Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | PEAPACK-GLADSTONE FINANCIAL CORPORATION | |
Entity Central Index Key | 0001050743 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 18,829,877 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Trading Symbol | PGC | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-16197 | |
Entity Tax Identification Number | 22-3537895 | |
Entity Address, Address Line One | 500 Hills Drive | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Bedminster | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07921-0700 | |
City Area Code | 908 | |
Local Phone Number | 234-0700 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | NJ | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and due from banks | $ 12,684 | $ 10,629 | |
Federal funds sold | 102 | ||
Interest-earning deposits | 190,778 | 642,591 | |
Total cash and cash equivalents | 203,462 | 653,322 | |
Securities available for sale | 823,820 | 622,689 | |
Equity security, at fair value | 14,894 | 15,117 | |
FHLB and FRB stock, at cost | 12,901 | 13,709 | |
Loans held for sale, at fair value | 3,974 | 13,588 | |
Loans held for sale, at lower of cost or fair value | 11,179 | 18,520 | |
Loans | 4,568,833 | 4,372,437 | |
Less: Allowance for loan and lease losses | 63,505 | 67,309 | |
Net loans | 4,505,328 | 4,305,128 | |
Premises and equipment | 23,261 | 21,609 | |
Other real estate owned | 50 | ||
Accrued interest receivable | 23,117 | 22,495 | |
Bank owned life insurance | 46,605 | 46,809 | |
Goodwill | 33,103 | 33,103 | |
Other intangible assets | 10,053 | 10,788 | |
Finance lease right-of-use assets | 3,956 | 4,330 | |
Operating lease right-of-use assets | 9,569 | 9,421 | |
Other assets | 66,466 | 99,764 | |
TOTAL ASSETS | 5,791,688 | 5,890,442 | |
Deposits: | |||
Noninterest-bearing demand deposits | 959,494 | 833,500 | |
Interest-bearing deposits: | |||
Checking | [1] | 1,978,497 | 1,849,254 |
Savings | 147,227 | 130,731 | |
Money market accounts | 1,213,992 | 1,298,885 | |
Certificates of deposit - retail | 446,143 | 530,222 | |
Certificates of deposit - listing service | 31,631 | 32,128 | |
Subtotal deposits | 4,776,984 | 4,674,720 | |
Interest-bearing demand - brokered | 85,000 | 110,000 | |
Certificates of deposit - brokered | 33,791 | 33,764 | |
Total deposits | 4,895,775 | 4,818,484 | |
Short-term borrowings | 15,000 | ||
Paycheck Protection Program Liquidity Facility | 83,586 | 177,086 | |
Finance lease liabilities | 6,299 | 6,753 | |
Operating lease liabilities | 9,902 | 9,737 | |
Subordinated debt, net | 132,557 | 181,794 | |
Deferred tax liabilities, net | 27,362 | 32,978 | |
Accrued expenses and other liabilities | 97,748 | 121,488 | |
TOTAL LIABILITIES | 5,253,229 | 5,363,320 | |
SHAREHOLDERS’ EQUITY | |||
Preferred stock (no par value; authorized 500,000 shares; liquidation preference of $1,000 per share) | |||
Common stock (no par value; stated value $0.83 per share; authorized 42,000,000 shares; issued shares, 20,590,810 at June 30, 2021 and 20,342,881 at December 31, 2020; outstanding shares, 18,829,877 at June 30, 2021 and 18,974,703 at December 31, 2020 | 17,164 | 16,958 | |
Surplus | 328,035 | 326,592 | |
Treasury stock at cost, 1,760,933 shares at June 30, 2021 and 1,368,178 shares at December 31, 2020 | (48,461) | (36,477) | |
Retained earnings | 247,136 | 221,441 | |
Accumulated other comprehensive loss, net of income tax | (5,415) | (1,392) | |
TOTAL SHAREHOLDERS’ EQUITY | 538,459 | 527,122 | |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | $ 5,791,688 | $ 5,890,442 | |
[1] | Interest-bearing checking includes |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 |
Common stock, stated value | $ 0.83 | $ 0.83 |
Common stock, shares authorized | 42,000,000 | 42,000,000 |
Common stock, shares issued | 20,590,810 | 20,342,881 |
Common stock, shares outstanding | 18,829,877 | 18,974,703 |
Treasury stock, shares | 1,760,933 | 1,368,178 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 36,497 | $ 39,321 | $ 71,881 | $ 81,626 |
Interest on investments: | ||||
Taxable | 3,020 | 2,108 | 5,649 | 4,567 |
Tax-exempt | 36 | 57 | 79 | 115 |
Interest on loans held for sale | 36 | 54 | 91 | 75 |
Interest on interest-earning deposits | 97 | 109 | 225 | 661 |
Total interest income | 39,686 | 41,649 | 77,925 | 87,044 |
INTEREST EXPENSE | ||||
Interest on savings and interest-bearing deposit accounts | 1,689 | 3,131 | 3,478 | 9,574 |
Interest on certificates of deposit | 1,027 | 3,147 | 2,497 | 6,841 |
Interest on borrowed funds | 182 | 1,127 | 391 | 2,139 |
Interest on finance lease liability | 76 | 87 | 155 | 177 |
Interest on subordinated debt | 2,147 | 1,222 | 4,292 | 2,445 |
Subtotal - interest expense | 5,121 | 8,714 | 10,813 | 21,176 |
Interest on interest-bearing demand - brokered | 456 | 700 | 949 | 1,623 |
Interest on certificates of deposits - brokered | 264 | 264 | 525 | 527 |
Total interest expense | 5,841 | 9,678 | 12,287 | 23,326 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN AND LEASE LOSSES | 33,845 | 31,971 | 65,638 | 63,718 |
Provision for loan and lease losses | 900 | 4,900 | 1,125 | 24,900 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 32,945 | 27,071 | 64,513 | 38,818 |
OTHER INCOME | ||||
Wealth management fee income | 13,034 | 9,996 | 25,165 | 19,951 |
Service charges and fees | 896 | 695 | 1,742 | 1,511 |
Bank owned life insurance | 466 | 318 | 1,077 | 646 |
Gain on loans held for sale at fair value (mortgage banking) | 409 | 550 | 1,434 | 842 |
Gain/(loss) on loans held for sale at lower of cost or fair value | 1,125 | 1,407 | (3) | |
Fee income related to loan level, back-to-back swaps | 202 | 1,620 | ||
Gain on sale of SBA loans | 932 | 258 | 2,381 | 1,312 |
Corporate advisory fee income | 121 | 65 | 1,219 | 140 |
Loss on swap termination | (842) | (842) | ||
Other income | 1,495 | 417 | 2,138 | 801 |
Securities gains/(losses), net | 42 | 125 | (223) | 323 |
Total other income | 17,678 | 12,626 | 35,498 | 27,143 |
OPERATING EXPENSES | ||||
Compensation and employee benefits | 19,910 | 19,186 | 41,900 | 38,412 |
Premises and equipment | 4,074 | 4,036 | 8,187 | 8,079 |
FDIC insurance expense | 529 | 455 | 1,114 | 705 |
Other operating expense | 6,171 | 5,337 | 11,077 | 10,053 |
Total operating expenses | 30,684 | 29,014 | 62,278 | 57,249 |
INCOME BEFORE INCOME TAX EXPENSE/(BENEFIT) | 19,939 | 10,683 | 37,733 | 8,712 |
Income tax expense/(benefit) | 5,521 | 2,441 | 10,137 | (903) |
NET INCOME | $ 14,418 | $ 8,242 | $ 27,596 | $ 9,615 |
EARNINGS PER SHARE | ||||
Basic | $ 0.76 | $ 0.44 | $ 1.46 | $ 0.51 |
Diluted | $ 0.74 | $ 0.43 | $ 1.42 | $ 0.51 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||
Basic | 18,963,237 | 18,872,070 | 18,956,807 | 18,865,206 |
Diluted | 19,439,439 | 19,059,822 | 19,473,150 | 18,991,056 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 14,418 | $ 8,242 | $ 27,596 | $ 9,615 |
Unrealized (losses)/gains on available for sale securities: | ||||
Unrealized holding (losses)/gains arising during the period | 9,105 | 2,031 | (8,513) | 7,830 |
Before tax | 9,105 | 2,031 | (8,513) | 7,830 |
Tax effect | (2,167) | (489) | 2,036 | (1,901) |
Net of tax | 6,938 | 1,542 | (6,477) | 5,929 |
Unrealized gains/(losses) on cash flow hedges: | ||||
Unrealized holding gains/(losses) arising during the period | 1,121 | 191 | 2,571 | (8,688) |
Reclassification adjustment for amounts included in net income | 842 | (9) | 842 | (80) |
Before tax | 1,963 | 182 | 3,413 | (8,768) |
Tax effect | (552) | (61) | (959) | 2,338 |
Net of tax | 1,411 | 121 | 2,454 | (6,430) |
Total other comprehensive income/(loss) | 8,349 | 1,663 | (4,023) | (501) |
Total comprehensive income | $ 22,767 | $ 9,905 | $ 23,573 | $ 9,114 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Surplus [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2019 | $ 503,652 | $ 16,733 | $ 319,375 | $ (29,990) | $ 199,029 | $ (1,495) |
Net income | 9,615 | 9,615 | ||||
Comprehensive income (loss) | (501) | (501) | ||||
Restricted stock units issued | 131 | (131) | ||||
Restricted stock units/awards repurchased on vesting to pay taxes | (643) | (33) | (610) | |||
Amortization of restricted stock awards/units | 3,264 | 3,264 | ||||
Cash dividends declared on common stock | (1,887) | (1,887) | ||||
Share repurchase | (6,487) | (6,487) | ||||
Common stock options exercised | 76 | 7 | 69 | |||
Exercise of warrants | 6 | (6) | ||||
Issuance of shares for Employee Stock Purchase Plan | 891 | 39 | 852 | |||
Issuance of common stock for acquisition | 17 | (17) | ||||
Balance at Jun. 30, 2020 | 507,980 | 16,900 | 322,796 | (36,477) | 206,757 | (1,996) |
Balance at Mar. 31, 2020 | 496,440 | 16,854 | 320,269 | (36,477) | 199,453 | (3,659) |
Net income | 8,242 | 8,242 | ||||
Comprehensive income (loss) | 1,663 | 1,663 | ||||
Restricted stock units issued | 6 | (6) | ||||
Restricted stock units/awards repurchased on vesting to pay taxes | (42) | (2) | (40) | |||
Amortization of restricted stock awards/units | 1,723 | 1,723 | ||||
Cash dividends declared on common stock | (938) | (938) | ||||
Common stock options exercised | 1 | 3 | (2) | |||
Issuance of shares for Employee Stock Purchase Plan | 891 | 39 | 852 | |||
Balance at Jun. 30, 2020 | 507,980 | 16,900 | 322,796 | (36,477) | 206,757 | (1,996) |
Balance at Dec. 31, 2020 | 527,122 | 16,958 | 326,592 | (36,477) | 221,441 | (1,392) |
Net income | 27,596 | 27,596 | ||||
Comprehensive income (loss) | (4,023) | (4,023) | ||||
Restricted stock units issued | 240 | (240) | ||||
Restricted stock units/awards repurchased on vesting to pay taxes | (2,231) | (60) | (2,171) | |||
Amortization of restricted stock awards/units | 3,422 | 3,422 | ||||
Cash dividends declared on common stock | (1,901) | (1,901) | ||||
Share repurchase | (11,984) | (11,984) | ||||
Common stock options exercised | 34 | 2 | 32 | |||
Exercise of warrants | 12 | (12) | ||||
Issuance of shares for Employee Stock Purchase Plan | 424 | 12 | 412 | |||
Balance at Jun. 30, 2021 | 538,459 | 17,164 | 328,035 | (48,461) | 247,136 | (5,415) |
Balance at Mar. 31, 2021 | 522,441 | 17,140 | 326,251 | (40,856) | 233,670 | (13,764) |
Net income | 14,418 | 14,418 | ||||
Comprehensive income (loss) | 8,349 | 8,349 | ||||
Restricted stock units issued | 17 | (17) | ||||
Restricted stock units/awards repurchased on vesting to pay taxes | (229) | (6) | (223) | |||
Amortization of restricted stock awards/units | 1,807 | 1,807 | ||||
Cash dividends declared on common stock | (952) | (952) | ||||
Share repurchase | (7,605) | (7,605) | ||||
Common stock options exercised | 24 | 1 | 23 | |||
Exercise of warrants | 7 | (7) | ||||
Issuance of shares for Employee Stock Purchase Plan | 206 | 5 | 201 | |||
Balance at Jun. 30, 2021 | $ 538,459 | $ 17,164 | $ 328,035 | $ (48,461) | $ 247,136 | $ (5,415) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Shares outstanding | 18,974,703 | |||
Common stock options exercised, shares | 2,820 | |||
Issuance of shares for Employee Stock Purchase Plan, shares | 6,347 | 46,935 | 14,772 | 46,935 |
Shares outstanding | 18,829,877 | 18,829,877 | ||
Common Stock [Member] | ||||
Shares outstanding | 19,034,870 | 18,852,523 | 18,974,703 | 18,926,810 |
Restricted stock units issued, shares | 21,200 | 7,606 | 288,348 | 157,690 |
Restricted stock units/awards repurchased on vesting to pay taxes, shares | 7,096 | 2,580 | 71,749 | 39,686 |
Cash dividends declared on common stock, per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Share repurchase, share | 234,722 | 392,755 | 220,222 | |
Common stock options exercised, shares | 2,000 | 2,800 | 2,820 | 8,400 |
Common stock options exercised, used to exercise, shares | 2,149 | 62 | 2,149 | |
Common stock options exercised, net of shares used to exercise, shares | 651 | 2,758 | 6,251 | |
Exercise of warrants, shares | 20,000 | 40,000 | 20,000 | |
Exercise of warrants, used to exercise, shares | 12,722 | 26,200 | 13,469 | |
Exercise of warrants, net of shares used to exercise, shares | 7,278 | 13,800 | 6,531 | |
Issuance of shares for Employee Stock Purchase Plan, shares | 6,347 | 46,935 | 14,772 | 46,935 |
Issuance of common stock for acquisition, shares | 20,826 | |||
Shares outstanding | 18,829,877 | 18,905,135 | 18,829,877 | 18,905,135 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
OPERATING ACTIVITIES: | |||
Net income | $ 27,596 | $ 9,615 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,566 | 1,543 | |
Amortization of premium and accretion of discount on securities, net | 3,141 | 1,667 | |
Amortization of restricted stock | 3,422 | 3,264 | |
Amortization of intangible assets | 736 | 645 | |
Amortization of subordinated debt costs | 763 | 112 | |
Provision for loan and lease losses | 1,125 | 24,900 | |
Deferred tax (benefit)/expense | (4,539) | 483 | |
Stock-based compensation and employee stock purchase plan expense | 56 | 190 | |
Fair value adjustment for equity security | 223 | (323) | |
Loans originated for sale | [1] | (89,775) | (67,539) |
Proceeds from sales of loans held for sale | [1] | 103,605 | 65,345 |
Gain on loans held for sale | [1] | (3,815) | (2,154) |
(Gain)/loss on loans held for sale at lower of cost or fair value | (1,407) | 3 | |
Gain on OREO sold | (51) | ||
Gain on life insurance death benefit | (455) | ||
Increase in cash surrender value of life insurance, net | (310) | (351) | |
Increase in accrued interest receivable | (622) | (5,462) | |
Decrease in other assets | 10,798 | 802 | |
Increase/(decrease) in accrued expenses and other liabilities | 1,883 | (11,641) | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 53,940 | 21,099 | |
INVESTING ACTIVITIES: | |||
Principal repayments, maturities and calls of securities available for sale | 189,926 | 85,946 | |
Redemptions of FHLB and FRB stock | 808 | 34,573 | |
Purchase of securities available for sale | (402,711) | (228,768) | |
Purchase of equity securities | (4,000) | ||
Purchase of FHLB and FRB stock | (29,103) | ||
Proceeds from sales of loans held for sale at lower of cost or fair value | 54,123 | 10,067 | |
Net increase in loans, net of participations sold | (247,101) | (496,481) | |
Proceeds from sales of other real estate | 101 | ||
Purchase of premises and equipment | (2,895) | (1,705) | |
Proceeds from life insurance death benefit | 816 | ||
NET CASH USED IN INVESTING ACTIVITIES | (406,933) | (629,471) | |
FINANCING ACTIVITIES: | |||
Net increase in deposits | 77,291 | 608,327 | |
Net decrease in short-term borrowings | (15,000) | (113,100) | |
Proceeds from Paycheck Protection Program Liquidity Facility | 535,837 | ||
Repayments of Paycheck Protection Program Liquidity Facility | (93,500) | ||
Dividends paid on common stock | (1,901) | (1,887) | |
Exercise of Stock Options, net of stock swaps | 34 | 76 | |
Restricted stock repurchased on vesting to pay taxes | (2,231) | (643) | |
Repayments of subordinated debt | (50,000) | ||
Issuance of shares for employee stock purchase plan | 424 | 891 | |
Shares repurchased | (11,984) | (6,487) | |
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES | (96,867) | 1,023,014 | |
Net (decrease)/increase in cash and cash equivalents | (449,860) | 414,642 | |
Cash and cash equivalents at beginning of period | 653,322 | 208,185 | |
Cash and cash equivalents at end of period | 203,462 | 622,827 | |
Cash paid during the period for: | |||
Interest | 12,542 | 23,380 | |
Income tax, net | 4,056 | 551 | |
Transfer of loans to loans held for sale | $ 45,776 | $ 25,423 | |
[1] | Includes mortgage loans originated with the intent to sell which are carried at fair value. In addition, this includes the guaranteed portion of Small Business Administration (“SBA”) loans which are carried at the lower of cost or fair value. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2020 for Peapack-Gladstone Financial Corporation (the “Corporation” or the “Company”). In the opinion of the management of the Corporation, the accompanying unaudited Consolidated Interim Financial Statements contain all adjustments (consisting solely of normal and recurring accruals) necessary to present fairly the financial position as of June 30, 2021, and the results of operations, comprehensive income/(loss), shareholders’ equity for 2020 and cash flow statements for the three and six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the full year or for any future period. Principles of Consolidation and Organization: The consolidated financial statements of the Company are prepared on the accrual basis and include the accounts of the Company and its wholly-owned subsidiary, Peapack-Gladstone Bank (the “Bank”). The consolidated financial statements also include the Bank’s wholly-owned subsidiaries: • PGB Trust & Investments of Delaware • Peapack Capital Corporation (“PCC”) • Murphy Capital Management (“Murphy Capital”) • Peapack-Gladstone Mortgage Group, Inc. owns 99 percent of Peapack Ventures, LLC and 79 percent of Peapack-Gladstone Realty, Inc., a New Jersey real estate investment company • PGB Trust & Investments of Delaware owns one percent of Peapack Ventures, LLC • Peapack Ventures, LLC owns the remaining 21 percent of Peapack-Gladstone Realty, Inc. • PGB Securities, Inc. (formed in the second quarter of 2020) While the following footnotes include the consolidated results of the Company, the Bank and their subsidiaries, these footnotes primarily reflect the Bank’s and its subsidiaries’ activities. All significant intercompany balances and transactions have been eliminated from the accompanying consolidated financial statements. Basis of Financial Statement Presentation : The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. In preparing the financial statements, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the statement of condition and revenues and expenses for the periods presented. Actual results could differ from those estimates. Segment Information : The Company’s business is conducted through two business segments: its banking segment, which involves the delivery of loan and deposit products to customers, and the Peapack Private Wealth Management Division (“Peapack Private”), which includes asset management services to individuals and institutions. Management uses certain methodologies to allocate income and expense to the business segments. The Banking segment includes commercial (includes commercial and industrial (“C&I”) and equipment financing), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support services. Peapack Private includes: investment management services for individuals and institutions; personal trust services, including services as executor, trustee, administrator and custodian; and other financial planning and advisory services. This segment also includes the activity from the Delaware subsidiary, PGB Trust & Investments of Delaware, and Murphy Capital. Wealth management fees are primarily earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management (“AUM”) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed (i.e. trade date). Cash and Cash Equivalents: For purposes of the statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits and federal funds sold. Generally, federal funds are sold for one-day are of original maturities of 90 days or less. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings with original maturities of 90 days or less. Interest-Earning Deposits in Other Financial Institutions : Interest-earning deposits in other financial institutions mature within one year and are carried at cost. Securities : All debt securities are classified as available for sale and are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. The Company also has an investment in a Community Reinvestment Act (“CRA”) investment fund, which is classified as an equity security. Interest income includes amortization of purchase premiums and discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated, and premiums on callable debt securities, which are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant. For securities in an unrealized loss position, Management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) other-than-temporary impairment related to credit loss, which is recognized in the income statement and 2) other-than-temporary impairment related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock, based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank is also a member of the Federal Reserve Bank of New York and required to own a certain amount of FRB stock. FRB stock is carried at cost and classified as a restricted security. Dividends are reported as income. Loans Held for Sale: Mortgage loans originated with the intent to sell in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released; therefore, no servicing rights are recorded. Gains and losses on sales of mortgage loans, shown as gain on sale of loans on the Statement of Income, are based on the difference between the selling price and the carrying value of the related loan sold. U.S. Small Business Administration (SBA) loans originated with the intent to sell in the secondary market are carried at the lower of cost or fair value. SBA loans are generally sold with the servicing rights retained. Gains and losses on the sale of SBA loans are based on the difference between the selling price and the carrying value of the related loan sold. Total SBA loans serviced totaled $83.1 million and $65.5 million as of June 30, 2021 and December 31, 2020, respectively. SBA loans held for sale totaled $5.6 million and $6.0 million at June 30, 2021 and December 31, 2020, respectively. Loans originated with the intent to hold and subsequently transferred to loans held for sale are carried at the lower of cost or fair value. These are loans that the Company no longer has the intent to hold for the foreseeable future. Loans: Loans that Management has the intent and ability to hold for the foreseeable future or until maturity are stated at the principal amount outstanding. Interest on loans is recognized based upon the principal amount outstanding. Loans are stated at face value, less purchased premium and discounts and net deferred fees. Loan origination fees and certain direct loan origination costs are deferred and recognized on a level-yield method, over the life of the loan as an adjustment to the loan’s yield. The definition of recorded investment in loans includes accrued interest receivable and deferred fees/cost, however, for the Company’s loan disclosures, accrued interest and deferred fees/cost were excluded as the impact was not material. Loans are considered past due when they are not paid within 30 days in accordance with contractual terms. The accrual of income on loans, including impaired loans, is discontinued if, in the opinion of Management, principal or interest is not likely to be paid in accordance with the terms of the loan agreement, or when principal or interest is past due 90 days unless the asset is both well secured and in the process of collection. All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Payments received on nonaccrual loans are recorded as principal payments. A nonaccrual loan is returned to accrual status only when interest and principal payments are brought current and future payments are reasonably assured, generally when the Bank receives contractual payments for a minimum of six consecutive months. Commercial loans are generally charged off , in whole or in part, after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Consumer closed-end loans are generally charged off after they become 120 days past due and open-end loans after 180 days . Subsequent payments are credited to income only if collection of principal is not in doubt. If principal and interest payments are brought contractually current and future collectability is reasonably assured, loans may be returned to accrual status. Nonaccrual mortgage loans are generally charged off to the extent that the value of the underlying collateral does not cover the outstanding principal balance. The majority of the Company ’s loans are secured by real estate in New Jersey, New York and Pennsylvania. Allowance for Loan and Lease Losses: The allowance for loan and lease losses is a valuation allowance for credit losses that is Management’s estimate of probable losses in the loan portfolio. The process to determine reserves utilizes analytic tools and Management judgment and is reviewed on a quarterly basis. When Management is reasonably certain that a loan balance is not fully collectable, an impairment analysis is completed whereby a specific reserve may be established or a full or partial charge off is recorded against the allowance. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the size and composition of the portfolio, information about specific borrower situations, estimated collateral values, level of and trends in delinquent, classified and nonperforming loans, economic conditions and other factors. Allocations of the allowance may be made for specific loans via a specific reserve, but the entire allowance is available for any loan that, in Management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans are individually evaluated for impairment when they are classified as substandard by Management. If a loan is considered impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or if repayment is expected solely from the underlying collateral, the loan principal balance is compared to the fair value of collateral less estimated disposition costs to determine the need, if any, for a charge off. The general component of the allowance covers non-impaired loans and is based primarily on the Company’s historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experience by the Company on a weighted average basis over the previous three years. This actual loss experience is adjusted by other qualitative factors based on the risks present for each portfolio segment. As a result of the effects of the COVID-19 pandemic, the Company increased certain qualitative factors related to elevated levels of unemployment, economic forecasts and approved loan deferral payment requests as businesses both locally and nationally were shut down and have only gradually and partially reopened. The Company also considered qualitative factors related to the following: levels of and trends in delinquencies and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staffing and experience; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. For loans that are graded as non-impaired, the Company allocates a higher general reserve percentage than pass-rated loans using a multiple that is calculated annually through a migration analysis. At both June 30, 2021 and December 31, 2020, the multiple was 2.25 times for non-impaired special mention loans and 3.25 times for non-impaired substandard loans. A troubled debt restructuring (“TDR”) is a modified loan with concessions made by the lender to a borrower who is experiencing financial difficulty. TDRs are impaired and are generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral, less estimated disposition costs. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan and lease losses. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security ("CARES“) Act, which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP. The CARES Act allows financial institutions to suspend application of certain current TDR accounting guidance under Accounting Standards Codification ("ASC") 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest or change the interest rate on the loan. The revised CARES Act allows for loan modifications through January 1, 2022. In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide further interpretation of when a borrower is experiencing financial difficulty, specifically indicating that if the modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not experiencing financial difficulty under ASC 310-40. The Company continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing an appropriate allowance for loan and lease losses on its loan portfolio. The Company approved total loan modifications under the CARES Act of $946.8 million, of which $36.7 million remain outstanding as of June 30, 2021. Another key program under the CARES Act is the Paycheck Protection Program (“PPP”) administered by the SBA which has provided much needed funding to qualifying businesses and organizations. Under this program, the Company has provided fundings of approximately $650 million. In the third quarter of 2020 and second quarter of 2021, the Company sold approximately $355.0 million and $56.5 million, respectively, of such loans, servicing rights released to a third party. The Company also referred approximately $124 million of PPP loans to a third party during the first six months of 2021. The Company has approximately $83.8 million of PPP loans remaining in its portfolio as of June 30, 2021 and believes that the majority of these loans will be forgiven by the SBA. In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on Federal call report codes, which are based on collateral or purpose. The following portfolio classes have been identified: Primary Residential Mortgages Home Equity Lines of Credit Junior Lien Loan on Residence Multifamily and Commercial Real Estate Loans generally considered to have a higher degree of credit risk than multifamily loans as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions. Commercial and Industrial Loans Leasing and Equipment Finance Asset risk in PCC’s portfolio is generally recognized through changes to loan income, or through changes to lease related income streams due to fluctuations in lease rates. Changes to lease income can occur when the existing lease contract expires, the asset comes off lease or the business seeks to enter a new lease agreement. Asset risk may also change through depreciation, resulting from changes in the residual value of the operating lease asset or through impairment of the asset carrying value, which can occur at any time during the life of the asset. Credit risk in PCC’s portfolio generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions. Credit losses can impact multiple parts of the income statement including loss of interest/lease/rental income and/or higher costs and expenses related to the repossession, refurbishment, re-marketing and or re-leasing of assets. Consumer and Other Leases: At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding right-of-use (“ROU”) asset and operating lease liability are recorded in separate line items on the statement of condition. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made. If the rate implicit in the lease is not readily determinable, the incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s statement of condition, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. The Company maintains certain property and equipment under direct financing and operating leases. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space and are classified as operating leases. The ROU asset is measured at the amount of the lease liability adjusted for lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the ROU asset. Operating lease expense consists of: a single lease cost allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the ROU asset. There are no terms or conditions related to residual value guarantees and no restrictions or covenants that would impact the Company’s ability to pay dividends or to incur additional financial obligations. Derivatives: At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For cash flow hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative continues to be reported at fair value in the statement of condition, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminated, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company also offers facility specific / loan level swaps to its customers and offsets its exposure from such contracts by entering into mirror image swaps with a financial institution / swap counterparty (loan level / back to back swap program). The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting (“standalone derivatives”). The notional amount of the swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual contracts. The fair value of the swaps is recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal amounts for these transactions. The Company is exposed to losses if a customer counterparty fails to make its payments under a contract in which the Company is in a net receiving position. At this time, the Company anticipates that our counterparties will be able to fully satisfy their obligations under the agreements. All of the contracts to which the Company is a party settle monthly. Further, the Company has netting agreements with the dealers with which it does business. Stock-Based Compensation: The Company’s 2006 Long-Term Stock Incentive Plan, 2012 Long-Term Stock Incentive Plan and 2021 Long-Term Stock Incentive Plan allow the granting of shares of the Company’s common stock as incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units and stock appreciation rights to directors, officers and employees of the Company and its subsidiaries. There are no shares remaining for issuance with respect to the stock option plan approved in 2002, however options granted under this plan are still included in the amounts below. Options granted under these plans are, in general, exercisable not earlier than one year after the date of grant, at a price equal to the fair value of common stock on the date of grant and expire not more than ten years after the date of grant. Stock options may vest during a period of up to five years after the date of grant. Some options granted to officers at or above the senior vice president level were immediately exercisable at the date of grant. The Company has a policy of using authorized but unissued shares to satisfy option exercises. Upon adoption of Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting , ” the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. For the Company’s stock option plans, changes in options outstanding during the six months ended June 30, 2021 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2021 50,660 $ 13.59 Exercised during 2021 (2,820 ) 12.42 Expired during 2021 — — Forfeited during 2021 (2,480 ) 13.50 Balance, June 30, 2021 45,360 $ 13.67 1.21 years $ 789 Vested and expected to vest 45,360 $ 13.67 1.21 years $ 789 Exercisable at June 30, 2021 45,360 $ 13.67 1.21 years $ 789 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of 2021 and the exercise price, multiplied by the number of in-the-money options). The Company’s closing stock price on June 30, 2021 was $31.07. There were no stock options granted during the three or six months ended June 30, 2021. The Company issued performance-based and service-based restricted stock units in 2021 and 2020. Service-based units vest ratably over a three- or five-year The performance-based awards are dependent upon the Company meeting certain performance criteria and, to the extent the performance criteria are met, will cliff vest at the end of the performance period which is generally three years. There were no performance-based restricted stock units granted in the second quarter of 2021. Changes in non-vested shares dependent on performance criteria for the six months ended June 30, 2021 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2021 221,600 $ 20.47 Granted during 2021 51,710 31.36 Vested during 2021 (36,032 ) 35.33 Forfeited during 2021 (11,843 ) 26.32 Balance, June 30, 2021 225,435 $ 20.29 Changes in service-based restricted stock awards/units for the six months ended June 30, 2021 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2021 777,166 $ 19.24 Granted during 2021 211,356 31.36 Vested during 2021 (252,316 ) 22.01 Forfeited during 2021 (23,314 ) 16.55 Balance, June 30, 2021 712,892 $ 21.94 As of June 30, 2021, there was $16.1 million of total unrecognized compensation cost related to service-based and performance-based units. That cost is expected to be recognized over a weighted average period of 1.59 years. Stock compensation expense recorded for the second quarters of 2021 and 2020 totaled $1.8 million and $1.7 million, respectively. Stock compensation expense recorded for the six months ended June 30, 2021 and 2020 totaled $3.5 million and $3.3 million, respectively. Employee Stock Purchase Plan (“ESPP”): In July 2019, the Board appointed ESPP “committee” revised the ESPP. The ESPP provides for the granting of rights to purchase up to 150,000 shares of Peapack-Gladstone Financial Corporation common stock. In May 2020, shareholders approved an increase of 200,000 shares of Peapack-Gladstone Financial Corporation common stock to be issued under the ESPP. Subject to certain eligibility requirements and restrictions, the ESPP provided for a single Offering Period of twelve months in duration, which comm |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE FOR SALE | 6 Months Ended |
Jun. 30, 2021 | |
Investment Securities Available For Sale [Abstract] | |
INVESTMENT SECURITIES AVAILABLE FOR SALE | 2. INVESTMENT SECURITIES AVAILABLE FOR SALE A summary of amortized cost and approximate fair value of investment securities available for sale included in the Consolidated Statements of Condition as of June 30, 2021 and December 31, 2020 follows: June 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S government-sponsored agencies $ 214,141 $ 15 $ (3,216 ) $ 210,940 Mortgage-backed securities–residential 553,129 6,613 (4,469 ) 555,273 SBA pool securities 45,565 112 (409 ) 45,268 State and political subdivisions 6,705 70 — 6,775 Corporate bond 5,500 64 — 5,564 Total $ 825,040 $ 6,874 $ (8,094 ) $ 823,820 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. treasuries $ 2,613 $ — $ — $ 2,613 U.S. government-sponsored agencies 84,424 2 (655 ) 83,771 Mortgage-backed securities–residential 467,915 8,604 (461 ) 476,058 SBA pool securities 49,457 31 (359 ) 49,129 State and political subdivisions 7,987 102 — 8,089 Corporate bond 3,000 29 — 3,029 Total $ 615,396 $ 8,768 $ (1,475 ) $ 622,689 The following tables present the Company’s available for sale securities in a continuous unrealized loss position and the approximate fair value of these investments as of June 30, 2021 and December 31, 2020. June 30, 2021 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S government-sponsored agencies $ 171,484 $ (3,216 ) $ — $ — $ 171,484 $ (3,216 ) Mortgage-backed securities-residential 276,658 (4,292 ) 15,325 (177 ) 291,983 (4,469 ) SBA pool securities 36,460 (409 ) — — 36,460 (409 ) Total $ 484,602 $ (7,917 ) $ 15,325 $ (177 ) $ 499,927 $ (8,094 ) December 31, 2020 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government-sponsored agencies $ 73,769 $ (655 ) $ — $ — $ 73,769 $ (655 ) Mortgage-backed securities-residential 103,340 (430 ) 13,914 (31 ) 117,254 (461 ) SBA pool securities 39,720 (343 ) 2,095 (16 ) 41,815 (359 ) Total $ 216,829 $ (1,428 ) $ 16,009 $ (47 ) $ 232,838 $ (1,475 ) Management believes that the unrealized losses on investment securities available for sale are temporary and are due to interest rate fluctuations and/or volatile market conditions rather than the credit-worthiness of the issuers. As of June 30, 2021, the Company does not intend to sell these securities nor is it likely that it will be required to sell the securities before their anticipated recovery; therefore, none of the securities in an unrealized loss position were determined to be other-than-temporarily impaired. T he Company has an investment in a CRA investment fund with a fair value of $ 14.9 million at June 30 , 202 1 . The investment is classified as an equity security in our Consolidated Statements of Condition. This security had a gain of $ 42,000 for the three months ended June 30, 2021 and a loss of $ 223,000 for the six months ended June 30 , 20 2 1 . This amount is included in securities gains/( losses ) , net on the Consolidated Statements of Income . |
LOANS AND LEASES
LOANS AND LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
LOANS AND LEASES | 3. LOANS AND LEASES Loans outstanding, excluding those held for sale, by general ledger classification, as of June 30, 2021 and December 31, 2020, consisted of the following: % of % of June 30, Totals December 31, Total (Dollars in thousands) 2021 Loans 2020 Loans Residential mortgage $ 500,207 10.95 % $ 502,829 11.50 % Multifamily mortgage 1,420,043 31.08 1,126,946 25.77 Commercial mortgage 702,777 15.38 691,294 15.81 Commercial loans (including equipment financing) (A) 1,846,728 40.42 1,950,981 44.62 Commercial construction 22,923 0.50 12,600 0.29 Home equity lines of credit 44,060 0.97 50,545 1.15 Consumer loans, including fixed rate home equity loans 31,889 0.70 37,016 0.85 Other loans 206 0.00 226 0.01 Total loans $ 4,568,833 100.00 % $ 4,372,437 100.00 % (A) Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal Call Report codes. The following portfolio classes have been identified as of June 30, 2021 and December 31, 2020: % of % of June 30, Totals December 31, Total (Dollars in thousands) 2021 Loans 2020 Loans Primary residential mortgage $ 508,413 11.14 % $ 512,841 11.74 % Home equity lines of credit 44,060 0.96 50,545 1.16 Junior lien loan on residence 3,580 0.08 4,527 0.10 Multifamily property 1,420,043 31.11 1,126,946 25.79 Owner-occupied commercial real estate 243,626 5.34 253,447 5.80 Investment commercial real estate 987,889 21.64 995,613 22.79 Commercial and industrial (A) 999,316 21.89 1,059,399 24.24 Lease financing 292,463 6.41 305,931 7.00 Farmland/agricultural production 3,324 0.07 3,068 0.07 Commercial construction loans 23,081 0.51 12,773 0.29 Consumer and other loans 38,768 0.85 44,483 1.02 Total loans 4,564,563 100.00 % 4,369,573 100.00 % Net deferred costs 4,270 2,864 Total loans including net deferred costs $ 4,568,833 $ 4,372,437 (A) Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan and lease losses (ALLL) as of June 30, 2021 and December 31, 2020: June 30, 2021 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 2,711 $ 57 $ 505,702 $ 2,110 $ 508,413 $ 2,167 Home equity lines of credit — — 44,060 123 44,060 123 Junior lien loan on residence — — 3,580 8 3,580 8 Multifamily property — — 1,420,043 10,615 1,420,043 10,615 Owner-occupied commercial real estate 529 — 243,097 2,447 243,626 2,447 Investment commercial real estate — — 987,889 27,886 987,889 27,886 Commercial and industrial (A) 3,258 — 996,058 16,565 999,316 16,565 Lease financing — — 292,463 3,275 292,463 3,275 Farmland/agricultural production — — 3,324 43 3,324 43 Commercial construction loans — — 23,081 159 23,081 159 Consumer and other loans — — 38,768 217 38,768 217 Total ALLL $ 6,498 $ 57 $ 4,558,065 $ 63,448 $ 4,564,563 $ 63,505 (A) The balance includes PPP loans of $84 million which had no related reserve as these loans are guaranteed by the SBA December 31, 2020 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 1,490 $ 3 $ 511,351 $ 2,902 $ 512,841 $ 2,905 Home equity lines of credit — — 50,545 218 50,545 218 Junior lien loan on residence — — 4,527 15 4,527 15 Multifamily property — — 1,126,946 9,945 1,126,946 9,945 Owner-occupied commercial real estate 807 — 252,640 3,050 253,447 3,050 Investment commercial real estate 4,593 — 991,020 27,713 995,613 27,713 Commercial and industrial (A) 9,314 2,700 1,050,085 16,347 1,059,399 19,047 Lease financing — — 305,931 3,936 305,931 3,936 Farmland/agricultural production — — 3,068 43 3,068 43 Commercial construction loans — — 12,773 158 12,773 158 Consumer and other loans — — 44,483 279 44,483 279 Total ALLL $ 16,204 $ 2,703 $ 4,353,369 $ 64,606 $ 4,369,573 $ 67,309 (A)The balance includes PPP loans of $196 million which had no related reserve as these loans are guaranteed by the SBA. Impaired loans include nonaccrual loans of $6.0 million at June 30, 2021 and $11.4 million at December 31, 2020. The following tables present loans individually evaluated for impairment by class of loans as of June 30, 2021 and December 31, 2020 (The average impaired loans on the following tables represent year to date impaired loans): June 30, 2021 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 2,078 $ 1,889 $ — $ 1,785 Owner-occupied commercial real estate 550 529 — 593 Commercial and industrial 5,091 3,258 — 3,362 Total loans with no related allowance $ 7,719 $ 5,676 $ — $ 5,740 With related allowance recorded: Primary residential mortgage $ 822 $ 822 $ 57 $ 271 Total loans with related allowance $ 822 $ 822 $ 57 $ 271 Total loans individually evaluated for impairment $ 8,541 $ 6,498 $ 57 $ 6,011 December 31, 2020 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 1,601 $ 1,328 $ — $ 5,544 Owner-occupied commercial real estate 817 807 — 516 Investment commercial real estate 4,593 4,593 — 6,582 Commercial and industrial 7,137 4,314 — 1,677 Total loans with no related allowance $ 14,148 $ 11,042 $ — $ 14,319 With related allowance recorded: Primary residential mortgage $ 162 $ 162 $ 3 $ 526 Commercial and industrial 5,000 5,000 2,700 4,140 Total loans with related allowance $ 5,162 $ 5,162 $ 2,703 $ 4,666 Total loans individually evaluated for impairment $ 19,310 $ 16,204 $ 2,703 $ 18,985 Interest income recognized on impaired loans for the quarters ended June 30, 2021 and 2020 was not material. The Company did not recognize any income on non-accruing impaired loans for the three months and six months ended June 30, 2021 and 2020. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2021 and December 31, 2020: June 30, 2021 Loans Past Due 90 Days or Over And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 2,206 $ — Owner-occupied commercial real estate 529 — Commercial and industrial 3,227 — Total $ 5,962 $ — December 31, 2020 Loans Past Due 90 Days or Over And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 1,328 $ — Owner-occupied commercial real estate 807 — Commercial and industrial 9,275 — Total $ 11,410 $ — The following tables present the aging of the recorded investment in past due loans as of June 30, 2021 and December 31, 2020 by class of loans, excluding nonaccrual loans: June 30, 2021 30-59 60-89 90 Days or Days Days Greater Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 503 $ 89 $ — $ 592 Commercial and industrial 946 140 — 1,086 Total $ 1,449 $ 229 $ — $ 1,678 December 31, 2020 30-59 60-89 90 Days or Days Days Greater Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 2,900 $ 141 $ — $ 3,041 Home equity lines of credit 181 — — 181 Junior lien loan on residence — 25 — 25 Multifamily property — 269 — 269 Owner-occupied commercial real estate 268 — — 268 Commercial and industrial 497 772 — 1,269 Total $ 3,846 $ 1,207 $ — $ 5,053 Credit Quality Indicators: The Company places all commercial loans into various credit risk rating categories based on an assessment of the expected ability of the borrowers to properly service their debt. The assessment considers numerous factors including, but not limited to, current financial information on the borrower, historical payment experience, strength of any guarantor, nature of and value of any collateral, acceptability of the loan structure and documentation, relevant public information and current economic trends. This credit risk rating analysis is performed when the loan is initially underwritten and then annually based on set criteria in the loan policy. In addition, the Bank has engaged an independent loan review firm to validate risk ratings and to ensure compliance with our policies and procedures. This review of the following types of loans is performed quarterly: • A large sample of relationships or new lending to existing relationships greater than $1,000,000 booked since the prior review; • All criticized and classified rated borrowers with relationship exposure of more than $500,000; • A large sample of Pass-rated (including Pass Watch) borrowers with total relationships in excess of $1,000,000 and a small sample of Pass related relationships less than $1,000,000; • All leveraged loans of $1,000,000 or greater; • At least two borrowing relationships managed by each commercial banker; • Any new Regulation “O” loan commitments over $1,000,000; and • Any other credits requested by Bank senior management or a member of the Board of Directors and any borrower for which the reviewer determines a review is warranted based upon knowledge of the portfolio, local events, industry stresses, etc. The review excludes borrowers with commitments of less than $ 500,000 . The Company uses the following regulatory definitions for criticized and classified risk ratings: Special Mention: These loans have a potential weakness that deserves Management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the loans or of the institution’s credit position at some future date. Substandard: These loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: These loans have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, based on currently existing facts, conditions and values. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Loans that are considered to be impaired are individually evaluated for potential loss and allowance adequacy. Loans not deemed impaired are collectively evaluated for potential loss and allowance adequacy. As of June 30, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 500,297 $ 1,818 $ 6,298 $ — Home equity lines of credit 43,594 — 466 — Junior lien loan on residence 3,562 — 18 — Multifamily property 1,415,514 4,181 348 — Owner-occupied commercial real estate 234,654 8,182 790 — Investment commercial real estate 888,789 99,100 — — Commercial and industrial 960,816 35,242 3,258 — Lease financing 292,463 — — — Farmland/agricultural production 3,324 — — — Commercial construction loans 23,003 78 — — Consumer and other loans 38,768 — — — Total $ 4,404,784 $ 148,601 $ 11,178 $ — As of December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 504,795 $ 1,398 $ 6,648 $ — Home equity lines of credit 50,068 — 477 — Junior lien loan on residence 4,483 — 44 — Multifamily property 1,121,145 5,441 360 — Owner-occupied commercial real estate 240,638 10,417 2,392 — Investment commercial real estate 893,115 91,162 11,336 — Commercial and industrial 989,281 53,604 16,514 — Lease financing 305,931 — — — Farmland/agricultural production 3,068 — — — Commercial construction loans 12,692 81 — — Consumer and other loans 44,483 — — — Total $ 4,169,699 $ 162,103 $ 37,771 $ — At June 30, 2021, $6.5 million of substandard loans were also considered impaired, compared to December 31, 2020, when $16.2 million of substandard loans were also considered impaired. The activity in the allowance for loan and lease losses for the three months ended June 30, 2021 is summarized below: April 1, June 30, 2021 2021 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 2,776 $ (12 ) $ — $ (597 ) $ 2,167 Home equity lines of credit 198 — 76 (151 ) 123 Junior lien loan on residence 16 — — (8 ) 8 Multifamily property 10,427 — — 188 10,615 Owner-occupied commercial real estate 2,864 — — (417 ) 2,447 Investment commercial real estate 26,693 — — 1,193 27,886 Commercial and industrial 20,125 (5,000 ) 3 1,437 16,565 Lease financing 3,967 — — (692 ) 3,275 Farmland/agricultural production 47 — — (4 ) 43 Commercial construction loans 161 — — (2 ) 159 Consumer and other loans 262 (5 ) 7 (47 ) 217 Total ALLL $ 67,536 $ (5,017 ) $ 86 $ 900 $ 63,505 The activity in the allowance for loan and lease losses for the three months ended June 30, 2020 is summarized below: April 1, June 30, 2020 2020 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 3,173 $ — $ 36 $ (135 ) $ 3,074 Home equity lines of credit 237 — 2 5 244 Junior lien loan on residence 23 — — (3 ) 20 Multifamily property 9,104 — — 558 9,662 Owner-occupied commercial real estate 2,838 — — 339 3,177 Investment commercial real estate 27,671 (400 ) — 2,595 29,866 Commercial and industrial 17,124 (2,254 ) 2 1,346 16,218 Lease financing 3,141 — — 208 3,349 Farmland/agricultural production 38 — — — 38 Commercial construction loans 40 — — 9 49 Consumer and other loans 394 (5 ) 1 (22 ) 368 Total ALLL $ 63,783 $ (2,659 ) $ 41 $ 4,900 $ 66,065 The activity in the allowance for loan and lease losses for the six months ended June 30, 2021 is summarized below: January 1, June 30, 2021 2021 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 2,905 $ (12 ) $ — $ (726 ) $ 2,167 Home equity lines of credit 218 — 85 (180 ) 123 Junior lien loan on residence 15 — — (7 ) 8 Multifamily property 9,945 — — 670 10,615 Owner-occupied commercial real estate 3,050 — — (603 ) 2,447 Investment commercial real estate 27,713 — — 173 27,886 Commercial and industrial 19,047 (5,000 ) 10 2,508 16,565 Lease financing 3,936 — — (661 ) 3,275 Farmland/agricultural production 43 — — — 43 Commercial construction loans 158 — — 1 159 Consumer and other loans 279 (20 ) 8 (50 ) 217 Total ALLL $ 67,309 $ (5,032 ) $ 103 $ 1,125 $ 63,505 The activity in the allowance for loan and lease losses for the six months ended June 30, 2020 is summarized below: January 1, June 30, 2020 2020 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 2,090 $ — $ 113 $ 871 $ 3,074 Home equity lines of credit 128 — 5 111 244 Junior lien loan on residence 13 — — 7 20 Multifamily property 6,037 — — 3,625 9,662 Owner-occupied commercial real estate 2,064 — — 1,113 3,177 Investment commercial real estate 15,988 (400 ) 31 14,247 29,866 Commercial and industrial 14,353 (2,254 ) 5 4,114 16,218 Lease financing 2,642 — — 707 3,349 Farmland/agricultural production 38 — — — 38 Commercial construction loans 27 — — 22 49 Consumer and other loans 296 (13 ) 2 83 368 Total ALLL $ 43,676 $ (2,667 ) $ 156 $ 24,900 $ 66,065 Loan Modifications: The CARES Act allows financial institutions to suspend application of certain current TDR accounting guidance under ASC 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. The revised CARES Act extended loan modifications through January 1, 2022. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest or change the interest rate on the loan. In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide further interpretation of when a borrower is experiencing financial difficulty, specifically indicating that if the modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not experiencing financial difficulty under ASC 310-40. As of June 30, 2021, the Bank has modified 541 loans with a balance of $946.8 million resulting in the deferral of principal and/or interest. The table below summarizes the deferrals as of June 30, 2021. All of these loans were performing in accordance with their terms prior to modification and are in conformance with the CARES Act. Included in the table below is one loan related to our back to back swap program totaling $19.9 million. Details with respect to loan modifications are as follows: Post-Modification Outstanding Number of Recorded (Dollars in thousands) Loans Investment Primary residential mortgage 6 $ 2,065 Junior lien loan on residence 1 19 Owner-occupied commercial real estate 1 117 Investment commercial real estate 1 19,887 Commercial and industrial 4 12,656 Commercial construction loans 1 1,956 Total 14 $ 36,700 The future performance of these loans, specifically beyond the term of the deferral, is uncertain. To recognize a credit allowance commensurate with the existing risk, the Company assigned qualitative factors for each of the above portfolio classes for allowance purposes. Troubled Debt Restructurings: The Company has allocated $57,000 and $3,000 of specific reserves on TDRs as of June 30, 2021 and December 31, 2020, respectively. There were no unfunded commitments to lend additional amounts to customers with outstanding loans that are classified as TDRs. The following table presents loans by class modified as TDRs during the three-month period ended June 30, 2021: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Primary residential mortgage 1 $ 822 $ 822 Commercial and industrial 1 2,317 2,317 Total 2 $ 3,139 $ 3,139 The following table presents loans by class modified as TDRs during the three-month period ended June 30, 2020: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Primary residential mortgage 1 $ 139 $ 139 Total 1 $ 139 $ 139 The following table presents loans by class modified as TDRs during the six-month period ended June 30, 2021: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Primary residential mortgage 1 $ 822 $ 822 Commercial and industrial 1 2,317 2,317 Total 2 $ 3,139 $ 3,139 The following table presents loans by class modified as TDRs during the six-month period ended June 30, 2020: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Primary residential mortgage 2 $ 391 $ 391 Commercial and industrial 1 45 45 Total 3 $ 436 $ 436 The identification of the TDRs did not have a significant impact on the allowance for loan and lease losses. There were no loans that were modified as TDRs for which there was a payment default within twelve months of modification at June 30, 2021. The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at June 30, 2020: Number of Recorded (Dollars in thousands) Loans Investment Primary residential mortgage 1 $ 200 Commercial and industrial 1 45 Total 2 $ 245 In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The modification of the terms of such loans may include one or more of the following: (1) a reduction of the stated interest rate of the loan to a rate that is lower than the current market rate for new debt with similar risk; (2) an extension of an interest only period for a predetermined period of time; (3) an extension of the maturity date; or (4) an extension of the amortization period over which future payments will be computed. At the time a loan is restructured, the Bank performs a full re-underwriting analysis, which includes, at a minimum, obtaining current financial statements and tax returns, copies of all leases, and an updated independent appraisal of the property. A loan will continue to accrue interest if it can be reasonably determined that the borrower should be able to perform under the modified terms, that the loan has not been chronically delinquent (both to debt service and real estate taxes) or in nonaccrual status since its inception, and that there have been no charge-offs on the loan. Restructured loans with previous charge-offs would not accrue interest at the time of the TDR. At a minimum, six consecutive months of contractual payments would need to be made on a restructured loan before returning it to accrual status. Once a loan is classified as a TDR, the loan is reported as a TDR until the loan is paid in full, sold or charged-off. In rare circumstances, a loan may be removed from TDR status if it meets the requirements of ASC 310-40-50-2. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
DEPOSITS | 4. DEPOSITS Certificates of deposit, over $250,000, totaled $157.0 million and $186.3 million at June 30, 2021 and December 31, 2020, respectively. These totals exclude brokered certificates of deposit. The following table sets forth the details of total deposits as of June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 (Dollars in thousands) Noninterest-bearing demand deposits $ 959,494 19.60 % $ 833,500 17.30 % Interest-bearing checking (1) 1,978,497 40.41 1,849,254 38.38 Savings 147,227 3.01 130,731 2.71 Money market 1,213,992 24.80 1,298,885 26.96 Certificates of deposit - retail 446,143 9.11 530,222 11.00 Certificates of deposit - listing service 31,631 0.64 32,128 0.67 Subtotal deposits 4,776,984 97.57 4,674,720 97.02 Interest-bearing demand - Brokered 85,000 1.74 110,000 2.28 Certificates of deposit - Brokered 33,791 0.69 33,764 0.70 Total deposits $ 4,895,775 100.00 % $ 4,818,484 100.00 % (1) Interest-bearing checking includes The scheduled maturities of certificates of deposit, including brokered certificates of deposit, as of June 30, 2021 are as follows: (In thousands) 2021 $ 237,388 2022 197,419 2023 13,030 2024 28,030 2025 29,167 Over 5 Years 6,531 Total $ 511,565 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 5. FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS There were no overnight borrowings with the FHLB as of June 30, 2021 or December 31, 2020. At June 30, 2021, unused short-term overnight borrowing commitments totaled $1.7 billion from the FHLB, $22.0 million from correspondent banks and $1.0 billion at the Federal Reserve Bank of New York. The Company had $83.6 million in borrowings from the Federal Reserve’s Paycheck Protection Plan Lending Facility (the “PPPLF”), as of June 30, 2021 as compared to $177.1 million at December 31, 2020. The borrowings have a rate of 0.35 percent, primarily all of which have a two year maturity. The Company utilized the PPPLF to fund PPP loan production during the second quarter of 2020. The borrowings are fully pledged by PPP loans as of June 30, 2021. During the quarter ended June 30, 2021, the Company terminated an interest rate swap with a notional amount of $15.0 million that was tied to a one-month FHLB advance totaling $15.0 million. The Company prepaid $105.0 million of FHLB advances resulting in a prepayment penalty of $4.8 million during 2020. The repayment of the FHLB advances is expected to provide a benefit to interest expense greater than the prepayment penalty over the remaining life of the advances. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | 6. BUSINESS SEGMENTS The Company assesses its results among two operating segments, Banking and Peapack Private. Management uses certain methodologies to allocate income and expense to the business segments. A funds transfer pricing methodology is used to assign interest income and interest expense. Certain indirect expenses are allocated to segments. These include support unit expenses such as technology and operations and other support functions. Taxes are allocated to each segment based on the effective rate for the period shown. The Banking segment’s effective tax rate for the three and six months ended June 30, 2020 was affected by a $3.3 million income tax benefit recorded during the first quarter of 2020. For additional information related to this income tax benefit refer to the Income Taxes Management’s Discussion and Analysis. Banking The Banking segment includes: commercial (includes C&I and equipment finance), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support and sales. Peapack Private Peapack Private, which includes PGB Trust & Investments of Delaware and Murphy Capital, consists of investment management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian, and other financial planning, tax preparation and advisory services. The following tables present the statements of income and total assets for the Company’s reportable segments for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 Peapack (In thousands) Banking Private Total Net interest income $ 32,399 $ 1,446 $ 33,845 Noninterest income 4,194 13,484 17,678 Total income 36,593 14,930 51,523 Provision for loan and lease losses 900 — 900 Compensation and benefits 14,369 5,541 19,910 Premises and equipment expense 3,519 555 4,074 FDIC expense 529 — 529 Other operating expense 3,817 2,354 6,171 Total operating expense 23,134 8,450 31,584 Income before income tax expense 13,459 6,480 19,939 Income tax expense 3,721 1,800 5,521 Net income $ 9,738 $ 4,680 $ 14,418 Three Months Ended June 30, 2020 Peapack (In thousands) Banking Private Total Net interest income $ 30,453 $ 1,518 $ 31,971 Noninterest income 2,356 10,270 12,626 Total income 32,809 11,788 44,597 Provision for loan and lease losses 4,900 — 4,900 Compensation and employee benefits 13,774 5,412 19,186 Premises and equipment expense 3,487 549 4,036 FDIC insurance expense 455 — 455 Other operating expense 3,052 2,285 5,337 Total operating expense 25,668 8,246 33,914 Income before income tax expense 7,141 3,542 10,683 Income tax expense 1,257 1,184 2,441 Net income $ 5,884 $ 2,358 $ 8,242 Six Months Ended June 30, 2021 Peapack (In thousands) Banking Private Total Net interest income $ 62,625 $ 3,013 $ 65,638 Noninterest income 9,334 26,164 35,498 Total income 71,959 29,177 101,136 Provision for loan and lease losses 1,125 — 1,125 Compensation and employee benefits 30,797 11,103 41,900 Premises and equipment expense 7,089 1,098 8,187 FDIC insurance expense 1,114 — 1,114 Other operating expense 6,208 4,869 11,077 Total operating expense 46,333 17,070 63,403 Income before income tax expense 25,626 12,107 37,733 Income tax expense 6,880 3,257 10,137 Net income $ 18,746 $ 8,850 $ 27,596 Total assets at period end $ 5,700,105 $ 91,583 $ 5,791,688 Six Months Ended June 30, 2020 Peapack (In thousands) Banking Private Total Net interest income $ 60,862 $ 2,856 $ 63,718 Noninterest income 6,585 20,558 27,143 Total income 67,447 23,414 90,861 Provision for loan and lease losses 24,900 — 24,900 Compensation and employee benefits 26,981 11,431 38,412 Premises and equipment expense 6,908 1,171 8,079 FDIC insurance expense 705 — 705 Other operating expense 5,658 4,395 10,053 Total operating expense 65,152 16,997 82,149 Income before income tax (benefit)/expense 2,295 6,417 8,712 Income tax (benefit)/expense (2,636 ) 1,733 (903 ) Net income $ 4,931 $ 4,684 $ 9,615 Total assets at period end $ 6,203,441 $ 77,774 $ 6,281,215 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 7. FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value: Investment Securities: Loans Held for Sale, at Fair Value: Derivatives Impaired Loans: Other Real Estate Owned: Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at fair value, less estimated costs to sell. Fair values are based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by Management. Once received, a third party conducts a review of the appraisal for compliance with the Uniform Standards of Professional Appraisal Practice and appropriate analysis methods for the type of property. Subsequently, a member of the Credit Department reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals on collateral dependent impaired loans and other real estate owned (consistent for all loan types) are obtained on an annual basis, unless a significant change in the market or other factors warrants a more frequent appraisal. On an annual basis, Management compares the actual selling price of any collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value for other properties. The most recent analysis performed indicated that a discount up to 15 percent should be applied to appraisals on properties. The discount is determined based on the nature of the underlying properties, aging of appraisals and other factors. For each collateral-dependent impaired loan, we consider other factors, such as certain indices or other market information, as well as property specific circumstances to determine if an adjustment to the appraised value is needed. In situations where there is evidence of change in value, the Bank will determine if there is a need for an adjustment to the specific reserve on the collateral dependent impaired loans. When the Bank applies an interim adjustment, it generally shows the adjustment as an incremental specific reserve against the loan until it has received the full updated appraisal. All collateral-dependent impaired loans and other real estate owned valuations were supported by an appraisal less than 12 months old or in the process of obtaining an appraisal as of June 30, 2021. The following table summarizes, at the dates indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option: Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs (In thousands) 2021 (Level 1) (Level 2) (Level 3) Assets: Available for sale: U.S. government-sponsored agencies $ 210,940 $ — $ 210,940 $ — Mortgage-backed securities-residential 555,273 — 555,273 — SBA pool securities 45,268 — 45,268 — State and political subdivisions 6,775 — 6,775 — Corporate bond 5,564 — 5,564 — CRA investment fund 14,894 14,894 — — Loans held for sale, at fair value 3,974 — 3,974 — Derivatives: Loan level swaps 51,855 — 51,855 — Total $ 894,543 $ 14,894 $ 879,649 $ — Liabilities: Derivatives: Cash flow hedges $ 6,203 $ — $ 6,203 $ — Loan level swaps 51,855 — 51,855 — Total $ 58,058 $ — $ 58,058 $ — Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2020 (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. treasuries $ 2,613 $ — $ 2,613 $ — U.S. government-sponsored agencies 83,771 — 83,771 — Mortgage-backed securities-residential 476,058 — 476,058 — SBA pool securities 49,129 — 49,129 — State and political subdivisions 8,089 — 8,089 — Corporate bond 3,029 — 3,029 — CRA investment fund 15,117 15,117 — — Loans held for sale, at fair value 13,588 — 13,588 — Derivatives: Loan level swaps 79,529 — 79,529 — Total $ 730,923 $ 15,117 $ 715,806 $ — Liabilities: Derivatives: Cash flow hedges $ 9,616 $ — $ 9,616 $ — Loan level swaps 79,529 — 79,529 — Total $ 89,145 $ — $ 89,145 $ — The Company has elected the fair value option for certain loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due nor on nonaccrual as of June 30, 2021 and December 31, 2020. The following tables present residential loans held for sale, at fair value at the dates indicated: (In thousands) June 30, 2021 December 31, 2020 Residential loans contractual balance $ 3,911 $ 13,295 Fair value adjustment 63 293 Total fair value of residential loans held for sale $ 3,974 $ 13,588 There were no transfers between Level 1 and Level 2 during the three and six months ended June 30, 2021. The following tables summarize, at the dates indicated, assets measured at fair value on a non-recurring basis: Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs (In thousands) 2021 (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Primary residential mortgage $ 765 $ — $ — $ 765 Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2020 (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Commercial and industrial $ 2,300 $ — $ — $ 2,300 The carrying amounts and estimated fair values of financial instruments at June 30, 2021 are as follows: Fair Value Measurements at June 30, 2021 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 203,462 $ 203,462 $ — $ — $ 203,462 Securities available for sale 823,820 — 823,820 — 823,820 CRA investment fund 14,894 14,894 — — 14,894 FHLB and FRB stock 12,901 — — — N/A Loans held for sale, at fair value 3,974 — 3,974 — 3,974 Loans held for sale, at lower of cost or fair value 11,179 — 11,844 — 11,844 Loans, net of allowance for loan and lease losses 4,505,328 — — 4,697,207 4,697,207 Accrued interest receivable 23,117 — 2,190 20,927 23,117 Accrued interest receivable loan level swaps (A) 4,716 — 4,716 — 4,716 Loan level swaps 51,855 — 51,855 — 51,855 Financial liabilities Deposits $ 4,895,775 $ 4,384,210 $ 516,107 $ — $ 4,900,317 Paycheck Protection Program Liquidity Facility 83,586 — 83,586 — 83,586 Subordinated debt 132,557 — — 130,523 130,523 Accrued interest payable 1,028 126 827 75 1,028 Accrued interest payable loan level swaps 4,716 — 4,716 — 4,716 Cash flow hedges 6,203 — 6,203 — 6,203 Loan level swap 51,855 — 51,855 — 51,855 (A) Included in other assets in the Consolidated Statement of Condition. The carrying amounts and estimated fair values of financial instruments at December 31, 2020 are as follows: Fair Value Measurements at December 31, 2020 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 653,322 $ 653,322 $ — $ — $ 653,322 Securities available for sale 622,689 — 622,689 — 622,689 CRA investment fund 15,117 15,117 — — 15,117 FHLB and FRB stock 13,709 — — — N/A Loans held for sale, at fair value 13,588 — 13,588 — 13,588 Loans held for sale, at lower of cost or fair value 18,520 — 19,115 — 19,115 Loans, net of allowance for loan and lease losses 4,305,128 — — 4,462,243 4,462,243 Accrued interest receivable 22,495 — 1,653 20,842 22,495 Loan level swaps 79,529 — 79,529 — 79,529 Financial liabilities Deposits $ 4,818,484 $ 4,222,370 $ 604,036 $ — $ 4,826,406 Short-term borrowings 15,000 — 15,000 — 15,000 Paycheck Protection Program Liquidity Facility 177,086 — 177,086 — 177,086 Subordinated debt 181,794 — — 183,348 183,348 Accrued interest payable 1,650 150 1,347 153 1,650 Cash flow hedges 9,616 — 9,616 — 9,616 Loan level swaps 79,529 — 79,529 — 79,529 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 8. REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following tables present the sources of noninterest income for the periods indicated: For the Three Months Ended June 30, (In thousands) 2021 2020 Service charges on deposits Overdraft fees $ 87 $ 72 Interchange income 370 270 Other 439 353 Wealth management fees (a) 13,034 9,996 Gains/(losses) on sales of OREO 51 — Other (b) 3,697 1,935 Total noninterest other income $ 17,678 $ 12,626 For the Six Months Ended June 30, (In thousands) 2021 2020 Service charges on deposits Overdraft fees $ 180 $ 219 Interchange income 687 550 Other 875 742 Wealth management fees (a) 25,165 19,951 Gains/(losses) on sales of OREO 51 — Other (b) 8,540 5,681 Total noninterest other income $ 35,498 $ 27,143 (a) Includes investment brokerage fees. (b) All of the other category is outside the scope of ASC 606. The following table presents the sources of noninterest income by operating segment for the periods indicated: For the Three Months Ended June 30, For the Three Months Ended June 30, 2021 2020 (In thousands) Wealth Wealth Revenue by Operating Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 87 $ — $ 87 $ 72 $ — $ 72 Interchange income 370 — 370 270 — 270 Other 439 — 439 353 — 353 Wealth management fees (a) — 13,034 13,034 — 9,996 9,996 Gains/(losses) on sales of OREO 51 — 51 — — — Other (b) 3,247 450 3,697 1,661 274 1,935 Total noninterest income $ 4,194 $ 13,484 $ 17,678 $ 2,356 $ 10,270 $ 12,626 For the Six Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2021 2020 Revenue by Operating Wealth Wealth Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 180 $ — $ 180 $ 219 $ — $ 219 Interchange income 687 — 687 550 — 550 Other 875 — 875 742 — 742 Wealth management fees (a) — 25,165 25,165 — 19,951 19,951 Gains/(losses) on sales of OREO 51 — 51 — — — Other (b) 7,541 999 8,540 5,074 607 5,681 Total noninterest income $ 9,334 $ 26,164 $ 35,498 $ 6,585 $ 20,558 $ 27,143 (a) Includes investment brokerage fees. (b) All of the other category is outside the scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 follows: Service charges on deposit accounts Interchange income Wealth management fees (gross) Investment brokerage fees (net) : The Company earns fees from investment brokerage services provided to its customers by a third-party service provider. The Company receives commissions from the third-party service provider twice a month based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are generally paid by the 15 th of the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs. Gains/(losses) on sales of OREO Other |
OTHER OPERATING EXPENSES
OTHER OPERATING EXPENSES | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
OTHER OPERATING EXPENSES | 9. OTHER OPERATING EXPENSES The following table presents the major components of other operating expenses for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2021 2020 2021 2020 Professional and legal fees $ 1,186 $ 1,042 $ 2,442 $ 2,016 Telephone 312 395 646 719 Advertising 404 728 618 1,068 Amortization of intangible assets 368 321 736 645 Branch restructure 228 278 228 278 Write-off of subordinated debt costs 648 — 648 — Other operating expenses 3,025 2,573 5,759 5,327 Total other operating expenses $ 6,171 $ 5,337 $ 11,077 $ 10,053 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 10. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the three months ended June 30, 2021 and 2020: Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at April 1, Before Comprehensive June 30, June 30, (In thousands) 2021 Reclassifications Income/(Loss) 2021 2021 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ (7,894 ) $ 6,938 $ — $ 6,938 $ (956 ) Gain/(loss) on cash flow hedges (5,870 ) 805 606 1,411 (4,459 ) Accumulated other comprehensive gain/(loss), net of tax $ (13,764 ) $ 7,743 $ 606 $ 8,349 $ (5,415 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at April 1, Before Comprehensive June 30, June 30, (In thousands) 2020 Reclassifications Income/(Loss) 2020 2020 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ 5,393 $ 1,542 $ — $ 1,542 $ 6,935 Gain/(loss) on cash flow hedges (9,052 ) 128 (7 ) 121 (8,931 ) Accumulated other comprehensive loss, net of tax $ (3,659 ) $ 1,670 $ (7 ) $ 1,663 $ (1,996 ) The following represents the reclassifications out of accumulated other comprehensive income/(loss) for the three months ended June 30, 2021 and 2020: Three Months Ended June 30, (In thousands) 2021 2020 Affected Line Item in Income Statement Unrealized gains/(losses) on cash flow hedge derivatives: Reclassification adjustment for amounts included in net income $ — $ (9 ) Interest expense Reclassification adjustment for losses on termination of swaps included in net income 842 — Other income Tax effect (236 ) 2 Income tax expense Total reclassifications, net of tax $ 606 $ (7 ) The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the six months ended June 30, 2021 and 2020 Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Six Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive June 30, June 30, (In thousands) 2021 Reclassifications Income/(Loss) 2021 2021 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ 5,521 $ (6,477 ) $ — $ (6,477 ) $ (956 ) Gain/(loss) on cash flow hedges (6,913 ) 1,848 606 2,454 (4,459 ) Accumulated other comprehensive loss, net of tax $ (1,392 ) $ (4,629 ) $ 606 $ (4,023 ) $ (5,415 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Six Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive June 30, June 30, (In thousands) 2020 Reclassifications Income/(Loss) 2020 2020 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ 1,006 $ 5,929 $ — $ 5,929 $ 6,935 Gain/(loss) on cash flow hedges (2,501 ) (6,371 ) (59 ) (6,430 ) (8,931 ) Accumulated other comprehensive loss, net of tax $ (1,495 ) $ (442 ) $ (59 ) $ (501 ) $ (1,996 ) The following represents the reclassifications out of accumulated other comprehensive income/(loss) for the six months ended June 30, 2021 and 2020: Six Months Ended June 30, (In thousands) 2021 2020 Affected Line Item in Income Unrealized gains on cash flow hedge derivatives: Reclassification adjustment for amounts included in net income $ — $ (80 ) Interest expense Reclassification adjustment for losses on termination of swaps included in net income 842 — Other income Tax effect (236 ) 21 Income tax expense Total reclassifications, net of tax $ 606 $ (59 ) |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 11. DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest Rate Swaps Designated as Cash Flow Hedges: The following table presents information about the interest rate swaps designated as cash flow hedges as of June 30, 2021 and December 31, 2020: (Dollars in thousands) June 30, 2021 December 31, 2020 Notional amount $ 230,000 $ 270,000 Weighted average pay rate 1.96 % 1.93 % Weighted average receive rate 0.19 % 0.22 % Weighted average maturity 1.43 years 2.02 years Unrealized loss, net $ (6,203 ) $ (9,616 ) Number of contracts 11 13 Net interest expense recorded on these swap transactions totaled $1.1 million and $2.3 million for the three and six months ended June 30, 2021, respectively. Net interest expense recorded on these swap transactions totaled $1.1 million and $1.3 million for the three months and six months ended June 30, 2020, respectively. Cash Flow Hedges The following table presents the net gain/(loss) recorded in accumulated other comprehensive income/(loss) and the consolidated financial statements relating to the cash flow derivative instruments for the three months and six months ended June 30, 2021 and 2020: For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2021 2020 2021 2020 Interest rate contracts Gain/(loss) recognized in OCI (effective portion) $ 1,411 $ 121 $ 2,454 $ (6,430 ) Gain/(loss) reclassified from OCI to interest expense — (7 ) — (59 ) Gain/(loss) recognized in other noninterest income (842 ) — (842 ) — During the first quarter of 2020, the Company recognized an unrealized after-tax gain of $26,000 in accumulated other comprehensive income/(loss) related to the termination of three interest rate swaps designated as cash flow hedges. During the second quarter of 2019, the Company recognized an unrealized after-tax gain of $189,000 in accumulated other comprehensive income/(loss) related to the termination of four interest rate swaps designated as cash flow hedges. These gains were amortized into earnings over the remaining life of the terminated swaps and completed amortization as of December 31, 2020. The Company did not recognize pre-tax interest income for the three and six months ended June 30, 2021, related to the amortization of the gain on the terminated interest rate swaps designated as cash flow hedges. The Company recognized pre-tax interest income During the second quarter of 2021, the Bank terminated interest rate swaps with a notional amount of $40.0 million. June 30, 2021 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ (6,203 ) Total included in other assets — — Total included in other liabilities 230,000 (6,203 ) December 31, 2020 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 270,000 $ (9,616 ) Total included in other assets — — Total included in other liabilities 270,000 (9,616 ) Derivatives Not Designated as Accounting Hedges: Information about these swaps is as follows: (Dollars in thousands) June 30, 2021 December 31, 2020 Notional amount $ 778,584 $ 823,134 Fair value $ 51,855 $ 79,529 Weighted average pay rates 4.05 % 4.02 % Weighted average receive rates 1.88 % 1.91 % Weighted average maturity 5.92 years 6.5 years Number of contracts 92 95 |
