10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

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)	(City)	(State)	(Zip Code)

(732) 590-9200

(Registrant’s Telephone Number, Including Area Code)

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

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	☒	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 3, 2021 there were 83,209,012 shares issued and 77,966,795 shares outstanding of the Registrant’s Common Stock, par value $0.01 per share, including 161,705 shares held by the First Savings Bank Directors’ Deferred Fee Plan not otherwise considered outstanding under U.S. generally accepted accounting principles.

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, 2021 (unaudited) and December 31, 2020	3
	Consolidated Statements of Income for the three months ended March 31, 2021 and 2020 (unaudited)	4
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2021 and 2020 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2021 and 2020 (unaudited)	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)	8
	Notes to Unaudited Consolidated Financial Statements	10
2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
3	Quantitative and Qualitative Disclosures About Market Risk	49
4	Controls and Procedures	51
PART II—OTHER INFORMATION
1	Legal Proceedings	52
1A.	Risk Factors	52
2	Unregistered Sales of Equity Securities and Use of Proceeds	52
3	Defaults Upon Senior Securities	52
4	Mine Safety Disclosures	52
5	Other Information	52
6	Exhibits	53
Signatures		54

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PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

March 31, 2021 (Unaudited) and December 31, 2020

(Dollars in Thousands)

	March 31, 2021		December 31, 2020
ASSETS
Cash and due from banks	$	559,235	$	404,355
Short-term investments	128,335		127,998
Total cash and cash equivalents	687,570		532,353
Available for sale debt securities, at fair value	1,216,936		1,105,489
Held to maturity debt securities, net (fair value of $463,993 at March 31, 2021 (unaudited) and $472,529 at December 31, 2020)	447,902		450,965
Equity securities, at fair value	1,026		971
Federal Home Loan Bank stock	48,998		59,489
Loans	9,803,536		9,822,890
Less allowance for credit losses	85,591		101,466
Net loans	9,717,945		9,721,424
Foreclosed assets, net	3,554		4,475
Banking premises and equipment, net	75,344		75,946
Accrued interest receivable	43,883		46,450
Intangible assets	465,335		466,212
Bank-owned life insurance	235,112		234,607
Other assets	186,840		221,360
Total assets	$	13,130,445	$	12,919,741
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand deposits	$	7,932,146	$	7,395,508
Savings deposits	1,402,363		1,348,147
Certificates of deposit of $100,000 or more	604,732		717,216
Other time deposits	358,272		376,958
Total deposits	10,297,513		9,837,829
Mortgage escrow deposits	37,772		34,298
Borrowed funds	940,611		1,175,972
Subordinated debentures	25,173		25,135
Other liabilities	182,145		226,710
Total liabilities	11,483,214		11,299,944
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, 83,209,012 shares issued and 77,798,624 shares outstanding at March 31, 2021 and 77,611,107 outstanding at December 31, 2020	832		832
Additional paid-in capital	963,556		962,453
Retained earnings	748,574		718,090
Accumulated other comprehensive income	12,977		17,655
Treasury stock	(59,261)		(59,018)
Unallocated common stock held by the Employee Stock Ownership Plan	(19,447)		(20,215)
Common stock acquired by deferred compensation plans	(4,381)		(4,549)
Deferred compensation plans	4,381		4,549
Total stockholders’ equity	1,647,231		1,619,797
Total liabilities and stockholders’ equity	$	13,130,445	$	12,919,741

See accompanying notes to unaudited consolidated financial statements.

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PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three months ended March 31, 2021 and 2020 (Unaudited)

(Dollars in Thousands, except per share data)

	Three months ended March 31,
	2021		2020
Interest income:
Real estate secured loans	$	62,016	$	54,441
Commercial loans	26,143		18,672
Consumer loans	3,492		4,172
Available for sale debt securities, equity securities and Federal Home Loan Bank stock	5,612		7,069
Held to maturity debt securities	2,784		2,940
Deposits, Federal funds sold and other short-term investments	484		875
Total interest income	100,531		88,169
Interest expense:
Deposits	7,417		10,958
Borrowed funds	2,809		5,190
Subordinated debt	305		—
Total interest expense	10,531		16,148
Net interest income	90,000		72,021
Provision (benefit) charge for credit losses	(15,001)		14,717
Net interest income after provision for credit losses	105,001		57,304
Non-interest income:
Fees	7,192		6,529
Wealth management income	7,134		6,251
Insurance agency income	2,727		—
Bank-owned life insurance	2,567		787
Net gains on securities transactions	197		11
Other income	1,820		3,413
Total non-interest income	21,637		16,991
Non-interest expense:
Compensation and employee benefits	35,312		31,195
Net occupancy expense	9,301		6,203
Data processing expense	4,393		4,430
FDIC insurance	1,770		—
Amortization of intangibles	972		744
Advertising and promotion expense	877		1,369
Credit loss (benefit) expense for off-balance sheet credit exposures	(875)		1,000
Other operating expenses	10,103		9,166
Total non-interest expense	61,853		54,107
Income before income tax expense	64,785		20,188
Income tax expense	16,226		5,257
Net income	$	48,559	$	14,931
Basic earnings per share	$	0.63	$	0.23
Weighted average basic shares outstanding	76,516,543		64,386,138
Diluted earnings per share	$	0.63	$	0.23
Weighted average diluted shares outstanding	76,580,862		64,457,263

See accompanying notes to unaudited consolidated financial statements.

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PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

Three months ended March 31, 2021 and 2020 (Unaudited)

(Dollars in Thousands)

	Three months ended March 31,
	2021		2020
Net income	$	48,559	$	14,931
Other comprehensive income, net of tax:
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	(9,019)		16,746
Reclassification adjustment for gains included in net income	(171)		—
Total	(9,190)		16,746
Unrealized gains (losses) on derivatives	4,621		(5,713)
Amortization related to post-retirement obligations	(109)		84
Total other comprehensive (loss) income	(4,678)		11,117
Total comprehensive income	$	43,881	$	26,048

See accompanying notes to unaudited consolidated financial statements.

5

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended March 31, 2020 (Unaudited)

(Dollars in Thousands)

For the three months ended March 31, 2020	COMMON STOCK		ADDITIONAL PAID-IN CAPITAL		RETAINED EARNINGS		ACCUMULATED OTHER COMPREHENSIVE INCOME		TREASURYSTOCK		UNALLOCATED ESOP SHARES		COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS		DEFERRED COMPENSATION PLANS		TOTAL STOCKHOLDERS’ EQUITY
Balance at December 31, 2019	$	832	$	1,007,303	$	695,273	$	3,821	$	(268,504)	$	(24,885)	$	(3,833)	$	3,833	$	1,413,840
Net income	—		—		14,931		—		—		—		—		—		14,931
Other comprehensive income, net of tax	—		—				11,117		—		—		—		—		11,117
Cash dividends paid	—		—		(15,496)		—		—		—		—		—		(15,496)
Distributions from DDFP	—		37		—		—		—		—		167		(167)		37
Purchases of treasury stock	—		—		—		—		(4,985)		—		—		—		(4,985)
Purchase of employee restricted shares to fund statutory tax withholding	—				—		—		(956)		—		—		—		(956)
Shares issued dividend reinvestment plan	—		50		—		—		401		—		—		—		451
Allocation of ESOP shares	—		152		—		—		—		769		—		—		921
Allocation of Stock Award Plan ("SAP") shares	—		993		—		—		—		—		—		—		993
Allocation of stock options	—		47		—		—		—		—		—		—		47
Balance at March 31, 2020	$	832	$	1,008,582	$	686,397	$	14,938	$	(274,044)	$	(24,116)	$	(3,666)	$	3,666	$	1,412,589

See accompanying notes to unaudited consolidated financial statements.

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PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended March 31, 2021 (Unaudited)

(Dollars in Thousands)

For the three months ended March 31, 2021	COMMON STOCK		ADDITIONAL PAID-IN CAPITAL		RETAINED EARNINGS		ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)		TREASURY STOCK		UNALLOCATED ESOP SHARES		COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS		DEFERRED COMPENSATION PLANS		TOTAL STOCKHOLDERS’ EQUITY
Balance at December 31, 2020	832		962,453		718,090		17,655		(59,018)		(20,215)		(4,549)		4,549		1,619,797
Net income	—		—		48,559		—		—		—		—		—		48,559
Other comprehensive loss, net of tax	—		—		—		(4,678)		—		—		—		—		(4,678)
Cash dividends paid	—		—		(18,075)		—		—		—		—		—		(18,075)
Distributions from DDFP	—		28		—		—		—		—		168		(168)		28
Purchases of treasury stock	—		—		—		—		(48)		—		—		—		(48)
Purchase of employee restricted shares to fund statutory tax withholding	—		—		—		—		(915)		—		—		—		(915)
Shares issued dividend reinvestment plan	—		—		—		—		—		—		—		—		—
Stock option exercised	—		(82)		—		—		720		—		—		—		638
Allocation of ESOP shares	—		145		—		—		—		768		—		—		913
Allocation of SAP shares	—		959		—		—		—		—		—		—		959
Allocation of stock options	—		53		—		—		—		—		—		—		53
Balance at March 31, 2021	$	832	$	963,556	$	748,574	$	12,977	$	(59,261)	$	(19,447)	$	(4,381)	$	4,381	$	1,647,231

See accompanying notes to unaudited consolidated financial statements.

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PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

Three months ended March 31, 2021 and 2020 (Unaudited)

(Dollars in Thousands)

	Three months ended March 31,
	2021		2020
Cash flows from operating activities:
Net income	$	48,559	$	14,931
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	3,264		2,494
Provision (benefit) charge for credit losses on loans and securities	(15,001)		14,717
Credit loss (benefit) expense for off-balance sheet credit exposures	(875)		1,000
Deferred tax expense (benefit)	6,271		(1,492)
Amortization of operating lease right-of-use assets	2,812		2,130
Income on Bank-owned life insurance	(2,567)		(787)
Net amortization of premiums and discounts on securities	3,110		1,913
Accretion of net deferred loan fees	(5,487)		(1,521)
Amortization of premiums on purchased loans, net	190		192
Net increase in loans originated for sale	(14,492)		(4,022)
Proceeds from sales of loans originated for sale	15,260		4,335
Proceeds from sales and paydowns of foreclosed assets	569		256
ESOP expense	913		921
Allocation of stock award shares	959		993
Allocation of stock options	53		47
Net gain on sale of loans	(768)		(313)
Net gain on securities transactions	(197)		(11)
Net gain on sale of premises and equipment	(15)		(641)
Net gain on sale of foreclosed assets	(170)		(29)
(Increase) decrease in accrued interest receivable	(2,567)		1,232
Decrease (increase) in other assets	41,160		(82,099)
(Decrease) increase in other liabilities	(44,565)		79,111
Net cash provided by operating activities	36,416		33,357
Cash flows from investing activities:
Proceeds from maturities, calls and paydowns of held to maturity debt securities	10,236		17,225
Purchases of held to maturity debt securities	(7,541)		(9,674)
Proceeds from sales of securities	9,442		—
Proceeds from maturities and paydowns of available for sale debt securities	90,807		64,466
Purchases of available for sale debt securities	(226,417)		(56,172)
Proceeds from redemption of Federal Home Loan Bank stock	12,147		28,549
Purchases of Federal Home Loan Bank stock	(1,656)		(32,449)
BOLI claim benefits received	—		1,985
Net decrease (increase) in loans	24,217		(39,897)
Proceeds from sales of premises and equipment	15		641
Purchases of premises and equipment	(1,846)		(1,664)
Net cash used in investing activities	(90,596)		(26,990)
Cash flows from financing activities:
Net increase in deposits	459,684		108,151
Increase in mortgage escrow deposits	3,474		1,666
Cash dividends paid to stockholders	(18,075)		(15,496)
Shares issued dividend reinvestment plan	—		451

8

	Three months ended March 31,
	2021		2020
Purchase of treasury stock	(48)		(4,985)
Purchase of employee restricted shares to fund statutory tax withholding	(915)		(956)
Stock options exercised	638		—
Proceeds from long-term borrowings	400,000		632,554
Payments on long-term borrowings	(619,265)		(300,159)
Net decrease in short-term borrowings	(16,096)		(243,764)
Net cash provided by financing activities	209,397		177,462
Net increase in cash and cash equivalents	155,217		183,829
Cash and cash equivalents at beginning of period	532,353		186,748
Cash and cash equivalents at end of period	$	687,570	$	370,577
Cash paid during the period for:
Interest on deposits and borrowings	$	10,399	$	15,819
Income taxes	$	270	$	115
Non-cash investing activities:
Transfer of loans receivable to foreclosed assets	$	434	$	2,067

See accompanying notes to unaudited consolidated financial statements.

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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 credit 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, 2021 are not necessarily indicative of the results of operations that may be expected for all of 2021.

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, 2020 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, 2021 and 2020 (dollars in thousands, except per share amounts):

	Three months ended March 31,
	2021					2020
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	48,559				$	14,931
Basic earnings per share:
Income available to common stockholders	$	48,559	76,516,543	$	0.63	$	14,931	64,386,138	$	0.23
Dilutive shares			64,319					71,125
Diluted earnings per share:
Income available to common stockholders	$	48,559	76,580,862	$	0.63	$	14,931	64,457,263	$	0.23

Anti-dilutive stock options and awards at March 31, 2021 and 2020, totaling 1.2 million shares and 905,673 shares, respectively, were excluded from the earnings per share calculations.

C. Loans Receivable and Allowance for Credit Losses

On January 1, 2020, the Company adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments,” which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The Company used the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under CECL.

Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses on loans will be significantly influenced by the composition, characteristics and quality of the Company’s loan portfolio, as well as the

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prevailing economic conditions and forecast utilized. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. For the three months ended March 31, 2021, the improved economic outlook and the resulting lower allowance requirements led to reductions to the provisions for credit losses and off-balance sheet credit exposures. See Note 4 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans.

Note 2. Business Combinations

SB One Bancorp Acquisition

On July 31, 2020, the Company completed its acquisition of SB One Bancorp ("SB One"), which added $2.20 billion to total assets, $1.77 billion to total loans and $1.76 billion to total deposits, and added 18 full-service banking offices in New Jersey and New York. As part of the acquisition, the addition of SB One Insurance Agency allowed the Company to expand its products offerings to its customers to include an array of commercial and personal insurance products.

Under the merger agreement, each share of outstanding SB One common stock was exchanged for 1.357 shares of the Company's common stock. The Company issued 12.8 million shares of common stock from treasury stock, plus cash in lieu of fractional shares in the acquisition of SB One. The total consideration paid for the acquisition of SB One was $180.8 million. In connection with the acquisition, SB One Bank, a wholly owned subsidiary of SB One, was merged with and into Provident Bank, a wholly owned subsidiary of the Company.

The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the respective assets acquired and liabilities assumed were recorded at their estimated fair value. The excess of consideration paid over the estimated fair value of the net assets acquired totaled $22.4 million and was recorded as goodwill.

The calculation of goodwill is subject to change for up to one year after the closing date of the transaction as additional information relative to closing date estimates and uncertainties becomes available. As the Company finalizes its analysis of these assets and liabilities, there may be adjustments to the recorded carrying values.

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition from SB One (in thousands):

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	At July 31, 2020
Assets acquired:
Cash and cash equivalents, net	$	78,089
Available for sale debt securities	231,645
Held to maturity debt securities	12,381
Federal Home Loan Bank stock	11,216
Loans	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Loans, net	1,752,529
Bank-owned life insurance	37,237
Banking premises and equipment	16,620
Accrued interest receivable	8,947
Goodwill	22,439
Other intangibles assets	9,965
Foreclosed assets, net	2,441
Other assets	12,199
Total assets acquired	$	2,195,708
Liabilities assumed:
Deposits	$	1,757,777
Borrowed funds	201,582
Subordinated debentures	25,074
Other liabilities	30,447
Total liabilities assumed	$	2,014,880
Net assets acquired	$	180,828

Fair Value Measurement of Assets Assumed and Liabilities Assumed

The methods used to determine the fair value of the assets acquired and liabilities assumed in the SB One acquisition were as follows:

Securities Available for Sale

The estimated fair values of the available for sale debt securities, primarily comprised of U.S. Government agency mortgage-backed securities and U.S. government agencies and municipal bonds carried on SB One's balance sheet was confirmed using open market pricing provided by multiple independent securities brokers. Management reviewed the open market quotes used in pricing the securities and a fair value adjustment was not recorded on the investments.

Held to Maturity Debt Securities

The estimated fair values of the held to maturity debt securities, primarily comprised of municipal bonds, were determined using open market pricing provided by multiple independent securities brokers. Management reviewed the open market quotes used in pricing the securities. A fair value premium of $133,000 was recorded on the investments.

Loans

Loans acquired in the SB One acquisition were recorded at fair value, and there was no carryover related allowance for credit losses. The fair values of loans acquired from SB One were estimated using the discounted cash flow method based on the remaining maturity and repricing terms. Cash flows were adjusted for expected losses and prepayments. Projected cash flows were then discounted to present value based on: the relative risk of the cash flows, taking into account the loan type, liquidity risk, the maturity of the loans, servicing costs, and a required return on capital; and monthly principal and interest cash flows were discounted to present value and summed to arrive at the calculated value of the loans. The fair value of the acquired loans receivable was $1.77 billion.  

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For loans acquired without evidence of more-than-insignificant deterioration in credit quality since origination, the Company prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into pools based on similar characteristics, such as loan type, fixed or adjustable interest rates, payment type, index rate and caps/floors, and non-accrual status. The loans were valued at the sub-pool level and were pooled at the summary level based on loan type. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these market rates was used as the fair value interest rate that a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value premium of $8.4 million.

Loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated ("PCD") loans. The Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that were current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics.

Additionally for PCD loans, an allowance for credit losses was calculated using management's best estimate of projected losses over the remaining life of the loans in accordance with ASC 326-20. This represents the portion of the loan balances that has been deemed uncollectible based on the Company’s expectations of future cash flows for each respective PCD loan pool, given the outlook and forecast inclusive of the impact of the COVID-19 pandemic ("COVID-19") and related fiscal and regulatory interventions. The expected lifetime losses were calculated using historical losses observed at the Bank, SB One and peer banks. A $13.6 million allowance for credit losses was recorded on PCD loans. The interest rate fair value adjustment related to PCD loans will be substantially recognized as interest income on a level yield amortization or straight line method over the expected life of the loans. Subsequent to the acquisition date, the initial allowance for credit losses on PCD loans will increase or decrease based on future evaluations, with changes recognized in the provision for credit losses.

The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired (in thousands):

Gross amortized cost basis at July 31, 2020	$	1,787,057
Interest rate fair value adjustment on all loans	455
Credit fair value adjustment on non-PCD loans	(21,397)
Fair value of acquired loans at July 31, 2020	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Fair value of acquired loans, net at July 31, 2020	$	1,752,529

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition as of the closing date (in thousands):

Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

Banking Premises and Equipment

The Company acquired 18 branches from SB One, eight of which were owned premises. The fair value of properties acquired was derived by valuations prepared by an independent third party utilizing the sales comparison approach to value the property as improved.

Core Deposit Intangible and Customer Relationship Intangible

The fair value of the core deposit intangible was determined based on a discounted cash flow analysis using a discount rate commensurate with market participants. To calculate cash flows, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available through national brokered CD offering rates. The projected cash flows were developed using projected deposit attrition rates.

The fair value of the customer relationship intangible was determined based on a discounted cash flow analysis using the excess of the future cash inflows (i.e., revenue from existing customer relationships) over the related cash outflows (i.e., operating costs) generated over the useful life of the acquired customer base. These cash flows were discounted to present value using an

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asset-specific risk-adjusted discount rate. The projected cash flows were developed using projected customer revenue retention rates.

The core deposit intangible totaled $3.2 million and is being amortized over its estimated useful life of approximately 10 years based on dollar weighted deposit runoff on an annualized basis. The insurance agency customer relationship intangible totaled $6.8 million and is being amortized over its estimated useful life of approximately 13 years based on customer revenue attrition on an annualized basis.

Goodwill

The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. As the Company finalizes its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values may be required. The goodwill will be evaluated annually for impairment. The goodwill is not deductible for tax purposes.

Bank Owned Life Insurance ("BOLI")

SB One's BOLI cash surrender value was $37.2 million with no fair value adjustment.

Time Deposits

The fair value adjustment for time deposits represents a discount from the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar-term time deposits. The time deposit discount of approximately $4.3 million is being amortized into income on a level yield amortization method over the contractual life of the deposits.

Borrowings

The fair value of Federal Home Loan Bank of New York ("FHLBNY") advances was determined based on a discounted cash flow analysis using a discount rate commensurate with FHLBNY rates as of July 31, 2020. The cash flows of the advances were projected based on the scheduled payments of the fixed rate of each advance.

Subordinated Debentures

At the valuation date, SB One had one outstanding Trust Preferred and one subordinated debt issuance with an aggregate balance of $27.5 million. The fair value of Trust Preferred and subordinated debt issuances was determined based on a discounted cash flow analysis using a discount rate commensurate with yields and terms of comparable issuances. The cash flows were projected through the remaining contractual term of the Trust Preferred issuance and based on the call date for the subordinated debt issuance.

Note 3. Investment Securities

At March 31, 2021, the Company had $1.22 billion and $447.9 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. The total number of available for sale and held to maturity debt securities in an unrealized loss position at March 31, 2021 totaled 122, compared with 49 at December 31, 2020. The increase in the number of securities in an unrealized loss position at March 31, 2021 was due to higher current market interest rates compared to rates at December 31, 2020.

On January 1, 2020, the Company adopted CECL which replaces the incurred loss methodology with an expected loss methodology. The Company did not record an allowance for credit losses on available for sale debt securities as this portfolio consisted primarily of debt securities explicitly or implicitly backed by the U.S. Government for which credit risk is deemed immaterial. The impact going forward will depend on the composition, characteristics, and credit quality of the securities portfolio as well as the economic conditions at future reporting periods. The Company recorded a $70,000 increase to the allowance for credit losses on held to maturity debt securities with a corresponding cumulative effect adjustment to decrease retained earnings by $52,000, net of income taxes. (See Adoption of CECL table below for additional detail.)

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types:

•Agency obligations;

•Mortgage-backed securities;

•State and municipal obligations; and

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•Corporate obligations.

All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The majority of the state and municipal, and corporate obligations carry no lower than A ratings from the rating agencies at March 31, 2021 and the Company had one security rated with a triple-B by Moody’s Investors Service.

The Company adopted CECL using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of CECL.

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, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,042,480	23,915	(6,243)	1,060,152
Asset-backed securities	47,329		1,876	—	49,205
State and municipal obligations	69,443		429	(938)	68,934
Corporate obligations	38,149		739	(243)	38,645
	$	1,197,401	26,959	(7,424)	1,216,936

	December 31, 2020
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	1,001	8	—	1,009
Mortgage-backed securities	910,393		28,872	(852)	938,413
Asset-backed securities	52,295		1,535	—	53,830
State and municipal obligations	69,687		1,666	(95)	71,258
Corporate obligations	40,194		809	(24)	40,979
	$	1,073,570	32,890	(971)	1,105,489

The amortized cost and fair value of available for sale debt securities at March 31, 2021, 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, 2021
	Amortized cost		Fair value
Due in one year or less	$	—	—
Due after one year through five years	3,651		3,761
Due after five years through ten years	38,002		38,532
Due after ten years	65,939		65,286
	$	107,592	107,579

Investments which pay principal on a periodic basis totaling $1.09 billion at amortized cost and $1.11 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, 2021, proceeds from sales on securities in the available for sale debt securities portfolio totaled $9.4 million, with gains of $230,000 and no loss recognized. No securities were sold or called from the available for sale debt securities portfolio for the three month periods ended March 31, 2020.

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The following tables present the fair values and gross unrealized losses for available for sale debt securities in an unrealized loss position at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	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	$	345,988	(6,209)	8,110	(34)	354,098	(6,243)
State and municipal obligations	40,517		(938)	—	—	40,517	(938)
Corporate obligations	6,655		(243)	—	—	6,655	(243)
	$	393,160	(7,390)	8,110	(34)	401,270	(7,424)

	December 31, 2020
	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	$	127,600	(824)	8,007	(28)	135,607	(852)
State and municipal obligations	5,275		(95)	—	—	5,275	(95)
Corporate obligations	—		—	2,000	(24)	2,000	(24)
	$	132,875	(919)	10,007	(52)	142,882	(971)

The number of available for sale debt securities in an unrealized loss position at March 31, 2021 totaled 81, compared with 42 at December 31, 2020. The increase in the number of securities in an unrealized loss position at March 31, 2021 was due to higher current market interest rates compared to rates at December 31, 2020. At March 31, 2021, there was one private label mortgage-backed security in an unrealized loss position, with an amortized cost of $17,445 and unrealized loss of $690. This private-label mortgage-backed security was investment grade at March 31, 2021.

Held to Maturity Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and the estimated fair value for held to maturity debt securities at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	8,998	1	(95)	8,904
Mortgage-backed securities	50		1	—	51
State and municipal obligations	428,631		16,970	(825)	444,776
Corporate obligations	10,300		65	(103)	10,262
	$	447,979	17,037	(1,023)	463,993

At March 31, 2021, the allowance for credit losses on held to maturity debt securities totaled $77,000.

	December 31, 2020
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	7,600	6	(5)	7,601
Mortgage-backed securities	62		2	—	64
State and municipal obligations	433,655		21,442	(58)	455,039
Corporate obligations	9,726		101	(2)	9,825
	$	451,043	21,551	(65)	472,529

At December 31, 2020, the allowance for credit losses on held to maturity debt securities totaled $78,000.

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The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value 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, 2021 and 2020. For the three months ended March 31, 2021, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $6.8 million with gross losses of $33,000 and no gross gains. For the three months ended March 31, 2020, proceeds from calls of securities in the held to maturity debt securities portfolio totaled $13.3 million with gross gains of $11,000 and no gross losses.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at March 31, 2021 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, 2021
	Amortized cost		Fair value
Due in one year or less	$	—	—
Due after one year through five years	163,682		167,460
Due after five years through ten years	213,875		224,327
Due after ten years	70,372		72,155
	$	447,929	463,942

Mortgage-backed securities totaling $50,000 at amortized cost and $51,000 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. Additionally, allowance for credit losses totaling $77,000 is excluded from the table above.

The following table illustrates the impact of the January 1, 2020 adoption of CECL on held to maturity debt securities (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Held to Maturity Debt Securities
Allowance for credit losses on corporate securities	$	6	—	6
Allowance for credit losses on municipal securities	64		—	64
Allowance for credit losses on held to maturity debt securities	$	70	—	70

The following tables present the fair values and gross unrealized losses for held to maturity debt securities in an unrealized loss position at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021 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	$	6,903	(95)	—	—	6,903	(95)
State and municipal obligations	19,697		(809)	406	(16)	20,103	(825)
Corporate obligations	6,146		(103)	—	—	6,146	(103)
	$	32,746	(1,007)	406	(16)	33,152	(1,023)

	December 31, 2020 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	$	1,995	(5)	—	—	1,995	(5)
State and municipal obligations	4,846		(41)	406	(17)	5,252	(58)
Corporate obligations	786		(2)	—	—	786	(2)
	$	7,627	(48)	406	(17)	8,033	(65)

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The number of held to maturity debt securities in an unrealized loss position at March 31, 2021 totaled 41, compared with 7 at December 31, 2020. The increase in the number of securities in an unrealized loss position at March 31, 2021, was due to higher current market interest rates compared to prevailing market rates at December 31, 2020.

Credit Quality Indicators. The following table provides the amortized cost of held to maturity debt securities by credit rating as of March 31, 2021 (in thousands):

	March 31, 2021
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Agency obligations	$	8,998	—	—	—	—	8,998
Mortgage-backed securities	50		—	—	—	—	50
State and municipal obligations	57,207		308,572	51,678	1,115	10,059	428,631
Corporate obligations	—		3,087	7,188	—	25	10,300
	$	66,255	311,659	58,866	1,115	10,084	447,979
	December 31, 2020
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Agency obligations	$	7,600	—	—	—	—	7,600
Mortgage-backed securities	62		—	—	—	—	62
State and municipal obligations	57,830		311,155	53,302	1,115	10,253	433,655
Corporate obligations	—		3,255	6,446	—	25	9,726
	$	65,492	314,410	59,748	1,115	10,278	451,043

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. At March 31, 2021, the held to maturity debt securities portfolio was comprised of 15% rated AAA, 70% rated AA, 13% rated A, and less than 2% either below an A rating or not rated by Moody’s Investors Service or Standard and Poor’s. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security.

At March 31, 2021, the allowance for credit losses on held to maturity debt securities was $77,000, a decrease from $78,000 at December 31, 2020.

Note 4. Loans Receivable and Allowance for Credit Losses

On January 1, 2020, the Company adopted CECL, which replaced the incurred loss methodology with an expected loss methodology. The adoption of the new standard resulted in the Company recording a $7.9 million increase to the allowance for credit losses on loans with a corresponding cumulative effect adjustment to decrease retained earnings by $5.9 million, net of income taxes. (See Adoption of CECL table below for additional detail.)

Loans receivable at March 31, 2021 and December 31, 2020 are summarized as follows (in thousands):

	March 31, 2021		December 31, 2020
Mortgage loans:
Residential	$	1,277,376	1,294,702
Commercial	3,594,012		3,458,666
Multi-family	1,458,193		1,484,515
Construction	615,706		541,939
Total mortgage loans	6,945,287		6,779,822
Commercial loans	2,510,708		2,567,470
Consumer loans	363,648		492,566
Total gross loans	9,819,643		9,839,858
Premiums on purchased loans	1,378		1,566
Unearned discounts	(7)		(12)
Net deferred fees	(17,478)		(18,522)
Total loans	$	9,803,536	9,822,890

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At March 31, 2021, $101.7 million of loans purchased from SB One that were previously classified as consumer loans were classified as commercial mortgage loans, following further analysis of the underwriting documents and operational intent of the borrower. These loans are comprised of term loans and lines of credit secured by 1-4 family residential properties that are held by borrowers to generate rental income.

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

	March 31, 2021
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Residential	$	6,862	6,161	7,797	—	20,820	1,256,556	1,277,376	7,797
Commercial	2,183		520	33,742	—	36,445	3,557,567	3,594,012	33,742
Multi-family	1,327		—	101	—	1,428	1,456,765	1,458,193	101
Construction	1,123		1,656	1,392	—	4,171	611,535	615,706	1,392
Total mortgage loans	11,495		8,337	43,032	—	62,864	6,882,423	6,945,287	43,032
Commercial loans	393		235	36,042	—	36,670	2,474,038	2,510,708	21,298
Consumer loans	1,356		277	3,010	—	4,643	359,005	363,648	3,009
Total gross loans	$	13,244	8,849	82,084	—	104,177	9,715,466	9,819,643	67,339

	December 31, 2020
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Residential	$	15,789	8,852	9,315	—	33,956	1,260,746	1,294,702	9,315
Commercial	761		113	31,982	—	32,856	3,425,810	3,458,666	20,482
Multi-family	206		585	—	—	791	1,483,724	1,484,515	—
Construction	—		—	1,392	—	1,392	540,547	541,939	1,392
Total mortgage loans	16,756		9,550	42,689	—	68,995	6,710,827	6,779,822	31,189
Commercial loans	1,658		1,179	42,118	—	44,955	2,522,515	2,567,470	15,541
Consumer loans	4,348		4,519	2,283	—	11,150	481,416	492,566	2,283
Total gross loans	$	22,762	15,248	87,090	—	125,100	9,714,758	9,839,858	49,013

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 $82.1 million and $87.1 million at March 31, 2021 and December 31, 2020, respectively. Included in non-accrual loans were $27.1 million and $35.3 million of loans which were less than 90 days past due at March 31, 2021 and December 31, 2020, respectively. There were no loans 90 days or greater past due and still accruing interest at March 31, 2021 or December 31, 2020.

Management has elected to measure an allowance for credit losses for accrued interest receivables specifically related to any loan that has been deferred as a result of COVID-19. Generally, accrued interest is written off by reversing interest income during the quarter the loan is moved from an accrual to a non-accrual status.

The Company defines an impaired loan as a non-homogeneous loan greater than $1.0 million, for which, based on current information, the Bank does not expect to collect all amounts due under the contractual terms of the loan agreement. Impaired loans also include all loans modified as troubled debt restructurings (“TDRs”). An allowance for collateral-dependent impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required.

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A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the fair value of the collateral less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. At each fiscal quarter end, if a loan is designated as collateral-dependent 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 and evaluated for charge offs. The Company believes there have been no significant time lapses resulting from this process.

At March 31, 2021, there were 167 impaired loans totaling $79.5 million. Included in this total were 115 TDRs related to 112 borrowers totaling $22.7 million that were performing in accordance with their restructured terms and which continued to accrue interest at March 31, 2021. At December 31, 2020, there were 169 impaired loans totaling $86.0 million, of which 135 loans totaling $39.6 million were TDRs. Included in this total were 112 TDRs to 110 borrowers totaling $23.1 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2020.

At March 31, 2021 and December 31, 2020, the Company had $30.1 million and $26.3 million of collateral-dependent impaired loans, respectively. The collateral-dependent impaired loans at March 31, 2021 consisted of $28.3 million in commercial loans, $1.6 million in residential real estate loans, and $216,000 in consumer loans. The collateral for these impaired loans was primarily real estate.

The activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2021 and 2020 was as follows (in thousands):

March 31, 2021	Mortgage loans		Commercial loans	Consumer loans	Total
Balance at beginning of period	$	68,307	27,084	6,075	101,466
Provision benefit to operations	(13,467)		(467)	(1,066)	(15,000)
Recoveries of loans previously charged-off	276		528	303	1,107
Loans charged-off	(918)		(843)	(221)	(1,982)
Balance at end of period	$	54,198	26,302	5,091	85,591
March 31, 2020	Mortgage loans		Commercial loans	Consumer loans	Total
Balance at beginning of period	$	25,511	28,263	1,751	55,525
Provision charge (benefit) to operations	7,710		7,619	(629)	14,700
Retained earnings (due to initial CECL adoption)	14,188		(9,974)	3,706	7,920
Recoveries of loans previously charged-off	93		313	123	529
Loans charged-off	(2)		(3,380)	(149)	(3,531)
Balance at end of period	$	47,500	22,841	4,802	75,143

As a result of the January 1, 2020 adoption of CECL, the Company recorded a $7.9 million increase to the allowance for credit losses on loans. For the three months ended March 31, 2021, the Company recorded a negative provision for credit losses on loans of $15.0 million. The decrease in the provision for credit losses for the year ended March 31, 2021 was the result of an improved current economic forecast and the resultant favorable impact on expected credit losses, compared with a provision for credit losses for the prior year, which was based upon a weak economic forecast and uncertain outlook attributable to the COVID-19. The largest decrease in the provision for credit losses on loans for the year ended March 31, 2021 was in the commercial real estate portfolio.

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The following table illustrates the impact the January 1, 2020 adoption of CECL had on the allowance for credits losses for the loan portfolio (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Loans
Residential	$	8,950	3,414	5,536
Commercial	17,118		12,831	4,287
Multi-family	9,519		3,374	6,145
Construction	4,152		5,892	(1,740)
Total mortgage loans	39,739		25,511	14,228
Commercial loans	18,254		28,263	(10,009)
Consumer loans	5,452		1,751	3,701
Allowance for credit losses on loans	$	63,445	55,525	7,920

The following tables summarize loans receivable by portfolio segment and impairment method (in thousands):

	March 31, 2021
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	49,783	28,359	1,405	79,547
Collectively evaluated for impairment	6,895,504		2,482,349	362,243	9,740,096
Total gross loans	$	6,945,287	2,510,708	363,648	9,819,643

	December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	48,783	35,832	1,431	86,046
Collectively evaluated for impairment	6,731,039		2,531,638	491,135	9,753,812
Total gross loans	$	6,779,822	2,567,470	492,566	9,839,858

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

	March 31, 2021
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	927	3,832	43	4,802
Collectively evaluated for impairment	53,271		22,470	5,048	80,789
Total gross loans	$	54,198	26,302	5,091	85,591

	December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	4,220	4,715	39	8,974
Collectively evaluated for impairment	64,087		22,369	6,036	92,492
Total gross loans	$	68,307	27,084	6,075	101,466

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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, management 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, 2021 and 2020, along with their balances immediately prior to the modification date and post-modification as of March 31, 2021 and 2020 (in thousands):

	For the three months ended
	March 31, 2021					March 31, 2020
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)
Commercial loans	3	$	1,361	$	1,359	2	$	746	$	731
Total restructured loans	3	$	1,361	$	1,359	2	$	746	$	731

For loans modified as TDRs in the preceding table, there were no allowance for credit losses required at March 31, 2021.

There were no payment defaults (90 days or more past due) at the quarter ended March 31, 2021 and 2020 for loans modified as TDRs within the previous 12 month periods ending March 31, 2021 and March 31, 2020. For TDRs that subsequently default, the Company determines the amount of the allowance for the respective loans in accordance with the accounting policy for the allowance for credit losses on loans individually evaluated for impairment.

All TDRs are impaired loans, which are individually evaluated for impairment. During the three months ended March 31, 2021, $1.5 million of charge-offs were recorded on TDRs. (See subsequent discussion related to COVID-19 loan modifications.)

As allowed by CECL, the Company elected to maintain pools of loans accounted for under ASC 310-30. At December 31, 2020, purchased credit impaired (“PCI”) loans totaled $746,000. In accordance with the CECL standard, management did not reassess whether modifications of individually acquired financial assets accounted for in pools were TDRs as of the date of adoption. Loans considered to be PCI prior to January 1, 2020 were converted to PCD loans on that date. Any additional loans acquired by the Company after January 1, 2020, that experience more-than-insignificant deterioration in credit quality after origination, have been classified as PCD loans.

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition at the July 31, 2020 closing date (in thousands):

Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Fair value of PCD loans	307,796
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

At March 31, 2021, the balance of PCD loans totaled $283.9 million with a related allowance for credit losses of $10.8 million. The balance of PCD loans at December 31, 2020 was $296.6 million with a related allowance for credit losses of $13.1 million.

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

	March 31, 2021						December 31, 2020
	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	$	12,267	9,794	—	10,083	118	13,981	11,380	—	11,587	511
Commercial	34,125		30,656	—	31,555	17	17,414	17,414	—	16,026	60
Total	46,392		40,450	—	41,638	135	31,395	28,794	—	27,613	571
Commercial loans	11,630		8,963	—	9,082	—	15,895	14,009	—	12,791	46
Consumer loans	1,360		857	—	2,319	13	1,382	880	—	7	50
Total impaired loans	$	59,382	50,270	—	53,039	148	48,672	43,683	—	40,411	667
Loans with an allowance recorded
Mortgage loans:
Residential	$	8,938	8,438	904	8,461	77	7,950	7,506	806	7,604	307
Commercial	895		895	23	925	13	14,993	12,483	3,414	123	570
Total	9,833		9,333	927	9,386	90	22,943	19,989	4,220	7,727	877
Commercial loans	22,622		19,396	3,832	23,451	123	24,947	21,823	4,715	18,620	311
Consumer loans	563		548	43	550	10	565	551	39	5	20
Total impaired loans	$	33,018	29,277	4,802	33,387	223	48,455	42,363	8,974	26,352	1,208
Total impaired loans
Mortgage loans:
Residential	$	21,205	18,232	904	18,544	195	21,931	18,886	806	19,191	818
Commercial	35,020		31,551	23	32,480	30	32,407	29,897	3,414	16,149	630
Total	56,225		49,783	927	51,024	225	54,338	48,783	4,220	35,340	1,448
Commercial loans	34,252		28,359	3,832	32,533	123	40,842	35,832	4,715	31,411	357
Consumer loans	1,923		1,405	43	2,869	23	1,947	1,431	39	12	70
Total impaired loans	$	92,400	79,547	4,802	86,426	371	97,127	86,046	8,974	66,763	1,875

Specific allocations of the allowance for credit losses attributable to impaired loans totaled $4.8 million at March 31, 2021 and $9.0 million at December 31, 2020. At March 31, 2021 and December 31, 2020, impaired loans for which there was no related allowance for credit losses totaled $50.3 million and $43.7 million, respectively. The average balance of impaired loans for the three months ended March 31, 2021 and December 31, 2020 was $86.4 million and $66.8 million, respectively.

Management 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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In response to COVID-19 and its adverse economic impact on both our commercial and retail borrowers, the Company implemented a modification program to defer principal or principal and interest payments for borrowers directly impacted by the pandemic and who were not more than 30 days past due as of December 31, 2019, all in accordance with the Coronavirus Aid, Relief, and Economic Security ("CARES") Act.

Loans that have been or are expected to be granted COVID-19 related deferrals or modifications have decreased from a peak level of $1.31 billion, or 16.8% of loans, to $132.0 million, or 1.3% of loans as of April 20, 2021. This $132.0 million of loans includes $300,000 in a first 90-day deferral period, $46.6 million in a second 90-day deferral period, and $85.1 million in a third deferral period. Of the $123.5 million in commercial loans in deferral, $119.0 million or 96.4% are under principal only deferral and are paying interest. Included in the $132.0 million of loans, $40.9 million are secured by hotels, $33.1 million are secured by multi-family properties (the majority of which is student housing related), $8.6 million are secured by retail properties, $6.5 million are secured by restaurants, and $8.5 million are secured by residential mortgages, with the balance comprised of diverse commercial loans. In accordance with the CARES Act, the Company has elected to not apply troubled debt restructuring classification to any COVID-19 related loan modifications that were performed after March 1, 2020 to borrowers who were current as of December 31, 2019. Accordingly, these modifications are not classified as TDRs.

In addition, the Company participated in the Paycheck Protection Program (“PPP”) through the United States Department of the Treasury and Small Business Administration ("SBA"). As of March 31, 2021, the Company secured a total of 1,318 PPP loans for its customers totaling $664.5 million, which includes both the initial round and the second round of PPP. Additionally, as of March 31, 2021, 670 PPP loans totaling $182.6 million were forgiven. The balance at March 31, 2021 for PPP loans was $481.9 million. The PPP loans are fully guaranteed by the SBA and may be eligible for forgiveness by the SBA to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up to 24 weeks after the loan was made as long as certain conditions are met regarding employee retention and compensation levels. PPP loans deemed eligible for forgiveness by the SBA will be repaid by the SBA to the Company. PPP loans are included in the commercial loan portfolio.

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades (in thousands):

	At March 31, 2021
Total portfolio	Residential		Commercial mortgage		Multi-family		Construction		Total mortgages		Commercial		Consumer		Total Loans (1)
Special mention	$	5,847	129,051		35,885		25,409		196,192		115,619		529		312,340
Substandard	23,416		109,689		1,552		5,736		140,393		124,581		3,836		268,810
Doubtful	—		—		—		—		—		20		—		20
Loss	—		—		—		—		—		—		—		—
Total criticized and classified	29,263		238,740		37,437		31,145		336,585		240,220		4,365		581,170
Pass/Watch	1,248,113		3,355,272		1,420,756		584,561		6,608,702		2,270,488		359,283		9,238,473
Total	$	1,277,376	3,594,012		1,458,193		615,706		6,945,287		2,510,708		363,648		9,819,643
2021
Special mention	$	—	—		—		—		—		23		—		23
Substandard	—		—		—		—		—		391		—		391
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total criticized and classified	—		—		—		—		—		414		—		414
Pass/Watch	82,831		78,552		31,141		14,913		207,437		252,045		8,947		468,429
Total gross loans	$	82,831	78,552		31,141		14,913		207,437		252,459		8,947		468,843
2020
Special mention	$	—	$	—	$	—	$	1,986	$	1,986	$	345	$	—	$	2,331
Substandard	163		—		—		—		163		1,824		—		1,987
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—

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Total criticized and classified	163		—	—	1,986	2,149	2,169	—	4,318
Pass/Watch	262,032		670,040	296,124	123,927	1,352,123	595,559	39,107	1,986,789
Total gross loans	$	262,195	670,040	296,124	125,913	1,354,272	597,728	39,107	1,991,107
2019
Special mention	$	661	30,310	679	16,189	47,839	8,819	—	56,658
Substandard	3,773		2,426	—	—	6,199	9,856	361	16,416
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	4,434		32,736	679	16,189	54,038	18,675	361	73,074
Pass/Watch	139,951		632,084	177,648	259,223	1,208,906	246,072	46,155	1,501,133
Total gross loans	$	144,385	664,820	178,327	275,412	1,262,944	264,747	46,516	1,574,207
2018
Special mention	$	2,425	39,825	20,125	—	62,375	3,578	—	65,953
Substandard	744		5,383	—	5,121	11,248	6,568	120	17,936
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	3,169		45,208	20,125	5,121	73,623	10,146	120	83,889
Pass/Watch	81,320		385,080	183,343	145,307	795,050	228,963	44,128	1,068,141
Total gross loans	$	84,489	430,288	203,468	150,428	868,673	239,109	44,248	1,152,030
2017 and prior
Special mention	$	2,761	58,916	15,081	7,234	83,992	102,854	529	187,375
Substandard	18,736		101,880	1,552	615	122,783	105,942	3,355	232,080
Doubtful	—		—	—	—	—	20	—	20
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	21,497		160,796	16,633	7,849	206,775	208,816	3,884	419,475
Pass/Watch	681,979		1,589,516	732,500	41,191	3,045,186	947,849	220,946	4,213,981
Total gross loans	$	703,476	1,750,312	749,133	49,040	3,251,961	1,156,665	224,830	4,633,456
	At December 31, 2020
	Residential		Commercial mortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	2,882	124,631	29,781	24,376	181,670	157,080	1,867	340,617
Substandard	26,651		98,313	1,568	4,924	131,456	127,092	6,746	265,294
Doubtful	—		—	—	—	—	52	—	52
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	29,533		222,944	31,349	29,300	313,126	284,224	8,613	605,963
Pass/Watch	1,265,169		3,235,722	1,453,166	512,639	6,466,696	2,283,246	483,953	9,233,895
Total	$	1,294,702	3,458,666	1,484,515	541,939	6,779,822	2,567,470	492,566	9,839,858

(1) Contained within criticized and classified loans at March 31, 2021 are loans that were granted payment deferrals related to COVID-19 totaling $132.0 million.

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Note 5. Deposits

Deposits at March 31, 2021 and December 31, 2020 are summarized as follows (in thousands):

	March 31, 2021		December 31, 2020
Savings	$	1,402,363	1,348,147
Money market	2,345,640		2,245,412
NOW	3,075,098		2,808,637
Non-interest bearing	2,511,408		2,341,459
Certificates of deposit	963,004		1,094,174
Total deposits	$	10,297,513	9,837,829

Note 6. 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 (benefit) increase cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2021 and 2020 includes the following components (in thousands):

	Three months ended March 31,
	Pension benefits			Other post-retirement benefits
	2021		2020	2021	2020
Service cost	$	—	—	9	20
Interest cost	198		250	106	178
Expected return on plan assets	(807)		(737)	—	—
Amortization of prior service cost	—		—	—	—
Amortization of the net loss (gain)	118		174	(268)	(62)
Net periodic (benefit) increase cost	$	(491)	(313)	(153)	136

In its consolidated financial statements for the year ended December 31, 2020, the Company previously disclosed that it does not expect to contribute to the pension plan in 2021. As of March 31, 2021, no contributions have been made to the pension plan.

The net periodic (decrease) increase in benefit cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2021 were calculated using the January 1, 2021 pension and other post-retirement benefits actuarial valuations.

Note 7. Impact of Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

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ASU 2020-04, "Reference Rate Reform (Topic 848)" ("ASU 2020-04") provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance: (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized; and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or re-measurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for derivative accounting. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the Codification, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The Company anticipates this ASU will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than the extinguishment of the old contract resulting in writing off unamortized fees/costs. In addition, in January 2021 the FASB issued ASU No. 2021-01 “Reference Rate Reform — Scope,” which clarified the scope of ASC 848 relating to contract modifications. The Company is evaluating the impacts of this guidance and has not determined whether LIBOR transition and this guidance will have material effects on the Company's business operations and consolidated financial statements.

Note 8. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

On January 1, 2020, the Company adopted CECL, which replaced the incurred loss methodology with an expected loss methodology. This new methodology applies to off-balance sheet credit exposures, including loan commitments and lines of credit. The adoption of this new standard resulted in the Company recording a $3.2 million increase to the allowance for credit losses on off-balance sheet credit exposures with a corresponding cumulative effect adjustment to decrease retained earnings $2.4 million, net of income taxes.

Management analyzes the Company's exposure to credit losses for both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework. For purposes of estimating the allowance for credit losses for off-balance sheet credit exposures, the exposure at default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors, resulting in a proportionate amount of expected credit losses.

The following table illustrates the impact of the January 1, 2020 adoption of CECL on off-balance sheet credit exposures:

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Liabilities
Allowance for credit losses on off-balance sheet credit exposure	$	3,206	—	3,206

For the three months ended March 31, 2021, the Company recorded an $875,000 benefit to the provision for credit losses for off-balance sheet credit exposures, compared to $1.0 million provision for the three months ended March 31, 2020. This decrease in the provision for credit losses for off-balance sheet credit exposures was primarily due to a reduction in the required allowance for these exposures as loss factors decreased resulting from an improved economic forecast compared to the prior year.

The allowance for credit losses for off-balance sheet credit exposures was $4.1 million and $5.0 million at March 31, 2021 and December 31, 2020, respectively, and are included in other liabilities on the Consolidated Statements of Financial Condition.

Note 9. 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, Management utilizes various valuation techniques to estimate fair value.

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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 the 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, 2021 and December 31, 2020.

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 whom 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 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 Management 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, Management compares the prices received from the pricing service to a secondary pricing source. Additionally, Management 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 which, 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 derivatives 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

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counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. These derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings. The change in the fair value of these derivatives is recorded in accumulated other comprehensive income, and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

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, 2021 and December 31, 2020.

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%. Management 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 credit 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, 2021 and December 31, 2020.

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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, 2021 and December 31, 2020, by level within the fair value hierarchy (in thousands):

	Fair Value Measurements at Reporting Date Using:
	March 31, 2021		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	$	1,060,152	—	1,060,152	—
Asset-backed securities	49,205		—	49,205	—
State and municipal obligations	68,934		—	68,934	—
Corporate obligations	38,645		—	38,645	—
Total available for sale debt securities	1,216,936		—	1,216,936	—
Equity securities	1,026		1,026	—	—
Derivative assets	76,542		—	76,542	—
	$	1,294,504	1,026	1,293,478	—
Derivative liabilities	$	78,228	—	78,228	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	30,120	—	—	30,120
Foreclosed assets	3,554		—	—	3,554
	$	33,674	—	—	33,674

	Fair Value Measurements at Reporting Date Using:
	December 31, 2020		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:
Agency obligations	$	1,009	1,009	—	—
Mortgage-backed securities	938,413		—	938,413	—
Asset-backed securities	53,830			53,830
State and municipal obligations	71,258		—	71,258	—
Corporate obligations	40,979		—	40,979	—
Total available for sale debt securities	1,105,489		1,009	1,104,480	—
Equity Securities	971		971	—	—
Derivative assets	101,079		—	101,079	—
	$	1,207,539	1,980	1,205,559	—
Derivative liabilities	$	109,148	—	109,148	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	26,250	—	—	26,250
Foreclosed assets	4,475		—	—	4,475
	$	30,725	—	—	30,725

There were no transfers between Level 1, Level 2 and Level 3 during the three months ended March 31, 2021.

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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, 2021 and December 31, 2020 was $42.6 million and $114.3 million, respectively, representing cash collateral pledged to secure loan level swaps and 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 whom 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 to comparable securities. Management evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As management 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, management compares the prices received from the pricing service to a secondary pricing source. Additionally, management 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.

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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.

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.

32

The following tables present the Company’s financial instruments at their carrying and fair values as of March 31, 2021 and December 31, 2020. Fair values are presented by level within the fair value hierarchy.

			Fair Value Measurements at March 31, 2021 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	$	687,570	687,570	687,570	—	—
Available for sale debt securities:
Mortgage-backed securities	1,060,152		1,060,152	—	1,060,152	—
Asset-backed securities	49,205		49,205		49,205
State and municipal obligations	68,934		68,934	—	68,934	—
Corporate obligations	38,645		38,645	—	38,645	—
Total available for sale debt securities	$	1,216,936	1,216,936	—	1,216,936	—
Held to maturity debt securities, net of allowance for credit losses:
Agency obligations	8,998		8,904	8,904	—	—
Mortgage-backed securities	50		51	—	51	—
State and municipal obligations	428,571		444,776	—	444,776	—
Corporate obligations	10,283		10,262	—	10,262	—
Total held to maturity debt securities, net of allowance for credit losses	$	447,902	463,993	8,904	455,089	—
FHLBNY stock	48,998		48,998	48,998	—	—
Equity Securities	1,026		1,026	1,026	—	—
Loans, net of allowance for credit losses	9,717,945		9,857,891	—	—	9,857,891
Derivative assets	76,542		76,542	—	76,542	—
Financial liabilities:
Deposits other than certificates of deposits	$	9,334,509	9,334,509	9,334,509	—	—
Certificates of deposit	963,004		967,088	—	967,088	—
Total deposits	$	10,297,513	10,301,597	9,334,509	967,088	—
Borrowings	940,611		945,538	—	945,538	—
Subordinated debentures	25,173		30,325	—	30,325	—
Derivative liabilities	78,228		78,228	—	78,228	—

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			Fair Value Measurements at December 31, 2020 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	$	532,353	532,353	532,353	—	—
Available for sale debt securities:
U.S. Treasury obligations			—	—	—	—
Agency obligations	1,009		1,009	1,009	—	—
Mortgage-backed securities	938,413		938,413	—	938,413	—
Asset-backed securities	53,830		53,830		53,830
State and municipal obligations	71,258		71,258	—	71,258	—
Corporate obligations	40,979		40,979	—	40,979	—
Total available for sale debt securities	$	1,105,489	1,105,489	1,009	1,104,480	—
Held to maturity debt securities:
Agency obligations	$	7,600	7,601	7,601	—	—
Mortgage-backed securities	62		64	—	64	—
State and municipal obligations	433,589		454,973	—	454,973	—
Corporate obligations	9,714		9,813	—	9,813	—
Total held to maturity debt securities, net of allowance for credit losses	$	450,965	472,451	7,601	464,850	—
FHLBNY stock	59,489		59,489	59,489	—	—
Equity securities	971		971	971	—	—
Loans, net of allowance for credit losses	9,721,424		9,969,330	—	—	9,969,330
Derivative assets	101,079		101,079	—	101,079	—
Financial liabilities:
Deposits other than certificates of deposits	$	8,743,655	8,743,655	8,743,655	—	—
Certificates of deposit	1,094,174		1,097,993	—	1,097,993	—
Total deposits	$	9,837,829	9,841,648	8,743,655	1,097,993	—
Borrowings	1,175,972		1,193,024	—	1,193,024	—
Subordinated debentures	25,135		24,375	—	24,375	—
Derivative liabilities	109,148		109,148	—	109,148	—

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Note 10. Other Comprehensive Income

The following table presents the components of other comprehensive (loss) income, both gross and net of tax, for the three months ended March 31, 2021 and 2020 (in thousands):

	Three months ended March 31,
	2021				2020
	Before Tax		Tax Effect	After Tax	Before Tax	Tax Effect	After Tax
Components of Other Comprehensive (Loss) Income:
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	$	(12,152)	3,133	(9,019)	22,563	(5,817)	16,746
Reclassification adjustment for gains included in net income	(230)		59	(171)	—	—	—
Total	(12,382)		3,192	(9,190)	22,563	(5,817)	16,746
Unrealized gains (losses) on derivatives (cash flow hedges)	6,226		(1,605)	4,621	(7,697)	1,984	(5,713)
Amortization related to post-retirement obligations	(150)		41	(109)	112	(28)	84
Total other comprehensive (loss) income	$	(6,306)	1,628	(4,678)	14,978	(3,861)	11,117

The following tables present the changes in the components of accumulated other comprehensive income, net of tax, for the three months ended March 31, 2021 and 2020 (in thousands):

	Changes in Accumulated Other Comprehensive Income (Loss) by Component, net of tax for the three months ended March 31,
	2021					2020
	Unrealized Gains (Losses) on Available for Sale Debt Securities		Post- Retirement Obligations	Unrealized (Losses) Gains on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Income (Loss)	Unrealized Gains on  Available for Sale Debt Securities	Post-  Retirement Obligations	Unrealized Gains (Losses) on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Income
Balance at December 31,	$	23,690	(1,081)	(4,954)	17,655	8,746	(5,240)	315	3,821
Current - period other comprehensive (loss) income	(9,190)		(109)	4,621	(4,678)	16,746	84	(5,713)	11,117
Balance at March 31,	$	14,500	(1,190)	(333)	12,977	25,492	(5,156)	(5,398)	14,938

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The following tables summarize the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income for the three months ended March 31, 2021 and 2020 (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
	2021		2020
Details of AOCI:
Available for sale debt securities:
Realized net gains on the sale of securities available for sale	$	230	—	Net gain on securities transactions
	(59)		—	Income tax expense
	171		—	Net of tax
Post-retirement obligations:
Amortization of actuarial (losses) gains	$	(150)	112	Compensation and employee benefits (1)
	41		(28)	Income tax expense
Total reclassification	$	(109)	84	Net of tax

(1) This item is included in the computation of net periodic benefit cost. See Note 6. Components of Net Periodic Benefit Cost.

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Note 11. 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 the 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 which, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company may execute 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, 2021 and December 31, 2020, the Company had 174 and 172 loan related interest rate swaps, respectively, with aggregate notional amounts of $2.62 billion and $2.63 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 RPAs are entered into to manage the credit exposure on interest rate contracts associated with these loan participation agreements. Under the RPAs, the Company will either receive or make a payment in the event the borrower defaults on the related interest rate contract. The Company has minimum collateral posting thresholds with certain of its risk participation counterparties, and has posted collateral of $650,000 against the potential risk of default by the borrower under these agreements. At March 31, 2021 and December 31, 2020, the Company had 13 credit derivatives, with aggregate notional amounts of $131.4 million and $121.7 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements. At March 31, 2021 and December 31, 2020, the fair value of these credit derivatives were $96,000 and $97,000, 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 payment 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. 

Changes in the fair value of derivatives designated and that qualify as cash flow hedges of interest rate risk 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, 2021 and 2020, such derivatives were used to hedge the variable cash outflows associated with borrowings and brokered money market deposits.

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 $3.5 million will be reclassified as an increase to interest expense. As of March 31, 2021, the Company had 14 outstanding interest rate derivatives with an aggregate notional amount of $600.0 million that were each designated as a cash flow hedge of interest rate risk.

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The tables below presents 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, 2021 and December 31, 2020 (in thousands):

	At March 31, 2021
	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	$	74,668	Other liabilities	$	75,740
Credit contracts	Other assets	96		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	74,764		$	75,740
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	1,778	Other liabilities	$	2,488
Total derivatives designated as a hedging instrument		$	1,778		$	2,488

	At December 31, 2020
	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	$	107,652	Other liabilities	$	109,148
Credit contracts	Other assets	97		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	107,749		$	109,148
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	(6,671)	Other liabilities	$	—
Total derivatives designated as a hedging instrument		$	(6,671)		$	—

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three months ended March 31, 2021 and 2020 (in thousands).

		Gain (loss) recognized in income on derivatives for the three months ended
	Consolidated Statements of Income	March 31, 2021		March 31, 2020
Derivatives not designated as a hedging instrument:
Interest rate products	Other income	$	400	(819)
Credit contracts	Other income	23		(1)
Total		$	423	(820)
Derivatives designated as a hedging instrument:
		Loss recognized in  expense on derivatives
Interest rate products	Interest expense	$	879	106
Total		$	879	106

The Company has agreements with certain of its dealer counterparties which 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 deemed in default on its derivative obligations.

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In addition, the Company has agreements with certain of its dealer counterparties which contain a provision that if the Company fails to maintain its status as a well or 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, 2021, the Company had four dealer counterparties. The Company had a net liability position with respect to all four of the counterparties. The termination value for this net liability position, which includes accrued interest, was $38.5 million at March 31, 2021. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $42.0 million against its obligations under these agreements. If the Company had breached any of these provisions at March 31, 2021, it could have been required to settle its obligations under the agreements at the termination value.

Note 12. 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, 2021 and 2020, the out-of-scope revenue related to financial instruments was 82.3% and 84% 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, insurance agency income 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, 2021 and 2020:

	Three months ended March 31,
(in-thousands)	2021		2020
Non-interest income
In-scope of Topic 606:
Wealth management fees	$	7,134	6,251
Insurance agency income	2,727		—
Banking service charges and other fees:
Service charges on deposit accounts	2,497		2,977
Debit card and ATM fees	1,778		1,210
Total banking service charges and other fees	4,275		4,187
Total in-scope non-interest income	14,136		10,438
Total out-of-scope non-interest income	7,501		6,553
Total non-interest income	$	21,637	16,991

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 generally based upon the average market value of the assets under management ("AUM") 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 on a 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.

Insurance agency income, consisting of commissions and fees, is generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments. Profit-sharing contingent commissions are recognized when determinable, which is generally when such commissions are received from insurance companies, or when the Company receives formal notification of the amount of such payments.

39

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.

Note 13. Leases

The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities at March 31, 2021 and December 31, 2020 (in thousands):

	Classification	March 31, 2021		December 31, 2020
Lease Right-of-Use Assets:
Operating lease right-of-use assets	Other assets	$	40,960	$	41,142
Lease Liabilities:
Operating lease liabilities	Other liabilities	$	42,323	$	42,042

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 in 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.

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

At March 31, 2021, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 8.8 years and 3.14%, respectively.

The following tables represent 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):

	Three months ended March 31, 2021		Three months ended March 31, 2020
Lease Costs
Operating lease cost	$	2,812	$	2,130
Variable lease cost	803		607
Total lease cost	$	3,615	$	2,737

Cash paid for amounts included in the measurement of lease liabilities:	Three months ended March 31, 2021		Three months ended March 31, 2020
Operating cash flows from operating leases	$	2,345	2,125

40

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2021 were as follows (in thousands):

	Operating leases
Twelve months ended:
Remainder of 2021	$	6,472
2022	6,391
2023	5,878
2024	5,475
2025	4,887
Thereafter	20,027
Total future minimum lease payments	49,130
Amounts representing interest	6,807
Present value of net future minimum lease payments	$	42,323

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 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.

In addition, COVID-19 continues to have an adverse impact on the Company, its customers and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the pandemic on the Company's business, financial condition or results of operations. The extent of such impact will depend on future developments, which are highly uncertain, including when the pandemic will be controlled and abated, and the extent to which the economy can remain open. As the result of the pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to remain substantially open, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for credit losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income; our wealth management revenues may decline with continuing market turmoil; we may face the risk of a goodwill write-down due to stock price decline; and our cyber security risks are increased as the result of an increase in the number of employees working remotely.

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

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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

SB One Bancorp Acquisition

On July 31, 2020, the Company completed its acquisition of SB One Bancorp ("SB One"), which added $2.20 billion to total assets, $1.77 billion to total loans and $1.76 billion to total deposits, and added 18 full-service banking offices in New Jersey and New York. As part of the acquisition, the addition of SB One Insurance Agency allows the Company to expand its products offerings to its customers to include an array of commercial and personal insurance products.

Under the merger agreement, each share of outstanding SB One common stock was exchanged for 1.357 shares of the Company's common stock. The Company issued 12.8 million shares of common stock from treasury stock, plus cash in lieu of fractional shares in the acquisition of SB One. The total consideration paid for the acquisition of SB One was $180.8 million. In connection with the acquisition, SB One Bank, a wholly owned subsidiary of SB One, was merged with and into Provident Bank, a wholly owned subsidiary of the Company.

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 credit losses; and

•Valuation of deferred tax assets

On January 1, 2020, the Company adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. It also applies to off-balance sheet credit exposures, including loan commitments and lines of credit. The adoption of the new standard resulted in the Company recording a $7.9 million increase to the allowance for credit losses and a $3.2 million liability for off-balance sheet credit exposures. The adoption of the standard did not result in a change to the Company's results of operations upon adoption as it was recorded as an $8.3 million cumulative effect adjustment, net of income taxes, to retained earnings.

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

The calculation of the allowance for credit losses is a critical accounting policy of the Company. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate (“PDR”) curves through the use of segment-specific loss given default (“LGD”) risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical PDR curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using an externally developed economic forecast. This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four quarter reversion period to historical average macroeconomic factors. The Company's economic forecast is approved by the Company's Asset-Liability Committee.

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The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each segment is measured using an econometric, discounted PD/LGD modeling methodology in which distinct, segment-specific multi-variate regression models are applied to an external economic forecast. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for modeled cash flows, adjusted for modeled defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring (“TDR”) will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

After quantitative considerations, management applies additional qualitative adjustments so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date. Qualitative considerations include limitations inherent in the quantitative model; portfolio concentrations that may affect loss experience across one or more components of the portfolio; changes in industry conditions; changes in the Company’s loan review process; changes in the Company's loan policies and procedures, economic forecast uncertainty and model imprecision.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating loss based on type of borrower and collateral which is generally based upon federal call report segmentation and have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. As of March 31, 2021, the portfolio and class segments for the Company’s loan portfolio were:

•Mortgage Loans – Residential, Commercial Real Estate, Multi-Family and Construction

•Commercial Loans – Commercial Owner Occupied and Commercial Non-Owner Occupied

•Consumer Loans – First Lien Home Equity and Other Consumer

The allowance for credit losses on loans individually evaluated for impairment is based upon loans that have been identified through the Company’s normal loan monitoring process. This process includes the review of delinquent and problem loans at the Company’s Delinquency, Credit, Credit Risk Management and Allowance Committees; or which may be identified through the Company’s loan review process. Generally, the Company only evaluates loans individually for impairment if the loan is non-accrual, non-homogeneous and the balance is at least $1.0 million, or if the loan was modified in a TDR.

For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the fair value of the collateral less any selling costs. If the loan is not collateral dependent, the allowance for credit losses related to individually assessed loans is based on discounted expected cash flows using the loan’s initial effective interest rate.

A loan for which the terms have been modified resulting in a concession by the Company, and for which the borrower is experiencing financial difficulties is considered to be a TDR. The allowance for credit losses on a TDR is measured using the same method as all other impaired loans, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring.

As previously noted, in accordance with the CARES Act, the Company elected to not apply troubled debt restructuring classification to any COVID-19 related loan modifications that occurred after March 1, 2020 to borrowers who were current as of December 31, 2019. Accordingly, these modifications were not classified as TDRs. In addition, for loans modified in response to COVID-19 that did not meet the above criteria (e.g., current payment status at December 31, 2019), the Company applied the guidance included in an interagency statement issued by the bank regulatory agencies. This guidance states that loan modifications performed in light of COVID-19, including loan payment deferrals that are up to six months in duration, that were granted to borrowers who were current as of the implementation date of a loan modification program or modifications granted under government mandated modification programs, are not TDRs.

Loans that have been or are expected to be granted short-term COVID-19 related deferrals have decreased from a peak level of $1.31 billion, or 16.8% of loans, to $132.0 million, or 1.3% of loans as of April 20, 2021. This $132.0 million of loans consists of $300,000 in a first 90-day deferral period, $46.6 million in a second 90-day deferral period, and $85.1 million in a third deferral period. Of the $123.5 million in commercial loans in deferral, $119.0 million (96.4%) are under principal only deferral and are paying interest. Included in the $132.0 million of total loans in deferral, $40.9 million are secured by hotels, $33.1 million are secured by multi-family properties (of which $20.1 million is student housing related), $8.6 million are secured by retail properties, $6.5 million are secured by restaurants, and $8.5 million are secured by residential mortgages, with the balance comprised of diverse commercial loans.

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For loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination are considered PCD loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. Subsequent to the acquisition date, the initial allowance for credit losses on PCD loans will increase or decrease based on future evaluations, with changes recognized in the provision for credit 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. As the impact of COVID-19 continues to unfold, the effectiveness of medical advances, government programs, and the resulting impact on consumer behavior and employment conditions will have a material bearing on future credit conditions. Any one or a combination of these events may adversely affect borrowers’ ability to repay the loans, resulting in increased delinquencies, credit losses and higher levels of provisions. Management considers it important to maintain the ratio of the allowance for credit losses to total loans at an acceptable level given current and forecasted economic conditions, interest rates and the composition of the portfolio.

Although management believes that the Company has established and maintained the allowance for credit losses at appropriate levels, additions may be necessary if future economic and other conditions differ substantially from the current operating environment and economic forecast. Management evaluates its estimates and assumptions on an ongoing basis giving consideration to forecasted economic factors, historical loss experience and other factors. Such estimates and assumptions are adjusted when facts and circumstances dictate. In addition to the ongoing impact of COVID-19, illiquid credit markets, volatile securities markets, and declines in the housing and commercial real estate markets and the economy in general may 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 credit 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 credit losses remains an estimate that is subject to significant judgment and short-term change.

The CECL approach to calculate the allowance for credit losses on loans is significantly influenced by the composition, characteristics and quality of the Company’s loan portfolio, as well as the prevailing economic conditions and forecast utilized. Material changes to these and other relevant factors creates greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. For the three months ended March 31, 2021, the changing economic forecasts attributable to COVID-19 and projected economic recovery led to the Company recording negative provisions for credit losses and off-balance sheet credit exposures. See Note 4 to the Consolidated Financial Statements and the Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for more information on the allowance for credit losses on loans.

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, 2021 or December 31, 2020.

COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2021 AND DECEMBER 31, 2020

Total assets at March 31, 2021 were $13.13 billion, a $210.7 million increase from December 31, 2020. The increase in total assets was primarily due to a $155.2 million increase in cash and cash equivalents and a $97.9 million increase in total investments.

