10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2019

or

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from              to

Commission File Number: 001-31566

PROVIDENT FINANCIAL SERVICES, INC.

(Exact Name of Registrant as Specified in Its Charter)  

Delaware	42-1547151
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
239 Washington Street, Jersey City, New Jersey	07302
(Address of Principal Executive Offices)	(Zip Code)

(732) 590-9200

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  ý    NO  ¨

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding twelve months (or for such shorter period that the Registrant was required to submit and post such files).    YES  ý    NO  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	ý	Accelerated Filer	¨
Non-Accelerated Filer	¨	Smaller Reporting Company	¨
		Emerging Growth Company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  ý

As of May 1, 2019 there were 83,209,293 shares issued and 66,749,719 shares outstanding of the Registrant’s Common Stock, par value $0.01 per share, including 238,473 shares held by the First Savings Bank Directors’ Deferred Fee Plan not otherwise considered outstanding under U.S. generally accepted accounting principles.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol Symbol(s)	Name of each exchange on which registered
Common	PFS	New York Stock Exchange

1

PROVIDENT FINANCIAL SERVICES, INC.

INDEX TO FORM 10-Q

Item Number		Page Number
PART I—FINANCIAL INFORMATION
1	Financial Statements:
	Consolidated Statements of Financial Condition as of March 31, 2019 (unaudited) and December 31, 2018	3
	Consolidated Statements of Income for the three months ended March 31, 2019 and 2018 (unaudited)	4
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2019 and 2018 (unaudited)	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018 (unaudited)	8
	Notes to Unaudited Consolidated Financial Statements	10
2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
3	Quantitative and Qualitative Disclosures About Market Risk	40
4	Controls and Procedures	41
PART II—OTHER INFORMATION
1	Legal Proceedings	42
1A.	Risk Factors	42
2	Unregistered Sales of Equity Securities and Use of Proceeds	42
3	Defaults Upon Senior Securities	42
4	Mine Safety Disclosures	42
5	Other Information	42
6	Exhibits	42
Signatures		44

2

PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

March 31, 2019 (Unaudited) and December 31, 2018 

(Dollars in Thousands)

	March 31, 2019		December 31, 2018
ASSETS
Cash and due from banks	$	141,658	$	86,195
Short-term investments	56,196		56,466
Total cash and cash equivalents	197,854		142,661
Available for sale debt securities, at fair value	1,083,601		1,063,079
Held to maturity debt securities (fair value of $479,827 at March 31, 2019 (unaudited) and $479,740 at December 31, 2018)	472,039		479,425
Equity securities, at fair value	724		635
Federal Home Loan Bank stock	68,634		68,813
Loans	7,223,844		7,250,588
Less allowance for loan losses	55,353		55,562
Net loans	7,168,491		7,195,026
Foreclosed assets, net	1,264		1,565
Banking premises and equipment, net	56,733		58,124
Accrued interest receivable	31,180		31,475
Intangible assets	417,688		418,178
Bank-owned life insurance	192,894		193,085
Other assets	111,512		73,703
Total assets	$	9,802,614	$	9,725,769
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand deposits	$	5,046,950	$	5,027,708
Savings deposits	1,051,904		1,051,922
Certificates of deposit of $100,000 or more	478,043		414,848
Other time deposits	326,559		335,644
Total deposits	6,903,456		6,830,122
Mortgage escrow deposits	27,363		25,568
Borrowed funds	1,398,490		1,442,282
Other liabilities	99,489		68,817
Total liabilities	8,428,798		8,366,789
Stockholders’ Equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued	—		—
Common stock, $0.01 par value, 200,000,000 shares authorized, 83,209,293 shares issued and 66,502,750 shares outstanding at March 31, 2019 and 66,325,458 outstanding at December 31, 2018	832		832
Additional paid-in capital	1,023,671		1,021,533
Retained earnings	657,375		651,099
Accumulated other comprehensive loss	(5,084)		(12,336)
Treasury stock	(274,005)		(272,470)
Unallocated common stock held by the Employee Stock Ownership Plan	(28,973)		(29,678)
Common stock acquired by the Directors’ Deferred Fee Plan	(4,337)		(4,504)
Deferred compensation – Directors’ Deferred Fee Plan	4,337		4,504
Total stockholders’ equity	1,373,816		1,358,980
Total liabilities and stockholders’ equity	$	9,802,614	$	9,725,769

See accompanying notes to unaudited consolidated financial statements.

3

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three months ended March 31, 2019 and 2018 (Unaudited)

(Dollars in Thousands, except per share data)

	Three months ended March 31,
	2019		2018
Interest income:
Real estate secured loans	$	55,006	$	51,510
Commercial loans	20,510		19,126
Consumer loans	4,783		4,905
Available for sale debt securities, equity securities and Federal Home Loan Bank Stock	8,409		7,251
Held to maturity debt securities	3,162		3,144
Deposits, Federal funds sold and other short-term investments	541		395
Total interest income	92,411		86,331
Interest expense:
Deposits	10,494		6,235
Borrowed funds	6,910		6,819
Total interest expense	17,404		13,054
Net interest income	75,007		73,277
Provision for loan losses	200		5,400
Net interest income after provision for loan losses	74,807		67,877
Non-interest income:
Fees	6,097		6,639
Wealth management income	4,079		4,400
Bank-owned life insurance	1,696		1,264
Net gain on securities transactions	—		1
Other income	316		1,003
Total non-interest income	12,188		13,307
Non-interest expense:
Compensation and employee benefits	28,369		27,869
Net occupancy expense	6,857		6,745
Data processing expense	3,969		3,606
FDIC insurance	739		1,053
Amortization of intangibles	490		570
Advertising and promotion expense	883		967
Other operating expenses	7,109		6,100
Total non-interest expense	48,416		46,910
Income before income tax expense	38,579		34,274
Income tax expense	7,689		6,361
Net income	$	30,890	$	27,913
Basic earnings per share	$	0.48	$	0.43
Weighted average basic shares outstanding	64,766,619		64,768,977
Diluted earnings per share	$	0.48	$	0.43
Weighted average diluted shares outstanding	64,912,738		64,949,442

See accompanying notes to unaudited consolidated financial statements.

4

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

Three months ended March 31, 2019 and 2018 (Unaudited)

(Dollars in Thousands)

	Three months ended March 31,
	2019		2018
Net income	$	30,890	$	27,913
Other comprehensive (loss) income, net of tax:
Unrealized gains and losses on available for sale debt securities:
Net unrealized gains (losses) arising during the period	7,578		(9,639)
Reclassification adjustment for gains included in net income	—		—
Total	7,578		(9,639)
Unrealized (losses) gains on derivatives	(314)		530
Amortization related to post-retirement obligations	(12)		62
Total other comprehensive income (loss)	7,252		(9,047)
Total comprehensive income	$	38,142	$	18,866

See accompanying notes to unaudited consolidated financial statements.

5

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

Three months ended March 31, 2019 and 2018 (Unaudited)

(Dollars in Thousands)

	COMMONSTOCK		ADDITIONAL PAID-IN CAPITAL		RETAINEDEARNINGS		ACCUMULATED OTHER COMPREHENSIVE LOSS		TREASURYSTOCK		UNALLOCATED ESOP SHARES		COMMON STOCK ACQUIRED BY DDFP		DEFERRED COMPENSATION DDFP		TOTAL STOCKHOLDERS’ EQUITY
Balance at December 31, 2017	$	832	$	1,012,908	$	586,132	$	(7,465)	$	(259,907)	$	(33,839)	$	(5,175)	$	5,175	$	1,298,661
Net income	—		—		27,913		—		—		—		—		—		27,913
Other comprehensive loss, net of tax	—		—		—		(9,047)		—		—		—		—		(9,047)
Cash dividends paid	—		—		(13,638)		—		—		—		—		—		(13,638)
Effect of adopting Accounting Standards Update ("ASU") No. 2016-01	—		—		184		(184)		—		—		—		—		—
Distributions from DDFP	—		40		—		—		—		—		167		(167)		40
Purchase of employee restricted shares to fund statutory tax withholding	—		—		—		—		(1,792)		—		—		—		(1,792)
Shares issued dividend reinvestment plan	—		135		—		—		284		—		—		—		419
Stock option exercises	—		(65)		—		—		240		—		—		—		175
Allocation of ESOP shares	—		380		—		—		—		705		—		—		1,085
Allocation of SAP shares	—		1,025		—		—		—		—		—		—		1,025
Allocation of stock options	—		45		—		—		—		—		—		—		45
Balance at March 31, 2018	$	832	$	1,014,468	$	600,591	$	(16,696)	$	(261,175)	$	(33,134)	$	(5,008)	$	5,008	$	1,304,886

See accompanying notes to unaudited consolidated financial statements.

6

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

 Three months ended March 31, 2019 and 2018 (Unaudited) (Continued)

(Dollars in Thousands)

	COMMONSTOCK		ADDITIONAL PAID-IN CAPITAL		RETAINED EARNINGS		ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME		TREASURY STOCK		UNALLOCATED ESOP SHARES		COMMON STOCK ACQUIRED BY DDFP		DEFERRED COMPENSATION DDFP		TOTAL STOCKHOLDERS’ EQUITY
Balance at December 31, 2018	$	832	$	1,021,533	$	651,099	$	(12,336)	$	(272,470)	$	(29,678)	$	(4,504)	$	4,504	$	1,358,980
Net income	—		—		30,890		—		—		—		—		—		30,890
Other comprehensive income, net of tax	—		—		—		7,252		—		—		—		—		7,252
Cash dividends paid	—		—		(28,964)		—		—		—		—		—		(28,964)
Effect of adopting ASU No. 2016-02	—		—		4,350		—		—		—		—		—		4,350
Distributions from DDFP	—		42		—		—		—		—		167		(167)		42
Purchases of treasury stock	—		—		—		—		(180)		—		—		—		(180)
Purchase of employee restricted shares to fund statutory tax withholding	—		—		—		—		(1,914)		—		—		—		(1,914)
Shares issued dividend reinvestment plan	—		307		—		—		533		—		—		—		840
Stock option exercises	—		(11)		—		—		26		—		—		—		15
Allocation of ESOP shares	—		370		—		—		—		705		—		—		1,075
Allocation of SAP shares	—		1,388		—		—		—		—		—		—		1,388
Allocation of stock options	—		42		—		—		—		—		—		—		42
Balance at March 31, 2019	$	832	$	1,023,671	$	657,375	$	(5,084)	$	(274,005)	$	(28,973)	$	(4,337)	$	4,337	$	1,373,816

See accompanying notes to unaudited consolidated financial statements.

7

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

Three months ended March 31, 2019 and 2018 (Unaudited)

(Dollars in Thousands)

	Three months ended March 31,
	2019		2018
Cash flows from operating activities:
Net income	$	30,890	$	27,913
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	2,454		2,598
Provision for loan losses	200		5,400
Deferred tax expense	3,184		2,015
Amortization of operating lease right-of-use assets	1,542		—
Net decrease in operating lease liabilities	(1,598)		—
Income on Bank-owned life insurance	(1,696)		(1,264)
Net amortization of premiums and discounts on securities	1,756		2,279
Accretion of net deferred loan fees	(1,220)		(1,286)
Amortization of premiums on purchased loans, net	160		200
Net increase in loans originated for sale	(3,942)		(4,117)
Proceeds from sales of loans originated for sale	4,215		4,528
Proceeds from sales and paydowns of foreclosed assets	585		466
ESOP expense	1,075		1,085
Allocation of stock award shares	1,388		1,025
Allocation of stock options	42		45
Net gain on sale of loans	(273)		(411)
Net gain on securities transactions	—		(1)
Net gain on sale of foreclosed assets	(57)		(181)
Decrease (increase) in accrued interest receivable	295		(924)
Decrease in other assets	6,148		1,146
Decrease in other liabilities	(13,780)		(8,309)
Net cash provided by operating activities	31,368		32,207
Cash flows from investing activities:
Proceeds from maturities, calls and paydowns of held to maturity debt securities	11,432		21,934
Purchases of held to maturity debt securities	(5,780)		(11,881)
Proceeds from maturities, calls and paydowns of available for sale debt securities	40,258		55,279
Purchases of available for sale debt securities	(50,384)		(72,154)
Proceeds from redemption of Federal Home Loan Bank stock	31,536		39,929
Purchases of Federal Home Loan Bank stock	(31,357)		(33,342)
Net decrease in loans	27,579		34,994
Purchases of premises and equipment	(593)		(502)
Net cash provided by investing activities	22,691		34,257
Cash flows from financing activities:
Net increase in deposits	73,334		42,417
Increase in mortgage escrow deposits	1,795		1,061
Cash dividends paid to stockholders	(28,964)		(13,638)
Shares issued dividend reinvestment plan	840		419
Purchase of treasury stock	(180)		—
Purchase of employee restricted shares to fund statutory tax withholding	(1,914)		(1,792)
Stock options exercised	15		175
Proceeds from long-term borrowings	85,000		265,000
Payments on long-term borrowings	(213,360)		(135,810)

8

	Three months ended March 31,
	2019		2018
Net increase (decrease) in short-term borrowings	84,568		(281,616)
Net cash provided by (used in) financing activities	1,134		(123,784)
Net increase (decrease) in cash and cash equivalents	55,193		(57,320)
Cash and cash equivalents at beginning of period	142,661		190,834
Cash and cash equivalents at end of period	$	197,854	$	133,514
Cash paid during the period for:
Interest on deposits and borrowings	$	17,377	$	12,972
Income taxes	$	100	$	3,619
Non cash investing activities:
Initial recognition of operating lease right-of-use assets	$	44,946	$	—
Initial recognition of operating lease liabilities	$	46,050	$	—
Transfer of loans receivable to foreclosed assets	$	227	$	673

See accompanying notes to unaudited consolidated financial statements.

9

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

A. Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements include the accounts of Provident Financial Services, Inc. and its wholly owned subsidiary, Provident Bank (the “Bank,” together with Provident Financial Services, Inc., the “Company”).

In preparing the interim unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and the consolidated statements of income for the periods presented. Actual results could differ from these estimates. The allowance for loan losses and the valuation of deferred tax assets are material estimates that are particularly susceptible to near-term change.

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations that may be expected for all of 2019.

Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

These unaudited consolidated financial statements should be read in conjunction with the December 31, 2018 Annual Report to Stockholders on Form 10-K.

B. Earnings Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three months ended March 31, 2019 and 2018 (dollars in thousands, except per share amounts):

	Three months ended March 31,
	2019					2018
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	30,890				$	27,913
Basic earnings per share:
Income available to common stockholders	$	30,890	64,766,619	$	0.48	$	27,913	64,768,977	$	0.43
Dilutive shares			146,119					180,465
Diluted earnings per share:
Income available to common stockholders	$	30,890	64,912,738	$	0.48	$	27,913	64,949,442	$	0.43

Antidilutive stock options and awards at March 31, 2019 and 2018, totaling 688,655 shares and 484,613 shares, respectively, were excluded from the earnings per share calculations.

Note 2. Investment Securities

At March 31, 2019, the Company had $1.08 billion and $472.0 million in available for sale debt securities and held to maturity debt securities, respectively. Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, regulatory actions, changes in the business environment or any changes in the competitive marketplace could have an adverse effect on the Company’s investment portfolio which could result in other-than-temporary impairment ("OTTI") in future periods. The total number of available for sale and held to maturity debt securities in an unrealized loss position as of March 31, 2019, totaled 260, compared with 509 at December 31, 2018. All securities with unrealized losses at

10

March 31, 2019 were analyzed for OTTI. Based upon this analysis, the Company believes that, as of March 31, 2019, such securities with unrealized losses do not represent impairments that are other-than-temporary.

Available for Sale Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,057,405	5,205	(8,128)	1,054,482
State and municipal obligations	3,944		144	—	4,088
Corporate obligations	25,037		92	(98)	25,031
	$	1,086,386	5,441	(8,226)	1,083,601

	December 31, 2018
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,048,415	2,704	(16,150)	1,034,969
State and municipal obligations	2,828		84	—	2,912
Corporate obligations	25,039		268	(109)	25,198
	$	1,076,282	3,056	(16,259)	1,063,079

The amortized cost and fair value of available for sale debt securities at March 31, 2019, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

	March 31, 2019
	Amortized cost		Fair Value
Due in one year or less	$	—	—
Due after one year through five years	3,005		3,027
Due after five years through ten years	25,976		26,092
Due after ten years	—		—
	$	28,981	29,119

Mortgage-backed securities totaling $1.06 billion at amortized cost and $1.05 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

For the three months ended March 31, 2019 and 2018, no securities were sold or called from the available for sale debt securities portfolio.

The following tables present the fair values and gross unrealized losses for available for sale debt securities with temporary impairment at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair Value	Gross unrealized losses
Mortgage-backed securities	$	5,066	(1)	591,692	(8,127)	596,758	(8,128)
Corporate obligations	—		—	4,902	(98)	4,902	(98)
	$	5,066	(1)	596,594	(8,225)	601,660	(8,226)

11

	December 31, 2018 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Mortgage-backed securities	$	218,175	(2,173)	545,880	(13,977)	764,055	(16,150)
Corporate obligations	7,897		(109)	—	—	7,897	(109)
	$	226,072	(2,282)	545,880	(13,977)	771,952	(16,259)

The number of available for sale debt securities in an unrealized loss position at March 31, 2019 totaled 130, compared with 175 at December 31, 2018. The decrease in the number of securities in an unrealized loss position at March 31, 2019 was due to lower current market interest rates compared to rates at December 31, 2018. All temporarily impaired securities were investment grade at March 31, 2019. At March 31, 2019, there was one private label mortgage-backed security in an unrealized loss position, with an amortized cost of $24,000 and an unrealized loss of $2,000. This private label mortgage-backed security was investment grade at March 31, 2019.

Based on its detailed review of the available for sale debt securities portfolio, the Company believes that as of March 31, 2019, securities with unrealized loss positions shown above do not represent impairments that are other-than-temporary. The Company does not have the intent to sell securities in a temporary loss position at March 31, 2019, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

Held to Maturity Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	4,620	6	(56)	4,570
Mortgage-backed securities	170		3	—	173
State and municipal obligations	456,554		8,850	(957)	464,447
Corporate obligations	10,695		14	(72)	10,637
	$	472,039	8,873	(1,085)	479,827

	December 31, 2018
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair Value
Agency obligations	$	4,989	1	(94)	4,896
Mortgage-backed securities	187		3	—	190
State and municipal obligations	463,801		4,329	(3,767)	464,363
Corporate obligations	10,448		1	(158)	10,291
	$	479,425	4,334	(4,019)	479,740

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair values may fluctuate during the investment period. There were no sales of securities from the held to maturity debt securities portfolio for the three months ended March 31, 2019 and 2018. For the three months ended March 31, 2019, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $9.3 million with no gross gains and no gross losses. For the three months ended March 31, 2018, proceeds from calls of securities in the held to maturity debt securities portfolio totaled $20.3 million with gross gains of $1,000 and no gross loss recognized.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at March 31, 2019 by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

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	March 31, 2019
	Amortized cost		Fair value
Due in one year or less	$	10,605	10,620
Due after one year through five years	89,791		90,661
Due after five years through ten years	263,184		267,797
Due after ten years	108,289		110,576
	$	471,869	479,654

Mortgage-backed securities totaling $170,000 at amortized cost and $173,000 at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

The following tables present the fair value and gross unrealized losses for held to maturity debt securities with temporary impairment at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Agency obligations	$	3,652	(56)	—	—	3,652	(56)
State and municipal obligations	4,357		(31)	54,654	(926)	59,011	(957)
Corporate obligations	8,131		(72)	—	—	8,131	(72)
	$	16,140	(159)	54,654	(926)	70,794	(1,085)

	December 31, 2018 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Agency obligations	$	—	—	4,525	(94)	4,525	(94)
State and municipal obligations	96,412		(918)	81,663	(2,849)	178,075	(3,767)
Corporate obligations	—		—	9,004	(158)	9,004	(158)
	$	96,412	(918)	95,192	(3,101)	191,604	(4,019)

Based on its detailed review of the held to maturity debt securities portfolio, the Company believes that as of March 31, 2019, securities with unrealized loss positions shown above do not represent impairments that are other-than-temporary. The Company does not have the intent to sell securities in a temporary loss position at March 31, 2019, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

The number of held to maturity debt securities in an unrealized loss position at March 31, 2019 totaled 130, compared with 334 at December 31, 2018. The decrease in the number of securities in an unrealized loss position at March 31, 2019, was due to lower current market interest rates compared to rates at December 31, 2018. All temporarily impaired investment securities were investment grade at March 31, 2019.

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Note 3. Loans Receivable and Allowance for Loan Losses

Loans receivable at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019		December 31, 2018
Mortgage loans:
Residential	$	1,087,184	1,099,464
Commercial	2,288,342		2,299,313
Multi-family	1,357,038		1,339,677
Construction	374,900		388,999
Total mortgage loans	5,107,464		5,127,453
Commercial loans	1,698,146		1,695,021
Consumer loans	421,370		431,428
Total gross loans	7,226,980		7,253,902
Purchased credit-impaired ("PCI") loans	877		899
Premiums on purchased loans	3,106		3,243
Unearned discounts	(33)		(33)
Net deferred fees	(7,086)		(7,423)
Total loans	$	7,223,844	7,250,588

The following tables summarize the aging of loans receivable by portfolio segment and class of loans, excluding PCI loans (in thousands):

	March 31, 2019
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	6,132	3,541	6,809	—	16,482	1,070,702	1,087,184
Commercial	1,293		325	1,516	—	3,134	2,285,208	2,288,342
Multi-family	—		—	—	—	—	1,357,038	1,357,038
Construction	—		—	—	—	—	374,900	374,900
Total mortgage loans	7,425		3,866	8,325	—	19,616	5,087,848	5,107,464
Commercial loans	20,350		9	14,785	—	35,144	1,663,002	1,698,146
Consumer loans	1,458		88	1,687	—	3,233	418,137	421,370
Total gross loans	$	29,233	3,963	24,797	—	57,993	7,168,987	7,226,980

	December 31, 2018
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	4,188	5,557	5,853	—	15,598	1,083,866	1,099,464
Commercial	—		—	3,180	—	3,180	2,296,133	2,299,313
Multi-family	—		—	—	—	—	1,339,677	1,339,677
Construction	—		—	—	—	—	388,999	388,999
Total mortgage loans	4,188		5,557	9,033	—	18,778	5,108,675	5,127,453
Commercial loans	425		13,565	15,391	—	29,381	1,665,640	1,695,021
Consumer loans	1,238		610	1,266	—	3,114	428,314	431,428
Total gross loans	$	5,851	19,732	25,690	—	51,273	7,202,629	7,253,902

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The principal amounts of these non-accrual loans were $24.8 million and $25.7 million at March 31, 2019 and December 31, 2018, respectively. Included in non-accrual loans were $10.6 million and $11.1 million of

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loans which were less than 90 days past due at March 31, 2019 and December 31, 2018, respectively. There were no loans 90 days or greater past due and still accruing interest at March 31, 2019 or December 31, 2018.

The Company defines an impaired loan as a non-homogeneous loan greater than $1.0 million for which it is probable, based on current information, all amounts due under the contractual terms of the loan agreement will not be collected. Impaired loans also include all loans modified as troubled debt restructurings (“TDRs”). A loan is deemed to be a TDR when a loan modification resulting in a concession is made in an effort to mitigate potential loss arising from a borrower’s financial difficulty. Smaller balance homogeneous loans, including residential mortgages and other consumer loans, are evaluated collectively for impairment and are excluded from the definition of impaired loans, unless modified as TDRs. The Company separately calculates the reserve for loan losses on impaired loans. The Company may recognize impairment of a loan based upon: (1) the present value of expected cash flows discounted at the effective interest rate; (2) if a loan is collateral dependent, the fair value of collateral; or (3) the fair value of the loan. Additionally, if impaired loans have risk characteristics in common, those loans may be aggregated and historical statistics may be used as a means of measuring those impaired loans.

The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral dependent impaired loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral dependent impaired loan and is generally updated annually or more frequently, if required.

A specific allocation of the allowance for loan losses is established for each collateral dependent impaired loan with a carrying balance greater than the collateral’s fair value, less estimated costs to sell. Charge-offs are generally taken for the amount of the specific allocation when operations associated with the respective property cease and it is determined that collection of amounts due will be derived primarily from the disposition of the collateral. At each quarter end, if a loan is designated as a collateral dependent impaired loan and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value. The Company believes there have been no significant time lapses in the recognition of changes in collateral values as a result of this process.

At March 31, 2019, there were 155 impaired loans totaling $63.4 million. Included in this total were 133 TDRs related to 127 borrowers totaling $50.3 million that were performing in accordance with their restructured terms and which continued to accrue interest at March 31, 2019. At December 31, 2018, there were 152 impaired loans totaling $50.7 million. Included in this total were 129 TDRs to 124 borrowers totaling $35.6 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2018.

The following table summarizes loans receivable by portfolio segment and impairment method, excluding PCI loans (in thousands):

	March 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	36,651	24,544	2,213	63,408
Collectively evaluated for impairment	5,070,813		1,673,602	419,157	7,163,572
Total gross loans	$	5,107,464	1,698,146	421,370	7,226,980

	December 31, 2018
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	24,680	23,747	2,257	50,684
Collectively evaluated for impairment	5,102,773		1,671,274	429,171	7,203,218
Total gross loans	$	5,127,453	1,695,021	431,428	7,253,902

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The allowance for loan losses is summarized by portfolio segment and impairment classification as follows (in thousands):

	March 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	897	806	46	1,749
Collectively evaluated for impairment	26,029		25,545	2,030	53,604
Total gross loans	$	26,926	26,351	2,076	55,353

	December 31, 2018
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	1,026	92	47	1,165
Collectively evaluated for impairment	26,652		25,601	2,144	54,397
Total gross loans	$	27,678	25,693	2,191	55,562

Loan modifications to borrowers experiencing financial difficulties that are considered TDRs primarily involve lowering the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. These modifications generally do not result in the forgiveness of principal or accrued interest. In addition, the Company attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.

The following tables present the number of loans modified as TDRs during the three months ended March 31, 2019 and 2018, along with their balances immediately prior to the modification date and post-modification as of March 31, 2019 and 2018.

	For the three months ended
	March 31, 2019					March 31, 2018
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded  Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded  Investment	Post-Modification Outstanding Recorded  Investment
	($ in thousands)
Mortgage loans:
Commercial	1	$	14,010	$	14,010	—	—	—
Total mortgage loans	1	14,010		14,010		—	—	—
Commercial loans	4	2,013		2,013		5	8,127	$	6,626
Total restructured loans	5	$	16,023	$	16,023	5	8,127	$	6,626

All TDRs are impaired loans, which are individually evaluated for impairment, as previously discussed. During the three months ended March 31, 2019, there were no charge-offs recorded on collateral dependent impaired loans.  For the three months ended March 31, 2019, the allowance for loan losses associated with the TDRs presented in the preceding tables totaled $164,000, and was included in the allowance for loan losses for loans individually evaluated for impairment.

For the three months ended March 31, 2019, the TDRs presented in the preceding tables had a weighted average modified interest rate of approximately 3.96%, compared to a weighted average rate of 3.96%  prior to modification, respectively.

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The following table presents loans modified as TDRs within the previous 12 months from March 31, 2019 and 2018, and for which there was a payment default (90 days or more past due) at the quarter ended March 31, 2019 and 2018.

	March 31, 2019			March 31, 2018
Troubled Debt Restructurings Subsequently Defaulted	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded  Investment
	($ in thousands)
Commercial loans	3	$	540	3	$	428
Total restructured loans	3	$	540	3	$	428

There were three loans to one borrower which had a payment default (90 days or more past due) for loans modified as TDRs within the 12 month period ending March 31, 2019. There were also three payment defaults (90 days or more past due) for loans modified as TDRs within the 12 month period ending March 31, 2018. TDRs that subsequently default are considered collateral dependent impaired loans and are evaluated for impairment based on the estimated fair value of the underlying collateral less expected selling costs.

PCI loans are loans acquired at a discount primarily due to deteriorated credit quality. These loans are accounted for at fair value, based upon the present value of expected future cash flows, with no related allowance for loan losses. PCI loans totaled $877,000 at March 31, 2019 and $899,000 at December 31, 2018. The decrease from December 31, 2018 was largely due to the full repayment and greater than projected cash flows on certain PCI loans.

The activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

Three months ended March 31,	Mortgage loans		Commercial loans	Consumer loans	Total
2019
Balance at beginning of period	$	27,678	25,693	2,191	55,562
Provision (credited) charged to operations	(982)		1,282	(100)	200
Recoveries of loans previously charged-off	230		52	130	412
Loans charged-off	—		(676)	(145)	(821)
Balance at end of period	$	26,926	26,351	2,076	55,353
2018
Balance at beginning of period	$	28,052	29,814	2,329	60,195
Provision (credited) charged to operations	(22)		5,390	32	5,400
Recoveries of loans previously charged-off	88		127	180	395
Loans charged-off	(117)		(3,005)	(347)	(3,469)
Balance at end of period	$	28,001	32,326	2,194	62,521

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The following table presents loans individually evaluated for impairment by class and loan category, excluding PCI loans (in thousands):

	March 31, 2019						December 31, 2018
	Unpaid Principal Balance		Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized	Unpaid Principal Balance	Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized
Loans with no related allowance
Mortgage loans:
Residential	$	16,094	13,010	—	13,055	170	15,013	12,005	—	12,141	594
Commercial	14,010		14,010	—	14,010	—	1,550	1,546	—	1,546	—
Total	30,104		27,020	—	27,065	170	16,563	13,551	—	13,687	594
Commercial loans	12,690		9,054	—	9,330	115	21,746	16,254	—	17,083	328
Consumer loans	1,840		1,281	—	1,297	20	1,871	1,313	—	1,386	90
Total impaired loans	$	44,634	37,355	—	37,692	305	40,180	31,118	—	32,156	1,012
Loans with an allowance recorded
Mortgage loans:
Residential	$	9,018	8,598	828	8,621	89	10,573	10,090	954	10,186	425
Commercial	1,033		1,033	69	1,037	13	1,039	1,039	72	1,052	53
Total	10,051		9,631	897	9,658	102	11,612	11,129	1,026	11,238	478
Commercial loans	17,539		15,490	806	16,550	255	7,493	7,493	92	9,512	435
Consumer loans	943		932	46	938	13	954	944	47	962	40
Total impaired loans	$	28,533	26,053	1,749	27,146	370	20,059	19,566	1,165	21,712	953
Total impaired loans
Mortgage loans:
Residential	$	25,112	21,608	828	21,676	259	25,586	22,095	954	22,327	1,019
Commercial	15,043		15,043	69	15,047	13	2,589	2,585	72	2,598	53
Total	40,155		36,651	897	36,723	272	28,175	24,680	1,026	24,925	1,072
Commercial loans	30,229		24,544	806	25,880	370	29,239	23,747	92	26,595	763
Consumer loans	2,783		2,213	46	2,235	33	2,825	2,257	47	2,348	130
Total impaired loans	$	73,167	63,408	1,749	64,838	675	60,239	50,684	1,165	53,868	1,965

Specific allocations of the allowance for loan losses attributable to impaired loans totaled $1.7 million at March 31, 2019 and $1.2 million at December 31, 2018. At March 31, 2019 and December 31, 2018, impaired loans for which there was no related allowance for loan losses totaled $37.4 million and $31.1 million, respectively. The average balance of impaired loans for the three months ended March 31, 2019 and December 31, 2018 was $64.8 million and $53.9 million, respectively.

The Company utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department. The risk ratings are also confirmed through periodic loan review examinations, which are currently performed by an independent third-party. Reports by the independent third-party are presented directly to the Audit Committee of the Board of Directors.

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Loans receivable by credit quality risk rating indicator, excluding PCI loans, are as follows (in thousands):

	At March 31, 2019
	Residential		Commercialmortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	3,059	25,518	—	—	28,577	54,481	88	83,146
Substandard	8,651		15,571	—	6,181	30,403	68,136	2,078	100,617
Doubtful	—		—	—	—	—	202	—	202
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	11,710		41,089	—	6,181	58,980	122,819	2,166	183,965
Pass/Watch	1,075,474		2,247,253	1,357,038	368,719	5,048,484	1,575,327	419,204	7,043,015
Total	$	1,087,184	2,288,342	1,357,038	374,900	5,107,464	1,698,146	421,370	7,226,980
	At December 31, 2018
	Residential		Commercialmortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	5,071	14,496	228	—	19,795	67,396	610	87,801
Substandard	7,878		13,292	—	6,181	27,351	45,180	1,711	74,242
Doubtful	—		—	—	—	—	923	—	923
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	12,949		27,788	228	6,181	47,146	113,499	2,321	162,966
Pass/Watch	1,086,515		2,271,525	1,339,449	382,818	5,080,307	1,581,522	429,107	7,090,936
Total	$	1,099,464	2,299,313	1,339,677	388,999	5,127,453	1,695,021	431,428	7,253,902

Note 4. Deposits

Deposits at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019		December 31, 2018
Savings	$	1,051,904	1,051,922
Money market	1,592,468		1,496,310
NOW	2,019,822		2,049,645
Non-interest bearing	1,434,660		1,481,753
Certificates of deposit	804,602		750,492
Total deposits	$	6,903,456	6,830,122

Note 5. Components of Net Periodic Benefit Cost

The Bank has a noncontributory defined benefit pension plan covering its full-time employees who had attained age 21 with at least one year of service as of April 1, 2003. The pension plan was frozen on April 1, 2003. All participants in the Plan are 100% vested. The pension plan’s assets are invested in investment funds and group annuity contracts currently managed by the Principal Financial Group and Allmerica Financial.

In addition to pension benefits, certain health care and life insurance benefits are currently made available to certain of the Bank’s retired employees. The costs of such benefits are accrued based on actuarial assumptions from the date of hire to the date the employee is fully eligible to receive the benefits. Effective January 1, 2003, eligibility for retiree health care benefits

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was frozen as to new entrants, and benefits were eliminated for employees with less than ten years of service as of December 31, 2002. Effective January 1, 2007, eligibility for retiree life insurance benefits was frozen as to new entrants and retiree life insurance benefits were eliminated for employees with less than ten years of service as of December 31, 2006.

Net periodic (increase) benefit cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2019 and 2018 includes the following components (in thousands):

	Three months ended March 31,
	Pension benefits			Other post-retirement benefits
	2019		2018	2019	2018
Service cost	$	—	—	20	29
Interest cost	300		274	210	197
Expected return on plan assets	(641)		(693)	—	—
Amortization of prior service cost	—		—	—	—
Amortization of the net loss (gain)	254		199	(207)	(99)
Net periodic (increase) benefit cost	$	(87)	(220)	23	127

In its consolidated financial statements for the year ended December 31, 2018, the Company previously disclosed that it does not expect to contribute to the pension plan in 2019. As of March 31, 2019, no contributions have been made to the pension plan.

The net periodic (increase) benefit cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2019 was calculated using the actual January 1, 2019 pension and other post-retirement benefits valuations.

Note 6. Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2019 

In October 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815) – Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” This ASU permits the use of the OIS rate based upon SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the UST, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the SIFMA Municipal Swap Rate. The amendments in ASU 2018-16 are required to be adopted concurrently with ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging," which is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. ASU 2018-16 should be adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The Company adopted this guidance effective January 1, 2019.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging." The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for premiums on callable debt securities by requiring that premiums be amortized to the first (or earliest) call date instead of as an adjustment to the yield over the contractual life. This change more closely aligns the accounting with the economics of a callable debt security and the amortization period with expectations that already are included in market pricing on callable debt securities. This ASU does not change the accounting for discounts on callable debt securities, which will continue to be amortized to the maturity date. This guidance only includes instruments that are held at a premium and have explicit call features. It does not include instruments that contain prepayment features, such as mortgage backed securities; nor does it include call options that are contingent upon future events or in which the timing or amount to be paid is not fixed.  This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within the reporting period, with early adoption permitted.

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Transition is on a modified retrospective basis with an adjustment to retained earnings as of the beginning of the period of adoption. If early adopted in an interim period, adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company adopted this guidance effective January 1, 2019.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU No. 2018-11, “Leases - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02. In the first quarter of 2018, the Company formed a working group to guide the implementation efforts, including the identification and review of all lease agreements within the scope of the guidance. The working group has identified the inventory of leases and actively accumulated the requisite lease data necessary to apply the guidance. Also, the working group purchased and implemented a software platform to properly record and track all leases, monitor right-of-use assets and lease liabilities and support all accounting and disclosure requirements of the guidance. The Company adopted both ASU No. 2016-02 and ASU No. 2018-11 effective January 1, 2019 and elected to apply the guidance as of the beginning of the period of adoption (January 1, 2019) and not restate comparative periods.  The Company also elected certain optional practical expedients, which allow the Company to forego a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The adoption of the new standard resulted in the Company recording a right-of-use and an additional lease liability on its consolidated statement of financial condition of $44.9 million and $46.1 million, respectively, based on the present value of the expected remaining lease payments at January 1, 2019.  It also resulted in additional footnote disclosures (see Note 11 - "Leases").

Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. The Company does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments by a reporting entity at each reporting date. The amendments in this ASU require financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses would represent a valuation account that would be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement would reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses would be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will be required to use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The amendments in ASU 2016-13 are effective for fiscal years, including interim periods, beginning after December 15, 2019. Early adoption of this ASU is permitted for fiscal years beginning after December 15, 2018. The Company continues to evaluate the potential impact of ASU 2016-13 on the consolidated financial statements. In that regard, the Company formed, in the first quarter of 2017, a cross-functional working group, under the direction of the Chief Credit Officer, Chief Financial Officer and Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others. The Company developed a detailed implementation plan to include an assessment of processes, portfolio segmentation, model development, model validation, system requirements, the identification of data and resource needs and the development of a governance and control structure, among other things. The Company selected a system

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platform and has engaged with third-party vendors to assist with model development, data governance and financial and operational controls to support the adoption of this ASU. The adoption of the ASU 2016-13 may result in an increase in the allowance for loan losses as a result of changing from an "incurred loss" model, which encompasses allowances for current known and inherent losses within the portfolio, to an "expected loss" model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate establishing an allowance for expected credit losses on held to maturity debt securities. The Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13. It is expected that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date.

Note 7. Fair Value Measurements

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, the Company utilizes various valuation techniques to estimate fair value.

Fair value is an estimate of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. However, in many instances fair value estimates may not be substantiated by comparison to independent markets and may not be realized in an immediate sale of the financial instrument.

GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are as follows:

Level 1:	Unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2:	Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3:	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The valuation techniques are based upon the unpaid principal balance only, and exclude any accrued interest or dividends at the measurement date. Interest income and expense and dividend income are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The valuation techniques described below were used to measure fair value of financial instruments in the table below on a recurring basis as of March 31, 2019 and December 31, 2018.

Available for Sale Debt Securities, at Fair Value

For available for sale debt securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has generally not resulted in an adjustment in the prices obtained from the pricing service.

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Equity Securities, at Fair Value

The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs.

Derivatives

The Company records all derivatives on the statements of financial condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company has interest rate derivatives resulting from a service provided to certain qualified borrowers in a loan related transaction and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. As such, all changes in fair value of the Company’s interest rate derivatives not used to manage interest rate risk are recognized directly in earnings.

The Company also uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges, and which satisfy hedge accounting requirements, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. These derivatives were used to hedge the variable cash outflows associated with Federal Home Loan Bank borrowings.

The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.

Assets Measured at Fair Value on a Non-Recurring Basis

The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis as of March 31, 2019 and December 31, 2018.

Collateral Dependent Impaired Loans

For loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 5% and 10%. The Company classifies these loans as Level 3 within the fair value hierarchy.

Foreclosed Assets

Assets acquired through foreclosure or deed in lieu of foreclosure are carried at fair value, less estimated selling costs, which range between 5% and 10%. Fair value is generally based on independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case basis, to comparable assets based on the appraisers’ market knowledge and experience, and are classified as Level 3. When an asset is acquired, the excess of the loan balance over fair value less estimated selling costs is charged to the allowance for loan losses. A reserve for foreclosed assets may be established to provide for possible write-downs and selling costs that occur subsequent to foreclosure. Foreclosed assets are carried net of the related reserve. Operating results from real estate owned, including rental income, operating expenses, and gains and losses realized from the sales of real estate owned, are recorded as incurred.

There were no changes to the valuation techniques for fair value measurements as of March 31, 2019 and December 31, 2018.

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The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of March 31, 2019 and December 31, 2018, by level within the fair value hierarchy:

	Fair Value Measurements at Reporting Date Using:
(In thousands)	March 31, 2019		Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Available for sale debt securities:
Mortgage-backed securities	$	1,054,482	—	1,054,482	—
State and municipal obligations	4,088		—	4,088	—
Corporate obligations	25,031		—	25,031	—
Total available for sale debt securities	$	1,083,601	—	1,083,601	—
Equity securities	724		724	—	—
Derivative assets	17,718		—	17,718	—
	$	1,102,043	724	1,101,319	—
Derivative liabilities	$	17,959	—	17,959	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	9,868	—	—	9,868
Foreclosed assets	1,264		—	—	1,264
	$	11,132	—	—	11,132

	Fair Value Measurements at Reporting Date Using:
(In thousands)	December 31, 2018		Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Available for sale debt securities:
Mortgage-backed securities	$	1,034,969	—	1,034,969	—
State and municipal obligations	2,912		—	2,912	—
Corporate obligations	25,198		—	25,198	—
Total available for sale debt securities	$	1,063,079	—	1,063,079	—
Equity Securities	635		635	—	—
Derivative assets	15,634		—	15,634	—
	$	1,079,348	635	1,078,713	—
Derivative liabilities	$	14,766	—	14,766	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	4,285	—	—	4,285
Foreclosed assets	1,565		—	—	1,565
	$	5,850	—	—	5,850

There were no transfers between Level 1, Level 2 and Level 3 during the three months ended March 31, 2019.

Other Fair Value Disclosures

The Company is required to disclose estimated fair value of financial instruments, both assets and liabilities on and off the balance sheet, for which it is practicable to estimate fair value. The following is a description of valuation methodologies used for those assets and liabilities.

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Cash and Cash Equivalents

For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value. Included in cash and cash equivalents at March 31, 2019 and December 31, 2018 was $36.4 million and $35.0 million, respectively, representing reserves required by banking regulations.

Held to Maturity Debt Securities

For held to maturity debt securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to benchmark or comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has generally not resulted in adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government and U.S. government agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 within the fair value hierarchy.

Federal Home Loan Bank of New York ("FHLBNY") Stock

The carrying value of FHLBNY stock is its cost. The fair value of FHLBNY stock is based on redemption at par value. The Company classifies the estimated fair value as Level 1 within the fair value hierarchy.

Loans

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and into performing and non-performing categories. The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date (i.e. exit pricing). The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3.

The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3.

Deposits

The fair value of deposits with no stated maturity, such as non-interest bearing demand deposits and savings deposits, was equal to the amount payable on demand and classified as Level 1. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2.

Borrowed Funds

The fair value of borrowed funds was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

Commitments to Extend Credit and Letters of Credit

The fair value of commitments to extend credit and letters of credit was estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the

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counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value estimates of commitments to extend credit and letters of credit are deemed immaterial.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments.

Significant assets and liabilities that are not considered financial assets or liabilities include goodwill and other intangibles, deferred tax assets and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

The following tables present the Company’s financial instruments at their carrying and fair values as of March 31, 2019 and December 31, 2018. Fair values are presented by level within the fair value hierarchy.

			Fair Value Measurements at March 31, 2019 Using:
(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	141,658	141,658	141,658	—	—
Available for sale debt securities:
Mortgage-backed securities	1,054,482		1,054,482	—	1,054,482	—
State and municipal obligations	4,088		4,088	—	4,088	—
Corporate obligations	25,031		25,031	—	25,031	—
Total available for sale debt securities	$	1,083,601	1,083,601	—	1,083,601	—
Held to maturity debt securities:
Agency obligations	4,620		4,570	4,570	—	—
Mortgage-backed securities	170		173	—	173	—
State and municipal obligations	456,554		464,447	—	464,447	—
Corporate obligations	10,695		10,637	—	10,637	—
Total held to maturity debt securities	$	472,039	479,827	4,570	475,257	—
FHLBNY stock	68,634		68,634	68,634	—	—
Equity Securities	724		724	724	—	—
Loans, net of allowance for loan losses	7,168,491		7,122,478	—	—	7,122,478
Derivative assets	17,718		17,718	—	17,718	—
Financial liabilities:
Deposits other than certificates of deposits	$	6,098,854	6,098,854	6,098,854	—	—
Certificates of deposit	804,602		801,845	—	801,845	—
Total deposits	$	6,903,456	6,900,699	6,098,854	801,845	—
Borrowings	1,398,490		1,393,046	—	1,393,046	—
Derivative liabilities	17,959		17,959	—	17,959	—

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			Fair Value Measurements at December 31, 2018 Using:
(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	142,661	142,661	142,661	—	—
Available for sale debt securities:
Agency obligations	—		—	—	—	—
Mortgage-backed securities	1,034,969		1,034,969	—	1,034,969	—
State and municipal obligations	2,912		2,912	—	2,912	—
Corporate obligations	25,198		25,198	—	25,198	—
Total available for sale debt securities	$	1,063,079	1,063,079	—	1,063,079	—
Held to maturity debt securities:
Agency obligations	$	4,989	4,896	4,896	—	—
Mortgage-backed securities	187		190	—	190	—
State and municipal obligations	463,801		464,363	—	464,363	—
Corporate obligations	10,448		10,291	—	10,291	—
Total held to maturity debt securities	$	479,425	479,740	4,896	474,844	—
FHLBNY stock	68,813		68,813	68,813	—	—
Equity Securities	635		635	635	—	—
Loans, net of allowance for loan losses	7,195,026		7,104,380	—	—	7,104,380
Derivative assets	15,634		15,634	—	15,634	—
Financial liabilities:
Deposits other than certificates of deposits	$	6,079,630	6,079,630	6,079,630	—	—
Certificates of deposit	750,492		746,753	—	746,753	—
Total deposits	$	6,830,122	6,826,383	6,079,630	746,753	—
Borrowings	1,442,282		1,431,001	—	1,431,001	—
Derivative liabilities	14,766		14,766	—	14,766	—

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Note 8. Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive income (loss), both gross and net of tax, for the three months ended March 31, 2019 and 2018 (in thousands):

	Three months ended March 31,
	2019				2018
	Before Tax		Tax Effect	After Tax	Before Tax	Tax Effect	After Tax
Components of Other Comprehensive Income (Loss):
Unrealized gains and losses on available for sale debt securities:
Net unrealized gains (losses) arising during the period	$	10,417	(2,839)	7,578	(13,093)	3,454	(9,639)
Reclassification adjustment for gains included in net income	—		—	—	—	—	—
Total	10,417		(2,839)	7,578	(13,093)	3,454	(9,639)
Unrealized (losses) gains on Derivatives (cash flow hedges)	(432)		118	(314)	720	(190)	530
Amortization related to post-retirement obligations	(16)		4	(12)	84	(22)	62
Total other comprehensive income (loss)	$	9,969	(2,717)	7,252	(12,289)	3,242	(9,047)

The following tables present the changes in the components of accumulated other comprehensive (loss) income, net of tax, for three months ended March 31, 2019 and 2018 (in thousands):

	Changes in Accumulated Other Comprehensive (Loss) Income Component, net of tax for the three months ended March 31,
	2019					2018
	Unrealized (Losses) Gains on Available for Sale Debt Securities		Post- Retirement Obligations	Unrealized gains (losses) on Derivatives (cash flow hedges)	Accumulated Other Comprehensive (Loss) Income	Unrealized Losses on Available for Sale Debt Securities		Post-  Retirement Obligations	Unrealized Gains on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Loss
Balance at December 31,	$	(9,605)	(3,625)	894	(12,336)	(3,292)		(4,846)	673	(7,465)
Current period other comprehensive income (loss)	7,578		(12)	(314)	7,252	(9,639)		62	530	(9,047)
Reclassification of tax effects due to the adoption of ASU No. 2016-01	$	—	—	—	—	$	(184)	—	—	(184)
Balance at March 31,	$	(2,027)	(3,637)	580	(5,084)	(13,115)		(4,784)	1,203	(16,696)

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The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income for three months ended March 31, 2019 and 2018 (in thousands):

	Reclassifications From Accumulated Other Comprehensive Income ("AOCI")
	Amount reclassified from AOCI for the three months ended March 31,			Affected line item in the Consolidated Statement of Income
	2019		2018
Details of AOCI:
Post-retirement obligations:
Amortization of actuarial losses	$	47	100	Compensation and employee benefits (1)
	(13)		(26)	Income tax expense
Total reclassifications	$	34	74	Net of tax

⁽¹⁾ This item is included in the computation of net periodic benefit cost. See Note 5. Components of Net Periodic Benefit Cost.

Note 9. Derivative and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities.

Non-designated Hedges. Derivatives not designated in qualifying hedging relationships are not speculative and result from a service the Company provides to certain qualified commercial borrowers in loan related transactions and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company executes interest rate swaps with qualified commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. The interest rate swap agreement which the Company executes with the commercial borrower is collateralized by the borrower's commercial real estate financed by the Company. As the Company has not elected to apply hedge accounting and these interest rate swaps do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. At March 31, 2019 and December 31, 2018, the Company had 66 and 62 interest rate swaps with qualified commercial borrowers, respectively, with aggregate notional amounts of $1.02 billion and $1.01 billion, respectively.

The Company periodically enters into risk participation agreements ("RPAs") with the Company functioning as either the lead institution, or as a participant when another Company is the lead institution on a commercial loan. These RPA's are entered into to manage the credit exposure on interest rate contracts associated with these loan participation agreements. Under the RPA's, the Company will either receive or make a payment if a borrower defaults on the related interest rate contract.  At March 31, 2019 and December 31, 2018, the Company had twelve and seven credit contracts, respectively, with aggregate notional amounts of $87.6 million and $66.8 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements. At March 31, 2019 and December 31, 2018, the fair value of these credit contracts were $301,000 and $251,000, respectively.

Cash Flow Hedges of Interest Rate Risk. The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. 

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2019 and 2018, such derivatives were used to hedge the variable cash outflows associated with Federal Home Loan Bank borrowings.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s borrowings. During the next twelve months, the Company estimates that $520,000 will be reclassified as a decrease to interest expense. As of March 31, 2019, the Company had two outstanding

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interest rate derivatives with an aggregate notional amount of $60.0 million that was designated as a cash flow hedge of interest rate risk.

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition at March 31, 2019 and December 31, 2018 (in thousands):

	At March 31, 2019
	Asset Derivatives			Liability Derivatives
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	16,619	Other liabilities	17,959
Credit contracts	Other assets	301		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	16,920		17,959
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	798	Other liabilities	—
Total derivatives designated as a hedging instrument		$	798		—

	At December 31, 2018
	Asset Derivatives			Liability Derivatives
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	14,154	Other liabilities	14,766
Credit contracts	Other assets	251		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	14,405		14,766
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	1,229	Other liabilities	—
Total derivatives designated as a hedging instrument		$	1,229		—

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three months ended March 31, 2019 and 2018 (in thousands).

		Gain (loss) recognized in income on derivatives for the three months ended
	Consolidated Statements of Income	March 31, 2019		March 31, 2018
Derivatives not designated as a hedging instrument:
Interest rate products	Other income	$	(673)	302
Credit contracts	Other income	(4)		—
Total derivatives not designated as a hedging instrument		$	(677)	302
Derivatives designated as a hedging instrument:
Interest rate products	Interest expense	$	162	6
Total derivatives designated as a hedging instrument		$	162	6

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The Company has agreements with certain of its dealer counterparties that contain a provision that if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

In addition, the Company has agreements with certain of its dealer counterparties that contain a provision that if the Company fails to maintain its status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements.

At March 31, 2019, the Company had four dealer counterparties. The Company had a net liability position with respect to three of the counterparties. The termination value for this net liability position, which includes accrued interest, was $11.8 million at March 31, 2019. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $13.4 million against its obligations under these agreements. If the Company had breached any of these provisions at March 31, 2019, it could have been required to settle its obligations under the agreements at the termination value.

Note 10. Revenue Recognition

The Company generates revenue from several business channels. The guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) does not apply to revenue associated with financial instruments, including interest income on loans and investments, which comprise the majority of the Company's revenue. For the three months ended March 31, 2019 and 2018, the out-of-scope revenue related to financial instruments was 88% and 87% of the Company's total revenue, respectively.  Revenue-generating activities that are within the scope of Topic 606, are components of non-interest income. These revenue streams can generally be classified into wealth management revenue and banking service charges and other fees.

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2019 and 2018 (in thousands):

	Three months ended March 31,
	2019		2018
Non-interest income
In-scope of Topic 606:
Wealth management fees	$	4,079	4,400
Banking service charges and other fees:
Service charges on deposit accounts	3,191		3,315
Debit card and ATM fees	1,307		1,402
Total banking service charges and other fees	4,498		4,717
Total in-scope non-interest income	8,577		9,117
Total out-of-scope non-interest income	3,611		4,190
Total non-interest income	$	12,188	13,307

Wealth management fee income represents fees earned from customers as consideration for asset management, investment advisory and trust services. The Company’s performance obligation is generally satisfied monthly and the resulting fees are recognized monthly.  The fee is based upon the average market value of the assets under management for the month and the applicable fee rate. The monthly accrual of wealth management fees is recorded in other assets on the Company's Consolidated Statements of Financial Condition. Fees are received from the customer either on a quarterly or monthly basis. The Company does not earn performance-based incentives. To a lesser extent, optional services such as tax return preparation and estate settlement are also available to existing customers. The Company’s performance obligation for these transaction-based services are generally satisfied, and related revenue recognized, at either a point in time when the service is completed, or in the case of estate settlement, over a relatively short period of time, as each service component is completed.

Service charges on deposit accounts include overdraft service fees, account analysis fees and other deposit related fees. These fees are generally transaction-based, or time-based services. The Company's performance obligation for these services are generally satisfied, and revenue recognized, at the time the transaction is completed, or the service rendered. Fees for these services are generally received from the customer either at the time of transaction, or monthly. Debit card and ATM fees are generally transaction-based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non

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-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at time of transaction or monthly.

Out-of-scope non-interest income primarily consists of Bank-owned life insurance and net fees on loan level interest rate swaps, along with gains and losses on the sale of loans and foreclosed real estate, loan prepayment fees and loan servicing fees. None of these revenue streams are subject to the requirements of Topic 606.

Note 11. Leases

On January 1, 2019, the Company adopted ASU 2016-02, "Leases" (Topic 842) and all subsequent ASU's that modified Topic 842.  For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. The Company elected the modified retrospective transition option effective with the period of adoption, elected not to recast comparative periods presented when transitioning to the new leasing standard and adjustments, if required, are made at the beginning of the period through a cumulative-effect adjustment to opening retained earnings.  The Company also elected practical expedients, which allowed the Company to forego a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The adoption of the new standard resulted in the Company recording a right-of-use asset and an additional lease liability of $44.9 million and $46.1 million, respectively, based on the present value of the expected remaining lease payments at January 1, 2019.

Also, on January 1, 2019, the Company had $5.9 million of net deferred gains associated with several sale and leaseback transactions executed prior to the adoption of ASU 2016-02. In accordance with the guidance, these net deferred gains were adjusted, net of tax, as a cumulative-effect adjustment to opening retained earnings.

All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate property for branches and administrative offices with terms extending through 2040.

The following table represents the consolidated statements of condition classification of the Company’s right-of use-assets and lease liabilities at March 31, 2019 (in thousands):

	Classification	March 31, 2019
Lease Right-of-Use Assets:
Operating lease right-of-use assets	Other assets	$	43,404
Lease Liabilities:
Operating lease liabilities	Other liabilities	$	44,452

The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. Generally, the Company considers the first renewal option to be reasonably certain and includes it the calculation of the right-of use asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable.  As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception based upon the term of the lease. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was applied.

At March 31, 2019, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 9.9 years and 3.5%, respectively.

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The following table represents lease costs and other lease information for the Company's operating leases.  The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):

(in-thousands)	Three months ended March 31, 2019
Lease Costs
Operating lease cost	$	2,050
Variable lease cost	760
Total Lease Cost	$	2,810

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,044
Operating lease - operating cash flows - reduction of lease liability	1,598

During the three months ended March 31, 2019, the Company did not enter into any new lease obligations.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2019 were as follows:

(in-thousands)	Operating Leases
Twelve Months Ended:
March 31, 2020	$	7,875
March 31, 2021	7,302
March 31, 2022	5,055
March 31, 2023	4,738
Thereafter	28,440
Total Future Minimum Lease Payments	$	53,410
Amounts Representing Interest	8,958
Present Value of Net Future Minimum Lease Payments	$	44,452

At December 31, 2018, operating lease commitments under lessee arrangements were $8.0 million, $7.6 million, $5.4 million, $3.8 million and $3.4 million for 2019 through 2023, respectively, and $10.7 million in aggregate for all years thereafter.

Note 12. Subsequent Events

On April 1, 2019, Beacon Trust Company ("Beacon"), completed its acquisition of certain assets and liabilities of Tirschwell & Loewy, Inc., a New York City-based independent registered investment adviser. Beacon is a wholly owned subsidiary of Provident Bank which, in turn, is wholly owned by the Company. The Company is in the process of determining the acquisition date fair value of the total consideration transferred, including contingent consideration, goodwill and other identified intangible assets.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those

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set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not have any obligation to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Acquisition

On April 1, 2019, Beacon Trust Company ("Beacon"), completed its acquisition of certain assets and liabilities of Tirschwell & Loewy, Inc., a New York City-based independent registered investment adviser. Beacon is a wholly owned subsidiary of Provident Bank which, in turn, is wholly owned by the Company. The Company is in the process of determining the acquisition date fair value of the total consideration transferred, including contingent consideration, goodwill and other identified intangible assets.

Critical Accounting Policies

The Company considers certain accounting policies to be critically important to the fair presentation of its financial condition and results of operations. These policies require management to make complex judgments on matters which by their nature have elements of uncertainty. The sensitivity of the Company’s consolidated financial statements to these critical accounting policies, and the assumptions and estimates applied, could have a significant impact on its financial condition and results of operations. These assumptions, estimates and judgments made by management can be influenced by a number of factors, including the general economic environment. The Company has identified the following as critical accounting policies:

•Adequacy of the allowance for loan losses; and

•Valuation of deferred tax assets.

The calculation of the allowance for loan losses is a critical accounting policy of the Company. The allowance for loan losses is a valuation account that reflects management’s evaluation of the probable losses in the loan portfolio. The Company maintains the allowance for loan losses through provisions for loan losses that are charged to income. Charge-offs against the allowance for loan losses are taken on loans where management determines that the collection of loan principal is unlikely. Recoveries made on loans that have been charged-off are credited to the allowance for loan losses.

Management's evaluation of the adequacy of the allowance for loan losses includes a review of all loans on which the collectability of principal may not be reasonably assured. For residential mortgage and consumer loans, this is determined primarily by delinquency status. For commercial mortgage, multi-family, construction and commercial loans, an extensive review of financial performance, payment history and collateral values is conducted on a quarterly basis.

As part of its evaluation of the adequacy of the allowance for loan losses, each quarter management prepares an analysis that categorizes the entire loan portfolio by certain risk characteristics such as loan type (residential mortgage, commercial mortgage, construction, commercial, etc.) and loan risk rating.

When assigning a risk rating to a loan, management utilizes a nine point internal risk rating system. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, multi-family, construction and commercial loans are rated individually and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and the Credit Department. The risk ratings are also confirmed through periodic loan review examinations, which are currently performed by an independent third party, and periodically by the Credit Committee in the credit renewal or approval process. In addition, the Bank requires an annual review be performed for commercial and commercial real estate loans above certain dollar thresholds, depending on loan type, to help determine the appropriate risk rating.

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Management estimates the amount of loan losses for groups of loans by applying quantitative loss factors to loan segments at the risk rating level, and applying qualitative adjustments to each loan segment at the portfolio level. Quantitative loss factors give consideration to historical loss experience by loan type based upon an appropriate look-back period and adjusted for a loss emergence period. Quantitative loss factors are evaluated at least annually. Management completed its annual evaluation of the quantitative loss factors for the quarter ended September 30, 2018. Qualitative adjustments give consideration to other qualitative or environmental factors such as trends and levels of delinquencies, impaired loans, charge-offs, recoveries and loan volumes, as well as national and local economic trends and conditions. Qualitative adjustments reflect risks in the loan portfolio not captured by the quantitative loss factors and, as such, are evaluated from a risk level perspective relative to the risk levels present over the look-back period. Qualitative adjustments are recalibrated at least annually and evaluated at least quarterly. The reserves resulting from the application of both of these sets of loss factors are combined to arrive at the allowance for loan losses.

Management believes the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment or a protracted period of elevated unemployment, increasing vacancy rates in commercial investment properties and possible increases in interest rates in the absence of economic improvement. Any one or a combination of these events may adversely affect borrowers’ ability to repay the loans, resulting in increased delinquencies, loan losses and future levels of provisions. Accordingly, the Company has provided for loan losses at the current level to address the current risk in its loan portfolio. Management considers it important to maintain the ratio of the allowance for loan losses to total loans at an acceptable level given current economic conditions, interest rates and the composition of the portfolio.

Although management believes that the Company has established and maintained the allowance for loan losses at appropriate levels, additions may be necessary if future economic and other conditions differ substantially from the current operating environment. Management evaluates its estimates and assumptions on an ongoing basis giving consideration to historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. Illiquid credit markets, volatile securities markets, and declines in the housing and commercial real estate markets and the economy generally have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for loan losses as an integral part of their examination process. Such agencies may require the Company to recognize additions to the allowance or additional write-downs based on their judgments about information available to them at the time of their examination. Although management uses the best information available, the level of the allowance for loan losses remains an estimate that is subject to significant judgment and short-term change.

The determination of whether deferred tax assets will be realizable is predicated on the reversal of existing deferred tax liabilities and estimates of future taxable income. Such estimates are subject to management’s judgment. A valuation allowance is established when management is unable to conclude that it is more likely than not that it will realize deferred tax assets based on the nature and timing of these items. The Company did not require a valuation allowance at March 31, 2019 or December 31, 2018.

COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2019 AND DECEMBER 31, 2018 

Total assets at March 31, 2019 were $9.80 billion, a $76.8 million increase from December 31, 2018. The increase in total assets was primarily due to a $55.2 million increase in cash and cash equivalents, a $37.8 million increase in other assets and a $13.0 million increase in total investments, partially offset by a $26.7 million decrease in total loans. The increase in other assets was largely due to the Company's January 1, 2019 adoption of ASU 2016-02, "Leases (Topic 842).” The adoption of the new standard resulted in the Company recording a right-of-use asset of $44.9 million, which was based on the present value of the expected remaining lease payments at January 1, 2019. 

The Company’s loan portfolio decreased $26.7 million to $7.22 billion at March 31, 2019, from $7.25 billion at December 31, 2018. For the three months ended March 31, 2019, loan originations, excluding advances on lines of credit, totaled $293.9 million, compared with $280.3 million for the same period in 2018. During the three months ended March 31, 2019, the loan portfolio had net decreases of $14.1 million in construction loans, $12.3 million in residential mortgage loans, $11.0 million in commercial mortgage loans and $10.1 million in consumer loans, partially offset by net increases of $17.4 million in multi-family mortgage loans and $3.1 million in commercial loans. Commercial real estate, commercial and construction loans represented 79.1% of the loan portfolio at March 31, 2019, compared to 78.9% at December 31, 2018.

The Company participates in loans originated by other banks, including participations designated as Shared National Credits (“SNCs”). The Company’s gross commitments and outstanding balances as a participant in SNCs were $309.5 million and

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$161.4 million, respectively, at March 31, 2019, compared to $266.8 million and $146.0 million, respectively, at December 31, 2018. No SNCs were 90 days or more delinquent at March 31, 2019.

The Company had outstanding junior lien mortgages totaling $163.0 million at March 31, 2019. Of this total, 12 loans totaling $624,000 were 90 days or more delinquent. These loans were allocated total loss reserves of $112,000.

The following table sets forth information regarding the Company’s non-performing assets as of March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019		December 31, 2018
Mortgage loans:
Residential	$	6,809	5,853
Commercial	1,516		3,180
Total mortgage loans	8,325		9,033
Commercial loans	14,785		15,391
Consumer loans	1,687		1,266
Total non-performing loans	24,797		25,690
Foreclosed assets	1,264		1,565
Total non-performing assets	$	26,061	27,255

The following table sets forth information regarding the Company’s 60-89 day delinquent loans as of March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019		December 31, 2018
Mortgage loans:
Residential	$	3,541	5,557
Commercial	325		—
Total mortgage loans	3,866		5,557
Commercial loans	9		13,565
Consumer loans	88		610
Total 60-89 day delinquent loans	$	3,963	19,732

At March 31, 2019, the allowance for loan losses totaled $55.4 million, or 0.77% of total loans, compared to $55.6 million, or 0.77% of total loans at December 31, 2018. Total non-performing loans were $24.8 million, or 0.34% of total loans at March 31, 2019, compared to $25.7 million, or 0.35% of total loans at December 31, 2018. The $893,000 decrease in non-performing loans consisted of a $1.7 million decrease in non-performing commercial mortgage loans and a $606,000 decrease in non-performing commercial loans, partially offset by a $1.0 million increase in non-performing residential mortgage loans and a $421,000 increase in non-performing consumer loans. Non-performing loans do not include $877,000 of purchased credit impaired ("PCI") loans acquired from Team Capital Bank in 2014.

At March 31, 2019 and December 31, 2018, the Company held $1.3 million and $1.6 million of foreclosed assets, respectively. During the three months ended March 31, 2019, there was one addition to foreclosed assets with a carrying value of $227,000 and three properties sold with a carrying value of $528,000. Foreclosed assets at March 31, 2019 consisted of $1.3 million of residential real estate.

Non-performing assets totaled $26.1 million, or 0.27% of total assets at March 31, 2019, compared to $27.3 million, or 0.28% of total assets at December 31, 2018.

Total investments were $1.62 billion at March 31, 2019, a $13.0 million increase from December 31, 2018. This increase was largely due to purchases of mortgage-backed securities and an increase in unrealized gains on available for sale debt securities, partially offset by repayments of mortgage-backed securities and maturities and calls of certain municipal and agency bonds.

Total deposits increased $73.3 million during the three months ended March 31, 2019 to $6.90 billion, from $6.83 billion at December 31, 2018. Total time deposits increased $54.1 million to $804.6 million at March 31, 2019, while total core deposits, consisting of savings and demand deposit accounts, increased $19.2 million to $6.10 billion at March 31, 2019. The increase in time deposits was primarily the result of a $66.5 million increase in brokered deposits, partially offset by a $12.4 million decrease in retail time deposits, primarily due to maturities of the Company's 13-month promotional certificate of deposit. The increase in core deposits was largely attributable to a $96.2 million increase in money market deposits, partially offset by

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decreases of $47.1 million and $29.8 million in non-interest bearing demand deposits and interest bearing demand deposits, respectively. Core deposits represented 88.3% of total deposits at March 31, 2019, compared to 89.0% at December 31, 2018.

Borrowed funds decreased $43.8 million during the three months ended March 31, 2019, to $1.40 billion. The decrease in borrowings for the period was primarily a function of wholesale funding being partially replaced by the net inflows of deposits and lower asset funding requirements. Borrowed funds represented 14.3% of total assets at March 31, 2019, a decrease from 14.8% at December 31, 2018.

Stockholders’ equity increased $14.8 million during the three months ended March 31, 2019, to $1.37 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by dividends paid to stockholders and common stock repurchases. Common stock repurchases for the three months ended March 31, 2019 totaled 78,000 shares at an average cost of $26.85. These common stock repurchases were largely made in connection with withholding to cover income taxes on the vesting of stock-based compensation. At March 31, 2019, 2.4 million shares remained eligible for repurchase under the current stock repurchase authorization.

Book value per share and tangible book value per share at March 31, 2019 were $20.66 and $14.38, respectively, compared with $20.49 and $14.18, respectively, at December 31, 2018. Tangible book value per share is a non-GAAP financial measure.

The following table reconciles book value per share to tangible book value per share and the associated calculations (in thousands, except per share data):

	March 31, 2019		December 31, 2018
Total stockholders' equity	$	1,373,816	$	1,358,980
Less: Total intangible assets	417,688		418,178
Total tangible stockholders' equity	$	956,128	$	940,802
Shares outstanding	66,502,750		66,325,458
Book value per share (total stockholders' equity/shares outstanding)	$	20.66	$	20.49
Tangible book value per share (total tangible stockholders' equity/shares outstanding)	$	14.38	$	14.18

Liquidity and Capital Resources. Liquidity refers to the Company’s ability to generate adequate amounts of cash to meet financial obligations to its depositors, to fund loans and securities purchases, deposit outflows and operating expenses. Sources of funds include scheduled amortization of loans, loan prepayments, scheduled maturities of investments, cash flows from mortgage-backed securities and the ability to borrow funds from the FHLBNY and approved broker-dealers.

Cash flows from loan payments and maturing investment securities are fairly predictable sources of funds. Changes in interest rates, local economic conditions and the competitive marketplace can influence loan prepayments, prepayments on mortgage-backed securities and deposit flows.

The Federal Deposit Insurance Corporation and the other federal bank regulatory agencies issued a final rule that revised the leverage and risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act, that were effective January 1, 2015. Among other things, the rule established a new common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets), adopted a uniform minimum leverage capital ratio at 4%, increased the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets) and assigns a higher risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The rule also required unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital unless a one-time opt-out was exercised. The Company exercised the option to exclude unrealized gains and losses from the calculation of regulatory capital. Additional constraints were also imposed on the inclusion in regulatory capital of mortgage-servicing assets, deferred tax assets and minority interests. The rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer,” of 2.5% in addition to the amount necessary to meet its minimum risk-based capital requirements.

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As of March 31, 2019, the Bank and the Company exceeded all current minimum regulatory capital requirements as follows:

	March 31, 2019
	Required				Required with Capital Conservation Buffer				Actual
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Bank:(1)
Tier 1 leverage capital	$	372,121	4.00	%	$	372,121	4.00	%	$	926,727	9.96	%
Common equity Tier 1 risk-based capital	341,873		4.50		531,803		7.00		926,727		12.20
Tier 1 risk-based capital	455,831		6.00		645,761		8.50		926,727		12.20
Total risk-based capital	607,775		8.00		797,704		10.50		982,225		12.93
Company:
Tier 1 leverage capital	$	372,125	4.00	%	$	372,125	4.00	%	$	961,568	10.34	%
Common equity Tier 1 risk-based capital	341,878		4.50		531,811		7.00		961,568		12.66
Tier 1 risk-based capital	455,838		6.00		645,770		8.50		961,568		12.66
Total risk-based capital	607,784		8.00		797,716		10.50		1,017,066		13.39

(1) Under the FDIC's prompt corrective action provisions, the Bank is considered well capitalized if it has: a leverage (Tier 1) capital ratio of at least 5.00%; a common equity Tier 1 risk-based capital ratio of 6.50%; a Tier 1 risk-based capital ratio of at least 8.00%; and a total risk-based capital ratio of at least 10.00%.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 

General. The Company reported net income of $30.9 million, or $0.48 per basic and diluted share for the three months ended March 31, 2019, compared to net income of $27.9 million, or $0.43 per basic and diluted share for the three months ended March 31, 2018.

The Company's earnings for the three months ended March 31, 2019 were positively impacted by a lower provision for loan losses stemming from an improvement in asset quality and an increase in net interest income driven by the expansion of the net interest margin from the quarter ended March 31, 2018. The improvement in the net interest margin was due to an increase in the yield on earning assets and a lagging increase in the Company's cost of funds. The net inflow of average deposits in the period also contributed to the improvement in net interest income allowing the Company to favorably shift from higher-costing sources of funds. The improvement in net interest income for the period was partially offset by a decrease in average loans outstanding.

Net Interest Income. Total net interest income increased $1.7 million to $75.0 million for the quarter ended March 31, 2019, from $73.3 million for the quarter ended March 31, 2018. Interest income for the quarter ended March 31, 2019, increased $6.1 million to $92.4 million, from $86.3 million for the same period in 2018.  Interest expense increased $4.4 million to $17.4 million for the quarter ended March 31, 2019, from $13.1 million for the quarter ended March 31, 2018.

The net interest margin increased 10 basis points to 3.40% for the quarter ended March 31, 2019, compared to 3.30% for the quarter ended March 31, 2018. The weighted average yield on interest-earning assets increased 31 basis points to 4.20% for the quarter ended March 31, 2019, compared with 3.89% for the quarter ended March 31, 2018, while the weighted average cost of interest bearing liabilities increased 28 basis points to 1.04% for the quarter ended March 31, 2019, compared to the first quarter of 2018. The average cost of interest bearing deposits for the quarter ended March 31, 2019, was 0.78%, compared with 0.47% for the same period last year.  Average non-interest bearing demand deposits totaled $1.44 billion for the three months ended March 31, 2019, compared with $1.42 billion for the three months ended March 31, 2018. The average cost of borrowed funds for the quarter ended March 31, 2019, was 2.07%, compared to 1.70% for the same period last year.

Interest income on loans secured by real estate increased $3.5 million to $55.0 million for the three months ended March 31, 2019, from $51.5 million for the three months ended March 31, 2018. Commercial loan interest income increased $1.4 million to $20.5 million for the three months ended March 31, 2019, from $19.1 million for the three months ended March 31, 2018. For the three months ended March 31, 2019, the average balance of total loans decreased $110.0 million to $7.13 billion, from $7.24 billion for the same period in 2018. The average loan yield for the three months ended March 31, 2019, increased 33 basis points to 4.51%, from 4.18% for the same period in 2018.

38

Interest income on held to maturity debt securities increased $18,000 to $3.2 million for the quarter ended March 31, 2019, compared to the same period last year. Average held to maturity debt securities totaled $473.8 million for the quarter ended March 31, 2019, compared with $469.8 million for the same period last year.

Interest income on available for sale debt securities and FHLBNY stock increased $1.2 million to $8.4 million for the quarter ended March 31, 2019, from $7.3 million for the quarter ended March 31, 2018. The average balance of available for sale debt securities and FHLBNY stock increased $30.5 million to $1.14 billion for the three months ended March 31, 2019, compared to the same period in 2018.

The average yield on total securities increased to 2.87% for the three months ended March 31, 2019, compared with 2.62% for the same period in 2018.

Interest expense on deposit accounts increased $4.3 million to $10.5 million for the quarter ended March 31, 2019, compared with $6.2 million for the quarter ended March 31, 2018. The average cost of interest bearing deposits increased to 0.78% for the quarter ended March 31, 2019, from 0.47% for the same period in 2018. The average balance of interest bearing core deposits for the quarter ended March 31, 2019 decreased $46.5 million to $4.65 billion.  Average time deposit account balances increased $146.5 million, to $777.4 million for the quarter ended March 31, 2019, from $631.0 million for the quarter ended March 31, 2018.

Interest expense on borrowed funds increased $91,000 to $6.9 million for the quarter ended March 31, 2019, from $6.8 million for the quarter ended March 31, 2018.  The average cost of borrowings increased to 2.07% for the three months ended March 31, 2019, from 1.70% for the three months ended March 31, 2018. Average borrowings decreased $276.0 million to $1.35 billion for the quarter ended March 31, 2019, from $1.63 billion for the quarter ended March 31, 2018.

Provision for Loan Losses. Provisions for loan losses are charged to operations in order to maintain the allowance for loan losses at a level management considers necessary to absorb probable credit losses inherent in the loan portfolio. In determining the level of the allowance for loan losses, management considers past and current loss experience, evaluations of real estate collateral, current economic conditions, volume and type of lending, adverse situations that may affect a borrower’s ability to repay the loan and the levels of non-performing and other classified loans. The amount of the allowance is based on estimates, and the ultimate losses may vary from such estimates as more information becomes available or later events change. Management assesses the adequacy of the allowance for loan losses on a quarterly basis and makes provisions for loan losses, if necessary, in order to maintain the adequacy of the allowance.

The Company recorded a provision for loan losses of $200,000 for the three months ended March 31, 2019. This compared with a provision for loan losses of $5.4 million for the three months ended March 31, 2018. For the three months ended March 31, 2019, the Company had net charge-offs of $409,000, compared with net charge-offs of $3.1 million for the same periods in 2018. The provision for loan losses and net charge-offs for the first quarter of 2018 were impacted by a deterioration in commercial credits in the quarter, including a $15.4 million credit to a commercial borrower that filed a Chapter 7 petition in bankruptcy for a liquidation of assets. A specific reserve of $2.5 million was established in the prior year quarter for this impaired loan, and this credit was subsequently charged off in the second quarter of 2018. At March 31, 2019, the Company’s allowance for loan losses was $55.4 million, or 0.77% of total loans, compared with $55.6 million, or 0.77% of total loans at December 31, 2018.

Non-Interest Income. Non-interest income totaled $12.2 million for the quarter ended March 31, 2019, a decrease of $1.1 million, compared to the same period in 2018. Other income decreased $687,000 to $316,000 for the three months ended March 31, 2019, compared to the quarter ended March 31, 2018, primarily due to a $762,000 decrease in net fees on loan-level interest rate swap transactions and a $139,000 decrease in net gains on the sale of loans, partially offset by a $211,000 insurance recovery of ATM losses from the prior year. Fee income decreased $542,000 to $6.1 million for the three months ended March 31, 2019, compared to the same period in 2018, largely due to a $223,000 decrease in commercial loan prepayment fee income, a $104,000 decrease in loan related fee income and a $100,000 decrease in deposit related fee income. Also, wealth management income decreased $321,000, largely due to a change in the investment mix of assets under management. Partially offsetting these decreases in non-interest income, income from Bank-owned life insurance ("BOLI") increased $432,000 to $1.7 million for the three months ended March 31, 2019, compared to $1.3 million for the same period in 2018, primarily due to an increase in benefit claims in the current period.

Non-Interest Expense. For the three months ended March 31, 2019, non-interest expense totaled $48.4 million, an increase of $1.5 million, compared to the three months ended March 31, 2018. Other operating expenses increased $1.0 million to $7.1 million for the three months ended March 31, 2019, compared to the same period in 2018, primarily due to increases in consulting costs and attorney fees. Compensation and benefits expense increased $500,000 to $28.4 million for the three months ended March 31, 2019, compared to $27.9 million for the same period in 2018. This increase was principally due to increases in stock-based compensation and the accrual for incentive compensation. Data processing expense increased 

39

$363,000 to $4.0 million for the three months ended March 31, 2019, primarily due to an increase in software maintenance expense, along with increases in mobile and on-line banking expenses. Partially offsetting these increases in non-interest expense, FDIC insurance decreased $314,000 to $739,000 for the three months ended March 31, 2019, compared to the same period in 2018, primarily due to both a lower insurance assessment rate for the current quarter and a decrease in total average assets subject to assessment.