SUBORDINATED DEBT
SUBORDINATED DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Subordinated Longterm Debt Current And Noncurrent [Abstract] | |
SUBORDINATED DEBT | 12. SUBORDINATED DEBT In June 2016, the Company issued $50.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “2016 Notes”) to certain institutional investors. The 2016 Notes are non-callable for five years, have a stated maturity of June 30, 2026, and bear interest at a fixed rate of 6.0 percent per year until June 30, 2021. From June 30, 2021 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 485 basis points, payable quarterly in arrears. During the second quarter of 2021, the Company used a portion of the proceeds from the December 2020 subordinated debt issuance to redeem the $50.0 million June 2016 issuance. The remaining net issuance costs of $648,000 were written-off during the quarter ended June 30, 2021. Approximately $40.0 million of the net proceeds from the sale of the 2016 Notes were contributed by the Company to the Bank in the second quarter of 2016. The remaining funds (approximately $10 million) were retained by the Company for operational purposes. In December 2017, the Company issued $35.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “2017 Notes”) to certain institutional investors. The 2017 Notes are non-callable for five years, have a stated maturity of December 15, 2027, and bear interest at a fixed rate of 4.75 percent per year until December 15, 2022. From December 16, 2022 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 254 basis points, payable quarterly in arrears. Debt issuance costs incurred totaled $875,000 and are being amortized to maturity. Approximately $29.1 million of the net proceeds from the sale of the 2017 Notes were contributed by the Company to the Bank in the fourth quarter of 2017. The remaining funds (approximately $5 million), representing three years of interest payments, were retained by the Company for operational purposes. In December 2020, the Company issued $100.0 million in aggregate principal amount of fixed to floating subordinates notes (the “2020 Notes”) to certain institutional investors. The 2020 Notes are non-callable for five years, have a stated maturity of December 22, 2030, and bear interest at a fixed rate of 3.50 percent per year until December 22, 2025. From December 23, 2025 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month SOFR plus 326 basis points, payable quarterly in arrears. Debt issuance costs incurred totaled $1.9 million and are being amortized to maturity. The Company may use the proceeds from the issuance of the 2020 Notes for stock repurchases and acquisitions of wealth management firms, as well as other general corporate purposes. Subordinated debt is presented net of issuance costs on the Consolidated Statements of Condition. The subordinated debt issuances are included in the Company’s regulatory total capital amount and ratio. In connection with the issuance of the 2020 Notes, the Company obtained ratings from Kroll Bond Rating Agency (“KBRA”) and Moody’s Investors Services (“Moody’s). KBRA assigned an investment grade rating of BBB- and Moody’s assigned an investment grade rating of Baa3 for the 2020 Notes at the time of issuance. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | 13. LEASES The Company maintains certain property and equipment under direct financing and operating leases. As of June 30, 2021, the Company's operating lease ROU asset and operating lease liability totaled $9.6 million and $9.9 million, respectively. The Company's leases have remaining lease terms between five months to 16 years, with a weighted average lease term of 6.60 years at June 30, 2021. The Company's leases had remaining lease terms between one months to 16 years, with a weighted average lease term of 6.01 years, at December 31, 2020. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. Total operating lease costs were $691,000 and $812,000 for the three months ended June 30, 2021 and 2020, respectively. The variable lease costs were $83,000 and $87,000 for the three months ended June 30, 2021 and 2020, respectively. Total operating lease costs were $1.4 million and $1.6 million for the six months ended June 30, 2021 and 2020, respectively. The variable lease costs were $167,000 and $176,000 for the six months ended June 30, 2021 and 2020, respectively. The following is a schedule of the Company's operating lease liabilities by contractual maturity as of June 30, 2021: (In thousands) 2021 $ 2,694 2022 2,390 2023 1,891 2024 1,705 2025 1,121 Thereafter 2,638 Total lease payments 12,439 Less: imputed interest 2,537 Total present value of lease payments $ 9,902 The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the six months ended June 30, 2021 and 2020: For the Six Months Ended (In thousands) 2021 2020 Right-of-use asset obtained in exchange for lease obligation $ 1,412 $ 157 Operating cash flows from operating leases 1,226 1,446 Operating cash flows from direct finance leases 156 177 Financing cash flows from direct finance leases 374 374 |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | 14. ACCOUNTING PRONOUNCEMENTS On June 16, 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This ASU replaces the incurred loss model with an expected loss model, referred to as “current expected credit loss” (CECL) model. It will significantly change estimates for credit losses related to financial assets measured at amortized cost, including loans receivable, and certain other contracts. The largest impact will be on lenders and the allowance for loan and lease losses (ALLL). This ASU will be effective for public business entities (PBEs) in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has elected to delay the adoption of ASU 2016-13, as approved by the CARES Act, until January 1, 2022. The Company has reviewed the potential impact to our securities portfolio, which primarily consists of U.S. government sponsored entities, mortgage-backed securities and municipal securities which have no history of credit loss and have strong credit ratings. The Company does not expect the standard to have a material impact on its financial statements as it relates to the Company’s securities portfolio. The Company is also currently evaluating the impact the CECL model will have on our accounting and allowance for loans losses. The Company has selected a third-party firm to assist in the development of a CECL model to assist in the calculation of the allowance for loan and lease losses in preparation for the change to the expected loss model. The Company has also engaged a third-party firm to perform a model validation of our CECL model. The Company is also in the process of updating its policies and internal controls accordingly. The Company expects to recognize a one-time cumulative-effect adjustment to our ALLL as of January 1, 2022, consistent with regulatory expectations set forth in interagency guidance. The Company cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on our consolidated financial condition or results of operations. In December 2019, the FASB issued ASU 2019-12, The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. This ASU did not have a material impact on the Company’s consolidated financial statements. 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”. The amendments in this Update provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to 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 and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this ASU can be adopted immediately and are effective through December 31, 2020. The Company is evaluating alternative reference rates including the Secured Overnight Financing Rate (SOFR) in preparation for a rate index replacement and the adoption of this ASU. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Organization | Principles of Consolidation and Organization: The consolidated financial statements of the Company are prepared on the accrual basis and include the accounts of the Company and its wholly-owned subsidiary, Peapack-Gladstone Bank (the “Bank”). The consolidated financial statements also include the Bank’s wholly-owned subsidiaries: • PGB Trust & Investments of Delaware • Peapack Capital Corporation (“PCC”) • Murphy Capital Management (“Murphy Capital”) • Peapack-Gladstone Mortgage Group, Inc. owns 99 percent of Peapack Ventures, LLC and 79 percent of Peapack-Gladstone Realty, Inc., a New Jersey real estate investment company • PGB Trust & Investments of Delaware owns one percent of Peapack Ventures, LLC • Peapack Ventures, LLC owns the remaining 21 percent of Peapack-Gladstone Realty, Inc. • PGB Securities, Inc. (formed in the second quarter of 2020) While the following footnotes include the consolidated results of the Company, the Bank and their subsidiaries, these footnotes primarily reflect the Bank’s and its subsidiaries’ activities. All significant intercompany balances and transactions have been eliminated from the accompanying consolidated financial statements. |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation : The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. In preparing the financial statements, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the statement of condition and revenues and expenses for the periods presented. Actual results could differ from those estimates. |
Segment Information | Segment Information : The Company’s business is conducted through two business segments: its banking segment, which involves the delivery of loan and deposit products to customers, and the Peapack Private Wealth Management Division (“Peapack Private”), which includes asset management services to individuals and institutions. Management uses certain methodologies to allocate income and expense to the business segments. The Banking segment includes commercial (includes commercial and industrial (“C&I”) and equipment financing), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support services. Peapack Private includes: investment management services for individuals and institutions; personal trust services, including services as executor, trustee, administrator and custodian; and other financial planning and advisory services. This segment also includes the activity from the Delaware subsidiary, PGB Trust & Investments of Delaware, and Murphy Capital. Wealth management fees are primarily earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management (“AUM”) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed (i.e. trade date). |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of the statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits and federal funds sold. Generally, federal funds are sold for one-day are of original maturities of 90 days or less. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings with original maturities of 90 days or less. |
Interest-Earning Deposits in Other Financial Institutions | Interest-Earning Deposits in Other Financial Institutions : Interest-earning deposits in other financial institutions mature within one year and are carried at cost. |
Securities | Securities : All debt securities are classified as available for sale and are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. The Company also has an investment in a Community Reinvestment Act (“CRA”) investment fund, which is classified as an equity security. Interest income includes amortization of purchase premiums and discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated, and premiums on callable debt securities, which are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant. For securities in an unrealized loss position, Management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) other-than-temporary impairment related to credit loss, which is recognized in the income statement and 2) other-than-temporary impairment related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock | Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock, based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank is also a member of the Federal Reserve Bank of New York and required to own a certain amount of FRB stock. FRB stock is carried at cost and classified as a restricted security. Dividends are reported as income. |
Loans Held for Sale | Loans Held for Sale: Mortgage loans originated with the intent to sell in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released; therefore, no servicing rights are recorded. Gains and losses on sales of mortgage loans, shown as gain on sale of loans on the Statement of Income, are based on the difference between the selling price and the carrying value of the related loan sold. U.S. Small Business Administration (SBA) loans originated with the intent to sell in the secondary market are carried at the lower of cost or fair value. SBA loans are generally sold with the servicing rights retained. Gains and losses on the sale of SBA loans are based on the difference between the selling price and the carrying value of the related loan sold. Total SBA loans serviced totaled $83.1 million and $65.5 million as of June 30, 2021 and December 31, 2020, respectively. SBA loans held for sale totaled $5.6 million and $6.0 million at June 30, 2021 and December 31, 2020, respectively. Loans originated with the intent to hold and subsequently transferred to loans held for sale are carried at the lower of cost or fair value. These are loans that the Company no longer has the intent to hold for the foreseeable future. |
Loans | Loans: Loans that Management has the intent and ability to hold for the foreseeable future or until maturity are stated at the principal amount outstanding. Interest on loans is recognized based upon the principal amount outstanding. Loans are stated at face value, less purchased premium and discounts and net deferred fees. Loan origination fees and certain direct loan origination costs are deferred and recognized on a level-yield method, over the life of the loan as an adjustment to the loan’s yield. The definition of recorded investment in loans includes accrued interest receivable and deferred fees/cost, however, for the Company’s loan disclosures, accrued interest and deferred fees/cost were excluded as the impact was not material. Loans are considered past due when they are not paid within 30 days in accordance with contractual terms. The accrual of income on loans, including impaired loans, is discontinued if, in the opinion of Management, principal or interest is not likely to be paid in accordance with the terms of the loan agreement, or when principal or interest is past due 90 days unless the asset is both well secured and in the process of collection. All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Payments received on nonaccrual loans are recorded as principal payments. A nonaccrual loan is returned to accrual status only when interest and principal payments are brought current and future payments are reasonably assured, generally when the Bank receives contractual payments for a minimum of six consecutive months. Commercial loans are generally charged off , in whole or in part, after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Consumer closed-end loans are generally charged off after they become 120 days past due and open-end loans after 180 days . Subsequent payments are credited to income only if collection of principal is not in doubt. If principal and interest payments are brought contractually current and future collectability is reasonably assured, loans may be returned to accrual status. Nonaccrual mortgage loans are generally charged off to the extent that the value of the underlying collateral does not cover the outstanding principal balance. The majority of the Company ’s loans are secured by real estate in New Jersey, New York and Pennsylvania. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses: The allowance for loan and lease losses is a valuation allowance for credit losses that is Management’s estimate of probable losses in the loan portfolio. The process to determine reserves utilizes analytic tools and Management judgment and is reviewed on a quarterly basis. When Management is reasonably certain that a loan balance is not fully collectable, an impairment analysis is completed whereby a specific reserve may be established or a full or partial charge off is recorded against the allowance. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the size and composition of the portfolio, information about specific borrower situations, estimated collateral values, level of and trends in delinquent, classified and nonperforming loans, economic conditions and other factors. Allocations of the allowance may be made for specific loans via a specific reserve, but the entire allowance is available for any loan that, in Management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans are individually evaluated for impairment when they are classified as substandard by Management. If a loan is considered impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or if repayment is expected solely from the underlying collateral, the loan principal balance is compared to the fair value of collateral less estimated disposition costs to determine the need, if any, for a charge off. The general component of the allowance covers non-impaired loans and is based primarily on the Company’s historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experience by the Company on a weighted average basis over the previous three years. This actual loss experience is adjusted by other qualitative factors based on the risks present for each portfolio segment. As a result of the effects of the COVID-19 pandemic, the Company increased certain qualitative factors related to elevated levels of unemployment, economic forecasts and approved loan deferral payment requests as businesses both locally and nationally were shut down and have only gradually and partially reopened. The Company also considered qualitative factors related to the following: levels of and trends in delinquencies and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staffing and experience; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. For loans that are graded as non-impaired, the Company allocates a higher general reserve percentage than pass-rated loans using a multiple that is calculated annually through a migration analysis. At both June 30, 2021 and December 31, 2020, the multiple was 2.25 times for non-impaired special mention loans and 3.25 times for non-impaired substandard loans. A troubled debt restructuring (“TDR”) is a modified loan with concessions made by the lender to a borrower who is experiencing financial difficulty. TDRs are impaired and are generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral, less estimated disposition costs. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan and lease losses. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security ("CARES“) Act, which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP. The CARES Act allows financial institutions to suspend application of certain current TDR accounting guidance under Accounting Standards Codification ("ASC") 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest or change the interest rate on the loan. The revised CARES Act allows for loan modifications through January 1, 2022. In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide further interpretation of when a borrower is experiencing financial difficulty, specifically indicating that if the modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not experiencing financial difficulty under ASC 310-40. The Company continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing an appropriate allowance for loan and lease losses on its loan portfolio. The Company approved total loan modifications under the CARES Act of $946.8 million, of which $36.7 million remain outstanding as of June 30, 2021. Another key program under the CARES Act is the Paycheck Protection Program (“PPP”) administered by the SBA which has provided much needed funding to qualifying businesses and organizations. Under this program, the Company has provided fundings of approximately $650 million. In the third quarter of 2020 and second quarter of 2021, the Company sold approximately $355.0 million and $56.5 million, respectively, of such loans, servicing rights released to a third party. The Company also referred approximately $124 million of PPP loans to a third party during the first six months of 2021. The Company has approximately $83.8 million of PPP loans remaining in its portfolio as of June 30, 2021 and believes that the majority of these loans will be forgiven by the SBA. In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on Federal call report codes, which are based on collateral or purpose. The following portfolio classes have been identified: Primary Residential Mortgages Home Equity Lines of Credit Junior Lien Loan on Residence Multifamily and Commercial Real Estate Loans generally considered to have a higher degree of credit risk than multifamily loans as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions. Commercial and Industrial Loans Leasing and Equipment Finance Asset risk in PCC’s portfolio is generally recognized through changes to loan income, or through changes to lease related income streams due to fluctuations in lease rates. Changes to lease income can occur when the existing lease contract expires, the asset comes off lease or the business seeks to enter a new lease agreement. Asset risk may also change through depreciation, resulting from changes in the residual value of the operating lease asset or through impairment of the asset carrying value, which can occur at any time during the life of the asset. Credit risk in PCC’s portfolio generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions. Credit losses can impact multiple parts of the income statement including loss of interest/lease/rental income and/or higher costs and expenses related to the repossession, refurbishment, re-marketing and or re-leasing of assets. Consumer and Other |
Leases | Leases: At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding right-of-use (“ROU”) asset and operating lease liability are recorded in separate line items on the statement of condition. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made. If the rate implicit in the lease is not readily determinable, the incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s statement of condition, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. The Company maintains certain property and equipment under direct financing and operating leases. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space and are classified as operating leases. The ROU asset is measured at the amount of the lease liability adjusted for lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the ROU asset. Operating lease expense consists of: a single lease cost allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the ROU asset. There are no terms or conditions related to residual value guarantees and no restrictions or covenants that would impact the Company’s ability to pay dividends or to incur additional financial obligations. |
Derivatives | Derivatives: At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For cash flow hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative continues to be reported at fair value in the statement of condition, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminated, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company also offers facility specific / loan level swaps to its customers and offsets its exposure from such contracts by entering into mirror image swaps with a financial institution / swap counterparty (loan level / back to back swap program). The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting (“standalone derivatives”). The notional amount of the swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual contracts. The fair value of the swaps is recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal amounts for these transactions. The Company is exposed to losses if a customer counterparty fails to make its payments under a contract in which the Company is in a net receiving position. At this time, the Company anticipates that our counterparties will be able to fully satisfy their obligations under the agreements. All of the contracts to which the Company is a party settle monthly. Further, the Company has netting agreements with the dealers with which it does business. |
Stock-Based Compensation | Stock-Based Compensation: The Company’s 2006 Long-Term Stock Incentive Plan, 2012 Long-Term Stock Incentive Plan and 2021 Long-Term Stock Incentive Plan allow the granting of shares of the Company’s common stock as incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units and stock appreciation rights to directors, officers and employees of the Company and its subsidiaries. There are no shares remaining for issuance with respect to the stock option plan approved in 2002, however options granted under this plan are still included in the amounts below. Options granted under these plans are, in general, exercisable not earlier than one year after the date of grant, at a price equal to the fair value of common stock on the date of grant and expire not more than ten years after the date of grant. Stock options may vest during a period of up to five years after the date of grant. Some options granted to officers at or above the senior vice president level were immediately exercisable at the date of grant. The Company has a policy of using authorized but unissued shares to satisfy option exercises. Upon adoption of Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting , ” the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. For the Company’s stock option plans, changes in options outstanding during the six months ended June 30, 2021 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2021 50,660 $ 13.59 Exercised during 2021 (2,820 ) 12.42 Expired during 2021 — — Forfeited during 2021 (2,480 ) 13.50 Balance, June 30, 2021 45,360 $ 13.67 1.21 years $ 789 Vested and expected to vest 45,360 $ 13.67 1.21 years $ 789 Exercisable at June 30, 2021 45,360 $ 13.67 1.21 years $ 789 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of 2021 and the exercise price, multiplied by the number of in-the-money options). The Company’s closing stock price on June 30, 2021 was $31.07. There were no stock options granted during the three or six months ended June 30, 2021. The Company issued performance-based and service-based restricted stock units in 2021 and 2020. Service-based units vest ratably over a three- or five-year The performance-based awards are dependent upon the Company meeting certain performance criteria and, to the extent the performance criteria are met, will cliff vest at the end of the performance period which is generally three years. There were no performance-based restricted stock units granted in the second quarter of 2021. Changes in non-vested shares dependent on performance criteria for the six months ended June 30, 2021 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2021 221,600 $ 20.47 Granted during 2021 51,710 31.36 Vested during 2021 (36,032 ) 35.33 Forfeited during 2021 (11,843 ) 26.32 Balance, June 30, 2021 225,435 $ 20.29 Changes in service-based restricted stock awards/units for the six months ended June 30, 2021 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2021 777,166 $ 19.24 Granted during 2021 211,356 31.36 Vested during 2021 (252,316 ) 22.01 Forfeited during 2021 (23,314 ) 16.55 Balance, June 30, 2021 712,892 $ 21.94 As of June 30, 2021, there was $16.1 million of total unrecognized compensation cost related to service-based and performance-based units. That cost is expected to be recognized over a weighted average period of 1.59 years. Stock compensation expense recorded for the second quarters of 2021 and 2020 totaled $1.8 million and $1.7 million, respectively. Stock compensation expense recorded for the six months ended June 30, 2021 and 2020 totaled $3.5 million and $3.3 million, respectively. |