The loan portfolio decreased $19.4 million from December 31, 2020 to $9.80 billion at March 31, 2021, despite strong originations, as prepayments, including Paycheck Protection Program ("PPP") loan forgiveness, were elevated. For the three months ended March 31, 2021, loan originations, including advances on lines of credit, totaled $770.5 million, compared with $678.3 million for the same period in 2020. During the quarter ended March 31, 2021, the Company originated $190.1 million of loans under the current round of the PPP. Total PPP loans outstanding increased to $486.6 million at March 31, 2021, from

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$473.2 million at December 31, 2020. In addition to net growth in PPP loans, the Company had net growth in commercial real estate and construction loans during the three months ended March 31, 2021, with all other loan categories decreasing. Commercial real estate, commercial and construction loans represented 83.3% of the loan portfolio at March 31, 2021, compared to 81.8% at December 31, 2020.

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 $198.5 million and $99.7 million, respectively, at March 31, 2021, compared to $225.4 million and $110.6 million, respectively, at December 31, 2020. One SNC relationship consisting of two individual loans was 90 days or more delinquent at March 31, 2021. All of these loans are unsecured/non-real estate secured. These loans are currently not paying in accordance with their restructured terms. The Company's share of the outstanding balances for this substandard SNC relationship totaled $10.2 million.

The Company had outstanding junior lien mortgages totaling $156.4 million at March 31, 2021. Of this total, 14 loans totaling $1.9 million were 90 days or more delinquent. These loans were allocated a total loss reserve of $51,000.

The following table sets forth information regarding the Company’s non-performing assets as of March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021		December 31, 2020
Mortgage loans:
Residential	$	7,797	9,315
Commercial	33,742		31,982
Multi-family	101		—
Construction	1,392		1,392
Total mortgage loans	43,032		42,689
Commercial loans	36,042		42,118
Consumer loans	3,010		2,283
Total non-performing loans	82,084		87,090
Foreclosed assets	3,554		4,475
Total non-performing assets	$	85,638	91,565

The following table sets forth information regarding the Company’s 60-89 day delinquent loans as of March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021		December 31, 2020
Mortgage loans:
Residential	$	6,161	8,852
Commercial	520		113
Multi-family	—		585
Construction	1656		—
Total mortgage loans	8,337		9,550
Commercial loans	235		1,179
Consumer loans	277		4,519
Total 60-89 day delinquent loans	$	8,849	15,248

At March 31, 2021, the Company’s allowance for credit losses related to the loan portfolio was 0.87% of total loans, compared to 1.03% and 1.02% at December 31, 2020 and March 31, 2020, respectively. Excluding PPP loans, the Company’s allowance for credit losses related to the loan portfolio was 0.92% at March 31, 2021. The Company recorded a $15.0 million negative provision for credit losses related to loans for the three months ended March 31, 2021, compared with a $14.7 million provision for credit losses for the three months ended March 31, 2020. For the three months ended March 31, 2021, the Company had net charge-offs of $875,000, compared to net charge-offs of $3.0 million for the same period in 2020. The allowance for loan losses decreased $15.9 million to $85.6 million at March 31, 2021 from $101.5 million at December 31, 2020. The negative provision for credit losses for the first quarter of 2021 was primarily the result of an improved economic forecast and the resultant favorable impact on expected credit losses, compared with a provision for credit losses for the prior year, which was based upon a weak economic forecast and more uncertain outlook attributable to COVID-19. Future credit loss provisions are subject to significant uncertainty given the undetermined nature of prospective changes in economic conditions, as the impact of COVID-19 and recovery continues to unfold. The effectiveness of medical advances, government programs, and the

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resulting impact on consumer behavior and employment conditions will have a material bearing on future credit conditions and reserve requirements.

At March 31, 2021 and December 31, 2020, the Company held foreclosed assets of $3.6 million and $4.5 million, respectively. During the three months ended March 31, 2021, there were two additions to foreclosed assets with an aggregate carrying value of $434,000, four assets sold with an aggregate carrying value of $580,000 and valuation charges of $775,000. Foreclosed assets at March 31, 2021 consisted of $2.6 million of commercial real estate, $434,000 of residential real estate and $530,000 of commercial vehicles.

Total non-performing loans were $82.1 million, or 0.84% of total loans at March 31, 2021, compared to $87.1 million, or 0.89% of total loans at December 31, 2020.

Cash and cash equivalents were $687.6 million at March 31, 2021, a $155.2 million increase from December 31, 2020, due to net deposit inflows and loan repayments, largely attributable to government stimulus programs, proceeds from the forgiveness of PPP loan and a seasonal increase in municipal deposits.

Total investments were $1.71 billion at March 31, 2021, a $97.9 million increase from December 31, 2020. This increase was primarily due to purchases of mortgage-backed and municipal securities, partially offset by repayments of mortgage-backed securities, maturities and calls of certain municipal and agency bonds, and a decrease in unrealized gains on available for sale debt securities.

Total deposits increased $459.7 million during the three months ended March 31, 2021 to $10.30 billion. Total core deposits, consisting of savings and demand deposit accounts, increased $590.9 million to $9.33 billion at March 31, 2021, while total time deposits decreased $131.2 million to $963.0 million at March 31, 2021. The increase in core deposits was largely attributable to a $266.5 million increase in interest bearing demand deposits, a $169.9 million increase in non-interest bearing demand deposits, a $100.2 million increase in money market deposits and a $54.2 million increase in savings deposits. Core deposit growth benefited from the deposit of PPP loan proceeds and government stimulus payments. The decrease in time deposits was largely the result of a $75.1 million decrease in brokered deposits and a $56.1 million decrease in retail time deposits. Core deposits represented 90.6% of total deposits at March 31, 2021, compared to 88.9% at December 31, 2020.

Borrowed funds decreased $235.4 million during the three months ended March 31, 2021, to $940.6 million. The decrease in borrowings for the period was primarily a function of wholesale funding being partially replaced by the net inflows of lower-costing deposits. Borrowed funds represented 7.2% of total assets at March 31, 2021, a decrease from 9.1% at December 31, 2020.

Stockholders’ equity increased $27.4 million during the three months ended March 31, 2021, to $1.65 billion, primarily due to net income earned for the period, partially offset by dividends paid to stockholders, a decrease in unrealized gains on available for sale debt securities and common stock repurchases. For the three months ended March 31, 2021, common stock repurchases totaled 44,937 shares at an average cost of $21.42 per share, of which 42,224 shares, at an average cost of $21.67 per share, were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. At March 31, 2021, approximately 4.1 million shares remained eligible for repurchase under the current stock repurchase authorization.

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, COVID-19 and related government response and the competitive marketplace can influence loan prepayments, prepayments on mortgage-backed securities and deposit flows. For each of the years ended March 31, 2021 and 2020, loan repayments totaled $773.5 million and $633.2 billion, respectively.

In response to COVID-19, the Company has escalated the monitoring of deposit behavior, utilization of credit lines, and borrowing capacity with the FHLBNY and FRBNY, and is enhancing its collateral position with these funding sources.

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

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Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets) and assigned a higher risk weight (150%) to exposures that are more than 90 days past due or are on non-accrual 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.

In the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule providing banking institutions that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five year transition in total). In connection with its adoption of CECL on January 1, 2020, the Company elected to utilize the five-year CECL transition.

At March 31, 2021, the Bank and the Company exceeded all current minimum regulatory capital requirements as follows:

	March 31, 2021
	Required				Required with Capital Conservation Buffer				Actual
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Bank:(1)
Tier 1 leverage capital	$	502,556	4.00	%	$	502,556	4.00	%	$	1,112,034	8.85	%
Common equity Tier 1 risk-based capital	482,030		4.50		749,825		7.00		1,112,034		10.38
Tier 1 risk-based capital	642,707		6.00		910,502		8.50		1,112,034		10.38
Total risk-based capital	856,943		8.00		1,124,738		10.50		1,197,762		11.18
Company:
Tier 1 leverage capital	$	502,770	4.00	%	$	502,770	4.00	%	$	1,182,231	9.41	%
Common equity Tier 1 risk-based capital	482,255		4.50		750,174		7.00		1,169,344		10.91
Tier 1 risk-based capital	643,006		6.00		910,926		8.50		1,182,231		11.03
Total risk-based capital	857,342		8.00		1,125,261		10.50		1,280,245		11.95

(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 THREE MONTHS ENDED MARCH 31, 2021 AND 2020

General. The Company reported net income of $48.6 million, or $0.63 per basic and diluted share, for the three months ended March 31, 2021, compared to net income of $14.9 million, or $0.23 per basic and diluted share, for the three months ended March 31, 2020.

Earnings for the quarter were aided by an improved economic outlook and resulting lower allowance for credit loss requirements, as well as additional earnings attributable to the July 31, 2020 acquisition of SB One Bancorp ("SB One"). For the three months ended March 31, 2021, the Company recorded a negative provision for credit losses on loans of $15.0 million and a negative provision for off-balance sheet credit exposures of $875,000.

Net Interest Income. Total net interest income increased $18.0 million to $90.0 million for the quarter ended March 31, 2021, from $72.0 million for the quarter ended March 31, 2020. For the three months ended March 31, 2021, interest income increased $12.4 million to $100.5 million, from $88.2 million for the three months ended March 31, 2020. Interest expense decreased $5.6 million to $10.5 million for the quarter ended March 31, 2021, from $16.1 million for the quarter ended March 31, 2020. The increase in net interest income was favorably impacted by the net earning assets acquired from SB One and the accelerated recognition of fees related to PPP loan forgiveness, partially offset by period-over-period compression in the net interest margin. The degree of net interest margin compression was tempered by growth in both average loans outstanding and lower-costing average interest-bearing and non-interest bearing core deposits.

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The net interest margin decreased 10 basis points to 3.10% for the quarter ended March 31, 2021, compared to 3.20% for the quarter ended March 31, 2020. The weighted average yield on interest-earning assets decreased 45 basis points to 3.47% for the quarter ended March 31, 2021, compared to 3.92% for the quarter ended March 31, 2020, while the weighted average cost of interest bearing liabilities decreased 46 basis points for the quarter ended March 31, 2021 to 0.49%, compared to the first quarter of 2020. The average cost of interest bearing deposits for the quarter ended March 31, 2021 was 0.39%, compared to 0.78% for the same period last year. Average non-interest bearing demand deposits totaled $2.38 billion for the quarter ended March 31, 2021, compared to $1.50 billion for the quarter ended March 31, 2020. The average cost of all deposits, including non-interest bearing deposits, was 0.30% for the quarter ended March 31, 2021, compared with 0.62% for the quarter ended March 31, 2020. The average cost of borrowed funds for the quarter ended March 31, 2021 was 1.12%, compared to 1.80% for the same period last year.

Interest income on loans secured by real estate increased $7.6 million to $62.0 million for the three months ended March 31, 2021, from $54.4 million for the three months ended March 31, 2020. Commercial loan interest income increased $7.5 million to $26.1 million for the three months ended March 31, 2021, from $18.7 million for the three months ended March 31, 2020. Consumer loan interest income decreased $680,000 to $3.5 million for the three months ended March 31, 2021, from $4.2 million for the three months ended March 31, 2020. For the three months ended March 31, 2021, the average balance of total loans increased $2.47 billion to $9.72 billion, from $7.26 billion for the same period in 2020, primarily due to total loans acquired from SB One and organic growth, including PPP loans. The average yield on total loans for the three months ended March 31, 2021 decreased 45 basis points to 3.78%, from 4.23% for the same period in 2020.

Interest income on held to maturity debt securities decreased $156,000 to $2.8 million for the quarter ended March 31, 2021, compared to the same period last year. Average held to maturity debt securities increased $1.3 million to $450.4 million for the quarter ended March 31, 2021, from $449.1 million for the same period last year.

Interest income on available for sale debt securities and FHLBNY stock decreased $1.5 million to $5.6 million for the quarter ended March 31, 2021, from $7.1 million for the quarter ended March 31, 2020. The average balance of available for sale debt securities and FHLBNY stock increased $125.6 million to $1.19 billion for the three months ended March 31, 2021, compared to the same period in 2020.

The average yield on total securities decreased to 1.87% for the three months ended March 31, 2021, compared with 2.57% for the same period in 2020.

Interest expense on deposit accounts decreased $3.5 million to $7.4 million for the quarter ended March 31, 2021, compared with $11.0 million for the quarter ended March 31, 2020. The average cost of interest bearing deposits decreased to 0.39% for the three months ended March 31, 2021, from 0.78% for the three months ended March 31, 2020, respectively. The average balance of interest bearing core deposits for the quarter ended March 31, 2021 increased $1.79 billion to $6.69 billion, from $4.89 billion for the same period in 2020. The increase in average core deposits for the three months ended March 31, 2021 was largely due to deposits acquired from SB One, combined with organic growth, activity associated with PPP loans and government stimulus payments. Average time deposit account balances increased $271.9 million, to $1.04 billion for the quarter ended March 31, 2021, from $771.2 million for the quarter ended March 31, 2020, largely due to time deposits associated with the SB One acquisition.

Interest expense on borrowed funds decreased $2.4 million to $2.8 million for the quarter ended March 31, 2021, from $5.2 million for the quarter ended March 31, 2020. The average cost of borrowings decreased to 1.12% for the three months ended March 31, 2021, from 1.80% for the three months ended March 31, 2020. Average borrowings decreased $142.5 million to $1.02 billion for the quarter ended March 31, 2021, from $1.16 billion for the quarter ended March 31, 2020.

Provision for Credit Losses. Provisions for credit losses are charged to operations in order to maintain the allowance for credit losses at a level management considers necessary to absorb projected credit losses that may arise over the expected term of each loan in the portfolio. In determining the level of the allowance for credit losses, management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and a reasonable and supportable forecast. 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 credit losses on a quarterly basis and makes provisions for credit losses, if necessary, in order to maintain the valuation of the allowance.

The Company recorded a $15.0 million negative provision for credit losses related to loans for the three months ended March 31, 2021, compared with provisions of $14.7 million for the three months ended March 31, 2020. The negative provision for credit losses for the first quarter of 2021 was primarily the result of an improved economic forecast and the resultant favorable impact on expected credit losses, compared with a provision for credit losses for the prior year, which was based upon a weak

48

economic forecast and a more uncertain outlook attributable to COVID-19. Future credit loss provisions are subject to significant uncertainty given the undetermined nature of prospective changes in economic conditions, as the impact of COVID-19 and recovery continues to unfold. The effectiveness of medical advances, government programs, and the resulting impact on consumer behavior and employment conditions will have a material bearing on future credit conditions and reserve requirements.

Non-Interest Income. Non-interest income totaled $21.6 million for the quarter ended March 31, 2021, an increase of $4.6 million, compared to the same period in 2020. Insurance agency income, a new fee revenue source for the Company resulting from the SB One acquisition, totaled $2.7 million for the three months ended March 31, 2021. Income from Bank-owned life insurance ("BOLI") increased $1.8 million to $2.6 million for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to an increase in benefit claims, increased equity valuations and additional income related to the BOLI assets acquired from SB One. Wealth management income increased $883,000 to $7.1 million for the three months ended March 31, 2021. The increase was largely a function of an increase in the market value of assets under management as a result of strong equity market performance and solid new business results, and an increase in the level of managed mutual funds. Also, fee income increased $663,000 to $7.2 million for the three months ended March 31, 2021, compared to the same period in 2020, largely due to an increase in ATM and debit card revenue, a portion of which is attributable to the addition of the SB One customer base, and increases in commercial loan prepayment fees and late charges, partially offset by a decrease in deposit-related fees. Other income decreased $1.6 million to $1.8 million for the three months ended March 31, 2021, compared to the quarter ended March 31, 2020, primarily due to a $1.8 million decrease in net fees on loan-level interest rate swap transactions, partially offset by a $455,000 increase in net gains on the sale of loans.

Non-Interest Expense. For the three months ended March 31, 2021, non-interest expense totaled $61.9 million, an increase of $7.7 million, compared to the three months ended March 31, 2020. Compensation and benefits expense increased $4.1 million to $35.3 million for the three months ended March 31, 2021, compared to $31.2 million for the same period in 2020. The increase was principally due to increases in salary expense, the accrual for incentive compensation and employee benefits, each associated with the addition of former SB One employees, as well as company-wide annual merit increases, partially offset by a decrease in severance expense. Net occupancy expense increased $3.1 million primarily due to increases in rent, depreciation, utility and maintenance expenses related to the facilities acquired from SB One, along with an increase in snow removal costs. FDIC insurance increased $1.8 million due to an increase in the insurance assessment rate, an increase in total assets subject to assessment, including assets acquired from SB One, and the receipt of the small bank assessment credit in the prior year quarter that was not available in the current quarter. Other operating expenses increased $937,000 to $10.1 million for the three months ended March 31, 2021, compared to $9.2 million for the same period in 2020. The increase in other operating expense was largely due to a valuation adjustment on foreclosed assets and an increase in debit card maintenance expense, partially offset by non-recurring merger related and COVID-19 expenses incurred in the prior year quarter. Also, the amortization of intangibles increased $228,000 for the three months ended March 31, 2021, compared with the same period in 2020, mainly due to increases in the amortization of the customer relationship and core-deposit intangibles attributable to the acquisition of SB One. Partially offsetting these increases, credit loss expense for off-balance sheet credit exposures decreased $1.9 million for the three months ended March 31, 2021, compared to the same period in 2020. The decrease was primarily a function of an improved economic forecast resulting in a decline in projected loss factors, partially offset by an increase in the availability of committed lines of credit due to below average utilization.

Income Tax Expense. For the three months ended March 31, 2021, income tax expense was $16.2 million with an effective tax rate of 25.0%, compared with income tax expense of $5.3 million with an effective tax rate of 26.0% for the three months ended March 31, 2020. The increase in tax expense for the three months ended March 31, 2021, compared with the same period last year was largely the result of an increase in taxable income, while the decrease in the effective tax rate for the three months ended March 31, 2021 compared with the same period in 2020 was primarily due to a discrete item related to the vesting of stock awards at a market value below the fair value used for expense recognition which resulted in a higher effective tax rate in the prior year, partially offset by increased projections of taxable income for the remainder of 2021.

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 residential mortgage loans at origination. The Company retains residential fixed rate mortgages with terms of 15 years or less and biweekly payment residential mortgages with a term of 30 years or less. 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.

49

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, subject to certain interest rate floors; and

•Higher-balance demand deposit tiers and promotional demand accounts move at 50% to 75% of the rate ramp in either direction, subject to certain interest rate floors.

The following table sets forth the results of a twelve-month net interest income projection model as of March 31, 2021 (dollars in thousands):

Change in interest rates (basis points) - Rate Ramp	Net Interest Income
	Dollar Amount		Dollar Change		Percent Change
-100	$	330,246	$	(11,175)	(3.3)	%
Static	341,421		—		—
+100	344,136		2,715		0.8
+200	346,903		5,482		1.6
+300	349,477		8,056		2.4

The preceding table indicates that, as of March 31, 2021, 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 increase 2.4%, or $8.1 million. In the event of a 100 basis point decrease in interest rates, net interest income would decrease 3.3%, or $11.2 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, 2021 (dollars in thousands):

50

	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	$	1,451,808	$	(204,394)	(12.3)	%	10.7	%	(14.2)	%
Flat	1,656,202		—		—		12.5		—
+100	1,707,465		51,263		3.1		13.2		5.3
+200	1,744,322		88,120		5.3		13.7		10.0
+300	1,774,522		118,320		7.1		14.3		14.2

The preceding table indicates that as of March 31, 2021, in the event of an immediate and sustained 300 basis point increase in interest rates, the present value of equity is projected to increase 7.1%, or $118.3 million. If rates were to decrease 100 basis points, the present value of equity would decrease 12.3%, or $204.4 million.

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.

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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. The Company’s internal control over financial reporting was modified due to the January 1, 2020 adoption of CECL and controls related to SB One.

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 were no changes to the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

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, 2021 through January 31, 2021	2,713	$	17.50	2,713	4,113,773
February 1, 2021 through February 28, 2021	42,224	21.67		42,224	4,071,549
March 1, 2021 through March 31, 2021	—	—		—	4,071,549
Total	44,937	21.42		44,937

(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 which commenced upon completion of the seventh repurchase program. The repurchase program has no expiration date. On December 28, 2020, the Company’s Board of Directors approved the purchase of up to 3,900,000 shares of its common stock under a ninth general repurchase program to commence upon completion of the eighth 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

52

Item 6. Exhibits.

The following exhibits are filed herewith:

2.1	Agreement and Plan of Merger, dated March 11, 2020, by and between Provident Financial Services, Inc. and SB One Bancorp. (Filed as an exhibit to the Company's Current Report on Form 8-K on March 12, 2020 with the Securities and Exchange Commission/Registration No. 001-31566.
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 financial statements from the Company’s Quarterly Report to Stockholders on Form 10-Q for the quarter ended March 31, 2021, formatted in iXBRL (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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, has been formatted in iXBRL.

53

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, 2021	By:	/s/ Christopher Martin
			Christopher Martin
			Chairman and Chief Executive Officer (Principal Executive Officer)
Date:	May 10, 2021	By:	/s/ Thomas M. Lyons
			Thomas M. Lyons
			Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date:	May 10, 2021	By:	/s/ Frank S. Muzio
			Frank S. Muzio
			Executive Vice President and Chief Accounting Officer

54

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, 2021	/s/ Christopher Martin
		Christopher Martin
		Chairman 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, 2021	/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, 2021 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, 2021	/s/ Christopher Martin
		Christopher Martin
		Chairman and Chief Executive Officer
Date:	May 10, 2021	/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

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-31566
Entity Registrant Name	PROVIDENT FINANCIAL SERVICES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	42-1547151
Entity Address, Address Line One	239 Washington Street
Entity Address, City or Town	Jersey City
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07302
City Area Code	732
Local Phone Number	590-9200
Title of 12(b) Security	Common
Trading Symbol	PFS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		77,966,795
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001178970

XML

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 559,235	$ 404,355
Short-term investments	128,335	127,998
Total cash and cash equivalents	687,570	532,353
Available for sale debt securities, at fair value	1,216,936	1,105,489
Held to maturity debt securities, net (fair value of $463,993 at March 31, 2021 (unaudited) and $472,529 at December 31, 2020)	447,902	450,965
Equity securities, at fair value	1,026	971
Federal Home Loan Bank stock	48,998	59,489
Loans	9,803,536	9,822,890
Less allowance for credit losses	85,591	101,466
Net loans	9,717,945	9,721,424
Foreclosed assets, net	3,554	4,475
Banking premises and equipment, net	75,344	75,946
Accrued interest receivable	43,883	46,450
Intangible assets	465,335	466,212
Bank-owned life insurance	235,112	234,607
Other assets	186,840	221,360
Total assets	13,130,445	12,919,741
Deposits:
Demand deposits	7,932,146	7,395,508
Savings deposits	1,402,363	1,348,147
Certificates of deposit of $100,000 or more	604,732	717,216
Other time deposits	358,272	376,958
Total deposits	10,297,513	9,837,829
Mortgage escrow deposits	37,772	34,298
Borrowed funds	940,611	1,175,972
Subordinated debentures	25,173	25,135
Other liabilities	182,145	226,710
Total liabilities	11,483,214	11,299,944
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, 83,209,012 shares issued and 77,798,624 shares outstanding at March 31, 2021 and 77,611,107 outstanding at December 31, 2020	832	832
Additional paid-in capital	963,556	962,453
Retained earnings	748,574	718,090
Accumulated other comprehensive income	12,977	17,655
Treasury stock	(59,261)	(59,018)
Unallocated common stock held by the Employee Stock Ownership Plan	(19,447)	(20,215)
Common stock acquired by deferred compensation plans	(4,381)	(4,549)
Deferred compensation plans	4,381	4,549
Total stockholders’ equity	1,647,231	1,619,797
Total liabilities and stockholders’ equity	$ 13,130,445	$ 12,919,741

XML

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Held to maturity debt securities	$ 463,993	$ 472,529
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)	83,209,012	83,209,012
Common stock, shares outstanding (in shares)	77,798,624	77,611,107

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Interest income:
Real estate secured loans	$ 62,016	$ 54,441
Commercial loans	26,143	18,672
Consumer loans	3,492	4,172
Available for sale debt securities, equity securities and Federal Home Loan Bank stock	5,612	7,069
Held to maturity debt securities	2,784	2,940
Deposits, Federal funds sold and other short-term investments	484	875
Total interest income	100,531	88,169
Interest expense:
Deposits	7,417	10,958
Borrowed funds	2,809	5,190
Subordinated debt	305	0
Total interest expense	10,531	16,148
Net interest income	90,000	72,021
Provision (benefit) charge for credit losses	(15,001)	14,717
Net interest income after provision for credit losses	105,001	57,304
Non-interest income:
Fees	7,192	6,529
Wealth management income	7,134	6,251
Insurance agency income	2,727	0
Bank-owned life insurance	2,567	787
Net gains on securities transactions	197	11
Other income	1,820	3,413
Total non-interest income	21,637	16,991
Non-interest expense:
Compensation and employee benefits	35,312	31,195
Net occupancy expense	9,301	6,203
Data processing expense	4,393	4,430
FDIC insurance	1,770	0
Amortization of intangibles	972	744
Advertising and promotion expense	877	1,369
Credit loss (benefit) expense for off-balance sheet credit exposures	(875)	1,000
Other operating expenses	10,103	9,166
Total non-interest expense	61,853	54,107
Income before income tax expense	64,785	20,188
Income tax expense	16,226	5,257
Net income	$ 48,559	$ 14,931
Basic earnings per share (usd per share)	$ 0.63	$ 0.23
Weighted average basic shares outstanding (in shares)	76,516,543	64,386,138
Diluted earnings per share (usd per share)	$ 0.63	$ 0.23
Weighted average diluted shares outstanding (in shares)	76,580,862	64,457,263

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 48,559	$ 14,931
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	(9,019)	16,746
Reclassification adjustment for gains included in net income	(171)	0
Total	(9,190)	16,746
Unrealized gains (losses) on derivatives	4,621	(5,713)
Amortization related to post-retirement obligations	(109)	84
Total other comprehensive (loss) income	(4,678)	11,117
Total comprehensive income	$ 43,881	$ 26,048

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Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	COMMON STOCK	ADDITIONAL PAID-IN CAPITAL	RETAINED EARNINGS	ACCUMULATED OTHER COMPREHENSIVE INCOME	TREASURYSTOCK	UNALLOCATED ESOP SHARES	COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS	DEFERRED COMPENSATION PLANS
Beginning balance at Dec. 31, 2019	$ 1,413,840	$ 832	$ 1,007,303	$ 695,273	$ 3,821	$ (268,504)	$ (24,885)	$ (3,833)	$ 3,833
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,931			14,931
Other comprehensive income (loss), net of tax	11,117				11,117
Cash dividends paid	(15,496)			(15,496)
Distributions from DDFP	37		37					167	(167)
Purchases of treasury stock	(4,985)					(4,985)
Purchase of employee restricted shares to fund statutory tax withholding	(956)					(956)
Shares issued dividend reinvestment plan	451		50			401
Allocation of ESOP shares	921		152				769
Allocation of Stock Award Plan ("SAP") shares	993		993
Allocation of stock options	47		47
Ending Balance at Mar. 31, 2020	1,412,589	832	1,008,582	686,397	14,938	(274,044)	(24,116)	(3,666)	3,666
Beginning balance at Dec. 31, 2020	1,619,797	832	962,453	718,090	17,655	(59,018)	(20,215)	(4,549)	4,549
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	48,559			48,559
Other comprehensive income (loss), net of tax	(4,678)				(4,678)
Cash dividends paid	(18,075)			(18,075)
Distributions from DDFP	28		28					168	(168)
Purchases of treasury stock	(48)					(48)
Purchase of employee restricted shares to fund statutory tax withholding	(915)					(915)
Shares issued dividend reinvestment plan	0
Stock option exercises	638		(82)			720
Allocation of ESOP shares	913		145				768
Allocation of Stock Award Plan ("SAP") shares	959		959
Allocation of stock options	53		53
Ending Balance at Mar. 31, 2021	$ 1,647,231	$ 832	$ 963,556	$ 748,574	$ 12,977	$ (59,261)	$ (19,447)	$ (4,381)	$ 4,381

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income	$ 48,559	$ 14,931
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	3,264	2,494
Provision (benefit) charge for credit losses	(15,001)	14,717
Credit loss (benefit) expense for off-balance sheet credit exposures	(875)	1,000
Deferred tax expense (benefit)	6,271	(1,492)
Amortization of operating lease right-of-use assets	2,812	2,130
Income on Bank-owned life insurance	(2,567)	(787)
Net amortization of premiums and discounts on securities	3,110	1,913
Accretion of net deferred loan fees	(5,487)	(1,521)
Amortization of premiums on purchased loans, net	190	192
Net increase in loans originated for sale	(14,492)	(4,022)
Proceeds from sales of loans originated for sale	15,260	4,335
Proceeds from sales and paydowns of foreclosed assets	569	256
ESOP expense	913	921
Allocation of stock award shares	959	993
Allocation of stock options	53	47
Net gain on sale of loans	(768)	(313)
Net gain on securities transactions	(197)	(11)
Net gain on sale of premises and equipment	(15)	(641)
Net gain on sale of foreclosed assets	(170)	(29)
(Increase) decrease in accrued interest receivable	(2,567)	1,232
Decrease (increase) in other assets	41,160	(82,099)
(Decrease) increase in other liabilities	(44,565)	79,111
Net cash provided by operating activities	36,416	33,357
Cash flows from investing activities:
Proceeds from maturities, calls and paydowns of held to maturity debt securities	10,236	17,225
Purchases of held to maturity debt securities	(7,541)	(9,674)
Proceeds from sales of securities	9,442	0
Proceeds from maturities and paydowns of available for sale debt securities	90,807	64,466
Purchases of available for sale debt securities	(226,417)	(56,172)
Proceeds from redemption of Federal Home Loan Bank stock	12,147	28,549
Purchases of Federal Home Loan Bank stock	(1,656)	(32,449)
BOLI claim benefits received	0	1,985
Net decrease (increase) in loans	24,217	(39,897)
Proceeds from sales of premises and equipment	15	641
Purchases of premises and equipment	(1,846)	(1,664)
Net cash used in investing activities	(90,596)	(26,990)
Cash flows from financing activities:
Net increase in deposits	459,684	108,151
Increase in mortgage escrow deposits	3,474	1,666
Cash dividends paid to stockholders	(18,075)	(15,496)
Shares issued dividend reinvestment plan	0	451
Purchase of treasury stock	(48)	(4,985)
Purchase of employee restricted shares to fund statutory tax withholding	(915)	(956)
Stock options exercised	638	0
Proceeds from long-term borrowings	400,000	632,554
Payments on long-term borrowings	(619,265)	(300,159)
Net decrease in short-term borrowings	(16,096)	(243,764)
Net cash provided by financing activities	209,397	177,462
Net increase in cash and cash equivalents	155,217	183,829
Cash and cash equivalents at beginning of period	532,353	186,748
Cash and cash equivalents at end of period	687,570	370,577
Cash paid during the period for:
Interest on deposits and borrowings	10,399	15,819
Income taxes	270	115
Non-cash investing activities:
Transfer of loans receivable to foreclosed assets	$ 434	$ 2,067

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

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 credit 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, 2021 are not necessarily indicative of the results of operations that may be expected for all of 2021.

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, 2020 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, 2021 and 2020 (dollars in thousands, except per share amounts):

	Three months ended March 31,
	2021					2020
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	48,559				$	14,931
Basic earnings per share:
Income available to common stockholders	$	48,559	76,516,543	$	0.63	$	14,931	64,386,138	$	0.23
Dilutive shares			64,319					71,125
Diluted earnings per share:
Income available to common stockholders	$	48,559	76,580,862	$	0.63	$	14,931	64,457,263	$	0.23

Anti-dilutive stock options and awards at March 31, 2021 and 2020, totaling 1.2 million shares and 905,673 shares, respectively, were excluded from the earnings per share calculations.

C. Loans Receivable and Allowance for Credit Losses

On January 1, 2020, the Company adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments,” which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The Company used the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under CECL.

Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses on loans will be significantly influenced by the composition, characteristics and quality of the Company’s loan portfolio, as well as the

prevailing economic conditions and forecast utilized. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. For the three months ended March 31, 2021, the improved economic outlook and the resulting lower allowance requirements led to reductions to the provisions for credit losses and off-balance sheet credit exposures. See Note 4 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans

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Business Combinations

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Business Combinations

Business Combinations

SB One Bancorp Acquisition

On July 31, 2020, the Company completed its acquisition of SB One Bancorp ("SB One"), which added $2.20 billion to total assets, $1.77 billion to total loans and $1.76 billion to total deposits, and added 18 full-service banking offices in New Jersey and New York. As part of the acquisition, the addition of SB One Insurance Agency allowed the Company to expand its products offerings to its customers to include an array of commercial and personal insurance products.

Under the merger agreement, each share of outstanding SB One common stock was exchanged for 1.357 shares of the Company's common stock. The Company issued 12.8 million shares of common stock from treasury stock, plus cash in lieu of fractional shares in the acquisition of SB One. The total consideration paid for the acquisition of SB One was $180.8 million. In connection with the acquisition, SB One Bank, a wholly owned subsidiary of SB One, was merged with and into Provident Bank, a wholly owned subsidiary of the Company.

The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the respective assets acquired and liabilities assumed were recorded at their estimated fair value. The excess of consideration paid over the estimated fair value of the net assets acquired totaled $22.4 million and was recorded as goodwill.

The calculation of goodwill is subject to change for up to one year after the closing date of the transaction as additional information relative to closing date estimates and uncertainties becomes available. As the Company finalizes its analysis of these assets and liabilities, there may be adjustments to the recorded carrying values.

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition from SB One (in thousands):

	At July 31, 2020
Assets acquired:
Cash and cash equivalents, net	$	78,089
Available for sale debt securities	231,645
Held to maturity debt securities	12,381
Federal Home Loan Bank stock	11,216
Loans	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Loans, net	1,752,529
Bank-owned life insurance	37,237
Banking premises and equipment	16,620
Accrued interest receivable	8,947
Goodwill	22,439
Other intangibles assets	9,965
Foreclosed assets, net	2,441
Other assets	12,199
Total assets acquired	$	2,195,708
Liabilities assumed:
Deposits	$	1,757,777
Borrowed funds	201,582
Subordinated debentures	25,074
Other liabilities	30,447
Total liabilities assumed	$	2,014,880
Net assets acquired	$	180,828

Fair Value Measurement of Assets Assumed and Liabilities Assumed

The methods used to determine the fair value of the assets acquired and liabilities assumed in the SB One acquisition were as follows:

Securities Available for Sale

The estimated fair values of the available for sale debt securities, primarily comprised of U.S. Government agency mortgage-backed securities and U.S. government agencies and municipal bonds carried on SB One's balance sheet was confirmed using open market pricing provided by multiple independent securities brokers. Management reviewed the open market quotes used in pricing the securities and a fair value adjustment was not recorded on the investments.

Held to Maturity Debt Securities

The estimated fair values of the held to maturity debt securities, primarily comprised of municipal bonds, were determined using open market pricing provided by multiple independent securities brokers. Management reviewed the open market quotes used in pricing the securities. A fair value premium of $133,000 was recorded on the investments.

Loans

Loans acquired in the SB One acquisition were recorded at fair value, and there was no carryover related allowance for credit losses. The fair values of loans acquired from SB One were estimated using the discounted cash flow method based on the remaining maturity and repricing terms. Cash flows were adjusted for expected losses and prepayments. Projected cash flows were then discounted to present value based on: the relative risk of the cash flows, taking into account the loan type, liquidity risk, the maturity of the loans, servicing costs, and a required return on capital; and monthly principal and interest cash flows were discounted to present value and summed to arrive at the calculated value of the loans. The fair value of the acquired loans receivable was $1.77 billion.  

For loans acquired without evidence of more-than-insignificant deterioration in credit quality since origination, the Company prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into pools based on similar characteristics, such as loan type, fixed or adjustable interest rates, payment type, index rate and caps/floors, and non-accrual status. The loans were valued at the sub-pool level and were pooled at the summary level based on loan type. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these market rates was used as the fair value interest rate that a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value premium of $8.4 million.

Loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated ("PCD") loans. The Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that were current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics.

Additionally for PCD loans, an allowance for credit losses was calculated using management's best estimate of projected losses over the remaining life of the loans in accordance with ASC 326-20. This represents the portion of the loan balances that has been deemed uncollectible based on the Company’s expectations of future cash flows for each respective PCD loan pool, given the outlook and forecast inclusive of the impact of the COVID-19 pandemic ("COVID-19") and related fiscal and regulatory interventions. The expected lifetime losses were calculated using historical losses observed at the Bank, SB One and peer banks. A $13.6 million allowance for credit losses was recorded on PCD loans. The interest rate fair value adjustment related to PCD loans will be substantially recognized as interest income on a level yield amortization or straight line method over the expected life of the loans. Subsequent to the acquisition date, the initial allowance for credit losses on PCD loans will increase or decrease based on future evaluations, with changes recognized in the provision for credit losses.

The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired (in thousands):

Gross amortized cost basis at July 31, 2020	$	1,787,057
Interest rate fair value adjustment on all loans	455
Credit fair value adjustment on non-PCD loans	(21,397)
Fair value of acquired loans at July 31, 2020	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Fair value of acquired loans, net at July 31, 2020	$	1,752,529

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition as of the closing date (in thousands):

Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

Banking Premises and Equipment

The Company acquired 18 branches from SB One, eight of which were owned premises. The fair value of properties acquired was derived by valuations prepared by an independent third party utilizing the sales comparison approach to value the property as improved.

Core Deposit Intangible and Customer Relationship Intangible

The fair value of the core deposit intangible was determined based on a discounted cash flow analysis using a discount rate commensurate with market participants. To calculate cash flows, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available through national brokered CD offering rates. The projected cash flows were developed using projected deposit attrition rates.

The fair value of the customer relationship intangible was determined based on a discounted cash flow analysis using the excess of the future cash inflows (i.e., revenue from existing customer relationships) over the related cash outflows (i.e., operating costs) generated over the useful life of the acquired customer base. These cash flows were discounted to present value using an

asset-specific risk-adjusted discount rate. The projected cash flows were developed using projected customer revenue retention rates.

The core deposit intangible totaled $3.2 million and is being amortized over its estimated useful life of approximately 10 years based on dollar weighted deposit runoff on an annualized basis. The insurance agency customer relationship intangible totaled $6.8 million and is being amortized over its estimated useful life of approximately 13 years based on customer revenue attrition on an annualized basis.

Goodwill

The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. As the Company finalizes its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values may be required. The goodwill will be evaluated annually for impairment. The goodwill is not deductible for tax purposes.

Bank Owned Life Insurance ("BOLI")

SB One's BOLI cash surrender value was $37.2 million with no fair value adjustment.

Time Deposits

The fair value adjustment for time deposits represents a discount from the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar-term time deposits. The time deposit discount of approximately $4.3 million is being amortized into income on a level yield amortization method over the contractual life of the deposits.

Borrowings

The fair value of Federal Home Loan Bank of New York ("FHLBNY") advances was determined based on a discounted cash flow analysis using a discount rate commensurate with FHLBNY rates as of July 31, 2020. The cash flows of the advances were projected based on the scheduled payments of the fixed rate of each advance.

Subordinated Debentures

At the valuation date, SB One had one outstanding Trust Preferred and one subordinated debt issuance with an aggregate balance of $27.5 million. The fair value of Trust Preferred and subordinated debt issuances was determined based on a discounted cash flow analysis using a discount rate commensurate with yields and terms of comparable issuances. The cash flows were projected through the remaining contractual term of the Trust Preferred issuance and based on the call date for the subordinated debt issuance.

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Investment Securities

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

At March 31, 2021, the Company had $1.22 billion and $447.9 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. The total number of available for sale and held to maturity debt securities in an unrealized loss position at March 31, 2021 totaled 122, compared with 49 at December 31, 2020. The increase in the number of securities in an unrealized loss position at March 31, 2021 was due to higher current market interest rates compared to rates at December 31, 2020.

On January 1, 2020, the Company adopted CECL which replaces the incurred loss methodology with an expected loss methodology. The Company did not record an allowance for credit losses on available for sale debt securities as this portfolio consisted primarily of debt securities explicitly or implicitly backed by the U.S. Government for which credit risk is deemed immaterial. The impact going forward will depend on the composition, characteristics, and credit quality of the securities portfolio as well as the economic conditions at future reporting periods. The Company recorded a $70,000 increase to the allowance for credit losses on held to maturity debt securities with a corresponding cumulative effect adjustment to decrease retained earnings by $52,000, net of income taxes. (See Adoption of CECL table below for additional detail.)

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types:

•Agency obligations;

•Mortgage-backed securities;

•State and municipal obligations; and

•Corporate obligations.

All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The majority of the state and municipal, and corporate obligations carry no lower than A ratings from the rating agencies at March 31, 2021 and the Company had one security rated with a triple-B by Moody’s Investors Service.

The Company adopted CECL using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of CECL.

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, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,042,480	23,915	(6,243)	1,060,152
Asset-backed securities	47,329		1,876	—	49,205
State and municipal obligations	69,443		429	(938)	68,934
Corporate obligations	38,149		739	(243)	38,645
	$	1,197,401	26,959	(7,424)	1,216,936

	December 31, 2020
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	1,001	8	—	1,009
Mortgage-backed securities	910,393		28,872	(852)	938,413
Asset-backed securities	52,295		1,535	—	53,830
State and municipal obligations	69,687		1,666	(95)	71,258
Corporate obligations	40,194		809	(24)	40,979
	$	1,073,570	32,890	(971)	1,105,489

The amortized cost and fair value of available for sale debt securities at March 31, 2021, 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, 2021
	Amortized cost		Fair value
Due in one year or less	$	—	—
Due after one year through five years	3,651		3,761
Due after five years through ten years	38,002		38,532
Due after ten years	65,939		65,286
	$	107,592	107,579

Investments which pay principal on a periodic basis totaling $1.09 billion at amortized cost and $1.11 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, 2021, proceeds from sales on securities in the available for sale debt securities portfolio totaled $9.4 million, with gains of $230,000 and no loss recognized. No securities were sold or called from the available for sale debt securities portfolio for the three month periods ended March 31, 2020.

The following tables present the fair values and gross unrealized losses for available for sale debt securities in an unrealized loss position at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	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	$	345,988	(6,209)	8,110	(34)	354,098	(6,243)
State and municipal obligations	40,517		(938)	—	—	40,517	(938)
Corporate obligations	6,655		(243)	—	—	6,655	(243)
	$	393,160	(7,390)	8,110	(34)	401,270	(7,424)

	December 31, 2020
	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	$	127,600	(824)	8,007	(28)	135,607	(852)
State and municipal obligations	5,275		(95)	—	—	5,275	(95)
Corporate obligations	—		—	2,000	(24)	2,000	(24)
	$	132,875	(919)	10,007	(52)	142,882	(971)

The number of available for sale debt securities in an unrealized loss position at March 31, 2021 totaled 81, compared with 42 at December 31, 2020. The increase in the number of securities in an unrealized loss position at March 31, 2021 was due to higher current market interest rates compared to rates at December 31, 2020. At March 31, 2021, there was one private label mortgage-backed security in an unrealized loss position, with an amortized cost of $17,445 and unrealized loss of $690. This private-label mortgage-backed security was investment grade at March 31, 2021.

Held to Maturity Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and the estimated fair value for held to maturity debt securities at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	8,998	1	(95)	8,904
Mortgage-backed securities	50		1	—	51
State and municipal obligations	428,631		16,970	(825)	444,776
Corporate obligations	10,300		65	(103)	10,262
	$	447,979	17,037	(1,023)	463,993

At March 31, 2021, the allowance for credit losses on held to maturity debt securities totaled $77,000.

	December 31, 2020
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	7,600	6	(5)	7,601
Mortgage-backed securities	62		2	—	64
State and municipal obligations	433,655		21,442	(58)	455,039
Corporate obligations	9,726		101	(2)	9,825
	$	451,043	21,551	(65)	472,529

At December 31, 2020, the allowance for credit losses on held to maturity debt securities totaled $78,000.

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value 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, 2021 and 2020. For the three months ended March 31, 2021, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $6.8 million with gross losses of $33,000 and no gross gains. For the three months ended March 31, 2020, proceeds from calls of securities in the held to maturity debt securities portfolio totaled $13.3 million with gross gains of $11,000 and no gross losses.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at March 31, 2021 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, 2021
	Amortized cost		Fair value
Due in one year or less	$	—	—
Due after one year through five years	163,682		167,460
Due after five years through ten years	213,875		224,327
Due after ten years	70,372		72,155
	$	447,929	463,942

Mortgage-backed securities totaling $50,000 at amortized cost and $51,000 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. Additionally, allowance for credit losses totaling $77,000 is excluded from the table above.

The following table illustrates the impact of the January 1, 2020 adoption of CECL on held to maturity debt securities (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Held to Maturity Debt Securities
Allowance for credit losses on corporate securities	$	6	—	6
Allowance for credit losses on municipal securities	64		—	64
Allowance for credit losses on held to maturity debt securities	$	70	—	70

The following tables present the fair values and gross unrealized losses for held to maturity debt securities in an unrealized loss position at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021 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	$	6,903	(95)	—	—	6,903	(95)
State and municipal obligations	19,697		(809)	406	(16)	20,103	(825)
Corporate obligations	6,146		(103)	—	—	6,146	(103)
	$	32,746	(1,007)	406	(16)	33,152	(1,023)

	December 31, 2020 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	$	1,995	(5)	—	—	1,995	(5)
State and municipal obligations	4,846		(41)	406	(17)	5,252	(58)
Corporate obligations	786		(2)	—	—	786	(2)
	$	7,627	(48)	406	(17)	8,033	(65)

The number of held to maturity debt securities in an unrealized loss position at March 31, 2021 totaled 41, compared with 7 at December 31, 2020. The increase in the number of securities in an unrealized loss position at March 31, 2021, was due to higher current market interest rates compared to prevailing market rates at December 31, 2020.

Credit Quality Indicators. The following table provides the amortized cost of held to maturity debt securities by credit rating as of March 31, 2021 (in thousands):

	March 31, 2021
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Agency obligations	$	8,998	—	—	—	—	8,998
Mortgage-backed securities	50		—	—	—	—	50
State and municipal obligations	57,207		308,572	51,678	1,115	10,059	428,631
Corporate obligations	—		3,087	7,188	—	25	10,300
	$	66,255	311,659	58,866	1,115	10,084	447,979
	December 31, 2020
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Agency obligations	$	7,600	—	—	—	—	7,600
Mortgage-backed securities	62		—	—	—	—	62
State and municipal obligations	57,830		311,155	53,302	1,115	10,253	433,655
Corporate obligations	—		3,255	6,446	—	25	9,726
	$	65,492	314,410	59,748	1,115	10,278	451,043

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. At March 31, 2021, the held to maturity debt securities portfolio was comprised of 15% rated AAA, 70% rated AA, 13% rated A, and less than 2% either below an A rating or not rated by Moody’s Investors Service or Standard and Poor’s. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security.

At March 31, 2021, the allowance for credit losses on held to maturity debt securities was $77,000, a decrease from $78,000 at December 31, 2020

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Loans Receivable and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Loans Receivable and Allowance for Credit Losses

Loans Receivable and Allowance for Credit Losses

On January 1, 2020, the Company adopted CECL, which replaced the incurred loss methodology with an expected loss methodology. The adoption of the new standard resulted in the Company recording a $7.9 million increase to the allowance for credit losses on loans with a corresponding cumulative effect adjustment to decrease retained earnings by $5.9 million, net of income taxes. (See Adoption of CECL table below for additional detail.)

Loans receivable at March 31, 2021 and December 31, 2020 are summarized as follows (in thousands):

	March 31, 2021		December 31, 2020
Mortgage loans:
Residential	$	1,277,376	1,294,702
Commercial	3,594,012		3,458,666
Multi-family	1,458,193		1,484,515
Construction	615,706		541,939
Total mortgage loans	6,945,287		6,779,822
Commercial loans	2,510,708		2,567,470
Consumer loans	363,648		492,566
Total gross loans	9,819,643		9,839,858
Premiums on purchased loans	1,378		1,566
Unearned discounts	(7)		(12)
Net deferred fees	(17,478)		(18,522)
Total loans	$	9,803,536	9,822,890

At March 31, 2021, $101.7 million of loans purchased from SB One that were previously classified as consumer loans were classified as commercial mortgage loans, following further analysis of the underwriting documents and operational intent of the borrower. These loans are comprised of term loans and lines of credit secured by 1-4 family residential properties that are held by borrowers to generate rental income.

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

	March 31, 2021
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Residential	$	6,862	6,161	7,797	—	20,820	1,256,556	1,277,376	7,797
Commercial	2,183		520	33,742	—	36,445	3,557,567	3,594,012	33,742
Multi-family	1,327		—	101	—	1,428	1,456,765	1,458,193	101
Construction	1,123		1,656	1,392	—	4,171	611,535	615,706	1,392
Total mortgage loans	11,495		8,337	43,032	—	62,864	6,882,423	6,945,287	43,032
Commercial loans	393		235	36,042	—	36,670	2,474,038	2,510,708	21,298
Consumer loans	1,356		277	3,010	—	4,643	359,005	363,648	3,009
Total gross loans	$	13,244	8,849	82,084	—	104,177	9,715,466	9,819,643	67,339

	December 31, 2020
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Residential	$	15,789	8,852	9,315	—	33,956	1,260,746	1,294,702	9,315
Commercial	761		113	31,982	—	32,856	3,425,810	3,458,666	20,482
Multi-family	206		585	—	—	791	1,483,724	1,484,515	—
Construction	—		—	1,392	—	1,392	540,547	541,939	1,392
Total mortgage loans	16,756		9,550	42,689	—	68,995	6,710,827	6,779,822	31,189
Commercial loans	1,658		1,179	42,118	—	44,955	2,522,515	2,567,470	15,541
Consumer loans	4,348		4,519	2,283	—	11,150	481,416	492,566	2,283
Total gross loans	$	22,762	15,248	87,090	—	125,100	9,714,758	9,839,858	49,013

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 $82.1 million and $87.1 million at March 31, 2021 and December 31, 2020, respectively. Included in non-accrual loans were $27.1 million and $35.3 million of loans which were less than 90 days past due at March 31, 2021 and December 31, 2020, respectively. There were no loans 90 days or greater past due and still accruing interest at March 31, 2021 or December 31, 2020.

Management has elected to measure an allowance for credit losses for accrued interest receivables specifically related to any loan that has been deferred as a result of COVID-19. Generally, accrued interest is written off by reversing interest income during the quarter the loan is moved from an accrual to a non-accrual status.

The Company defines an impaired loan as a non-homogeneous loan greater than $1.0 million, for which, based on current information, the Bank does not expect to collect all amounts due under the contractual terms of the loan agreement. Impaired loans also include all loans modified as troubled debt restructurings (“TDRs”). An allowance for collateral-dependent impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required.

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the fair value of the collateral less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. At each fiscal quarter end, if a loan is designated as collateral-dependent 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 and evaluated for charge offs. The Company believes there have been no significant time lapses resulting from this process.

At March 31, 2021, there were 167 impaired loans totaling $79.5 million. Included in this total were 115 TDRs related to 112 borrowers totaling $22.7 million that were performing in accordance with their restructured terms and which continued to accrue interest at March 31, 2021. At December 31, 2020, there were 169 impaired loans totaling $86.0 million, of which 135 loans totaling $39.6 million were TDRs. Included in this total were 112 TDRs to 110 borrowers totaling $23.1 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2020.

At March 31, 2021 and December 31, 2020, the Company had $30.1 million and $26.3 million of collateral-dependent impaired loans, respectively. The collateral-dependent impaired loans at March 31, 2021 consisted of $28.3 million in commercial loans, $1.6 million in residential real estate loans, and $216,000 in consumer loans. The collateral for these impaired loans was primarily real estate.

The activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2021 and 2020 was as follows (in thousands):

March 31, 2021	Mortgage loans		Commercial loans	Consumer loans	Total
Balance at beginning of period	$	68,307	27,084	6,075	101,466
Provision benefit to operations	(13,467)		(467)	(1,066)	(15,000)
Recoveries of loans previously charged-off	276		528	303	1,107
Loans charged-off	(918)		(843)	(221)	(1,982)
Balance at end of period	$	54,198	26,302	5,091	85,591
March 31, 2020	Mortgage loans		Commercial loans	Consumer loans	Total
Balance at beginning of period	$	25,511	28,263	1,751	55,525
Provision charge (benefit) to operations	7,710		7,619	(629)	14,700
Retained earnings (due to initial CECL adoption)	14,188		(9,974)	3,706	7,920
Recoveries of loans previously charged-off	93		313	123	529
Loans charged-off	(2)		(3,380)	(149)	(3,531)
Balance at end of period	$	47,500	22,841	4,802	75,143

As a result of the January 1, 2020 adoption of CECL, the Company recorded a $7.9 million increase to the allowance for credit losses on loans. For the three months ended March 31, 2021, the Company recorded a negative provision for credit losses on loans of $15.0 million. The decrease in the provision for credit losses for the year ended March 31, 2021 was the result of an improved current economic forecast and the resultant favorable impact on expected credit losses, compared with a provision for credit losses for the prior year, which was based upon a weak economic forecast and uncertain outlook attributable to the COVID-19. The largest decrease in the provision for credit losses on loans for the year ended March 31, 2021 was in the commercial real estate portfolio.

The following table illustrates the impact the January 1, 2020 adoption of CECL had on the allowance for credits losses for the loan portfolio (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Loans
Residential	$	8,950	3,414	5,536
Commercial	17,118		12,831	4,287
Multi-family	9,519		3,374	6,145
Construction	4,152		5,892	(1,740)
Total mortgage loans	39,739		25,511	14,228
Commercial loans	18,254		28,263	(10,009)
Consumer loans	5,452		1,751	3,701
Allowance for credit losses on loans	$	63,445	55,525	7,920

The following tables summarize loans receivable by portfolio segment and impairment method (in thousands):

	March 31, 2021
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	49,783	28,359	1,405	79,547
Collectively evaluated for impairment	6,895,504		2,482,349	362,243	9,740,096
Total gross loans	$	6,945,287	2,510,708	363,648	9,819,643

	December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	48,783	35,832	1,431	86,046
Collectively evaluated for impairment	6,731,039		2,531,638	491,135	9,753,812
Total gross loans	$	6,779,822	2,567,470	492,566	9,839,858

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

	March 31, 2021
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	927	3,832	43	4,802
Collectively evaluated for impairment	53,271		22,470	5,048	80,789
Total gross loans	$	54,198	26,302	5,091	85,591

	December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	4,220	4,715	39	8,974
Collectively evaluated for impairment	64,087		22,369	6,036	92,492
Total gross loans	$	68,307	27,084	6,075	101,466

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, management 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, 2021 and 2020, along with their balances immediately prior to the modification date and post-modification as of March 31, 2021 and 2020 (in thousands):

	For the three months ended
	March 31, 2021					March 31, 2020
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)
Commercial loans	3	$	1,361	$	1,359	2	$	746	$	731
Total restructured loans	3	$	1,361	$	1,359	2	$	746	$	731

For loans modified as TDRs in the preceding table, there were no allowance for credit losses required at March 31, 2021.

There were no payment defaults (90 days or more past due) at the quarter ended March 31, 2021 and 2020 for loans modified as TDRs within the previous 12 month periods ending March 31, 2021 and March 31, 2020. For TDRs that subsequently default, the Company determines the amount of the allowance for the respective loans in accordance with the accounting policy for the allowance for credit losses on loans individually evaluated for impairment.

All TDRs are impaired loans, which are individually evaluated for impairment. During the three months ended March 31, 2021, $1.5 million of charge-offs were recorded on TDRs. (See subsequent discussion related to COVID-19 loan modifications.)

As allowed by CECL, the Company elected to maintain pools of loans accounted for under ASC 310-30. At December 31, 2020, purchased credit impaired (“PCI”) loans totaled $746,000. In accordance with the CECL standard, management did not reassess whether modifications of individually acquired financial assets accounted for in pools were TDRs as of the date of adoption. Loans considered to be PCI prior to January 1, 2020 were converted to PCD loans on that date. Any additional loans acquired by the Company after January 1, 2020, that experience more-than-insignificant deterioration in credit quality after origination, have been classified as PCD loans.

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition at the July 31, 2020 closing date (in thousands):

Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Fair value of PCD loans	307,796
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

At March 31, 2021, the balance of PCD loans totaled $283.9 million with a related allowance for credit losses of $10.8 million. The balance of PCD loans at December 31, 2020 was $296.6 million with a related allowance for credit losses of $13.1 million.

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

	March 31, 2021						December 31, 2020
	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	$	12,267	9,794	—	10,083	118	13,981	11,380	—	11,587	511
Commercial	34,125		30,656	—	31,555	17	17,414	17,414	—	16,026	60
Total	46,392		40,450	—	41,638	135	31,395	28,794	—	27,613	571
Commercial loans	11,630		8,963	—	9,082	—	15,895	14,009	—	12,791	46
Consumer loans	1,360		857	—	2,319	13	1,382	880	—	7	50
Total impaired loans	$	59,382	50,270	—	53,039	148	48,672	43,683	—	40,411	667
Loans with an allowance recorded
Mortgage loans:
Residential	$	8,938	8,438	904	8,461	77	7,950	7,506	806	7,604	307
Commercial	895		895	23	925	13	14,993	12,483	3,414	123	570
Total	9,833		9,333	927	9,386	90	22,943	19,989	4,220	7,727	877
Commercial loans	22,622		19,396	3,832	23,451	123	24,947	21,823	4,715	18,620	311
Consumer loans	563		548	43	550	10	565	551	39	5	20
Total impaired loans	$	33,018	29,277	4,802	33,387	223	48,455	42,363	8,974	26,352	1,208
Total impaired loans
Mortgage loans:
Residential	$	21,205	18,232	904	18,544	195	21,931	18,886	806	19,191	818
Commercial	35,020		31,551	23	32,480	30	32,407	29,897	3,414	16,149	630
Total	56,225		49,783	927	51,024	225	54,338	48,783	4,220	35,340	1,448
Commercial loans	34,252		28,359	3,832	32,533	123	40,842	35,832	4,715	31,411	357
Consumer loans	1,923		1,405	43	2,869	23	1,947	1,431	39	12	70
Total impaired loans	$	92,400	79,547	4,802	86,426	371	97,127	86,046	8,974	66,763	1,875

Specific allocations of the allowance for credit losses attributable to impaired loans totaled $4.8 million at March 31, 2021 and $9.0 million at December 31, 2020. At March 31, 2021 and December 31, 2020, impaired loans for which there was no related allowance for credit losses totaled $50.3 million and $43.7 million, respectively. The average balance of impaired loans for the three months ended March 31, 2021 and December 31, 2020 was $86.4 million and $66.8 million, respectively.

Management 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.

In response to COVID-19 and its adverse economic impact on both our commercial and retail borrowers, the Company implemented a modification program to defer principal or principal and interest payments for borrowers directly impacted by the pandemic and who were not more than 30 days past due as of December 31, 2019, all in accordance with the Coronavirus Aid, Relief, and Economic Security ("CARES") Act.

Loans that have been or are expected to be granted COVID-19 related deferrals or modifications have decreased from a peak level of $1.31 billion, or 16.8% of loans, to $132.0 million, or 1.3% of loans as of April 20, 2021. This $132.0 million of loans includes $300,000 in a first 90-day deferral period, $46.6 million in a second 90-day deferral period, and $85.1 million in a third deferral period. Of the $123.5 million in commercial loans in deferral, $119.0 million or 96.4% are under principal only deferral and are paying interest. Included in the $132.0 million of loans, $40.9 million are secured by hotels, $33.1 million are secured by multi-family properties (the majority of which is student housing related), $8.6 million are secured by retail properties, $6.5 million are secured by restaurants, and $8.5 million are secured by residential mortgages, with the balance comprised of diverse commercial loans. In accordance with the CARES Act, the Company has elected to not apply troubled debt restructuring classification to any COVID-19 related loan modifications that were performed after March 1, 2020 to borrowers who were current as of December 31, 2019. Accordingly, these modifications are not classified as TDRs.

In addition, the Company participated in the Paycheck Protection Program (“PPP”) through the United States Department of the Treasury and Small Business Administration ("SBA"). As of March 31, 2021, the Company secured a total of 1,318 PPP loans for its customers totaling $664.5 million, which includes both the initial round and the second round of PPP. Additionally, as of March 31, 2021, 670 PPP loans totaling $182.6 million were forgiven. The balance at March 31, 2021 for PPP loans was $481.9 million. The PPP loans are fully guaranteed by the SBA and may be eligible for forgiveness by the SBA to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up to 24 weeks after the loan was made as long as certain conditions are met regarding employee retention and compensation levels. PPP loans deemed eligible for forgiveness by the SBA will be repaid by the SBA to the Company. PPP loans are included in the commercial loan portfolio.

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades (in thousands):

	At March 31, 2021
Total portfolio	Residential		Commercial mortgage		Multi-family		Construction		Total mortgages		Commercial		Consumer		Total Loans (1)
Special mention	$	5,847	129,051		35,885		25,409		196,192		115,619		529		312,340
Substandard	23,416		109,689		1,552		5,736		140,393		124,581		3,836		268,810
Doubtful	—		—		—		—		—		20		—		20
Loss	—		—		—		—		—		—		—		—
Total criticized and classified	29,263		238,740		37,437		31,145		336,585		240,220		4,365		581,170
Pass/Watch	1,248,113		3,355,272		1,420,756		584,561		6,608,702		2,270,488		359,283		9,238,473
Total	$	1,277,376	3,594,012		1,458,193		615,706		6,945,287		2,510,708		363,648		9,819,643
2021
Special mention	$	—	—		—		—		—		23		—		23
Substandard	—		—		—		—		—		391		—		391
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total criticized and classified	—		—		—		—		—		414		—		414
Pass/Watch	82,831		78,552		31,141		14,913		207,437		252,045		8,947		468,429
Total gross loans	$	82,831	78,552		31,141		14,913		207,437		252,459		8,947		468,843
2020
Special mention	$	—	$	—	$	—	$	1,986	$	1,986	$	345	$	—	$	2,331
Substandard	163		—		—		—		163		1,824		—		1,987
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—

Total criticized and classified	163		—	—	1,986	2,149	2,169	—	4,318
Pass/Watch	262,032		670,040	296,124	123,927	1,352,123	595,559	39,107	1,986,789
Total gross loans	$	262,195	670,040	296,124	125,913	1,354,272	597,728	39,107	1,991,107
2019
Special mention	$	661	30,310	679	16,189	47,839	8,819	—	56,658
Substandard	3,773		2,426	—	—	6,199	9,856	361	16,416
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	4,434		32,736	679	16,189	54,038	18,675	361	73,074
Pass/Watch	139,951		632,084	177,648	259,223	1,208,906	246,072	46,155	1,501,133
Total gross loans	$	144,385	664,820	178,327	275,412	1,262,944	264,747	46,516	1,574,207
2018
Special mention	$	2,425	39,825	20,125	—	62,375	3,578	—	65,953
Substandard	744		5,383	—	5,121	11,248	6,568	120	17,936
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	3,169		45,208	20,125	5,121	73,623	10,146	120	83,889
Pass/Watch	81,320		385,080	183,343	145,307	795,050	228,963	44,128	1,068,141
Total gross loans	$	84,489	430,288	203,468	150,428	868,673	239,109	44,248	1,152,030
2017 and prior
Special mention	$	2,761	58,916	15,081	7,234	83,992	102,854	529	187,375
Substandard	18,736		101,880	1,552	615	122,783	105,942	3,355	232,080
Doubtful	—		—	—	—	—	20	—	20
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	21,497		160,796	16,633	7,849	206,775	208,816	3,884	419,475
Pass/Watch	681,979		1,589,516	732,500	41,191	3,045,186	947,849	220,946	4,213,981
Total gross loans	$	703,476	1,750,312	749,133	49,040	3,251,961	1,156,665	224,830	4,633,456
	At December 31, 2020
	Residential		Commercial mortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	2,882	124,631	29,781	24,376	181,670	157,080	1,867	340,617
Substandard	26,651		98,313	1,568	4,924	131,456	127,092	6,746	265,294
Doubtful	—		—	—	—	—	52	—	52
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	29,533		222,944	31,349	29,300	313,126	284,224	8,613	605,963
Pass/Watch	1,265,169		3,235,722	1,453,166	512,639	6,466,696	2,283,246	483,953	9,233,895
Total	$	1,294,702	3,458,666	1,484,515	541,939	6,779,822	2,567,470	492,566	9,839,858

(1) Contained within criticized and classified loans at March 31, 2021 are loans that were granted payment deferrals related to COVID-19 totaling $132.0 million.

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Deposits

3 Months Ended

Mar. 31, 2021

Banking and Thrift, Other Disclosures [Abstract]

Deposits

Deposits

Deposits at March 31, 2021 and December 31, 2020 are summarized as follows (in thousands):

	March 31, 2021		December 31, 2020
Savings	$	1,402,363	1,348,147
Money market	2,345,640		2,245,412
NOW	3,075,098		2,808,637
Non-interest bearing	2,511,408		2,341,459
Certificates of deposit	963,004		1,094,174
Total deposits	$	10,297,513	9,837,829

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Components of Net Periodic Benefit Cost

3 Months Ended

Mar. 31, 2021

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 (benefit) increase cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2021 and 2020 includes the following components (in thousands):

	Three months ended March 31,
	Pension benefits			Other post-retirement benefits
	2021		2020	2021	2020
Service cost	$	—	—	9	20
Interest cost	198		250	106	178
Expected return on plan assets	(807)		(737)	—	—
Amortization of prior service cost	—		—	—	—
Amortization of the net loss (gain)	118		174	(268)	(62)
Net periodic (benefit) increase cost	$	(491)	(313)	(153)	136

In its consolidated financial statements for the year ended December 31, 2020, the Company previously disclosed that it does not expect to contribute to the pension plan in 2021. As of March 31, 2021, no contributions have been made to the pension plan.

The net periodic (decrease) increase in benefit cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2021 were calculated using the January 1, 2021 pension and other post-retirement benefits actuarial valuations.

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Impact of Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2021
Accounting Changes and Error Corrections [Abstract]
Impact of Recent Accounting Pronouncements	Impact of Recent Accounting PronouncementsAccounting Pronouncements Not Yet AdoptedASU 2020-04, "Reference Rate Reform (Topic 848)" ("ASU 2020-04") provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance: (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized; and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or re-measurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for derivative accounting. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the Codification, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The Company anticipates this ASU will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than the extinguishment of the old contract resulting in writing off unamortized fees/costs. In addition, in January 2021 the FASB issued ASU No. 2021-01 “Reference Rate Reform — Scope,” which clarified the scope of ASC 848 relating to contract modifications. The Company is evaluating the impacts of this guidance and has not determined whether LIBOR transition and this guidance will have material effects on the Company's business operations and consolidated financial statements.

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Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

3 Months Ended

Mar. 31, 2021

Credit Loss [Abstract]

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

On January 1, 2020, the Company adopted CECL, which replaced the incurred loss methodology with an expected loss methodology. This new methodology applies to off-balance sheet credit exposures, including loan commitments and lines of credit. The adoption of this new standard resulted in the Company recording a $3.2 million increase to the allowance for credit losses on off-balance sheet credit exposures with a corresponding cumulative effect adjustment to decrease retained earnings $2.4 million, net of income taxes.

Management analyzes the Company's exposure to credit losses for both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework. For purposes of estimating the allowance for credit losses for off-balance sheet credit exposures, the exposure at default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors, resulting in a proportionate amount of expected credit losses.

The following table illustrates the impact of the January 1, 2020 adoption of CECL on off-balance sheet credit exposures:

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Liabilities
Allowance for credit losses on off-balance sheet credit exposure	$	3,206	—	3,206

For the three months ended March 31, 2021, the Company recorded an $875,000 benefit to the provision for credit losses for off-balance sheet credit exposures, compared to $1.0 million provision for the three months ended March 31, 2020. This decrease in the provision for credit losses for off-balance sheet credit exposures was primarily due to a reduction in the required allowance for these exposures as loss factors decreased resulting from an improved economic forecast compared to the prior year.

The allowance for credit losses for off-balance sheet credit exposures was $4.1 million and $5.0 million at March 31, 2021 and December 31, 2020, respectively, and are included in other liabilities on the Consolidated Statements of Financial Condition.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value MeasurementsThe 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, Management 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 the 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, 2021 and December 31, 2020.

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 whom 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 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 Management 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, Management compares the prices received from the pricing service to a secondary pricing source. Additionally, Management 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 which, 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 derivatives 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. These derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings. The change in the fair value of these derivatives is recorded in accumulated other comprehensive income, and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

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, 2021 and December 31, 2020.

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%. Management 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 credit 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, 2021 and December 31, 2020.

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of March 31, 2021 and December 31, 2020, by level within the fair value hierarchy (in thousands):

	Fair Value Measurements at Reporting Date Using:
	March 31, 2021		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	$	1,060,152	—	1,060,152	—
Asset-backed securities	49,205		—	49,205	—
State and municipal obligations	68,934		—	68,934	—
Corporate obligations	38,645		—	38,645	—
Total available for sale debt securities	1,216,936		—	1,216,936	—
Equity securities	1,026		1,026	—	—
Derivative assets	76,542		—	76,542	—
	$	1,294,504	1,026	1,293,478	—
Derivative liabilities	$	78,228	—	78,228	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	30,120	—	—	30,120
Foreclosed assets	3,554		—	—	3,554
	$	33,674	—	—	33,674

	Fair Value Measurements at Reporting Date Using:
	December 31, 2020		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:
Agency obligations	$	1,009	1,009	—	—
Mortgage-backed securities	938,413		—	938,413	—
Asset-backed securities	53,830			53,830
State and municipal obligations	71,258		—	71,258	—
Corporate obligations	40,979		—	40,979	—
Total available for sale debt securities	1,105,489		1,009	1,104,480	—
Equity Securities	971		971	—	—
Derivative assets	101,079		—	101,079	—
	$	1,207,539	1,980	1,205,559	—
Derivative liabilities	$	109,148	—	109,148	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	26,250	—	—	26,250
Foreclosed assets	4,475		—	—	4,475
	$	30,725	—	—	30,725

There were no transfers between Level 1, Level 2 and Level 3 during the three months ended March 31, 2021.

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, 2021 and December 31, 2020 was $42.6 million and $114.3 million, respectively, representing cash collateral pledged to secure loan level swaps and 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 whom 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 to comparable securities. Management evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As management 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, management compares the prices received from the pricing service to a secondary pricing source. Additionally, management 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.

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, 2021 and December 31, 2020. Fair values are presented by level within the fair value hierarchy.

			Fair Value Measurements at March 31, 2021 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	$	687,570	687,570	687,570	—	—
Available for sale debt securities:
Mortgage-backed securities	1,060,152		1,060,152	—	1,060,152	—
Asset-backed securities	49,205		49,205		49,205
State and municipal obligations	68,934		68,934	—	68,934	—
Corporate obligations	38,645		38,645	—	38,645	—
Total available for sale debt securities	$	1,216,936	1,216,936	—	1,216,936	—
Held to maturity debt securities, net of allowance for credit losses:
Agency obligations	8,998		8,904	8,904	—	—
Mortgage-backed securities	50		51	—	51	—
State and municipal obligations	428,571		444,776	—	444,776	—
Corporate obligations	10,283		10,262	—	10,262	—
Total held to maturity debt securities, net of allowance for credit losses	$	447,902	463,993	8,904	455,089	—
FHLBNY stock	48,998		48,998	48,998	—	—
Equity Securities	1,026		1,026	1,026	—	—
Loans, net of allowance for credit losses	9,717,945		9,857,891	—	—	9,857,891
Derivative assets	76,542		76,542	—	76,542	—
Financial liabilities:
Deposits other than certificates of deposits	$	9,334,509	9,334,509	9,334,509	—	—
Certificates of deposit	963,004		967,088	—	967,088	—
Total deposits	$	10,297,513	10,301,597	9,334,509	967,088	—
Borrowings	940,611		945,538	—	945,538	—
Subordinated debentures	25,173		30,325	—	30,325	—
Derivative liabilities	78,228		78,228	—	78,228	—

			Fair Value Measurements at December 31, 2020 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	$	532,353	532,353	532,353	—	—
Available for sale debt securities:
U.S. Treasury obligations			—	—	—	—
Agency obligations	1,009		1,009	1,009	—	—
Mortgage-backed securities	938,413		938,413	—	938,413	—
Asset-backed securities	53,830		53,830		53,830
State and municipal obligations	71,258		71,258	—	71,258	—
Corporate obligations	40,979		40,979	—	40,979	—
Total available for sale debt securities	$	1,105,489	1,105,489	1,009	1,104,480	—
Held to maturity debt securities:
Agency obligations	$	7,600	7,601	7,601	—	—
Mortgage-backed securities	62		64	—	64	—
State and municipal obligations	433,589		454,973	—	454,973	—
Corporate obligations	9,714		9,813	—	9,813	—
Total held to maturity debt securities, net of allowance for credit losses	$	450,965	472,451	7,601	464,850	—
FHLBNY stock	59,489		59,489	59,489	—	—
Equity securities	971		971	971	—	—
Loans, net of allowance for credit losses	9,721,424		9,969,330	—	—	9,969,330
Derivative assets	101,079		101,079	—	101,079	—
Financial liabilities:
Deposits other than certificates of deposits	$	8,743,655	8,743,655	8,743,655	—	—
Certificates of deposit	1,094,174		1,097,993	—	1,097,993	—
Total deposits	$	9,837,829	9,841,648	8,743,655	1,097,993	—
Borrowings	1,175,972		1,193,024	—	1,193,024	—
Subordinated debentures	25,135		24,375	—	24,375	—
Derivative liabilities	109,148		109,148	—	109,148	—

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Other Comprehensive Income

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Other Comprehensive Income

Other Comprehensive Income

The following table presents the components of other comprehensive (loss) income, both gross and net of tax, for the three months ended March 31, 2021 and 2020 (in thousands):

	Three months ended March 31,
	2021				2020
	Before Tax		Tax Effect	After Tax	Before Tax	Tax Effect	After Tax
Components of Other Comprehensive (Loss) Income:
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	$	(12,152)	3,133	(9,019)	22,563	(5,817)	16,746
Reclassification adjustment for gains included in net income	(230)		59	(171)	—	—	—
Total	(12,382)		3,192	(9,190)	22,563	(5,817)	16,746
Unrealized gains (losses) on derivatives (cash flow hedges)	6,226		(1,605)	4,621	(7,697)	1,984	(5,713)
Amortization related to post-retirement obligations	(150)		41	(109)	112	(28)	84
Total other comprehensive (loss) income	$	(6,306)	1,628	(4,678)	14,978	(3,861)	11,117

The following tables present the changes in the components of accumulated other comprehensive income, net of tax, for the three months ended March 31, 2021 and 2020 (in thousands):

	Changes in Accumulated Other Comprehensive Income (Loss) by Component, net of tax for the three months ended March 31,
	2021					2020
	Unrealized Gains (Losses) on Available for Sale Debt Securities		Post- Retirement Obligations	Unrealized (Losses) Gains on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Income (Loss)	Unrealized Gains on  Available for Sale Debt Securities	Post-  Retirement Obligations	Unrealized Gains (Losses) on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Income
Balance at December 31,	$	23,690	(1,081)	(4,954)	17,655	8,746	(5,240)	315	3,821
Current - period other comprehensive (loss) income	(9,190)		(109)	4,621	(4,678)	16,746	84	(5,713)	11,117
Balance at March 31,	$	14,500	(1,190)	(333)	12,977	25,492	(5,156)	(5,398)	14,938

The following tables summarize the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income for the three months ended March 31, 2021 and 2020 (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
	2021		2020
Details of AOCI:
Available for sale debt securities:
Realized net gains on the sale of securities available for sale	$	230	—	Net gain on securities transactions
	(59)		—	Income tax expense
	171		—	Net of tax
Post-retirement obligations:
Amortization of actuarial (losses) gains	$	(150)	112	Compensation and employee benefits (1)
	41		(28)	Income tax expense
Total reclassification	$	(109)	84	Net of tax

(1) This item is included in the computation of net periodic benefit cost. See Note 6. Components of Net Periodic Benefit Cost.

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2021

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 the 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 which, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company may execute 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, 2021 and December 31, 2020, the Company had 174 and 172 loan related interest rate swaps, respectively, with aggregate notional amounts of $2.62 billion and $2.63 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 RPAs are entered into to manage the credit exposure on interest rate contracts associated with these loan participation agreements. Under the RPAs, the Company will either receive or make a payment in the event the borrower defaults on the related interest rate contract. The Company has minimum collateral posting thresholds with certain of its risk participation counterparties, and has posted collateral of $650,000 against the potential risk of default by the borrower under these agreements. At March 31, 2021 and December 31, 2020, the Company had 13 credit derivatives, with aggregate notional amounts of $131.4 million and $121.7 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements. At March 31, 2021 and December 31, 2020, the fair value of these credit derivatives were $96,000 and $97,000, 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 payment 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. 

Changes in the fair value of derivatives designated and that qualify as cash flow hedges of interest rate risk 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, 2021 and 2020, such derivatives were used to hedge the variable cash outflows associated with borrowings and brokered money market deposits.

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 $3.5 million will be reclassified as an increase to interest expense. As of March 31, 2021, the Company had 14 outstanding interest rate derivatives with an aggregate notional amount of $600.0 million that were each designated as a cash flow hedge of interest rate risk.

The tables below presents 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, 2021 and December 31, 2020 (in thousands):

	At March 31, 2021
	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	$	74,668	Other liabilities	$	75,740
Credit contracts	Other assets	96		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	74,764		$	75,740
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	1,778	Other liabilities	$	2,488
Total derivatives designated as a hedging instrument		$	1,778		$	2,488

	At December 31, 2020
	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	$	107,652	Other liabilities	$	109,148
Credit contracts	Other assets	97		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	107,749		$	109,148
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	(6,671)	Other liabilities	$	—
Total derivatives designated as a hedging instrument		$	(6,671)		$	—

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three months ended March 31, 2021 and 2020 (in thousands).

		Gain (loss) recognized in income on derivatives for the three months ended
	Consolidated Statements of Income	March 31, 2021		March 31, 2020
Derivatives not designated as a hedging instrument:
Interest rate products	Other income	$	400	(819)
Credit contracts	Other income	23		(1)
Total		$	423	(820)
Derivatives designated as a hedging instrument:
		Loss recognized in  expense on derivatives
Interest rate products	Interest expense	$	879	106
Total		$	879	106

The Company has agreements with certain of its dealer counterparties which 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 deemed in default on its derivative obligations.

In addition, the Company has agreements with certain of its dealer counterparties which contain a provision that if the Company fails to maintain its status as a well or 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, 2021, the Company had four dealer counterparties. The Company had a net liability position with respect to all four of the counterparties. The termination value for this net liability position, which includes accrued interest, was $38.5 million at March 31, 2021. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $42.0 million against its obligations under these agreements. If the Company had breached any of these provisions at March 31, 2021, 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, 2021

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, 2021 and 2020, the out-of-scope revenue related to financial instruments was 82.3% and 84% 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, insurance agency income 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, 2021 and 2020:

	Three months ended March 31,
(in-thousands)	2021		2020
Non-interest income
In-scope of Topic 606:
Wealth management fees	$	7,134	6,251
Insurance agency income	2,727		—
Banking service charges and other fees:
Service charges on deposit accounts	2,497		2,977
Debit card and ATM fees	1,778		1,210
Total banking service charges and other fees	4,275		4,187
Total in-scope non-interest income	14,136		10,438
Total out-of-scope non-interest income	7,501		6,553
Total non-interest income	$	21,637	16,991

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 generally based upon the average market value of the assets under management ("AUM") 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 on a 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.

Insurance agency income, consisting of commissions and fees, is generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments. Profit-sharing contingent commissions are recognized when determinable, which is generally when such commissions are received from insurance companies, or when the Company receives formal notification of the amount of such payments.

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, 2021

Leases [Abstract]

Leases

Leases

The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities at March 31, 2021 and December 31, 2020 (in thousands):

	Classification	March 31, 2021		December 31, 2020
Lease Right-of-Use Assets:
Operating lease right-of-use assets	Other assets	$	40,960	$	41,142
Lease Liabilities:
Operating lease liabilities	Other liabilities	$	42,323	$	42,042

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 in 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.

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

At March 31, 2021, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 8.8 years and 3.14%, respectively.

The following tables represent 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):

	Three months ended March 31, 2021		Three months ended March 31, 2020
Lease Costs
Operating lease cost	$	2,812	$	2,130
Variable lease cost	803		607
Total lease cost	$	3,615	$	2,737

Cash paid for amounts included in the measurement of lease liabilities:	Three months ended March 31, 2021		Three months ended March 31, 2020
Operating cash flows from operating leases	$	2,345	2,125

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2021 were as follows (in thousands):

	Operating leases
Twelve months ended:
Remainder of 2021	$	6,472
2022	6,391
2023	5,878
2024	5,475
2025	4,887
Thereafter	20,027
Total future minimum lease payments	49,130
Amounts representing interest	6,807
Present value of net future minimum lease payments	$	42,323

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

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 credit 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, 2021 are not necessarily indicative of the results of operations that may be expected for all of 2021.

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.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 and 2020 (dollars in thousands, except per share amounts):

	Three months ended March 31,
	2021					2020
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	48,559				$	14,931
Basic earnings per share:
Income available to common stockholders	$	48,559	76,516,543	$	0.63	$	14,931	64,386,138	$	0.23
Dilutive shares			64,319					71,125
Diluted earnings per share:
Income available to common stockholders	$	48,559	76,580,862	$	0.63	$	14,931	64,457,263	$	0.23

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Business Combinations (Tables)

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Schedule of Estimated Fair Vales of Assets and Liabilities Assumed

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition from SB One (in thousands):

	At July 31, 2020
Assets acquired:
Cash and cash equivalents, net	$	78,089
Available for sale debt securities	231,645
Held to maturity debt securities	12,381
Federal Home Loan Bank stock	11,216
Loans	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Loans, net	1,752,529
Bank-owned life insurance	37,237
Banking premises and equipment	16,620
Accrued interest receivable	8,947
Goodwill	22,439
Other intangibles assets	9,965
Foreclosed assets, net	2,441
Other assets	12,199
Total assets acquired	$	2,195,708
Liabilities assumed:
Deposits	$	1,757,777
Borrowed funds	201,582
Subordinated debentures	25,074
Other liabilities	30,447
Total liabilities assumed	$	2,014,880
Net assets acquired	$	180,828

Schedule of Fair Value of Loans Acquired in Acquisition

The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired (in thousands):

Gross amortized cost basis at July 31, 2020	$	1,787,057
Interest rate fair value adjustment on all loans	455
Credit fair value adjustment on non-PCD loans	(21,397)
Fair value of acquired loans at July 31, 2020	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Fair value of acquired loans, net at July 31, 2020	$	1,752,529

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition as of the closing date (in thousands):

Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition at the July 31, 2020 closing date (in thousands):

Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Fair value of PCD loans	307,796
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,042,480	23,915	(6,243)	1,060,152
Asset-backed securities	47,329		1,876	—	49,205
State and municipal obligations	69,443		429	(938)	68,934
Corporate obligations	38,149		739	(243)	38,645
	$	1,197,401	26,959	(7,424)	1,216,936

	December 31, 2020
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	1,001	8	—	1,009
Mortgage-backed securities	910,393		28,872	(852)	938,413
Asset-backed securities	52,295		1,535	—	53,830
State and municipal obligations	69,687		1,666	(95)	71,258
Corporate obligations	40,194		809	(24)	40,979
	$	1,073,570	32,890	(971)	1,105,489

Available for sale Debt Securities with Temporary Impairment

The following tables present the fair values and gross unrealized losses for available for sale debt securities in an unrealized loss position at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	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	$	345,988	(6,209)	8,110	(34)	354,098	(6,243)
State and municipal obligations	40,517		(938)	—	—	40,517	(938)
Corporate obligations	6,655		(243)	—	—	6,655	(243)
	$	393,160	(7,390)	8,110	(34)	401,270	(7,424)

	December 31, 2020
	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	$	127,600	(824)	8,007	(28)	135,607	(852)
State and municipal obligations	5,275		(95)	—	—	5,275	(95)
Corporate obligations	—		—	2,000	(24)	2,000	(24)
	$	132,875	(919)	10,007	(52)	142,882	(971)

Investment Securities Held to Maturity

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses and the estimated fair value for held to maturity debt securities at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	8,998	1	(95)	8,904
Mortgage-backed securities	50		1	—	51
State and municipal obligations	428,631		16,970	(825)	444,776
Corporate obligations	10,300		65	(103)	10,262
	$	447,979	17,037	(1,023)	463,993

At March 31, 2021, the allowance for credit losses on held to maturity debt securities totaled $77,000.

	December 31, 2020
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Agency obligations	$	7,600	6	(5)	7,601
Mortgage-backed securities	62		2	—	64
State and municipal obligations	433,655		21,442	(58)	455,039
Corporate obligations	9,726		101	(2)	9,825
	$	451,043	21,551	(65)	472,529

At December 31, 2020, the allowance for credit losses on held to maturity debt securities totaled $78,000.

Schedule of Impact of ASC 326

The following table illustrates the impact of the January 1, 2020 adoption of CECL on held to maturity debt securities (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Held to Maturity Debt Securities
Allowance for credit losses on corporate securities	$	6	—	6
Allowance for credit losses on municipal securities	64		—	64
Allowance for credit losses on held to maturity debt securities	$	70	—	70

The following table illustrates the impact the January 1, 2020 adoption of CECL had on the allowance for credits losses for the loan portfolio (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Loans
Residential	$	8,950	3,414	5,536
Commercial	17,118		12,831	4,287
Multi-family	9,519		3,374	6,145
Construction	4,152		5,892	(1,740)
Total mortgage loans	39,739		25,511	14,228
Commercial loans	18,254		28,263	(10,009)
Consumer loans	5,452		1,751	3,701
Allowance for credit losses on loans	$	63,445	55,525	7,920

The following table illustrates the impact of the January 1, 2020 adoption of CECL on off-balance sheet credit exposures:

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Liabilities
Allowance for credit losses on off-balance sheet credit exposure	$	3,206	—	3,206

Schedule of Unrealized Loss on Investments

The following tables present the fair values and gross unrealized losses for held to maturity debt securities in an unrealized loss position at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021 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	$	6,903	(95)	—	—	6,903	(95)
State and municipal obligations	19,697		(809)	406	(16)	20,103	(825)
Corporate obligations	6,146		(103)	—	—	6,146	(103)
	$	32,746	(1,007)	406	(16)	33,152	(1,023)

	December 31, 2020 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	$	1,995	(5)	—	—	1,995	(5)
State and municipal obligations	4,846		(41)	406	(17)	5,252	(58)
Corporate obligations	786		(2)	—	—	786	(2)
	$	7,627	(48)	406	(17)	8,033	(65)

Amortized Cost of held To Maturity Debt Securities by Year of Originations and Credit Rating

Credit Quality Indicators. The following table provides the amortized cost of held to maturity debt securities by credit rating as of March 31, 2021 (in thousands):

	March 31, 2021
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Agency obligations	$	8,998	—	—	—	—	8,998
Mortgage-backed securities	50		—	—	—	—	50
State and municipal obligations	57,207		308,572	51,678	1,115	10,059	428,631
Corporate obligations	—		3,087	7,188	—	25	10,300
	$	66,255	311,659	58,866	1,115	10,084	447,979
	December 31, 2020
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Agency obligations	$	7,600	—	—	—	—	7,600
Mortgage-backed securities	62		—	—	—	—	62
State and municipal obligations	57,830		311,155	53,302	1,115	10,253	433,655
Corporate obligations	—		3,255	6,446	—	25	9,726
	$	65,492	314,410	59,748	1,115	10,278	451,043

Available-for-sale Securities

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, 2021, 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, 2021
	Amortized cost		Fair value
Due in one year or less	$	—	—
Due after one year through five years	3,651		3,761
Due after five years through ten years	38,002		38,532
Due after ten years	65,939		65,286
	$	107,592	107,579

Held-to-maturity Securities

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, 2021 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, 2021
	Amortized cost		Fair value
Due in one year or less	$	—	—
Due after one year through five years	163,682		167,460
Due after five years through ten years	213,875		224,327
Due after ten years	70,372		72,155
	$	447,929	463,942

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Loans Receivable and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of Summarized Loans Receivable

Loans receivable at March 31, 2021 and December 31, 2020 are summarized as follows (in thousands):

	March 31, 2021		December 31, 2020
Mortgage loans:
Residential	$	1,277,376	1,294,702
Commercial	3,594,012		3,458,666
Multi-family	1,458,193		1,484,515
Construction	615,706		541,939
Total mortgage loans	6,945,287		6,779,822
Commercial loans	2,510,708		2,567,470
Consumer loans	363,648		492,566
Total gross loans	9,819,643		9,839,858
Premiums on purchased loans	1,378		1,566
Unearned discounts	(7)		(12)
Net deferred fees	(17,478)		(18,522)
Total loans	$	9,803,536	9,822,890

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 (in thousands):

	March 31, 2021
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Residential	$	6,862	6,161	7,797	—	20,820	1,256,556	1,277,376	7,797
Commercial	2,183		520	33,742	—	36,445	3,557,567	3,594,012	33,742
Multi-family	1,327		—	101	—	1,428	1,456,765	1,458,193	101
Construction	1,123		1,656	1,392	—	4,171	611,535	615,706	1,392
Total mortgage loans	11,495		8,337	43,032	—	62,864	6,882,423	6,945,287	43,032
Commercial loans	393		235	36,042	—	36,670	2,474,038	2,510,708	21,298
Consumer loans	1,356		277	3,010	—	4,643	359,005	363,648	3,009
Total gross loans	$	13,244	8,849	82,084	—	104,177	9,715,466	9,819,643	67,339

	December 31, 2020
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Residential	$	15,789	8,852	9,315	—	33,956	1,260,746	1,294,702	9,315
Commercial	761		113	31,982	—	32,856	3,425,810	3,458,666	20,482
Multi-family	206		585	—	—	791	1,483,724	1,484,515	—
Construction	—		—	1,392	—	1,392	540,547	541,939	1,392
Total mortgage loans	16,756		9,550	42,689	—	68,995	6,710,827	6,779,822	31,189
Commercial loans	1,658		1,179	42,118	—	44,955	2,522,515	2,567,470	15,541
Consumer loans	4,348		4,519	2,283	—	11,150	481,416	492,566	2,283
Total gross loans	$	22,762	15,248	87,090	—	125,100	9,714,758	9,839,858	49,013

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

The activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2021 and 2020 was as follows (in thousands):

March 31, 2021	Mortgage loans		Commercial loans	Consumer loans	Total
Balance at beginning of period	$	68,307	27,084	6,075	101,466
Provision benefit to operations	(13,467)		(467)	(1,066)	(15,000)
Recoveries of loans previously charged-off	276		528	303	1,107
Loans charged-off	(918)		(843)	(221)	(1,982)
Balance at end of period	$	54,198	26,302	5,091	85,591
March 31, 2020	Mortgage loans		Commercial loans	Consumer loans	Total
Balance at beginning of period	$	25,511	28,263	1,751	55,525
Provision charge (benefit) to operations	7,710		7,619	(629)	14,700
Retained earnings (due to initial CECL adoption)	14,188		(9,974)	3,706	7,920
Recoveries of loans previously charged-off	93		313	123	529
Loans charged-off	(2)		(3,380)	(149)	(3,531)
Balance at end of period	$	47,500	22,841	4,802	75,143

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

	March 31, 2021
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	927	3,832	43	4,802
Collectively evaluated for impairment	53,271		22,470	5,048	80,789
Total gross loans	$	54,198	26,302	5,091	85,591

	December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total
Individually evaluated for impairment	$	4,220	4,715	39	8,974
Collectively evaluated for impairment	64,087		22,369	6,036	92,492
Total gross loans	$	68,307	27,084	6,075	101,466

Schedule of Impact of ASC 326

The following table illustrates the impact of the January 1, 2020 adoption of CECL on held to maturity debt securities (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Held to Maturity Debt Securities
Allowance for credit losses on corporate securities	$	6	—	6
Allowance for credit losses on municipal securities	64		—	64
Allowance for credit losses on held to maturity debt securities	$	70	—	70

The following table illustrates the impact the January 1, 2020 adoption of CECL had on the allowance for credits losses for the loan portfolio (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Loans
Residential	$	8,950	3,414	5,536
Commercial	17,118		12,831	4,287
Multi-family	9,519		3,374	6,145
Construction	4,152		5,892	(1,740)
Total mortgage loans	39,739		25,511	14,228
Commercial loans	18,254		28,263	(10,009)
Consumer loans	5,452		1,751	3,701
Allowance for credit losses on loans	$	63,445	55,525	7,920

The following table illustrates the impact of the January 1, 2020 adoption of CECL on off-balance sheet credit exposures:

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Liabilities
Allowance for credit losses on off-balance sheet credit exposure	$	3,206	—	3,206

Summary of Loans Receivable by Portfolio Segment and Impairment Method

The following tables summarize loans receivable by portfolio segment and impairment method (in thousands):

	March 31, 2021
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	49,783	28,359	1,405	79,547
Collectively evaluated for impairment	6,895,504		2,482,349	362,243	9,740,096
Total gross loans	$	6,945,287	2,510,708	363,648	9,819,643

