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Loans Receivable, Net (Tables)
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Components of Loans Receivable, Net
Loans receivable, net at September 30, 2017 and December 31, 2016 consisted of the following (in thousands):
 
September 30, 2017
 
December 31, 2016
Commercial:
 
 
 
Commercial and industrial
$
183,420

 
$
152,569

Commercial real estate – owner occupied
553,971

 
534,214

Commercial real estate – investor
1,133,118

 
1,132,075

Total commercial
1,870,509

 
1,818,858

Consumer:
 
 
 
Residential mortgage
1,676,143

 
1,647,154

Residential construction
73,812

 
65,319

Home equity loans and lines
277,909

 
288,991

Other consumer
1,354

 
1,564

Total consumer
2,029,218

 
2,003,028

 
3,899,727

 
3,821,886

Purchased credit impaired (“PCI”) loans
4,867

 
7,575

Total Loans
3,904,594

 
3,829,461

Loans in process
(22,546
)
 
(14,249
)
Deferred origination costs, net
4,645

 
3,414

Allowance for loan losses
(16,584
)
 
(15,183
)
Total loans, net
$
3,870,109

 
$
3,803,443
Analysis of Allowance for Loan Losses
An analysis of the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016 is as follows (in thousands):
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2017
 
2016
 
2017
 
2016
Balance at beginning of period
$
16,557

 
$
16,678

 
$
15,183

 
$
16,722

Provision charged to operations
1,165

 
888

 
3,030

 
2,113

Charge-offs
(1,357
)
 
(2,116
)
 
(2,861
)
 
(3,511
)
Recoveries
219

 
167

 
1,232

 
293

Balance at end of period
$
16,584

 
$
15,617

 
$
16,584

 
$
15,617
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans
The following table presents an analysis of the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016 and the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2017 and December 31, 2016, excluding PCI loans (in thousands):

 
Residential
Real Estate
 
Commercial
Real Estate –
Owner
Occupied
 
Commercial
Real Estate –
Investor
 
Consumer
 
Commercial
and Industrial
 
Unallocated
 
Total
For the three months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
1,492

 
$
3,097

 
$
8,367

 
$
930

 
$
2,253

 
$
418

 
$
16,557

Provision (benefit) charged to operations
1,465

 
119

 
81

 
(122
)
 
(180
)
 
(198
)
 
1,165

Charge-offs
(1,284
)
 
—

 
—

 
(67
)
 
(6
)
 
—

 
(1,357
)
Recoveries
128

 
—

 
24

 
17

 
50

 
—

 
219

Balance at end of period
$
1,801

 
$
3,216

 
$
8,472

 
$
758

 
$
2,117

 
$
220

 
$
16,584

For the three months ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
6,006

 
$
2,711

 
$
4,713

 
$
1,107

 
$
1,209

 
$
932

 
$
16,678

Provision (benefit) charged to operations
(376
)
 
(168
)
 
104

 
(130
)
 
1,949

 
(491
)
 
888

Charge-offs
(167
)
 
—

 
—

 
(80
)
 
(1,869
)
 
—

 
(2,116
)
Recoveries
6

 
—

 
—

 
—

 
161

 
—

 
167

Balance at end of period
$
5,469

 
$
2,543

 
$
4,817

 
$
897

 
$
1,450

 
$
441

 
$
15,617

For the nine months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
2,245

 
$
2,999

 
$
6,361

 
$
1,110

 
$
2,037

 
$
431

 
$
15,183

Provision (benefit) charged to operations
1,477

 
167

 
2,164

 
(346
)
 
(221
)
 
(211
)
 
3,030

Charge-offs
(2,485
)
 
(73
)
 
(84
)
 
(125
)
 
(94
)
 
—

 
(2,861
)
Recoveries
564

 
123

 
31

 
119

 
395

 
—

 
1,232

Balance at end of period
$
1,801

 
$
3,216

 
$
8,472

 
$
758

 
$
2,117

 
$
220

 
$
16,584

For the nine months ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
6,590

 
$
2,292

 
$
4,873

 
$
1,095

 
$
1,639

 
$
233

 
$
16,722

Provision (benefit) charged to operations
(867
)
 
1,261

 
(56
)
 
(98
)
 
1,665

 
208

 
2,113

Charge-offs
(319
)
 
(1,010
)
 
—

 
(146
)
 
(2,036
)
 
—

 
(3,511
)
Recoveries
65

 
—

 
—

 
46

 
182

 
—

 
293

Balance at end of period
$
5,469

 
$
2,543

 
$
4,817

 
$
897

 
$
1,450

 
$
441

 
$
15,617

September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributed to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
$
—

 
$
616

 
$
—

 
$
—

 
$
—

 
$
616

Collectively evaluated for impairment
1,801

 
3,216

 
7,856

 
758

 
2,117

 
220

 
15,968

Total ending allowance balance
$
1,801

 
$
3,216

 
$
8,472

 
$
758

 
$
2,117

 
$
220

 
$
16,584

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
$
12,484

 
$
11,537

 
$
17,535

 
$
2,478

 
$
893

 
$
—

 
$
44,927

Loans collectively evaluated for impairment
1,737,471

 
542,434

 
1,115,583

 
276,785

 
182,527

 
—

 
3,854,800

Total ending loan balance
$
1,749,955

 
$
553,971

 
$
1,133,118

 
$
279,263

 
$
183,420

 
$
—

 
$
3,899,727

 
Residential
Real Estate
 
Commercial
Real Estate –
Owner
Occupied
 
Commercial
Real Estate –
Investor
 
Consumer
 
Commercial
and Industrial
 
Unallocated
 
Total
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributed to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
266

 
$
—

 
$
119

 
$
125

 
$
—

 
$
—

 
$
510

Collectively evaluated for impairment
1,979

 
2,999

 
6,242

 
985

 
2,037

 
431

 
14,673

Total ending allowance balance
$
2,245

 
$
2,999

 
$
6,361

 
$
1,110

 
$
2,037

 
$
431

 
$
15,183

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
$
13,306

 
$
11,123

 
$
3,789

 
$
2,556

 
$
268

 
$
—

 
$
31,042

Loans collectively evaluated for impairment
1,699,167

 
523,091

 
1,128,286

 
287,999

 
152,301

 
—

 
3,790,844

Total ending loan balance
$
1,712,473

 
$
534,214

 
$
1,132,075

 
$
290,555

 
$
152,569

 
$
—

 
$
3,821,886
Summary of Impaired Loans Excluding PCI Loans
A summary of impaired loans at September 30, 2017, and December 31, 2016, is as follows, excluding PCI loans (in thousands):
 
 
September 30, 2017
 
December 31, 2016
Impaired loans with no allocated allowance for loan losses
$
40,386

 
$
25,228

Impaired loans with allocated allowance for loan losses
4,541

 
5,814

 
$
44,927

 
$
31,042

Amount of the allowance for loan losses allocated
$
616

 
$
510
Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans
The summary of loans individually evaluated for impairment by loan portfolio segment as of September 30, 2017, and December 31, 2016 and for the three and nine months ended September 30, 2017 and 2016, is as follows, excluding PCI loans (in thousands):
 
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Allowance
for Loan
Losses
Allocated
As of September 30, 2017
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
Residential real estate
$
12,896

 
$
12,484

 
$
—

Commercial real estate – owner occupied
12,233

 
11,537

 
—

Commercial real estate – investor
13,938

 
12,994

 
—

Consumer
2,939

 
2,478

 
—

Commercial and industrial
925

 
893

 
—

 
$
42,931

 
$
40,386

 
$
—

With an allowance recorded:
 
 
 
 
 
Residential real estate
$
—

 
$
—

 
$
—

Commercial real estate – owner occupied
—

 
—

 
—

Commercial real estate – investor
4,556

 
4,541

 
616

Consumer
—

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
$
4,556

 
$
4,541

 
$
616

As of December 31, 2016
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
Residential real estate
$
9,848

 
$
9,694

 
$
—

Commercial real estate – owner occupied
11,886

 
11,123

 
—

Commercial real estate – investor
2,239

 
1,897

 
—

Consumer
2,559

 
2,246

 
—

Commercial and industrial
300

 
268

 
—

 
$
26,832

 
$
25,228

 
$
—

With an allowance recorded:
 
 
 
 
 
Residential real estate
$
3,998

 
$
3,612

 
$
266

Commercial real estate – owner occupied
—

 
—

 
—

Commercial real estate – investor
2,011

 
1,892

 
119

Consumer
581

 
310

 
125

Commercial and industrial
—

 
—

 
—

 
$
6,590

 
$
5,814

 
$
510

 
Three Months Ended September 30,
 
2017
 
2016
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
Residential real estate
$
12,791