Employee Stock Purchase Plan | Employee Stock Purchase Plan (“ESPP”): In July 2019, the Board appointed ESPP “committee” revised the ESPP. The ESPP provides for the granting of rights to purchase up to 150,000 shares of Peapack-Gladstone Financial Corporation common stock. In May 2020, shareholders approved an increase of 200,000 shares of Peapack-Gladstone Financial Corporation common stock to be issued under the ESPP. Subject to certain eligibility requirements and restrictions, the ESPP provided for a single Offering Period of twelve months in duration, which commenced on May 16, 2019 and ended on May 15, 2020. The ESPP was revised to allow for the purchase of shares during four three-month Offering Periods of each calendar year. The Offering Periods are February 16, May 16. August 16 and November 16 of each calendar year. Each participant in the Offering Period is granted an option to purchase a number of shares and may contribute between one percent and 15 percent of their compensation. At the end of each Offering Period on the purchase date, the number of shares to be purchased by the employee is determined by dividing the employee’s contributions accumulated during the Offering Period by the applicable purchase price. The purchase price is an amount equal to 85 percent of the closing market price of a share of common stock on the purchase date. Participation in the ESPP is entirely voluntary and employees can cancel their purchases at any time during the period without penalty. The fair value of each share purchase right is determined using the Black-Scholes option pricing model. The Company recorded $26,000 and $149,000 of expense in salaries and employee benefits expense for the three months ended June 30, 2021 and 2020, respectively related to the ESPP. Total shares issued under the ESPP during the second quarter of 2021 and 2020 were 6,347 and 46,935, respectively. The Company recorded $56,000 and $190,000 of expense in salaries and employee benefits expense for the six months ended June 30, 2021 and 2020, respectively related to the ESPP. Total shares issued under the ESPP for the six months ended June 30, 2021 and 2020 were 14,772 and 46,935, respectively. |
Earnings per share - Basic and Diluted | Earnings per share – Basic and Diluted: The following is a reconciliation of the calculation of basic and diluted earnings per share. Basic net income per share is calculated by dividing net income available to shareholders by the weighted average shares outstanding during the reporting period. Diluted net income per share is computed similarly to that of basic net income per share, except that the denominator is increased to include the number of additional shares that would have been outstanding utilizing the Treasury Stock Method if all shares underlying potentially dilutive stock options were issued and all restricted stock, stock warrants or restricted stock units were to vest during the reporting period. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2021 2020 2021 2020 Net income available to common shareholders $ 14,418 $ 8,242 $ 27,596 $ 9,615 Basic weighted average shares outstanding 18,963,237 18,872,070 18,956,807 18,865,206 Plus: common stock equivalents 476,202 187,752 516,343 125,850 Diluted weighted average shares outstanding 19,439,439 19,059,822 19,473,150 18,991,056 Net income per share Basic $ 0.76 $ 0.44 $ 1.46 $ 0.51 Diluted 0.74 0.43 1.42 0.51 For the three months ended June 30, 2021 and 2020, restricted stock units totaling 13,374 and 297,320 were not included in the computation of diluted earnings per share because they were anti-dilutive. For the six months ended June 30, 2021 and 2020, stock options and restricted stock units totaling 262,423 and 713,789 were not included in the computation of diluted earnings per share because they were anti-dilutive. Anti-dilutive shares are common stock equivalents with weighted average exercise prices in excess of the average market value for the periods presented. |
Income Taxes | Income Taxes: The Company files a consolidated Federal income tax return. Separate state income tax returns are filed for each subsidiary based on current laws and regulations. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on the enacted tax rates. Such tax assets and liabilities are adjusted for the effect of a change in tax rates in the period of enactment. The Company recognizes a tax position as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company is no longer subject to examination by the U.S. Federal tax authorities for years prior to 2016 or by New Jersey tax authorities for years prior to 2015. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements. |
Restrictions on Cash | Restrictions on Cash: A large portion of cash on hand or on deposit with the Federal Reserve Bank (“FRB”) was required to meet regulatory reserve and clearing requirements. Prior to March 2020, reserves were in the form of cash and balances with the FRB and included in interest-earning deposits in our statement of condition. The FRB suspended cash reserve requirements effective March 26, 2020. |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss): Comprehensive income/(loss) consists of net income and the change during the period in the Company’s net unrealized gains or losses on securities available for sale and unrealized gains and losses on cash flow hedge, net of tax, less adjustments for realized gains and losses. |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, 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 the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Risks and Uncertainties | Risks and Uncertainties: The COVID-19 pandemic has had a devastating effect on businesses both locally and nationally. As a result, Congress passed the CARES Act to provide fast and direct economic assistance to American workers, families and businesses. The CARES Act contains substantial tax and spending provisions including direct financial aid to American families, extensive emergency funding for hospitals and medical providers, and economic stimulus to significant impacted industry sectors. The Company expects COVID-19 to have an impact on our operations but cannot determine or estimate the full impact at this time. It is possible that estimates made in the Company’s consolidated financial statements could be materially and adversely impacted as a result of the conditions created by COVID-19, including estimates regarding expected provision for loan and lease losses and impairment of goodwill. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree (if any), over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill which includes assembled workforce has an indefinite life on our statement of financial condition. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill and assembled workforce are the intangible assets with an indefinite life on our balance sheet. Other intangible assets, which primarily consist of customer relationship intangible assets arising from acquisitions, are amortized on an accelerated basis over their estimated useful lives, which range from 5 to 15 years. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Options Outstanding | For the Company’s stock option plans, changes in options outstanding during the six months ended June 30, 2021 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2021 50,660 $ 13.59 Exercised during 2021 (2,820 ) 12.42 Expired during 2021 — — Forfeited during 2021 (2,480 ) 13.50 Balance, June 30, 2021 45,360 $ 13.67 1.21 years $ 789 Vested and expected to vest 45,360 $ 13.67 1.21 years $ 789 Exercisable at June 30, 2021 45,360 $ 13.67 1.21 years $ 789 |
Schedule of Changes in Non-Vested Performance-Based Shares | Changes in non-vested shares dependent on performance criteria for the six months ended June 30, 2021 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2021 221,600 $ 20.47 Granted during 2021 51,710 31.36 Vested during 2021 (36,032 ) 35.33 Forfeited during 2021 (11,843 ) 26.32 Balance, June 30, 2021 225,435 $ 20.29 |
Schedule of Changes in Service-Based Restricted Stock Awards/Units | Changes in service-based restricted stock awards/units for the six months ended June 30, 2021 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2021 777,166 $ 19.24 Granted during 2021 211,356 31.36 Vested during 2021 (252,316 ) 22.01 Forfeited during 2021 (23,314 ) 16.55 Balance, June 30, 2021 712,892 $ 21.94 |
Schedule of Calculation of Basic and Diluted Earnings per Share | The following is a reconciliation of the calculation of basic and diluted earnings per share. Basic net income per share is calculated by dividing net income available to shareholders by the weighted average shares outstanding during the reporting period. Diluted net income per share is computed similarly to that of basic net income per share, except that the denominator is increased to include the number of additional shares that would have been outstanding utilizing the Treasury Stock Method if all shares underlying potentially dilutive stock options were issued and all restricted stock, stock warrants or restricted stock units were to vest during the reporting period. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2021 2020 2021 2020 Net income available to common shareholders $ 14,418 $ 8,242 $ 27,596 $ 9,615 Basic weighted average shares outstanding 18,963,237 18,872,070 18,956,807 18,865,206 Plus: common stock equivalents 476,202 187,752 516,343 125,850 Diluted weighted average shares outstanding 19,439,439 19,059,822 19,473,150 18,991,056 Net income per share Basic $ 0.76 $ 0.44 $ 1.46 $ 0.51 Diluted 0.74 0.43 1.42 0.51 |
INVESTMENT SECURITIES AVAILAB_2
INVESTMENT SECURITIES AVAILABLE FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investment Securities Available For Sale [Abstract] | |
Schedule of Amortized Cost and Approximate Fair Value of Securities Available for Sale | A summary of amortized cost and approximate fair value of investment securities available for sale included in the Consolidated Statements of Condition as of June 30, 2021 and December 31, 2020 follows: June 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S government-sponsored agencies $ 214,141 $ 15 $ (3,216 ) $ 210,940 Mortgage-backed securities–residential 553,129 6,613 (4,469 ) 555,273 SBA pool securities 45,565 112 (409 ) 45,268 State and political subdivisions 6,705 70 — 6,775 Corporate bond 5,500 64 — 5,564 Total $ 825,040 $ 6,874 $ (8,094 ) $ 823,820 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. treasuries $ 2,613 $ — $ — $ 2,613 U.S. government-sponsored agencies 84,424 2 (655 ) 83,771 Mortgage-backed securities–residential 467,915 8,604 (461 ) 476,058 SBA pool securities 49,457 31 (359 ) 49,129 State and political subdivisions 7,987 102 — 8,089 Corporate bond 3,000 29 — 3,029 Total $ 615,396 $ 8,768 $ (1,475 ) $ 622,689 |
Schedule of Available for Sale Securities with Continuous Unrealized Losses and Approximate Fair Value of Investments | The following tables present the Company’s available for sale securities in a continuous unrealized loss position and the approximate fair value of these investments as of June 30, 2021 and December 31, 2020. June 30, 2021 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S government-sponsored agencies $ 171,484 $ (3,216 ) $ — $ — $ 171,484 $ (3,216 ) Mortgage-backed securities-residential 276,658 (4,292 ) 15,325 (177 ) 291,983 (4,469 ) SBA pool securities 36,460 (409 ) — — 36,460 (409 ) Total $ 484,602 $ (7,917 ) $ 15,325 $ (177 ) $ 499,927 $ (8,094 ) December 31, 2020 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government-sponsored agencies $ 73,769 $ (655 ) $ — $ — $ 73,769 $ (655 ) Mortgage-backed securities-residential 103,340 (430 ) 13,914 (31 ) 117,254 (461 ) SBA pool securities 39,720 (343 ) 2,095 (16 ) 41,815 (359 ) Total $ 216,829 $ (1,428 ) $ 16,009 $ (47 ) $ 232,838 $ (1,475 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of composition of loans categorized by the type of loan | Loans outstanding, excluding those held for sale, by general ledger classification, as of June 30, 2021 and December 31, 2020, consisted of the following: % of % of June 30, Totals December 31, Total (Dollars in thousands) 2021 Loans 2020 Loans Residential mortgage $ 500,207 10.95 % $ 502,829 11.50 % Multifamily mortgage 1,420,043 31.08 1,126,946 25.77 Commercial mortgage 702,777 15.38 691,294 15.81 Commercial loans (including equipment financing) (A) 1,846,728 40.42 1,950,981 44.62 Commercial construction 22,923 0.50 12,600 0.29 Home equity lines of credit 44,060 0.97 50,545 1.15 Consumer loans, including fixed rate home equity loans 31,889 0.70 37,016 0.85 Other loans 206 0.00 226 0.01 Total loans $ 4,568,833 100.00 % $ 4,372,437 100.00 % (A) Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal Call Report codes. The following portfolio classes have been identified as of June 30, 2021 and December 31, 2020: % of % of June 30, Totals December 31, Total (Dollars in thousands) 2021 Loans 2020 Loans Primary residential mortgage $ 508,413 11.14 % $ 512,841 11.74 % Home equity lines of credit 44,060 0.96 50,545 1.16 Junior lien loan on residence 3,580 0.08 4,527 0.10 Multifamily property 1,420,043 31.11 1,126,946 25.79 Owner-occupied commercial real estate 243,626 5.34 253,447 5.80 Investment commercial real estate 987,889 21.64 995,613 22.79 Commercial and industrial (A) 999,316 21.89 1,059,399 24.24 Lease financing 292,463 6.41 305,931 7.00 Farmland/agricultural production 3,324 0.07 3,068 0.07 Commercial construction loans 23,081 0.51 12,773 0.29 Consumer and other loans 38,768 0.85 44,483 1.02 Total loans 4,564,563 100.00 % 4,369,573 100.00 % Net deferred costs 4,270 2,864 Total loans including net deferred costs $ 4,568,833 $ 4,372,437 (A) Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. |
Schedule of loan balances by portfolio segment, based on impairment method, and the corresponding balances in the allowance for loan losses | The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan and lease losses (ALLL) as of June 30, 2021 and December 31, 2020: June 30, 2021 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 2,711 $ 57 $ 505,702 $ 2,110 $ 508,413 $ 2,167 Home equity lines of credit — — 44,060 123 44,060 123 Junior lien loan on residence — — 3,580 8 3,580 8 Multifamily property — — 1,420,043 10,615 1,420,043 10,615 Owner-occupied commercial real estate 529 — 243,097 2,447 243,626 2,447 Investment commercial real estate — — 987,889 27,886 987,889 27,886 Commercial and industrial (A) 3,258 — 996,058 16,565 999,316 16,565 Lease financing — — 292,463 3,275 292,463 3,275 Farmland/agricultural production — — 3,324 43 3,324 43 Commercial construction loans — — 23,081 159 23,081 159 Consumer and other loans — — 38,768 217 38,768 217 Total ALLL $ 6,498 $ 57 $ 4,558,065 $ 63,448 $ 4,564,563 $ 63,505 (A) The balance includes PPP loans of $84 million which had no related reserve as these loans are guaranteed by the SBA December 31, 2020 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 1,490 $ 3 $ 511,351 $ 2,902 $ 512,841 $ 2,905 Home equity lines of credit — — 50,545 218 50,545 218 Junior lien loan on residence — — 4,527 15 4,527 15 Multifamily property — — 1,126,946 9,945 1,126,946 9,945 Owner-occupied commercial real estate 807 — 252,640 3,050 253,447 3,050 Investment commercial real estate 4,593 — 991,020 27,713 995,613 27,713 Commercial and industrial (A) 9,314 2,700 1,050,085 16,347 1,059,399 19,047 Lease financing — — 305,931 3,936 305,931 3,936 Farmland/agricultural production — — 3,068 43 3,068 43 Commercial construction loans — — 12,773 158 12,773 158 Consumer and other loans — — 44,483 279 44,483 279 Total ALLL $ 16,204 $ 2,703 $ 4,353,369 $ 64,606 $ 4,369,573 $ 67,309 (A)The balance includes PPP loans of $196 million which had no related reserve as these loans are guaranteed by the SBA. |
Schedule of loans individually evaluated for impairment | The following tables present loans individually evaluated for impairment by class of loans as of June 30, 2021 and December 31, 2020 (The average impaired loans on the following tables represent year to date impaired loans): June 30, 2021 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 2,078 $ 1,889 $ — $ 1,785 Owner-occupied commercial real estate 550 529 — 593 Commercial and industrial 5,091 3,258 — 3,362 Total loans with no related allowance $ 7,719 $ 5,676 $ — $ 5,740 With related allowance recorded: Primary residential mortgage $ 822 $ 822 $ 57 $ 271 Total loans with related allowance $ 822 $ 822 $ 57 $ 271 Total loans individually evaluated for impairment $ 8,541 $ 6,498 $ 57 $ 6,011 December 31, 2020 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 1,601 $ 1,328 $ — $ 5,544 Owner-occupied commercial real estate 817 807 — 516 Investment commercial real estate 4,593 4,593 — 6,582 Commercial and industrial 7,137 4,314 — 1,677 Total loans with no related allowance $ 14,148 $ 11,042 $ — $ 14,319 With related allowance recorded: Primary residential mortgage $ 162 $ 162 $ 3 $ 526 Commercial and industrial 5,000 5,000 2,700 4,140 Total loans with related allowance $ 5,162 $ 5,162 $ 2,703 $ 4,666 Total loans individually evaluated for impairment $ 19,310 $ 16,204 $ 2,703 $ 18,985 |
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual | The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2021 and December 31, 2020: June 30, 2021 Loans Past Due 90 Days or Over And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 2,206 $ — Owner-occupied commercial real estate 529 — Commercial and industrial 3,227 — Total $ 5,962 $ — December 31, 2020 Loans Past Due 90 Days or Over And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 1,328 $ — Owner-occupied commercial real estate 807 — Commercial and industrial 9,275 — Total $ 11,410 $ — |
Schedule of aging of past due loans | The following tables present the aging of the recorded investment in past due loans as of June 30, 2021 and December 31, 2020 by class of loans, excluding nonaccrual loans: June 30, 2021 30-59 60-89 90 Days or Days Days Greater Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 503 $ 89 $ — $ 592 Commercial and industrial 946 140 — 1,086 Total $ 1,449 $ 229 $ — $ 1,678 December 31, 2020 30-59 60-89 90 Days or Days Days Greater Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 2,900 $ 141 $ — $ 3,041 Home equity lines of credit 181 — — 181 Junior lien loan on residence — 25 — 25 Multifamily property — 269 — 269 Owner-occupied commercial real estate 268 — — 268 Commercial and industrial 497 772 — 1,269 Total $ 3,846 $ 1,207 $ — $ 5,053 |
Schedule of the risk category of loans by class of loans | As of June 30, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 500,297 $ 1,818 $ 6,298 $ — Home equity lines of credit 43,594 — 466 — Junior lien loan on residence 3,562 — 18 — Multifamily property 1,415,514 4,181 348 — Owner-occupied commercial real estate 234,654 8,182 790 — Investment commercial real estate 888,789 99,100 — — Commercial and industrial 960,816 35,242 3,258 — Lease financing 292,463 — — — Farmland/agricultural production 3,324 — — — Commercial construction loans 23,003 78 — — Consumer and other loans 38,768 — — — Total $ 4,404,784 $ 148,601 $ 11,178 $ — As of December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 504,795 $ 1,398 $ 6,648 $ — Home equity lines of credit 50,068 — 477 — Junior lien loan on residence 4,483 — 44 — Multifamily property 1,121,145 5,441 360 — Owner-occupied commercial real estate 240,638 10,417 2,392 — Investment commercial real estate 893,115 91,162 11,336 — Commercial and industrial 989,281 53,604 16,514 — Lease financing 305,931 — — — Farmland/agricultural production 3,068 — — — Commercial construction loans 12,692 81 — — Consumer and other loans 44,483 — — — Total $ 4,169,699 $ 162,103 $ 37,771 $ — |
Schedule of Activity in Allowance for Loan and Lease Losses | The activity in the allowance for loan and lease losses for the three months ended June 30, 2021 is summarized below: April 1, June 30, 2021 2021 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 2,776 $ (12 ) $ — $ (597 ) $ 2,167 Home equity lines of credit 198 — 76 (151 ) 123 Junior lien loan on residence 16 — — (8 ) 8 Multifamily property 10,427 — — 188 10,615 Owner-occupied commercial real estate 2,864 — — (417 ) 2,447 Investment commercial real estate 26,693 — — 1,193 27,886 Commercial and industrial 20,125 (5,000 ) 3 1,437 16,565 Lease financing 3,967 — — (692 ) 3,275 Farmland/agricultural production 47 — — (4 ) 43 Commercial construction loans 161 — — (2 ) 159 Consumer and other loans 262 (5 ) 7 (47 ) 217 Total ALLL $ 67,536 $ (5,017 ) $ 86 $ 900 $ 63,505 The activity in the allowance for loan and lease losses for the three months ended June 30, 2020 is summarized below: April 1, June 30, 2020 2020 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 3,173 $ — $ 36 $ (135 ) $ 3,074 Home equity lines of credit 237 — 2 5 244 Junior lien loan on residence 23 — — (3 ) 20 Multifamily property 9,104 — — 558 9,662 Owner-occupied commercial real estate 2,838 — — 339 3,177 Investment commercial real estate 27,671 (400 ) — 2,595 29,866 Commercial and industrial 17,124 (2,254 ) 2 1,346 16,218 Lease financing 3,141 — — 208 3,349 Farmland/agricultural production 38 — — — 38 Commercial construction loans 40 — — 9 49 Consumer and other loans 394 (5 ) 1 (22 ) 368 Total ALLL $ 63,783 $ (2,659 ) $ 41 $ 4,900 $ 66,065 The activity in the allowance for loan and lease losses for the six months ended June 30, 2021 is summarized below: January 1, June 30, 2021 2021 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 2,905 $ (12 ) $ — $ (726 ) $ 2,167 Home equity lines of credit 218 — 85 (180 ) 123 Junior lien loan on residence 15 — — (7 ) 8 Multifamily property 9,945 — — 670 10,615 Owner-occupied commercial real estate 3,050 — — (603 ) 2,447 Investment commercial real estate 27,713 — — 173 27,886 Commercial and industrial 19,047 (5,000 ) 10 2,508 16,565 Lease financing 3,936 — — (661 ) 3,275 Farmland/agricultural production 43 — — — 43 Commercial construction loans 158 — — 1 159 Consumer and other loans 279 (20 ) 8 (50 ) 217 Total ALLL $ 67,309 $ (5,032 ) $ 103 $ 1,125 $ 63,505 The activity in the allowance for loan and lease losses for the six months ended June 30, 2020 is summarized below: January 1, June 30, 2020 2020 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 2,090 $ — $ 113 $ 871 $ 3,074 Home equity lines of credit 128 — 5 111 244 Junior lien loan on residence 13 — — 7 20 Multifamily property 6,037 — — 3,625 9,662 Owner-occupied commercial real estate 2,064 — — 1,113 3,177 Investment commercial real estate 15,988 (400 ) 31 14,247 29,866 Commercial and industrial 14,353 (2,254 ) 5 4,114 16,218 Lease financing 2,642 — — 707 3,349 Farmland/agricultural production 38 — — — 38 Commercial construction loans 27 — — 22 49 Consumer and other loans 296 (13 ) 2 83 368 Total ALLL $ 43,676 $ (2,667 ) $ 156 $ 24,900 $ 66,065 |
Schedule of loans modified as troubled debt restructurings | Details with respect to loan modifications are as follows: Post-Modification Outstanding Number of Recorded (Dollars in thousands) Loans Investment Primary residential mortgage 6 $ 2,065 Junior lien loan on residence 1 19 Owner-occupied commercial real estate 1 117 Investment commercial real estate 1 19,887 Commercial and industrial 4 12,656 Commercial construction loans 1 1,956 Total 14 $ 36,700 The following table presents loans by class modified as TDRs during the three-month period ended June 30, 2021: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Primary residential mortgage 1 $ 822 $ 822 Commercial and industrial 1 2,317 2,317 Total 2 $ 3,139 $ 3,139 The following table presents loans by class modified as TDRs during the three-month period ended June 30, 2020: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Primary residential mortgage 1 $ 139 $ 139 Total 1 $ 139 $ 139 The following table presents loans by class modified as TDRs during the six-month period ended June 30, 2021: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Primary residential mortgage 1 $ 822 $ 822 Commercial and industrial 1 2,317 2,317 Total 2 $ 3,139 $ 3,139 The following table presents loans by class modified as TDRs during the six-month period ended June 30, 2020: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Primary residential mortgage 2 $ 391 $ 391 Commercial and industrial 1 45 45 Total 3 $ 436 $ 436 The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at June 30, 2020: Number of Recorded (Dollars in thousands) Loans Investment Primary residential mortgage 1 $ 200 Commercial and industrial 1 45 Total 2 $ 245 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Schedule of Details of Total Deposits | The following table sets forth the details of total deposits as of June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 (Dollars in thousands) Noninterest-bearing demand deposits $ 959,494 19.60 % $ 833,500 17.30 % Interest-bearing checking (1) 1,978,497 40.41 1,849,254 38.38 Savings 147,227 3.01 130,731 2.71 Money market 1,213,992 24.80 1,298,885 26.96 Certificates of deposit - retail 446,143 9.11 530,222 11.00 Certificates of deposit - listing service 31,631 0.64 32,128 0.67 Subtotal deposits 4,776,984 97.57 4,674,720 97.02 Interest-bearing demand - Brokered 85,000 1.74 110,000 2.28 Certificates of deposit - Brokered 33,791 0.69 33,764 0.70 Total deposits $ 4,895,775 100.00 % $ 4,818,484 100.00 % (1) Interest-bearing checking includes |
Scheduled Maturities of Time Deposits | The scheduled maturities of certificates of deposit, including brokered certificates of deposit, as of June 30, 2021 are as follows: (In thousands) 2021 $ 237,388 2022 197,419 2023 13,030 2024 28,030 2025 29,167 Over 5 Years 6,531 Total $ 511,565 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Income and Total Assets for Reportable Segments | The following tables present the statements of income and total assets for the Company’s reportable segments for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 Peapack (In thousands) Banking Private Total Net interest income $ 32,399 $ 1,446 $ 33,845 Noninterest income 4,194 13,484 17,678 Total income 36,593 14,930 51,523 Provision for loan and lease losses 900 — 900 Compensation and benefits 14,369 5,541 19,910 Premises and equipment expense 3,519 555 4,074 FDIC expense 529 — 529 Other operating expense 3,817 2,354 6,171 Total operating expense 23,134 8,450 31,584 Income before income tax expense 13,459 6,480 19,939 Income tax expense 3,721 1,800 5,521 Net income $ 9,738 $ 4,680 $ 14,418 Three Months Ended June 30, 2020 Peapack (In thousands) Banking Private Total Net interest income $ 30,453 $ 1,518 $ 31,971 Noninterest income 2,356 10,270 12,626 Total income 32,809 11,788 44,597 Provision for loan and lease losses 4,900 — 4,900 Compensation and employee benefits 13,774 5,412 19,186 Premises and equipment expense 3,487 549 4,036 FDIC insurance expense 455 — 455 Other operating expense 3,052 2,285 5,337 Total operating expense 25,668 8,246 33,914 Income before income tax expense 7,141 3,542 10,683 Income tax expense 1,257 1,184 2,441 Net income $ 5,884 $ 2,358 $ 8,242 Six Months Ended June 30, 2021 Peapack (In thousands) Banking Private Total Net interest income $ 62,625 $ 3,013 $ 65,638 Noninterest income 9,334 26,164 35,498 Total income 71,959 29,177 101,136 Provision for loan and lease losses 1,125 — 1,125 Compensation and employee benefits 30,797 11,103 41,900 Premises and equipment expense 7,089 1,098 8,187 FDIC insurance expense 1,114 — 1,114 Other operating expense 6,208 4,869 11,077 Total operating expense 46,333 17,070 63,403 Income before income tax expense 25,626 12,107 37,733 Income tax expense 6,880 3,257 10,137 Net income $ 18,746 $ 8,850 $ 27,596 Total assets at period end $ 5,700,105 $ 91,583 $ 5,791,688 Six Months Ended June 30, 2020 Peapack (In thousands) Banking Private Total Net interest income $ 60,862 $ 2,856 $ 63,718 Noninterest income 6,585 20,558 27,143 Total income 67,447 23,414 90,861 Provision for loan and lease losses 24,900 — 24,900 Compensation and employee benefits 26,981 11,431 38,412 Premises and equipment expense 6,908 1,171 8,079 FDIC insurance expense 705 — 705 Other operating expense 5,658 4,395 10,053 Total operating expense 65,152 16,997 82,149 Income before income tax (benefit)/expense 2,295 6,417 8,712 Income tax (benefit)/expense (2,636 ) 1,733 (903 ) Net income $ 4,931 $ 4,684 $ 9,615 Total assets at period end $ 6,203,441 $ 77,774 $ 6,281,215 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | The following table summarizes, at the dates indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option: Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs (In thousands) 2021 (Level 1) (Level 2) (Level 3) Assets: Available for sale: U.S. government-sponsored agencies $ 210,940 $ — $ 210,940 $ — Mortgage-backed securities-residential 555,273 — 555,273 — SBA pool securities 45,268 — 45,268 — State and political subdivisions 6,775 — 6,775 — Corporate bond 5,564 — 5,564 — CRA investment fund 14,894 14,894 — — Loans held for sale, at fair value 3,974 — 3,974 — Derivatives: Loan level swaps 51,855 — 51,855 — Total $ 894,543 $ 14,894 $ 879,649 $ — Liabilities: Derivatives: Cash flow hedges $ 6,203 $ — $ 6,203 $ — Loan level swaps 51,855 — 51,855 — Total $ 58,058 $ — $ 58,058 $ — Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2020 (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. treasuries $ 2,613 $ — $ 2,613 $ — U.S. government-sponsored agencies 83,771 — 83,771 — Mortgage-backed securities-residential 476,058 — 476,058 — SBA pool securities 49,129 — 49,129 — State and political subdivisions 8,089 — 8,089 — Corporate bond 3,029 — 3,029 — CRA investment fund 15,117 15,117 — — Loans held for sale, at fair value 13,588 — 13,588 — Derivatives: Loan level swaps 79,529 — 79,529 — Total $ 730,923 $ 15,117 $ 715,806 $ — Liabilities: Derivatives: Cash flow hedges $ 9,616 $ — $ 9,616 $ — Loan level swaps 79,529 — 79,529 — Total $ 89,145 $ — $ 89,145 $ — |
Schedule of Residential Loans Held for Sale | The following tables present residential loans held for sale, at fair value at the dates indicated: (In thousands) June 30, 2021 December 31, 2020 Residential loans contractual balance $ 3,911 $ 13,295 Fair value adjustment 63 293 Total fair value of residential loans held for sale $ 3,974 $ 13,588 |
Schedule of Assets Measured at Fair Value on Non-Recurring Basis | The following tables summarize, at the dates indicated, assets measured at fair value on a non-recurring basis: Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs (In thousands) 2021 (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Primary residential mortgage $ 765 $ — $ — $ 765 Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2020 (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Commercial and industrial $ 2,300 $ — $ — $ 2,300 |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments at June 30, 2021 are as follows: Fair Value Measurements at June 30, 2021 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 203,462 $ 203,462 $ — $ — $ 203,462 Securities available for sale 823,820 — 823,820 — 823,820 CRA investment fund 14,894 14,894 — — 14,894 FHLB and FRB stock 12,901 — — — N/A Loans held for sale, at fair value 3,974 — 3,974 — 3,974 Loans held for sale, at lower of cost or fair value 11,179 — 11,844 — 11,844 Loans, net of allowance for loan and lease losses 4,505,328 — — 4,697,207 4,697,207 Accrued interest receivable 23,117 — 2,190 20,927 23,117 Accrued interest receivable loan level swaps (A) 4,716 — 4,716 — 4,716 Loan level swaps 51,855 — 51,855 — 51,855 Financial liabilities Deposits $ 4,895,775 $ 4,384,210 $ 516,107 $ — $ 4,900,317 Paycheck Protection Program Liquidity Facility 83,586 — 83,586 — 83,586 Subordinated debt 132,557 — — 130,523 130,523 Accrued interest payable 1,028 126 827 75 1,028 Accrued interest payable loan level swaps 4,716 — 4,716 — 4,716 Cash flow hedges 6,203 — 6,203 — 6,203 Loan level swap 51,855 — 51,855 — 51,855 (A) Included in other assets in the Consolidated Statement of Condition. The carrying amounts and estimated fair values of financial instruments at December 31, 2020 are as follows: Fair Value Measurements at December 31, 2020 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 653,322 $ 653,322 $ — $ — $ 653,322 Securities available for sale 622,689 — 622,689 — 622,689 CRA investment fund 15,117 15,117 — — 15,117 FHLB and FRB stock 13,709 — — — N/A Loans held for sale, at fair value 13,588 — 13,588 — 13,588 Loans held for sale, at lower of cost or fair value 18,520 — 19,115 — 19,115 Loans, net of allowance for loan and lease losses 4,305,128 — — 4,462,243 4,462,243 Accrued interest receivable 22,495 — 1,653 20,842 22,495 Loan level swaps 79,529 — 79,529 — 79,529 Financial liabilities Deposits $ 4,818,484 $ 4,222,370 $ 604,036 $ — $ 4,826,406 Short-term borrowings 15,000 — 15,000 — 15,000 Paycheck Protection Program Liquidity Facility 177,086 — 177,086 — 177,086 Subordinated debt 181,794 — — 183,348 183,348 Accrued interest payable 1,650 150 1,347 153 1,650 Cash flow hedges 9,616 — 9,616 — 9,616 Loan level swaps 79,529 — 79,529 — 79,529 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Noninterest Income | The following tables present the sources of noninterest income for the periods indicated: For the Three Months Ended June 30, (In thousands) 2021 2020 Service charges on deposits Overdraft fees $ 87 $ 72 Interchange income 370 270 Other 439 353 Wealth management fees (a) 13,034 9,996 Gains/(losses) on sales of OREO 51 — Other (b) 3,697 1,935 Total noninterest other income $ 17,678 $ 12,626 For the Six Months Ended June 30, (In thousands) 2021 2020 Service charges on deposits Overdraft fees $ 180 $ 219 Interchange income 687 550 Other 875 742 Wealth management fees (a) 25,165 19,951 Gains/(losses) on sales of OREO 51 — Other (b) 8,540 5,681 Total noninterest other income $ 35,498 $ 27,143 (a) Includes investment brokerage fees. (b) All of the other category is outside the scope of ASC 606. |
Schedule of Noninterest Income by Operating Segment | The following table presents the sources of noninterest income by operating segment for the periods indicated: For the Three Months Ended June 30, For the Three Months Ended June 30, 2021 2020 (In thousands) Wealth Wealth Revenue by Operating Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 87 $ — $ 87 $ 72 $ — $ 72 Interchange income 370 — 370 270 — 270 Other 439 — 439 353 — 353 Wealth management fees (a) — 13,034 13,034 — 9,996 9,996 Gains/(losses) on sales of OREO 51 — 51 — — — Other (b) 3,247 450 3,697 1,661 274 1,935 Total noninterest income $ 4,194 $ 13,484 $ 17,678 $ 2,356 $ 10,270 $ 12,626 For the Six Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2021 2020 Revenue by Operating Wealth Wealth Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 180 $ — $ 180 $ 219 $ — $ 219 Interchange income 687 — 687 550 — 550 Other 875 — 875 742 — 742 Wealth management fees (a) — 25,165 25,165 — 19,951 19,951 Gains/(losses) on sales of OREO 51 — 51 — — — Other (b) 7,541 999 8,540 5,074 607 5,681 Total noninterest income $ 9,334 $ 26,164 $ 35,498 $ 6,585 $ 20,558 $ 27,143 (a) Includes investment brokerage fees. (b) All of the other category is outside the scope of ASC 606. |
OTHER OPERATING EXPENSES (Table
OTHER OPERATING EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Schedule of Components of Other Operating Expenses | The following table presents the major components of other operating expenses for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2021 2020 2021 2020 Professional and legal fees $ 1,186 $ 1,042 $ 2,442 $ 2,016 Telephone 312 395 646 719 Advertising 404 728 618 1,068 Amortization of intangible assets 368 321 736 645 Branch restructure 228 278 228 278 Write-off of subordinated debt costs 648 — 648 — Other operating expenses 3,025 2,573 5,759 5,327 Total other operating expenses $ 6,171 $ 5,337 $ 11,077 $ 10,053 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income/(Loss) Balances, Net of Tax | The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the three months ended June 30, 2021 and 2020: Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at April 1, Before Comprehensive June 30, June 30, (In thousands) 2021 Reclassifications Income/(Loss) 2021 2021 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ (7,894 ) $ 6,938 $ — $ 6,938 $ (956 ) Gain/(loss) on cash flow hedges (5,870 ) 805 606 1,411 (4,459 ) Accumulated other comprehensive gain/(loss), net of tax $ (13,764 ) $ 7,743 $ 606 $ 8,349 $ (5,415 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at April 1, Before Comprehensive June 30, June 30, (In thousands) 2020 Reclassifications Income/(Loss) 2020 2020 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ 5,393 $ 1,542 $ — $ 1,542 $ 6,935 Gain/(loss) on cash flow hedges (9,052 ) 128 (7 ) 121 (8,931 ) Accumulated other comprehensive loss, net of tax $ (3,659 ) $ 1,670 $ (7 ) $ 1,663 $ (1,996 ) The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the six months ended June 30, 2021 and 2020 Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Six Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive June 30, June 30, (In thousands) 2021 Reclassifications Income/(Loss) 2021 2021 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ 5,521 $ (6,477 ) $ — $ (6,477 ) $ (956 ) Gain/(loss) on cash flow hedges (6,913 ) 1,848 606 2,454 (4,459 ) Accumulated other comprehensive loss, net of tax $ (1,392 ) $ (4,629 ) $ 606 $ (4,023 ) $ (5,415 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Six Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive June 30, June 30, (In thousands) 2020 Reclassifications Income/(Loss) 2020 2020 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ 1,006 $ 5,929 $ — $ 5,929 $ 6,935 Gain/(loss) on cash flow hedges (2,501 ) (6,371 ) (59 ) (6,430 ) (8,931 ) Accumulated other comprehensive loss, net of tax $ (1,495 ) $ (442 ) $ (59 ) $ (501 ) $ (1,996 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income/(loss) | The following represents the reclassifications out of accumulated other comprehensive income/(loss) for the three months ended June 30, 2021 and 2020: Three Months Ended June 30, (In thousands) 2021 2020 Affected Line Item in Income Statement Unrealized gains/(losses) on cash flow hedge derivatives: Reclassification adjustment for amounts included in net income $ — $ (9 ) Interest expense Reclassification adjustment for losses on termination of swaps included in net income 842 — Other income Tax effect (236 ) 2 Income tax expense Total reclassifications, net of tax $ 606 $ (7 ) The following represents the reclassifications out of accumulated other comprehensive income/(loss) for the six months ended June 30, 2021 and 2020: Six Months Ended June 30, (In thousands) 2021 2020 Affected Line Item in Income Unrealized gains on cash flow hedge derivatives: Reclassification adjustment for amounts included in net income $ — $ (80 ) Interest expense Reclassification adjustment for losses on termination of swaps included in net income 842 — Other income Tax effect (236 ) 21 Income tax expense Total reclassifications, net of tax $ 606 $ (59 ) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Schedule of Information about Interest Rate Swaps Designated as Cash Flow Hedges | The following table presents information about the interest rate swaps designated as cash flow hedges as of June 30, 2021 and December 31, 2020: (Dollars in thousands) June 30, 2021 December 31, 2020 Notional amount $ 230,000 $ 270,000 Weighted average pay rate 1.96 % 1.93 % Weighted average receive rate 0.19 % 0.22 % Weighted average maturity 1.43 years 2.02 years Unrealized loss, net $ (6,203 ) $ (9,616 ) Number of contracts 11 13 |
Schedule of Net Gains/(Loss) Recorded in Accumulated Other Comprehensive Income/(Loss) | The following table presents the net gain/(loss) recorded in accumulated other comprehensive income/(loss) and the consolidated financial statements relating to the cash flow derivative instruments for the three months and six months ended June 30, 2021 and 2020: For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2021 2020 2021 2020 Interest rate contracts Gain/(loss) recognized in OCI (effective portion) $ 1,411 $ 121 $ 2,454 $ (6,430 ) Gain/(loss) reclassified from OCI to interest expense — (7 ) — (59 ) Gain/(loss) recognized in other noninterest income (842 ) — (842 ) — |
Schedule of Cash Flow Hedges Included in Financial Statements | June 30, 2021 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ (6,203 ) Total included in other assets — — Total included in other liabilities 230,000 (6,203 ) December 31, 2020 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 270,000 $ (9,616 ) Total included in other assets — — Total included in other liabilities 270,000 (9,616 ) |
Not Designated as Hedging Instrument [Member] | |
Schedule of Information about Interest Rate Swaps Designated as Cash Flow Hedges | Information about these swaps is as follows: (Dollars in thousands) June 30, 2021 December 31, 2020 Notional amount $ 778,584 $ 823,134 Fair value $ 51,855 $ 79,529 Weighted average pay rates 4.05 % 4.02 % Weighted average receive rates 1.88 % 1.91 % Weighted average maturity 5.92 years 6.5 years Number of contracts 92 95 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities by Contractual Maturity | The following is a schedule of the Company's operating lease liabilities by contractual maturity as of June 30, 2021: (In thousands) 2021 $ 2,694 2022 2,390 2023 1,891 2024 1,705 2025 1,121 Thereafter 2,638 Total lease payments 12,439 Less: imputed interest 2,537 Total present value of lease payments $ 9,902 |
Summary of Supplemental Cash Flow Information Related to Direct Finance and Operating Leases | The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the six months ended June 30, 2021 and 2020: For the Six Months Ended (In thousands) 2021 2020 Right-of-use asset obtained in exchange for lease obligation $ 1,412 $ 157 Operating cash flows from operating leases 1,226 1,446 Operating cash flows from direct finance leases 156 177 Financing cash flows from direct finance leases 374 374 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2020shares | Jun. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($)shares | Jun. 30, 2021USD ($)segment$ / sharesshares | Jun. 30, 2020USD ($)shares | Dec. 31, 2020USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of operating segments | segment | 2 | ||||||
Federal funds sales periods | 1 day | ||||||
Interest-earning deposits maturities period | 1 year | ||||||
Servicing rights | $ 0 | ||||||
Amount of loans serviced | $ 83,100,000 | $ 83,100,000 | $ 65,500,000 | ||||
Threshold period for loan | 30 days | ||||||
Threshold for determining nonaccrual status | 90 days | 90 days | |||||
Loan modifications | $ 946,800,000 | ||||||
Post-modification outstanding recorded investment | $ 3,139,000 | $ 139,000 | 3,139,000 | $ 436,000 | |||
Sale of loans servicing released to third party | $ 56,500,000 | $ 355,000,000 | $ 124,000,000 | ||||
Closing stock price of common stock | $ / shares | $ 31.07 | $ 31.07 | |||||
Stock options granted | shares | 0 | 0 | |||||
Issuance of shares for Employee Stock Purchase Plan, shares | shares | 6,347 | 46,935 | 14,772 | 46,935 | |||
Antidilutive securities | shares | 13,374 | 297,320 | 262,423 | 713,789 | |||
Restricted stock [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Shares granted | shares | 21,200 | 211,356 | |||||
Compensation cost | $ 1,800,000 | $ 1,700,000 | $ 3,500,000 | $ 3,300,000 | |||
Restricted stock [Member] | Tranche One [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Stock option vesting term | 3 years | ||||||
Restricted stock [Member] | Tranche Two [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Stock option vesting term | 5 years | ||||||
Performance Shares [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Shares granted | shares | 0 | 51,710 | |||||
Restricted Stock Units [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Unrecognized compensation cost | $ 16,100,000 | $ 16,100,000 | |||||
Weighted average period over which unrecognized compensation is expected to be recognized (in years) | 1 year 7 months 2 days | ||||||
Employee Stock [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Compensation cost | $ 26,000 | $ 149,000 | $ 56,000 | $ 190,000 | |||
Number of share purchase rights authorized | shares | 150,000 | 150,000 | |||||
Additional common stock to be issued | shares | 200,000 | ||||||
Share purchase rights offering period | 12 months | ||||||
Percentage of closing market price on purchase date | 85.00% | ||||||
Deferral [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Post-modification outstanding recorded investment | $ 36,700,000 | ||||||
U.S. Small Business Administration (SBA) Loans [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Paycheck Protection Program, maximum credit facility | $ 650,000,000 | 650,000,000 | |||||
Paycheck protection program loans remaining balance | $ 83,800,000 | $ 83,800,000 | |||||
Substandard [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Loan reserve multiple | 3.25 | 3.25 | 3.25 | ||||
Special Mention [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Loan reserve multiple | 2.25 | 2.25 | 2.25 | ||||
Consumer and Other [Member] | Closed-end Loans [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Threshold for determining nonaccrual status | 120 days | 120 days | |||||
Consumer and Other [Member] | Open-end Loans [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Threshold for determining nonaccrual status | 180 days | 180 days | |||||
Small Business Administration Loans [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Loans held for sale | $ 5,600,000 | $ 5,600,000 | $ 6,000,000 | ||||
Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash equivalents original maturities period | 90 days | ||||||
Short term borrowings original maturities period | 90 days | ||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||||
Maximum [Member] | Employee Stock Option [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Option term | 10 years | ||||||
Stock option vesting term | 5 years | ||||||
Maximum [Member] | Employee Stock [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of compensation contributable | 15.00% | ||||||
Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||
Minimum [Member] | Employee Stock [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of compensation contributable | 1.00% | ||||||
Peapack-Gladstone Mortgage Group, Inc. [Member] | Peapack Ventures, LLC [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of interest owned | 99.00% | 99.00% | |||||
Peapack-Gladstone Mortgage Group, Inc. [Member] | Peapack-Gladstone Realty, Inc [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of interest owned | 79.00% | 79.00% | |||||
PGB Trust & Investments of Delaware [Member] | Peapack Ventures, LLC [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of interest owned | 1.00% | 1.00% | |||||
Peapack Ventures, LLC [Member] | Peapack-Gladstone Realty, Inc [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of interest owned | 21.00% | 21.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Options Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021 | |
Number of Options | |
Balance | 50,660 |
Exercised | (2,820) |
Forfeited | (2,480) |
Balance | 45,360 |
Vested and expected to vest | 45,360 |
Exercisable | 45,360 |
Weighted Average Exercise Price | |
Balance | $ 13.59 |
Exercised | 12.42 |
Forfeited | 13.50 |
Balance | 13.67 |
Vested and expected to vest | 13.67 |
Exercisable | $ 13.67 |
Weighted Average Remaining Contractual Term | |
Balance | 1 year 2 months 15 days |
Vested and expected to vest | 1 year 2 months 15 days |
Exercisable | 1 year 2 months 15 days |
Aggregate Intrinsic Value | |
Balance | $ 789 |
Vested and expected to vest | 789 |
Exercisable | $ 789 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Restricted Common Shares) (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Performance Shares [Member] | ||
Number of Shares | ||
Balance at Beginning | 221,600 | |
Shares granted | 0 | 51,710 |
Vested | (36,032) | |
Forfeited | (11,843) | |
Balance at end | 225,435 | 225,435 |
Weighted Average Grant Date Fair Value | ||
Balance at Beginning | $ 20.47 | |
Granted | 31.36 | |
Vested | 35.33 | |
Forfeited | 26.32 | |
Balance at end | $ 20.29 | $ 20.29 |
Restricted stock [Member] | ||
Number of Shares | ||
Balance at Beginning | 777,166 | |
Shares granted | 21,200 | 211,356 |
Vested | (252,316) | |
Forfeited | (23,314) | |
Balance at end | 712,892 | 712,892 |
Weighted Average Grant Date Fair Value | ||
Balance at Beginning | $ 19.24 | |
Granted | 31.36 | |
Vested | 22.01 | |
Forfeited | 16.55 | |
Balance at end | $ 21.94 | $ 21.94 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Calculation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Net income available to common shareholders | $ 14,418 | $ 8,242 | $ 27,596 | $ 9,615 |
Basic weighted average shares outstanding | 18,963,237 | 18,872,070 | 18,956,807 | 18,865,206 |
Plus: common stock equivalents | 476,202 | 187,752 | 516,343 | 125,850 |
Diluted weighted average shares outstanding | 19,439,439 | 19,059,822 | 19,473,150 | 18,991,056 |
Net income per share | ||||
Basic | $ 0.76 | $ 0.44 | $ 1.46 | $ 0.51 |
Diluted | $ 0.74 | $ 0.43 | $ 1.42 | $ 0.51 |
INVESTMENT SECURITIES AVAILAB_3
INVESTMENT SECURITIES AVAILABLE FOR SALE (Schedule of Amortized Cost and Approximate Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 825,040 | $ 615,396 |
Gross Unrealized Gains | 6,874 | 8,768 |
Gross Unrealized Losses | (8,094) | (1,475) |
Fair Value | 823,820 | 622,689 |
U.S. Government-Sponsored Agencies [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 214,141 | 84,424 |
Gross Unrealized Gains | 15 | 2 |
Gross Unrealized Losses | (3,216) | (655) |
Fair Value | 210,940 | 83,771 |
Mortgage-Backed Securities-Residential [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 553,129 | 467,915 |
Gross Unrealized Gains | 6,613 | 8,604 |
Gross Unrealized Losses | (4,469) | (461) |
Fair Value | 555,273 | 476,058 |
SBA Pool Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 45,565 | 49,457 |
Gross Unrealized Gains | 112 | 31 |
Gross Unrealized Losses | (409) | (359) |
Fair Value | 45,268 | 49,129 |
State and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 6,705 | 7,987 |
Gross Unrealized Gains | 70 | 102 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 6,775 | 8,089 |
Corporate Bond [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 5,500 | 3,000 |
Gross Unrealized Gains | 64 | 29 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 5,564 | 3,029 |
U.S. Treasuries [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,613 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 2,613 |
INVESTMENT SECURITIES AVAILAB_4
INVESTMENT SECURITIES AVAILABLE FOR SALE (Schedule of Available for Sale Securities in Continuous Unrealized Loss Position and Approximate Fair Value of Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Approximate Fair Value | ||
Less Than 12 Months | $ 484,602 | $ 216,829 |
12 Months or Longer | 15,325 | 16,009 |
Total | 499,927 | 232,838 |
Unrealized Losses | ||
Less Than 12 Months | (7,917) | (1,428) |
12 Months or Longer | (177) | (47) |
Total | (8,094) | (1,475) |
U.S. Government-Sponsored Agencies [Member] | ||
Approximate Fair Value | ||
Less Than 12 Months | 171,484 | 73,769 |
12 Months or Longer | 0 | 0 |
Total | 171,484 | 73,769 |
Unrealized Losses | ||
Less Than 12 Months | (3,216) | (655) |
12 Months or Longer | 0 | 0 |
Total | (3,216) | (655) |
Mortgage-Backed Securities-Residential [Member] | ||
Approximate Fair Value | ||
Less Than 12 Months | 276,658 | 103,340 |
12 Months or Longer | 15,325 | 13,914 |
Total | 291,983 | 117,254 |
Unrealized Losses | ||
Less Than 12 Months | (4,292) | (430) |
12 Months or Longer | (177) | (31) |
Total | (4,469) | (461) |
SBA Pool Securities [Member] | ||
Approximate Fair Value | ||
Less Than 12 Months | 36,460 | 39,720 |
12 Months or Longer | 0 | 2,095 |
Total | 36,460 | 41,815 |
Unrealized Losses | ||
Less Than 12 Months | (409) | (343) |
12 Months or Longer | 0 | (16) |
Total | $ (409) | $ (359) |
INVESTMENT SECURITIES AVAILAB_5
INVESTMENT SECURITIES AVAILABLE FOR SALE - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | |||||
Investment with fair value classified as equity security | $ 14,894,000 | $ 14,894,000 | $ 15,117,000 | ||
Securities gains/(losses), net | 42,000 | $ 125,000 | (223,000) | $ 323,000 | |
CRA Investment Fund [Member] | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Investment with fair value classified as equity security | 14,900,000 | 14,900,000 | |||
Securities gains/(losses), net | $ 42,000 | $ (223,000) |
LOANS AND LEASES (Schedule of L
LOANS AND LEASES (Schedule of Loans Outstanding, by Type of Loan) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Total loans | $ 4,568,833 | $ 4,372,437 | |
Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 100.00% | 100.00% | |
Unallocated Financing Receivables [Member] | |||
Total loans | $ 206 | $ 226 | |
Unallocated Financing Receivables [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 0.00% | 0.01% | |
Residential Mortgage [Member] | Residential Portfolio Segment [Member] | |||
Total loans | $ 500,207 | $ 502,829 | |
Residential Mortgage [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 10.95% | 11.50% | |
Multifamily Property [Member] | Residential Portfolio Segment [Member] | |||
Total loans | $ 1,420,043 | $ 1,126,946 | |
Multifamily Property [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 31.08% | 25.77% | |
Commercial Mortgage [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Total loans | $ 702,777 | $ 691,294 | |
Commercial Mortgage [Member] | Commercial Real Estate Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 15.38% | 15.81% | |
Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Total loans | [1] | $ 1,846,728 | $ 1,950,981 |
Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | [1] | 40.42% | 44.62% |
Construction [Member] | Commercial Portfolio Segment [Member] | |||
Total loans | $ 22,923 | $ 12,600 | |
Construction [Member] | Commercial Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 0.50% | 0.29% | |
Home Equity Lines of Credit [Member] | Residential Portfolio Segment [Member] | |||
Total loans | $ 44,060 | $ 50,545 | |
Home Equity Lines of Credit [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 0.97% | 1.15% | |
Consumer Loans, Including Home Equity Loans [Member] | Consumer and Other Loans [Member] | |||
Total loans | $ 31,889 | $ 37,016 | |
Consumer Loans, Including Home Equity Loans [Member] | Consumer and Other Loans [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | |||
Total loans (in percent) | 0.70% | 0.85% | |
[1] | Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. |
LOANS AND LEASES (Schedule of_2
LOANS AND LEASES (Schedule of Loans Outstanding, by Type of Loan) (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans | $ 4,568,833 | $ 4,372,437 | |
Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans | [1] | 1,846,728 | 1,950,981 |
U.S. Small Business Administration (SBA) Loans [Member] | Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans | $ 84,000 | $ 196,000 | |
[1] | Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. |
LOANS AND LEASES (Schedule of_3
LOANS AND LEASES (Schedule of Loan Balances by Portfolio Class) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | ||||
Total loans | $ 4,564,563 | $ 4,369,573 | |||
Net deferred costs | 4,270 | 2,864 | |||
Total loans including net deferred costs | $ 4,568,833 | $ 4,372,437 | |||
Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 100.00% | 100.00% | |||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||||
Total loans | $ 508,413 | $ 512,841 | |||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 11.14% | 11.74% | |||
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | |||||
Total loans | $ 44,060 | $ 50,545 | |||
Total loans including net deferred costs | $ 44,060 | $ 50,545 | |||
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 0.96% | 1.16% | |||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||||
Total loans | $ 1,420,043 | $ 1,126,946 | |||
Total loans including net deferred costs | $ 1,420,043 | $ 1,126,946 | |||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 31.11% | 25.79% | |||
Residential Portfolio Segment [Member] | Junior Lien [Member] | |||||
Total loans | $ 3,580 | $ 4,527 | |||
Residential Portfolio Segment [Member] | Junior Lien [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 0.08% | 0.10% | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||||
Total loans | $ 243,626 | $ 253,447 | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 5.34% | 5.80% | |||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||||
Total loans | $ 987,889 | $ 995,613 | |||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 21.64% | 22.79% | |||
Commercial Portfolio Segment [Member] | Construction [Member] | |||||
Total loans | $ 23,081 | $ 12,773 | |||
Total loans including net deferred costs | $ 22,923 | $ 12,600 | |||
Commercial Portfolio Segment [Member] | Construction [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 0.51% | 0.29% | |||
Consumer and Other Loans [Member] | |||||
Total loans | $ 38,768 | $ 44,483 | |||
Consumer and Other Loans [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 0.85% | 1.02% | |||
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | |||||
Total loans | [2] | $ 999,316 | [1] | $ 1,059,399 | [3] |
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | [2] | 21.89% | 24.24% | ||
Lease Financing [Member] | |||||
Total loans | $ 292,463 | $ 305,931 | |||
Lease Financing [Member] | Commercial Portfolio Segment [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 6.41% | 7.00% | |||
Agricultural Sector [Member] | |||||
Total loans | $ 3,324 | $ 3,068 | |||
Agricultural Sector [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | |||||
Total loans (in percent) | 0.07% | 0.07% | |||
[1] | The balance includes PPP loans of $84 million which had no related reserve as these loans are guaranteed by the SBA | ||||
[2] | Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. | ||||
[3] | The balance includes PPP loans of $196 million which had no related reserve as these loans are guaranteed by the SBA. |
LOANS AND LEASES (Schedule of_4
LOANS AND LEASES (Schedule of Loan Balances by Portfolio Class) (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 4,568,833 | $ 4,372,437 |
U.S. Small Business Administration (SBA) Loans [Member] | Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 84,000 | $ 196,000 |
LOANS AND LEASES (Schedule of B
LOANS AND LEASES (Schedule of Balances by Portfolio Class, Based on Impairment Method) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||
Total Loans Individually Evaluated for Impairment | $ 6,498 | $ 16,204 | |||||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 57 | 2,703 | |||||||
Total Loans Collectively Evaluated for Impairment | 4,558,065 | 4,353,369 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 63,448 | 64,606 | |||||||
Total Loans | 4,564,563 | 4,369,573 | |||||||
Total Ending ALLL | 63,505 | $ 67,536 | 67,309 | $ 66,065 | $ 63,783 | $ 43,676 | |||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||||||||
Total Loans Individually Evaluated for Impairment | 2,711 | 1,490 | |||||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 57 | 3 | |||||||
Total Loans Collectively Evaluated for Impairment | 505,702 | 511,351 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 2,110 | 2,902 | |||||||
Total Loans | 508,413 | 512,841 | |||||||
Total Ending ALLL | 2,167 | 2,776 | 2,905 | 3,074 | 3,173 | 2,090 | |||
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | |||||||||
Total Loans Collectively Evaluated for Impairment | 44,060 | 50,545 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 123 | 218 | |||||||
Total Loans | 44,060 | 50,545 | |||||||
Total Ending ALLL | 123 | 198 | 218 | 244 | 237 | 128 | |||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||||||||
Total Loans Collectively Evaluated for Impairment | 1,420,043 | 1,126,946 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 10,615 | 9,945 | |||||||
Total Loans | 1,420,043 | 1,126,946 | |||||||
Total Ending ALLL | 10,615 | 10,427 | 9,945 | 9,662 | 9,104 | 6,037 | |||
Residential Portfolio Segment [Member] | Junior Lien [Member] | |||||||||
Total Loans Collectively Evaluated for Impairment | 3,580 | 4,527 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 8 | 15 | |||||||
Total Loans | 3,580 | 4,527 | |||||||
Total Ending ALLL | 8 | 16 | 15 | 20 | 23 | 13 | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||||||||
Total Loans Individually Evaluated for Impairment | 529 | 807 | |||||||
Total Loans Collectively Evaluated for Impairment | 243,097 | 252,640 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 2,447 | 3,050 | |||||||
Total Loans | 243,626 | 253,447 | |||||||
Total Ending ALLL | 2,447 | 2,864 | 3,050 | 3,177 | 2,838 | 2,064 | |||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||||||||
Total Loans Individually Evaluated for Impairment | 4,593 | ||||||||
Total Loans Collectively Evaluated for Impairment | 987,889 | 991,020 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 27,886 | 27,713 | |||||||
Total Loans | 987,889 | 995,613 | |||||||
Total Ending ALLL | 27,886 | 26,693 | 27,713 | 29,866 | 27,671 | 15,988 | |||
Commercial Portfolio Segment [Member] | Construction [Member] | |||||||||
Total Loans Collectively Evaluated for Impairment | 23,081 | 12,773 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 159 | 158 | |||||||
Total Loans | 23,081 | 12,773 | |||||||
Total Ending ALLL | 159 | 161 | 158 | 49 | 40 | 27 | |||
Consumer and Other Loans [Member] | |||||||||
Total Loans Collectively Evaluated for Impairment | 38,768 | 44,483 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 217 | 279 | |||||||
Total Loans | 38,768 | 44,483 | |||||||
Total Ending ALLL | 217 | 262 | 279 | 368 | 394 | 296 | |||
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | |||||||||
Total Loans Individually Evaluated for Impairment | 3,258 | [1] | 9,314 | [2] | |||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | [2] | 2,700 | |||||||
Total Loans Collectively Evaluated for Impairment | 996,058 | [1] | 1,050,085 | [2] | |||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 16,565 | [1] | 16,347 | [2] | |||||
Total Loans | [3] | 999,316 | [1] | 1,059,399 | [2] | ||||
Total Ending ALLL | 16,565 | [1] | 20,125 | 19,047 | [2] | 16,218 | 17,124 | 14,353 | |
Lease Financing [Member] | |||||||||
Total Loans Collectively Evaluated for Impairment | 292,463 | 305,931 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 3,275 | 3,936 | |||||||
Total Loans | 292,463 | 305,931 | |||||||
Total Ending ALLL | 3,275 | 3,936 | |||||||
Agricultural Sector [Member] | |||||||||
Total Loans Collectively Evaluated for Impairment | 3,324 | 3,068 | |||||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 43 | 43 | |||||||
Total Loans | 3,324 | 3,068 | |||||||
Total Ending ALLL | $ 43 | $ 47 | $ 43 | $ 38 | $ 38 | $ 38 | |||
[1] | The balance includes PPP loans of $84 million which had no related reserve as these loans are guaranteed by the SBA | ||||||||
[2] | The balance includes PPP loans of $196 million which had no related reserve as these loans are guaranteed by the SBA. | ||||||||
[3] | Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. |
LOANS AND LEASES - (Schedule of
LOANS AND LEASES - (Schedule of Balances by Portfolio Class, Based on Impairment Method) (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 4,568,833 | $ 4,372,437 |
U.S. Small Business Administration (SBA) Loans [Member] | Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 84,000 | $ 196,000 |
LOANS AND LEASES - Additional I
LOANS AND LEASES - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)Contract | Jun. 30, 2020USD ($)Contract | Jun. 30, 2021USD ($)Contract | Jun. 30, 2020USD ($)Contract | Dec. 31, 2020USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Impaired non-accrual loans | $ 5,962,000 | $ 5,962,000 | $ 11,410,000 | ||
Impaired non-accrual loans performing troubled debt restructured | 190,000 | 190,000 | 201,000 | ||
Allowance allocated to troubled debt restructured loans | 57,000 | 57,000 | 3,000 | ||
Allowance allocated to non accrual loans | 0 | 0 | |||
Loan receivable, validate risk ratings performed for large sample or new lending to existing relationships | 1,000,000 | 1,000,000 | |||
Loan receivable, validate risk ratings performed for criticized and classified rated borrowers with relationship exposure, value | 500,000 | 500,000 | |||
Loan receivable, validate risk ratings performed for new regulation "O" loan commitments, value | 1,000,000 | 1,000,000 | |||
Loan receivable validate risk ratings performed for leveraged loans, value | 1,000,000 | 1,000,000 | |||
Loan receivable validate risk ratings performed for no borrower with commitments, value | $ 500,000 | $ 500,000 | |||
Bank modified loans and contracts | Contract | 2 | 1 | 2 | 3 | |
Post-modification outstanding recorded investment | $ 3,139,000 | $ 139,000 | $ 3,139,000 | $ 436,000 | |
Loan modifications | 946,800,000 | ||||
Troubled debt restructurings specific reserves | 57,000 | $ 57,000 | 3,000 | ||
Deferral [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Bank modified loans and contracts | Contract | 541 | ||||
Bank modified loans and contracts | Contract | 14 | ||||
Post-modification outstanding recorded investment | $ 36,700,000 | ||||
Deferral [Member] | Loan Level Swaps [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Bank modified loans and contracts | Contract | 1 | ||||
Post-modification outstanding recorded investment | $ 19,900,000 | ||||
Substandard [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Financing receivable impaired loan | 6,500,000 | $ 16,200,000 | |||
Minimum [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan receivable, validate risk ratings performed for large sample of borrowers with relationship, value | 1,000,000 | 1,000,000 | |||
Maximum [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan receivable, validate risk ratings performed for small sample of borrowers with relationship, value | $ 1,000,000 | $ 1,000,000 |
LOANS AND LEASES (Schedule of_5
LOANS AND LEASES (Schedule of Loans Individually Evaluated for Impairment) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Unpaid Principal Balance | ||
With no related allowance recorded | $ 7,719 | $ 14,148 |
With related allowance recorded | 822 | 5,162 |
Total loans individually evaluated for impairment | 8,541 | 19,310 |
Recorded Investment | ||
With no related allowance recorded | 5,676 | 11,042 |
With related allowance recorded | 822 | 5,162 |
Total loans individually evaluated for impairment | 6,498 | 16,204 |
Specific Reserves | 57 | 2,703 |
Average Impaired Loans | ||
With no related allowance recorded | 5,740 | 14,319 |
With related allowance recorded | 271 | 4,666 |
Total loans individually evaluated for impairment | 6,011 | 18,985 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 2,078 | 1,601 |
With related allowance recorded | 822 | 162 |
Recorded Investment | ||
With no related allowance recorded | 1,889 | 1,328 |
With related allowance recorded | 822 | 162 |
Specific Reserves | 57 | 3 |
Average Impaired Loans | ||
With no related allowance recorded | 1,785 | 5,544 |
With related allowance recorded | 271 | 526 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 550 | 817 |
Recorded Investment | ||
With no related allowance recorded | 529 | 807 |
Average Impaired Loans | ||
With no related allowance recorded | 593 | 516 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 4,593 | |
Recorded Investment | ||
With no related allowance recorded | 4,593 | |
Average Impaired Loans | ||
With no related allowance recorded | 6,582 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 5,091 | 7,137 |
With related allowance recorded | 5,000 | |
Recorded Investment | ||
With no related allowance recorded | 3,258 | 4,314 |
With related allowance recorded | 5,000 | |
Specific Reserves | 2,700 | |
Average Impaired Loans | ||
With no related allowance recorded | $ 3,362 | 1,677 |
With related allowance recorded | $ 4,140 |
LOANS AND LEASES (Schedule of I
LOANS AND LEASES (Schedule of Investment in Nonaccrual and Loans Past Due Over 90 Days) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Impaired non-accrual loans | $ 5,962 | $ 11,410 |
Loans Past Due 90 Days or Over And Still Accruing Interest | 0 | 0 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Impaired non-accrual loans | 2,206 | 1,328 |
Loans Past Due 90 Days or Over And Still Accruing Interest | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Impaired non-accrual loans | 529 | 807 |
Loans Past Due 90 Days or Over And Still Accruing Interest | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Impaired non-accrual loans | 3,227 | 9,275 |
Loans Past Due 90 Days or Over And Still Accruing Interest | $ 0 | $ 0 |
LOANS AND LEASES (Schedule of A
LOANS AND LEASES (Schedule of Aging of Past Due Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Total Past Due | $ 1,678 | $ 5,053 |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Total Past Due | 25 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total Past Due | 592 | 3,041 |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Total Past Due | 181 | |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||
Total Past Due | 269 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Total Past Due | 1,086 | 1,269 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total Past Due | 268 | |
30 to 59 Days Past Due [Member] | ||
Total Past Due | 1,449 | 3,846 |
30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total Past Due | 503 | 2,900 |
30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Total Past Due | 181 | |
30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Total Past Due | 946 | 497 |
30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total Past Due | 268 | |
60 to 89 Days Past Due [Member] | ||
Total Past Due | 229 | 1,207 |
60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Total Past Due | 25 | |
60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total Past Due | 89 | 141 |
60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||
Total Past Due | 269 | |
60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Total Past Due | 140 | 772 |
90 Days or Greater [Member] | ||
Total Past Due | 0 | 0 |
90 Days or Greater [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total Past Due | $ 0 | $ 0 |
LOANS AND LEASES (Schedule of R
LOANS AND LEASES (Schedule of Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |||
Total loans | $ 4,564,563 | $ 4,369,573 | |||
Lease Financing [Member] | |||||
Total loans | 292,463 | 305,931 | |||
Agricultural Sector [Member] | |||||
Total loans | 3,324 | 3,068 | |||
Residential Portfolio Segment [Member] | Junior Lien [Member] | |||||
Total loans | 3,580 | 4,527 | |||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||||
Total loans | 508,413 | 512,841 | |||
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | |||||
Total loans | 44,060 | 50,545 | |||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||||
Total loans | 1,420,043 | 1,126,946 | |||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||||
Total loans | 987,889 | 995,613 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | |||||
Total loans | [2] | 999,316 | [1] | 1,059,399 | [3] |
Commercial Portfolio Segment [Member] | Construction [Member] | |||||
Total loans | 23,081 | 12,773 | |||
Consumer and Other Loans [Member] | |||||
Total loans | 38,768 | 44,483 | |||
Pass [Member] | |||||
Total loans | 4,404,784 | 4,169,699 | |||
Pass [Member] | Lease Financing [Member] | |||||
Total loans | 292,463 | 305,931 | |||
Pass [Member] | Agricultural Sector [Member] | |||||
Total loans | 3,324 | 3,068 | |||
Pass [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member] | |||||
Total loans | 3,562 | 4,483 | |||
Pass [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||||
Total loans | 500,297 | 504,795 | |||
Pass [Member] | Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | |||||
Total loans | 43,594 | 50,068 | |||
Pass [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||||
Total loans | 1,415,514 | 1,121,145 | |||
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||||
Total loans | 234,654 | 240,638 | |||
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||||
Total loans | 888,789 | 893,115 | |||
Pass [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | |||||
Total loans | 960,816 | 989,281 | |||
Pass [Member] | Commercial Portfolio Segment [Member] | Construction [Member] | |||||
Total loans | 23,003 | 12,692 | |||
Pass [Member] | Consumer and Other Loans [Member] | |||||
Total loans | 38,768 | 44,483 | |||
Special Mention [Member] | |||||
Total loans | 148,601 | 162,103 | |||
Special Mention [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||||
Total loans | 1,818 | 1,398 | |||
Special Mention [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||||
Total loans | 4,181 | 5,441 | |||
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||||
Total loans | 8,182 | 10,417 | |||
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||||
Total loans | 99,100 | 91,162 | |||
Special Mention [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | |||||
Total loans | 35,242 | 53,604 | |||
Special Mention [Member] | Commercial Portfolio Segment [Member] | Construction [Member] | |||||
Total loans | 78 | 81 | |||
Substandard [Member] | |||||
Total loans | 11,178 | 37,771 | |||
Substandard [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member] | |||||
Total loans | 18 | 44 | |||
Substandard [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||||
Total loans | 6,298 | 6,648 | |||
Substandard [Member] | Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | |||||
Total loans | 466 | 477 | |||
Substandard [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | |||||
Total loans | 348 | 360 | |||
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | |||||
Total loans | 790 | 2,392 | |||
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | |||||
Total loans | 11,336 | ||||
Substandard [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | |||||
Total loans | $ 3,258 | $ 16,514 | |||
[1] | The balance includes PPP loans of $84 million which had no related reserve as these loans are guaranteed by the SBA | ||||
[2] | Includes PPP loans of $84 million at June 30, 2021 and $196 million at December 31, 2020. | ||||
[3] | The balance includes PPP loans of $196 million which had no related reserve as these loans are guaranteed by the SBA. |
LOANS AND LEASES (Schedule of_6
LOANS AND LEASES (Schedule of Activity in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Allowance for loan losses | ||||||
Beginning ALLL | $ 67,536 | $ 63,783 | $ 67,309 | $ 43,676 | ||
Charge-Offs | (5,017) | (2,659) | (5,032) | (2,667) | ||
Recoveries | 86 | 41 | 103 | 156 | ||
Provision (Credit) | 900 | 4,900 | 1,125 | 24,900 | ||
Ending ALLL | 63,505 | 66,065 | 63,505 | 66,065 | ||
Agricultural Sector [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 47 | 38 | 43 | 38 | ||
Provision (Credit) | (4) | |||||
Ending ALLL | 43 | 38 | 43 | 38 | ||
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 16 | 23 | 15 | 13 | ||
Provision (Credit) | (8) | (3) | (7) | 7 | ||
Ending ALLL | 8 | 20 | 8 | 20 | ||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 2,776 | 3,173 | 2,905 | 2,090 | ||
Charge-Offs | (12) | (12) | ||||
Recoveries | 36 | 113 | ||||
Provision (Credit) | (597) | (135) | (726) | 871 | ||
Ending ALLL | 2,167 | 3,074 | 2,167 | 3,074 | ||
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 198 | 237 | 218 | 128 | ||
Recoveries | 76 | 2 | 85 | 5 | ||
Provision (Credit) | (151) | 5 | (180) | 111 | ||
Ending ALLL | 123 | 244 | 123 | 244 | ||
Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 10,427 | 9,104 | 9,945 | 6,037 | ||
Provision (Credit) | 188 | 558 | 670 | 3,625 | ||
Ending ALLL | 10,615 | 9,662 | 10,615 | 9,662 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 2,864 | 2,838 | 3,050 | 2,064 | ||
Provision (Credit) | (417) | 339 | (603) | 1,113 | ||
Ending ALLL | 2,447 | 3,177 | 2,447 | 3,177 | ||
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 26,693 | 27,671 | 27,713 | 15,988 | ||
Charge-Offs | (400) | (400) | ||||
Recoveries | 31 | |||||
Provision (Credit) | 1,193 | 2,595 | 173 | 14,247 | ||
Ending ALLL | 27,886 | 29,866 | 27,886 | 29,866 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 20,125 | 17,124 | 19,047 | [1] | 14,353 | |
Charge-Offs | (5,000) | (2,254) | (5,000) | (2,254) | ||
Recoveries | 3 | 2 | 10 | 5 | ||
Provision (Credit) | 1,437 | 1,346 | 2,508 | 4,114 | ||
Ending ALLL | 16,565 | [2] | 16,218 | 16,565 | [2] | 16,218 |
Commercial Portfolio Segment [Member] | Lease Financing [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 3,967 | 3,141 | 3,936 | 2,642 | ||
Provision (Credit) | (692) | 208 | (661) | 707 | ||
Ending ALLL | 3,275 | 3,349 | 3,275 | 3,349 | ||
Commercial Portfolio Segment [Member] | Construction [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 161 | 40 | 158 | 27 | ||
Provision (Credit) | (2) | 9 | 1 | 22 | ||
Ending ALLL | 159 | 49 | 159 | 49 | ||
Consumer and Other Loans [Member] | ||||||
Allowance for loan losses | ||||||
Beginning ALLL | 262 | 394 | 279 | 296 | ||
Charge-Offs | (5) | (5) | (20) | (13) | ||
Recoveries | 7 | 1 | 8 | 2 | ||
Provision (Credit) | (47) | (22) | (50) | 83 | ||
Ending ALLL | $ 217 | $ 368 | $ 217 | $ 368 | ||
[1] | The balance includes PPP loans of $196 million which had no related reserve as these loans are guaranteed by the SBA. | |||||
[2] | The balance includes PPP loans of $84 million which had no related reserve as these loans are guaranteed by the SBA |
LOANS AND LEASES (Schedule of_7
LOANS AND LEASES (Schedule of Loan Modifications) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)Contract | Jun. 30, 2020USD ($)Contract | Jun. 30, 2021USD ($)Contract | Jun. 30, 2020USD ($)Contract | |
Number of Loans | Contract | 2 | 1 | 2 | 3 |
Post-Modification Outstanding Recorded Investment | $ | $ 3,139 | $ 139 | $ 3,139 | $ 436 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||||
Number of Loans | Contract | 1 | 1 | 1 | 2 |
Post-Modification Outstanding Recorded Investment | $ | $ 822 | $ 139 | $ 822 | $ 391 |
Deferral [Member] | ||||
Number of Loans | Contract | 14 | |||
Post-Modification Outstanding Recorded Investment | $ | $ 36,700 | |||
Deferral [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member] | ||||
Number of Loans | Contract | 1 | |||
Post-Modification Outstanding Recorded Investment | $ | $ 19 | |||
Deferral [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||||
Number of Loans | Contract | 6 | |||
Post-Modification Outstanding Recorded Investment | $ | $ 2,065 | |||
Deferral [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||||
Number of Loans | Contract | 1 | |||
Post-Modification Outstanding Recorded Investment | $ | $ 117 | |||
Deferral [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||||
Number of Loans | Contract | 1 | |||
Post-Modification Outstanding Recorded Investment | $ | $ 19,887 | |||
Deferral [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||||
Number of Loans | Contract | 4 | |||
Post-Modification Outstanding Recorded Investment | $ | $ 12,656 | |||
Deferral [Member] | Commercial Portfolio Segment [Member] | Construction [Member] | ||||
Number of Loans | Contract | 1 | |||
Post-Modification Outstanding Recorded Investment | $ | $ 1,956 |
LOANS AND LEASES (Schedule of_8
LOANS AND LEASES (Schedule of Loans Modified as Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)Contract | Jun. 30, 2020USD ($)Contract | Jun. 30, 2021USD ($)Contract | Jun. 30, 2020USD ($)Contract | |
Number of Loans | Contract | 2 | 1 | 2 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 3,139 | $ 139 | $ 3,139 | $ 436 |
Post-Modification Outstanding Recorded Investment | $ 3,139 | $ 139 | $ 3,139 | $ 436 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||||
Number of Loans | Contract | 1 | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 2,317 | $ 2,317 | $ 45 | |
Post-Modification Outstanding Recorded Investment | $ 2,317 | $ 2,317 | $ 45 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||||
Number of Loans | Contract | 1 | 1 | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 822 | $ 139 | $ 822 | $ 391 |
Post-Modification Outstanding Recorded Investment | $ 822 | $ 139 | $ 822 | $ 391 |
LOANS AND LEASES (Schedule of M
LOANS AND LEASES (Schedule of Modified as Troubled Debt Restructurings Subsequently Defaulted) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)Contract | |
Number of Subsequently Defaulted Loans | Contract | 2 |
Subsequently Defaulted Recorded Investment | $ | $ 245 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | |
Number of Subsequently Defaulted Loans | Contract | 1 |
Subsequently Defaulted Recorded Investment | $ | $ 45 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |
Number of Subsequently Defaulted Loans | Contract | 1 |
Subsequently Defaulted Recorded Investment | $ | $ 200 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Time deposits over $250,000 | $ 157,000 | $ 186,300 |
DEPOSITS (Schedule of Details o
DEPOSITS (Schedule of Details of Total Deposits) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Deposits: | |||
Noninterest-bearing demand deposits | $ 959,494 | $ 833,500 | |
Interest-bearing checking | [1] | 1,978,497 | 1,849,254 |
Savings | 147,227 | 130,731 | |
Money market | 1,213,992 | 1,298,885 | |
Certificates of deposit - retail | 446,143 | 530,222 | |
Certificates of deposit - listing service | 31,631 | 32,128 | |
Subtotal deposits | 4,776,984 | 4,674,720 | |
Interest-bearing demand - Brokered | 85,000 | 110,000 | |
Certificates of deposit - Brokered | 33,791 | 33,764 | |
Total deposits | $ 4,895,775 | $ 4,818,484 | |
% | |||
Noninterest-bearing demand deposits | 19.60% | 17.30% | |
Interest-bearing checking | [1] | 40.41% | 38.38% |
Savings | 3.01% | 2.71% | |
Money market | 24.80% | 26.96% | |
Certificates of deposit - retail | 9.11% | 11.00% | |
Certificates of deposit - listing service | 0.64% | 0.67% | |
Subtotal deposits | 97.57% | 97.02% | |
Interest-bearing demand - Brokered | 1.74% | 2.28% | |
Certificates of deposit - Brokered | 0.69% | 0.70% | |
Total deposits | 100.00% | 100.00% | |
[1] | Interest-bearing checking includes |
DEPOSITS (Details of Total Depo
DEPOSITS (Details of Total Deposits) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits: | ||
Reciprocal balances | $ 668.1 | $ 652.5 |
DEPOSITS (Scheduled Maturities
DEPOSITS (Scheduled Maturities of Time Deposits) (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Scheduled maturities of time deposits | |
2021 | $ 237,388 |
2022 | 197,419 |
2023 | 13,030 |
2024 | 28,030 |
2025 | 29,167 |
Over 5 Years | 6,531 |
Total | $ 511,565 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Overnight borrowings with FHLB | $ 15,000 | |
Unused commitments from FHLB | $ 1,700,000 | |
Unused short-term or overnight borrowings from correspondent banks | 22,000 | |
Unused short-term or overnight borrowings from FRB | 1,000,000 | |
Borrowings from the federal reserve’s PPPLF | $ 83,586 | 177,086 |
Paycheck protection program liquidity facility interest rate | 0.35% | |
Paycheck protection program liquidity facility term | 2 years | |
Prepaid FHLB advances | 105,000 | |
FHLB prepayment penalty | 4,800 | |
Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Notional amount | $ 15,000 | |
FHLB advance | 15,000 | |
Federal Reserve Bank of New York [Member] | ||
Debt Instrument [Line Items] | ||
Overnight borrowings with FHLB | $ 0 | $ 0 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($) | Jun. 30, 2021segment | Jun. 30, 2020USD ($) | |
Number of Operating Segments | segment | 2 | ||
Banking [Member] | |||
Federal income tax benefit | $ | $ 3.3 | $ 3.3 |
BUSINESS SEGMENTS - Schedule of
BUSINESS SEGMENTS - Schedule of Income and Total Assets for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Net interest income | $ 33,845 | $ 31,971 | $ 65,638 | $ 63,718 | |
Noninterest income | 17,678 | 12,626 | 35,498 | 27,143 | |
Total income | 51,523 | 44,597 | 101,136 | 90,861 | |
Provision for loan and lease losses | 900 | 4,900 | 1,125 | 24,900 | |
Compensation and benefits | 19,910 | 19,186 | 41,900 | 38,412 | |
Premises and equipment expense | 4,074 | 4,036 | 8,187 | 8,079 | |
FDIC expense | 529 | 455 | 1,114 | 705 | |
Other operating expense | 6,171 | 5,337 | 11,077 | 10,053 | |
Total operating expense | 31,584 | 33,914 | 63,403 | 82,149 | |
Income before income tax (benefit)/expense | 19,939 | 10,683 | 37,733 | 8,712 | |
Income tax expense/(benefit) | 5,521 | 2,441 | 10,137 | (903) | |
NET INCOME | 14,418 | 8,242 | 27,596 | 9,615 | |
Total assets at period end | 5,791,688 | 6,281,215 | 5,791,688 | 6,281,215 | $ 5,890,442 |
Banking [Member] | |||||
Net interest income | 32,399 | 30,453 | 62,625 | 60,862 | |
Noninterest income | 4,194 | 2,356 | 9,334 | 6,585 | |
Total income | 36,593 | 32,809 | 71,959 | 67,447 | |
Provision for loan and lease losses | 900 | 4,900 | 1,125 | 24,900 | |
Compensation and benefits | 14,369 | 13,774 | 30,797 | 26,981 | |
Premises and equipment expense | 3,519 | 3,487 | 7,089 | 6,908 | |
FDIC expense | 529 | 455 | 1,114 | 705 | |
Other operating expense | 3,817 | 3,052 | 6,208 | 5,658 | |
Total operating expense | 23,134 | 25,668 | 46,333 | 65,152 | |
Income before income tax (benefit)/expense | 13,459 | 7,141 | 25,626 | 2,295 | |
Income tax expense/(benefit) | 3,721 | 1,257 | 6,880 | (2,636) | |
NET INCOME | 9,738 | 5,884 | 18,746 | 4,931 | |
Total assets at period end | 5,700,105 | 6,203,441 | 5,700,105 | 6,203,441 | |
Peapack Private [Member] | |||||
Net interest income | 1,446 | 1,518 | 3,013 | 2,856 | |
Noninterest income | 13,484 | 10,270 | 26,164 | 20,558 | |
Total income | 14,930 | 11,788 | 29,177 | 23,414 | |
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |
Compensation and benefits | 5,541 | 5,412 | 11,103 | 11,431 | |
Premises and equipment expense | 555 | 549 | 1,098 | 1,171 | |
FDIC expense | 0 | 0 | 0 | 0 | |
Other operating expense | 2,354 | 2,285 | 4,869 | 4,395 | |
Total operating expense | 8,450 | 8,246 | 17,070 | 16,997 | |
Income before income tax (benefit)/expense | 6,480 | 3,542 | 12,107 | 6,417 | |
Income tax expense/(benefit) | 1,800 | 1,184 | 3,257 | 1,733 | |
NET INCOME | 4,680 | 2,358 | 8,850 | 4,684 | |
Total assets at period end | $ 91,583 | $ 77,774 | $ 91,583 | $ 77,774 |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value transfers between level 1 and level 2 | $ 0 |
Loans Receivable [Member] | Property A [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Discount rate | 15.00% |
Age of appraisal | 12 months |
FAIR VALUE (Schedule of Assets
FAIR VALUE (Schedule of Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Securities available for sale | $ 823,820 | $ 622,689 |
Loans held for sale, at fair value | 3,974 | 13,588 |
Recurring Basis [Member] | ||
Loans held for sale, at fair value | 3,974 | 13,588 |
Total | 894,543 | 730,923 |
Derivatives | 58,058 | 89,145 |
Recurring Basis [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives | 6,203 | 9,616 |
Recurring Basis [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives | 51,855 | 79,529 |
Derivatives | 51,855 | 79,529 |
Recurring Basis [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | ||
Total | 14,894 | 15,117 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Loans held for sale, at fair value | 3,974 | 13,588 |
Total | 879,649 | 715,806 |
Derivatives | 58,058 | 89,145 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives | 6,203 | 9,616 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives | 51,855 | 79,529 |
Derivatives | 51,855 | 79,529 |
U.S. Treasuries [Member] | ||
Securities available for sale | 2,613 | |
U.S. Treasuries [Member] | Recurring Basis [Member] | ||
Securities available for sale | 2,613 | |
U.S. Treasuries [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 2,613 | |
U.S. Government-Sponsored Agencies [Member] | ||
Securities available for sale | 210,940 | 83,771 |
U.S. Government-Sponsored Agencies [Member] | Recurring Basis [Member] | ||
Securities available for sale | 210,940 | 83,771 |
U.S. Government-Sponsored Agencies [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 210,940 | 83,771 |
Mortgage-Backed Securities-Residential [Member] | ||
Securities available for sale | 555,273 | 476,058 |
Mortgage-Backed Securities-Residential [Member] | Recurring Basis [Member] | ||
Securities available for sale | 555,273 | 476,058 |
Mortgage-Backed Securities-Residential [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 555,273 | 476,058 |
SBA Pool Securities [Member] | ||
Securities available for sale | 45,268 | 49,129 |
SBA Pool Securities [Member] | Recurring Basis [Member] | ||
Securities available for sale | 45,268 | 49,129 |
SBA Pool Securities [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 45,268 | 49,129 |
State and Political Subdivisions [Member] | ||
Securities available for sale | 6,775 | 8,089 |
State and Political Subdivisions [Member] | Recurring Basis [Member] | ||
Securities available for sale | 6,775 | 8,089 |
State and Political Subdivisions [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 6,775 | 8,089 |
Corporate Bond [Member] | ||
Securities available for sale | 5,564 | 3,029 |
Corporate Bond [Member] | Recurring Basis [Member] | ||
Securities available for sale | 5,564 | 3,029 |
Corporate Bond [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 5,564 | 3,029 |
CRA Investment Fund [Member] | Recurring Basis [Member] | ||
Securities available for sale | 14,894 | 15,117 |
CRA Investment Fund [Member] | Recurring Basis [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | ||
Securities available for sale | $ 14,894 | $ 15,117 |
FAIR VALUE (Schedule of Residen
FAIR VALUE (Schedule of Residential Loans Held for Sale, at Fair Value) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Residential loans contractual balance | $ 3,911 | $ 13,295 |
Fair value adjustment | 63 | 293 |
Total fair value of residential loans held for sale | $ 3,974 | $ 13,588 |
FAIR VALUE (Schedule of Asset_2
FAIR VALUE (Schedule of Assets Measured on a Non-Recurring Basis) (Details) - Non-Recurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Impaired loans | $ 765 | |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Impaired loans | $ 765 | |
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||
Impaired loans | $ 2,300 | |
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Impaired loans | $ 2,300 |
FAIR VALUE (Schedule of Financi
FAIR VALUE (Schedule of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Financial Assets: | |||
Securities available for sale | $ 823,820 | $ 622,689 | |
FHLB and FRB stock | 12,901 | 13,709 | |
Loans held for sale, at fair value | 3,974 | 13,588 | |
Loans held for sale, at lower of cost or fair value | 11,179 | 18,520 | |
Accrued interest receivable | 23,117 | 22,495 | |
Financial Liabilities: | |||
Short-term borrowings | 15,000 | ||
Paycheck Protection Program Liquidity Facility | 83,586 | 177,086 | |
Carrying Value [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 203,462 | 653,322 | |
Securities available for sale | 823,820 | 622,689 | |
CRA investment fund | 14,894 | 15,117 | |
FHLB and FRB stock | 12,901 | 13,709 | |
Loans held for sale, at fair value | 3,974 | 13,588 | |
Loans held for sale, at lower of cost or fair value | 11,179 | 18,520 | |
Loans, net of allowance for loan and lease losses | 4,505,328 | 4,305,128 | |
Accrued interest receivable | 23,117 | 22,495 | |
Financial Liabilities: | |||
Deposits | 4,895,775 | 4,818,484 | |
Short-term borrowings | 15,000 | ||
Paycheck Protection Program Liquidity Facility | 83,586 | 177,086 | |
Subordinated debt | 132,557 | 181,794 | |
Accrued interest payable | 1,028 | 1,650 | |
Carrying Value [Member] | Designated as Hedging Instrument [Member] | |||
Financial Liabilities: | |||
Derivatives | 6,203 | 9,616 | |
Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | |||
Financial Assets: | |||
Accrued interest receivable | [1] | 4,716 | |
Derivatives | 51,855 | 79,529 | |
Financial Liabilities: | |||
Accrued interest payable | 4,716 | ||
Derivatives | 51,855 | 79,529 | |
Fair value [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 203,462 | 653,322 | |
Securities available for sale | 823,820 | 622,689 | |
CRA investment fund | 14,894 | 15,117 | |
Loans held for sale, at fair value | 3,974 | 13,588 | |
Loans held for sale, at lower of cost or fair value | 11,844 | 19,115 | |
Loans, net of allowance for loan and lease losses | 4,697,207 | 4,462,243 | |
Accrued interest receivable | 23,117 | 22,495 | |
Financial Liabilities: | |||
Deposits | 4,900,317 | 4,826,406 | |
Short-term borrowings | 15,000 | ||
Paycheck Protection Program Liquidity Facility | 83,586 | 177,086 | |
Subordinated debt | 130,523 | 183,348 | |
Accrued interest payable | 1,028 | 1,650 | |
Fair value [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 203,462 | 653,322 | |
CRA investment fund | 14,894 | 15,117 | |
Financial Liabilities: | |||
Deposits | 4,384,210 | 4,222,370 | |
Accrued interest payable | 126 | 150 | |
Fair value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Financial Assets: | |||
Securities available for sale | 823,820 | 622,689 | |
Loans held for sale, at fair value | 3,974 | 13,588 | |
Loans held for sale, at lower of cost or fair value | 11,844 | 19,115 | |
Accrued interest receivable | 2,190 | 1,653 | |
Financial Liabilities: | |||
Deposits | 516,107 | 604,036 | |
Short-term borrowings | 15,000 | ||
Paycheck Protection Program Liquidity Facility | 83,586 | 177,086 | |
Accrued interest payable | 827 | 1,347 | |
Fair value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Financial Assets: | |||
Loans, net of allowance for loan and lease losses | 4,697,207 | 4,462,243 | |
Accrued interest receivable | 20,927 | 20,842 | |
Financial Liabilities: | |||
Subordinated debt | 130,523 | 183,348 | |
Accrued interest payable | 75 | 153 | |
Fair value [Member] | Designated as Hedging Instrument [Member] | |||
Financial Liabilities: | |||
Derivatives | 6,203 | 9,616 | |
Fair value [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Financial Liabilities: | |||
Derivatives | 6,203 | 9,616 | |
Fair value [Member] | Not Designated as Hedging Instrument [Member] | |||
Financial Assets: | |||
Accrued interest receivable | [1] | 4,716 | |
Derivatives | 51,855 | 79,529 | |
Financial Liabilities: | |||
Accrued interest payable | 4,716 | ||
Derivatives | 51,855 | 79,529 | |
Fair value [Member] | Not Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Financial Assets: | |||
Accrued interest receivable | [1] | 4,716 | |
Derivatives | 51,855 | 79,529 | |
Financial Liabilities: | |||
Accrued interest payable | 4,716 | ||
Derivatives | $ 51,855 | $ 79,529 | |
[1] | Included in other assets in the Consolidated Statement of Condition. |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of Noninterest Income) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Service charges on deposits | |||||
Overdraft fees | $ 87,000 | $ 72,000 | $ 180,000 | $ 219,000 | |
Interchange income | 370,000 | 270,000 | 687,000 | 550,000 | |
Other | 439,000 | 353,000 | 875,000 | 742,000 | |
Wealth management fees | [1] | 13,034,000 | 9,996,000 | 25,165,000 | 19,951,000 |
Gains/(losses) on sales of OREO | 51,000 | 0 | 51,000 | 0 | |
Other | [2] | 3,697,000 | 1,935,000 | 8,540,000 | 5,681,000 |
Total other income | $ 17,678,000 | $ 12,626,000 | $ 35,498,000 | $ 27,143,000 | |
[1] | Includes investment brokerage fees. | ||||
[2] | All of the other category is outside the scope of ASC 606. |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of Noninterest Income by Operating Segment) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Service charges on deposits | |||||
Overdraft fees | $ 87,000 | $ 72,000 | $ 180,000 | $ 219,000 | |
Interchange income | 370,000 | 270,000 | 687,000 | 550,000 | |
Other | 439,000 | 353,000 | 875,000 | 742,000 | |
Wealth management fees | [1] | 13,034,000 | 9,996,000 | 25,165,000 | 19,951,000 |
Gains/(losses) on sales of OREO | 51,000 | 0 | 51,000 | 0 | |
Other | [2] | 3,697,000 | 1,935,000 | 8,540,000 | 5,681,000 |
Total other income | 17,678,000 | 12,626,000 | 35,498,000 | 27,143,000 | |
Banking [Member] | |||||
Service charges on deposits | |||||
Overdraft fees | 87,000 | 72,000 | 180,000 | 219,000 | |
Interchange income | 370,000 | 270,000 | 687,000 | 550,000 | |
Other | 439,000 | 353,000 | 875,000 | 742,000 | |
Wealth management fees | [1] | 0 | 0 | 0 | 0 |
Gains/(losses) on sales of OREO | 51,000 | 0 | 51,000 | 0 | |
Other | [2] | 3,247,000 | 1,661,000 | 7,541,000 | 5,074,000 |
Total other income | 4,194,000 | 2,356,000 | 9,334,000 | 6,585,000 | |
Wealth Management Division [Member] | |||||
Service charges on deposits | |||||
Overdraft fees | 0 | 0 | 0 | 0 | |
Interchange income | 0 | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | 0 | |
Wealth management fees | [1] | 13,034,000 | 9,996,000 | 25,165,000 | 19,951,000 |
Gains/(losses) on sales of OREO | 0 | 0 | 0 | 0 | |
Other | [2] | 450,000 | 274,000 | 999,000 | 607,000 |
Total other income | $ 13,484,000 | $ 10,270,000 | $ 26,164,000 | $ 20,558,000 | |
[1] | Includes investment brokerage fees. | ||||
[2] | All of the other category is outside the scope of ASC 606. |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interchange income | $ 370,000 | $ 270,000 | $ 687,000 | $ 550,000 |
Gain on sale of OREO | 51,000 | 0 | 51,000 | 0 |
Cardholder Rewards [Member] | ||||
Interchange income | $ 32,000 | $ 23,000 | $ 61,000 | $ 55,000 |
OTHER OPERATING EXPENSES (Sched
OTHER OPERATING EXPENSES (Schedule of Components of Other Operating Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other operating expenses | ||||
Professional and legal fees | $ 1,186 | $ 1,042 | $ 2,442 | $ 2,016 |
Telephone | 312 | 395 | 646 | 719 |
Advertising | 404 | 728 | 618 | 1,068 |
Amortization of intangible assets | 368 | 321 | 736 | 645 |
Branch restructure | 228 | 278 | 228 | 278 |
Write-off of subordinated debt costs | 648 | 648 | ||
Other operating expenses | 3,025 | 2,573 | 5,759 | 5,327 |
Total other operating expenses | $ 6,171 | $ 5,337 | $ 11,077 | $ 10,053 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Schedule of Accumulated Other Comprehensive Income/(Loss) Balances, Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 522,441 | $ 496,440 | $ 527,122 | $ 503,652 |
Total other comprehensive income/(loss) | 8,349 | 1,663 | (4,023) | (501) |
Balance | 538,459 | 507,980 | 538,459 | 507,980 |
Net Unrealized Holding Gain/(Loss) on Securities Available for Sale, Net of Tax [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (7,894) | 5,393 | 5,521 | 1,006 |
Other Comprehensive Income/(Loss) Before Reclassifications | 6,938 | 1,542 | (6,477) | 5,929 |
Total other comprehensive income/(loss) | 6,938 | 1,542 | (6,477) | 5,929 |
Balance | (956) | 6,935 | (956) | 6,935 |
Gain/(Loss) on Cash Flow Hedge [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (5,870) | (9,052) | (6,913) | (2,501) |
Other Comprehensive Income/(Loss) Before Reclassifications | 805 | 128 | 1,848 | (6,371) |
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss) | 606 | (7) | 606 | (59) |
Total other comprehensive income/(loss) | 1,411 | 121 | 2,454 | (6,430) |
Balance | (4,459) | (8,931) | (4,459) | (8,931) |
Accumulated Other Comprehensive Gain/(Loss), Net of Tax [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (13,764) | (3,659) | (1,392) | (1,495) |
Other Comprehensive Income/(Loss) Before Reclassifications | 7,743 | 1,670 | (4,629) | (442) |
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss) | 606 | (7) | 606 | (59) |
Total other comprehensive income/(loss) | 8,349 | 1,663 | (4,023) | (501) |
Balance | $ (5,415) | $ (1,996) | $ (5,415) | $ (1,996) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Schedule of Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ (5,841) | $ (9,678) | $ (12,287) | $ (23,326) |
Securities gains/(losses), net | 42 | 125 | (223) | 323 |
Income tax expense | (5,521) | (2,441) | (10,137) | 903 |
NET INCOME | 14,418 | 8,242 | 27,596 | 9,615 |
Reclassification out of Accumulated Other Comprehensive Income | Gain/(Loss) on Cash Flow Hedge [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (9) | (80) | ||
Other income | 842 | 842 | ||
Income tax expense | (236) | 2 | (236) | 21 |
NET INCOME | $ 606 | $ (7) | $ 606 | $ (59) |
DERIVATIVES - Additional Inform
DERIVATIVES - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)N | Jun. 30, 2019USD ($)N | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | |||||||
Net interest income (expense) | $ 33,845,000 | $ 31,971,000 | $ 65,638,000 | $ 63,718,000 | |||
Pre-tax loss on the termination of the interest rate swaps | 842,000 | 842,000 | |||||
Accrued interest receivable | 23,117,000 | 23,117,000 | $ 22,495,000 | ||||
Interest Rate Swap [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | 15,000,000 | 15,000,000 | |||||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | 230,000,000 | 230,000,000 | 270,000,000 | ||||
Net interest income (expense) | 1,100,000 | 1,100,000 | 2,300,000 | 1,300,000 | |||
Unrealized after-tax gain of accumulated other comprehensive income (loss) | $ 26,000 | $ 189,000 | |||||
Interest income | $ 9,000 | $ 80,000 | |||||
Derivative number of instruments terminated | N | 3 | 4 | |||||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | 230,000,000 | 230,000,000 | 270,000,000 | ||||
Terminated Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | 40,000,000 | 40,000,000 | |||||
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | 778,584,000 | 778,584,000 | $ 823,134,000 | ||||
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Accrued interest receivable | 4,700,000 | 4,700,000 | |||||
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Accrued interest payable | $ 4,700,000 | $ 4,700,000 |
DERIVATIVES - (Schedule of Info
DERIVATIVES - (Schedule of Information about Interest Rate Swaps Designated as Cash Flow Hedges) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)N | Dec. 31, 2020USD ($)N | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 15,000,000 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount | 230,000,000 | $ 270,000,000 |
Fair Value | $ (6,203,000) | $ (9,616,000) |
Weighted average pay rate | 1.96% | 1.93% |
Weighted average receive rate | 0.19% | 0.22% |
Weighted average maturity | 1 year 5 months 4 days | 2 years 7 days |
Unrealized loss, net | $ (6,203,000) | $ (9,616,000) |
Number of contracts | N | 11 | 13 |
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 778,584,000 | $ 823,134,000 |
Fair Value | $ 51,855,000 | $ 79,529,000 |
Weighted average pay rate | 4.05% | 4.02% |
Weighted average receive rate | 1.88% | 1.91% |
Weighted average maturity | 5 years 11 months 1 day | 6 years 6 months |
Number of contracts | N | 92 | 95 |
DERIVATIVES - (Schedule of Net
DERIVATIVES - (Schedule of Net Gains/(Loss) Recorded in Accumulated Other Comprehensive Income/(Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Gain/(loss) recognized in OCI (effective portion) | $ 1,411 | $ 121 | $ 2,454 | $ (6,430) |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Gain/(loss) recognized in OCI (effective portion) | 1,411 | 121 | 2,454 | (6,430) |
Gain/(loss) reclassified from OCI to interest expense | $ (7) | $ (59) | ||
Gain/(loss) recognized in other noninterest income | $ (842) | $ (842) |
DERIVATIVES - (Schedule of Cash
DERIVATIVES - (Schedule of Cash Flow Hedges Included in Financial Statements) (Details) - Interest Rate Swap [Member] - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional Amount | $ 15,000,000 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 230,000,000 | $ 270,000,000 |
Fair Value | (6,203,000) | (9,616,000) |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 230,000,000 | 270,000,000 |
Fair Value | $ (6,203,000) | $ (9,616,000) |
SUBORDINATED DEBT - Additional
SUBORDINATED DEBT - Additional Information (Details) - Subordinated Debt [Member] - USD ($) | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Principal amount | $ 100,000,000 | $ 35,000,000 | $ 50,000,000 | |
Non-callable term | 5 years | 5 years | 5 years | |
Notes maturity date | Dec. 22, 2030 | Dec. 15, 2027 | Jun. 30, 2026 | |
Fixed interest rate | 3.50% | 4.75% | 6.00% | |
LIBOR spread | 326.00% | 2.54% | 4.85% | |
Redemption of debt | $ 50,000,000 | |||
Debt costs net, written-off | $ 648,000 | |||
Debt issuance costs | $ 1,900,000 | $ 875,000 | ||
Parent Company [Member] | ||||
Debt Instrument [Line Items] | ||||
Net proceeds used to contribute to the Bank | 29,100,000 | $ 40,000,000 | ||
Proceeds from debt retained by parent | $ 5,000,000 | $ 10,000,000 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | |||||
Operating lease right-of-use assets | $ 9,569,000 | $ 9,569,000 | $ 9,421,000 | ||
Operating lease liabilities | $ 9,902,000 | $ 9,902,000 | $ 9,737,000 | ||
Weighted average discount rate | 2.81% | 2.81% | 3.11% | ||
Weighted average lease term | 6 years 7 months 6 days | 6 years 7 months 6 days | 6 years 3 days | ||
Operating lease costs | $ 691,000 | $ 812,000 | $ 1,400,000 | $ 1,600,000 | |
Variable lease costs | $ 83,000 | $ 87,000 | $ 167,000 | $ 176,000 | |
Minimum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Remaining lease term | 5 months | 1 month | |||
Maximum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Remaining lease term | 16 years | 16 years |
LEASES (Schedule of Operating L
LEASES (Schedule of Operating Lease Liabilities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 2,694 | |
2022 | 2,390 | |
2023 | 1,891 | |
2024 | 1,705 | |
2025 | 1,121 | |
Thereafter | 2,638 | |
Total lease payments | 12,439 | |
Less: imputed interest | 2,537 | |
Total present value of lease payments | $ 9,902 | $ 9,737 |
LEASES (Summary of Supplemental
LEASES (Summary of Supplemental Cash Flow Information Related to Direct Finance and Operating Leases) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Right-of-use asset obtained in exchange for lease obligation | $ 1,412 | $ 157 |
Operating cash flows from operating leases | 1,226 | 1,446 |
Operating cash flows from direct finance leases | 156 | 177 |
Financing cash flows from direct finance leases | $ 374 | $ 374 |
ACCOUNTING PRONOUNCEMENTS (Deta
ACCOUNTING PRONOUNCEMENTS (Details) - ASU 2019-12 [Member] | Jun. 30, 2021 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |