: | ||
Derivatives | 31 | 207 |
Recurring basis | Level 2 | Foreign exchange contracts | ||
Assets: | ||
Derivatives | 130 | 9 |
Liabilities: | ||
Derivatives | 112 | 7 |
Recurring basis | Level 3 | Investment securities available-for-sale | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 3 | GSE debentures | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 3 | GSE CMOs | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 3 | GSE MBSs | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 3 | Corporate debt obligations | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 3 | U.S. Treasury bonds | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 3 | Foreign government obligations | ||
Assets: | ||
Estimated Fair Value | 0 | 0 |
Recurring basis | Level 3 | Interest rate derivatives | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 3 | Loan level derivatives | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 3 | Risk participation-out agreements | ||
Assets: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 3 | Risk participation-in agreements | ||
Liabilities: | ||
Derivatives | 0 | 0 |
Recurring basis | Level 3 | Foreign exchange contracts | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Changes in generic pricing of securities period one, considered for analyzing changes in prices obtained from pricing service (in years) | 15 years |
Changes in generic pricing of securities period two, considered for analyzing changes in prices obtained from pricing service (in years) | 30 years |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis (Details) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | $ 1,187 | $ 1,520 |
OREO | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | |
Collateral-dependent impaired loans and leases | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 779 | 802 |
OREO | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | |
Repossessed assets | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 408 | 718 |
Level 1 | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 1 | OREO | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | |
Level 1 | Collateral-dependent impaired loans and leases | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 1 | OREO | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | |
Level 1 | Repossessed assets | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 2 | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 408 | 718 |
Level 2 | OREO | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | |
Level 2 | Collateral-dependent impaired loans and leases | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 2 | OREO | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | |
Level 2 | Repossessed assets | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 408 | 718 |
Level 3 | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 779 | 802 |
Level 3 | OREO | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | |
Level 3 | Collateral-dependent impaired loans and leases | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 779 | 802 |
Level 3 | OREO | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | 0 | |
Level 3 | Repossessed assets | ||
Fair value of assets and liabilities | ||
Total assets measured at fair value on a non-recurring basis | $ 0 | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Repossessed Assets (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Recurring basis | Appraisal of collateral | Collateral-dependent impaired loans and leases | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Fair value of assets | $ 779 | $ 802 |
Recurring basis | Appraisal of collateral | Other real estate owned | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Fair value of assets | $ 0 | $ 0 |
Minimum | Discount for Costs to Sell | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Fair value inputs, basis spread (as a percent) | 0% | |
Minimum | Appraisal Adjustments | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Fair value inputs, basis spread (as a percent) | 0% | |
Maximum | Discount for Costs to Sell | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Fair value inputs, basis spread (as a percent) | 10% | |
Maximum | Appraisal Adjustments | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Fair value inputs, basis spread (as a percent) | 15% |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Loans and leases, net | $ 7,545,906 | $ 7,055,373 |
Restricted equity securities | 71,307 | 28,981 |
Financial liabilities: | ||
Certificates of deposit | 928,143 | 1,117,695 |
Borrowed funds | 110,785 | 125,517 |
Level 1 | ||
Financial assets: | ||
Loans and leases, net | 0 | 0 |
Restricted equity securities | 0 | |
Financial liabilities: | ||
Certificates of deposit | 0 | 0 |
Borrowed funds | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Loans and leases, net | 0 | 0 |
Restricted equity securities | 0 | |
Financial liabilities: | ||
Certificates of deposit | 1,217,024 | 1,283,012 |
Borrowed funds | 1,431,716 | 350,471 |
Level 3 | ||
Financial assets: | ||
Loans and leases, net | 7,450,654 | 6,983,524 |
Restricted equity securities | 28,981 | |
Financial liabilities: | ||
Certificates of deposit | 0 | 0 |
Borrowed funds | 0 | 0 |
Carrying Value | ||
Financial assets: | ||
Loans and leases, net | 7,545,906 | 7,055,373 |
Restricted equity securities | 28,981 | |
Financial liabilities: | ||
Certificates of deposit | 1,238,287 | 1,283,237 |
Borrowed funds | 1,432,652 | 357,321 |
Estimated Fair Value | ||
Financial assets: | ||
Loans and leases, net | 7,450,654 | 6,983,524 |
Restricted equity securities | 28,981 | |
Financial liabilities: | ||
Certificates of deposit | 1,217,024 | 1,283,012 |
Borrowed funds | $ 1,431,716 | $ 350,471 |
Condensed Parent Company Fina_3
Condensed Parent Company Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and due from banks | $ 191,767 | $ 66,265 | ||
Short-term investments | 191,192 | 261,472 | ||
Total cash and cash equivalents | 382,959 | 327,737 | ||
Restricted equity securities | 71,307 | 28,981 | ||
Premises and equipment, net | 71,391 | 70,359 | ||
Deferred tax asset | 52,237 | 38,987 | ||
Goodwill | 160,427 | 160,427 | $ 160,427 | |
Other assets | 223,170 | 176,390 | ||
Total assets | 9,185,836 | 8,602,622 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Borrowed funds | 1,432,652 | 357,321 | ||
Accrued expenses and other liabilities | 193,220 | 158,455 | ||
Total liabilities | 8,193,711 | 7,607,280 | ||
Stockholders' Equity: | ||||
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively | 852 | 852 | ||
Additional paid-in capital | 736,074 | 736,826 | ||
Retained earnings | 412,019 | 342,639 | ||
Accumulated other comprehensive (loss) income | (61,947) | (110) | ||
Treasury stock, at cost; 7,731,445 shares and 7,037,464 shares, respectively | (94,873) | (84,718) | ||
Unallocated common stock held by ESOP; 0 shares and 24,660 shares, respectively | 0 | (147) | ||
Total stockholders' equity | 992,125 | 995,342 | 941,778 | $ 945,606 |
Total liabilities and stockholders' equity | 9,185,836 | 8,602,622 | ||
Parent Company | ||||
ASSETS | ||||
Cash and due from banks | 161,281 | 88,823 | ||
Short-term investments | 32 | 32 | ||
Total cash and cash equivalents | 161,313 | 88,855 | $ 40,297 | $ 35,769 |
ESOP loan to Brookline Bank | 0 | 252 | ||
Restricted equity securities | 152 | 252 | ||
Premises and equipment, net | 4,167 | 2,121 | ||
Deferred tax asset | 2,646 | 2,249 | ||
Investment in subsidiaries, at equity | 877,833 | 956,045 | ||
Goodwill | 35,267 | 35,267 | ||
Other assets | 15,799 | 10,804 | ||
Total assets | 1,097,177 | 1,095,845 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Borrowed funds | 84,044 | 83,897 | ||
Accrued expenses and other liabilities | 21,008 | 16,606 | ||
Total liabilities | 105,052 | 100,503 | ||
Stockholders' Equity: | ||||
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively | 852 | 852 | ||
Additional paid-in capital | 736,074 | 736,826 | ||
Retained earnings | 412,019 | 342,639 | ||
Accumulated other comprehensive (loss) income | (61,947) | (110) | ||
Treasury stock, at cost; 7,731,445 shares and 7,037,464 shares, respectively | (94,873) | (84,718) | ||
Unallocated common stock held by ESOP; 0 shares and 24,660 shares, respectively | 0 | (147) | ||
Total stockholders' equity | 992,125 | 995,342 | ||
Total liabilities and stockholders' equity | $ 1,097,177 | $ 1,095,845 |
Condensed Parent Company Fina_4
Condensed Parent Company Financial Statements - Condensed Balance Sheets - Additional Information (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 85,177,172 | 85,177,172 |
Treasury stock, shares (in shares) | 7,731,445 | 7,037,464 |
Unallocated common stock held by ESOP, shares (in shares) | 0 | 24,660 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 85,177,172 | 85,177,172 |
Treasury stock, shares (in shares) | 7,731,445 | 7,037,464 |
Unallocated common stock held by ESOP, shares (in shares) | 0 | 24,660 |
Condensed Parent Company Fina_5
Condensed Parent Company Financial Statements - Condensed Income Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income: | |||
Marketable and restricted equity securities | $ 1,898 | $ 1,172 | $ 2,848 |
Total interest and dividend income | 345,186 | 311,529 | 326,817 |
Interest expense: | |||
Net interest income | 299,771 | 282,373 | 260,163 |
Non-interest income: | |||
Gain (loss) on investment securities, net | 321 | (38) | 1,970 |
Other | 6,517 | 5,937 | 6,190 |
Total non-interest income | 28,347 | 26,989 | 24,644 |
Non-interest expense: | |||
Compensation and employee benefits | 113,487 | 106,786 | 100,985 |
Occupancy | 16,002 | 14,961 | 15,386 |
Equipment and data processing | 20,833 | 18,322 | 17,345 |
Professional services | 5,060 | 4,694 | 5,157 |
Advertising and marketing | 4,980 | 4,167 | 4,126 |
Merger and acquisition expense | 2,249 | 0 | 0 |
Other | 13,260 | 9,822 | 12,345 |
Total non-interest expense | 179,542 | 162,608 | 160,844 |
Credit for income taxes | 30,205 | 39,151 | 14,442 |
Net income | 109,744 | 115,440 | 47,635 |
Parent Company | |||
Interest and dividend income: | |||
Dividend income from subsidiaries | 130,500 | 88,000 | 42,000 |
Marketable and restricted equity securities | 0 | 0 | 52 |
ESOP loan to Brookline Bank | 13 | 34 | 56 |
Intercompany loan to Brookline Bank | 0 | 139 | 330 |
Total interest and dividend income | 130,513 | 88,173 | 42,438 |
Interest expense: | |||
Borrowed funds | 5,188 | 5,043 | 5,108 |
Net interest income | 125,325 | 83,130 | 37,330 |
Non-interest income: | |||
Gain (loss) on investment securities, net | 6,106 | 0 | (1,306) |
Other | 425 | 13 | 123 |
Total non-interest income | 6,531 | 13 | (1,183) |
Non-interest expense: | |||
Compensation and employee benefits | 1,531 | 1,540 | 403 |
Occupancy | 1,735 | 1,605 | 1,689 |
Equipment and data processing | (255) | (363) | (745) |
Directors' fees | 435 | 402 | 433 |
Franchise taxes | 250 | 253 | 250 |
Insurance | 663 | 678 | 570 |
Professional services | 829 | 295 | 841 |
Advertising and marketing | 82 | 62 | 35 |
Merger and acquisition expense | 2,249 | 0 | 0 |
Other | (1,360) | (1,288) | (1,571) |
Total non-interest expense | 6,159 | 3,184 | 1,905 |
Income before income taxes | 125,697 | 79,959 | 34,242 |
Credit for income taxes | (421) | (1,837) | (1,427) |
Income before equity in undistributed income of subsidiaries | 126,118 | 81,796 | 35,669 |
Equity in undistributed income of subsidiaries | (16,374) | 33,644 | 11,966 |
Net income | $ 109,744 | $ 115,440 | $ 47,635 |
Condensed Parent Company Fina_6
Condensed Parent Company Financial Statements - Condensed Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 109,744 | $ 115,440 | $ 47,635 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Depreciation of premises and equipment | 6,027 | 5,789 | 5,486 |
Amortization of debt issuance costs | 101 | 100 | 101 |
Equity securities held-for-trading | 0 | 520 | 1,781 |
Net cash provided from operating activities | 120,761 | 133,212 | 112,488 |
Cash flows from investing activities: | |||
Proceeds from sale of restricted equity securities | 29,923 | 28,473 | 33,927 |
Purchase of premises and equipment | (7,388) | (4,789) | (2,909) |
Net cash (used for) provided from investing activities | (557,693) | 131,114 | (695,529) |
Cash flows from financing activities: | |||
Payment of dividends on common stock | (40,077) | (37,463) | (36,396) |
Net cash provided from (used for) financing activities | 492,154 | (371,506) | 940,168 |
Net increase (decrease) in cash and cash equivalents | 55,222 | (107,180) | 357,127 |
Cash and cash equivalents at beginning of year | 327,737 | ||
Cash and cash equivalents at end of year | 382,959 | 327,737 | |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 109,744 | 115,440 | 47,635 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Equity in undistributed income of subsidiaries | 16,374 | (33,644) | (11,966) |
Depreciation of premises and equipment | 1,211 | 1,111 | 1,546 |
Amortization of debt issuance costs | 100 | 100 | 100 |
Equity securities held-for-trading | 0 | 0 | 2,569 |
Other operating activities, net | (11,989) | (5,416) | (18,655) |
Net cash provided from operating activities | 115,440 | 77,591 | 21,229 |
Cash flows from investing activities: | |||
Repayment of ESOP loan by Brookline Bank | 252 | 250 | 250 |
Pay down of intercompany loan to Brookline Bank | 0 | 10,000 | 20,000 |
Proceeds from sale of restricted equity securities | 100 | 0 | 0 |
Purchase of premises and equipment | (3,257) | (1,820) | (555) |
Net cash (used for) provided from investing activities | (2,905) | 8,430 | 19,695 |
Cash flows from financing activities: | |||
Payment of dividends on common stock | (40,077) | (37,463) | (36,396) |
Net cash provided from (used for) financing activities | (40,077) | (37,463) | (36,396) |
Net increase (decrease) in cash and cash equivalents | 72,458 | 48,558 | 4,528 |
Cash and cash equivalents at beginning of year | 88,855 | 40,297 | 35,769 |
Cash and cash equivalents at end of year | $ 161,313 | $ 88,855 | $ 40,297 |
Uncategorized Items - brkl-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |