QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller Reporting Company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
BROOKLINE BANCORP, INC. AND SUBSIDIARIES Unaudited Consolidated Balance Sheets | |||||||||||
At September 30, 2023 | At December 31, 2022 | ||||||||||
(In Thousands Except Share Data) | |||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Short-term investments | |||||||||||
Total cash and cash equivalents | |||||||||||
Investment securities available-for-sale, net | |||||||||||
Total investment securities | |||||||||||
Allowance for investment security losses | ( | ( | |||||||||
Net investment securities | |||||||||||
Loans and leases: | |||||||||||
Commercial real estate loans | |||||||||||
Commercial loans and leases | |||||||||||
Consumer loans | |||||||||||
Total loans and leases | |||||||||||
Allowance for loan and lease losses | ( | ( | |||||||||
Net loans and leases | |||||||||||
Restricted equity securities | |||||||||||
Premises and equipment, net of accumulated depreciation of $ | |||||||||||
Right-of-use asset operating leases | |||||||||||
Deferred tax asset | |||||||||||
Goodwill | |||||||||||
Identified intangible assets, net of accumulated amortization of $ | |||||||||||
Other real estate owned ("OREO") and repossessed assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Deposits: | |||||||||||
Demand checking accounts | $ | $ | |||||||||
Interest-bearing deposits | |||||||||||
Total deposits | |||||||||||
Borrowed funds: | |||||||||||
Advances from the Federal Home Loan Bank ("FHLB") of Boston and New York | |||||||||||
Subordinated debentures and notes | |||||||||||
Other borrowed funds | |||||||||||
Total borrowed funds | |||||||||||
Operating lease liabilities | |||||||||||
Mortgagors' escrow accounts | |||||||||||
Reserve for unfunded credits | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 12) | |||||||||||
Stockholders' Equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive (loss) income | ( | ( | |||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In Thousands Except Share Data) | |||||||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||||||
Loans and leases | $ | $ | $ | $ | |||||||||||||||||||
Debt securities | |||||||||||||||||||||||
Restricted equity securities | |||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Total interest and dividend income | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Borrowed funds | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Provision for investment losses | ( | ||||||||||||||||||||||
Net interest income after provision for credit losses | |||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||
Deposit fees | |||||||||||||||||||||||
Loan fees | |||||||||||||||||||||||
Loan level derivative income, net | |||||||||||||||||||||||
Gain on investment securities, net | |||||||||||||||||||||||
Gain on sales of loans and leases held-for-sale | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total non-interest income | |||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||
Compensation and employee benefits | |||||||||||||||||||||||
Occupancy | |||||||||||||||||||||||
Equipment and data processing | |||||||||||||||||||||||
Professional services | |||||||||||||||||||||||
FDIC insurance | |||||||||||||||||||||||
Advertising and marketing | |||||||||||||||||||||||
Amortization of identified intangible assets | |||||||||||||||||||||||
Merger and acquisition expense | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total non-interest expense | |||||||||||||||||||||||
Income before provision for income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | |||||||||||||||||||||||
Weighted average common shares outstanding during the year: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Dividends paid per common share | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
Unrealized securities holding gains (losses) | ( | ( | ( | ( | |||||||||||||||||||
Income tax (expense) benefit | |||||||||||||||||||||||
Net unrealized securities holding gains (losses) before reclassification adjustments, net of taxes | ( | ( | ( | ( | |||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Change in fair value of cash flow hedges | ( | ( | ( | ( | |||||||||||||||||||
Income tax (expense) benefit | ( | ( | |||||||||||||||||||||
Net change in fair value of cash flow hedges, net of taxes | ( | ( | ( | ( | |||||||||||||||||||
Less reclassification adjustment for change in fair value of cash flow hedges: | |||||||||||||||||||||||
Gain (loss) on change in fair value of cash flow hedges | ( | ( | |||||||||||||||||||||
Income tax (expense) benefit | |||||||||||||||||||||||
Net reclassification adjustment for change in fair value of cash flow hedges | ( | ( | |||||||||||||||||||||
Net change in fair value of cash flow hedges | ( | $ | ( | ( | $ | ( | |||||||||||||||||
Other comprehensive income (loss), net of taxes | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Unallocated Common Stock Held by ESOP | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | $ | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | ( | — | — | $ | ( | ||||||||||||||||||||||||||||||
Common stock dividends of $ | — | — | ( | — | — | — | $ | ( | ||||||||||||||||||||||||||||||
Restricted stock awards issued, net of awards surrendered | ( | — | — | — | $ | ( | ||||||||||||||||||||||||||||||||
Compensation under recognition and retention plans | — | ( | — | — | — | $ | ||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Unallocated Common Stock Held by ESOP | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock dividends of $ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Restricted stock awards issued, net of awards surrendered | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Compensation under recognition and retention plan | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||
Common stock held by ESOP committed to be released ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Unallocated Common Stock Held by ESOP | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
PCSB acquisition | $ | $ | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock dividends of $ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Restricted stock awards issued, net of awards surrendered | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Compensation under recognition and retention plans | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Unallocated Common Stock Held by ESOP | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock dividends of $ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Restricted stock awards issued, net of awards surrendered | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Compensation under recognition and retention plans | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||
Treasury stock, repurchase shares | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Common stock held by ESOP committed to be released ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(In Thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided from operating activities: | |||||||||||
Provision for credit losses | |||||||||||
Deferred income tax expense | |||||||||||
Depreciation of premises and equipment | |||||||||||
(Accretion) amortization of investment securities premiums and discounts, net | ( | ||||||||||
Amortization of deferred loan and lease origination costs, net | |||||||||||
Amortization of identified intangible assets | |||||||||||
Amortization of debt issuance costs | |||||||||||
(Accretion) amortization of acquisition fair value adjustments, net | ( | ||||||||||
Gain on investment securities, net | ( | ||||||||||
Gain on sales of loans and leases held-for-sale | ( | ( | |||||||||
Write-down of other repossessed assets | |||||||||||
Compensation under recognition and retention plans | |||||||||||
ESOP shares committed to be released | |||||||||||
Net change in: | |||||||||||
Cash surrender value of bank-owned life insurance | ( | ( | |||||||||
Other assets | ( | ( | |||||||||
Accrued expenses and other liabilities | |||||||||||
Net cash provided from operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sales of investment securities available-for-sale | |||||||||||
Proceeds from maturities, calls, and principal repayments of investment securities available-for-sale | |||||||||||
Purchases of investment securities available-for-sale | ( | ( | |||||||||
Proceeds from redemption/sales of restricted equity securities | |||||||||||
Purchase of restricted equity securities | ( | ( | |||||||||
Proceeds from sales of loans and leases held-for-investment, net | |||||||||||
Net increase in loans and leases | ( | ( | |||||||||
Acquisitions, net of cash and cash equivalents acquired | ( | ||||||||||
Purchase of premises and equipment, net | ( | ( | |||||||||
Proceeds from sales of other repossessed assets | |||||||||||
Net cash used for investing activities | ( | ( | |||||||||
(Continued) |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(In Thousands) | |||||||||||
Cash flows from financing activities: | |||||||||||
Decrease in demand checking, NOW, savings and money market accounts | ( | ( | |||||||||
Increase (decrease) in certificates of deposit and brokered deposits | ( | ||||||||||
Proceeds from FHLB advances | |||||||||||
Repayment of FHLB advances | ( | ( | |||||||||
Increase (decrease) in other borrowed funds, net | ( | ||||||||||
Decrease in mortgagors' escrow accounts, net | ( | ( | |||||||||
Repurchases of common stock | ( | ||||||||||
Payment of dividends on common stock | ( | ( | |||||||||
Payment of income taxes for shares withheld in share based activity | ( | ( | |||||||||
Net cash provided from financing activities | |||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest on deposits, borrowed funds and subordinated debt | $ | $ | |||||||||
Income taxes | |||||||||||
Non-cash investing activities: | |||||||||||
Transfer from loans to other repossessed assets | $ | $ | |||||||||
Acquisition of PCSB Financial Corporation: | |||||||||||
Fair value of assets acquired, net of cash and cash equivalents acquired | $ | $ | |||||||||
Fair value of liabilities assumed | |||||||||||
Common stock issued | |||||||||||
Net Assets Acquired at Fair Value | |||||
(In Thousands) | |||||
Purchase price consideration | $ | ||||
ASSETS | |||||
Cash | |||||
Investments | |||||
Loans (1) | |||||
Allowance for credit losses on PCD loans | ( | ||||
Premises and equipment | |||||
Core deposit and other intangibles | |||||
Other assets | |||||
Total assets acquired | $ | ||||
LIABILITIES | |||||
Deposits | $ | ||||
Borrowings | |||||
Other liabilities | |||||
Total liabilities assumed | $ | ||||
Net assets acquired | |||||
Goodwill | $ | ||||
(In Thousands) | |||||
Total unpaid principal balance | $ | ||||
Allowance for credit losses at acquisition | ( | ||||
Non-credit discount | ( | ||||
Fair value | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Non-interest income | |||||||||||||||||||||||
Net income |
Nine Months Ended September 30, 2023 | |||||
(In Thousands) | |||||
Compensation and benefits (1) | $ | ||||
Technology and equipment (2) | |||||
Professional and outside services (3) | |||||
Other expense (4) | |||||
Total merger-related expenses | $ |
At September 30, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
U.S. Government-sponsored enterprise ("GSE") debentures | $ | $ | $ | $ | |||||||||||||||||||
GSE CMOs | |||||||||||||||||||||||
GSE MBSs | |||||||||||||||||||||||
Municipal obligations | |||||||||||||||||||||||
Corporate debt obligations | |||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||
Total investment securities available-for-sale | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
GSE debentures | $ | $ | $ | $ | |||||||||||||||||||
GSE CMOs | |||||||||||||||||||||||
GSE MBSs | |||||||||||||||||||||||
Corporate debt obligations | |||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||
Total investment securities available-for-sale | $ | $ | $ | $ | |||||||||||||||||||
At September 30, 2023 | |||||||||||||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||||||||||||||
Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||
GSE debentures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
GSE CMOs | |||||||||||||||||||||||||||||||||||
GSE MBSs | |||||||||||||||||||||||||||||||||||
Municipal obligations | |||||||||||||||||||||||||||||||||||
Corporate debt obligations | |||||||||||||||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||||||||||||||
Total temporarily impaired investment securities | $ | $ | $ | $ | $ | $ |
At December 31, 2022 | |||||||||||||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||||||||||||||
Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||
GSE debentures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
GSE CMOs | |||||||||||||||||||||||||||||||||||
GSE MBSs | |||||||||||||||||||||||||||||||||||
Corporate debt obligations | |||||||||||||||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||||||||||||||
Total temporarily impaired investment securities | $ | $ | $ | $ | $ | $ |
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Weighted Average Rate | Amortized Cost | Estimated Fair Value | Weighted Average Rate | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Within 1 year | $ | $ | % | $ | $ | % | |||||||||||||||||||||||||||||
After 1 year through 5 years | % | % | |||||||||||||||||||||||||||||||||
After 5 years through 10 years | % | % | |||||||||||||||||||||||||||||||||
Over 10 years | % | % | |||||||||||||||||||||||||||||||||
$ | $ | % | $ | $ | % | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(In Thousands) | |||||||||||
Investment securities available-for-sale: | |||||||||||
Proceeds from sales: | $ | $ | |||||||||
Gross gains from sales | |||||||||||
Gross losses from sales | ( | ||||||||||
Gain on sales of securities, net | $ | $ | |||||||||
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||
Balance | Weighted Average Coupon | Balance | Weighted Average Coupon | ||||||||||||||||||||
(Dollars In Thousands) | |||||||||||||||||||||||
Commercial real estate loans: | |||||||||||||||||||||||
Commercial real estate | $ | % | $ | % | |||||||||||||||||||
Multi-family mortgage | % | % | |||||||||||||||||||||
Construction | % | % | |||||||||||||||||||||
Total commercial real estate loans | % | % | |||||||||||||||||||||
Commercial loans and leases: | |||||||||||||||||||||||
Commercial | % | % | |||||||||||||||||||||
Equipment financing | % | % | |||||||||||||||||||||
Condominium association | % | % | |||||||||||||||||||||
Total commercial loans and leases | % | % | |||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||
Residential mortgage | % | % | |||||||||||||||||||||
Home equity | % | % | |||||||||||||||||||||
Other consumer | % | % | |||||||||||||||||||||
Total consumer loans | % | % | |||||||||||||||||||||
Total loans and leases | $ | % | $ | % |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Charge-offs | ( | ( | ( | ||||||||||||||||||||
Recoveries | |||||||||||||||||||||||
Provision (credit) for loan and lease losses excluding unfunded commitments | ( | ||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Charge-offs | ( | ( | ( | ||||||||||||||||||||
Recoveries | |||||||||||||||||||||||
Provision (credit) for loan and lease losses excluding unfunded commitments | ( | ||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Charge-offs | ( | ( | ( | ||||||||||||||||||||
Recoveries | |||||||||||||||||||||||
Provision (credit) for loan and lease losses excluding unfunded commitments | |||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Charge-offs | ( | ( | ( | ( | |||||||||||||||||||
Recoveries | |||||||||||||||||||||||
Provision (credit) for loan and lease losses excluding unfunded commitments | ( | ( | ( | ||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Provision (credit) for loan and lease losses: | |||||||||||||||||||||||
Commercial real estate | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Commercial | ( | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||
Total (credit) provision for loan and lease losses | ( | ||||||||||||||||||||||
Unfunded commitments | ( | ||||||||||||||||||||||
Investment securities available-for-sale | ( | ||||||||||||||||||||||
Total provision (credit) for credit losses | $ | $ | $ | $ |
September 30, 2023 | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Multi-Family Mortgage | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Current-period gross writeoffs | |||||||||||||||||||||||||||||
Equipment Financing | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Current-period gross writeoffs | |||||||||||||||||||||||||||||
Condominium Association | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Other Consumer | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Current-period gross writeoffs | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
At September 30, 2023 | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Credit Scores | |||||||||||||||||||||||||||||
Over 700 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
661 - 700 | |||||||||||||||||||||||||||||
600 and below | |||||||||||||||||||||||||||||
Data not available* | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Current-period gross writeoffs | |||||||||||||||||||||||||||||
Home Equity | |||||||||||||||||||||||||||||
Credit Scores | |||||||||||||||||||||||||||||
Over 700 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
661 - 700 | |||||||||||||||||||||||||||||
600 and below | |||||||||||||||||||||||||||||
Data not available* | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Multi-Family Mortgage | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Equipment Financing | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Condominium Association | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Other Consumer | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||
Substandard |
December 31, 2022 | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Scores | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Over 700 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
661 - 700 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
600 and below | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Data not available* | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Home Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Scores | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Over 700 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
661 - 700 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
600 and below | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Data not available* | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2023 | |||||||||||||||||||||||||||||
Past Due | Past Due Greater Than 90 Days and Accruing | ||||||||||||||||||||||||||||
31-60 Days | 61-90 Days | Greater Than 90 Days | Total | Current | Total Loans and Leases | Non-accrual | Non-accrual with No Related Allowance | ||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Commercial real estate loans: | |||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Multi-family mortgage | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Total commercial real estate loans | |||||||||||||||||||||||||||||
Commercial loans and leases: | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Equipment financing | |||||||||||||||||||||||||||||
Condominium association | |||||||||||||||||||||||||||||
Total commercial loans and leases | |||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Other consumer | |||||||||||||||||||||||||||||
Total consumer loans | |||||||||||||||||||||||||||||
Total loans and leases | $ | $ | $ | $ | $ | $ | $ | $ | $ |
At December 31, 2022 | |||||||||||||||||||||||||||||
Past Due | Loans and Leases Past Due Greater Than 90 Days and Accruing | Non-accrual with No Related Allowance | |||||||||||||||||||||||||||
31-60 Days | 61-90 Days | Greater Than 90 Days | Total | Current | Total Loans and Leases | Non-accrual | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Commercial real estate loans: | |||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Multi-family mortgage | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Total commercial real estate loans | |||||||||||||||||||||||||||||