Income Tax Expense. For the three months ended March 31, 2019, the Company’s income tax expense was $7.7 million, compared with $6.4 million, for the three months ended March 31, 2018. The Company’s effective tax rates were 19.9% for the three months ended March 31, 2019, compared to 18.6% for the three months ended March 31, 2018.  The increase in tax expense and the effective tax rate were largely the result of an increase in income derived from taxable sources.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Qualitative Analysis. Interest rate risk is the exposure of a bank’s current and future earnings and capital arising from adverse movements in interest rates. The guidelines of the Company’s interest rate risk policy seek to limit the exposure to changes in interest rates that affect the underlying economic value of assets and liabilities, earnings and capital. To minimize interest rate risk, the Company generally sells all 20- and 30-year fixed-rate mortgage loans at origination. Commercial real estate loans generally have interest rates that reset in five years, and other commercial loans such as construction loans and commercial lines of credit reset with changes in the Prime rate, the Federal Funds rate or LIBOR. Investment securities purchases generally have maturities of five years or less, and mortgage-backed securities have weighted average lives between three and five years.

The Asset/Liability Committee meets on at least a monthly basis to review the impact of interest rate changes on net interest income, net interest margin, net income and the economic value of equity. The Asset/Liability Committee reviews a variety of strategies that project changes in asset or liability mix and the impact of those changes on projected net interest income and net income.

The Company’s strategy for liabilities has been to maintain a stable core-funding base by focusing on core deposit account acquisition and increasing products and services per household. The Company’s ability to retain maturing time deposit accounts is the result of its strategy to remain competitively priced within its marketplace. The Company’s pricing strategy may vary depending upon current funding needs and the ability of the Company to fund operations through alternative sources, primarily by accessing short-term lines of credit with the FHLBNY during periods of pricing dislocation.

Quantitative Analysis. Current and future sensitivity to changes in interest rates are measured through the use of balance sheet and income simulation models. The analysis captures changes in net interest income using flat rates as a base, a most likely rate forecast and rising and declining interest rate forecasts. Changes in net interest income and net income for the forecast period, generally twelve to twenty-four months, are measured and compared to policy limits for acceptable change. The Company periodically reviews historical deposit re-pricing activity and makes modifications to certain assumptions used in its income simulation model regarding the interest rate sensitivity of deposits without maturity dates. These modifications are made to more closely reflect the most likely results under the various interest rate change scenarios. Since it is inherently difficult to predict the sensitivity of interest bearing deposits to changes in interest rates, the changes in net interest income due to changes in interest rates cannot be precisely predicted. There are a variety of reasons that may cause actual results to vary considerably from the predictions presented below which include, but are not limited to, the timing, magnitude, and frequency of changes in interest rates, interest rate spreads, prepayments, and actions taken in response to such changes.

Specific assumptions used in the simulation model include:

•Parallel yield curve shifts for market rates;

•Current asset and liability spreads to market interest rates are fixed;

•Traditional savings and interest-bearing demand accounts move at 10% of the rate ramp in either direction;

•Retail Money Market and Business Money Market accounts move at 25% and 75% of the rate ramp in either direction respectively; and

•Higher-balance demand deposit tiers and promotional demand accounts move at 50% to 75% of the rate ramp in either direction

40

The following table sets forth the results of a twelve-month net interest income projection model as of March 31, 2019 (dollars in thousands):

Change in Interest Rates in Basis Points (Rate Ramp)	Net Interest Income
	Dollar Amount		Dollar Change		Percent Change
-100	$	301,798	$	1,525	0.5	%
Static	300,273		—		—	%
+100	297,007		(3,266)		(1.1)	%
+200	292,965		(7,308)		(2.4)	%
+300	288,551		(11,722)		(3.9)	%

The preceding table indicates that, as of March 31, 2019, in the event of a 300 basis point increase in interest rates, whereby rates ramp up evenly over a twelve-month period, net interest income would decrease 3.9%, or $11.7 million. In the event of a 100 basis point decrease in interest rates, net interest income would increase 0.5%, or $1.5 million over the same period.

Another measure of interest rate sensitivity is to model changes in economic value of equity through the use of immediate and sustained interest rate shocks. The following table illustrates the result of the economic value of equity model as of March 31, 2019 (dollars in thousands):

	Present Value of Equity						Present Value of Equity as Percent of Present Value of Assets
Change in Interest Rates (Basis Points)	Dollar Amount		Dollar Change		Percent Change		Present Value  Ratio		Percent Change
-100	$	1,493,280	$	2,950	0.2	%	15.0	%	(2.0)	%
Flat	1,490,330		—		—	%	15.3	%	—	%
+100	1,427,393		(62,937)		(4.2)	%	15.0	%	(1.9)	%
+200	1,363,908		(126,422)		(8.5)	%	14.7	%	(4.0)	%
+300	1,305,842		(184,488)		(12.4)	%	14.4	%	(5.9)	%

The preceding table indicates that as of March 31, 2019, in the event of an immediate and sustained 300 basis point increase in interest rates, the present value of equity is projected to decrease 12.4%, or $184.5 million. If rates were to decrease 100 basis points, the model forecasts a 0.2%, or $3.0 million increase in the present value of equity.

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes in net interest income requires the use of certain assumptions regarding prepayment and deposit decay rates, which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. While management believes such assumptions are reasonable, there can be no assurance that assumed prepayment rates and decay rates will approximate actual future loan prepayment and deposit withdrawal activity. Moreover, the net interest income table presented assumes that the composition of interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the net interest income table provides an indication of the Company’s interest rate risk exposure at a particular point in time, such measurement is not intended to and does not provide a precise forecast of the effect of changes in market interest rates on the Company’s net interest income and will differ from actual results.

41

Item 4. CONTROLS AND PROCEDURES.

Under the supervision and with the participation of management, including the Principal Executive Officer and the Principal Financial Officer, the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934) were evaluated at the end of the period covered by this report. Based upon that evaluation, the Principal Executive Officer and the Principal Financial Officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures are effective. There has been no change in the Company’s internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in various legal actions and claims arising in the normal course of business. In the opinion of management, these legal actions and claims are not expected to have a material adverse impact on the Company’s financial condition.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

ISSUER PURCHASES OF EQUITY SECURITIES

Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	(d) Maximum Number of Shares that May Yet Be Purchased under the Plans or Programs  (1)
January 1, 2019 through January 31, 2019	8,317	$	23.76	8,317	2,502,740
February 1, 2019 through February 28, 2019	10,496	27.70		10,496	2,492,244
March 1, 2019 through March 31, 2019	59,155	27.14		59,155	2,433,089
Total	77,968	26.86		77,968

⁽¹⁾ On December 20, 2012, the Company’s Board of Directors approved the purchase of up to 3,017,770 shares of its common stock under an eighth general repurchase program. The repurchase program has no expiration date.

Item 3. Defaults Upon Senior Securities.

Not Applicable 

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information.

None

42

Item 6. Exhibits.

The following exhibits are filed herewith:

3.1	Certificate of Incorporation of Provident Financial Services, Inc. (Filed as an exhibit to the Company’s Registration Statement on Form S-1, and any amendments thereto, with the Securities and Exchange Commission/Registration No. 333-98241.)
3.2	Amended and Restated Bylaws of Provident Financial Services, Inc. (Filed as an exhibit to the Company’s December 31, 2011 Annual Report to Stockholders on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012/File No. 001-31566.)
4.1	Form of Common Stock Certificate of Provident Financial Services, Inc. (Filed as an exhibit to the Company’s Registration Statement on Form S-1, and any amendments thereto, with the Securities and Exchange Commission/Registration No. 333-98241.)
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Company’s Quarterly Report to Stockholders on Form 10-Q for the quarter ended March 31, 2019, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholder’s Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements.

101.INS	XBRL Instance 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 Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

43

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		PROVIDENT FINANCIAL SERVICES, INC.
Date:	May 10, 2019	By:	/s/ Christopher Martin
			Christopher Martin
			Chairman, President and Chief Executive Officer (Principal Executive Officer)
Date:	May 10, 2019	By:	/s/ Thomas M. Lyons
			Thomas M. Lyons
			Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date:	May 10, 2019	By:	/s/ Frank S. Muzio
			Frank S. Muzio
			Executive Vice President and Chief Accounting Officer

44

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Christopher Martin, certify that:

1 I have reviewed this report on Form 10-Q of Provident Financial Services, Inc;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 10, 2019	/s/ Christopher Martin
		Christopher Martin
		Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Thomas M. Lyons, certify that:

1 I have reviewed this report on Form 10-Q of Provident Financial Services, Inc;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 10, 2019	/s/ Thomas M. Lyons
		Thomas M. Lyons
		Senior Executive Vice President and Chief Financial Officer

EX-32

Exhibit 32

Certification pursuant to

18 U.S.C. Section 1350,

as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Christopher Martin, Chairman, President and Chief Executive Officer, and Thomas M. Lyons, Executive Vice President and Chief Financial Officer of Provident Financial Services, Inc. (the “Company”), each certify in his capacity as an officer of the Company that he has reviewed the quarterly report of the Company on Form 10-Q for the quarter ended March 31, 2019 and that to the best of his knowledge:

(1) the report fully complies with the requirements of Sections 13(a) of the Securities Exchange Act of 1934; and

(2) the information contained in the report fairly presents, in all material respects, the financial condition and results of operations.

The purpose of this statement is solely to comply with Title 18, Chapter 63, Section 1350 of the United States Code, as amended by Section 906 of the Sarbanes-Oxley Act of 2002.

Date:	May 10, 2019	/s/ Christopher Martin
		Christopher Martin
		Chairman, President and Chief Executive Officer
Date:	May 10, 2019	/s/ Thomas M. Lyons
		Thomas M. Lyons
		Senior Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 01, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	PFS
Entity Registrant Name	PROVIDENT FINANCIAL SERVICES INC
Entity Central Index Key	0001178970
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		66,749,719

XML

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 141,658	$ 86,195
Short-term investments	56,196	56,466
Total cash and cash equivalents	197,854	142,661
Available for sale debt securities, at fair value	1,083,601	1,063,079
Held to maturity debt securities (fair value of $479,827 at March 31, 2019 (unaudited) and $479,740 at December 31, 2018)	472,039	479,425
Equity securities, at fair value	724	635
Federal Home Loan Bank stock	68,634	68,813
Loans	7,223,844	7,250,588
Less allowance for loan losses	55,353	55,562
Net loans	7,168,491	7,195,026
Foreclosed assets, net	1,264	1,565
Banking premises and equipment, net	56,733	58,124
Accrued interest receivable	31,180	31,475
Intangible assets	417,688	418,178
Bank-owned life insurance	192,894	193,085
Other assets	111,512	73,703
Total assets	9,802,614	9,725,769
Deposits:
Demand deposits	5,046,950	5,027,708
Savings deposits	1,051,904	1,051,922
Certificates of deposit of $100,000 or more	478,043	414,848
Other time deposits	326,559	335,644
Total deposits	6,903,456	6,830,122
Mortgage escrow deposits	27,363	25,568
Borrowed funds	1,398,490	1,442,282
Other liabilities	99,489	68,817
Total liabilities	8,428,798	8,366,789
Stockholders’ Equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued	0	0
Common stock, $0.01 par value, 200,000,000 shares authorized, 83,209,293 shares issued and 66,502,750 shares outstanding at March 31, 2019 and 66,325,458 outstanding at December 31, 2018	832	832
Additional paid-in capital	1,023,671	1,021,533
Retained earnings	657,375	651,099
Accumulated other comprehensive loss	(5,084)	(12,336)
Treasury stock	(274,005)	(272,470)
Unallocated common stock held by the Employee Stock Ownership Plan	(28,973)	(29,678)
Common stock acquired by the Directors’ Deferred Fee Plan	(4,337)	(4,504)
Deferred compensation – Directors’ Deferred Fee Plan	4,337	4,504
Total stockholders’ equity	1,373,816	1,358,980
Total liabilities and stockholders’ equity	$ 9,802,614	$ 9,725,769

XML

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Investment securities held to maturity, fair value	$ 479,827	$ 479,740
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
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)	83,209,293	83,209,293
Common stock, shares outstanding (in shares)	66,502,750	66,325,458

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest income:
Real estate secured loans	$ 55,006	$ 51,510
Commercial loans	20,510	19,126
Consumer loans	4,783	4,905
Available for sale debt securities, equity securities and Federal Home Loan Bank Stock	8,409	7,251
Held to maturity debt securities	3,162	3,144
Deposits, Federal funds sold and other short-term investments	541	395
Total interest income	92,411	86,331
Interest expense:
Deposits	10,494	6,235
Borrowed funds	6,910	6,819
Total interest expense	17,404	13,054
Net interest income	75,007	73,277
Provision for loan losses	200	5,400
Net interest income after provision for loan losses	74,807	67,877
Non-interest income:
Fees	6,097	6,639
Wealth management income	4,079	4,400
Bank-owned life insurance	1,696	1,264
Net gain on securities transactions	0	1
Other income	316	1,003
Total non-interest income	12,188	13,307
Non-interest expense:
Compensation and employee benefits	28,369	27,869
Net occupancy expense	6,857	6,745
Data processing expense	3,969	3,606
FDIC insurance	739	1,053
Amortization of intangibles	490	570
Advertising and promotion expense	883	967
Other operating expenses	7,109	6,100
Total non-interest expense	48,416	46,910
Income before income tax expense	38,579	34,274
Income tax expense	7,689	6,361
Net income	$ 30,890	$ 27,913
Basic earnings per share (usd per share)	$ 0.48	$ 0.43
Weighted average basic shares outstanding (in shares)	64,766,619	64,768,977
Diluted earnings per share (usd per share)	$ 0.48	$ 0.43
Weighted average diluted shares outstanding (in shares)	64,912,738	64,949,442

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 30,890	$ 27,913
Unrealized gains and losses on available for sale debt securities:
Net unrealized gains (losses) arising during the period	7,578	(9,639)
Reclassification adjustment for gains included in net income	0	0
Total	7,578	(9,639)
Unrealized (losses) gains on derivatives	(314)	530
Amortization related to post-retirement obligations	(12)	62
Total other comprehensive income (loss)	7,252	(9,047)
Total comprehensive income	$ 38,142	$ 18,866

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Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Treasury Stock [Member]	Unallocated ESOP Shares [Member]	Common Stock Acquired By Directors Deferred Fee Plan [Member]	Deferred Compensation DDFP [Member]
Beginning balance at Dec. 31, 2017	$ 1,298,661	$ 832	$ 1,012,908	$ 586,132	$ (7,465)	$ (259,907)	$ (33,839)	$ (5,175)	$ 5,175
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,913			27,913
Other comprehensive income (loss), net of tax	(9,047)				(9,047)
Cash dividends paid	(13,638)			(13,638)
Effect of adopting Accounting Standards Update	0			184	(184)
Distributions from DDFP	40		40					167	(167)
Purchase of employee restricted shares to fund statutory tax withholding	(1,792)					(1,792)
Shares issued dividend reinvestment plan	419		135			284
Stock option exercises	175		(65)			240
Allocation of ESOP shares	1,085		380				705
Allocation of SAP shares	1,025		1,025
Allocation of stock options	45		45
Ending Balance at Mar. 31, 2018	1,304,886	832	1,014,468	600,591	(16,696)	(261,175)	(33,134)	(5,008)	5,008
Beginning balance at Dec. 31, 2018	1,358,980	832	1,021,533	651,099	(12,336)	(272,470)	(29,678)	(4,504)	4,504
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	30,890			30,890
Other comprehensive income (loss), net of tax	7,252				7,252
Cash dividends paid	(28,964)			(28,964)
Effect of adopting Accounting Standards Update	4,350			4,350	0
Distributions from DDFP	42		42					167	(167)
Purchases of treasury stock	(180)					(180)
Purchase of employee restricted shares to fund statutory tax withholding	(1,914)					(1,914)
Shares issued dividend reinvestment plan	840		307			533
Stock option exercises	15		(11)			26
Allocation of ESOP shares	1,075		370				705
Allocation of SAP shares	1,388		1,388
Allocation of stock options	42		42
Ending Balance at Mar. 31, 2019	$ 1,373,816	$ 832	$ 1,023,671	$ 657,375	$ (5,084)	$ (274,005)	$ (28,973)	$ (4,337)	$ 4,337

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 30,890	$ 27,913
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	2,454	2,598
Provision for loan losses	200	5,400
Deferred tax expense	3,184	2,015
Amortization of operating lease right-of-use assets	1,542	0
Net decrease in operating lease liabilities	(1,598)	0
Income on Bank-owned life insurance	(1,696)	(1,264)
Net amortization of premiums and discounts on securities	1,756	2,279
Accretion of net deferred loan fees	(1,220)	(1,286)
Amortization of premiums on purchased loans, net	160	200
Net increase in loans originated for sale	(3,942)	(4,117)
Proceeds from sales of loans originated for sale	4,215	4,528
Proceeds from sales and paydowns of foreclosed assets	585	466
ESOP expense	1,075	1,085
Allocation of stock award shares	1,388	1,025
Allocation of stock options	42	45
Net gain on sale of loans	(273)	(411)
Net gain on securities transactions	0	(1)
Net gain on sale of foreclosed assets	(57)	(181)
Decrease (increase) in accrued interest receivable	295	(924)
Decrease in other assets	6,148	1,146
Decrease in other liabilities	(13,780)	(8,309)
Net cash provided by operating activities	31,368	32,207
Cash flows from investing activities:
Proceeds from maturities, calls and paydowns of held to maturity debt securities	11,432	21,934
Purchases of held to maturity debt securities	(5,780)	(11,881)
Proceeds from maturities, calls and paydowns of available for sale debt securities	40,258	55,279
Purchases of available for sale debt securities	(50,384)	(72,154)
Proceeds from redemption of Federal Home Loan Bank stock	31,536	39,929
Purchases of Federal Home Loan Bank stock	(31,357)	(33,342)
Net decrease in loans	27,579	34,994
Purchases of premises and equipment	(593)	(502)
Net cash provided by investing activities	22,691	34,257
Cash flows from financing activities:
Net increase in deposits	73,334	42,417
Increase in mortgage escrow deposits	1,795	1,061
Cash dividends paid to stockholders	(28,964)	(13,638)
Shares issued dividend reinvestment plan	840	419
Purchase of treasury stock	(180)	0
Purchase of employee restricted shares to fund statutory tax withholding	(1,914)	(1,792)
Stock options exercised	15	175
Proceeds from long-term borrowings	85,000	265,000
Payments on long-term borrowings	(213,360)	(135,810)
Net increase (decrease) in short-term borrowings	84,568	(281,616)
Net cash provided by (used in) financing activities	1,134	(123,784)
Net increase (decrease) in cash and cash equivalents	55,193	(57,320)
Cash and cash equivalents at beginning of period	142,661	190,834
Cash and cash equivalents at end of period	197,854	133,514
Cash paid during the period for:
Interest on deposits and borrowings	17,377	12,972
Income taxes	100	3,619
Non cash investing activities:
Initial recognition of operating lease right-of-use assets	44,946	0
Initial recognition of operating lease liabilities	46,050	0
Transfer of loans receivable to foreclosed assets	$ 227	$ 673

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

A. Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements include the accounts of Provident Financial Services, Inc. and its wholly owned subsidiary, Provident Bank (the “Bank,” together with Provident Financial Services, Inc., the “Company”).

In preparing the interim unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and the consolidated statements of income for the periods presented. Actual results could differ from these estimates. The allowance for loan losses and the valuation of deferred tax assets are material estimates that are particularly susceptible to near-term change.

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations that may be expected for all of 2019.

Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

These unaudited consolidated financial statements should be read in conjunction with the December 31, 2018 Annual Report to Stockholders on Form 10-K.

B. Earnings Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three months ended March 31, 2019 and 2018 (dollars in thousands, except per share amounts):

	Three months ended March 31,
	2019					2018
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	30,890				$	27,913
Basic earnings per share:
Income available to common stockholders	$	30,890	64,766,619	$	0.48	$	27,913	64,768,977	$	0.43
Dilutive shares			146,119					180,465
Diluted earnings per share:
Income available to common stockholders	$	30,890	64,912,738	$	0.48	$	27,913	64,949,442	$	0.43

Antidilutive stock options and awards at March 31, 2019 and 2018, totaling 688,655 shares and 484,613 shares, respectively, were excluded from the earnings per share calculations.

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Investment Securities

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment SecuritiesAt March 31, 2019, the Company had $1.08 billion and $472.0 million in available for sale debt securities and held to maturity debt securities, respectively. Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, regulatory actions, changes in the business environment or any changes in the competitive marketplace could have an adverse effect on the Company’s investment portfolio which could result in other-than-temporary impairment ("OTTI") in future periods. The total number of available for sale and held to maturity debt securities in an unrealized loss position as of March 31, 2019, totaled 260, compared with 509 at December 31, 2018. All securities with unrealized losses at

March 31, 2019 were analyzed for OTTI. Based upon this analysis, the Company believes that, as of March 31, 2019, such securities with unrealized losses do not represent impairments that are other-than-temporary.

Available for Sale Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,057,405	5,205	(8,128)	1,054,482
State and municipal obligations	3,944		144	—	4,088
Corporate obligations	25,037		92	(98)	25,031
	$	1,086,386	5,441	(8,226)	1,083,601

	December 31, 2018
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,048,415	2,704	(16,150)	1,034,969
State and municipal obligations	2,828		84	—	2,912
Corporate obligations	25,039		268	(109)	25,198
	$	1,076,282	3,056	(16,259)	1,063,079

The amortized cost and fair value of available for sale debt securities at March 31, 2019, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

	March 31, 2019
	Amortized cost		Fair Value
Due in one year or less	$	—	—
Due after one year through five years	3,005		3,027
Due after five years through ten years	25,976		26,092
Due after ten years	—		—
	$	28,981	29,119

Mortgage-backed securities totaling $1.06 billion at amortized cost and $1.05 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

For the three months ended March 31, 2019 and 2018, no securities were sold or called from the available for sale debt securities portfolio.

The following tables present the fair values and gross unrealized losses for available for sale debt securities with temporary impairment at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair Value	Gross unrealized losses
Mortgage-backed securities	$	5,066	(1)	591,692	(8,127)	596,758	(8,128)
Corporate obligations	—		—	4,902	(98)	4,902	(98)
	$	5,066	(1)	596,594	(8,225)	601,660	(8,226)

	December 31, 2018 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Mortgage-backed securities	$	218,175	(2,173)	545,880	(13,977)	764,055	(16,150)
Corporate obligations	7,897		(109)	—	—	7,897	(109)
	$	226,072	(2,282)	545,880	(13,977)	771,952	(16,259)

The number of available for sale debt securities in an unrealized loss position at March 31, 2019 totaled 130, compared with 175 at December 31, 2018. The decrease in the number of securities in an unrealized loss position at March 31, 2019 was due to lower current market interest rates compared to rates at December 31, 2018. All temporarily impaired securities were investment grade at March 31, 2019. At March 31, 2019, there was one private label mortgage-backed security in an unrealized loss position, with an amortized cost of $24,000 and an unrealized loss of $2,000. This private label mortgage-backed security was investment grade at March 31, 2019.

Based on its detailed review of the available for sale debt securities portfolio, the Company believes that as of March 31, 2019, securities with unrealized loss positions shown above do not represent impairments that are other-than-temporary. The Company does not have the intent to sell securities in a temporary loss position at March 31, 2019, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

Held to Maturity Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	4,620	6	(56)	4,570
Mortgage-backed securities	170		3	—	173
State and municipal obligations	456,554		8,850	(957)	464,447
Corporate obligations	10,695		14	(72)	10,637
	$	472,039	8,873	(1,085)	479,827

	December 31, 2018
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair Value
Agency obligations	$	4,989	1	(94)	4,896
Mortgage-backed securities	187		3	—	190
State and municipal obligations	463,801		4,329	(3,767)	464,363
Corporate obligations	10,448		1	(158)	10,291
	$	479,425	4,334	(4,019)	479,740

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair values may fluctuate during the investment period. There were no sales of securities from the held to maturity debt securities portfolio for the three months ended March 31, 2019 and 2018. For the three months ended March 31, 2019, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $9.3 million with no gross gains and no gross losses. For the three months ended March 31, 2018, proceeds from calls of securities in the held to maturity debt securities portfolio totaled $20.3 million with gross gains of $1,000 and no gross loss recognized.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at March 31, 2019 by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

	March 31, 2019
	Amortized cost		Fair value
Due in one year or less	$	10,605	10,620
Due after one year through five years	89,791		90,661
Due after five years through ten years	263,184		267,797
Due after ten years	108,289		110,576
	$	471,869	479,654

Mortgage-backed securities totaling $170,000 at amortized cost and $173,000 at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

The following tables present the fair value and gross unrealized losses for held to maturity debt securities with temporary impairment at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Agency obligations	$	3,652	(56)	—	—	3,652	(56)
State and municipal obligations	4,357		(31)	54,654	(926)	59,011	(957)
Corporate obligations	8,131		(72)	—	—	8,131	(72)
	$	16,140	(159)	54,654	(926)	70,794	(1,085)

	December 31, 2018 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Agency obligations	$	—	—	4,525	(94)	4,525	(94)
State and municipal obligations	96,412		(918)	81,663	(2,849)	178,075	(3,767)
Corporate obligations	—		—	9,004	(158)	9,004	(158)
	$	96,412	(918)	95,192	(3,101)	191,604	(4,019)

Based on its detailed review of the held to maturity debt securities portfolio, the Company believes that as of March 31, 2019, securities with unrealized loss positions shown above do not represent impairments that are other-than-temporary. The Company does not have the intent to sell securities in a temporary loss position at March 31, 2019, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

The number of held to maturity debt securities in an unrealized loss position at March 31, 2019 totaled 130, compared with 334 at December 31, 2018. The decrease in the number of securities in an unrealized loss position at March 31, 2019, was due to lower current market interest rates compared to rates at December 31, 2018. All temporarily impaired investment securities were investment grade at March 31, 2019.

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Loans Receivable and Allowance for Loan Losses

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Loans Receivable and Allowance for Loan Losses

Loans Receivable and Allowance for Loan Losses

Loans receivable at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019		December 31, 2018
Mortgage loans:
Residential	$	1,087,184	1,099,464
Commercial	2,288,342		2,299,313
Multi-family	1,357,038		1,339,677
Construction	374,900		388,999
Total mortgage loans	5,107,464		5,127,453
Commercial loans	1,698,146		1,695,021
Consumer loans	421,370		431,428
Total gross loans	7,226,980		7,253,902
Purchased credit-impaired ("PCI") loans	877		899
Premiums on purchased loans	3,106		3,243
Unearned discounts	(33)		(33)
Net deferred fees	(7,086)		(7,423)
Total loans	$	7,223,844	7,250,588

The following tables summarize the aging of loans receivable by portfolio segment and class of loans, excluding PCI loans (in thousands):

	March 31, 2019
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	6,132	3,541	6,809	—	16,482	1,070,702	1,087,184
Commercial	1,293		325	1,516	—	3,134	2,285,208	2,288,342
Multi-family	—		—	—	—	—	1,357,038	1,357,038
Construction	—		—	—	—	—	374,900	374,900
Total mortgage loans	7,425		3,866	8,325	—	19,616	5,087,848	5,107,464
Commercial loans	20,350		9	14,785	—	35,144	1,663,002	1,698,146
Consumer loans	1,458		88	1,687	—	3,233	418,137	421,370
Total gross loans	$	29,233	3,963	24,797	—	57,993	7,168,987	7,226,980

	December 31, 2018
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	4,188	5,557	5,853	—	15,598	1,083,866	1,099,464
Commercial	—		—	3,180	—	3,180	2,296,133	2,299,313
Multi-family	—		—	—	—	—	1,339,677	1,339,677
Construction	—		—	—	—	—	388,999	388,999
Total mortgage loans	4,188		5,557	9,033	—	18,778	5,108,675	5,127,453
Commercial loans	425		13,565	15,391	—	29,381	1,665,640	1,695,021
Consumer loans	1,238		610	1,266	—	3,114	428,314	431,428
Total gross loans	$	5,851	19,732	25,690	—	51,273	7,202,629	7,253,902

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The principal amounts of these non-accrual loans were $24.8 million and $25.7 million at March 31, 2019 and December 31, 2018, respectively. Included in non-accrual loans were $10.6 million and $11.1 million of

loans which were less than 90 days past due at March 31, 2019 and December 31, 2018, respectively. There were no loans 90 days or greater past due and still accruing interest at March 31, 2019 or December 31, 2018.

The Company defines an impaired loan as a non-homogeneous loan greater than $1.0 million for which it is probable, based on current information, all amounts due under the contractual terms of the loan agreement will not be collected. Impaired loans also include all loans modified as troubled debt restructurings (“TDRs”). A loan is deemed to be a TDR when a loan modification resulting in a concession is made in an effort to mitigate potential loss arising from a borrower’s financial difficulty. Smaller balance homogeneous loans, including residential mortgages and other consumer loans, are evaluated collectively for impairment and are excluded from the definition of impaired loans, unless modified as TDRs. The Company separately calculates the reserve for loan losses on impaired loans. The Company may recognize impairment of a loan based upon: (1) the present value of expected cash flows discounted at the effective interest rate; (2) if a loan is collateral dependent, the fair value of collateral; or (3) the fair value of the loan. Additionally, if impaired loans have risk characteristics in common, those loans may be aggregated and historical statistics may be used as a means of measuring those impaired loans.

The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral dependent impaired loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral dependent impaired loan and is generally updated annually or more frequently, if required.

A specific allocation of the allowance for loan losses is established for each collateral dependent impaired loan with a carrying balance greater than the collateral’s fair value, less estimated costs to sell. Charge-offs are generally taken for the amount of the specific allocation when operations associated with the respective property cease and it is determined that collection of amounts due will be derived primarily from the disposition of the collateral. At each quarter end, if a loan is designated as a collateral dependent impaired loan and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value. The Company believes there have been no significant time lapses in the recognition of changes in collateral values as a result of this process.

At March 31, 2019, there were 155 impaired loans totaling $63.4 million. Included in this total were 133 TDRs related to 127 borrowers totaling $50.3 million that were performing in accordance with their restructured terms and which continued to accrue interest at March 31, 2019. At December 31, 2018, there were 152 impaired loans totaling $50.7 million. Included in this total were 129 TDRs to 124 borrowers totaling $35.6 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2018.

The following table summarizes loans receivable by portfolio segment and impairment method, excluding PCI loans (in thousands):

	March 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	36,651	24,544	2,213	63,408
Collectively evaluated for impairment	5,070,813		1,673,602	419,157	7,163,572
Total gross loans	$	5,107,464	1,698,146	421,370	7,226,980

	December 31, 2018
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	24,680	23,747	2,257	50,684
Collectively evaluated for impairment	5,102,773		1,671,274	429,171	7,203,218
Total gross loans	$	5,127,453	1,695,021	431,428	7,253,902

The allowance for loan losses is summarized by portfolio segment and impairment classification as follows (in thousands):

	March 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	897	806	46	1,749
Collectively evaluated for impairment	26,029		25,545	2,030	53,604
Total gross loans	$	26,926	26,351	2,076	55,353

	December 31, 2018
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	1,026	92	47	1,165
Collectively evaluated for impairment	26,652		25,601	2,144	54,397
Total gross loans	$	27,678	25,693	2,191	55,562

Loan modifications to borrowers experiencing financial difficulties that are considered TDRs primarily involve lowering the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. These modifications generally do not result in the forgiveness of principal or accrued interest. In addition, the Company attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.

The following tables present the number of loans modified as TDRs during the three months ended March 31, 2019 and 2018, along with their balances immediately prior to the modification date and post-modification as of March 31, 2019 and 2018.

	For the three months ended
	March 31, 2019					March 31, 2018
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded  Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded  Investment	Post-Modification Outstanding Recorded  Investment
	($ in thousands)
Mortgage loans:
Commercial	1	$	14,010	$	14,010	—	—	—
Total mortgage loans	1	14,010		14,010		—	—	—
Commercial loans	4	2,013		2,013		5	8,127	$	6,626
Total restructured loans	5	$	16,023	$	16,023	5	8,127	$	6,626

All TDRs are impaired loans, which are individually evaluated for impairment, as previously discussed. During the three months ended March 31, 2019, there were no charge-offs recorded on collateral dependent impaired loans.  For the three months ended March 31, 2019, the allowance for loan losses associated with the TDRs presented in the preceding tables totaled $164,000, and was included in the allowance for loan losses for loans individually evaluated for impairment.

For the three months ended March 31, 2019, the TDRs presented in the preceding tables had a weighted average modified interest rate of approximately 3.96%, compared to a weighted average rate of 3.96%  prior to modification, respectively.

The following table presents loans modified as TDRs within the previous 12 months from March 31, 2019 and 2018, and for which there was a payment default (90 days or more past due) at the quarter ended March 31, 2019 and 2018.

	March 31, 2019			March 31, 2018
Troubled Debt Restructurings Subsequently Defaulted	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded  Investment
	($ in thousands)
Commercial loans	3	$	540	3	$	428
Total restructured loans	3	$	540	3	$	428

There were three loans to one borrower which had a payment default (90 days or more past due) for loans modified as TDRs within the 12 month period ending March 31, 2019. There were also three payment defaults (90 days or more past due) for loans modified as TDRs within the 12 month period ending March 31, 2018. TDRs that subsequently default are considered collateral dependent impaired loans and are evaluated for impairment based on the estimated fair value of the underlying collateral less expected selling costs.

PCI loans are loans acquired at a discount primarily due to deteriorated credit quality. These loans are accounted for at fair value, based upon the present value of expected future cash flows, with no related allowance for loan losses. PCI loans totaled $877,000 at March 31, 2019 and $899,000 at December 31, 2018. The decrease from December 31, 2018 was largely due to the full repayment and greater than projected cash flows on certain PCI loans.

The activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

Three months ended March 31,	Mortgage loans		Commercial loans	Consumer loans	Total
2019
Balance at beginning of period	$	27,678	25,693	2,191	55,562
Provision (credited) charged to operations	(982)		1,282	(100)	200
Recoveries of loans previously charged-off	230		52	130	412
Loans charged-off	—		(676)	(145)	(821)
Balance at end of period	$	26,926	26,351	2,076	55,353
2018
Balance at beginning of period	$	28,052	29,814	2,329	60,195
Provision (credited) charged to operations	(22)		5,390	32	5,400
Recoveries of loans previously charged-off	88		127	180	395
Loans charged-off	(117)		(3,005)	(347)	(3,469)
Balance at end of period	$	28,001	32,326	2,194	62,521

The following table presents loans individually evaluated for impairment by class and loan category, excluding PCI loans (in thousands):

	March 31, 2019						December 31, 2018
	Unpaid Principal Balance		Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized	Unpaid Principal Balance	Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized
Loans with no related allowance
Mortgage loans:
Residential	$	16,094	13,010	—	13,055	170	15,013	12,005	—	12,141	594
Commercial	14,010		14,010	—	14,010	—	1,550	1,546	—	1,546	—
Total	30,104		27,020	—	27,065	170	16,563	13,551	—	13,687	594
Commercial loans	12,690		9,054	—	9,330	115	21,746	16,254	—	17,083	328
Consumer loans	1,840		1,281	—	1,297	20	1,871	1,313	—	1,386	90
Total impaired loans	$	44,634	37,355	—	37,692	305	40,180	31,118	—	32,156	1,012
Loans with an allowance recorded
Mortgage loans:
Residential	$	9,018	8,598	828	8,621	89	10,573	10,090	954	10,186	425
Commercial	1,033		1,033	69	1,037	13	1,039	1,039	72	1,052	53
Total	10,051		9,631	897	9,658	102	11,612	11,129	1,026	11,238	478
Commercial loans	17,539		15,490	806	16,550	255	7,493	7,493	92	9,512	435
Consumer loans	943		932	46	938	13	954	944	47	962	40
Total impaired loans	$	28,533	26,053	1,749	27,146	370	20,059	19,566	1,165	21,712	953
Total impaired loans
Mortgage loans:
Residential	$	25,112	21,608	828	21,676	259	25,586	22,095	954	22,327	1,019
Commercial	15,043		15,043	69	15,047	13	2,589	2,585	72	2,598	53
Total	40,155		36,651	897	36,723	272	28,175	24,680	1,026	24,925	1,072
Commercial loans	30,229		24,544	806	25,880	370	29,239	23,747	92	26,595	763
Consumer loans	2,783		2,213	46	2,235	33	2,825	2,257	47	2,348	130
Total impaired loans	$	73,167	63,408	1,749	64,838	675	60,239	50,684	1,165	53,868	1,965

Specific allocations of the allowance for loan losses attributable to impaired loans totaled $1.7 million at March 31, 2019 and $1.2 million at December 31, 2018. At March 31, 2019 and December 31, 2018, impaired loans for which there was no related allowance for loan losses totaled $37.4 million and $31.1 million, respectively. The average balance of impaired loans for the three months ended March 31, 2019 and December 31, 2018 was $64.8 million and $53.9 million, respectively.

The Company utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department. The risk ratings are also confirmed through periodic loan review examinations, which are currently performed by an independent third-party. Reports by the independent third-party are presented directly to the Audit Committee of the Board of Directors.

Loans receivable by credit quality risk rating indicator, excluding PCI loans, are as follows (in thousands):

	At March 31, 2019
	Residential		Commercialmortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	3,059	25,518	—	—	28,577	54,481	88	83,146
Substandard	8,651		15,571	—	6,181	30,403	68,136	2,078	100,617
Doubtful	—		—	—	—	—	202	—	202
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	11,710		41,089	—	6,181	58,980	122,819	2,166	183,965
Pass/Watch	1,075,474		2,247,253	1,357,038	368,719	5,048,484	1,575,327	419,204	7,043,015
Total	$	1,087,184	2,288,342	1,357,038	374,900	5,107,464	1,698,146	421,370	7,226,980
	At December 31, 2018
	Residential		Commercialmortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	5,071	14,496	228	—	19,795	67,396	610	87,801
Substandard	7,878		13,292	—	6,181	27,351	45,180	1,711	74,242
Doubtful	—		—	—	—	—	923	—	923
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	12,949		27,788	228	6,181	47,146	113,499	2,321	162,966
Pass/Watch	1,086,515		2,271,525	1,339,449	382,818	5,080,307	1,581,522	429,107	7,090,936
Total	$	1,099,464	2,299,313	1,339,677	388,999	5,127,453	1,695,021	431,428	7,253,902

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Deposits

3 Months Ended

Mar. 31, 2019

Banking and Thrift [Abstract]

Deposits

Deposits

Deposits at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019		December 31, 2018
Savings	$	1,051,904	1,051,922
Money market	1,592,468		1,496,310
NOW	2,019,822		2,049,645
Non-interest bearing	1,434,660		1,481,753
Certificates of deposit	804,602		750,492
Total deposits	$	6,903,456	6,830,122

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Components of Net Periodic Benefit Cost

3 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

The Bank has a noncontributory defined benefit pension plan covering its full-time employees who had attained age 21 with at least one year of service as of April 1, 2003. The pension plan was frozen on April 1, 2003. All participants in the Plan are 100% vested. The pension plan’s assets are invested in investment funds and group annuity contracts currently managed by the Principal Financial Group and Allmerica Financial.

In addition to pension benefits, certain health care and life insurance benefits are currently made available to certain of the Bank’s retired employees. The costs of such benefits are accrued based on actuarial assumptions from the date of hire to the date the employee is fully eligible to receive the benefits. Effective January 1, 2003, eligibility for retiree health care benefits

was frozen as to new entrants, and benefits were eliminated for employees with less than ten years of service as of December 31, 2002. Effective January 1, 2007, eligibility for retiree life insurance benefits was frozen as to new entrants and retiree life insurance benefits were eliminated for employees with less than ten years of service as of December 31, 2006.

Net periodic (increase) benefit cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2019 and 2018 includes the following components (in thousands):

	Three months ended March 31,
	Pension benefits			Other post-retirement benefits
	2019		2018	2019	2018
Service cost	$	—	—	20	29
Interest cost	300		274	210	197
Expected return on plan assets	(641)		(693)	—	—
Amortization of prior service cost	—		—	—	—
Amortization of the net loss (gain)	254		199	(207)	(99)
Net periodic (increase) benefit cost	$	(87)	(220)	23	127

In its consolidated financial statements for the year ended December 31, 2018, the Company previously disclosed that it does not expect to contribute to the pension plan in 2019. As of March 31, 2019, no contributions have been made to the pension plan.

The net periodic (increase) benefit cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2019 was calculated using the actual January 1, 2019 pension and other post-retirement benefits valuations.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2019

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2019 

In October 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815) – Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” This ASU permits the use of the OIS rate based upon SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the UST, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the SIFMA Municipal Swap Rate. The amendments in ASU 2018-16 are required to be adopted concurrently with ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging," which is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. ASU 2018-16 should be adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The Company adopted this guidance effective January 1, 2019.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging." The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for premiums on callable debt securities by requiring that premiums be amortized to the first (or earliest) call date instead of as an adjustment to the yield over the contractual life. This change more closely aligns the accounting with the economics of a callable debt security and the amortization period with expectations that already are included in market pricing on callable debt securities. This ASU does not change the accounting for discounts on callable debt securities, which will continue to be amortized to the maturity date. This guidance only includes instruments that are held at a premium and have explicit call features. It does not include instruments that contain prepayment features, such as mortgage backed securities; nor does it include call options that are contingent upon future events or in which the timing or amount to be paid is not fixed.  This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within the reporting period, with early adoption permitted.

Transition is on a modified retrospective basis with an adjustment to retained earnings as of the beginning of the period of adoption. If early adopted in an interim period, adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company adopted this guidance effective January 1, 2019.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU No. 2018-11, “Leases - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02. In the first quarter of 2018, the Company formed a working group to guide the implementation efforts, including the identification and review of all lease agreements within the scope of the guidance. The working group has identified the inventory of leases and actively accumulated the requisite lease data necessary to apply the guidance. Also, the working group purchased and implemented a software platform to properly record and track all leases, monitor right-of-use assets and lease liabilities and support all accounting and disclosure requirements of the guidance. The Company adopted both ASU No. 2016-02 and ASU No. 2018-11 effective January 1, 2019 and elected to apply the guidance as of the beginning of the period of adoption (January 1, 2019) and not restate comparative periods.  The Company also elected certain optional practical expedients, which allow the Company to forego a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The adoption of the new standard resulted in the Company recording a right-of-use and an additional lease liability on its consolidated statement of financial condition of $44.9 million and $46.1 million, respectively, based on the present value of the expected remaining lease payments at January 1, 2019.  It also resulted in additional footnote disclosures (see Note 11 - "Leases").

Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. The Company does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments by a reporting entity at each reporting date. The amendments in this ASU require financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses would represent a valuation account that would be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement would reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses would be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will be required to use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The amendments in ASU 2016-13 are effective for fiscal years, including interim periods, beginning after December 15, 2019. Early adoption of this ASU is permitted for fiscal years beginning after December 15, 2018. The Company continues to evaluate the potential impact of ASU 2016-13 on the consolidated financial statements. In that regard, the Company formed, in the first quarter of 2017, a cross-functional working group, under the direction of the Chief Credit Officer, Chief Financial Officer and Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others. The Company developed a detailed implementation plan to include an assessment of processes, portfolio segmentation, model development, model validation, system requirements, the identification of data and resource needs and the development of a governance and control structure, among other things. The Company selected a system

platform and has engaged with third-party vendors to assist with model development, data governance and financial and operational controls to support the adoption of this ASU. The adoption of the ASU 2016-13 may result in an increase in the allowance for loan losses as a result of changing from an "incurred loss" model, which encompasses allowances for current known and inherent losses within the portfolio, to an "expected loss" model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate establishing an allowance for expected credit losses on held to maturity debt securities. The Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13. It is expected that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, the Company utilizes various valuation techniques to estimate fair value.

Fair value is an estimate of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. However, in many instances fair value estimates may not be substantiated by comparison to independent markets and may not be realized in an immediate sale of the financial instrument.

GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are as follows:

Level 1:	Unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2:	Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3:	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The valuation techniques are based upon the unpaid principal balance only, and exclude any accrued interest or dividends at the measurement date. Interest income and expense and dividend income are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The valuation techniques described below were used to measure fair value of financial instruments in the table below on a recurring basis as of March 31, 2019 and December 31, 2018.

Available for Sale Debt Securities, at Fair Value

For available for sale debt securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has generally not resulted in an adjustment in the prices obtained from the pricing service.

Equity Securities, at Fair Value

The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs.

Derivatives

The Company records all derivatives on the statements of financial condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company has interest rate derivatives resulting from a service provided to certain qualified borrowers in a loan related transaction and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. As such, all changes in fair value of the Company’s interest rate derivatives not used to manage interest rate risk are recognized directly in earnings.

The Company also uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges, and which satisfy hedge accounting requirements, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. These derivatives were used to hedge the variable cash outflows associated with Federal Home Loan Bank borrowings.

The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.

Assets Measured at Fair Value on a Non-Recurring Basis

The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis as of March 31, 2019 and December 31, 2018.

Collateral Dependent Impaired Loans

For loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 5% and 10%. The Company classifies these loans as Level 3 within the fair value hierarchy.

Foreclosed Assets

Assets acquired through foreclosure or deed in lieu of foreclosure are carried at fair value, less estimated selling costs, which range between 5% and 10%. Fair value is generally based on independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case basis, to comparable assets based on the appraisers’ market knowledge and experience, and are classified as Level 3. When an asset is acquired, the excess of the loan balance over fair value less estimated selling costs is charged to the allowance for loan losses. A reserve for foreclosed assets may be established to provide for possible write-downs and selling costs that occur subsequent to foreclosure. Foreclosed assets are carried net of the related reserve. Operating results from real estate owned, including rental income, operating expenses, and gains and losses realized from the sales of real estate owned, are recorded as incurred.

There were no changes to the valuation techniques for fair value measurements as of March 31, 2019 and December 31, 2018.

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of March 31, 2019 and December 31, 2018, by level within the fair value hierarchy:

	Fair Value Measurements at Reporting Date Using:
(In thousands)	March 31, 2019		Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Available for sale debt securities:
Mortgage-backed securities	$	1,054,482	—	1,054,482	—
State and municipal obligations	4,088		—	4,088	—
Corporate obligations	25,031		—	25,031	—
Total available for sale debt securities	$	1,083,601	—	1,083,601	—
Equity securities	724		724	—	—
Derivative assets	17,718		—	17,718	—
	$	1,102,043	724	1,101,319	—
Derivative liabilities	$	17,959	—	17,959	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	9,868	—	—	9,868
Foreclosed assets	1,264		—	—	1,264
	$	11,132	—	—	11,132

	Fair Value Measurements at Reporting Date Using:
(In thousands)	December 31, 2018		Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Available for sale debt securities:
Mortgage-backed securities	$	1,034,969	—	1,034,969	—
State and municipal obligations	2,912		—	2,912	—
Corporate obligations	25,198		—	25,198	—
Total available for sale debt securities	$	1,063,079	—	1,063,079	—
Equity Securities	635		635	—	—
Derivative assets	15,634		—	15,634	—
	$	1,079,348	635	1,078,713	—
Derivative liabilities	$	14,766	—	14,766	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	4,285	—	—	4,285
Foreclosed assets	1,565		—	—	1,565
	$	5,850	—	—	5,850

There were no transfers between Level 1, Level 2 and Level 3 during the three months ended March 31, 2019.

Other Fair Value Disclosures

The Company is required to disclose estimated fair value of financial instruments, both assets and liabilities on and off the balance sheet, for which it is practicable to estimate fair value. The following is a description of valuation methodologies used for those assets and liabilities.

Cash and Cash Equivalents

For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value. Included in cash and cash equivalents at March 31, 2019 and December 31, 2018 was $36.4 million and $35.0 million, respectively, representing reserves required by banking regulations.

Held to Maturity Debt Securities

For held to maturity debt securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to benchmark or comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has generally not resulted in adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government and U.S. government agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 within the fair value hierarchy.

Federal Home Loan Bank of New York ("FHLBNY") Stock

The carrying value of FHLBNY stock is its cost. The fair value of FHLBNY stock is based on redemption at par value. The Company classifies the estimated fair value as Level 1 within the fair value hierarchy.

Loans

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and into performing and non-performing categories. The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date (i.e. exit pricing). The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3.

The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3.

Deposits

The fair value of deposits with no stated maturity, such as non-interest bearing demand deposits and savings deposits, was equal to the amount payable on demand and classified as Level 1. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2.

Borrowed Funds

The fair value of borrowed funds was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

Commitments to Extend Credit and Letters of Credit

The fair value of commitments to extend credit and letters of credit was estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the

counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value estimates of commitments to extend credit and letters of credit are deemed immaterial.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments.

Significant assets and liabilities that are not considered financial assets or liabilities include goodwill and other intangibles, deferred tax assets and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

The following tables present the Company’s financial instruments at their carrying and fair values as of March 31, 2019 and December 31, 2018. Fair values are presented by level within the fair value hierarchy.

			Fair Value Measurements at March 31, 2019 Using:
(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	141,658	141,658	141,658	—	—
Available for sale debt securities:
Mortgage-backed securities	1,054,482		1,054,482	—	1,054,482	—
State and municipal obligations	4,088		4,088	—	4,088	—
Corporate obligations	25,031		25,031	—	25,031	—
Total available for sale debt securities	$	1,083,601	1,083,601	—	1,083,601	—
Held to maturity debt securities:
Agency obligations	4,620		4,570	4,570	—	—
Mortgage-backed securities	170		173	—	173	—
State and municipal obligations	456,554		464,447	—	464,447	—
Corporate obligations	10,695		10,637	—	10,637	—
Total held to maturity debt securities	$	472,039	479,827	4,570	475,257	—
FHLBNY stock	68,634		68,634	68,634	—	—
Equity Securities	724		724	724	—	—
Loans, net of allowance for loan losses	7,168,491		7,122,478	—	—	7,122,478
Derivative assets	17,718		17,718	—	17,718	—
Financial liabilities:
Deposits other than certificates of deposits	$	6,098,854	6,098,854	6,098,854	—	—
Certificates of deposit	804,602		801,845	—	801,845	—
Total deposits	$	6,903,456	6,900,699	6,098,854	801,845	—
Borrowings	1,398,490		1,393,046	—	1,393,046	—
Derivative liabilities	17,959		17,959	—	17,959	—

			Fair Value Measurements at December 31, 2018 Using:
(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	142,661	142,661	142,661	—	—
Available for sale debt securities:
Agency obligations	—		—	—	—	—
Mortgage-backed securities	1,034,969		1,034,969	—	1,034,969	—
State and municipal obligations	2,912		2,912	—	2,912	—
Corporate obligations	25,198		25,198	—	25,198	—
Total available for sale debt securities	$	1,063,079	1,063,079	—	1,063,079	—
Held to maturity debt securities:
Agency obligations	$	4,989	4,896	4,896	—	—
Mortgage-backed securities	187		190	—	190	—
State and municipal obligations	463,801		464,363	—	464,363	—
Corporate obligations	10,448		10,291	—	10,291	—
Total held to maturity debt securities	$	479,425	479,740	4,896	474,844	—
FHLBNY stock	68,813		68,813	68,813	—	—
Equity Securities	635		635	635	—	—
Loans, net of allowance for loan losses	7,195,026		7,104,380	—	—	7,104,380
Derivative assets	15,634		15,634	—	15,634	—
Financial liabilities:
Deposits other than certificates of deposits	$	6,079,630	6,079,630	6,079,630	—	—
Certificates of deposit	750,492		746,753	—	746,753	—
Total deposits	$	6,830,122	6,826,383	6,079,630	746,753	—
Borrowings	1,442,282		1,431,001	—	1,431,001	—
Derivative liabilities	14,766		14,766	—	14,766	—

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Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive income (loss), both gross and net of tax, for the three months ended March 31, 2019 and 2018 (in thousands):

	Three months ended March 31,
	2019				2018
	Before Tax		Tax Effect	After Tax	Before Tax	Tax Effect	After Tax
Components of Other Comprehensive Income (Loss):
Unrealized gains and losses on available for sale debt securities:
Net unrealized gains (losses) arising during the period	$	10,417	(2,839)	7,578	(13,093)	3,454	(9,639)
Reclassification adjustment for gains included in net income	—		—	—	—	—	—
Total	10,417		(2,839)	7,578	(13,093)	3,454	(9,639)
Unrealized (losses) gains on Derivatives (cash flow hedges)	(432)		118	(314)	720	(190)	530
Amortization related to post-retirement obligations	(16)		4	(12)	84	(22)	62
Total other comprehensive income (loss)	$	9,969	(2,717)	7,252	(12,289)	3,242	(9,047)

The following tables present the changes in the components of accumulated other comprehensive (loss) income, net of tax, for three months ended March 31, 2019 and 2018 (in thousands):

	Changes in Accumulated Other Comprehensive (Loss) Income Component, net of tax for the three months ended March 31,
	2019					2018
	Unrealized (Losses) Gains on Available for Sale Debt Securities		Post- Retirement Obligations	Unrealized gains (losses) on Derivatives (cash flow hedges)	Accumulated Other Comprehensive (Loss) Income	Unrealized Losses on Available for Sale Debt Securities		Post-  Retirement Obligations	Unrealized Gains on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Loss
Balance at December 31,	$	(9,605)	(3,625)	894	(12,336)	(3,292)		(4,846)	673	(7,465)
Current period other comprehensive income (loss)	7,578		(12)	(314)	7,252	(9,639)		62	530	(9,047)
Reclassification of tax effects due to the adoption of ASU No. 2016-01	$	—	—	—	—	$	(184)	—	—	(184)
Balance at March 31,	$	(2,027)	(3,637)	580	(5,084)	(13,115)		(4,784)	1,203	(16,696)

The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income for three months ended March 31, 2019 and 2018 (in thousands):

	Reclassifications From Accumulated Other Comprehensive Income ("AOCI")
	Amount reclassified from AOCI for the three months ended March 31,			Affected line item in the Consolidated Statement of Income
	2019		2018
Details of AOCI:
Post-retirement obligations:
Amortization of actuarial losses	$	47	100	Compensation and employee benefits (1)
	(13)		(26)	Income tax expense
Total reclassifications	$	34	74	Net of tax

⁽¹⁾ This item is included in the computation of net periodic benefit cost. See Note 5. Components of Net Periodic Benefit Cost.

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Hedging Activities

Derivative and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities.

Non-designated Hedges. Derivatives not designated in qualifying hedging relationships are not speculative and result from a service the Company provides to certain qualified commercial borrowers in loan related transactions and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company executes interest rate swaps with qualified commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. The interest rate swap agreement which the Company executes with the commercial borrower is collateralized by the borrower's commercial real estate financed by the Company. As the Company has not elected to apply hedge accounting and these interest rate swaps do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. At March 31, 2019 and December 31, 2018, the Company had 66 and 62 interest rate swaps with qualified commercial borrowers, respectively, with aggregate notional amounts of $1.02 billion and $1.01 billion, respectively.

The Company periodically enters into risk participation agreements ("RPAs") with the Company functioning as either the lead institution, or as a participant when another Company is the lead institution on a commercial loan. These RPA's are entered into to manage the credit exposure on interest rate contracts associated with these loan participation agreements. Under the RPA's, the Company will either receive or make a payment if a borrower defaults on the related interest rate contract.  At March 31, 2019 and December 31, 2018, the Company had twelve and seven credit contracts, respectively, with aggregate notional amounts of $87.6 million and $66.8 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements. At March 31, 2019 and December 31, 2018, the fair value of these credit contracts were $301,000 and $251,000, respectively.

Cash Flow Hedges of Interest Rate Risk. The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. 

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2019 and 2018, such derivatives were used to hedge the variable cash outflows associated with Federal Home Loan Bank borrowings.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s borrowings. During the next twelve months, the Company estimates that $520,000 will be reclassified as a decrease to interest expense. As of March 31, 2019, the Company had two outstanding

interest rate derivatives with an aggregate notional amount of $60.0 million that was designated as a cash flow hedge of interest rate risk.

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition at March 31, 2019 and December 31, 2018 (in thousands):

	At March 31, 2019
	Asset Derivatives			Liability Derivatives
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	16,619	Other liabilities	17,959
Credit contracts	Other assets	301		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	16,920		17,959
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	798	Other liabilities	—
Total derivatives designated as a hedging instrument		$	798		—

	At December 31, 2018
	Asset Derivatives			Liability Derivatives
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	14,154	Other liabilities	14,766
Credit contracts	Other assets	251		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	14,405		14,766
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	1,229	Other liabilities	—
Total derivatives designated as a hedging instrument		$	1,229		—

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three months ended March 31, 2019 and 2018 (in thousands).

		Gain (loss) recognized in income on derivatives for the three months ended
	Consolidated Statements of Income	March 31, 2019		March 31, 2018
Derivatives not designated as a hedging instrument:
Interest rate products	Other income	$	(673)	302
Credit contracts	Other income	(4)		—
Total derivatives not designated as a hedging instrument		$	(677)	302
Derivatives designated as a hedging instrument:
Interest rate products	Interest expense	$	162	6
Total derivatives designated as a hedging instrument		$	162	6

The Company has agreements with certain of its dealer counterparties that contain a provision that if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

In addition, the Company has agreements with certain of its dealer counterparties that contain a provision that if the Company fails to maintain its status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements.

At March 31, 2019, the Company had four dealer counterparties. The Company had a net liability position with respect to three of the counterparties. The termination value for this net liability position, which includes accrued interest, was $11.8 million at March 31, 2019. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $13.4 million against its obligations under these agreements. If the Company had breached any of these provisions at March 31, 2019, it could have been required to settle its obligations under the agreements at the termination value.

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Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The Company generates revenue from several business channels. The guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) does not apply to revenue associated with financial instruments, including interest income on loans and investments, which comprise the majority of the Company's revenue. For the three months ended March 31, 2019 and 2018, the out-of-scope revenue related to financial instruments was 88% and 87% of the Company's total revenue, respectively.  Revenue-generating activities that are within the scope of Topic 606, are components of non-interest income. These revenue streams can generally be classified into wealth management revenue and banking service charges and other fees.

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2019 and 2018 (in thousands):

	Three months ended March 31,
	2019		2018
Non-interest income
In-scope of Topic 606:
Wealth management fees	$	4,079	4,400
Banking service charges and other fees:
Service charges on deposit accounts	3,191		3,315
Debit card and ATM fees	1,307		1,402
Total banking service charges and other fees	4,498		4,717
Total in-scope non-interest income	8,577		9,117
Total out-of-scope non-interest income	3,611		4,190
Total non-interest income	$	12,188	13,307

Wealth management fee income represents fees earned from customers as consideration for asset management, investment advisory and trust services. The Company’s performance obligation is generally satisfied monthly and the resulting fees are recognized monthly.  The fee is based upon the average market value of the assets under management for the month and the applicable fee rate. The monthly accrual of wealth management fees is recorded in other assets on the Company's Consolidated Statements of Financial Condition. Fees are received from the customer either on a quarterly or monthly basis. The Company does not earn performance-based incentives. To a lesser extent, optional services such as tax return preparation and estate settlement are also available to existing customers. The Company’s performance obligation for these transaction-based services are generally satisfied, and related revenue recognized, at either a point in time when the service is completed, or in the case of estate settlement, over a relatively short period of time, as each service component is completed.

Service charges on deposit accounts include overdraft service fees, account analysis fees and other deposit related fees. These fees are generally transaction-based, or time-based services. The Company's performance obligation for these services are generally satisfied, and revenue recognized, at the time the transaction is completed, or the service rendered. Fees for these services are generally received from the customer either at the time of transaction, or monthly. Debit card and ATM fees are generally transaction-based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non

-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at time of transaction or monthly.

Out-of-scope non-interest income primarily consists of Bank-owned life insurance and net fees on loan level interest rate swaps, along with gains and losses on the sale of loans and foreclosed real estate, loan prepayment fees and loan servicing fees. None of these revenue streams are subject to the requirements of Topic 606.

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Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

Leases

On January 1, 2019, the Company adopted ASU 2016-02, "Leases" (Topic 842) and all subsequent ASU's that modified Topic 842.  For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. The Company elected the modified retrospective transition option effective with the period of adoption, elected not to recast comparative periods presented when transitioning to the new leasing standard and adjustments, if required, are made at the beginning of the period through a cumulative-effect adjustment to opening retained earnings.  The Company also elected practical expedients, which allowed the Company to forego a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The adoption of the new standard resulted in the Company recording a right-of-use asset and an additional lease liability of $44.9 million and $46.1 million, respectively, based on the present value of the expected remaining lease payments at January 1, 2019.

Also, on January 1, 2019, the Company had $5.9 million of net deferred gains associated with several sale and leaseback transactions executed prior to the adoption of ASU 2016-02. In accordance with the guidance, these net deferred gains were adjusted, net of tax, as a cumulative-effect adjustment to opening retained earnings.

All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate property for branches and administrative offices with terms extending through 2040.

The following table represents the consolidated statements of condition classification of the Company’s right-of use-assets and lease liabilities at March 31, 2019 (in thousands):

	Classification	March 31, 2019
Lease Right-of-Use Assets:
Operating lease right-of-use assets	Other assets	$	43,404
Lease Liabilities:
Operating lease liabilities	Other liabilities	$	44,452

The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. Generally, the Company considers the first renewal option to be reasonably certain and includes it the calculation of the right-of use asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable.  As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception based upon the term of the lease. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was applied.

At March 31, 2019, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 9.9 years and 3.5%, respectively.

The following table represents lease costs and other lease information for the Company's operating leases.  The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):

(in-thousands)	Three months ended March 31, 2019
Lease Costs
Operating lease cost	$	2,050
Variable lease cost	760
Total Lease Cost	$	2,810

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,044
Operating lease - operating cash flows - reduction of lease liability	1,598

During the three months ended March 31, 2019, the Company did not enter into any new lease obligations.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2019 were as follows:

(in-thousands)	Operating Leases
Twelve Months Ended:
March 31, 2020	$	7,875
March 31, 2021	7,302
March 31, 2022	5,055
March 31, 2023	4,738
Thereafter	28,440
Total Future Minimum Lease Payments	$	53,410
Amounts Representing Interest	8,958
Present Value of Net Future Minimum Lease Payments	$	44,452

At December 31, 2018, operating lease commitments under lessee arrangements were $8.0 million, $7.6 million, $5.4 million, $3.8 million and $3.4 million for 2019 through 2023, respectively, and $10.7 million in aggregate for all years thereafter.

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Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn April 1, 2019, Beacon Trust Company ("Beacon"), completed its acquisition of certain assets and liabilities of Tirschwell & Loewy, Inc., a New York City-based independent registered investment adviser. Beacon is a wholly owned subsidiary of Provident Bank which, in turn, is wholly owned by the Company. The Company is in the process of determining the acquisition date fair value of the total consideration transferred, including contingent consideration, goodwill and other identified intangible assets.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements include the accounts of Provident Financial Services, Inc. and its wholly owned subsidiary, Provident Bank (the “Bank,” together with Provident Financial Services, Inc., the “Company”).

In preparing the interim unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and the consolidated statements of income for the periods presented. Actual results could differ from these estimates. The allowance for loan losses and the valuation of deferred tax assets are material estimates that are particularly susceptible to near-term change.

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations that may be expected for all of 2019.

Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

Impact of Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2019 

In October 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815) – Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” This ASU permits the use of the OIS rate based upon SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the UST, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the SIFMA Municipal Swap Rate. The amendments in ASU 2018-16 are required to be adopted concurrently with ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging," which is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. ASU 2018-16 should be adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The Company adopted this guidance effective January 1, 2019.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging." The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for premiums on callable debt securities by requiring that premiums be amortized to the first (or earliest) call date instead of as an adjustment to the yield over the contractual life. This change more closely aligns the accounting with the economics of a callable debt security and the amortization period with expectations that already are included in market pricing on callable debt securities. This ASU does not change the accounting for discounts on callable debt securities, which will continue to be amortized to the maturity date. This guidance only includes instruments that are held at a premium and have explicit call features. It does not include instruments that contain prepayment features, such as mortgage backed securities; nor does it include call options that are contingent upon future events or in which the timing or amount to be paid is not fixed.  This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within the reporting period, with early adoption permitted.

Transition is on a modified retrospective basis with an adjustment to retained earnings as of the beginning of the period of adoption. If early adopted in an interim period, adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company adopted this guidance effective January 1, 2019.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU No. 2018-11, “Leases - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02. In the first quarter of 2018, the Company formed a working group to guide the implementation efforts, including the identification and review of all lease agreements within the scope of the guidance. The working group has identified the inventory of leases and actively accumulated the requisite lease data necessary to apply the guidance. Also, the working group purchased and implemented a software platform to properly record and track all leases, monitor right-of-use assets and lease liabilities and support all accounting and disclosure requirements of the guidance. The Company adopted both ASU No. 2016-02 and ASU No. 2018-11 effective January 1, 2019 and elected to apply the guidance as of the beginning of the period of adoption (January 1, 2019) and not restate comparative periods.  The Company also elected certain optional practical expedients, which allow the Company to forego a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The adoption of the new standard resulted in the Company recording a right-of-use and an additional lease liability on its consolidated statement of financial condition of $44.9 million and $46.1 million, respectively, based on the present value of the expected remaining lease payments at January 1, 2019.  It also resulted in additional footnote disclosures (see Note 11 - "Leases").

Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. The Company does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments by a reporting entity at each reporting date. The amendments in this ASU require financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses would represent a valuation account that would be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement would reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses would be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will be required to use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The amendments in ASU 2016-13 are effective for fiscal years, including interim periods, beginning after December 15, 2019. Early adoption of this ASU is permitted for fiscal years beginning after December 15, 2018. The Company continues to evaluate the potential impact of ASU 2016-13 on the consolidated financial statements. In that regard, the Company formed, in the first quarter of 2017, a cross-functional working group, under the direction of the Chief Credit Officer, Chief Financial Officer and Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others. The Company developed a detailed implementation plan to include an assessment of processes, portfolio segmentation, model development, model validation, system requirements, the identification of data and resource needs and the development of a governance and control structure, among other things. The Company selected a system

platform and has engaged with third-party vendors to assist with model development, data governance and financial and operational controls to support the adoption of this ASU. The adoption of the ASU 2016-13 may result in an increase in the allowance for loan losses as a result of changing from an "incurred loss" model, which encompasses allowances for current known and inherent losses within the portfolio, to an "expected loss" model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate establishing an allowance for expected credit losses on held to maturity debt securities. The Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13. It is expected that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share Calculations

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three months ended March 31, 2019 and 2018 (dollars in thousands, except per share amounts):

	Three months ended March 31,
	2019					2018
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	30,890				$	27,913
Basic earnings per share:
Income available to common stockholders	$	30,890	64,766,619	$	0.48	$	27,913	64,768,977	$	0.43
Dilutive shares			146,119					180,465
Diluted earnings per share:
Income available to common stockholders	$	30,890	64,912,738	$	0.48	$	27,913	64,949,442	$	0.43

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value, Option, Quantitative Disclosures [Line Items]

Securities Available for Sale

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,057,405	5,205	(8,128)	1,054,482
State and municipal obligations	3,944		144	—	4,088
Corporate obligations	25,037		92	(98)	25,031
	$	1,086,386	5,441	(8,226)	1,083,601

	December 31, 2018
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,048,415	2,704	(16,150)	1,034,969
State and municipal obligations	2,828		84	—	2,912
Corporate obligations	25,039		268	(109)	25,198
	$	1,076,282	3,056	(16,259)	1,063,079

Available for sale securities with temporary impairment

The following tables present the fair values and gross unrealized losses for available for sale debt securities with temporary impairment at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair Value	Gross unrealized losses
Mortgage-backed securities	$	5,066	(1)	591,692	(8,127)	596,758	(8,128)
Corporate obligations	—		—	4,902	(98)	4,902	(98)
	$	5,066	(1)	596,594	(8,225)	601,660	(8,226)

	December 31, 2018 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Mortgage-backed securities	$	218,175	(2,173)	545,880	(13,977)	764,055	(16,150)
Corporate obligations	7,897		(109)	—	—	7,897	(109)
	$	226,072	(2,282)	545,880	(13,977)	771,952	(16,259)

Investment Securities Held to Maturity

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	4,620	6	(56)	4,570
Mortgage-backed securities	170		3	—	173
State and municipal obligations	456,554		8,850	(957)	464,447
Corporate obligations	10,695		14	(72)	10,637
	$	472,039	8,873	(1,085)	479,827

	December 31, 2018
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair Value
Agency obligations	$	4,989	1	(94)	4,896
Mortgage-backed securities	187		3	—	190
State and municipal obligations	463,801		4,329	(3,767)	464,363
Corporate obligations	10,448		1	(158)	10,291
	$	479,425	4,334	(4,019)	479,740

Schedule of Unrealized Loss on Investments

The following tables present the fair value and gross unrealized losses for held to maturity debt securities with temporary impairment at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Agency obligations	$	3,652	(56)	—	—	3,652	(56)
State and municipal obligations	4,357		(31)	54,654	(926)	59,011	(957)
Corporate obligations	8,131		(72)	—	—	8,131	(72)
	$	16,140	(159)	54,654	(926)	70,794	(1,085)

	December 31, 2018 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Agency obligations	$	—	—	4,525	(94)	4,525	(94)
State and municipal obligations	96,412		(918)	81,663	(2,849)	178,075	(3,767)
Corporate obligations	—		—	9,004	(158)	9,004	(158)
	$	96,412	(918)	95,192	(3,101)	191,604	(4,019)

Available-for-sale Securities [Member]

Fair Value, Option, Quantitative Disclosures [Line Items]

Investment Securities Classified by Contractual Maturity

The amortized cost and fair value of available for sale debt securities at March 31, 2019, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

	March 31, 2019
	Amortized cost		Fair Value
Due in one year or less	$	—	—
Due after one year through five years	3,005		3,027
Due after five years through ten years	25,976		26,092
Due after ten years	—		—
	$	28,981	29,119

Held-to-maturity Securities [Member]

Fair Value, Option, Quantitative Disclosures [Line Items]

Investment Securities Classified by Contractual Maturity

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at March 31, 2019 by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

	March 31, 2019
	Amortized cost		Fair value
Due in one year or less	$	10,605	10,620
Due after one year through five years	89,791		90,661
Due after five years through ten years	263,184		267,797
Due after ten years	108,289		110,576
	$	471,869	479,654

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Loans Receivable and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Schedule of Summarized Loans Receivable

Loans receivable at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019		December 31, 2018
Mortgage loans:
Residential	$	1,087,184	1,099,464
Commercial	2,288,342		2,299,313
Multi-family	1,357,038		1,339,677
Construction	374,900		388,999
Total mortgage loans	5,107,464		5,127,453
Commercial loans	1,698,146		1,695,021
Consumer loans	421,370		431,428
Total gross loans	7,226,980		7,253,902
Purchased credit-impaired ("PCI") loans	877		899
Premiums on purchased loans	3,106		3,243
Unearned discounts	(33)		(33)
Net deferred fees	(7,086)		(7,423)
Total loans	$	7,223,844	7,250,588

Summary of Aging Loans Receivable by Portfolio Segment and Class

The following tables summarize the aging of loans receivable by portfolio segment and class of loans, excluding PCI loans (in thousands):

	March 31, 2019
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	6,132	3,541	6,809	—	16,482	1,070,702	1,087,184
Commercial	1,293		325	1,516	—	3,134	2,285,208	2,288,342
Multi-family	—		—	—	—	—	1,357,038	1,357,038
Construction	—		—	—	—	—	374,900	374,900
Total mortgage loans	7,425		3,866	8,325	—	19,616	5,087,848	5,107,464
Commercial loans	20,350		9	14,785	—	35,144	1,663,002	1,698,146
Consumer loans	1,458		88	1,687	—	3,233	418,137	421,370
Total gross loans	$	29,233	3,963	24,797	—	57,993	7,168,987	7,226,980

	December 31, 2018
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	4,188	5,557	5,853	—	15,598	1,083,866	1,099,464
Commercial	—		—	3,180	—	3,180	2,296,133	2,299,313
Multi-family	—		—	—	—	—	1,339,677	1,339,677
Construction	—		—	—	—	—	388,999	388,999
Total mortgage loans	4,188		5,557	9,033	—	18,778	5,108,675	5,127,453
Commercial loans	425		13,565	15,391	—	29,381	1,665,640	1,695,021
Consumer loans	1,238		610	1,266	—	3,114	428,314	431,428
Total gross loans	$	5,851	19,732	25,690	—	51,273	7,202,629	7,253,902

Summary of Loans Receivable by Portfolio Segment and Impairment Method

The following table summarizes loans receivable by portfolio segment and impairment method, excluding PCI loans (in thousands):

	March 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	36,651	24,544	2,213	63,408
Collectively evaluated for impairment	5,070,813		1,673,602	419,157	7,163,572
Total gross loans	$	5,107,464	1,698,146	421,370	7,226,980

	December 31, 2018
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	24,680	23,747	2,257	50,684
Collectively evaluated for impairment	5,102,773		1,671,274	429,171	7,203,218
Total gross loans	$	5,127,453	1,695,021	431,428	7,253,902

Summary of Allowance for Loan Losses by Portfolio Segment and Impairment Classification

The allowance for loan losses is summarized by portfolio segment and impairment classification as follows (in thousands):

	March 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	897	806	46	1,749
Collectively evaluated for impairment	26,029		25,545	2,030	53,604
Total gross loans	$	26,926	26,351	2,076	55,353

	December 31, 2018
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	1,026	92	47	1,165
Collectively evaluated for impairment	26,652		25,601	2,144	54,397
Total gross loans	$	27,678	25,693	2,191	55,562

Schedule of Troubled Debt Restructuring

The following tables present the number of loans modified as TDRs during the three months ended March 31, 2019 and 2018, along with their balances immediately prior to the modification date and post-modification as of March 31, 2019 and 2018.

	For the three months ended
	March 31, 2019					March 31, 2018
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded  Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded  Investment	Post-Modification Outstanding Recorded  Investment
	($ in thousands)
Mortgage loans:
Commercial	1	$	14,010	$	14,010	—	—	—
Total mortgage loans	1	14,010		14,010		—	—	—
Commercial loans	4	2,013		2,013		5	8,127	$	6,626
Total restructured loans	5	$	16,023	$	16,023	5	8,127	$	6,626

Schedule of Troubled Debt Restructurings Subsequently Defaulted

The following table presents loans modified as TDRs within the previous 12 months from March 31, 2019 and 2018, and for which there was a payment default (90 days or more past due) at the quarter ended March 31, 2019 and 2018.

	March 31, 2019			March 31, 2018
Troubled Debt Restructurings Subsequently Defaulted	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded  Investment
	($ in thousands)
Commercial loans	3	$	540	3	$	428
Total restructured loans	3	$	540	3	$	428

Schedule of Allowance for Loan Losses by Portfolio Segment

The activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

Three months ended March 31,	Mortgage loans		Commercial loans	Consumer loans	Total
2019
Balance at beginning of period	$	27,678	25,693	2,191	55,562
Provision (credited) charged to operations	(982)		1,282	(100)	200
Recoveries of loans previously charged-off	230		52	130	412
Loans charged-off	—		(676)	(145)	(821)
Balance at end of period	$	26,926	26,351	2,076	55,353
2018
Balance at beginning of period	$	28,052	29,814	2,329	60,195
Provision (credited) charged to operations	(22)		5,390	32	5,400
Recoveries of loans previously charged-off	88		127	180	395
Loans charged-off	(117)		(3,005)	(347)	(3,469)
Balance at end of period	$	28,001	32,326	2,194	62,521

Summary of Impaired Loans Receivable by Class

The following table presents loans individually evaluated for impairment by class and loan category, excluding PCI loans (in thousands):

	March 31, 2019						December 31, 2018
	Unpaid Principal Balance		Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized	Unpaid Principal Balance	Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized
Loans with no related allowance
Mortgage loans:
Residential	$	16,094	13,010	—	13,055	170	15,013	12,005	—	12,141	594
Commercial	14,010		14,010	—	14,010	—	1,550	1,546	—	1,546	—
Total	30,104		27,020	—	27,065	170	16,563	13,551	—	13,687	594
Commercial loans	12,690		9,054	—	9,330	115	21,746	16,254	—	17,083	328
Consumer loans	1,840		1,281	—	1,297	20	1,871	1,313	—	1,386	90
Total impaired loans	$	44,634	37,355	—	37,692	305	40,180	31,118	—	32,156	1,012
Loans with an allowance recorded
Mortgage loans:
Residential	$	9,018	8,598	828	8,621	89	10,573	10,090	954	10,186	425
Commercial	1,033		1,033	69	1,037	13	1,039	1,039	72	1,052	53
Total	10,051		9,631	897	9,658	102	11,612	11,129	1,026	11,238	478
Commercial loans	17,539		15,490	806	16,550	255	7,493	7,493	92	9,512	435
Consumer loans	943		932	46	938	13	954	944	47	962	40
Total impaired loans	$	28,533	26,053	1,749	27,146	370	20,059	19,566	1,165	21,712	953
Total impaired loans
Mortgage loans:
Residential	$	25,112	21,608	828	21,676	259	25,586	22,095	954	22,327	1,019
Commercial	15,043		15,043	69	15,047	13	2,589	2,585	72	2,598	53
Total	40,155		36,651	897	36,723	272	28,175	24,680	1,026	24,925	1,072
Commercial loans	30,229		24,544	806	25,880	370	29,239	23,747	92	26,595	763
Consumer loans	2,783		2,213	46	2,235	33	2,825	2,257	47	2,348	130
Total impaired loans	$	73,167	63,408	1,749	64,838	675	60,239	50,684	1,165	53,868	1,965

Summary of Loans Receivable by Credit Quality Risk Rating Indicator

Loans receivable by credit quality risk rating indicator, excluding PCI loans, are as follows (in thousands):

	At March 31, 2019
	Residential		Commercialmortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	3,059	25,518	—	—	28,577	54,481	88	83,146
Substandard	8,651		15,571	—	6,181	30,403	68,136	2,078	100,617
Doubtful	—		—	—	—	—	202	—	202
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	11,710		41,089	—	6,181	58,980	122,819	2,166	183,965
Pass/Watch	1,075,474		2,247,253	1,357,038	368,719	5,048,484	1,575,327	419,204	7,043,015
Total	$	1,087,184	2,288,342	1,357,038	374,900	5,107,464	1,698,146	421,370	7,226,980
	At December 31, 2018
	Residential		Commercialmortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	5,071	14,496	228	—	19,795	67,396	610	87,801
Substandard	7,878		13,292	—	6,181	27,351	45,180	1,711	74,242
Doubtful	—		—	—	—	—	923	—	923
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	12,949		27,788	228	6,181	47,146	113,499	2,321	162,966
Pass/Watch	1,086,515		2,271,525	1,339,449	382,818	5,080,307	1,581,522	429,107	7,090,936
Total	$	1,099,464	2,299,313	1,339,677	388,999	5,127,453	1,695,021	431,428	7,253,902

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Deposits (Tables)

3 Months Ended

Mar. 31, 2019

Banking and Thrift [Abstract]

Schedule of Deposits

Deposits at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019		December 31, 2018
Savings	$	1,051,904	1,051,922
Money market	1,592,468		1,496,310
NOW	2,019,822		2,049,645
Non-interest bearing	1,434,660		1,481,753
Certificates of deposit	804,602		750,492
Total deposits	$	6,903,456	6,830,122

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Components of Net Periodic Benefit Cost (Tables)

3 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Net Periodic Benefit Cost (Increase)

Net periodic (increase) benefit cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2019 and 2018 includes the following components (in thousands):

	Three months ended March 31,
	Pension benefits			Other post-retirement benefits
	2019		2018	2019	2018
Service cost	$	—	—	20	29
Interest cost	300		274	210	197
Expected return on plan assets	(641)		(693)	—	—
Amortization of prior service cost	—		—	—	—
Amortization of the net loss (gain)	254		199	(207)	(99)
Net periodic (increase) benefit cost	$	(87)	(220)	23	127

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Reported on Consolidated Statements of Financial Condition at Fair Values

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of March 31, 2019 and December 31, 2018, by level within the fair value hierarchy:

	Fair Value Measurements at Reporting Date Using:
(In thousands)	March 31, 2019		Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Available for sale debt securities:
Mortgage-backed securities	$	1,054,482	—	1,054,482	—
State and municipal obligations	4,088		—	4,088	—
Corporate obligations	25,031		—	25,031	—
Total available for sale debt securities	$	1,083,601	—	1,083,601	—
Equity securities	724		724	—	—
Derivative assets	17,718		—	17,718	—
	$	1,102,043	724	1,101,319	—
Derivative liabilities	$	17,959	—	17,959	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	9,868	—	—	9,868
Foreclosed assets	1,264		—	—	1,264
	$	11,132	—	—	11,132

	Fair Value Measurements at Reporting Date Using:
(In thousands)	December 31, 2018		Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Available for sale debt securities:
Mortgage-backed securities	$	1,034,969	—	1,034,969	—
State and municipal obligations	2,912		—	2,912	—
Corporate obligations	25,198		—	25,198	—
Total available for sale debt securities	$	1,063,079	—	1,063,079	—
Equity Securities	635		635	—	—
Derivative assets	15,634		—	15,634	—
	$	1,079,348	635	1,078,713	—
Derivative liabilities	$	14,766	—	14,766	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	4,285	—	—	4,285
Foreclosed assets	1,565		—	—	1,565
	$	5,850	—	—	5,850

Schedule of Financial Instruments at Carrying and Fair Values

The following tables present the Company’s financial instruments at their carrying and fair values as of March 31, 2019 and December 31, 2018. Fair values are presented by level within the fair value hierarchy.