 
$
128

 
$
13,451

 
$
171

Commercial real estate – owner occupied
11,217

 
335

 
17,198

 
119

Commercial real estate – investor
11,147

 
240

 
281

 
3

Consumer
2,495

 
36

 
2,340

 
44

Commercial and industrial
908

 
26

 
269

 
—

 
$
38,558

 
$
765

 
$
33,539

 
$
337

With an allowance recorded:
 
 
 
 
 
 
 
Residential real estate
$
—

 
$
—

 
$
107

 
$
1

Commercial real estate – owner occupied
—

 
—

 
—

 
—

Commercial real estate – investor
4,551

 
13

 
896

 
—

Consumer
—

 
—

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
—

 
$
4,551

 
$
13

 
$
1,003

 
$
1

 
Nine Months Ended September 30,
 
2017
 
2016
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
Residential real estate
$
11,009

 
$
401

 
$
13,326

 
$
437

Commercial real estate – owner occupied
11,080

 
520

 
17,333

 
406

Commercial real estate – investor
6,550

 
487

 
303

 
9

Consumer
2,368

 
106

 
2,220

 
105

Commercial and industrial
588

 
50

 
270

 
—

 
$
31,595

 
$
1,564

 
$
33,452

 
$
957

With an allowance recorded:
 
 
 
 
 
 
 
Residential real estate
$
1,981

 
$
62

 
$
108

 
$
3

Commercial real estate – owner occupied
—

 
—

 
—

 
—

Commercial real estate – investor
4,233

 
81

 
755

 
—

Consumer
148

 
6

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
—

 
$
6,362

 
$
149

 
$
863

 
$
3
Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans
The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of September 30, 2017 and December 31, 2016, excluding PCI loans (in thousands):
 
September 30, 2017
 
December 31, 2016
Residential real estate
$
3,551

 
$
8,126

Commercial real estate – owner occupied
923

 
2,414

Commercial real estate – investor
8,720

 
521

Consumer
1,864

 
2,064

Commercial and industrial
63

 
441

 
$
15,121

 
$
13,566
Aging of Recorded Investment in Past Due Loans Excluding PCI Loans
The following table presents the aging of the recorded investment in past due loans as of September 30, 2017 and December 31, 2016 by loan portfolio segment, excluding PCI loans (in thousands):
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
Greater
than
90 Days
Past Due
 
Total
Past Due
 
Loans Not
Past Due
 
Total
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
12,736

 
$
6,872

 
$
2,277

 
$
21,885

 
$
1,728,070

 
$
1,749,955

Commercial real estate – owner occupied
711

 
—

 
289

 
1,000

 
552,971

 
553,971

Commercial real estate – investor
2,301

 
173

 
8,146

 
10,620

 
1,122,498

 
1,133,118

Consumer
768

 
491

 
1,486

 
2,745

 
276,518

 
279,263

Commercial and industrial
—

 
1,874

 
64

 
1,938

 
181,482

 
183,420

 
$
16,516

 
$
9,410

 
$
12,262

 
$
38,188

 
$
3,861,539

 
$
3,899,727

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
9,532

 
$
3,038

 
$
7,159

 
$
19,729

 
$
1,692,744

 
$
1,712,473

Commercial real estate – owner occupied
3,962

 
1,032

 
890

 
5,884

 
528,330

 
534,214

Commercial real estate – investor
—

 
—

 
521

 
521

 
1,131,554

 
1,132,075

Consumer
1,519

 
436

 
1,963

 
3,918

 
286,637

 
290,555

Commercial and industrial
5,548

 
181

 
384

 
6,113

 
146,456

 
152,569

 
$
20,561

 
$
4,687

 
$
10,917

 
$
36,165

 
$
3,785,721

 
$
3,821,886
Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans
As of September 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by loan portfolio segment follows, excluding PCI loans (in thousands) is as follows: 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
September 30, 2017
 
 
 
 
 
 
 
 
 
Commercial real estate – owner occupied
$
531,493

 
$
4,349

 
$
18,129

 
$
—

 
$
553,971

Commercial real estate – investor
1,100,142

 
10,768

 
22,208

 
—

 
1,133,118

Commercial and industrial
176,619

 
3,520

 
3,281

 
—

 
183,420

 
$
1,808,254

 
$
18,637

 
$
43,618

 
$
—

 
$
1,870,509

December 31, 2016
 
 
 
 
 
 
 
 
 