Commercial loans and leases: | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Equipment financing | |||||||||||||||||||||||||||||
Condominium association | |||||||||||||||||||||||||||||
Total commercial loans and leases | |||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Other consumer | |||||||||||||||||||||||||||||
Total consumer loans | |||||||||||||||||||||||||||||
Total loans and leases | $ | $ | $ | $ | $ | $ | $ | $ | $ |
At September 30, 2023 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||||||||||
Individually evaluated | $ | $ | $ | $ | |||||||||||||||||||
Collectively evaluated | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||
Individually evaluated | $ | $ | $ | $ | |||||||||||||||||||
Collectively evaluated | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
At December 31, 2022 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||||||||||
Individually evaluated | $ | $ | $ | $ | |||||||||||||||||||
Collectively evaluated | |||||||||||||||||||||||
Total loans and leases | $ | $ | $ | $ | |||||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||
Individually evaluated | $ | $ | $ | $ | |||||||||||||||||||
Collectively evaluated | |||||||||||||||||||||||
Total loans and leases | $ | $ | $ | $ |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Number of Loans | Amortized Cost | % of Total Class of Loans and Leases | Financial Effect | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Maturity Extension | |||||||||||||||||||||||
C&I | $ | % | This loan was given a | ||||||||||||||||||||
Significant Payment Delays | |||||||||||||||||||||||
C&I | % | Both loans were given restructured payment plans to assist borrowers. The financial effect was deemed "de minimis." | |||||||||||||||||||||
Combination | |||||||||||||||||||||||
C&I | % | This loan was given a | |||||||||||||||||||||
Total | $ | % |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Number of Loans | Amortized Cost | % of Total Class of Loans and Leases | Financial Effect | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Maturity Extension | |||||||||||||||||||||||
C&I | $ | % | All | ||||||||||||||||||||
Significant Payment Delays | |||||||||||||||||||||||
C&I | $ | % | Both loans were given restructured payment plans to assist borrowers. The financial effect was deemed "de minimis." | ||||||||||||||||||||
Combination | |||||||||||||||||||||||
C&I | % | All 4 loans were given | |||||||||||||||||||||
Total | $ | % |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Current | 30-60 Days Past Due | 61-90 Days Past Due | 90+ Days Past Due | Modified | Paid Off | Charged Off | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Total Modifications | $ |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Current | 30-60 Days Past Due | 61-90 Days Past Due | 90+ Days Past Due | Modified | Paid Off | Charged Off | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Total Modifications | $ |
At December 31, 2022 | ||||||||
(In Thousands) | ||||||||
Troubled debt restructurings: | ||||||||
On accrual | $ | |||||||
On nonaccrual | ||||||||
Total troubled debt restructurings | $ |
At and for the Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Specific Allowance for Credit Losses | Defaulted (1) | |||||||||||||||||||||||||||||||||||||||
Number of Loans/ Leases | At Modification | At End of Period | Nonaccrual Loans and Leases | Number of Loans/ Leases | Amortized Cost | ||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||
Equipment financing | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | $ | $ | $ | $ |
At and for the Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Specific Allowance for Credit Losses | Defaulted (1) | ||||||||||||||||||||||||||||||||||||||||||
Number of Loans/ Leases | At Modification | At End of Period | Nonaccrual Loans and Leases | Number of Loans/ Leases | Amortized Cost | |||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Equipment financing | ||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2022 | 2022 | ||||||||||
(In Thousands) | |||||||||||
Loans with one modification: | |||||||||||
Extended maturity | $ | $ | |||||||||
Combination maturity, principal, interest rate | |||||||||||
Total loans with modifications | $ | $ |
At September 30, 2023 | At December 31, 2022 | ||||||||||
(In Thousands) | |||||||||||
Goodwill | $ | $ | |||||||||
Additions | |||||||||||
Balance at end of period | |||||||||||
Other intangible assets: | |||||||||||
Core deposits | |||||||||||
Trade name | |||||||||||
Total other intangible assets | |||||||||||
Total goodwill and other intangible assets | $ | $ |
Remainder of 2023 | $ | ||||
Year ending: | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Investment Securities Available-for-Sale | Net Change in Fair Value of Cash Flow Hedges | Postretirement Benefits | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustment for (income) expense recognized in earnings | |||||||||||||||||||||||
Balance at September 30, 2023 | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||
Investment Securities Available-for-Sale | Net Change in Fair Value of Cash Flow Hedges | Postretirement Benefits | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at June 30, 2022 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustment for (income) expense recognized in earnings | ( | ( | |||||||||||||||||||||
Balance at September 30, 2022 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Investment Securities Available-for-Sale | Net Change in Fair Value of Cash Flow Hedges | Postretirement Benefits | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustment for (income) expense recognized in earnings | |||||||||||||||||||||||
Balance at September 30, 2023 | $ | ( | $ | ( | $ | $ | ( |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Investment Securities Available-for-Sale | Net Change in Fair Value of Cash Flow Hedges | Postretirement Benefits | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustment for (income) expense recognized in earnings | ( | ( | |||||||||||||||||||||
Balance at September 30, 2022 | $ | ( | $ | ( | $ | $ | ( |
At September 30, 2023 | |||||||||||||||||||||||||||||
Notional Amount | Average Maturity | Weighted Average Rate | Fair Value | ||||||||||||||||||||||||||
Current Rate Paid | Received Fixed Swap Rate | ||||||||||||||||||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||||||||||||||||||
Interest rate swaps on loans | $ | % | % | $ | ( |
At December 31, 2022 | |||||||||||||||||||||||||||||
Notional Amount | Average Maturity | Weighted Average Rate | Fair Value | ||||||||||||||||||||||||||
Current Rate Paid | Received Fixed Swap Rate | ||||||||||||||||||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||||||||||||||||||
Interest rate swaps on loans | $ | % | % | $ | ( |
Notional Amount Maturing | |||||||||||||||||||||||||||||||||||||||||||||||
Number of Positions | Less than 1 year | Less than 2 years | Less than 3 years | Less than 4 years | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Loan level derivatives | |||||||||||||||||||||||||||||||||||||||||||||||
Receive fixed, pay variable | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Pay fixed, receive variable | |||||||||||||||||||||||||||||||||||||||||||||||
Risk participation-out agreements | |||||||||||||||||||||||||||||||||||||||||||||||
Risk participation-in agreements | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||||||||||||||
Buys foreign currency, sells U.S. currency | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Sells foreign currency, buys U.S. currency |
Notional Amount Maturing | |||||||||||||||||||||||||||||||||||||||||||||||
Number of Positions | Less than 1 year | Less than 2 years | Less than 3 years | Less than 4 years | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Loan level derivatives | |||||||||||||||||||||||||||||||||||||||||||||||
Receive fixed, pay variable | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Pay fixed, receive variable | |||||||||||||||||||||||||||||||||||||||||||||||
Risk participation-out agreements | |||||||||||||||||||||||||||||||||||||||||||||||
Risk participation-in agreements | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||||||||||||||
Buys foreign currency, sells U.S. currency | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Sells foreign currency, buys U.S. currency |
At September 30, 2023 | |||||||||||||||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | Net Amount | |||||||||||||||||||||||||||||||
Financial Instruments Pledged | Cash Collateral Pledged | ||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Loan level derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Risk participation-out agreements | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Liability derivatives | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Loan level derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Risk participation-in agreements | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
At December 31, 2022 | |||||||||||||||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | Net Amount | |||||||||||||||||||||||||||||||
Financial Instruments Pledged | Cash Collateral Pledged | ||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Loan level derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Risk participation-out agreements | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Liability derivatives | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Loan level derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Risk participation-in agreements | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Fair Value | |||||||||||
Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | ||||||||||
(Dollars in Thousands) | |||||||||||
Derivatives designated as hedges | $ | ( | $ | ( | |||||||
(Loss) gain in OCI on derivatives (effective portion), net of tax | $ | ( | $ | ( | |||||||
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion) | $ | ( | $ |
Three Months Ended | |||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||
Basic | Fully Diluted | Basic | Fully Diluted | ||||||||||||||||||||
(Dollars in Thousands, Except Per Share Amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||
Effect of dilutive securities | — | — | |||||||||||||||||||||
Adjusted weighted average shares outstanding | |||||||||||||||||||||||
EPS | $ | $ | $ | $ |
Nine Months Ended | |||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||
Basic | Fully Diluted | Basic | Fully Diluted | ||||||||||||||||||||
(Dollars in Thousands, Except Per Share Amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||
Effect of dilutive securities | — | — | |||||||||||||||||||||
Adjusted weighted average shares outstanding | |||||||||||||||||||||||
EPS | $ | $ | $ | $ |
Carrying Value as of September 30, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
GSE debentures | $ | $ | $ | $ | |||||||||||||||||||
GSE CMOs | |||||||||||||||||||||||
GSE MBSs | |||||||||||||||||||||||
Municipal obligations | |||||||||||||||||||||||
Corporate debt obligations | |||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||
Total investment securities available-for-sale | $ | $ | $ | $ | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate derivatives | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Loan level derivatives | |||||||||||||||||||||||
Risk participation-out agreements | |||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Loan level derivatives | |||||||||||||||||||||||
Risk participation-in agreements | |||||||||||||||||||||||
Foreign exchange contracts |
Carrying Value as of December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
GSE debentures | $ | $ | $ | $ | |||||||||||||||||||
GSE CMOs | |||||||||||||||||||||||
GSE MBSs | |||||||||||||||||||||||
Corporate debt obligations | |||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||
Total investment securities available-for-sale | $ | $ | $ | $ | |||||||||||||||||||
Interest rate derivatives | |||||||||||||||||||||||
Loan level derivatives | |||||||||||||||||||||||
Risk participation-out agreements | |||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate derivatives | $ | $ | $ | $ | |||||||||||||||||||
Loan level derivatives | |||||||||||||||||||||||
Risk participation-in agreements | |||||||||||||||||||||||
Foreign exchange contracts |
Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis | |||||||||||||||||||||||||||||
Financial Instrument | Estimated Fair Value | Valuation Technique(s) | Significant Unobservable Inputs | Range of Inputs | Weighted Average | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Municipal obligations | $ | Discounted Cash Flow | Discount Rate from Bloomberg BVAL | % | |||||||||||||||||||||||||
Corporate debt obligations | Observable Bids | Bloomberg TRACE | |||||||||||||||||||||||||||
Corporate debt obligations | Discounted Cash Flow | Discount Rate from Bloomberg/BVAL | % | % | |||||||||||||||||||||||||
Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities - Recurring Basis | |||||||||||
Nine Months Ended September 30, 2023 | |||||||||||
(In Thousands) | |||||||||||
Municipal obligations | Corporate debt obligations | ||||||||||
Beginning balance | $ | $ | |||||||||
Purchases | |||||||||||
Included in comprehensive income | ( | ( | |||||||||
Transfers in | |||||||||||
Transfers out | |||||||||||
Sales | ( | ||||||||||
Maturities, calls, and paydowns | ( | ||||||||||
Ending balance | $ | $ |
Carrying Value as of September 30, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||||
Collateral-dependent impaired loans and leases | $ | $ | $ | $ | |||||||||||||||||||
Repossessed assets | |||||||||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | $ | $ | $ |
Carrying Value as of December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||||
Collateral-dependent impaired loans and leases | $ | $ | $ | $ | |||||||||||||||||||
Repossessed assets | |||||||||||||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | $ | $ | $ |
Fair Value | Valuation Technique | ||||||||||||||||
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Collateral-dependent impaired loans and leases | $ | $ | Appraisal of collateral (1) | ||||||||||||||
Fair Value Measurements at September 30, 2023 | |||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | |||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Loans and leases, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Certificates of deposits | |||||||||||||||||||||||||||||
Borrowed funds | |||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2022 | |||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | |||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Loans and leases, net | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||||
Borrowed funds | |||||||||||||||||||||||||||||
At September 30, 2023 | At December 31, 2022 | ||||||||||
(In Thousands) | |||||||||||
Financial instruments whose contract amounts represent credit risk: | |||||||||||
Commitments to originate loans and leases: | |||||||||||
Commercial real estate | $ | $ | |||||||||
Commercial | |||||||||||
Residential mortgage | |||||||||||
Unadvanced portion of loans and leases | |||||||||||
Unused lines of credit: | |||||||||||
Home equity | |||||||||||
Other consumer | |||||||||||
Other commercial | |||||||||||
Unused letters of credit: | |||||||||||
Financial standby letters of credit | |||||||||||
Performance standby letters of credit | |||||||||||
Commercial and similar letters of credit | |||||||||||
Interest rate derivatives | |||||||||||
Loan level derivatives (Notional principal amounts): | |||||||||||
Receive fixed, pay variable | |||||||||||
Pay fixed, receive variable | |||||||||||
Risk participation-out agreements | |||||||||||
Risk participation-in agreements | |||||||||||
Foreign exchange contracts (Notional amounts): | |||||||||||
Buys foreign currency, sells U.S. currency | |||||||||||
Sells foreign currency, buys U.S. currency |
Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | ||||||||||
(In Thousands) | |||||||||||
The components of lease expense was as follows: | |||||||||||
Operating lease cost | $ | $ | |||||||||
Supplemental cash flow information related to leases was as follows: | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new lease obligations: | |||||||||||
Operating leases assets | $ | $ | |||||||||
Operating leases liabilities |
At September 30, 2023 | At December 31, 2022 | ||||||||||
(In Thousands) | |||||||||||
Supplemental balance sheet information related to leases was as follows: | |||||||||||
Operating Leases | |||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Operating lease liabilities | |||||||||||
Weighted Average Remaining Lease Term | |||||||||||
Operating leases | |||||||||||
Weighted Average Discount Rate | |||||||||||
Operating leases | |||||||||||
Minimum Rental Payments | |||||
September 30, 2023 | |||||
(In Thousands) | |||||
Remainder of 2023 | $ | ||||
Year ending: | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ | ||||
Less imputed interest | ( | ||||
Present value of lease liability | $ |
At and for the Three Months Ended | |||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||||||||||||
PER COMMON SHARE DATA | |||||||||||||||||||||||||||||
Earnings per share - Basic | $ | 0.26 | $ | 0.25 | $ | 0.09 | $ | 0.39 | $ | 0.39 | |||||||||||||||||||
Earnings per share - Diluted | 0.26 | 0.25 | 0.09 | 0.39 | 0.39 | ||||||||||||||||||||||||
Book value per share (end of period) | 13.03 | 13.11 | 13.14 | 12.91 | 12.54 | ||||||||||||||||||||||||
Tangible book value per share (end of period) (1) | 10.02 | 10.07 | 10.08 | 10.80 | 10.43 | ||||||||||||||||||||||||
Dividends paid per common share | 0.135 | 0.135 | 0.135 | 0.135 | 0.130 | ||||||||||||||||||||||||
Stock price (end of period) | 9.11 | 8.74 | 10.50 | 14.15 | 11.65 | ||||||||||||||||||||||||
PERFORMANCE RATIOS (2) | |||||||||||||||||||||||||||||
Net interest margin (taxable equivalent basis) | 3.18 | % | 3.26 | % | 3.36 | % | 3.81 | % | 3.80 | % | |||||||||||||||||||
Return on average assets | 0.81 | % | 0.78 | % | 0.27 | % | 1.34 | % | 1.40 | % | |||||||||||||||||||
Return on average tangible assets (1) | 0.83 | % | 0.79 | % | 0.28 | % | 1.37 | % | 1.43 | % | |||||||||||||||||||
Return on average stockholders' equity | 7.78 | % | 7.44 | % | 2.61 | % | 12.09 | % | 12.29 | % | |||||||||||||||||||
Return on average tangible stockholders' equity (1) | 10.09 | % | 9.67 | % | 3.43 | % | 14.48 | % | 14.72 | % | |||||||||||||||||||
Dividend payout ratio (1) | 52.81 | % | 54.78 | % | 158.33 | % | 34.94 | % | 33.07 | % | |||||||||||||||||||
Efficiency ratio (3) | 64.39 | % | 63.20 | % | 65.44 | % | 53.01 | % | 52.98 | % | |||||||||||||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||||||||||||
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.47 | % | 0.05 | % | 0.02 | % | 0.02 | % | (0.01) | % | |||||||||||||||||||
Nonperforming loans and leases as a percentage of total loans and leases | 0.55 | % | 0.50 | % | 0.31 | % | 0.19 | % | 0.24 | % | |||||||||||||||||||
Nonperforming assets as a percentage of total assets | 0.46 | % | 0.42 | % | 0.25 | % | 0.17 | % | 0.21 | % | |||||||||||||||||||
Total allowance for loan and lease losses as a percentage of total loans and leases | 1.27 | % | 1.35 | % | 1.31 | % | 1.29 | % | 1.27 | % | |||||||||||||||||||
CAPITAL RATIOS | |||||||||||||||||||||||||||||
Stockholders' equity to total assets | 10.36 | % | 10.37 | % | 10.11 | % | 10.80 | % | 11.08 | % | |||||||||||||||||||
Tangible equity ratio (1) | 8.16 | % | 8.16 | % | 7.94 | % | 9.20 | % | 9.39 | % | |||||||||||||||||||
FINANCIAL CONDITION DATA | |||||||||||||||||||||||||||||
Total assets | $ | 11,180,555 | $ | 11,206,078 | $ | 11,522,485 | $ | 9,185,836 | $ | 8,695,708 | |||||||||||||||||||
Total loans and leases | 9,380,782 | 9,340,799 | 9,246,965 | 7,644,388 | 7,421,304 | ||||||||||||||||||||||||
Allowance for loan and lease losses | 119,081 | 125,817 | 120,865 | 98,482 | 94,169 | ||||||||||||||||||||||||
Allowance for investment security losses | 517 | 433 | 301 | 102 | 48 | ||||||||||||||||||||||||
Investment securities available-for-sale | 880,412 | 910,210 | 1,067,032 | 656,766 | 675,692 | ||||||||||||||||||||||||
Goodwill and identified intangible assets | 267,394 | 269,348 | 271,302 | 162,208 | 162,329 | ||||||||||||||||||||||||
Total deposits | 8,566,013 | 8,517,013 | 8,456,462 | 6,522,146 | 6,735,605 | ||||||||||||||||||||||||
Total borrowed funds | 1,135,068 | 1,226,270 | 1,630,102 | 1,432,652 | 758,768 | ||||||||||||||||||||||||
Stockholders' equity | 1,157,871 | 1,162,308 | 1,165,066 | 992,125 | 963,618 | ||||||||||||||||||||||||
(Continued) |
At and for the Three Months Ended | |||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||||||||||||
EARNINGS DATA | |||||||||||||||||||||||||||||
Net interest income | $ | 84,070 | $ | 86,037 | $ | 86,049 | $ | 80,030 | $ | 78,026 | |||||||||||||||||||
Provision (credit) for credit losses | 2,947 | 5,726 | 25,542 | 5,725 | 2,835 | ||||||||||||||||||||||||
Non-interest income | 5,508 | 5,462 | 12,937 | 9,056 | 6,834 | ||||||||||||||||||||||||
Non-interest expense | 57,679 | 57,825 | 64,776 | 47,225 | 44,959 | ||||||||||||||||||||||||
Net income | 22,701 | 21,850 | 7,560 | 29,695 | 30,149 |
At and for the Three Months Ended September 30, | At and for the Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Reported Pretax Income | $ | 28,868 | $ | 37,066 | $ | 65,351 | $ | 103,813 | |||||||||||||||
Less: | |||||||||||||||||||||||
Gains on the sale of investment securities (1) | — | — | 1,704 | — | |||||||||||||||||||
Add: | |||||||||||||||||||||||
Day 1 PCSB CECL provision | — | — | 16,744 | — | |||||||||||||||||||
Merger and acquisition expense (2) | — | 1,073 | 7,411 | 1,608 | |||||||||||||||||||
Operating Pretax Income | $ | 28,868 | 38,139 | 87,802 | 105,421 | ||||||||||||||||||
Effective tax rate | 21.4 | % | 18.7 | % | 20.3 | % | 22.9 | % | |||||||||||||||
Provision for income taxes | 6,167 | 7,118 | 17,789 | 24,132 | |||||||||||||||||||
Operating earnings after tax | $ | 22,701 | $ | 31,021 | $ | 70,013 | $ | 81,289 | |||||||||||||||
Operating earnings per common share: | |||||||||||||||||||||||
Basic | $ | 0.26 | $ | 0.40 | $ | 0.80 | $ | 1.05 | |||||||||||||||
Diluted | $ | 0.26 | $ | 0.40 | 0.79 | $ | 1.05 | ||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Operating earnings | $ | 22,701 | $ | 23,227 | $ | 23,283 | $ | 30,015 | $ | 31,021 | |||||||||||||||||||
Average total assets | $ | 11,180,635 | $ | 11,272,672 | $ | 11,131,087 | $ | 8,857,631 | $ | 8,586,420 | |||||||||||||||||||
Less: Average goodwill and average identified intangible assets, net | 268,199 | 270,147 | 278,135 | 162,266 | 162,387 | ||||||||||||||||||||||||
Average tangible assets | $ | 10,912,436 | $ | 11,002,525 | $ | 10,852,952 | $ | 8,695,365 | $ | 8,424,033 |
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Return on average assets (annualized) | 0.81% | 0.78% | 0.27% | 1.34% | 1.40% | ||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Gains on the sale of investment securities | —% | —% | 0.05% | 0.01% | —% | ||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Day 1 PCSB CECL provision | —% | —% | 0.47% | —% | —% | ||||||||||||||||||||||||
Merger and acquisition expenses | —% | 0.03% | 0.18% | 0.02% | 0.04% | ||||||||||||||||||||||||
Operating return on average assets (annualized) | 0.81% | 0.81% | 0.87% | 1.35% | 1.44% | ||||||||||||||||||||||||
Return on average tangible assets (annualized) | 0.83% | 0.79% | 0.28% | 1.37% | 1.43% | ||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Gains on the sale of investment securities | —% | —% | 0.05% | 0.01% | —% | ||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Day 1 PCSB CECL provision | — | % | —% | 0.48% | —% | —% | |||||||||||||||||||||||
Merger and acquisition expenses | —% | 0.03% | 0.18% | 0.02% | 0.04% | ||||||||||||||||||||||||
Operating return on average tangible assets (annualized) | 0.83% | 0.82% | 0.89% | 1.38% | 1.47% | ||||||||||||||||||||||||
Average total stockholders' equity | $ | 1,167,727 | $ | 1,174,167 | $ | 1,159,635 | $ | 982,306 | $ | 981,379 | |||||||||||||||||||
Less: Average goodwill and average identified intangible assets, net | 268,199 | 270,147 | 278,135 | 162,266 | 162,387 | ||||||||||||||||||||||||
Average tangible stockholders' equity | $ | 899,528 | $ | 904,020 | $ | 881,500 | $ | 820,040 | $ | 818,992 | |||||||||||||||||||
Return on average stockholders' equity (annualized) | 7.78% | 7.44% | 2.61% | 12.09% | 12.29% | ||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Gains on the sale of investment securities | —% | —% | 0.45% | 0.11% | —% | ||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Day 1 PCSB CECL provision | —% | —% | 4.46% | —% | —% | ||||||||||||||||||||||||
Merger and acquisition expenses | —% | 0.28% | 1.71% | 0.21% | 0.36% | ||||||||||||||||||||||||
Operating return on average stockholders' equity (annualized) | 7.78% | 7.72% | 8.33% | 12.19% | 12.65% | ||||||||||||||||||||||||
Return on average tangible stockholders' equity (annualized) | 10.09% | 9.67% | 3.43% | 14.48% | 14.72% | ||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Gains on the sale of investment securities | —% | —% | 0.60% | 0.13% | —% | ||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Day 1 PCSB CECL provision | —% | —% | 5.87% | —% | —% | ||||||||||||||||||||||||
Merger and acquisition expenses | —% | 0.36% | 2.25% | 0.26% | 0.43% | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Operating return on average tangible stockholders' equity (annualized) | 10.09% | 10.03% | 10.95% | 14.61% | 15.15% |
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Net income, as reported | $ | 22,701 | $ | 21,850 | $ | 7,560 | $ | 29,695 | $ | 30,149 | |||||||||||||||||||
Average total assets | $ | 11,180,635 | $ | 11,272,672 | $ | 11,131,087 | $ | 8,857,631 | $ | 8,586,420 | |||||||||||||||||||
Less: Average goodwill and average identified intangible assets, net | 268,199 | 270,147 | 278,135 | 162,266 | 162,387 | ||||||||||||||||||||||||
Average tangible assets | $ | 10,912,436 | $ | 11,002,525 | $ | 10,852,952 | $ | 8,695,365 | $ | 8,424,033 | |||||||||||||||||||
Return on average tangible assets (annualized) | 0.83% | 0.79% | 0.28% | 1.37% | 1.43% | ||||||||||||||||||||||||
Average total stockholders' equity | $ | 1,167,727 | $ | 1,174,167 | $ | 1,159,635 | $ | 982,306 | $ | 981,379 | |||||||||||||||||||
Less: Average goodwill and average identified intangible assets, net | 268,199 | 270,147 | 278,135 | 162,266 | 162,387 | ||||||||||||||||||||||||
Average tangible stockholders' equity | $ | 899,528 | $ | 904,020 | $ | 881,500 | $ | 820,040 | $ | 818,992 | |||||||||||||||||||
Return on average tangible stockholders' equity (annualized) | 10.09% | 9.67% | 3.43% | 14.48% | 14.72% |
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Total stockholders' equity | $ | 1,157,871 | $ | 1,162,308 | $ | 1,165,066 | $ | 992,125 | $ | 963,618 | |||||||||||||||||||
Less: Goodwill and identified intangible assets, net | 267,394 | 269,348 | 271,302 | 162,208 | 162,329 | ||||||||||||||||||||||||
Tangible stockholders' equity | $ | 890,477 | $ | 892,960 | $ | 893,764 | $ | 829,917 | $ | 801,289 | |||||||||||||||||||
Total assets | $ | 11,180,555 | $ | 11,206,078 | $ | 11,522,485 | $ | 9,185,836 | $ | 8,695,708 | |||||||||||||||||||
Less: Goodwill and identified intangible assets, net | 267,394 | 269,348 | 271,302 | 162,208 | 162,329 | ||||||||||||||||||||||||
Tangible assets | $ | 10,913,161 | $ | 10,936,730 | $ | 11,251,183 | $ | 9,023,628 | $ | 8,533,379 | |||||||||||||||||||
Tangible equity ratio | 8.16% | 8.16% | 7.94% | 9.20% | 9.39% |
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Tangible stockholders' equity | $ | 890,477 | $ | 892,960 | $ | 893,764 | $ | 829,917 | $ | 801,289 | |||||||||||||||||||
Common shares issued | 96,998,075 | 96,998,075 | 96,998,075 | 85,177,172 | 85,177,172 | ||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Treasury shares | 7,350,981 | 7,734,891 | 7,734,891 | 7,731,445 | 7,730,945 | ||||||||||||||||||||||||
Unallocated ESOP | — | — | — | — | 4,833 | ||||||||||||||||||||||||
Unvested restricted stock | 780,859 | 598,049 | 598,049 | 601,495 | 601,995 | ||||||||||||||||||||||||
Common shares outstanding | 88,866,235 | 88,665,135 | 88,665,135 | 76,844,232 | 76,839,399 | ||||||||||||||||||||||||
Tangible book value per share | $ | 10.02 | $ | 10.07 | $ | 10.08 | $ | 10.80 | $ | 10.43 |
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Dividends paid | $ | 11,989 | $ | 11,969 | $ | 11,970 | $ | 10,374 | $ | 9,969 | |||||||||||||||||||
Net income, as reported | $ | 22,701 | $ | 21,850 | $ | 7,560 | $ | 29,695 | $ | 30,149 | |||||||||||||||||||
Dividend payout ratio | 52.81% | 54.78% | 158.33% | 34.94% | 33.07% |
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||
Balance | Percent of Total | Balance | Percent of Total | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Commercial real estate loans: | |||||||||||||||||||||||
Commercial real estate | $ | 3,969,956 | 42.3 | % | $ | 3,046,746 | 39.9 | % | |||||||||||||||
Multi-family mortgage | 1,356,056 | 14.5 | % | 1,150,597 | 15.1 | % | |||||||||||||||||
Construction | 343,756 | 3.7 | % | 206,805 | 2.7 | % | |||||||||||||||||
Total commercial real estate loans | 5,669,768 | 60.5 | % | 4,404,148 | 57.7 | % | |||||||||||||||||
Commercial loans and leases: | |||||||||||||||||||||||
Commercial | 867,514 | 9.2 | % | 752,948 | 9.9 | % | |||||||||||||||||
Equipment financing | 1,329,673 | 14.2 | % | 1,216,585 | 15.9 | % | |||||||||||||||||
Condominium association | 44,188 | 0.5 | % | 46,966 | 0.6 | % | |||||||||||||||||
Total commercial loans and leases | 2,241,375 | 23.9 | % | 2,016,499 | 26.4 | % | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||||
Residential mortgage | 1,080,740 | 11.5 | % | 844,614 | 11.0 | % | |||||||||||||||||
Home equity | 340,550 | 3.6 | % | 322,622 | 4.2 | % | |||||||||||||||||
Other consumer | 48,349 | 0.5 | % | 56,505 | 0.7 | % | |||||||||||||||||
Total consumer loans | 1,469,639 | 15.6 | % | 1,223,741 | 15.9 | % | |||||||||||||||||
Total loans and leases | 9,380,782 | 100.0 | % | 7,644,388 | 100.0 | % | |||||||||||||||||
Allowance for loan and lease losses | (119,081) | (98,482) | |||||||||||||||||||||
Net loans and leases | $ | 9,261,701 | $ | 7,545,906 |
At September 30, 2023 | At December 31, 2022 | Dollar Change | Percent Change (Annualized) | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Commercial real estate | $ | 5,669,768 | $ | 4,404,148 | $ | 1,265,620 | 38.3 | % | |||||||||||||||
Commercial | 2,241,375 | 2,016,499 | 224,876 | 14.9 | % | ||||||||||||||||||
Consumer | 1,469,639 | 1,223,741 | 245,898 | 26.8 | % | ||||||||||||||||||
Total loans and leases | $ | 9,380,782 | $ | 7,644,388 | $ | 1,736,394 | 30.3 | % | |||||||||||||||
At September 30, 2023 | At December 31, 2022 | ||||||||||
(Dollars in Thousands) | |||||||||||
Nonperforming loans and leases: | |||||||||||
Nonaccrual loans and leases: | |||||||||||
Commercial real estate | $ | 23,263 | $ | 607 | |||||||
Multi-family mortgage | 1,318 | — | |||||||||
Construction | 2,316 | 707 | |||||||||
Total commercial real estate loans | 26,897 | 1,314 | |||||||||
Commercial | 5,406 | 464 | |||||||||
Equipment financing | 13,974 | 9,653 | |||||||||
Condominium association | — | 58 | |||||||||
Total commercial loans and leases | 19,380 | 10,175 | |||||||||
Residential mortgage | 4,249 | 2,680 | |||||||||
Home equity | 713 | 723 | |||||||||
Other consumer | 2 | 2 | |||||||||
Total consumer loans | 4,964 | 3,405 | |||||||||
Total nonaccrual loans and leases | 51,241 | 14,894 | |||||||||
Other repossessed assets | 299 | 408 | |||||||||
Total nonperforming assets | $ | 51,540 | $ | 15,302 | |||||||
Loans and leases past due greater than 90 days and accruing | $ | 1,175 | $ | 33 | |||||||
Total delinquent loans and leases 61-90 days past due | 28,284 | 2,218 | |||||||||
Restructured loans and leases not included in nonperforming assets | — | 16,385 | |||||||||
Total nonperforming loans and leases as a percentage of total loans and leases | 0.55 | % | 0.19 | % | |||||||
Total nonperforming assets as a percentage of total assets | 0.46 | % | 0.17 | % | |||||||
Total delinquent loans and leases 61-90 days past due as a percentage of total loans and leases | 0.30 | % | 0.03 | % |
At and for the Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at June 30, 2023 | $ | 84,301 | $ | 35,634 | $ | 5,882 | $ | 125,817 | |||||||||||||||
Charge-offs | — | (11,047) | (29) | (11,076) | |||||||||||||||||||
Recoveries | 3 | 89 | 10 | 102 | |||||||||||||||||||
Provision (credit) for loan and lease losses | (5,524) | 8,829 | 933 | 4,238 | |||||||||||||||||||
Balance at September 30, 2023 | $ | 78,780 | $ | 33,505 | $ | 6,796 | $ | 119,081 | |||||||||||||||
Total loans and leases | $ | 5,669,768 | $ | 2,241,375 | $ | 1,469,639 | $ | 9,380,782 | |||||||||||||||
Total allowance for loan and lease losses as a percentage of total loans and leases | 1.39 | % | 1.49 | % | 0.46 | % | 1.27 | % |
At and for the Three Months Ended September 30, 2022 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at June 30, 2022 | $ | 70,027 | $ | 20,105 | $ | 3,056 | $ | 93,188 | |||||||||||||||
Charge-offs | — | (584) | (14) | (598) | |||||||||||||||||||
Recoveries | 6 | 763 | 8 | 777 | |||||||||||||||||||
Provision (credit) for loan and lease losses | (2,573) | 2,984 | 391 | 802 | |||||||||||||||||||
Balance at September 30, 2022 | $ | 67,460 | $ | 23,268 | $ | 3,441 | $ | 94,169 | |||||||||||||||
Total loans and leases | $ | 4,269,512 | $ | 1,933,645 | $ | 1,218,147 | $ | 7,421,304 | |||||||||||||||
Total allowance for loan and lease losses as a percentage of total loans and leases | 1.58 | % | 1.20 | % | 0.28 | % | 1.27 | % |
At and for the Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | 68,154 | $ | 26,604 | $ | 3,724 | $ | 98,482 | |||||||||||||||
Charge-offs | — | (13,475) | (38) | (13,513) | |||||||||||||||||||
Recoveries | 15 | 951 | 25 | 991 | |||||||||||||||||||
Provision (credit) for loan and lease losses | 10,611 | 19,425 | 3,085 | 33,121 | |||||||||||||||||||
Balance at September 30, 2023 | $ | 78,780 | $ | 33,505 | $ | 6,796 | $ | 119,081 | |||||||||||||||
Total loans and leases | $ | 5,669,768 | $ | 2,241,375 | $ | 1,469,639 | $ | 9,380,782 | |||||||||||||||
Total allowance for loan and lease losses as a percentage of total loans and leases | 1.39 | % | 1.49 | % | 0.46 | % | 1.27 | % |
At and for the Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Commercial Real Estate | Commercial | Consumer | Total | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Balance at December 31, 2021 | $ | 69,213 | $ | 27,055 | $ | 2,816 | $ | 99,084 | |||||||||||||||
Charge-offs | (37) | (4,417) | (20) | (4,474) | |||||||||||||||||||
Recoveries | 18 | 1,395 | 52 | 1,465 | |||||||||||||||||||
Provision (credit) for loan and lease losses | (1,734) | (765) | 593 | (1,906) | |||||||||||||||||||
Balance at September 30, 2022 | $ | 67,460 | $ | 23,268 | $ | 3,441 | $ | 94,169 | |||||||||||||||
Total loans and leases | $ | 4,269,512 | $ | 1,933,645 | $ | 1,218,147 | $ | 7,421,304 | |||||||||||||||
Total allowance for loan and lease losses as a percentage of total loans and leases | 1.58 | % | 1.20 | % | 0.28 | % | 1.27 | % |
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||||||||||||||
Amount | Percent of Allowance in Each Category to Total Allowance | Percent of Loans in Each Category to Total Loans | Amount | Percent of Allowance in Each Category to Total Allowance | Percent of Loans in Each Category to Total Loans | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 50,688 | 42.5 | % | 42.3 | % | $ | 44,536 | 45.3 | % | 39.9 | % | |||||||||||||||||||||||
Multi-family mortgage | 17,045 | 14.3 | % | 14.5 | % | 16,885 | 17.1 | % | 15.1 | % | |||||||||||||||||||||||||
Construction | 11,047 | 9.3 | % | 3.7 | % | 6,733 | 6.8 | % | 2.7 | % | |||||||||||||||||||||||||
Total commercial real estate loans | 78,780 | 66.1 | % | 60.5 | % | 68,154 | 69.2 | % | 57.7 | % | |||||||||||||||||||||||||
Commercial | 16,744 | 14.1 | % | 9.2 | % | 12,190 | 12.4 | % | 9.9 | % | |||||||||||||||||||||||||
Equipment financing | 16,624 | 14.0 | % | 14.2 | % | 14,315 | 14.5 | % | 15.9 | % | |||||||||||||||||||||||||
Condominium association | 137 | 0.1 | % | 0.5 | % | 99 | 0.1 | % | 0.6 | % | |||||||||||||||||||||||||
Total commercial loans | 33,505 | 28.2 | % | 23.9 | % | 26,604 | 27.0 | % | 26.4 | % | |||||||||||||||||||||||||
Residential mortgage | 3,966 | 3.3 | % | 11.5 | % | 1,894 | 1.9 | % | 11.0 | % | |||||||||||||||||||||||||
Home equity | 2,222 | 1.9 | % | 3.6 | % | 1,478 | 1.5 | % | 4.2 | % | |||||||||||||||||||||||||
Other consumer | 608 | 0.5 | % | 0.5 | % | 352 | 0.4 | % | 0.7 | % | |||||||||||||||||||||||||
Total consumer loans | 6,796 | 5.7 | % | 15.6 | % | 3,724 | 3.8 | % | 15.9 | % | |||||||||||||||||||||||||
Total | $ | 119,081 | 100.0 | % | 100.0 | % | $ | 98,482 | 100.0 | % | 100.0 | % |
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
GSE debentures | $ | 195,493 | $ | 168,893 | $ | 176,751 | $ | 152,422 | |||||||||||||||
GSE CMOs | 67,489 | 59,892 | 19,977 | 18,220 | |||||||||||||||||||
GSE MBSs | 192,370 | 166,462 | 159,824 | 140,576 | |||||||||||||||||||
Municipal obligations | 18,914 | 18,317 | — | — | |||||||||||||||||||
Corporate debt obligations | 25,484 | 24,623 | 14,076 | 13,764 | |||||||||||||||||||
U.S. Treasury bonds | 479,582 | 441,746 | 362,850 | 331,307 | |||||||||||||||||||
Foreign government obligations | 500 | 479 | 500 | 477 | |||||||||||||||||||
Total investment securities available-for-sale | $ | 979,832 | $ | 880,412 | $ | 733,978 | $ | 656,766 | |||||||||||||||
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||||||||||||||
Amount | Percent of Total | Weighted Average Rate | Amount | Percent of Total | Weighted Average Rate | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
Non-interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Demand checking accounts | $ | 1,745,137 | 20.4 | % | — | % | $ | 1,802,518 | 27.6 | % | — | % | |||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
NOW accounts | 647,476 | 7.6 | % | 0.68 | % | 544,118 | 8.3 | % | 0.18 | % | |||||||||||||||||||||||||
Savings accounts | 1,625,804 | 19.0 | % | 3.40 | % | 762,271 | 11.7 | % | 0.70 | % | |||||||||||||||||||||||||
Money market accounts | 2,161,359 | 25.2 | % | 2.23 | % | 2,174,952 | 33.4 | % | 1.63 | % | |||||||||||||||||||||||||
Certificate of deposit accounts | 1,491,844 | 17.4 | % | 3.49 | % | 928,143 | 14.2 | % | 1.68 | % | |||||||||||||||||||||||||
Brokered deposit accounts | 894,393 | 10.4 | % | 4.26 | % | 310,144 | 4.8 | % | 3.00 | % | |||||||||||||||||||||||||
Total interest-bearing deposits | 6,820,876 | 79.6 | % | 2.90 | % | 4,719,628 | 72.4 | % | 1.41 | % | |||||||||||||||||||||||||
Total deposits | $ | 8,566,013 | 100.0 | % | 2.31 | % | $ | 6,522,146 | 100.0 | % | 1.02 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Percent of Total Average Deposits | Weighted Average Rate | Average Balance | Percent of Total Average Deposits | Weighted Average Rate | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
Core deposits: | |||||||||||||||||||||||||||||||||||
Non-interest-bearing demand checking accounts | $ | 1,794,225 | 21.0 | % | — | % | $ | 1,908,459 | 27.6 | % | — | % | |||||||||||||||||||||||
NOW accounts | 681,929 | 8.0 | % | 0.67 | % | 607,210 | 8.8 | % | 0.38 | % | |||||||||||||||||||||||||
Savings accounts | 1,557,911 | 18.3 | % | 2.26 | % | 881,988 | 12.8 | % | 0.30 | % | |||||||||||||||||||||||||
Money market accounts | 2,177,528 | 25.5 | % | 2.88 | % | 2,423,920 | 35.1 | % | 0.66 | % | |||||||||||||||||||||||||
Total core deposits | 6,211,593 | 73.9 | % | 1.66 | % | 5,821,577 | 84.3 | % | 0.36 | % | |||||||||||||||||||||||||
Certificate of deposit accounts | 1,444,269 | 16.9 | % | 3.33 | % | 964,112 | 14.0 | % | 0.74 | % | |||||||||||||||||||||||||
Brokered deposit accounts | 882,351 | 10.3 | % | 5.03 | % | 117,058 | 1.7 | % | 0.92 | % | |||||||||||||||||||||||||
Total deposits | $ | 8,538,213 | 100.0 | % | 2.28 | % | $ | 6,902,747 | 100.0 | % | 0.43 | % | |||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Percent of Total Average Deposits | Weighted Average Rate | Average Balance | Percent of Total Average Deposits | Weighted Average Rate | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
Core deposits: | |||||||||||||||||||||||||||||||||||
Non-interest-bearing demand checking accounts | $ | 1,857,429 | 22.2 | % | — | % | $ | 1,891,698 | 27.1 | % | — | % | |||||||||||||||||||||||
NOW accounts | 741,951 | 8.8 | % | 0.56 | % | 603,243 | 8.6 | % | 0.20 | % | |||||||||||||||||||||||||
Savings accounts | 1,365,541 | 16.3 | % | 1.69 | % | 915,185 | 13.1 | % | 0.16 | % | |||||||||||||||||||||||||