			Fair Value Measurements at March 31, 2019 Using:
(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	141,658	141,658	141,658	—	—
Available for sale debt securities:
Mortgage-backed securities	1,054,482		1,054,482	—	1,054,482	—
State and municipal obligations	4,088		4,088	—	4,088	—
Corporate obligations	25,031		25,031	—	25,031	—
Total available for sale debt securities	$	1,083,601	1,083,601	—	1,083,601	—
Held to maturity debt securities:
Agency obligations	4,620		4,570	4,570	—	—
Mortgage-backed securities	170		173	—	173	—
State and municipal obligations	456,554		464,447	—	464,447	—
Corporate obligations	10,695		10,637	—	10,637	—
Total held to maturity debt securities	$	472,039	479,827	4,570	475,257	—
FHLBNY stock	68,634		68,634	68,634	—	—
Equity Securities	724		724	724	—	—
Loans, net of allowance for loan losses	7,168,491		7,122,478	—	—	7,122,478
Derivative assets	17,718		17,718	—	17,718	—
Financial liabilities:
Deposits other than certificates of deposits	$	6,098,854	6,098,854	6,098,854	—	—
Certificates of deposit	804,602		801,845	—	801,845	—
Total deposits	$	6,903,456	6,900,699	6,098,854	801,845	—
Borrowings	1,398,490		1,393,046	—	1,393,046	—
Derivative liabilities	17,959		17,959	—	17,959	—

			Fair Value Measurements at December 31, 2018 Using:
(Dollars in thousands)	Carrying value		Fair value	Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable  Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	142,661	142,661	142,661	—	—
Available for sale debt securities:
Agency obligations	—		—	—	—	—
Mortgage-backed securities	1,034,969		1,034,969	—	1,034,969	—
State and municipal obligations	2,912		2,912	—	2,912	—
Corporate obligations	25,198		25,198	—	25,198	—
Total available for sale debt securities	$	1,063,079	1,063,079	—	1,063,079	—
Held to maturity debt securities:
Agency obligations	$	4,989	4,896	4,896	—	—
Mortgage-backed securities	187		190	—	190	—
State and municipal obligations	463,801		464,363	—	464,363	—
Corporate obligations	10,448		10,291	—	10,291	—
Total held to maturity debt securities	$	479,425	479,740	4,896	474,844	—
FHLBNY stock	68,813		68,813	68,813	—	—
Equity Securities	635		635	635	—	—
Loans, net of allowance for loan losses	7,195,026		7,104,380	—	—	7,104,380
Derivative assets	15,634		15,634	—	15,634	—
Financial liabilities:
Deposits other than certificates of deposits	$	6,079,630	6,079,630	6,079,630	—	—
Certificates of deposit	750,492		746,753	—	746,753	—
Total deposits	$	6,830,122	6,826,383	6,079,630	746,753	—
Borrowings	1,442,282		1,431,001	—	1,431,001	—
Derivative liabilities	14,766		14,766	—	14,766	—

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Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Components of Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive income (loss), both gross and net of tax, for the three months ended March 31, 2019 and 2018 (in thousands):

	Three months ended March 31,
	2019				2018
	Before Tax		Tax Effect	After Tax	Before Tax	Tax Effect	After Tax
Components of Other Comprehensive Income (Loss):
Unrealized gains and losses on available for sale debt securities:
Net unrealized gains (losses) arising during the period	$	10,417	(2,839)	7,578	(13,093)	3,454	(9,639)
Reclassification adjustment for gains included in net income	—		—	—	—	—	—
Total	10,417		(2,839)	7,578	(13,093)	3,454	(9,639)
Unrealized (losses) gains on Derivatives (cash flow hedges)	(432)		118	(314)	720	(190)	530
Amortization related to post-retirement obligations	(16)		4	(12)	84	(22)	62
Total other comprehensive income (loss)	$	9,969	(2,717)	7,252	(12,289)	3,242	(9,047)

Components of Accumulated Other Comprehensive Income, Net of Tax

The following tables present the changes in the components of accumulated other comprehensive (loss) income, net of tax, for three months ended March 31, 2019 and 2018 (in thousands):

	Changes in Accumulated Other Comprehensive (Loss) Income Component, net of tax for the three months ended March 31,
	2019					2018
	Unrealized (Losses) Gains on Available for Sale Debt Securities		Post- Retirement Obligations	Unrealized gains (losses) on Derivatives (cash flow hedges)	Accumulated Other Comprehensive (Loss) Income	Unrealized Losses on Available for Sale Debt Securities		Post-  Retirement Obligations	Unrealized Gains on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Loss
Balance at December 31,	$	(9,605)	(3,625)	894	(12,336)	(3,292)		(4,846)	673	(7,465)
Current period other comprehensive income (loss)	7,578		(12)	(314)	7,252	(9,639)		62	530	(9,047)
Reclassification of tax effects due to the adoption of ASU No. 2016-01	$	—	—	—	—	$	(184)	—	—	(184)
Balance at March 31,	$	(2,027)	(3,637)	580	(5,084)	(13,115)		(4,784)	1,203	(16,696)

Summary of Reclassifications Out of Accumulated Other Comprehensive Income

The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income for three months ended March 31, 2019 and 2018 (in thousands):

	Reclassifications From Accumulated Other Comprehensive Income ("AOCI")
	Amount reclassified from AOCI for the three months ended March 31,			Affected line item in the Consolidated Statement of Income
	2019		2018
Details of AOCI:
Post-retirement obligations:
Amortization of actuarial losses	$	47	100	Compensation and employee benefits (1)
	(13)		(26)	Income tax expense
Total reclassifications	$	34	74	Net of tax

⁽¹⁾ This item is included in the computation of net periodic benefit cost. See Note 5. Components of Net Periodic Benefit Cost.

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Financial Instruments

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition at March 31, 2019 and December 31, 2018 (in thousands):

	At March 31, 2019
	Asset Derivatives			Liability Derivatives
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	16,619	Other liabilities	17,959
Credit contracts	Other assets	301		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	16,920		17,959
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	798	Other liabilities	—
Total derivatives designated as a hedging instrument		$	798		—

	At December 31, 2018
	Asset Derivatives			Liability Derivatives
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	14,154	Other liabilities	14,766
Credit contracts	Other assets	251		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	14,405		14,766
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	1,229	Other liabilities	—
Total derivatives designated as a hedging instrument		$	1,229		—

Effect of the derivative financial instruments on the Income Statement

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three months ended March 31, 2019 and 2018 (in thousands).

		Gain (loss) recognized in income on derivatives for the three months ended
	Consolidated Statements of Income	March 31, 2019		March 31, 2018
Derivatives not designated as a hedging instrument:
Interest rate products	Other income	$	(673)	302
Credit contracts	Other income	(4)		—
Total derivatives not designated as a hedging instrument		$	(677)	302
Derivatives designated as a hedging instrument:
Interest rate products	Interest expense	$	162	6
Total derivatives designated as a hedging instrument		$	162	6

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Summary of Non-interest Income

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2019 and 2018 (in thousands):

	Three months ended March 31,
	2019		2018
Non-interest income
In-scope of Topic 606:
Wealth management fees	$	4,079	4,400
Banking service charges and other fees:
Service charges on deposit accounts	3,191		3,315
Debit card and ATM fees	1,307		1,402
Total banking service charges and other fees	4,498		4,717
Total in-scope non-interest income	8,577		9,117
Total out-of-scope non-interest income	3,611		4,190
Total non-interest income	$	12,188	13,307

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(Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Schedule of Lease Assets and Liabilities

The following table represents the consolidated statements of condition classification of the Company’s right-of use-assets and lease liabilities at March 31, 2019 (in thousands):

	Classification	March 31, 2019
Lease Right-of-Use Assets:
Operating lease right-of-use assets	Other assets	$	43,404
Lease Liabilities:
Operating lease liabilities	Other liabilities	$	44,452

Schedule of Lease Costs and Other Information

The following table represents lease costs and other lease information for the Company's operating leases.  The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):

(in-thousands)	Three months ended March 31, 2019
Lease Costs
Operating lease cost	$	2,050
Variable lease cost	760
Total Lease Cost	$	2,810

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,044
Operating lease - operating cash flows - reduction of lease liability	1,598

Schedule of Future Minimum Payments

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2019 were as follows:

(in-thousands)	Operating Leases
Twelve Months Ended:
March 31, 2020	$	7,875
March 31, 2021	7,302
March 31, 2022	5,055
March 31, 2023	4,738
Thereafter	28,440
Total Future Minimum Lease Payments	$	53,410
Amounts Representing Interest	8,958
Present Value of Net Future Minimum Lease Payments	$	44,452

At December 31, 2018, operating lease commitments under lessee arrangements were $8.0 million, $7.6 million, $5.4 million, $3.8 million and $3.4 million for 2019 through 2023, respectively, and $10.7 million in aggregate for all years thereafter.

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Summary of Significant Accounting Policies (Narrative) (Detail) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounting Policies [Abstract]
Anti-dilutive stock options and awards excluded from computation of earnings per share (in shares)	688,655	484,613

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Summary of Significant Accounting Policies (Earnings Per Share) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounting Policies [Abstract]
Net income	$ 30,890	$ 27,913
Basic earnings per share:
Income available to common stockholders, basic	$ 30,890	$ 27,913
Weighted average common shares outstanding, basic (in shares)	64,766,619	64,768,977
Income available to common stockholders, per share amount, basic (usd per share)	$ 0.48	$ 0.43
Diluted earnings per share:
Income available to common stockholders, diluted	$ 30,890	$ 27,913
Dilutive shares (in shares)	146,119	180,465
Weighted average common shares outstanding, diluted (in shares)	64,912,738	64,949,442
Income available to common stockholders, per share amount, diluted (usd per share)	$ 0.48	$ 0.43

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Investment Securities (Narrative) (Detail)	3 Months Ended
	Mar. 31, 2019 USD ($) security position	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($) security position
Schedule of Held-to-maturity Securities [Line Items]
Available for sale debt securities, at fair value	$ 1,083,601,000		$ 1,063,079,000
Securities held to maturity, at fair value	$ 472,039,000		$ 479,425,000
Total number of all held to maturity and available for sale securities in an unrealized loss position | security	260		509
Securities available for sale, amortized cost	$ 1,086,386,000		$ 1,076,282,000
Securities available for sale, number of securities in an unrealized loss position | position	130		175
Held to maturity securities, proceeds from calls	$ 9,300,000	$ 20,300,000
Held to maturity securities, recognized gain on calls	0	1,000
Held to maturity securities, recognized loss on calls	0	$ 0
Investment securities held to maturity, fair value	$ 479,827,000		$ 479,740,000
Number of securities in an unrealized loss position | security	130		334
Private Label Mortgage-Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities available for sale, amortized cost	$ 24,000
Securities available for sale, number of securities in an unrealized loss position | position	1
Unrealized losses	$ 2,000
Mortgage-Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Available for sale debt securities, at fair value	1,054,482,000		$ 1,034,969,000
Securities held to maturity, at fair value	170,000		187,000
Securities available for sale, amortized cost	1,057,405,000		1,048,415,000
Held-to-maturity securities, amortized cost	170,000
Investment securities held to maturity, fair value	$ 173,000		$ 190,000

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Investment Securities (Securities Available for Sale) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 1,086,386	$ 1,076,282
Gross unrealized gains	5,441	3,056
Gross unrealized losses	(8,226)	(16,259)
Fair value	1,083,601	1,063,079
Mortgage-Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized cost	1,057,405	1,048,415
Gross unrealized gains	5,205	2,704
Gross unrealized losses	(8,128)	(16,150)
Fair value	1,054,482	1,034,969
State And Municipal Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized cost	3,944	2,828
Gross unrealized gains	144	84
Gross unrealized losses	0	0
Fair value	4,088	2,912
Corporate Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized cost	25,037	25,039
Gross unrealized gains	92	268
Gross unrealized losses	(98)	(109)
Fair value	$ 25,031	$ 25,198

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Investment Securities (Available for Sale by Contractual Maturity) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 1,086,386	$ 1,076,282
Fair value	1,083,601	$ 1,063,079
Available-for-sale Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Due in one year or less, amortized cost	0
Due after one year through five years, amortized cost	3,005
Due after five years through ten years, amortized cost	25,976
Due after ten years, amortized cost	0
Amortized cost	28,981
Due in one year or less, fair value	0
Due after one year through five years, fair value	3,027
Due after five years through ten years, fair value	26,092
Due after ten years, fair value	0
Fair value	$ 29,119

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Investment Securities (Disclosure Regarding Length of Time on Securities Available for Sale with Temporary Impairment) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	$ 5,066	$ 226,072
Less than 12 months, gross unrealized losses	(1)	(2,282)
12 months or longer, fair value	596,594	545,880
12 months or longer, gross unrealized losses	(8,225)	(13,977)
Total, fair value	601,660	771,952
Total, gross unrealized losses	(8,226)	(16,259)
Mortgage-Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	5,066	218,175
Less than 12 months, gross unrealized losses	(1)	(2,173)
12 months or longer, fair value	591,692	545,880
12 months or longer, gross unrealized losses	(8,127)	(13,977)
Total, fair value	596,758	764,055
Total, gross unrealized losses	(8,128)	(16,150)
Corporate Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	0	7,897
Less than 12 months, gross unrealized losses	0	(109)
12 months or longer, fair value	4,902	0
12 months or longer, gross unrealized losses	(98)	0
Total, fair value	4,902	7,897
Total, gross unrealized losses	$ (98)	$ (109)

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Investment Securities (Held to Maturity) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 472,039	$ 479,425
Gross unrealized gains	8,873	4,334
Gross unrealized losses	(1,085)	(4,019)
Fair value	479,827	479,740
Agency Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	4,620	4,989
Gross unrealized gains	6	1
Gross unrealized losses	(56)	(94)
Fair value	4,570	4,896
Mortgage-Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	170	187
Gross unrealized gains	3	3
Gross unrealized losses	0	0
Fair value	173	190
State And Municipal Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	456,554	463,801
Gross unrealized gains	8,850	4,329
Gross unrealized losses	(957)	(3,767)
Fair value	464,447	464,363
Corporate Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	10,695	10,448
Gross unrealized gains	14	1
Gross unrealized losses	(72)	(158)
Fair value	$ 10,637	$ 10,291

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Investment Securities (Securities Held to Maturity by Contractual Maturity) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 472,039	$ 479,425
Fair value	479,827	$ 479,740
Held-to-maturity Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Due in one year or less, amortized cost	10,605
Due after one year through five years, amortized cost	89,791
Due after five years through ten years, amortized cost	263,184
Due after ten years, amortized cost	108,289
Amortized cost	471,869
Due in one year or less, fair value	10,620
Due after one year through five years, fair value	90,661
Due after five years through ten years, fair value	267,797
Due after ten years, fair value	110,576
Fair value	$ 479,654

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Investment Securities (Disclosure Regarding Length of Time on Investment Securities with Temporary Impairment) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	$ 16,140	$ 96,412
Less than 12 months, gross unrealized losses	(159)	(918)
12 months or longer, fair value	54,654	95,192
12 months or longer, gross unrealized losses	(926)	(3,101)
Total, fair value	70,794	191,604
Total, gross unrealized losses	(1,085)	(4,019)
Agency Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	3,652	0
Less than 12 months, gross unrealized losses	(56)	0
12 months or longer, fair value	0	4,525
12 months or longer, gross unrealized losses	0	(94)
Total, fair value	3,652	4,525
Total, gross unrealized losses	(56)	(94)
State And Municipal Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	4,357	96,412
Less than 12 months, gross unrealized losses	(31)	(918)
12 months or longer, fair value	54,654	81,663
12 months or longer, gross unrealized losses	(926)	(2,849)
Total, fair value	59,011	178,075
Total, gross unrealized losses	(957)	(3,767)
Corporate Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	8,131	0
Less than 12 months, gross unrealized losses	(72)	0
12 months or longer, fair value	0	9,004
12 months or longer, gross unrealized losses	0	(158)
Total, fair value	8,131	9,004
Total, gross unrealized losses	$ (72)	$ (158)

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Loans Receivable and Allowance for Loan Losses (Narrative) (Detail)	3 Months Ended		12 Months Ended
	Mar. 31, 2019 USD ($) borrower SecurityLoan troubled_debt_restructuring	Mar. 31, 2018 SecurityLoan	Mar. 31, 2019 USD ($) SecurityLoan	Dec. 31, 2018 USD ($) borrower SecurityLoan troubled_debt_restructuring	Mar. 31, 2018 SecurityLoan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of nonaccrual loans	$ 24,800,000		$ 24,800,000	$ 25,700,000
Loans less than 90 days past due	$ 10,600,000		$ 10,600,000	$ 11,100,000
Number of loans 90 days past due and still accruing | SecurityLoan	0		0	0
Impaired loan defined floor limit (greater than)	$ 1,000,000.0		$ 1,000,000.0
Impaired loans number | SecurityLoan	155			152
Impaired loans	$ 63,408,000		63,408,000	$ 50,684,000
Number of troubled debt restructurings | troubled_debt_restructuring	133			129
Number of borrowers | borrower	127			124
Loans and leases receivable, impaired, nonperforming, accrual of interest	$ 50,300,000		$ 50,300,000	$ 35,600,000
Charge off, impaired loan	$ 0
Weighted average modified interest rate	3.96%
Weighted average prior modification rate	3.96%
Number of payment defaults for loans modified as TDRs | SecurityLoan	3	3	3		3
Allowances for loan losses	$ 1,749,000		$ 1,749,000	1,165,000
Impaired financing receivable with no related allowance	37,400,000		37,400,000	31,100,000
Average balance of impaired loans	64,838,000			53,868,000
Team Capital Bank [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance of PCI loans	877,000		$ 877,000	$ 899,000
Impaired Loans Troubled Debt Restructurings [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Allowances for loan losses	$ 164,000

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Loans Receivable and Allowance for Loan Losses (Schedule of Summarized Loans Receivable) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	$ 7,226,980	$ 7,253,902
Purchased credit-impaired ("PCI") loans	877	899
Premiums on purchased loans	3,106	3,243
Unearned discounts	(33)	(33)
Net deferred fees	(7,086)	(7,423)
Total loans	7,223,844	7,250,588
Mortgage Portfolio Segment [Member]
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	5,107,464	5,127,453
Mortgage Portfolio Segment [Member] | Residential [Member]
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	1,087,184	1,099,464
Mortgage Portfolio Segment [Member] | Commercial [Member]
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	2,288,342	2,299,313
Mortgage Portfolio Segment [Member] | Multi-Family [Member]
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	1,357,038	1,339,677
Mortgage Portfolio Segment [Member] | Construction [Member]
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	374,900	388,999
Commercial Loans [Member]
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	1,698,146	1,695,021
Consumer Loans [Member]
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	$ 421,370	$ 431,428

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Loans Receivable and Allowance for Loan Losses (Summary of Aging Loans Receivable by Portfolio Segment and Class) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	$ 24,797	$ 25,690
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	57,993	51,273
Current	7,168,987	7,202,629
Total gross loans	7,226,980	7,253,902
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	29,233	5,851
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	3,963	19,732
Mortgage Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	8,325	9,033
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	19,616	18,778
Current	5,087,848	5,108,675
Total gross loans	5,107,464	5,127,453
Mortgage Portfolio Segment [Member] | Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	6,809	5,853
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	16,482	15,598
Current	1,070,702	1,083,866
Total gross loans	1,087,184	1,099,464
Mortgage Portfolio Segment [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	1,516	3,180
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	3,134	3,180
Current	2,285,208	2,296,133
Total gross loans	2,288,342	2,299,313
Mortgage Portfolio Segment [Member] | Multi-Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	0	0
Current	1,357,038	1,339,677
Total gross loans	1,357,038	1,339,677
Mortgage Portfolio Segment [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	0	0
Current	374,900	388,999
Total gross loans	374,900	388,999
Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	7,425	4,188
Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	6,132	4,188
Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	1,293	0
Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Multi-Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	0	0
Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	0	0
Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	3,866	5,557
Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	3,541	5,557
Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	325	0
Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Multi-Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	0	0
Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	0	0
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	14,785	15,391
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	35,144	29,381
Current	1,663,002	1,665,640
Total gross loans	1,698,146	1,695,021
Commercial Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	20,350	425
Commercial Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	9	13,565
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	1,687	1,266
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	3,233	3,114
Current	418,137	428,314
Total gross loans	421,370	431,428
Consumer Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	1,458	1,238
Consumer Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	$ 88	$ 610

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Loans Receivable and Allowance for Loan Losses (Summary of Loans Receivable by Portfolio Segment and Impairment Method) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 63,408	$ 50,684
Collectively evaluated for impairment	7,163,572	7,203,218
Total gross loans	7,226,980	7,253,902
Mortgage Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	36,651	24,680
Collectively evaluated for impairment	5,070,813	5,102,773
Total gross loans	5,107,464	5,127,453
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	24,544	23,747
Collectively evaluated for impairment	1,673,602	1,671,274
Total gross loans	1,698,146	1,695,021
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	2,213	2,257
Collectively evaluated for impairment	419,157	429,171
Total gross loans	$ 421,370	$ 431,428

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Loans Receivable and Allowance for Loan Losses (Summary of Allowance for Loan Losses by Portfolio Segment and Impairment Classification) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 1,749	$ 1,165
Collectively evaluated for impairment	53,604	54,397
Total	55,353	55,562	$ 62,521	$ 60,195
Mortgage Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	897	1,026
Collectively evaluated for impairment	26,029	26,652
Total	26,926	27,678	28,001	28,052
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	806	92
Collectively evaluated for impairment	25,545	25,601
Total	26,351	25,693	32,326	29,814
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	46	47
Collectively evaluated for impairment	2,030	2,144
Total	$ 2,076	$ 2,191	$ 2,194	$ 2,329

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Loans Receivable and Allowance for Loan Losses (Schedule of Troubled Debt Restructurings) (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) SecurityLoan security	Mar. 31, 2018 USD ($) SecurityLoan security
Financing Receivable, Recorded Investment [Line Items]
Number of Loans | SecurityLoan	5	5
Pre-Modification Outstanding Recorded  Investment	$ 16,023	$ 8,127
Post-Modification Outstanding Recorded Investment	$ 16,023	$ 6,626
Mortgage Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Loans | SecurityLoan	1	0
Pre-Modification Outstanding Recorded  Investment	$ 14,010	$ 0
Post-Modification Outstanding Recorded Investment	$ 14,010	$ 0
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Loans | security	4	5
Pre-Modification Outstanding Recorded  Investment	$ 2,013	$ 8,127
Post-Modification Outstanding Recorded Investment	$ 2,013	$ 6,626
Commercial [Member] | Mortgage Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Loans | SecurityLoan	1	0
Pre-Modification Outstanding Recorded  Investment	$ 14,010	$ 0
Post-Modification Outstanding Recorded Investment	$ 14,010	$ 0

XML

Loans Receivable and Allowance for Loan Losses (Schedule of Trouble Debt Restructuring Subsequently Defaulted) (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019 USD ($) SecurityLoan	Mar. 31, 2018 USD ($) SecurityLoan	Mar. 31, 2019 SecurityLoan	Mar. 31, 2018 SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	3	3	3	3
Outstanding Recorded Investment | $	$ 540	$ 428
Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	3	3
Outstanding Recorded Investment | $	$ 540	$ 428

XML

Loans Receivable and Allowance for Loan Losses (Schedule of Allowance for Loan Losses by Portfolio Segment) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	$ 55,562	$ 60,195
Provision (credited) charged to operations	200	5,400
Recoveries of loans previously charged-off	412	395
Loans charged-off	(821)	(3,469)
Balance at end of period	55,353	62,521
Mortgage Portfolio Segment [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	27,678	28,052
Provision (credited) charged to operations	(982)	(22)
Recoveries of loans previously charged-off	230	88
Loans charged-off	0	(117)
Balance at end of period	26,926	28,001
Commercial Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	25,693	29,814
Provision (credited) charged to operations	1,282	5,390
Recoveries of loans previously charged-off	52	127
Loans charged-off	(676)	(3,005)
Balance at end of period	26,351	32,326
Consumer Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	2,191	2,329
Provision (credited) charged to operations	(100)	32
Recoveries of loans previously charged-off	130	180
Loans charged-off	(145)	(347)
Balance at end of period	$ 2,076	$ 2,194

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Loans Receivable and Allowance for Loan Losses (Summary of Impaired Loans Receivable by Class) (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	$ 44,634	$ 40,180
Loans with no related allowance, Recorded Investment	37,355	31,118
Loans with no related allowance, Average Recorded Investment	37,692	32,156
Loans with no related allowance, Interest Income Recognized	305	1,012
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	28,533	20,059
Loans with an allowance recorded, Recorded Investment	26,053	19,566
Loans with an allowance recorded, Average Recorded Investment	27,146	21,712
Loans with an allowance recorded, Interest Income Recognized	370	953
Total impaired loans
Unpaid Principal Balance	73,167	60,239
Recorded Investment	63,408	50,684
Related Allowance	1,749	1,165
Average Recorded Investment	64,838	53,868
Interest Income Recognized	675	1,965
Mortgage Portfolio Segment [Member]
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	30,104	16,563
Loans with no related allowance, Recorded Investment	27,020	13,551
Loans with no related allowance, Average Recorded Investment	27,065	13,687
Loans with no related allowance, Interest Income Recognized	170	594
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	10,051	11,612
Loans with an allowance recorded, Recorded Investment	9,631	11,129
Loans with an allowance recorded, Average Recorded Investment	9,658	11,238
Loans with an allowance recorded, Interest Income Recognized	102	478
Total impaired loans
Unpaid Principal Balance	40,155	28,175
Recorded Investment	36,651	24,680
Related Allowance	897	1,026
Average Recorded Investment	36,723	24,925
Interest Income Recognized	272	1,072
Mortgage Portfolio Segment [Member] | Residential [Member]
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	16,094	15,013
Loans with no related allowance, Recorded Investment	13,010	12,005
Loans with no related allowance, Average Recorded Investment	13,055	12,141
Loans with no related allowance, Interest Income Recognized	170	594
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	9,018	10,573
Loans with an allowance recorded, Recorded Investment	8,598	10,090
Loans with an allowance recorded, Average Recorded Investment	8,621	10,186
Loans with an allowance recorded, Interest Income Recognized	89	425
Total impaired loans
Unpaid Principal Balance	25,112	25,586
Recorded Investment	21,608	22,095
Related Allowance	828	954
Average Recorded Investment	21,676	22,327
Interest Income Recognized	259	1,019
Mortgage Portfolio Segment [Member] | Commercial [Member]
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	14,010	1,550
Loans with no related allowance, Recorded Investment	14,010	1,546
Loans with no related allowance, Average Recorded Investment	14,010	1,546
Loans with no related allowance, Interest Income Recognized	0	0
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	1,033	1,039
Loans with an allowance recorded, Recorded Investment	1,033	1,039
Loans with an allowance recorded, Average Recorded Investment	1,037	1,052
Loans with an allowance recorded, Interest Income Recognized	13	53
Total impaired loans
Unpaid Principal Balance	15,043	2,589
Recorded Investment	15,043	2,585
Related Allowance	69	72
Average Recorded Investment	15,047	2,598
Interest Income Recognized	13	53
Commercial Loans [Member]
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	12,690	21,746
Loans with no related allowance, Recorded Investment	9,054	16,254
Loans with no related allowance, Average Recorded Investment	9,330	17,083
Loans with no related allowance, Interest Income Recognized	115	328
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	17,539	7,493
Loans with an allowance recorded, Recorded Investment	15,490	7,493
Loans with an allowance recorded, Average Recorded Investment	16,550	9,512
Loans with an allowance recorded, Interest Income Recognized	255	435
Total impaired loans
Unpaid Principal Balance	30,229	29,239
Recorded Investment	24,544	23,747
Related Allowance	806	92
Average Recorded Investment	25,880	26,595
Interest Income Recognized	370	763
Consumer Loans [Member]
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	1,840	1,871
Loans with no related allowance, Recorded Investment	1,281	1,313
Loans with no related allowance, Average Recorded Investment	1,297	1,386
Loans with no related allowance, Interest Income Recognized	20	90
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	943	954
Loans with an allowance recorded, Recorded Investment	932	944
Loans with an allowance recorded, Average Recorded Investment	938	962
Loans with an allowance recorded, Interest Income Recognized	13	40
Total impaired loans
Unpaid Principal Balance	2,783	2,825
Recorded Investment	2,213	2,257
Related Allowance	46	47
Average Recorded Investment	2,235	2,348
Interest Income Recognized	$ 33	$ 130

XML

Loans Receivable and Allowance for Loan Losses (Summary of Loans Receivable by Credit Quality Risk Rating Indicator) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	$ 7,226,980	$ 7,253,902
Total classified and criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	183,965	162,966
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	83,146	87,801
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	100,617	74,242
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	202	923
Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Pass/Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	7,043,015	7,090,936
Mortgage Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	5,107,464	5,127,453
Mortgage Portfolio Segment [Member] | Total classified and criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	58,980	47,146
Mortgage Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	28,577	19,795
Mortgage Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	30,403	27,351
Mortgage Portfolio Segment [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Pass/Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	5,048,484	5,080,307
Mortgage Portfolio Segment [Member] | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	1,087,184	1,099,464
Mortgage Portfolio Segment [Member] | Residential [Member] | Total classified and criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	11,710	12,949
Mortgage Portfolio Segment [Member] | Residential [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	3,059	5,071
Mortgage Portfolio Segment [Member] | Residential [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	8,651	7,878
Mortgage Portfolio Segment [Member] | Residential [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Residential [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Residential [Member] | Pass/Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	1,075,474	1,086,515
Mortgage Portfolio Segment [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	2,288,342	2,299,313
Mortgage Portfolio Segment [Member] | Commercial [Member] | Total classified and criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	41,089	27,788
Mortgage Portfolio Segment [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	25,518	14,496
Mortgage Portfolio Segment [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	15,571	13,292
Mortgage Portfolio Segment [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Commercial [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Commercial [Member] | Pass/Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	2,247,253	2,271,525
Mortgage Portfolio Segment [Member] | Multi-Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	1,357,038	1,339,677
Mortgage Portfolio Segment [Member] | Multi-Family [Member] | Total classified and criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	228
Mortgage Portfolio Segment [Member] | Multi-Family [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	228
Mortgage Portfolio Segment [Member] | Multi-Family [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Multi-Family [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Multi-Family [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Multi-Family [Member] | Pass/Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	1,357,038	1,339,449
Mortgage Portfolio Segment [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	374,900	388,999
Mortgage Portfolio Segment [Member] | Construction [Member] | Total classified and criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	6,181	6,181
Mortgage Portfolio Segment [Member] | Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	6,181	6,181
Mortgage Portfolio Segment [Member] | Construction [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Construction [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Mortgage Portfolio Segment [Member] | Construction [Member] | Pass/Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	368,719	382,818
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	1,698,146	1,695,021
Commercial Loans [Member] | Total classified and criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	122,819	113,499
Commercial Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	54,481	67,396
Commercial Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	68,136	45,180
Commercial Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	202	923
Commercial Loans [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Commercial Loans [Member] | Pass/Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	1,575,327	1,581,522
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	421,370	431,428
Consumer Loans [Member] | Total classified and criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	2,166	2,321
Consumer Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	88	610
Consumer Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	2,078	1,711
Consumer Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Consumer Loans [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	0	0
Consumer Loans [Member] | Pass/Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	$ 419,204	$ 429,107

XML

Deposits (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Banking and Thrift [Abstract]
Savings	$ 1,051,904	$ 1,051,922
Money market	1,592,468	1,496,310
NOW	2,019,822	2,049,645
Non-interest bearing	1,434,660	1,481,753
Certificates of deposit	804,602	750,492
Total deposits	$ 6,903,456	$ 6,830,122

XML

Components of Net Periodic Benefit Cost (Narrative) (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2006	Dec. 31, 2002
Retirement Benefits [Abstract]
Service period for employees of coverage age, years (at least)	1 year
Defined benefit plan, percentage vested	100.00%
Retiree benefits eliminated if less than service period, years (less than)		10 years	10 years
Defined benefit plan, contributions by employer	$ 0

XML

Components of Net Periodic Benefit Cost (Benefit Cost (Increase)) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Pension benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	$ 0	$ 0
Interest cost	300	274
Expected return on plan assets	(641)	(693)
Amortization of prior service cost	0	0
Amortization of the net loss (gain)	254	199
Net periodic (increase) benefit cost	(87)	(220)
Other post-retirement benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	20	29
Interest cost	210	197
Expected return on plan assets	0	0
Amortization of prior service cost	0	0
Amortization of the net loss (gain)	(207)	(99)
Net periodic (increase) benefit cost	$ 23	$ 127

XML

Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating lease right-of-use assets	$ 43,404
Operating lease liabilities	$ 44,452
Accounting Standards Update 2016-02 [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating lease right-of-use assets		$ 44,900
Operating lease liabilities		$ 46,100

XML

Fair Value Measurements (Narrative) (Detail) $ in Millions	Mar. 31, 2019 USD ($) security	Dec. 31, 2018 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted Cash | $	$ 36.4	$ 35.0
Valuation, Market Approach [Member] | Measurement Input, Cost to Sell [Member] | Minimum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans, measurement input	0.05
Foreclosed assets, measurement input	0.05
Valuation, Market Approach [Member] | Measurement Input, Cost to Sell [Member] | Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans, measurement input	0.10
Foreclosed assets, measurement input	0.10

XML

Fair Value Measurements (Assets and Liabilities) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	$ 1,083,601	$ 1,063,079
Equity securities	724	635
Derivative liabilities	11,800
Measured on a non-recurring basis:
Foreclosed assets	1,264	1,565
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Equity securities	724	635
Derivative assets	0	0
Derivative liabilities	0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	1,083,601	1,063,079
Equity securities	0	0
Derivative assets	17,718	15,634
Derivative liabilities	17,959	14,766
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Equity securities	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Mortgage-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	1,054,482	1,034,969
Mortgage-Backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Mortgage-Backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	1,054,482	1,034,969
Mortgage-Backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
State And Municipal Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	4,088	2,912
State And Municipal Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
State And Municipal Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	4,088	2,912
State And Municipal Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Corporate Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	25,031	25,198
Corporate Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Corporate Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	25,031	25,198
Corporate Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Measured on a Recurring Basis [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	1,083,601	1,063,079
Equity securities	724	635
Derivative assets	17,718	15,634
Total assets at fair value	1,102,043	1,079,348
Derivative liabilities	17,959	14,766
Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Equity securities	724	635
Derivative assets	0	0
Total assets at fair value	724	635
Derivative liabilities	0	0
Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	1,083,601	1,063,079
Equity securities	0	0
Derivative assets	17,718	15,634
Total assets at fair value	1,101,319	1,078,713
Derivative liabilities	17,959	14,766
Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Equity securities	0	0
Derivative assets	0	0
Total assets at fair value	0	0
Derivative liabilities	0	0
Measured on a Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	1,054,482	1,034,969
Measured on a Recurring Basis [Member] | Mortgage-Backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Measured on a Recurring Basis [Member] | Mortgage-Backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	1,054,482	1,034,969
Measured on a Recurring Basis [Member] | Mortgage-Backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Measured on a Recurring Basis [Member] | State And Municipal Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	4,088	2,912
Measured on a Recurring Basis [Member] | State And Municipal Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Measured on a Recurring Basis [Member] | State And Municipal Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	4,088	2,912
Measured on a Recurring Basis [Member] | State And Municipal Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Measured on a Recurring Basis [Member] | Corporate Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	25,031	25,198
Measured on a Recurring Basis [Member] | Corporate Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Measured on a Recurring Basis [Member] | Corporate Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	25,031	25,198
Measured on a Recurring Basis [Member] | Corporate Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities, at fair value	0	0
Measured on a Non-Recurring Basis [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets at fair value	11,132	5,850
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	9,868	4,285
Foreclosed assets	1,264	1,565
Measured on a Non-Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets at fair value	0	0
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	0	0
Foreclosed assets	0	0
Measured on a Non-Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets at fair value	0	0
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	0	0
Foreclosed assets	0	0
Measured on a Non-Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets at fair value	11,132	5,850
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	9,868	4,285
Foreclosed assets	$ 1,264	$ 1,565

XML

Fair Value Measurements (Financial Instruments) (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financial assets:
Cash and cash equivalents	$ 197,854	$ 142,661
Available for sale debt securities, at fair value	1,083,601	1,063,079
Investment securities held to maturity, fair value	479,827	479,740
FHLBNY stock	68,634	68,813
Equity securities, at fair value	724	635
Loans, net of allowance for loan losses	7,168,491	7,195,026
Financial liabilities:
Certificates of deposit	804,602	750,492
Total deposits	6,903,456	6,830,122
Borrowings	1,398,490	1,442,282
Derivative liabilities	11,800
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Cash and cash equivalents	141,658	142,661
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	4,570	4,896
FHLBNY stock	68,634	68,813
Equity securities, at fair value	724	635
Loans, net of allowance for loan losses	0	0
Derivative assets	0	0
Financial liabilities:
Deposits other than certificates of deposits	6,098,854	6,079,630
Certificates of deposit	0	0
Total deposits	6,098,854	6,079,630
Borrowings	0	0
Derivative liabilities	0	0
Significant Other Observable Inputs (Level 2) [Member]
Financial assets:
Cash and cash equivalents	0	0
Available for sale debt securities, at fair value	1,083,601	1,063,079
Investment securities held to maturity, fair value	475,257	474,844
FHLBNY stock	0	0
Equity securities, at fair value	0	0
Loans, net of allowance for loan losses	0	0
Derivative assets	17,718	15,634
Financial liabilities:
Deposits other than certificates of deposits	0	0
Certificates of deposit	801,845	746,753
Total deposits	801,845	746,753
Borrowings	1,393,046	1,431,001
Derivative liabilities	17,959	14,766
Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Cash and cash equivalents	0	0
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
FHLBNY stock	0	0
Equity securities, at fair value	0	0
Loans, net of allowance for loan losses	7,122,478	7,104,380
Derivative assets	0	0
Financial liabilities:
Deposits other than certificates of deposits	0	0
Certificates of deposit	0	0
Total deposits	0	0
Borrowings	0	0
Derivative liabilities	0	0
Carrying Value [Member]
Financial assets:
Cash and cash equivalents	141,658	142,661
Available for sale debt securities, at fair value	1,083,601	1,063,079
Investment securities held to maturity, fair value	472,039	479,425
FHLBNY stock	68,634	68,813
Equity securities, at fair value	724	635
Loans, net of allowance for loan losses	7,168,491	7,195,026
Derivative assets	17,718	15,634
Financial liabilities:
Deposits other than certificates of deposits	6,098,854	6,079,630
Certificates of deposit	804,602	750,492
Total deposits	6,903,456	6,830,122
Borrowings	1,398,490	1,442,282
Derivative liabilities	17,959	14,766
Fair Value [Member]
Financial assets:
Cash and cash equivalents	141,658	142,661
Available for sale debt securities, at fair value	1,083,601	1,063,079
Investment securities held to maturity, fair value	479,827	479,740
FHLBNY stock	68,634	68,813
Equity securities, at fair value	724	635
Loans, net of allowance for loan losses	7,122,478	7,104,380
Derivative assets	17,718	15,634
Financial liabilities:
Deposits other than certificates of deposits	6,098,854	6,079,630
Certificates of deposit	801,845	746,753
Total deposits	6,900,699	6,826,383
Borrowings	1,393,046	1,431,001
Derivative liabilities	17,959	14,766
Agency Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Available for sale debt securities, at fair value		0
Investment securities held to maturity, fair value	4,570	4,896
Agency Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial assets:
Available for sale debt securities, at fair value		0
Investment securities held to maturity, fair value	0	0
Agency Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Available for sale debt securities, at fair value		0
Investment securities held to maturity, fair value	0	0
Agency Obligations [Member] | Carrying Value [Member]
Financial assets:
Available for sale debt securities, at fair value		0
Investment securities held to maturity, fair value	4,620	4,989
Agency Obligations [Member] | Fair Value [Member]
Financial assets:
Available for sale debt securities, at fair value		0
Investment securities held to maturity, fair value	4,570	4,896
Mortgage-Backed Securities [Member]
Financial assets:
Available for sale debt securities, at fair value	1,054,482	1,034,969
Investment securities held to maturity, fair value	173	190
Mortgage-Backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Mortgage-Backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial assets:
Available for sale debt securities, at fair value	1,054,482	1,034,969
Investment securities held to maturity, fair value	173	190
Mortgage-Backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Mortgage-Backed Securities [Member] | Carrying Value [Member]
Financial assets:
Available for sale debt securities, at fair value	1,054,482	1,034,969
Investment securities held to maturity, fair value	170	187
Mortgage-Backed Securities [Member] | Fair Value [Member]
Financial assets:
Available for sale debt securities, at fair value	1,054,482	1,034,969
Investment securities held to maturity, fair value	173	190
State And Municipal Obligations [Member]
Financial assets:
Available for sale debt securities, at fair value	4,088	2,912
Investment securities held to maturity, fair value	464,447	464,363
State And Municipal Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
State And Municipal Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial assets:
Available for sale debt securities, at fair value	4,088	2,912
Investment securities held to maturity, fair value	464,447	464,363
State And Municipal Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
State And Municipal Obligations [Member] | Carrying Value [Member]
Financial assets:
Available for sale debt securities, at fair value	4,088	2,912
Investment securities held to maturity, fair value	456,554	463,801
State And Municipal Obligations [Member] | Fair Value [Member]
Financial assets:
Available for sale debt securities, at fair value	4,088	2,912
Investment securities held to maturity, fair value	464,447	464,363
Corporate Obligations [Member]
Financial assets:
Available for sale debt securities, at fair value	25,031	25,198
Investment securities held to maturity, fair value	10,637	10,291
Corporate Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Corporate Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial assets:
Available for sale debt securities, at fair value	25,031	25,198
Investment securities held to maturity, fair value	10,637	10,291
Corporate Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Corporate Obligations [Member] | Carrying Value [Member]
Financial assets:
Available for sale debt securities, at fair value	25,031	25,198
Investment securities held to maturity, fair value	10,695	10,448
Corporate Obligations [Member] | Fair Value [Member]
Financial assets:
Available for sale debt securities, at fair value	25,031	25,198
Investment securities held to maturity, fair value	$ 10,637	$ 10,291

XML

Other Comprehensive Income (Loss) (Components of OCI) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Unrealized gains and losses on available for sale debt securities:
Net unrealized gains (losses) arising during the period	$ 10,417	$ (13,093)
Reclassification adjustment for gains included in net income	0	0
Total	10,417	(13,093)
Unrealized (losses) gains on Derivatives (cash flow hedges)	(432)	720
Amortization related to post-retirement obligations	(16)	84
Total other comprehensive income (loss)	9,969	(12,289)
Unrealized gains and losses on available for sale debt securities:
Net unrealized gains (losses) arising during the period	(2,839)	3,454
Reclassification adjustment for gains included in net income	0	0
Total	(2,839)	3,454
Unrealized (losses) gains on Derivatives (cash flow hedges)	118	(190)
Amortization related to post-retirement obligations	4	(22)
Total other comprehensive income (loss)	(2,717)	3,242
Unrealized gains and losses on available for sale debt securities:
Net unrealized gains (losses) arising during the period	7,578	(9,639)
Reclassification adjustment for gains included in net income	0	0
Total	7,578	(9,639)
Unrealized (losses) gains on Derivatives (cash flow hedges)	(314)	530
Amortization related to post-retirement obligations	(12)	62
Total other comprehensive income (loss)	$ 7,252	$ (9,047)

XML

Other Comprehensive Income (Loss) (Components of AOCI) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,358,980	$ 1,298,661
Current period other comprehensive income (loss)	7,252	(9,047)
Reclassification of unrealized gains on equity securities due to the adoption of ASU No. 2016-01	4,350	0
Ending Balance	1,373,816	1,304,886
Unrealized gains (losses) on available for sale debt securities [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(9,605)	(3,292)
Current period other comprehensive income (loss)	7,578	(9,639)
Reclassification of unrealized gains on equity securities due to the adoption of ASU No. 2016-01	0	(184)
Ending Balance	(2,027)	(13,115)
Post-retirement obligations [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(3,625)	(4,846)
Current period other comprehensive income (loss)	(12)	62
Reclassification of unrealized gains on equity securities due to the adoption of ASU No. 2016-01	0	0
Ending Balance	(3,637)	(4,784)
Unrealized gains (losses) on derivatives (cash flow hedges) [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	894	673
Current period other comprehensive income (loss)	(314)	530
Reclassification of unrealized gains on equity securities due to the adoption of ASU No. 2016-01	0	0
Ending Balance	580	1,203
Accumulated Other Comprehensive Income (Loss) [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(12,336)	(7,465)
Current period other comprehensive income (loss)	7,252	(9,047)
Reclassification of unrealized gains on equity securities due to the adoption of ASU No. 2016-01	0	(184)
Ending Balance	$ (5,084)	$ (16,696)

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Other Comprehensive Income (Loss) (Reclassifications Out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Compensation and employee benefits	$ 28,369	$ 27,869
Income tax expense	(7,689)	(6,361)
Net income	30,890	27,913
Reclassification adjustment [Member] | Post-retirement obligations [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Compensation and employee benefits	47	100
Income tax expense	(13)	(26)
Net income	$ 34	$ 74

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Derivatives and Hedging Activities (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) instrument counterparty	Dec. 31, 2018 USD ($) instrument
Derivative [Line Items]
Derivative instruments in accumulated other comprehensive income reclassified to interest expense	$ 520
Derivative liability, notional amount	$ 60,000
Number of counterparties | counterparty	4
Counterparty in liability position | counterparty	3
Derivative liabilities	$ 11,800
Collateral against obligations	13,400
Derivatives Not Designated as a Hedging Instruments [Member]
Derivative [Line Items]
Credit derivatives, fair value	$ 301	$ 251
Derivatives Not Designated as a Hedging Instruments [Member] | Interest rate products [Member]
Derivative [Line Items]
Number of derivative instruments held (in instrument) | instrument	66	62
Derivative notional amount	$ 1,020,000	$ 1,010,000
Derivatives Not Designated as a Hedging Instruments [Member] | Credit contracts [Member]
Derivative [Line Items]
Number of derivative instruments held (in instrument) | instrument	12	7
Derivative notional amount	$ 87,600	$ 66,800
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Number of outstanding derivatives | instrument	2

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Derivatives and Hedging Activities (Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivatives Not Designated as a Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 16,920	$ 14,405
Liability Derivatives	17,959	14,766
Derivatives Not Designated as a Hedging Instruments [Member] | Other Assets [Member] | Interest rate products [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives	16,619	14,154
Derivatives Not Designated as a Hedging Instruments [Member] | Other Assets [Member] | Credit contracts [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives	301	251
Derivatives Not Designated as a Hedging Instruments [Member] | Other Liabilities [Member] | Interest rate products [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives	17,959	14,766
Derivatives Not Designated as a Hedging Instruments [Member] | Other Liabilities [Member] | Credit contracts [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives	0	0
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives	798	1,229
Liability Derivatives	0	0
Designated as Hedging Instrument [Member] | Other Assets [Member] | Interest rate products [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives	798	1,229
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest rate products [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 0	$ 0

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Derivatives and Hedging Activities (Gains and Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivatives Not Designated as a Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives for the three months ended	$ (677)	$ 302
Derivatives Not Designated as a Hedging Instruments [Member] | Interest rate products [Member] | Other income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives for the three months ended	(673)	302
Derivatives Not Designated as a Hedging Instruments [Member] | Credit contracts [Member] | Other income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives for the three months ended	(4)	0
Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives for the three months ended	162	6
Designated as Hedging Instrument [Member] | Interest rate products [Member] | Interest expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives for the three months ended	$ 162	$ 6

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Revenue Recognition (Summary of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Percentage of total revenue excluded from adoption of 606	88.00%	87.00%
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 8,577	$ 9,117
Total out-of-scope non-interest income	3,611	4,190
Total non-interest income	12,188	13,307
Wealth Management Fees [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	4,079	4,400
Banking service charges and other fees [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	4,498	4,717
Service charges on deposit accounts [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	3,191	3,315
Debit card and ATM fees [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 1,307	$ 1,402

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(Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 43,404
Operating lease liabilities	$ 44,452
Sale leaseback transaction, deferred gain			$ 5,900
Weighted average remaining lease term	9 years 10 months 24 days
Weighted average discount rate	3.50%
Due in 2019			8,000
Due to 2020			7,600
Due in 2021			5,400
Due in 2022			3,800
Due in 2023			3,400
Due after 2023			$ 10,700
Accounting Standards Update 2016-02 [Member]
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets		$ 44,900
Operating lease liabilities		$ 46,100

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Lease Assets and Liabilities (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating lease right-of-use assets	$ 43,404
Operating lease liabilities	$ 44,452

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Lease Costs and Other Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 2,050
Variable lease cost	760
Total Lease Cost	2,810
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,044
Operating lease - operating cash flows - reduction of lease liability	$ 1,598

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Future Minimum Payments (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
March 31, 2020	$ 7,875
March 31, 2021	7,302
March 31, 2022	5,055
March 31, 2023	4,738
Thereafter	28,440
Total Future Minimum Lease Payments	53,410
Amounts Representing Interest	8,958
Present Value of Net Future Minimum Lease Payments	$ 44,452