Commercial real estate – owner occupied
$
501,652

 
$
7,680

 
$
24,882

 
$
—

 
$
534,214

Commercial real estate – investor
1,106,747

 
713

 
24,615

 
—

 
1,132,075

Commercial and industrial
150,474

 
757

 
1,338

 
—

 
152,569

 
$
1,758,873

 
$
9,150

 
$
50,835

 
$
—

 
$
1,818,858
Recorded Investment in Residential and Consumer Loans Based on Payment Activity Excluding PCI Loans
The following table presents the recorded investment in residential and consumer loans based on payment activity as of September 30, 2017 and December 31, 2016, excluding PCI loans (in thousands):
 
Residential Real Estate
 
Residential
 
Consumer
September 30, 2017
 
 
 
Performing
$
1,746,404

 
$
277,399

Non-performing
3,551

 
1,864

 
$
1,749,955

 
$
279,263

December 31, 2016
 
 
 
Performing
$
1,704,347

 
$
288,491

Non-performing
8,126

 
2,064

 
$
1,712,473

 
$
290,555
Troubled Debt Restructurings
The following table presents information about troubled debt restructurings which occurred during the three and nine months ended September 30, 2017 and 2016, and troubled debt restructurings modified within the previous year and which defaulted during the three and nine months ended September 30, 2017 and 2016, (dollars in thousands):
 
Number of Loans
 
Pre-modification
Recorded Investment
 
Post-modification
Recorded Investment
Three months ended September 30, 2017
 
 
 
 
 
Troubled Debt Restructurings:
 
 
 
 
 
Residential real estate
2

 
$
328

 
$
357

Commercial real estate - owner occupied
1

 
700

 
700

Commercial real estate - investor
1

 
700

 
700

 
Number of Loans
  
Recorded Investment
Troubled Debt Restructurings
 
  
 
Which Subsequently Defaulted:
None

  
None

 
Number of Loans
 
Pre-modification
Recorded Investment
 
Post-modification
Recorded Investment
Nine months ended September 30, 2017
 
 
 
 
 
Troubled Debt Restructurings:
 
 
 
 
 
Residential real estate
6

 
$
1,354

 
$
1,356

Commercial real estate - owner occupied
4

 
3,309

 
3,309

Commercial real estate – investor
4

 
6,362

 
6,484

Commercial and industrial
1

 
665

 
665

 
Number of Loans
  
Recorded Investment
Troubled Debt Restructurings
 
  
 
Which Subsequently Defaulted:
None

  
None



 
Number of Loans
 
Pre-modification
Recorded Investment
 
Post-modification
Recorded Investment
Three months ended September 30, 2016
 
 
 
 
 
Troubled Debt Restructurings:
 
 
 
 
 
Residential real estate
1

 
$
455

 
$
455

Consumer
1

 
602

 
602

 
Number of Loans
  
Recorded Investment
Troubled Debt Restructurings
 
  
 
Which Subsequently Defaulted:
None

  
None

 
Number of Loans
 
Pre-modification
Recorded Investment
 
Post-modification
Recorded Investment
Nine months ended September 30, 2016
 
 
 
 
 
Troubled Debt Restructurings:
 
 
 
 
 
Residential real estate
3

 
$
674

 
$
673

Commercial real estate – investor
1

 
256

 
270

Consumer
3

 
665

 
665

 
Number of Loans
  
Recorded Investment
Troubled Debt Restructurings
 
  
 
Which Subsequently Defaulted:
None

  
None
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period
The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Ocean Shore at December 1, 2016, Cape at May 2, 2016, and Colonial American Bank at July 31, 2015 (in thousands):
 
Ocean Shore
December 1, 2016
 
Cape
May 2, 2016
 
Colonial American
July 31, 2015
Contractually required principal and interest
$
7,385

 
$
21,345

 
$
3,263

Contractual cash flows not expected to be collected (non-accretable discount)
(4,666
)
 
(12,387
)
 
(1,854
)
Expected cash flows to be collected at acquisition
2,719

 
8,958

 
1,409

Interest component of expected cash flows (accretable yield)
(401
)
 
(576
)
 
(109
)
Fair value of acquired loans
$
2,318

 
$
8,382

 
$
1,300

The following table summarizes the changes in accretable yield for PCI loans during the three and nine months ended September 30, 2017 and 2016 (in thousands):
 
Three Months Ended September 30, 2017
 
Nine Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
Beginning balance
$
1,465

 
$
749

 
$
503

 
$
75

Acquisition
—

 
—

 
—

 
576

Accretion
(328
)
 
(642
)
 
(196
)
 
(344
)
Reclassification from non-accretable difference
13

 
1,043

 
—

 
—

Ending balance
$
1,150

 
$
1,150

 
$
307

 
$
307