Money market accounts | 2,227,404 | 26.6 | % | 2.52 | % | 2,423,207 | 34.8 | % | 0.42 | % | |||||||||||||||||||||||||
Total core deposits | 6,192,325 | 73.8 | % | 1.34 | % | 5,833,333 | 83.6 | % | 0.22 | % | |||||||||||||||||||||||||
Certificate of deposit accounts | 1,394,338 | 16.6 | % | 2.84 | % | 1,024,303 | 14.7 | % | 0.70 | % | |||||||||||||||||||||||||
Brokered deposit accounts | 798,800 | 9.5 | % | 4.97 | % | 121,724 | 1.7 | % | 0.45 | % | |||||||||||||||||||||||||
Total deposits | $ | 8,385,463 | 100.0 | % | 1.94 | % | $ | 6,979,360 | 100.0 | % | 0.29 | % |
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||
Amount | Weighted Average Rate | Amount | Weighted Average Rate | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Maturity period: | |||||||||||||||||||||||
Three months or less | $ | 75,979 | 3.34 | % | $ | 66,092 | 1.00 | % | |||||||||||||||
Over 3 months through 6 months | 118,395 | 3.66 | % | 42,008 | 1.83 | % | |||||||||||||||||
Over 6 months through 12 months | 207,047 | 4.20 | % | 62,489 | 1.82 | % | |||||||||||||||||
Over 12 months | 43,279 | 3.89 | % | 101,654 | 2.96 | % | |||||||||||||||||
Total certificate of deposit of $250,000 or more | $ | 444,700 | 3.88 | % | $ | 272,243 | 2.05 | % |
At September 30, 2023 | |||||||||||||||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||||||||||||||
Commercial | Consumer | Municipal | Brokered | Total | % | ||||||||||||||||||||||||||||||
Insured or Collateralized | $ | 1,897 | $ | 2,954 | $ | 301 | $ | 894 | $ | 6,046 | 71 | % | |||||||||||||||||||||||
Uninsured | 1,496 | 1,023 | — | — | 2,519 | 29 | % | ||||||||||||||||||||||||||||
Total | $ | 3,393 | $ | 3,977 | $ | 301 | $ | 894 | $ | 8,565 | 100 | % | |||||||||||||||||||||||
Composition | 40 | % | 46 | % | 4 | % | 10 | % | 100 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Borrowed funds: | |||||||||||||||||||||||
Average balance outstanding | $ | 1,156,654 | $ | 504,848 | $ | 1,340,768 | $ | 399,379 | |||||||||||||||
Maximum amount outstanding at any month-end during the period | 1,153,424 | 758,768 | 1,630,102 | 758,768 | |||||||||||||||||||
Balance outstanding at end of period | 1,135,068 | 758,768 | 1,135,068 | 758,768 | |||||||||||||||||||
Weighted average interest rate for the period | 4.69 | % | 2.53 | % | 4.64 | % | 2.19 | % | |||||||||||||||
Weighted average interest rate at end of period | 4.55 | % | 3.17 | % | 4.55 | % | 3.17 | % |
Carrying Amount | ||||||||||||||||||||||||||||||||
Issue Date | Rate | Maturity Date | Next Call Date | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||
June 26, 2003 | Variable; 3-month LIBOR fallback + 3.10% | June 26, 2033 | December 25, 2023 | $ | 4,900 | $ | 4,887 | |||||||||||||||||||||||||
March 17, 2004 | Variable; 3-month LIBOR fallback + 2.79% | March 17, 2034 | December 17, 2023 | 4,850 | 4,830 | |||||||||||||||||||||||||||
September 15, 2014 | 6.0% Fixed-to-Variable; 3-month LIBOR fallback + 3.315% | September 15, 2029 | September 15, 2024 | 74,402 | 74,327 | |||||||||||||||||||||||||||
Total | $ | 84,152 | $ | 84,044 |
At September 30, 2023 | At December 31, 2022 | |||||||
(Dollars in Thousands) | ||||||||
Interest rate derivatives (Notional amounts): | $ | 225,000 | $ | 150,000 | ||||
Loan level derivatives (Notional principal amounts): | ||||||||
Receive fixed, pay variable | $ | 1,758,794 | $ | 1,489,709 | ||||
Pay fixed, receive variable | 1,758,794 | 1,489,709 | ||||||
Risk participation-out agreements | 513,561 | 393,624 | ||||||
Risk participation-in agreements | 106,624 | 75,223 | ||||||
Foreign exchange contracts (Notional amounts): | ||||||||
Buys foreign currency, sells U.S. currency | $ | 3,664 | $ | 2,383 | ||||
Sells foreign currency, buys U.S. currency | 4,290 | 2,400 | ||||||
Fixed weighted average interest rate from the Company to counterparty | 2.93 | % | 2.65 | % | ||||
Floating weighted average interest rate from counterparty to the Company | 5.68 | % | 4.68 | % | ||||
Weighted average remaining term to maturity (in months) | 77 | 69 | ||||||
Fair value: | ||||||||
Recognized as an asset: | ||||||||
Interest rate derivatives | $ | — | $ | 34 | ||||
Loan level derivatives | 156,802 | 108,963 | ||||||
Risk participation-out agreements | 637 | 347 | ||||||
Foreign exchange contracts | 160 | 130 | ||||||
Recognized as a liability: | ||||||||
Interest rate derivatives | $ | 7,206 | $ | 3,170 | ||||
Loan level derivatives | 156,802 | 108,963 | ||||||
Risk participation-in agreements | 166 | 31 | ||||||
Foreign exchange contracts | 132 | 112 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Debt securities | $ | 887,612 | $ | 6,840 | 3.08 | % | $ | 714,226 | $ | 3,337 | 1.87 | % | |||||||||||||||||||||||
Marketable and restricted equity securities | 67,824 | 1,310 | 7.73 | % | 36,525 | 467 | 5.12 | % | |||||||||||||||||||||||||||
Short-term investments | 172,483 | 2,390 | 5.54 | % | 66,257 | 464 | 2.80 | % | |||||||||||||||||||||||||||
Total investments | 1,127,919 | 10,540 | 3.74 | % | 817,008 | 4,268 | 2.09 | % | |||||||||||||||||||||||||||
Commercial real estate loans (2) | 5,667,373 | 78,750 | 5.44 | % | 4,239,155 | 44,729 | 4.13 | % | |||||||||||||||||||||||||||
Commercial loans (2) | 939,492 | 15,295 | 6.38 | % | 731,095 | 8,492 | 4.55 | % | |||||||||||||||||||||||||||
Equipment financing (2) | 1,280,033 | 23,331 | 7.29 | % | 1,157,829 | 19,042 | 6.58 | % | |||||||||||||||||||||||||||
Consumer loans (2) | 1,471,985 | 19,237 | 5.21 | % | 1,206,968 | 12,165 | 4.02 | % | |||||||||||||||||||||||||||
Total loans and leases | 9,358,883 | 136,613 | 5.84 | % | 7,335,047 | 84,428 | 4.60 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 10,486,802 | 147,153 | 5.61 | % | 8,152,055 | 88,696 | 4.35 | % | |||||||||||||||||||||||||||
Allowance for loan and lease losses | (127,077) | (93,520) | |||||||||||||||||||||||||||||||||
Non-interest-earning assets | 820,910 | 527,885 | |||||||||||||||||||||||||||||||||
Total assets | $ | 11,180,635 | $ | 8,586,420 | |||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
NOW accounts | $ | 681,929 | 1,159 | 0.67 | % | $ | 607,210 | 579 | 0.38 | % | |||||||||||||||||||||||||
Savings accounts | 1,557,911 | 8,859 | 2.26 | % | 881,988 | 664 | 0.30 | % | |||||||||||||||||||||||||||
Money market accounts | 2,177,528 | 15,785 | 2.88 | % | 2,423,920 | 4,038 | 0.66 | % | |||||||||||||||||||||||||||
Certificate of deposit accounts | 1,444,269 | 12,128 | 3.33 | % | 964,112 | 1,803 | 0.74 | % | |||||||||||||||||||||||||||
Brokered deposit accounts | 882,351 | 11,185 | 5.03 | % | 117,058 | 270 | 0.92 | % | |||||||||||||||||||||||||||
Total interest-bearing deposits (3) | 6,743,988 | 49,116 | 2.89 | % | 4,994,288 | 7,354 | 0.58 | % | |||||||||||||||||||||||||||
Advances from the FHLB | 954,989 | 11,706 | 4.80 | % | 331,840 | 1,700 | 2.00 | % | |||||||||||||||||||||||||||
Subordinated debentures and notes | 84,134 | 1,378 | 6.55 | % | 83,989 | 1,295 | 6.17 | % | |||||||||||||||||||||||||||
Other borrowed funds | 117,531 | 790 | 2.67 | % | 89,019 | 268 | 1.20 | % | |||||||||||||||||||||||||||
Total borrowed funds | 1,156,654 | 13,874 | 4.69 | % | 504,848 | 3,263 | 2.53 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 7,900,642 | 62,990 | 3.16 | % | 5,499,136 | 10,617 | 0.77 | % | |||||||||||||||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Non-interest-bearing demand checking accounts (3) | 1,794,225 | 1,908,459 | |||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 318,041 | 197,446 | |||||||||||||||||||||||||||||||||
Total liabilities | 10,012,908 | 7,605,041 | |||||||||||||||||||||||||||||||||
Total stockholders' equity | 1,167,727 | 981,379 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 11,180,635 | $ | 8,586,420 | |||||||||||||||||||||||||||||||
Net interest income (tax-equivalent basis) / Interest-rate spread (4) | 84,163 | 2.45 | % | 78,079 | 3.58 | % | |||||||||||||||||||||||||||||
Less adjustment of tax-exempt income | 93 | 53 | |||||||||||||||||||||||||||||||||
Net interest income | $ | 84,070 | $ | 78,026 | |||||||||||||||||||||||||||||||
Net interest margin (5) | 3.18 | % | 3.80 | % |
Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Debt securities | $ | 971,855 | $ | 22,905 | 3.14 | % | $ | 720,266 | $ | 9,582 | 1.77 | % | |||||||||||||||||||||||
Marketable and restricted equity securities | 74,000 | 4,238 | 7.64 | % | 31,663 | 1,132 | 4.77 | % | |||||||||||||||||||||||||||
Short-term investments | 183,295 | 7,236 | 5.26 | % | 119,083 | 686 | 0.77 | % | |||||||||||||||||||||||||||
Total investments | 1,229,150 | 34,379 | 3.73 | % | 871,012 | 11,400 | 1.75 | % | |||||||||||||||||||||||||||
Commercial real estate loans (2) | 5,629,600 | 225,999 | 5.29 | % | 4,204,260 | 119,723 | 3.76 | % | |||||||||||||||||||||||||||
Commercial loans (2) | 915,420 | 42,814 | 6.17 | % | 727,333 | 23,564 | 4.28 | % | |||||||||||||||||||||||||||
Equipment financing (2) | 1,253,512 | 66,901 | 7.12 | % | 1,131,069 | 54,951 | 6.48 | % | |||||||||||||||||||||||||||
Consumer loans (2) | 1,469,025 | 55,210 | 5.01 | % | 1,191,294 | 32,304 | 3.62 | % | |||||||||||||||||||||||||||
Total loans and leases | 9,267,557 | 390,924 | 5.62 | % | 7,253,956 | 230,542 | 4.24 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 10,496,707 | 425,303 | 5.40 | % | 8,124,968 | 241,942 | 3.97 | % | |||||||||||||||||||||||||||
Allowance for loan and lease losses | (121,174) | (95,733) | |||||||||||||||||||||||||||||||||
Non-interest-earning assets | 819,447 | 515,234 | |||||||||||||||||||||||||||||||||
Total assets | $ | 11,194,980 | $ | 8,544,469 | |||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
NOW accounts | $ | 741,951 | 3,129 | 0.56 | % | $ | 603,243 | 898 | 0.20 | % | |||||||||||||||||||||||||
Savings accounts | 1,365,541 | 17,290 | 1.69 | % | 915,185 | 1,073 | 0.16 | % | |||||||||||||||||||||||||||
Money market accounts | 2,227,404 | 41,914 | 2.52 | % | 2,423,207 | 7,681 | 0.42 | % | |||||||||||||||||||||||||||
Certificate of deposit accounts | 1,394,338 | 29,605 | 2.84 | % | 1,024,303 | 5,345 | 0.70 | % | |||||||||||||||||||||||||||
Brokered deposit accounts | 798,800 | 29,693 | 4.97 | % | 121,724 | 410 | 0.45 | % | |||||||||||||||||||||||||||
Total interest-bearing deposits (3) | 6,528,034 | 121,631 | 2.49 | % | 5,087,662 | 15,407 | 0.40 | % | |||||||||||||||||||||||||||
Advances from the FHLBB | 1,135,845 | 40,524 | 4.70 | % | 207,090 | 2,376 | 1.51 | % | |||||||||||||||||||||||||||
Subordinated debentures and notes | 84,098 | 4,095 | 6.49 | % | 83,952 | 3,801 | 6.04 | % | |||||||||||||||||||||||||||
Other borrowed funds | 120,825 | 2,562 | 2.83 | % | 108,337 | 458 | 0.57 | % | |||||||||||||||||||||||||||
Total borrowed funds | 1,340,768 | 47,181 | 4.64 | % | 399,379 | 6,635 | 2.19 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 7,868,802 | 168,812 | 2.87 | % | 5,487,041 | 22,042 | 0.54 | % | |||||||||||||||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Non-interest-bearing demand checking accounts (3) | 1,857,429 | 1,891,698 | |||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 301,543 | 180,842 | |||||||||||||||||||||||||||||||||
Total liabilities | 10,027,774 | 7,559,581 | |||||||||||||||||||||||||||||||||
Total stockholders' equity | 1,167,206 | 984,888 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 11,194,980 | $ | 8,544,469 | |||||||||||||||||||||||||||||||
Net interest income (tax-equivalent basis) / Interest-rate spread (4) | 256,491 | 2.53 | % | 219,900 | 3.43 | % | |||||||||||||||||||||||||||||
Less adjustment of tax-exempt income | 335 | 159 | |||||||||||||||||||||||||||||||||
Net interest income | $ | 256,156 | $ | 219,741 | |||||||||||||||||||||||||||||||
Net interest margin (5) | 3.27 | % | 3.62 | % |
Three Months Ended September 30, 2023 as Compared to the Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2023 as Compared to the Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) Due To | Increase (Decrease) Due To | ||||||||||||||||||||||||||||||||||
Volume | Rate | Net Change | Volume | Rate | Net Change | ||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Debt securities | $ | 956 | $ | 2,547 | $ | 3,503 | $ | 4,143 | $ | 9,180 | $ | 13,323 | |||||||||||||||||||||||
Marketable and restricted equity securities | 529 | 314 | 843 | 2,142 | 964 | 3,106 | |||||||||||||||||||||||||||||
Short-term investments | 1,196 | 730 | 1,926 | 554 | 5,996 | 6,550 | |||||||||||||||||||||||||||||
Total investments | 2,681 | 3,591 | 6,272 | 6,839 | 16,140 | 22,979 | |||||||||||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||||
Commercial real estate loans | 17,523 | 16,498 | 34,021 | 48,302 | 57,974 | 106,276 | |||||||||||||||||||||||||||||
Commercial loans and leases | 2,822 | 3,981 | 6,803 | 7,110 | 12,140 | 19,250 | |||||||||||||||||||||||||||||
Equipment financing | 2,121 | 2,168 | 4,289 | 6,249 | 5,701 | 11,950 | |||||||||||||||||||||||||||||
Consumer loans | 2,742 | 4,330 | 7,072 | 8,318 | 14,588 | 22,906 | |||||||||||||||||||||||||||||
Total loans | 25,208 | 26,977 | 52,185 | 69,979 | 90,403 | 160,382 | |||||||||||||||||||||||||||||
Total change in interest and dividend income | 27,889 | 30,568 | 58,457 | 76,818 | 106,543 | 183,361 | |||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
NOW accounts | 81 | 499 | 580 | 253 | 1,978 | 2,231 | |||||||||||||||||||||||||||||
Savings accounts | 860 | 7,335 | 8,195 | 794 | 15,423 | 16,217 | |||||||||||||||||||||||||||||
Money market accounts | (451) | 12,198 | 11,747 | (666) | 34,899 | 34,233 | |||||||||||||||||||||||||||||
Certificate of deposit accounts | 1,286 | 9,039 | 10,325 | 2,564 | 21,696 | 24,260 | |||||||||||||||||||||||||||||
Brokered deposit accounts | 6,484 | 4,431 | 10,915 | 10,437 | 18,846 | 29,283 | |||||||||||||||||||||||||||||
Total deposits | 8,260 | 33,502 | 41,762 | 13,382 | 92,842 | 106,224 | |||||||||||||||||||||||||||||
Borrowed funds: | |||||||||||||||||||||||||||||||||||
Advances from the FHLB | 5,732 | 4,274 | 10,006 | 25,932 | 12,216 | 38,148 | |||||||||||||||||||||||||||||
Subordinated debentures and notes | 2 | 81 | 83 | 7 | 287 | 294 | |||||||||||||||||||||||||||||
Other borrowed funds | 108 | 414 | 522 | 59 | 2,045 | 2,104 | |||||||||||||||||||||||||||||
Total borrowed funds | 5,842 | 4,769 | 10,611 | 25,998 | 14,548 | 40,546 | |||||||||||||||||||||||||||||
Total change in interest expense | 14,102 | 38,271 | 52,373 | 39,380 | 107,390 | 146,770 | |||||||||||||||||||||||||||||
Change in tax-exempt income | 40 | — | 40 | 176 | — | 176 | |||||||||||||||||||||||||||||
Change in net interest income | $ | 13,747 | $ | (7,703) | $ | 6,044 | $ | 37,262 | $ | (847) | $ | 36,415 |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income—loans and leases: | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate loans | $ | 78,749 | $ | 44,727 | $ | 34,022 | 76.1 | % | $ | 225,998 | $ | 119,723 | $ | 106,275 | 88.8 | % | |||||||||||||||||||||||||||||||
Commercial loans | 15,245 | 8,441 | 6,804 | 80.6 | % | 42,683 | 23,405 | 19,278 | 82.4 | % | |||||||||||||||||||||||||||||||||||||
Equipment financing | 23,331 | 19,042 | 4,289 | 22.5 | % | 66,901 | 54,951 | 11,950 | 21.7 | % | |||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 11,691 | 7,560 | 4,131 | 54.6 | % | 34,194 | 21,675 | 12,519 | 57.8 | % | |||||||||||||||||||||||||||||||||||||
Other consumer loans | 7,545 | 4,605 | 2,940 | 63.8 | % | 21,015 | 10,629 | 10,386 | 97.7 | % | |||||||||||||||||||||||||||||||||||||
Total interest income—loans and leases | $ | 136,561 | $ | 84,375 | $ | 52,186 | 61.9 | % | $ | 390,791 | $ | 230,383 | $ | 160,408 | 69.6 | % | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | |||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income—investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | $ | 6,799 | $ | 3,337 | $ | 3,462 | 103.7 | % | $ | 22,703 | $ | 9,582 | $ | 13,121 | 136.9 | % | ||||||||||||||||||||||||||||||||||
Marketable and restricted equity securities | 1,310 | 467 | 843 | 180.5 | % | 4,238 | 1,132 | 3,106 | 274.4 | % | ||||||||||||||||||||||||||||||||||||||||
Short-term investments | 2,390 | 464 | 1,926 | 415.1 | % | 7,236 | 686 | 6,550 | 954.8 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest income—investments | $ | 10,499 | $ | 4,268 | $ | 6,231 | 146.0 | % | $ | 34,177 | $ | 11,400 | $ | 22,777 | 199.8 | % |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 1,159 | $ | 579 | $ | 580 | 100.2 | % | $ | 3,129 | $ | 898 | $ | 2,231 | 248.4 | % | |||||||||||||||||||||||||||||||
Savings accounts | 8,859 | 664 | 8,195 | 1,234.2 | % | 17,290 | 1,073 | 16,217 | 1,511.4 | % | |||||||||||||||||||||||||||||||||||||
Money market accounts | 15,785 | 4,038 | 11,747 | 290.9 | % | 41,914 | 7,681 | 34,233 | 445.7 | % | |||||||||||||||||||||||||||||||||||||
Certificate of deposit accounts | 12,128 | 1,803 | 10,325 | 572.7 | % | 29,605 | 5,345 | 24,260 | 453.9 | % | |||||||||||||||||||||||||||||||||||||
Brokered deposit accounts | 11,185 | 270 | 10,915 | 4,042.6 | % | 29,693 | 410 | 29,283 | 7,142.2 | % | |||||||||||||||||||||||||||||||||||||
Total interest expense - deposits | 49,116 | 7,354 | 41,762 | 567.9 | % | 121,631 | 15,407 | 106,224 | 689.5 | % | |||||||||||||||||||||||||||||||||||||
Borrowed funds: | |||||||||||||||||||||||||||||||||||||||||||||||
Advances from the FHLB | 11,706 | 1,700 | 10,006 | 588.6 | % | 40,524 | 2,376 | 38,148 | 1,605.6 | % | |||||||||||||||||||||||||||||||||||||
Subordinated debentures and notes | 1,378 | 1,295 | 83 | 6.4 | % | 4,095 | 3,801 | 294 | 7.7 | % | |||||||||||||||||||||||||||||||||||||
Other borrowed funds | 790 | 268 | 522 | 194.8 | % | 2,562 | 458 | 2,104 | 459.4 | % | |||||||||||||||||||||||||||||||||||||
Total interest expense - borrowed funds | 13,874 | 3,263 | 10,611 | 325.2 | % | 47,181 | 6,635 | 40,546 | 611.1 | % | |||||||||||||||||||||||||||||||||||||
Total interest expense | $ | 62,990 | $ | 10,617 | $ | 52,373 | 493.3 | % | $ | 168,812 | $ | 22,042 | $ | 146,770 | 665.9 | % |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Provision (credit) for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | (5,524) | $ | (2,573) | $ | (2,951) | (114.7) | % | $ | 10,611 | $ | (1,734) | $ | 12,345 | 711.9 | % | |||||||||||||||||||||||||||||||
Commercial | 8,829 | 2,984 | 5,845 | 195.9 | % | 19,425 | (765) | 20,190 | 2,639.2 | % | |||||||||||||||||||||||||||||||||||||
Consumer | 933 | 391 | 542 | 138.6 | % | 3,085 | 593 | 2,492 | 420.2 | % | |||||||||||||||||||||||||||||||||||||
Total provision (credit) for loan and lease losses | 4,238 | 802 | 3,436 | 428.4 | % | 33,121 | (1,906) | 35,027 | 1,837.7 | % | |||||||||||||||||||||||||||||||||||||
Unfunded credit commitments | (1,291) | 2,043 | (3,334) | (163.2) | % | 896 | 4,760 | (3,864) | (81.2) | % | |||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale | 84 | (10) | 94 | 940.0 | % | 415 | 48 | 367 | 764.6 | % | |||||||||||||||||||||||||||||||||||||
Total provision (credit) for credit losses | $ | 3,031 | $ | 2,835 | $ | 196 | 6.9 | % | $ | 34,432 | $ | — | $ | 2,902 | $ | 31,530 | 1,086.5 | % |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Deposit fees | $ | 3,024 | $ | 2,759 | $ | 265 | 9.6 | % | $ | 8,547 | $ | 8,003 | $ | 544 | 6.8 | % | |||||||||||||||||||||||||||||||
Loan fees | 639 | 349 | 290 | 83.1 | % | 1,521 | 1,762 | (241) | (13.7) | % | |||||||||||||||||||||||||||||||||||||
Loan level derivative income, net | 376 | 1,275 | (899) | (70.5) | % | 3,112 | 3,576 | (464) | (13.0) | % | |||||||||||||||||||||||||||||||||||||
Gain (loss) on investment securities, net | — | — | — | N/A | 1,704 | — | 1,704 | N/A | |||||||||||||||||||||||||||||||||||||||
Gain on sales of loans and leases held-for-sale | 225 | 889 | (664) | (74.7) | % | 2,171 | 1,524 | 647 | 42.5 | % | |||||||||||||||||||||||||||||||||||||
Other | 1,244 | 1,562 | (318) | (20.4) | % | 6,852 | 4,426 | 2,426 | 54.8 | % | |||||||||||||||||||||||||||||||||||||
Total non-interest income | $ | 5,508 | $ | 6,834 | $ | (1,326) | (19.4) | % | $ | 23,907 | $ | 19,291 | $ | 4,616 | 23.9 | % |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | $ | 33,491 | $ | 28,306 | $ | 5,185 | 18.3 | % | $ | 103,494 | $ | 83,962 | $ | 19,532 | 23.3 | % | |||||||||||||||||||||||||||||||
Occupancy | 4,983 | 3,906 | 1,077 | 27.6 | % | 15,076 | 11,997 | 3,079 | 25.7 | % | |||||||||||||||||||||||||||||||||||||
Equipment and data processing | 6,766 | 5,066 | 1,700 | 33.6 | % | 19,759 | 15,075 | 4,684 | 31.1 | % | |||||||||||||||||||||||||||||||||||||
Professional services | 2,368 | 1,069 | 1,299 | 121.5 | % | 5,784 | 3,514 | 2,270 | 64.6 | % | |||||||||||||||||||||||||||||||||||||
FDIC insurance | 2,152 | 709 | 1,443 | 203.5 | % | 6,005 | 2,176 | 3,829 | 176.0 | % | |||||||||||||||||||||||||||||||||||||
Advertising and marketing | 1,174 | 1,337 | (163) | (12.2) | % | 3,966 | 3,928 | 38 | 1.0 | % | |||||||||||||||||||||||||||||||||||||
Amortization of identified intangible assets | 1,955 | 120 | 1,835 | 1,529.2 | % | 5,875 | 374 | 5,501 | 1,470.9 | % | |||||||||||||||||||||||||||||||||||||
Merger and acquisition expense | — | 1,073 | (1,073) | (100.0) | % | 7,411 | 1,608 | 5,803 | 360.9 | % | |||||||||||||||||||||||||||||||||||||
Other | 4,790 | 3,373 | 1,417 | 42.0 | % | 12,910 | 9,683 | 3,227 | 33.3 | % | |||||||||||||||||||||||||||||||||||||
Total non-interest expense | $ | 57,679 | $ | 44,959 | $ | 12,720 | 28.3 | % | $ | 180,280 | $ | 132,317 | $ | 47,963 | 36.2 | % |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Income before provision for income taxes | $ | 28,868 | $ | 37,066 | $ | (8,198) | (22.1) | % | $ | 65,351 | $ | 103,813 | $ | (38,462) | (37.0) | % | |||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 6,167 | 6,917 | (750) | (10.8) | % | 13,240 | 23,764 | (10,524) | (44.3) | % | |||||||||||||||||||||||||||||||||||||
Net income | $ | 22,701 | $ | 30,149 | $ | (7,448) | (24.7) | % | $ | 52,111 | $ | 80,049 | $ | (27,938) | (34.9) | % | |||||||||||||||||||||||||||||||
Effective tax rate | 21.4 | % | 18.7 | % | N/A | 14.4 | % | 20.3 | % | 22.9 | % | N/A | (11.4) | % |
At September 30, 2023 | At December 31, 2022 | ||||||||||
(In Thousands) | |||||||||||
Financial instruments whose contract amounts represent credit risk: | |||||||||||
Commitments to originate loans and leases: | |||||||||||
Commercial real estate | $ | 162,380 | $ | 414,217 | |||||||
Commercial | 246,331 | 291,188 | |||||||||
Residential mortgage | 20,359 | 14,036 | |||||||||
Unadvanced portion of loans and leases | 1,259,927 | 1,202,738 | |||||||||
Unused lines of credit: | |||||||||||
Home equity | 758,553 | 700,201 | |||||||||
Other consumer | 113,952 | 97,313 | |||||||||
Other commercial | 499 | 526 | |||||||||
Unused letters of credit: | |||||||||||
Financial standby letters of credit | 16,111 | 13,584 | |||||||||
Performance standby letters of credit | 28,759 | 31,330 | |||||||||
Commercial and similar letters of credit | 4,867 | 2,619 | |||||||||
Interest rate derivatives | $ | 225,000 | $ | 150,000 | |||||||
Loan level derivatives: | |||||||||||
Receive fixed, pay variable | 1,758,794 | 1,489,709 | |||||||||
Pay fixed, receive variable | 1,758,794 | 1,489,709 | |||||||||
Risk participation-out agreements | 513,561 | 393,624 | |||||||||
Risk participation-in agreements | 106,624 | 75,223 | |||||||||
Foreign exchange contracts: | |||||||||||
Buys foreign currency, sells U.S. currency | 3,664 | 2,383 | |||||||||
Sells foreign currency, buys U.S. currency | 4,290 | 2,400 |
Actual | Minimum Required for Capital Adequacy Purposes | Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer | Minimum Required to be Considered “Well-Capitalized” Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2023: | |||||||||||||||||||||||||||||||||||||||||||||||
Brookline Bancorp, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio (1) | $ | 979,999 | 10.24 | % | $ | 430,664 | 4.50 | % | $ | 669,921 | 7.00 | % | N/A | N/A | |||||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio (2) | 989,749 | 8.96 | % | 441,852 | 4.00 | % | 441,852 | 4.00 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 989,749 | 10.35 | % | 573,768 | 6.00 | % | 812,837 | 8.50 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Total risk-based capital ratio (4) | 1,183,982 | 12.38 | % | 765,093 | 8.00 | % | 1,004,185 | 10.50 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Brookline Bank | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio (1) | $ | 579,269 | 10.47 | % | $ | 248,969 | 4.50 | % | $ | 387,286 | 7.00 | % | $ | 359,623 | 6.50 | % | |||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio (2) | 579,269 | 9.53 | % | 243,135 | 4.00 | % | 243,135 | 4.00 | % | 303,919 | 5.00 | % | |||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 579,269 | 10.47 | % | 331,959 | 6.00 | % | 470,276 | 8.50 | % | 442,612 | 8.00 | % | |||||||||||||||||||||||||||||||||||
Total risk-based capital ratio (4) | 648,634 | 11.72 | % | 442,754 | 8.00 | % | 581,114 | 10.50 | % | 553,442 | 10.00 | % | |||||||||||||||||||||||||||||||||||
BankRI | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio (1) | $ | 275,116 | 10.21 | % | $ | 121,256 | 4.50 | % | $ | 188,620 | 7.00 | % | $ | 175,147 | 6.50 | % | |||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio (2) | 275,116 | 8.71 | % | 126,345 | 4.00 | % | 126,345 | 4.00 | % | 157,931 | 5.00 | % | |||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 275,116 | 10.21 | % | 161,674 | 6.00 | % | 229,039 | 8.50 | % | 215,566 | 8.00 | % | |||||||||||||||||||||||||||||||||||
Total risk-based capital ratio (4) | 308,867 | 11.47 | % | 215,426 | 8.00 | % | 282,747 | 10.50 | % | 269,282 | 10.00 | % | |||||||||||||||||||||||||||||||||||
PCSB Bank | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio (1) | 179,974 | 13.41 | % | $ | 60,394 | 4.50 | % | $ | 93,946 | 7.00 | % | $ | 87,236 | 6.50 | % | ||||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio (2) | 179,974 | 9.59 | % | $ | 75,067 | 4.00 | % | $ | 75,067 | 4.00 | % | $ | 93,834 | 5.00 | % | ||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 179,974 | 13.41 | % | $ | 80,525 | 6.00 | % | $ | 114,077 | 8.50 | % | $ | 107,367 | 8.00 | % | ||||||||||||||||||||||||||||||||
Total risk-based capital ratio (4) | 196,341 | 14.63 | % | $ | 107,363 | 8.00 | % | $ | 140,915 | 10.50 | % | $ | 134,204 | 10.00 | % |
Actual | Minimum Required for Capital Adequacy Purposes | Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer | Minimum Required To Be Considered “Well-Capitalized” Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2022: | |||||||||||||||||||||||||||||||||||||||||||||||
Brookline Bancorp, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio (1) | $ | 893,978 | 12.05 | % | $ | 333,851 | 4.50 | % | $ | 519,323 | 7.00 | % | N/A | N/A | |||||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio (2) | 903,695 | 10.26 | % | 352,318 | 4.00 | % | 352,318 | 4.00 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 903,695 | 12.18 | % | 445,170 | 6.00 | % | 630,657 | 8.50 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Total risk-based capital ratio (4) | 1,071,078 | 14.44 | % | 593,395 | 8.00 | % | 778,831 | 10.50 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Brookline Bank | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio (1) | $ | 570,530 | 11.24 | % | $ | 228,415 | 4.50 | % | $ | 355,312 | 7.00 | % | $ | 329,933 | 6.50 | % | |||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio (2) | 570,530 | 9.72 | % | 234,786 | 4.00 | % | 234,786 | 4.00 | % | 293,483 | 5.00 | % | |||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 570,530 | 11.24 | % | 304,553 | 6.00 | % | 431,451 | 8.50 | % | 406,071 | 8.00 | % | |||||||||||||||||||||||||||||||||||
Total risk-based capital ratio (4) | 634,226 | 12.50 | % | 405,905 | 8.00 | % | 532,750 | 10.50 | % | 507,381 | 10.00 | % | |||||||||||||||||||||||||||||||||||
BankRI | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio (1) | $ | 244,422 | 10.32 | % | $ | 106,579 | 4.50 | % | $ | 165,790 | 7.00 | % | $ | 153,948 | 6.50 | % | |||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio (2) | 244,422 | 8.13 | % | 120,257 | 4.00 | % | 120,257 | 4.00 | % | 150,321 | 5.00 | % | |||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (3) | 244,422 | 10.32 | % | 142,106 | 6.00 | % | 201,317 | 8.50 | % | 189,474 | 8.00 | % | |||||||||||||||||||||||||||||||||||
Total risk-based capital ratio (4) | 274,091 | 11.57 | % | 189,518 | 8.00 | % | 248,743 | 10.50 | % | 236,898 | 10.00 | % |
Estimated Exposure to Net Interest Income over Twelve-Month Horizon Beginning | |||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Change in Interest Rate Levels | Dollar Change | Percent Change | Dollar Change | Percent Change | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Up 300 basis points shock | $ | 7,923 | 2.4 | % | $ | 22,790 | 7.4 | % | |||||||||||||||
Up 200 basis points ramp | 6,558 | 2.0 | % | 8,747 | 2.8 | % | |||||||||||||||||
Up 100 basis points ramp | 3,603 | 1.1 | % | 4,477 | 1.5 | % | |||||||||||||||||
Down 100 basis points ramp | (3,720) | (1.1) | % | (6,160) | (2.0) | % |
Estimated Percent Change in Economic Value of Equity | ||||||||||||||
Parallel Shock in Interest Rate Levels | At September 30, 2023 | At December 31, 2022 | ||||||||||||
Up 300 basis points | (8.25) | % | 0.30 | % | ||||||||||
Up 200 basis points | (6.42) | % | 0.51 | % | ||||||||||
Up 100 basis points | (2.33) | % | 0.83 | % | ||||||||||
Down 100 basis points | 0.76 | % | (2.95) | % |
Exhibit 31.1* | ||||||||
Exhibit 31.2* | ||||||||
Exhibit 32.1** | ||||||||
Exhibit 32.2** | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and included in Exhibit 101) |
BROOKLINE BANCORP, INC. | |||||||||||
Date: November 6, 2023 | By: | /s/ Paul A. Perrault | |||||||||
Paul A. Perrault | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: November 6, 2023 | By: | /s/ Carl M. Carlson | |||||||||
Carl M. Carlson | |||||||||||
Co-President and Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
/s/ PAUL A. PERRAULT | ||||||||
Paul A. Perrault | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
/s/ CARL M. CARLSON | ||||||||
Carl M. Carlson | ||||||||
Co-President and Chief Financial Officer | ||||||||
(Principal Financial Officer) |
/s/ PAUL A. PERRAULT | ||||||||
Paul A. Perrault | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
/s/ CARL M. CARLSON | ||||||||
Carl M. Carlson | ||||||||
Co-President and Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Premises and equipment, accumulated depreciation and amortization | $ 104,266 | $ 92,219 |
Identified intangible assets, accumulated amortization | $ 45,998 | $ 40,123 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 96,998,075 | 85,177,172 |
Treasury stock, shares (in shares) | 7,350,981 | 7,731,445 |
Unaudited Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Interest and dividend income: | ||||
Loans and leases | $ 136,561 | $ 84,375 | $ 390,791 | $ 230,383 |
Debt securities | 6,799 | 3,337 | 22,703 | 9,582 |
Restricted equity securities | 1,310 | 467 | 4,238 | 1,132 |
Short-term investments | 2,390 | 464 | 7,236 | 686 |
Total interest and dividend income | 147,060 | 88,643 | 424,968 | 241,783 |
Interest expense: | ||||
Deposits | 49,116 | 7,354 | 121,631 | 15,407 |
Borrowed funds | 13,874 | 3,263 | 47,181 | 6,635 |
Total interest expense | 62,990 | 10,617 | 168,812 | 22,042 |
Net interest income | 84,070 | 78,026 | 256,156 | 219,741 |
Provision for credit losses | 2,947 | 2,845 | 34,017 | 2,854 |
Provision for investment losses | 84 | (10) | 415 | 48 |
Net interest income after provision for credit losses | 81,039 | 75,191 | 221,724 | 216,839 |
Non-interest income: | ||||
Loan level derivative income, net | 376 | 1,275 | 3,112 | 3,576 |
Gain on investment securities, net | 0 | 0 | 1,704 | 0 |
Gain on sales of loans and leases held-for-sale | 225 | 889 | 2,171 | 1,524 |
Other | 1,244 | 1,562 | 6,852 | 4,426 |
Total non-interest income | 5,508 | 6,834 | 23,907 | 19,291 |
Non-interest expense: | ||||
Compensation and employee benefits | 33,491 | 28,306 | 103,494 | 83,962 |
Occupancy | 4,983 | 3,906 | 15,076 | 11,997 |
Equipment and data processing | 6,766 | 5,066 | 19,759 | 15,075 |
Professional services | 2,368 | 1,069 | 5,784 | 3,514 |
FDIC insurance | 2,152 | 709 | 6,005 | 2,176 |
Advertising and marketing | 1,174 | 1,337 | 3,966 | 3,928 |
Amortization of identified intangible assets | 1,955 | 120 | 5,875 | 374 |
Merger and acquisition expense | 0 | 1,073 | 7,411 | 1,608 |
Other | 4,790 | 3,373 | 12,910 | 9,683 |
Total non-interest expense | 57,679 | 44,959 | 180,280 | 132,317 |
Income before provision for income taxes | 28,868 | 37,066 | 65,351 | 103,813 |
Provision for income taxes | 6,167 | 6,917 | 13,240 | 23,764 |
Net income | $ 22,701 | $ 30,149 | $ 52,111 | $ 80,049 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.26 | $ 0.39 | $ 0.59 | $ 1.04 |
Diluted (in dollars per share) | $ 0.26 | $ 0.39 | $ 0.59 | $ 1.04 |
Weighted average common shares outstanding during the year: | ||||
Basic (in shares) | 88,795,270 | 76,779,038 | 88,016,190 | 77,159,356 |
Diluted (in shares) | 88,971,210 | 77,007,971 | 88,253,361 | 77,448,290 |
Dividends paid per common share (in dollars per share) | $ 0.135 | $ 0.130 | $ 0.405 | $ 0.385 |
Deposit fees | ||||
Non-interest income: | ||||
Non-interest income, fees | $ 3,024 | $ 2,759 | $ 8,547 | $ 8,003 |
Loan fees | ||||
Non-interest income: | ||||
Non-interest income, fees | $ 639 | $ 349 | $ 1,521 | $ 1,762 |
Unaudited Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended |
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Sep. 30, 2022 |
Sep. 30, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per common share (in dollars per share) | $ 0.130 | $ 0.385 |
Common stock held by ESOP committed to be released (in shares) | 6,609 | 19,827 |
Basis of Presentation |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Overview Brookline Bancorp, Inc. (the "Company") is a bank holding company (within the meaning of the Bank Holding Company Act of 1956, as amended) and the parent of Brookline Bank, a Massachusetts-chartered trust company; Bank Rhode Island ("BankRI"), a Rhode Island-chartered financial institution; and PCSB Bank, a New York-chartered commercial bank (collectively referred to as the "Banks"). The Banks are members of the Federal Reserve System. The Company is also the parent of Brookline Securities Corp. ("BSC") and Clarendon Private, LLC ("Clarendon Private"). The Company's primary business is to provide commercial, business and retail banking services to its corporate, municipal and retail customers through the Banks and its non-bank subsidiaries. Brookline Bank, which includes its wholly-owned subsidiaries, Longwood Securities Corp., Eastern Funding LLC ("Eastern Funding") and First Ipswich Insurance Agency, operates 29 full-service banking offices in the greater Boston metropolitan area with two additional lending offices. BankRI, which includes its wholly-owned subsidiaries, Acorn Insurance Agency, BRI Realty Corp., BRI Investment Corp. and its wholly-owned subsidiary, BRI MSC Corp., operates 21 full-service banking offices in the greater Providence, Rhode Island area. Macrolease Corporation, previously a subsidiary of BankRI, was merged into Eastern Funding in the second quarter of 2022. PCSB Bank, which includes its wholly-owned subsidiary, UpCounty Realty Corp., operates 14 full-service banking offices in the Lower Hudson Valley of New York. Clarendon Private is a registered investment advisor with the Securities and Exchange Commission ("SEC"). Through Clarendon Private, the Company offers a wide range of wealth management services to individuals, families, endowments and foundations to help these clients meet their long-term financial goals. The Banks' activities include acceptance of commercial, municipal and retail deposits, origination of mortgage loans on commercial and residential real estate located principally in Central New England and the Lower Hudson Valley of New York State, origination of commercial loans and leases to small- and mid-sized businesses, investment in debt and equity securities, and the offering of cash management and investment advisory services. The Company also provides specialty equipment financing through it subsidiary Eastern Funding, which operates out of New York City, New York, and Plainview, New York. The Company and the Banks are supervised, examined and regulated by the Board of Governors of the Federal Reserve System (the "FRB"). As a Massachusetts-chartered trust company, Brookline Bank is subject to supervision, examination and regulation by the Massachusetts Division of Banks. As a Rhode Island-chartered financial institution, BankRI is subject to supervision, examination and regulation by the Banking Division of the Rhode Island Department of Business Regulation. As a New York chartered commercial bank, PCSB Bank is subject to supervision, examination and regulation by the New York State Department of Financial Services. Clarendon Private is also subject to regulation by the SEC. The Federal Deposit Insurance Corporation ("FDIC") offers insurance coverage on all deposits up to $250,000 per depositor at each of the Banks. As FDIC-insured depository institutions, the Banks are also subject to supervision, examination and regulation by the FDIC. Basis of Financial Statement Presentation The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to the rules of the SEC for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying 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 fiscal year ended December 31, 2022. The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. In preparing these consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the allowance for credit losses, the determination of fair market values of acquired assets and liabilities, including acquired loans, the review of goodwill and intangible assets for impairment and the review of deferred tax assets for valuation allowances. The judgments used by management in applying these critical accounting policies may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan and lease losses in future periods, and the inability to collect outstanding principal may result in increased loan and lease losses. Reclassification Certain previously reported amounts have been reclassified to conform to the current year's presentation. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, "Reference Rate Reform (Topic 848)-Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") to provide optional expedients and exceptions for applying GAAP to certain contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients provided that those elections are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022 and do not apply to contract modifications made after December 31, 2022. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)" an update to address concerns around structural risk of interbank offered rates ("IBORs"), particularly, the risk of cessation of the LIBOR. The amendments in this update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. In December 2022, FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848)" which deferred the sunset date of Topic 848 to December 31, 2024, to allow for a transition period after the sunset of LIBOR. The Company has adopted the amendments in these updates and established a LIBOR transition committee to guide the Company’s transition from LIBOR. The Company has completed much of the work to transition off the LIBOR index consistent with industry timelines. The working group has identified its products that utilize LIBOR and has implemented fallback language to facilitate the transition to alternative rates. The Company has also evaluated its infrastructure and identified fallback rates as well as started offering alternative indices and new products tied to these alternative indices. The Company does not anticipate the adoption of these standards to have a material impact to the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The Company adopted ASU 2021-08 as of January 1, 2023 on a prospective basis. The adoption did not have a material impact on the Company's consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" which addresses concerns regarding the complex accounting for loans modified as troubled debt restructurings (“TDRs”) and also the disclosure of gross writeoff information included in required vintage disclosures. The Company adopted ASU 2022-02 as of January 1, 2023. The enhanced disclosure requirements provided for by ASU 2022-02 were adopted on a prospective basis. Reporting periods prior to the adoption of ASU 2022-02 are presented in accordance with the applicable GAAP. The adoption did not have a material impact on the Company’s consolidated financial statements. Additional details can be found in Note 5, "Allowance for Credit Losses".
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Acquisitions |
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Acquisitions | Acquisitions PCSB Financial Corporation On January 1, 2023, the Company completed its previously announced acquisition (the “merger”) of PCSB Financial Corporation (“PCSB”). Pursuant to the merger agreement, each share of PCSB common stock outstanding at the effective time of the merger was converted into the right to receive, at the holder’s election, either $22.00 in cash consideration or 1.3284 shares of Company common stock for each share of PCSB common stock, subject to allocation procedures to ensure that 60% of the outstanding shares of PCSB common stock was converted to Company common stock. PCSB’s bank subsidiary, PCSB Bank, operates as a separate subsidiary of the Company and has 14 banking offices throughout the Lower Hudson Valley of New York State. The transaction was accounted for as a business combination. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values as of the merger effective date. The determination of fair value required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and are subject to change. Fair value estimates of the assets acquired and liabilities assumed may be adjusted for a period up to one year (the measurement period) from the closing date of the merger if new information is obtained about facts and circumstances that existed as of the merger effective date that, if known, would have affected the measurement of the amounts recognized as of that date. During the three months ended September 30, 2023, the Company did not incur any merger-related expenses. During the nine months ended September 30, 2023, the Company incurred merger-related expenses totaling $7.4 million. The following table summarizes the preliminary purchase price allocation to the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition:
(1) Includes approximately $20 million of Bond Anticipation Notes ("BANs") and Tax Anticipation Notes ("TANs") that were subsequently reclassified as investments. In connection with the merger, the Company recorded $80.8 million of goodwill, which represents the excess of the purchase price over the fair value of the net assets acquired. Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Cash and Cash Equivalents The fair values of cash and cash equivalents approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities. Investments The fair values for investment securities available-for-sale were based on quoted market prices, where available. If quoted market prices were not available, fair value estimates are generally based on observable inputs, including quoted market prices for similar instruments. Investment securities held-to-maturity were reclassified to investment securities available-for-sale based on the Company's intent at closing. During the nine months ended September 30, 2023, the Company restructured the investment portfolio acquired from PCSB. The Company sold approximately 75% of the portfolio which equates to $228.3 million of book value of predominantly longer dated Agency mortgage-backed securities ("MBS"), Agency collateralized mortgage obligations ("CMOs"), corporate and municipal securities. The weighted average duration of these securities was 6.1 years with an average risk weighting of assets of 33%. The Company recognized a $1.7 million gain from selling these securities. Proceeds from the sale and additional cash on hand was used to purchase $318.5 million of short duration securities, the majority of which are US Treasuries, Agency MBS, and a small position of short term Municipal Bond Anticipation Notes. Additional details can be found in Note 3, "Investment Securities". The weighted average duration of these securities was 2.1 years with an average risk weighting of assets of 4%. Loans The fair value of the loan portfolio was calculated on an individual loan basis using discounted cash flow analysis, with results presented and assumptions applied on a summary basis. This analysis took into consideration the contractual terms of the loans and assumptions related to the cost of debt, cost of equity, servicing cost and other liquidity/risk premium considerations to estimate the projected cash flows. The loss rates for the loans were estimated using Probability of Default (cumulative) and Loss Given Default assumptions. The assumptions used in determining the fair value of the loan portfolio were considered reasonable from a market-participant viewpoint. The Company recorded a $49.8 million discount from the results of the loan accounting valuation. Deposits - Core Deposits Intangible ("CDI") Accounts included in the CDI include demand deposits, NOW accounts, money market accounts and savings accounts. The fair value of the CDI was derived from using a financial institution-specific income approach. Factors examined in the valuation of the CDI include customer attrition, deposit interest rates, service charge income, overhead expense, and costs of alternative funding. The Company recorded a $30.3 million CDI from the results of the deposit valuation. The CDI is being amortized at an accelerated rate over 7 years using the sum-of-the-years method. Certificates of Deposits The certificates of deposits were recorded at fair value. The determination of the fair value was calculated using discounted cash flow analysis, which involved present valuing the contractual payments over the remaining life of the certificate of deposit at market based-rates. The Company recorded a $3.2 million discount from the results of the certificate of deposit valuation. Borrowings The fair value of the FHLB advances were ascertained by using discounted cash flow analysis of the contractual payments over the remaining life of the advances at market-based interest rates. The FHLB advances were disaggregated on an individual advance basis and management used FHLB of New York rates as of December 30, 2022 as the market rate in the present value calculation. The Company recorded a $0.3 million discount on the assumed FHLB advances. PCD Loans and Leases Purchased loans and leases that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchase credit deteriorated ("PCD"). For PCD loans and leases, the initial estimate of expected credit losses was established through an adjustment to the unpaid principal balance and non-credit discount at acquisition. The following table reconciles the unpaid principal balance to the fair value of PCD loans and leases:
Supplemental Pro Forma Financial Information The following table summarizes supplemental pro forma financial information giving effect to the merger as if it had been completed on January 1, 2022:
The supplemental pro forma financial information does not necessarily reflect the results of operations that would have occurred had Brookline Bancorp, Inc. merged with PCSB on January 1, 2022. The supplemental pro forma financial information includes the impact of (i) accreting and amortizing the discounts and premiums associated with the estimated fair value adjustments to acquired loans and leases, investment securities, deposits, and borrowings, (ii) the amortization of recognized intangible assets, (iii) accreting and amortizing the discounts and premiums associated with acquired premises and leases, and (iv) the related estimated income tax effects. Costs savings and other business synergies related to the merger are not included in the supplemental pro forma financial information. In addition, the supplemental pro forma financial information was adjusted to include the $7.4 million of merger-related expenses recognized during the nine months ended September 30, 2023, as summarized in the following table:
(1) Comprised primarily of severance and employee retention costs. (2) Comprised primarily of technology contract termination fees. (3) Comprised primarily of advisory, legal, accounting, and other professional fees. (4) Comprised primarily of costs of travel and other miscellaneous expenses. Brookline Bancorp, Inc.’s operating results for three and nine months ended September 30, 2023 include the operating results of acquired assets and assumed liabilities of PCSB subsequent to the merger on January 1, 2023. The amount of net interest income, non-interest income and net income of $16.1 million, $0.6 million and $3.7 million, respectively, attributable to the acquisition of PCSB were included in Brookline Bancorp, Inc.’s Consolidated Statement of Income for the three months ended September 30, 2023. The amount of net interest income, non-interest income and net loss of $48.2 million, $3.7 million and $(0.2) million, respectively, attributable to the acquisition of PCSB were included in Brookline Bancorp, Inc.’s Consolidated Statement of Income for the nine months ended September 30, 2023. PCSB’s interest income, non-interest income and net loss noted above reflect management’s best estimates, based on information available at the reporting date.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The following tables set forth investment securities available-for-sale at the dates indicated:
As of September 30, 2023, the fair value of all investment securities available-for-sale was $880.4 million, with net unrealized losses of $99.4 million, compared to a fair value of $656.8 million and net unrealized losses of $77.2 million as of December 31, 2022. As of September 30, 2023, $847.3 million, or 96.2% of the portfolio, had gross unrealized losses of $99.5 million, compared to $630.5 million, or 96.0% of the portfolio, with gross unrealized losses of $77.5 million as of December 31, 2022. As of September 30, 2023 and December 31, 2022, the Company held no securities as held to maturity; all securities were held as available-for-sale. Investment Securities as Collateral As of September 30, 2023 and December 31, 2022, respectively, $608.8 million and $387.9 million of investment securities were pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and FHLB of Boston and FHLB of New York borrowings. The Banks had no outstanding FRB borrowings as of September 30, 2023 and December 31, 2022. Allowance for Credit Losses-Available-for-Sale Securities For available-for-sale securities in an unrealized loss position, management first assesses whether (i) the Company intends to sell the security, or (ii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither criterion is met, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for credit loss is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through the Allowance for Credit Losses ("ACL") is recognized in other comprehensive income. Adjustments to the allowance are reported as a component of credit loss expense. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivables associated with debt securities available-for-sale totaled $3.9 million as of September 30, 2023 compared to $2.6 million as of December 31, 2022. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a debt security placed on nonaccrual is reversed against interest income. There were no debt securities on nonaccrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the nine months ended September 30, 2023 and 2022. Assessment for Available for Sale Securities for Impairment Investment securities as of September 30, 2023 and December 31, 2022 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows:
The Company performs regular analyses of the investment securities available-for-sale portfolio to determine whether a decline in fair value indicates that an investment security is impaired. In making these impairment determinations, management considers, among other factors, projected future cash flows; credit subordination and the creditworthiness; capital adequacy and near-term prospects of the issuers. Management also considers the Company's capital adequacy, interest-rate risk, liquidity and business plans in assessing whether it is more likely than not that the Company will sell or be required to sell the investment securities before recovery. If the Company determines that a security investment is impaired and that it is more likely than not that the Company will not sell or be required to sell the investment security before recovery of its amortized cost, the credit portion of the impairment loss is recognized in the Company's consolidated statement of income and the noncredit portion is recognized in accumulated other comprehensive income. The credit portion of the impairment represents the difference between the amortized cost and the present value of the expected future cash flows of the investment security. If the Company determines that a security is impaired and it is more likely than not that it will sell or be required to sell the investment security before recovery of its amortized cost, the entire difference between the amortized cost and the fair value of the security will be recognized in the Company's consolidated statement of income. Investment Securities Available-For-Sale Impairment Analysis The following discussion summarizes, by investment security type, the basis for evaluating if the applicable investment securities within the Company’s available-for-sale portfolio were impaired as of September 30, 2023. The Company has determined it is more likely than not that the Company will not sell or be required to sell the investment securities before recovery of its amortized cost. The Company's ability and intent to hold these investment securities until recovery is supported by the Company's strong capital and liquidity positions as well as its historically low portfolio turnover. As such, management has determined that the investment securities are not impaired as of September 30, 2023. If market conditions for investment securities worsen or the creditworthiness of the underlying issuers deteriorates, it is possible that the Company may recognize additional impairment in future periods. U.S. Government-Sponsored Enterprises The Company invests in securities issued by U.S. Government-sponsored enterprises ("GSEs"), including GSE debentures, mortgage-backed securities ("MBSs"), and collateralized mortgage obligations ("CMOs"). GSE securities include obligations issued by the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC"), the Government National Mortgage Association ("GNMA"), the FHLB and the Federal Farm Credit Bank. As of September 30, 2023, the Company held GNMA MBSs and CMOs, and Small Business Administration ("SBA") commercial loan asset-backed securities in its available-for-sale portfolio with an estimated fair value of $31.1 million, all of which were backed explicitly by the full faith and credit of the U.S. Government, compared to $2.7 million as of December 31, 2022. As of September 30, 2023, the Company owned 40 GSE debentures with a total fair value of $168.9 million, and a net unrealized loss of $26.6 million. The acquisition of PCSB accounted for $39.9 million of the total fair value at September 30, 2023. As of December 31, 2022, the Company held 32 GSE debentures with a total fair value of $152.4 million, with a net unrealized loss of $24.3 million. As of September 30, 2023, 37 of the 40 securities in this portfolio were in an unrealized loss position. As of December 31, 2022, 31 of the 32 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA/SBA) guarantee of the U.S Government. During the nine months ended September 30, 2023 the Company purchased $9.7 million of purchase GSE debentures compared to the same period in 2022 when the Company did not purchase any GSE debentures. As of September 30, 2023, the Company owned 60 GSE CMOs with a total fair value of $59.9 million and a net unrealized loss of $7.6 million. The acquisition of PCSB accounted for $44.8 million of the total fair value at September 30, 2023. As of December 31, 2022, the Company held 32 GSE CMOs with a total fair value of $18.2 million with a net unrealized loss of $1.8 million. As of September 30, 2023 and December 31, 2022 , all of the securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the nine months ended September 30, 2023 and 2022, the Company did not purchase any GSE CMOs. As of September 30, 2023, the Company owned 149 GSE MBSs with a total fair value of $166.5 million and a net unrealized loss of $25.9 million. The acquisition of PCSB accounted for $45.4 million of the total fair value at September 30, 2023. As of December 31, 2022, the Company held 134 GSE MBSs with a total fair value of $140.6 million with a net unrealized loss of $19.2 million. As of September 30, 2023, 143 of the 149 securities in this portfolio were in an unrealized loss position. As of December 31, 2022, 128 of the 134 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the nine months ended September 30, 2023 the Company purchased $39.4 million of GSE MBSs compared to the same period in 2022 when the Company did not purchase any GSE MBSs. Municipal Obligations The Company invests in certain state and municipal securities with high credit ratings for portfolio diversification and tax planning purposes. As of September 30, 2023, the Company owned 46 municipal obligation securities with a total fair value of $18.3 million and a net unrealized loss of $0.6 million. The acquisition of PCSB, and purchases year to date accounted for all of the total fair value at September 30, 2023. As of December 31, 2022, the Company did not hold any municipal securities. As of September 30, 2023, 27 of the 46 securities in this portfolio were in an unrealized loss position. During the nine months ended September 30, 2023, the Company purchased $9.0 million of municipal securities compared to the same period in 2022 when the Company did not purchase any municipal securities. Corporate Obligations The Company may invest in high-quality corporate obligations to provide portfolio diversification and improve the overall yield on the portfolio. As of September 30, 2023, the Company held 11 corporate obligation securities with a total fair value of $24.6 million and a net unrealized loss of $0.9 million. The acquisition of PCSB accounted for $18.2 million of the total fair value at September 30, 2023. As of December 31, 2022, the Company held 4 corporate obligation securities with a total fair value of $13.8 million and a net unrealized loss of $0.3 million. As of September 30, 2023, 10 of the 11 securities in this portfolio were in an unrealized loss position. As of December 31, 2022, all of the securities in this portfolio were in an unrealized loss position. Full collection of the obligations is expected because the financial condition of the issuers is sound, they have not defaulted on scheduled payments, the obligations are rated investment grade, and the Company has the ability and intent to hold the obligations for a period of time to recover the amortized cost. During the nine months ended September 30, 2023 and 2022, the Company did not purchase any corporate obligations. U.S. Treasury Bonds The Company invests in securities issued by the U.S. government. As of September 30, 2023, the Company owned 67 U.S. Treasury bonds with a total fair value of $441.7 million and a net unrealized loss of $37.8 million. The acquisition of PCSB accounted for $162.9 million of the total fair value at September 30, 2023. As of December 31, 2022, the Company held 41 U.S. Treasury bonds with a total fair value of $331.3 million and a net unrealized loss of $31.5 million. As of September 30, 2023, 65 of the 67 securities in this portfolio were in an unrealized loss position. As of December 31, 2022, 38 of the 41 securities in this portfolio were in an unrealized loss position. During the nine months ended September 30, 2023, the Company purchased $272.7 million of U.S. Treasury bonds, compared to the same period in 2022 when the Company purchased $122.6 million U.S. Treasury bonds. Foreign Government Obligations As of September 30, 2023 and December 31, 2022, the Company owned 1 foreign government obligation security with a fair value of $0.5 million, which approximated cost. As of September 30, 2023 and December 31, 2022, respectively, the security was in an unrealized loss position. During the nine months ended September 30, 2023, the Company did not purchase any foreign government obligations, compared to the same period in 2022, when the Company repurchased the foreign government obligation that had matured. Portfolio Maturities The final stated maturities of the debt securities are as follows for the periods indicated:
Actual maturities of debt securities will differ from those presented above since certain obligations amortize and may also provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. MBSs and CMOs are included above based on their final stated maturities; the actual maturities, however, may occur earlier due to anticipated prepayments and stated amortization of cash flows. As of September 30, 2023, issuers of debt securities with an estimated fair value of $90.8 million had the right to call or prepay the obligations. Of the $90.8 million, approximately $9.3 million matures in less then 1 year, $28.8 million matures in 1-5 years, $45.6 million matures in 6-10 years, and $7.1 million matures after ten years. As of December 31, 2022, issuers of debt securities with an estimated fair value of approximately $53.1 million had the right to call or prepay the obligations. Of the $53.1 million, approximately $2.5 million matures in less then 1 year, $6.3 million matures in 1-5 years, $37.4 million matures in 6-10 years, and $6.9 million matures after ten years. Security Sales The proceeds from the sale of investment securities available-for-sale were $230.0 million during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022 where the Company did not sell any investment securities available-for-sale. Securities sales executed during the nine months ended were related to the acquisition of PCSB and the restructuring of the acquired investment portfolio.
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Loans and Leases |
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Loans and Leases | Loans and Leases The following table presents the amortized cost of loans and leases and weighted average coupon rates for the loan and lease portfolios at the dates indicated:
Accrued interest on loans and leases, which were excluded from the amortized cost of loans and leases totaled $37.2 million and $26.1 million at September 30, 2023 and December 31, 2022, respectively, and were included in other assets in the accompanying consolidated balance sheets. The net unamortized deferred loan origination costs and premiums and discounts on acquired loans included in total loans and leases were $(31.4) million and $11.3 million as of September 30, 2023 and December 31, 2022, respectively. The Banks and their subsidiaries lend primarily in all New England states and New York, with the exception of equipment financing, 29.2% of which is in the greater New York and New Jersey metropolitan area and 70.8% of which is in other areas in the United States of America as of September 30, 2023. Loans and Leases Pledged as Collateral As of September 30, 2023 and December 31, 2022, there were $3.2 billion and $2.4 billion respectively of loans and leases pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and FHLB borrowings. The Banks did not have any outstanding FRB borrowings as of September 30, 2023 and December 31, 2022.
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Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | Allowance for Credit Losses The following tables present the changes in the allowance for loan and lease losses in loans and leases by portfolio segment for the periods indicated:
The table above excludes the establishment of the initial reserve for PCD loans and leases of $2.3 million, net of $2.3 million of day one charge-offs recognized at the date of the acquisition in accordance with GAAP.
The allowance for credit losses for unfunded credit commitments, which is included in other liabilities, was $21.5 million, and $20.6 million at September 30, 2023 and December 31, 2022, respectively. Provision for Credit Losses The provision (credit) for credit losses are set forth below for the periods indicated:
Allowance for Loan and Lease Losses Methodology Management has established a methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the allowance for credit losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized. To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. Commercial real estate ("CRE"), commercial and industrial ("C&I"), and retail lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and expected utilization assumptions. The expected loss estimates for two small commercial portfolios are based on historical loss rates. Key assumptions used in the models include portfolio segmentation, prepayments, and the expected utilization of unfunded commitments, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a loan equivalency ("LEQ") factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available. The ACL estimate incorporates reasonable and supportable forecasts of various macro-economic variables over the remaining life of loans and leases. The development of the reasonable and supportable forecast assume each macro-economic variable will revert to long-term expectations, with reversion characteristics unique to specific economic indicators and forecasts. Reversion towards long-term expectations generally begins to three years from the forecast start date and largely completes within the first five years. Because the reasonable and supportable economic forecasts used in the models are mean reverting, the models are therefore considered to be implicitly mean reverting. Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of gross domestic product ("GDP"), interest rates, property price indices, and employment measures. Scenario weighting and model parameters are reviewed for each calculation and updated to reflect facts and circumstances as of the financial statement date. The forecasts utilized at September 30, 2023 reflect the immediate and longer-term effects of a rising interest rate environment and inflationary conditions. As of September 30, 2023, management applied qualitative adjustments to the CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models. These adjustments addressed model limitations, were based on historical loss patterns, and targeted specific risks within the certain portfolios. A general qualitative adjustment was applied to all models to account for general economic uncertainty by placing a greater probability on negative economic forecasts. Additional qualitative adjustments were applied to the commercial, multifamily, and commercial real estate (includes owner occupied, non-owner occupied, and construction) portfolios based on the Company’s historical loss experience and the loss experience of the Company’s peer group. High risk segments of the Eastern Funding portfolios also received additional qualitative adjustments based on recent loss history and expected liquidation values. These qualitative adjustments resulted in additions to reserves for all portfolios, as compared to the model output. Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary. The general allowance for loan and lease losses was $108.6 million as of September 30, 2023, compared to $95.4 million as of December 31, 2022. The increase in the general allowance was primarily driven by the acquisition of PCSB Bank during the year, which contributed $14.8 million of the $13.2 million increase, and was offset by an overall decrease in the general allowance of all entities, excluding PCSB Bank. The specific allowance for loan and lease losses was $10.5 million as of September 30, 2023, compared to $3.1 million as of December 31, 2022. The specific allowance increased $7.4 million during the nine months ended September 30, 2023 primarily due to specific reserve increases totaling $4.2 million for commercial loans and $3.2 million for commercial real loans. As of September 30, 2023, management believes that the methodology for calculating the allowance is sound and that the allowance provides a reasonable basis for determining and reporting on expected losses over the lifetime of the Company’s loan portfolios. Credit Quality Assessment At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the credit quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, adversely risk-rated, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a modified loan. The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk. The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows: 1 -4 Rating—Pass Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral. 5 Rating—Other Assets Especially Mentioned ("OAEM") Borrowers exhibit potential credit weaknesses or downward trends deserving management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned. 6 Rating—Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation. 7 Rating—Doubtful Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. 8 Rating—Definite Loss Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted. Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets. Credit Quality Information The following table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of September 30, 2023.
As of September 30, 2023, there were no loans categorized as definite loss. For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model.
_______________________________________________________________________________ * Primarily represents loans made to trusts and purchased mortgages. The following tables present the recorded investment in loans in each class as of December 31, 2022, by credit quality indicator.
As of December 31, 2022, there were no loans categorized as definite loss.
_______________________________________________________________________________ * Primarily represents loans made to trusts and purchased mortgages. Age Analysis of Past Due Loans and Leases The following table presents an age analysis of the amortized cost basis in loans and leases as of September 30, 2023.
The Company did not recognize any interest income on nonaccrual loans for the three months ended September 30, 2023. The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2022.
Impaired Loans and Leases A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The loans and leases risk-rated "substandard" or worse are considered impaired. The Company has also defined the population of impaired loans to include nonaccrual loans and modified loans. Impaired loans and leases which do not share similar risk characteristics with other loans are individually evaluated for credit losses. Specific reserves are established for loans and leases with deterioration in the present value of expected future cash flows or, in the case of collateral-dependent loans and leases, any increase in the loan or lease amortized cost basis over the fair value of the underlying collateral discounted for estimated selling costs. In contrast, the loans and leases which share similar risk characteristics and are not included in the individually evaluated population are collectively evaluated for credit losses. The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated.
Loan Modifications In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for TDRs while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company estimates the reserve for modifications to borrowers experiencing financial difficulty in a manner similar to the process for non-modified loans. The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.The loans presented in the following tables relate to three customer relationships.
The following tables present the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.
The following table sets forth information regarding TDR loans and leases at the dates indicated:
Total TDR loans and leases at December 31, 2022 were $19.9 million. The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios that were modified during the periods indicated, are as follows.
______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.
______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. The following table sets forth the Company's end-of-period amortized cost basis for TDRs that were modified during the periods indicated, by type of modification.
The TDR loans and leases that were modified for the three months ended September 30, 2022 were $0.4 million. The net charge-offs for performing and nonperforming TDR loans and leases for the nine months ended September 30, 2022 were $0.1 million. The commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs was as of September 30, 2022 were $0.3 million.
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Goodwill and Other Intangible Assets |
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table sets forth the carrying value of goodwill and other intangible assets at the dates indicated:
The addition of goodwill and the increase in core deposit intangibles at September 30, 2023 are both due to the acquisition of PCSB which was closed on January 1, 2023. At December 31, 2013, the Company concluded that the BankRI name would continue to be utilized in its marketing strategies; therefore, the trade name with carrying value of $1.1 million has an indefinite life and ceased to amortize. The weighted-average amortization period for the core deposit intangible is 6.22 years. The estimated aggregate future amortization expense (in thousands) for other intangible assets for each of the next five years and thereafter is as follows:
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) For the nine months ended September 30, 2023 and 2022, the Company’s accumulated other comprehensive income (loss) includes the following three components: (i) unrealized holding gains (losses) on investment securities available-for-sale; (ii) change in the fair value of cash flow hedges; and (iii) adjustment of accumulated obligation for postretirement benefits. Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the periods indicated:
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Derivatives and Hedging Activities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company executes loan level derivative products such as interest rate swap agreements with commercial banking customers to aid them in managing their interest rate risk. The interest rate swap contracts allow the commercial banking customers to convert floating rate loan payments to fixed rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third party financial institution exchanges the customer's fixed rate loan payments for floating rate loan payments. As the interest rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Based on the Company's intended use for the loan level derivatives at inception, the Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging". The Company believes using interest rate derivatives adds stability to interest income and expense and allows the Company to manage its exposure to interest rate movements. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. The Company enters into interest rate swaps as hedging instruments against the interest rate risk associated with the Company's FHLB borrowings and loan portfolio. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income ("OCI"), and is reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The following table reflects the Company's derivative positions as of the date indicated below for interest rate derivatives which qualify as cash flow hedges for accounts purposes.
The Company utilizes risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings in other non-interest income at each reporting period. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. The Company offers foreign exchange contracts to commercial borrowers to accommodate their business needs. These foreign exchange contracts do not qualify as hedges for accounting purposes. To mitigate the market and liquidity risk associated with these foreign exchange contracts, the Company enters into similar offsetting positions. Asset derivatives and liability derivatives are included in other assets and accrued expenses and other liabilities on the unaudited consolidated balance sheets. The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging.
Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. The Company posted collateral to dealer counterparties of $140.6 million and $2.4 million in the normal course of business as of September 30, 2023 and December 31, 2022, respectively. The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the unaudited consolidated balance sheet at the dates indicated.
The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.
The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. The Company monitors the risk of counterparty default on an ongoing basis.
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Stock Based Compensation |
9 Months Ended |
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Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Stock Based Compensation | Stock Based Compensation As of September 30, 2023, the Company had one active equity plan: the Brookline Bancorp, Inc. 2021 Stock Option and Incentive Plan ("2021 Plan"). As a result of the 2021 Plan having been approved by the Company's stockholders at the 2021 annual meeting of stockholders, the Company discontinued granting awards under the Brookline Bancorp, Inc. 2014 Equity Incentive Plan (the "2014 Plan"), and no further shares will be granted as awards under the 2014 Plan. The Brookline Bancorp, Inc. 2011 Restricted Stock Plan (the "2011 Plan") expired in July 2021, and the Company has not issued shares from the 2011 Plan since the adoption of the 2014 Plan. The 2021 Plan and the 2014 Plan are together referred to as the "Plans." Of the awarded shares under the Plans, generally 50% vest ratably over three years with one-third of such shares vesting at each of the first, second and third anniversary dates of the awards. These are referred to as "time-based shares". The remaining 50% of each award will vest three years after the award date based on the level of the Company's achievement of identified performance targets in comparison to the level of achievement of such identified performance targets by a defined peer group. These are referred to as "performance-based shares". If a participant leaves the Company prior to the third anniversary date of an award, any unvested shares are usually forfeited. Dividends declared with respect to shares awarded will be held by the Company and paid to the participant only when the shares vest. Under the Plans, shares of the Company's common stock are reserved for issuance as restricted stock awards to officers, employees, and non-employee directors of the Company. Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company as treasury shares. Any shares not issued because vesting requirements are not met will be retired back to treasury and be made available again for issuance under the Plans. During the three and nine months ended September 30, 2023 and September 30, 2022, 449,265 and 310,349 shares were issued, respectively, upon satisfaction of required conditions of the Plans. Total expense for the Plans was $1.0 million and $0.9 million for the three months ended September 30, 2023 and 2022, respectively. Total expense for the Plan was $2.8 million and $2.4 million for the nine months ended September 30, 2023 and 2022, respectively.
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Earnings per Share ("EPS") |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share ("EPS") | Earnings per Share ("EPS") The following table is a reconciliation of basic EPS and diluted EPS:
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsA description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring and non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in the valuation techniques used during the three and nine months ended September 30, 2023 and September 30, 2022. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:
Investment Securities Available-for-Sale The fair value of investment securities is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds, where applicable. These investments include GSE debentures, GSE mortgage-related securities, SBA commercial loan asset backed securities, corporate debt obligations, municipal obligations and trust preferred securities, all of which are included in Level 2. As of September 30, 2023, $22.6 million of investment securities available-for-sale are included in Level 3 within the investment portfolio. The composition of these assets are primarily composed of subordinated debt of local banks and private placement municipal securities. Of these securities, approximately $15.3 million are private placement municipal Bond Anticipation Notes. As of December 31, 2022, none of the investment securities were valued using pricing models included in Level 3. Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with management's expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for a particular security. Derivatives and Hedging Instruments The fair value of interest rate derivatives designated as hedging instruments, loan level derivatives, risk participation agreements (RPA in/out), and foreign exchange contracts represent a Level 2 valuation and are based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves and foreign exchange rates where applicable. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. To date, the Company has not realized any losses due to a counterparty's inability to pay any net uncollateralized position. Refer also to Note 8, "Derivatives and Hedging Activities." There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis at September 30, 2023 and December 31, 2022, respectively. The following tables summarize information about significant unobservable inputs related to the Company's categories of Level 3 financial assets and liabilities measured on a recurring basis.
The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3).
Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis Assets and liabilities measured at fair value on a non-recurring basis are summarized below at the dated indicated:
Collateral-Dependent Impaired Loans and Leases For nonperforming loans and leases where the credit quality of the borrower has deteriorated significantly, fair values of the underlying collateral were estimated using purchase and sales agreements (Level 2), or comparable sales or recent appraisals (Level 3), adjusted for selling costs and other expenses. Other Real Estate Owned ("OREO") The Company records OREO at the lower of cost or fair value. In estimating fair value, the Company utilizes purchase and sales agreements (Level 2) or comparable sales, recent appraisals or cash flows discounted at an interest rate commensurate with the risk associated with these cash flows (Level 3), adjusted for selling costs and other expenses. As of September 30, 2023 and December 31, 2022, the Company did not record any OREO. Repossessed Assets Repossessed assets are carried at estimated fair value less costs to sell based on auction pricing (Level 2). The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.
________________________________________________________________________ (1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments. Summary of Estimated Fair Values of Financial Instruments The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable.
Loans and Leases The fair values of performing loans and leases was estimated by segregating the portfolio into its primary loan and lease categories—commercial real estate mortgage, multi-family mortgage, construction, commercial, equipment financing, condominium association, residential mortgage, home equity and other consumer. These categories were further disaggregated based upon significant financial characteristics such as type of interest rate (fixed / variable) and payment status (current / past-due). Using the exit price valuation method, the Company discounts the contractual cash flows for each loan category using interest rates currently being offered for loans with similar terms to borrowers of similar quality and incorporates estimates of future loan prepayments. Deposits The fair values of deposit liabilities with no stated maturity (demand, NOW, savings and money market savings accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the Company's core deposit relationships (deposit-based intangibles). Borrowed Funds The fair value of federal funds purchased is equal to the amount borrowed. The fair value of FHLB advances and repurchase agreements represents contractual repayments discounted using interest rates currently available for borrowings with similar characteristics and remaining maturities. The fair values reported for retail repurchase agreements are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on borrowings with similar characteristics and maturities. The fair values reported for subordinated deferrable interest debentures are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar terms and maturities.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Off-Balance Sheet Financial Instruments The Company is party to off-balance sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credit, and loan level derivatives. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received. The contract amounts reflect the extent of the involvement the Company has in particular classes of these instruments. Such commitments involve, to varying degrees, elements of credit risk and interest-rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss in the event of non-performance by the counterparty is represented by the fair value of the instruments. The Company uses the same policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments with off-balance-sheet risk at the dates indicated follow:
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if any, is based on management's credit evaluation of the borrower. Standby and commercial letters of credit are conditional commitments issued by the Company to guarantee performance of a customer to a third party. These standby and commercial letters of credit are primarily issued to support the financing needs of the Company's commercial customers. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. From time to time, the Company enters into loan level derivatives, risk participation agreements or foreign exchange contracts with commercial customers and third-party financial institutions. These derivatives allow the Company to offer long-term fixed-rate commercial loans while mitigating the interest-rate or foreign exchange risk of holding those loans. In a loan level derivative transaction, the Company lends to a commercial customer on a floating-rate basis and then enters into a loan level derivative with that customer. Concurrently, the Company enters into offsetting swaps with a third-party financial institution, effectively minimizing its net interest-rate risk exposure resulting from such transactions. The fair value of these derivatives are presented in Note 8. Lease Commitments The Company leases certain office space under various noncancellable operating leases as well as certain other assets. These leases have original terms ranging from 1 year to over 25 years. Certain leases contain renewal options and escalation clauses which can increase rental expenses based principally on the consumer price index and fair market rental value provisions. All of the Company's current outstanding leases are classified as operating leases. The Company considered the following criteria when determining whether a contract contains a lease, the existence of an identifiable asset and the right to obtain substantially all of the economic benefits from use of the asset through the period. The Company uses the FHLB classic advance rates available as of the lease's start dates as the discount rate to determine the net present value of the remaining lease payments. Total lease commitments increased from $19.5 million as of December 31, 2022 to $32.8 million as of September 30, 2023. The increase is due to the addition of 12 leases for PCSB Bank branch locations.
A summary of future minimum rental payments under such leases at the dates indicated follows:
Certain leases contain escalation clauses for real estate taxes and other expenditures, which are not included above. The total real estate taxes were $1.9 million and $1.5 million for the nine months ended September 30, 2023 and 2022, respectively. Total other expenditures were $0.4 million and $0.3 million for the nine months ended September 30, 2023 and 2022, respectively. Total rental expense was $2.1 million and $1.5 million for the three months ended September 30, 2023 and 2022, respectively. Total rental expense was $6.3 million and $4.5 million for the nine months ended September 30, 2023 and 2022. Legal Proceedings In the normal course of business, there are various outstanding legal proceedings. In the opinion of management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings.
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Revenue from Contracts with Customers |
9 Months Ended |
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Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Overview Revenue from contracts with customers in the scope of ASC 606 ("Topic 606") is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements. In certain cases, other parties are involved with providing services to our customers. If the Company is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported in gross noninterest expense. If the Company is an agent in the transaction (referring to another party to provide services), the Company reports its net fee or commission retained as revenue. A substantial portion of the Company’s revenue is specifically excluded from the scope of Topic 606. This exclusion is associated with financial instruments, including interest income on loans and investment securities, in addition to loan derivative income and gains on loan and investment sales. For the revenue that is in-scope of Topic 606, the following is a description of principal activities from which the Company generates its revenue from contracts with customers, separated by the timing of revenue recognition. Revenue Recognized at a Point in Time The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. Revenue Recognized Over Time The Company recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes commissions on investments, insurance sales and service charges on deposit accounts. Fee revenue from service charges on deposit accounts represents the service charges assessed to customers who hold deposit accounts at the Banks.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net income | $ 22,701 | $ 30,149 | $ 52,111 | $ 80,049 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies | |
Basis of Financial Statement Presentation | Basis of Financial Statement PresentationThe unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to the rules of the SEC for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying 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 fiscal year ended December 31, 2022. |
Consolidation | The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. |
Use of Estimates | In preparing these consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the allowance for credit losses, the determination of fair market values of acquired assets and liabilities, including acquired loans, the review of goodwill and intangible assets for impairment and the review of deferred tax assets for valuation allowances. The judgments used by management in applying these critical accounting policies may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan and lease losses in future periods, and the inability to collect outstanding principal may result in increased loan and lease losses.
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Reclassification | ReclassificationCertain previously reported amounts have been reclassified to conform to the current year's presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, "Reference Rate Reform (Topic 848)-Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") to provide optional expedients and exceptions for applying GAAP to certain contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients provided that those elections are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022 and do not apply to contract modifications made after December 31, 2022. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)" an update to address concerns around structural risk of interbank offered rates ("IBORs"), particularly, the risk of cessation of the LIBOR. The amendments in this update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. In December 2022, FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848)" which deferred the sunset date of Topic 848 to December 31, 2024, to allow for a transition period after the sunset of LIBOR. The Company has adopted the amendments in these updates and established a LIBOR transition committee to guide the Company’s transition from LIBOR. The Company has completed much of the work to transition off the LIBOR index consistent with industry timelines. The working group has identified its products that utilize LIBOR and has implemented fallback language to facilitate the transition to alternative rates. The Company has also evaluated its infrastructure and identified fallback rates as well as started offering alternative indices and new products tied to these alternative indices. The Company does not anticipate the adoption of these standards to have a material impact to the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The Company adopted ASU 2021-08 as of January 1, 2023 on a prospective basis. The adoption did not have a material impact on the Company's consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" which addresses concerns regarding the complex accounting for loans modified as troubled debt restructurings (“TDRs”) and also the disclosure of gross writeoff information included in required vintage disclosures. The Company adopted ASU 2022-02 as of January 1, 2023. The enhanced disclosure requirements provided for by ASU 2022-02 were adopted on a prospective basis. Reporting periods prior to the adoption of ASU 2022-02 are presented in accordance with the applicable GAAP. The adoption did not have a material impact on the Company’s consolidated financial statements.
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Acquisitions (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary purchase price allocation to the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition:
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Financing Receivable, Purchased With Credit Deterioration | The following table reconciles the unpaid principal balance to the fair value of PCD loans and leases:
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Schedule of Pro Forma Financial Information | The following table summarizes supplemental pro forma financial information giving effect to the merger as if it had been completed on January 1, 2022:
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Schedule of Business Combination, Acquisition Related Costs | In addition, the supplemental pro forma financial information was adjusted to include the $7.4 million of merger-related expenses recognized during the nine months ended September 30, 2023, as summarized in the following table:
(1) Comprised primarily of severance and employee retention costs. (2) Comprised primarily of technology contract termination fees. (3) Comprised primarily of advisory, legal, accounting, and other professional fees. (4) Comprised primarily of costs of travel and other miscellaneous expenses.
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of securities available-for-sale securities | The following tables set forth investment securities available-for-sale at the dates indicated:
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Schedule of investment securities in a continuous unrealized loss position | Investment securities as of September 30, 2023 and December 31, 2022 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows:
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Schedule of maturities of the investments in debt securities | The final stated maturities of the debt securities are as follows for the periods indicated:
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Schedule of sales of investment securities | The proceeds from the sale of investment securities available-for-sale were $230.0 million during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022 where the Company did not sell any investment securities available-for-sale. Securities sales executed during the nine months ended were related to the acquisition of PCSB and the restructuring of the acquired investment portfolio.
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Loans and Leases (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of loan and lease balances for the originated and acquired portfolios | The following table presents the amortized cost of loans and leases and weighted average coupon rates for the loan and lease portfolios at the dates indicated:
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Allowance for Credit Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the allowance for loan and lease losses | The following tables present the changes in the allowance for loan and lease losses in loans and leases by portfolio segment for the periods indicated:
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Schedule of provisions for credit losses | The provision (credit) for credit losses are set forth below for the periods indicated:
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Summary of the recorded investments by credit quality indicator, by loan class | The following table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of September 30, 2023.
As of September 30, 2023, there were no loans categorized as definite loss. For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model.
_______________________________________________________________________________ * Primarily represents loans made to trusts and purchased mortgages. The following tables present the recorded investment in loans in each class as of December 31, 2022, by credit quality indicator.
As of December 31, 2022, there were no loans categorized as definite loss.
_______________________________________________________________________________ * Primarily represents loans made to trusts and purchased mortgages.
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Schedule of information regarding the aging of past due loans, by loan class | The following table presents an age analysis of the amortized cost basis in loans and leases as of September 30, 2023.
The Company did not recognize any interest income on nonaccrual loans for the three months ended September 30, 2023. The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2022.
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Schedule of the impaired and non-impaired loans and leases, by loan and leases class | The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated.
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Financing receivable, modified | The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.The loans presented in the following tables relate to three customer relationships.
The following tables present the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.
The following table sets forth information regarding TDR loans and leases at the dates indicated:
The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios that were modified during the periods indicated, are as follows.
______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.
______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. The following table sets forth the Company's end-of-period amortized cost basis for TDRs that were modified during the periods indicated, by type of modification.
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Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill and other intangible assets | The following table sets forth the carrying value of goodwill and other intangible assets at the dates indicated:
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Schedule of estimated aggregate future amortization expense for intangible assets | The estimated aggregate future amortization expense (in thousands) for other intangible assets for each of the next five years and thereafter is as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive (loss) income by component, net of tax | Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the periods indicated:
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Derivatives and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of hedged forecasted transaction affects earnings | The following table reflects the Company's derivative positions as of the date indicated below for interest rate derivatives which qualify as cash flow hedges for accounts purposes.
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Schedule of customer related derivative positions | The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging.
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Schedule of offsetting derivatives and amounts subject to master netting agreements not offset in the audited consolidated balance sheet | The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the unaudited consolidated balance sheet at the dates indicated.
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Schedule of gain (loss) of derivatives | These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.
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Earnings per Share ("EPS") (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of basic EPS and diluted EPS | The following table is a reconciliation of basic EPS and diluted EPS:
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, assets measured on recurring basis | The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:
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Fair value, liabilities measured on recurring basis | The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:
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Schedule of quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a recurring basis | The following tables summarize information about significant unobservable inputs related to the Company's categories of Level 3 financial assets and liabilities measured on a recurring basis.
The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.
________________________________________________________________________ (1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments.
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Fair value, assets measured on recurring basis, unobservable input reconciliation | The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3).
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Schedule of assets and liabilities measured at fair value on a recurring and non-recurring basis | Assets and liabilities measured at fair value on a non-recurring basis are summarized below at the dated indicated:
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Summary of the carrying values and estimated fair values | The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable.
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial instruments with off-balance sheet risk | Financial instruments with off-balance-sheet risk at the dates indicated follow:
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Schedule of lease cost, supplemental cash flow and supplemental balance sheet information |
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Schedule of maturities of operating leases | A summary of future minimum rental payments under such leases at the dates indicated follows:
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Basis of Presentation (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
bank
office
| |
Basis of Presentation | |
Number of full-service banking offices | 29 |
Number of lending offices | office | 2 |
BankRI | |
Basis of Presentation | |
Number of full-service banking offices | 21 |
UpCounty Realty Corp | |
Basis of Presentation | |
Number of full-service banking offices | 14 |
Acquisitions - Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jan. 01, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
LIABILITIES | ||||
Goodwill | $ 241,222 | $ 160,427 | $ 160,427 | |
PCSB | ||||
Business Acquisition [Line Items] | ||||
Purchase price consideration | $ 297,791 | |||
ASSETS | ||||
Cash | 42,373 | |||
Investments | 366,790 | |||
Loans | 1,336,737 | |||
Allowance for credit losses on PCD loans | (2,344) | |||
Premises and equipment | 14,631 | |||
Core deposit and other intangibles | 30,265 | |||
Other assets | 104,654 | |||
Total assets acquired | 1,893,106 | |||
LIABILITIES | ||||
Deposits | 1,570,563 | |||
Borrowings | 52,923 | |||
Other liabilities | 52,624 | |||
Total liabilities assumed | 1,676,110 | |||
Net assets acquired | 216,996 | |||
Goodwill | 80,795 | |||
Loans subsequently reclassified as investments | $ 20,000 |
Acquisitions - Financing Receivable, Purchased With Credit Deterioration (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Business Combination and Asset Acquisition [Abstract] | |
Total unpaid principal balance | $ 16,824 |
Allowance for credit losses at acquisition | (2,344) |
Non-credit discount | (974) |
Fair value | $ 13,506 |
Acquisitions - Pro Forma Financial Information (Details) - PCSB - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Business Acquisition [Line Items] | ||||
Net interest income | $ 84,070 | $ 95,106 | $ 256,156 | $ 265,712 |
Non-interest income | 5,508 | 7,627 | 22,203 | 22,095 |
Net income | $ 23,223 | $ 36,251 | $ 70,624 | $ 74,293 |
Acquisitions - Merger-related Expenses (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Business Acquisition [Line Items] | ||||
Total merger-related expenses | $ 0 | $ 1,073,000 | $ 7,411,000 | $ 1,608,000 |
PCSB | ||||
Business Acquisition [Line Items] | ||||
Compensation and benefits | 1,750,000 | |||
Technology and equipment | 1,857,000 | |||
Professional and outside services | 3,563,000 | |||
Other expense | 242,000 | |||
Total merger-related expenses | $ 0 | $ 7,413,000 |
Investment Securities - Portfolio Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Amortized Cost | ||
Within 1 year | $ 149,452 | $ 119,912 |
After 1 year through 5 years | 304,754 | 163,941 |
After 5 years through 10 years | 290,413 | 291,284 |
Over 10 years | 235,213 | 158,841 |
Amortized Cost | 979,832 | 733,978 |
Estimated Fair Value | ||
Within 1 year | 148,471 | 119,075 |
After 1 year through 5 years | 289,325 | 156,120 |
After 5 years through 10 years | 241,485 | 244,847 |
Over 10 years | 201,131 | 136,724 |
Total | $ 880,412 | $ 656,766 |
Weighted Average Rate | ||
Within 1 year | 4.41% | 3.10% |
After 1 year through 5 years | 3.08% | 2.40% |
After 5 years through 10 years | 1.73% | 1.30% |
Over 10 years | 3.36% | 2.10% |
Total | 3.00% | 2.06% |
Investment Securities - Security Sales (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Investment securities available-for-sale: | ||
Proceeds from sales: | $ 229,981,000 | $ 0 |
Gross gains from sales | 2,705,000 | 0 |
Gross losses from sales | (1,001,000) | 0 |
Gain on sales of securities, net | $ 1,704,000 | $ 0 |
Loans and Leases - Narrative (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unamortized deferred loan origination costs | $ (31,400,000) | $ 11,300,000 |
Percentage of loans to aggregate outstanding amount in the greater New York/New Jersey Metropolitan area and northeastern states | 29.20% | |
Percentage of loans to aggregate outstanding amount in other areas of the United States | 70.80% | |
Total loans and leases | $ 9,380,782,000 | 7,644,388,000 |
FRB Borrowings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Asset Pledged as Collateral with Right | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 3,200,000,000 | 2,400,000,000 |
Loans and Leases Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest on loans and leases | $ 37,200,000 | $ 26,100,000 |
Allowance for Credit Losses - Schedule of Information Regarding Troubled Debt Restructuring Loans and Leases (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
Troubled debt restructurings: | |
On accrual | $ 16,385 |
On nonaccrual | 3,527 |
Total troubled debt restructurings | $ 19,912 |
Allowance for Credit Losses - End-of-Period Amortized Cost Basis for Troubled Debt Restructurings That Were Modified (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2022 |
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 411 | $ 1,203 |
Extended maturity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | 0 | 0 |
Combination maturity, principal, interest rate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 411 | $ 1,203 |
Goodwill and Other Intangible Assets - Carrying Value of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Goodwill [Roll Forward] | ||
Goodwill | $ 160,427 | $ 160,427 |
Additions | 80,795 | 0 |
Balance at end of period | 241,222 | 160,427 |
Total other intangible assets | 26,172 | 1,781 |
Total goodwill and other intangible assets | 267,394 | 162,208 |
Core deposits | ||
Goodwill [Roll Forward] | ||
Total other intangible assets | 25,083 | 692 |
Trade name | ||
Goodwill [Roll Forward] | ||
Total other intangible assets | $ 1,089 | $ 1,089 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2013 |
|
Core deposits | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted-average amortization period | 6 years 2 months 19 days | |
Trade name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 1.1 |
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 1,955 |
Year ending: | |
2024 | 6,636 |
2025 | 5,507 |
2026 | 4,398 |
2027 | 3,329 |
2028 | 2,177 |
Thereafter | 1,081 |
Total | $ 25,083 |
Derivatives and Hedging Activities - Hedged Forecasted Transaction Affects Earnings (Details) - Interest rate swaps on loans - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 225,000 | $ 150,000 |
Average Maturity | 3 years 2 months 12 days | 3 years 9 months 7 days |
Current Rate Paid | 5.32% | 4.11% |
Received Fixed Swap Rate | 3.39% | 3.26% |
Fair Value | $ (7,206) | $ (3,030) |
Derivatives and Hedging Activities - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral posted | $ 140.6 | $ 2.4 |
Derivatives and Hedging Activities - Schedule of Gain (Loss) of Derivatives (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivatives designated as hedges | $ (7,206) | $ (2,879) |
(Loss) gain in OCI on derivatives (effective portion), net of tax | (5,049) | (2,114) |
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion) | $ (2,513) | $ 212 |
Earnings per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Numerator: | ||||
Net income | $ 22,701 | $ 30,149 | $ 52,111 | $ 80,049 |
Denominator: | ||||
Weighted average shares outstanding (in shares) | 88,795,270 | 76,779,038 | 88,016,190 | 77,159,356 |
Effect of dilutive securities (in shares) | 175,940 | 228,933 | 237,171 | 288,934 |
Adjusted weighted average shares outstanding (in shares) | 88,971,210 | 77,007,971 | 88,253,361 | 77,448,290 |
Basic EPS (in dollars per share) | $ 0.26 | $ 0.39 | $ 0.59 | $ 1.04 |
Diluted EPS (in dollars per share) | $ 0.26 | $ 0.39 | $ 0.59 | $ 1.04 |
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Fair value of assets and liabilities | ||
Estimated Fair Value | $ 880,412 | $ 656,766 |
Changes in generic pricing of securities period one, considered for analyzing changes in prices obtained from pricing service | 15 years | |
Changes in generic pricing of securities period two, considered for analyzing changes in prices obtained from pricing service | 30 years | |
Recurring basis | Investment securities available for sale | ||
Fair value of assets and liabilities | ||
Estimated Fair Value | $ 880,412 | 656,766 |
Level 3 | Recurring basis | Investment securities available for sale | ||
Fair value of assets and liabilities | ||
Estimated Fair Value | $ 22,562 | $ 0 |
Fair Value of Financial Instruments - Changes in Estimated Fair Value For All Assets and Liabilities Measured at Estimated Fair Value (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Municipal obligations | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 0 |
Purchases | 8,374 |
Included in comprehensive income | (200) |
Transfers in | 18,881 |
Transfers out | 0 |
Sales | 0 |
Maturities, calls, and paydowns | (11,790) |
Ending balance | 15,265 |
Corporate debt obligations | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 0 |
Purchases | 0 |
Included in comprehensive income | (62) |
Transfers in | 12,058 |
Transfers out | 0 |
Sales | (4,748) |
Maturities, calls, and paydowns | 49 |
Ending balance | $ 7,297 |
Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial liabilities: | ||
Borrowed funds | $ 151,612 | $ 110,785 |
Level 1 | ||
Financial assets: | ||
Loans and leases, net | 0 | 0 |
Financial liabilities: | ||
Certificates of deposits | 0 | 0 |
Borrowed funds | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Loans and leases, net | 0 | 0 |
Financial liabilities: | ||
Certificates of deposits | 2,364,405 | 1,217,024 |
Borrowed funds | 1,131,605 | 1,431,716 |
Level 3 | ||
Financial assets: | ||
Loans and leases, net | 8,736,589 | 7,450,654 |
Financial liabilities: | ||
Certificates of deposits | 0 | 0 |
Borrowed funds | 0 | 0 |
Carrying Value | ||
Financial assets: | ||
Loans and leases, net | 9,261,701 | 7,545,906 |
Financial liabilities: | ||
Certificates of deposits | 2,386,237 | 1,238,287 |
Borrowed funds | 1,135,068 | 1,432,652 |
Estimated Fair Value | ||
Financial assets: | ||
Loans and leases, net | 8,736,589 | 7,450,654 |
Financial liabilities: | ||
Certificates of deposits | 2,364,405 | 1,217,024 |
Borrowed funds | $ 1,131,605 | $ 1,431,716 |
Commitments and Contingencies - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
lease
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
lease
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Lessee, Lease, Description [Line Items] | |||||
Operating lease liabilities | $ 32,807 | $ 32,807 | $ 19,484 | ||
Increase in number of leases | lease | 12 | 12 | |||
Real estate taxes | $ 1,900 | $ 1,500 | |||
Expenditures | 400 | 300 | |||
Total operating rental expense | $ 2,100 | $ 1,500 | $ 6,300 | $ 4,500 | |
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 25 years | 25 years |
Commitments and Contingencies - Lease Costs, Cash Flows and Balance Sheet Supplemental Information (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease cost | $ 6,303 | $ 4,708 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | 6,662 | 4,849 | |
Right-of-use assets obtained in exchange for new lease obligations: | |||
Operating leases assets | 14,829 | 14 | |
Operating leases liabilities | 16,496 | $ 0 | |
Supplemental balance sheet information related to leases was as follows: | |||
Operating lease right-of-use assets | 31,619 | $ 19,484 | |
Operating lease liabilities | $ 32,807 | $ 19,484 | |
Weighted Average Remaining Lease Term | |||
Operating leases | 9 years 2 months 23 days | 7 years 4 months 20 days | |
Weighted Average Discount Rate | |||
Operating leases | 4.10% | 3.50% |
Commitments and Contingencies - Maturities of Operating Leases (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder of 2023 | $ 2,186 | |
2024 | 7,863 | |
2025 | 6,437 | |
2026 | 5,028 | |
2027 | 4,062 | |
2028 | 2,682 | |
Thereafter | 9,676 | |
Total | 37,934 | |
Less imputed interest | (5,127) | |
Present value of lease liability | $ 32,807 | $ 19,484 |
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