	December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	48,783	35,832	1,431	86,046
Collectively evaluated for impairment	6,731,039		2,531,638	491,135	9,753,812
Total gross loans	$	6,779,822	2,567,470	492,566	9,839,858

Schedule of Troubled Debt Restructuring

The following tables present the number of loans modified as TDRs during the three months ended March 31, 2021 and 2020, along with their balances immediately prior to the modification date and post-modification as of March 31, 2021 and 2020 (in thousands):

	For the three months ended
	March 31, 2021					March 31, 2020
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)
Commercial loans	3	$	1,361	$	1,359	2	$	746	$	731
Total restructured loans	3	$	1,361	$	1,359	2	$	746	$	731

Schedule of Fair Value of Loans Acquired in Acquisition

The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired (in thousands):

Gross amortized cost basis at July 31, 2020	$	1,787,057
Interest rate fair value adjustment on all loans	455
Credit fair value adjustment on non-PCD loans	(21,397)
Fair value of acquired loans at July 31, 2020	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Fair value of acquired loans, net at July 31, 2020	$	1,752,529

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition as of the closing date (in thousands):

Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition at the July 31, 2020 closing date (in thousands):

Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Fair value of PCD loans	307,796
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

Summary of Impaired Loans Receivable by Class

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

	March 31, 2021						December 31, 2020
	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	$	12,267	9,794	—	10,083	118	13,981	11,380	—	11,587	511
Commercial	34,125		30,656	—	31,555	17	17,414	17,414	—	16,026	60
Total	46,392		40,450	—	41,638	135	31,395	28,794	—	27,613	571
Commercial loans	11,630		8,963	—	9,082	—	15,895	14,009	—	12,791	46
Consumer loans	1,360		857	—	2,319	13	1,382	880	—	7	50
Total impaired loans	$	59,382	50,270	—	53,039	148	48,672	43,683	—	40,411	667
Loans with an allowance recorded
Mortgage loans:
Residential	$	8,938	8,438	904	8,461	77	7,950	7,506	806	7,604	307
Commercial	895		895	23	925	13	14,993	12,483	3,414	123	570
Total	9,833		9,333	927	9,386	90	22,943	19,989	4,220	7,727	877
Commercial loans	22,622		19,396	3,832	23,451	123	24,947	21,823	4,715	18,620	311
Consumer loans	563		548	43	550	10	565	551	39	5	20
Total impaired loans	$	33,018	29,277	4,802	33,387	223	48,455	42,363	8,974	26,352	1,208
Total impaired loans
Mortgage loans:
Residential	$	21,205	18,232	904	18,544	195	21,931	18,886	806	19,191	818
Commercial	35,020		31,551	23	32,480	30	32,407	29,897	3,414	16,149	630
Total	56,225		49,783	927	51,024	225	54,338	48,783	4,220	35,340	1,448
Commercial loans	34,252		28,359	3,832	32,533	123	40,842	35,832	4,715	31,411	357
Consumer loans	1,923		1,405	43	2,869	23	1,947	1,431	39	12	70
Total impaired loans	$	92,400	79,547	4,802	86,426	371	97,127	86,046	8,974	66,763	1,875

Summary of Loans Receivable by Credit Quality Risk Rating Indicator

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades (in thousands):

	At March 31, 2021
Total portfolio	Residential		Commercial mortgage		Multi-family		Construction		Total mortgages		Commercial		Consumer		Total Loans (1)
Special mention	$	5,847	129,051		35,885		25,409		196,192		115,619		529		312,340
Substandard	23,416		109,689		1,552		5,736		140,393		124,581		3,836		268,810
Doubtful	—		—		—		—		—		20		—		20
Loss	—		—		—		—		—		—		—		—
Total criticized and classified	29,263		238,740		37,437		31,145		336,585		240,220		4,365		581,170
Pass/Watch	1,248,113		3,355,272		1,420,756		584,561		6,608,702		2,270,488		359,283		9,238,473
Total	$	1,277,376	3,594,012		1,458,193		615,706		6,945,287		2,510,708		363,648		9,819,643
2021
Special mention	$	—	—		—		—		—		23		—		23
Substandard	—		—		—		—		—		391		—		391
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total criticized and classified	—		—		—		—		—		414		—		414
Pass/Watch	82,831		78,552		31,141		14,913		207,437		252,045		8,947		468,429
Total gross loans	$	82,831	78,552		31,141		14,913		207,437		252,459		8,947		468,843
2020
Special mention	$	—	$	—	$	—	$	1,986	$	1,986	$	345	$	—	$	2,331
Substandard	163		—		—		—		163		1,824		—		1,987
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—

Total criticized and classified	163		—	—	1,986	2,149	2,169	—	4,318
Pass/Watch	262,032		670,040	296,124	123,927	1,352,123	595,559	39,107	1,986,789
Total gross loans	$	262,195	670,040	296,124	125,913	1,354,272	597,728	39,107	1,991,107
2019
Special mention	$	661	30,310	679	16,189	47,839	8,819	—	56,658
Substandard	3,773		2,426	—	—	6,199	9,856	361	16,416
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	4,434		32,736	679	16,189	54,038	18,675	361	73,074
Pass/Watch	139,951		632,084	177,648	259,223	1,208,906	246,072	46,155	1,501,133
Total gross loans	$	144,385	664,820	178,327	275,412	1,262,944	264,747	46,516	1,574,207
2018
Special mention	$	2,425	39,825	20,125	—	62,375	3,578	—	65,953
Substandard	744		5,383	—	5,121	11,248	6,568	120	17,936
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	3,169		45,208	20,125	5,121	73,623	10,146	120	83,889
Pass/Watch	81,320		385,080	183,343	145,307	795,050	228,963	44,128	1,068,141
Total gross loans	$	84,489	430,288	203,468	150,428	868,673	239,109	44,248	1,152,030
2017 and prior
Special mention	$	2,761	58,916	15,081	7,234	83,992	102,854	529	187,375
Substandard	18,736		101,880	1,552	615	122,783	105,942	3,355	232,080
Doubtful	—		—	—	—	—	20	—	20
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	21,497		160,796	16,633	7,849	206,775	208,816	3,884	419,475
Pass/Watch	681,979		1,589,516	732,500	41,191	3,045,186	947,849	220,946	4,213,981
Total gross loans	$	703,476	1,750,312	749,133	49,040	3,251,961	1,156,665	224,830	4,633,456
	At December 31, 2020
	Residential		Commercial mortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	2,882	124,631	29,781	24,376	181,670	157,080	1,867	340,617
Substandard	26,651		98,313	1,568	4,924	131,456	127,092	6,746	265,294
Doubtful	—		—	—	—	—	52	—	52
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	29,533		222,944	31,349	29,300	313,126	284,224	8,613	605,963
Pass/Watch	1,265,169		3,235,722	1,453,166	512,639	6,466,696	2,283,246	483,953	9,233,895
Total	$	1,294,702	3,458,666	1,484,515	541,939	6,779,822	2,567,470	492,566	9,839,858

(1) Contained within criticized and classified loans at March 31, 2021 are loans that were granted payment deferrals related to COVID-19 totaling $132.0 million

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Deposits (Tables)

3 Months Ended

Mar. 31, 2021

Banking and Thrift, Other Disclosures [Abstract]

Schedule of Deposits

Deposits at March 31, 2021 and December 31, 2020 are summarized as follows (in thousands):

	March 31, 2021		December 31, 2020
Savings	$	1,402,363	1,348,147
Money market	2,345,640		2,245,412
NOW	3,075,098		2,808,637
Non-interest bearing	2,511,408		2,341,459
Certificates of deposit	963,004		1,094,174
Total deposits	$	10,297,513	9,837,829

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Components of Net Periodic Benefit Cost (Tables)

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Net Periodic Benefit Cost (Increase)

Net periodic (benefit) increase cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2021 and 2020 includes the following components (in thousands):

	Three months ended March 31,
	Pension benefits			Other post-retirement benefits
	2021		2020	2021	2020
Service cost	$	—	—	9	20
Interest cost	198		250	106	178
Expected return on plan assets	(807)		(737)	—	—
Amortization of prior service cost	—		—	—	—
Amortization of the net loss (gain)	118		174	(268)	(62)
Net periodic (benefit) increase cost	$	(491)	(313)	(153)	136

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Allowance for Credit Losses on Off-Balance Sheet Credit Exposures (Tables)

3 Months Ended

Mar. 31, 2021

Credit Loss [Abstract]

Schedule of Impact of ASC 326

The following table illustrates the impact of the January 1, 2020 adoption of CECL on held to maturity debt securities (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Held to Maturity Debt Securities
Allowance for credit losses on corporate securities	$	6	—	6
Allowance for credit losses on municipal securities	64		—	64
Allowance for credit losses on held to maturity debt securities	$	70	—	70

The following table illustrates the impact the January 1, 2020 adoption of CECL had on the allowance for credits losses for the loan portfolio (in thousands):

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Loans
Residential	$	8,950	3,414	5,536
Commercial	17,118		12,831	4,287
Multi-family	9,519		3,374	6,145
Construction	4,152		5,892	(1,740)
Total mortgage loans	39,739		25,511	14,228
Commercial loans	18,254		28,263	(10,009)
Consumer loans	5,452		1,751	3,701
Allowance for credit losses on loans	$	63,445	55,525	7,920

The following table illustrates the impact of the January 1, 2020 adoption of CECL on off-balance sheet credit exposures:

	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Liabilities
Allowance for credit losses on off-balance sheet credit exposure	$	3,206	—	3,206

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 and December 31, 2020, by level within the fair value hierarchy (in thousands):

	Fair Value Measurements at Reporting Date Using:
	March 31, 2021		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	$	1,060,152	—	1,060,152	—
Asset-backed securities	49,205		—	49,205	—
State and municipal obligations	68,934		—	68,934	—
Corporate obligations	38,645		—	38,645	—
Total available for sale debt securities	1,216,936		—	1,216,936	—
Equity securities	1,026		1,026	—	—
Derivative assets	76,542		—	76,542	—
	$	1,294,504	1,026	1,293,478	—
Derivative liabilities	$	78,228	—	78,228	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	30,120	—	—	30,120
Foreclosed assets	3,554		—	—	3,554
	$	33,674	—	—	33,674

	Fair Value Measurements at Reporting Date Using:
	December 31, 2020		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:
Agency obligations	$	1,009	1,009	—	—
Mortgage-backed securities	938,413		—	938,413	—
Asset-backed securities	53,830			53,830
State and municipal obligations	71,258		—	71,258	—
Corporate obligations	40,979		—	40,979	—
Total available for sale debt securities	1,105,489		1,009	1,104,480	—
Equity Securities	971		971	—	—
Derivative assets	101,079		—	101,079	—
	$	1,207,539	1,980	1,205,559	—
Derivative liabilities	$	109,148	—	109,148	—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral	$	26,250	—	—	26,250
Foreclosed assets	4,475		—	—	4,475
	$	30,725	—	—	30,725

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, 2021 and December 31, 2020. Fair values are presented by level within the fair value hierarchy.

			Fair Value Measurements at March 31, 2021 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	$	687,570	687,570	687,570	—	—
Available for sale debt securities:
Mortgage-backed securities	1,060,152		1,060,152	—	1,060,152	—
Asset-backed securities	49,205		49,205		49,205
State and municipal obligations	68,934		68,934	—	68,934	—
Corporate obligations	38,645		38,645	—	38,645	—
Total available for sale debt securities	$	1,216,936	1,216,936	—	1,216,936	—
Held to maturity debt securities, net of allowance for credit losses:
Agency obligations	8,998		8,904	8,904	—	—
Mortgage-backed securities	50		51	—	51	—
State and municipal obligations	428,571		444,776	—	444,776	—
Corporate obligations	10,283		10,262	—	10,262	—
Total held to maturity debt securities, net of allowance for credit losses	$	447,902	463,993	8,904	455,089	—
FHLBNY stock	48,998		48,998	48,998	—	—
Equity Securities	1,026		1,026	1,026	—	—
Loans, net of allowance for credit losses	9,717,945		9,857,891	—	—	9,857,891
Derivative assets	76,542		76,542	—	76,542	—
Financial liabilities:
Deposits other than certificates of deposits	$	9,334,509	9,334,509	9,334,509	—	—
Certificates of deposit	963,004		967,088	—	967,088	—
Total deposits	$	10,297,513	10,301,597	9,334,509	967,088	—
Borrowings	940,611		945,538	—	945,538	—
Subordinated debentures	25,173		30,325	—	30,325	—
Derivative liabilities	78,228		78,228	—	78,228	—

			Fair Value Measurements at December 31, 2020 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	$	532,353	532,353	532,353	—	—
Available for sale debt securities:
U.S. Treasury obligations			—	—	—	—
Agency obligations	1,009		1,009	1,009	—	—
Mortgage-backed securities	938,413		938,413	—	938,413	—
Asset-backed securities	53,830		53,830		53,830
State and municipal obligations	71,258		71,258	—	71,258	—
Corporate obligations	40,979		40,979	—	40,979	—
Total available for sale debt securities	$	1,105,489	1,105,489	1,009	1,104,480	—
Held to maturity debt securities:
Agency obligations	$	7,600	7,601	7,601	—	—
Mortgage-backed securities	62		64	—	64	—
State and municipal obligations	433,589		454,973	—	454,973	—
Corporate obligations	9,714		9,813	—	9,813	—
Total held to maturity debt securities, net of allowance for credit losses	$	450,965	472,451	7,601	464,850	—
FHLBNY stock	59,489		59,489	59,489	—	—
Equity securities	971		971	971	—	—
Loans, net of allowance for credit losses	9,721,424		9,969,330	—	—	9,969,330
Derivative assets	101,079		101,079	—	101,079	—
Financial liabilities:
Deposits other than certificates of deposits	$	8,743,655	8,743,655	8,743,655	—	—
Certificates of deposit	1,094,174		1,097,993	—	1,097,993	—
Total deposits	$	9,837,829	9,841,648	8,743,655	1,097,993	—
Borrowings	1,175,972		1,193,024	—	1,193,024	—
Subordinated debentures	25,135		24,375	—	24,375	—
Derivative liabilities	109,148		109,148	—	109,148	—

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Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Components of Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive (loss) income, both gross and net of tax, for the three months ended March 31, 2021 and 2020 (in thousands):

	Three months ended March 31,
	2021				2020
	Before Tax		Tax Effect	After Tax	Before Tax	Tax Effect	After Tax
Components of Other Comprehensive (Loss) Income:
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	$	(12,152)	3,133	(9,019)	22,563	(5,817)	16,746
Reclassification adjustment for gains included in net income	(230)		59	(171)	—	—	—
Total	(12,382)		3,192	(9,190)	22,563	(5,817)	16,746
Unrealized gains (losses) on derivatives (cash flow hedges)	6,226		(1,605)	4,621	(7,697)	1,984	(5,713)
Amortization related to post-retirement obligations	(150)		41	(109)	112	(28)	84
Total other comprehensive (loss) income	$	(6,306)	1,628	(4,678)	14,978	(3,861)	11,117

Components of Accumulated Other Comprehensive Income, Net of Tax

The following tables present the changes in the components of accumulated other comprehensive income, net of tax, for the three months ended March 31, 2021 and 2020 (in thousands):

	Changes in Accumulated Other Comprehensive Income (Loss) by Component, net of tax for the three months ended March 31,
	2021					2020
	Unrealized Gains (Losses) on Available for Sale Debt Securities		Post- Retirement Obligations	Unrealized (Losses) Gains on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Income (Loss)	Unrealized Gains on  Available for Sale Debt Securities	Post-  Retirement Obligations	Unrealized Gains (Losses) on Derivatives (cash flow hedges)	Accumulated Other Comprehensive Income
Balance at December 31,	$	23,690	(1,081)	(4,954)	17,655	8,746	(5,240)	315	3,821
Current - period other comprehensive (loss) income	(9,190)		(109)	4,621	(4,678)	16,746	84	(5,713)	11,117
Balance at March 31,	$	14,500	(1,190)	(333)	12,977	25,492	(5,156)	(5,398)	14,938

Summary of Reclassifications Out of Accumulated Other Comprehensive Income

The following tables summarize the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income for the three months ended March 31, 2021 and 2020 (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
	2021		2020
Details of AOCI:
Available for sale debt securities:
Realized net gains on the sale of securities available for sale	$	230	—	Net gain on securities transactions
	(59)		—	Income tax expense
	171		—	Net of tax
Post-retirement obligations:
Amortization of actuarial (losses) gains	$	(150)	112	Compensation and employee benefits (1)
	41		(28)	Income tax expense
Total reclassification	$	(109)	84	Net of tax

(1) This item is included in the computation of net periodic benefit cost. See Note 6. Components of Net Periodic Benefit Cost.

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Financial Instruments

The tables below presents 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, 2021 and December 31, 2020 (in thousands):

	At March 31, 2021
	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	$	74,668	Other liabilities	$	75,740
Credit contracts	Other assets	96		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	74,764		$	75,740
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	1,778	Other liabilities	$	2,488
Total derivatives designated as a hedging instrument		$	1,778		$	2,488

	At December 31, 2020
	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	$	107,652	Other liabilities	$	109,148
Credit contracts	Other assets	97		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	107,749		$	109,148
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	(6,671)	Other liabilities	$	—
Total derivatives designated as a hedging instrument		$	(6,671)		$	—

Effect of the derivative financial instruments on the Income Statement

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three months ended March 31, 2021 and 2020 (in thousands).

		Gain (loss) recognized in income on derivatives for the three months ended
	Consolidated Statements of Income	March 31, 2021		March 31, 2020
Derivatives not designated as a hedging instrument:
Interest rate products	Other income	$	400	(819)
Credit contracts	Other income	23		(1)
Total		$	423	(820)
Derivatives designated as a hedging instrument:
		Loss recognized in  expense on derivatives
Interest rate products	Interest expense	$	879	106
Total		$	879	106

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 and 2020:

	Three months ended March 31,
(in-thousands)	2021		2020
Non-interest income
In-scope of Topic 606:
Wealth management fees	$	7,134	6,251
Insurance agency income	2,727		—
Banking service charges and other fees:
Service charges on deposit accounts	2,497		2,977
Debit card and ATM fees	1,778		1,210
Total banking service charges and other fees	4,275		4,187
Total in-scope non-interest income	14,136		10,438
Total out-of-scope non-interest income	7,501		6,553
Total non-interest income	$	21,637	16,991

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Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Supplemental Balance Sheet Information

The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities at March 31, 2021 and December 31, 2020 (in thousands):

	Classification	March 31, 2021		December 31, 2020
Lease Right-of-Use Assets:
Operating lease right-of-use assets	Other assets	$	40,960	$	41,142
Lease Liabilities:
Operating lease liabilities	Other liabilities	$	42,323	$	42,042

Schedule of Supplemental Cash Flow and Other information Related to Leases

The following tables represent 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):

	Three months ended March 31, 2021		Three months ended March 31, 2020
Lease Costs
Operating lease cost	$	2,812	$	2,130
Variable lease cost	803		607
Total lease cost	$	3,615	$	2,737

Cash paid for amounts included in the measurement of lease liabilities:	Three months ended March 31, 2021		Three months ended March 31, 2020
Operating cash flows from operating leases	$	2,345	2,125

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, 2021 were as follows (in thousands):

	Operating leases
Twelve months ended:
Remainder of 2021	$	6,472
2022	6,391
2023	5,878
2024	5,475
2025	4,887
Thereafter	20,027
Total future minimum lease payments	49,130
Amounts representing interest	6,807
Present value of net future minimum lease payments	$	42,323

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Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounting Policies [Abstract]
Net income	$ 48,559	$ 14,931
Basic earnings per share:
Income available to common stockholders, basic	$ 48,559	$ 14,931
Weighted average common shares outstanding, basic (in shares)	76,516,543	64,386,138
Income available to common stockholders, per share amount, basic (usd per share)	$ 0.63	$ 0.23
Dilutive shares (in shares)	64,319	71,125
Diluted earnings per share:
Income available to common stockholders, diluted	$ 48,559	$ 14,931
Weighted average common shares outstanding, diluted (in shares)	76,580,862	64,457,263
Income available to common stockholders, per share amount, diluted (usd per share)	$ 0.63	$ 0.23

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Summary of Significant Accounting Policies (Narrative) (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounting Policies [Abstract]
Anti-dilutive stock options and awards excluded from computation of earnings per share (in shares)	1,200,000	905,673

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Business Combinations - SB One Bancorp Acquisition (Details) $ in Thousands		3 Months Ended
	Jul. 31, 2020 USD ($) numberOfBankingOffices shares	Mar. 31, 2021 USD ($) branch	Dec. 31, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jan. 01, 2020 USD ($)	Dec. 31, 2019 USD ($)
Business Acquisition [Line Items]
Fair value of acquired loans at July 31, 2020	$ 1,766,115
Excess of consideration paid recorded as goodwill	22,400
Fair value premium	8,400
Allowance for credit losses		$ 85,591	$ 101,466	$ 75,143	$ 55,525	$ 55,525
Number of branches acquired | branch		18
Number of branches owned | branch		8
Subordinated debentures		$ 25,173	$ 25,135
SB One Bancorp
Business Acquisition [Line Items]
Business combination assets acquired	$ 2,195,708
Number of banking offices | numberOfBankingOffices	18
Common stock portion, number of SB One Bancorp stock for each share of company common stock converted | shares	1.357
Common stock, total amount of company stock | shares	12,800,000
Total cost of acquisition	$ 180,800
Fair value premium	133
Allowance for credit losses	13,600
Bank-owned life insurance	37,200
Time deposit discount	4,300
Subordinated debentures	27,500
SB One Bancorp | Core Deposits
Business Acquisition [Line Items]
Intangible asset	$ 3,200
Estimated useful life	10 years
SB One Bancorp | Customer Relationships
Business Acquisition [Line Items]
Intangible asset	$ 6,800
Estimated useful life	13 years
SB One Bancorp | Loans
Business Acquisition [Line Items]
Fair value of acquired loans at July 31, 2020	$ 1,770,000
SB One Bancorp | Deposits
Business Acquisition [Line Items]
Fair value of acquired loans at July 31, 2020	$ 1,760,000

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Business Combinations - Estimated Fair Values of the Assets Acquired and the Liabilities Assumed (Details) - SB One Bancorp $ in Thousands	Jul. 31, 2020 USD ($)
Assets acquired
Cash and cash equivalents, net	$ 78,089
Available for sale debt securities	231,645
Held to maturity debt securities	12,381
Federal Home Loan Bank stock	11,216
Loans	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Loans, net	1,752,529
Bank-owned life insurance	37,237
Banking premises and equipment	16,620
Accrued interest receivable	8,947
Goodwill	22,439
Other intangibles assets	9,965
Foreclosed assets, net	2,441
Other assets	12,199
Total assets acquired	2,195,708
Liabilities assumed:
Deposits	1,757,777
Borrowed funds	201,582
Subordinated debentures	25,074
Other liabilities	30,447
Total liabilities assumed	2,014,880
Net assets acquired	$ 180,828

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Business Combinations - Fair Value Adjustments Made to the Amortized Cost (Details) $ in Thousands	Jul. 31, 2020 USD ($)
Business Acquisition [Line Items]
Gross amortized cost basis at July 31, 2020	$ 1,787,057
Interest rate fair value adjustment on all loans	455
Credit fair value adjustment on non-PCD loans	(21,397)
Fair value of acquired loans at July 31, 2020	1,766,115
Allowance for credit losses on PCD loans	(13,586)
Loans, net	$ 1,752,529

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Business Combinations - Summary of PCD Loans (Details) - SB One Bancorp $ in Thousands	Jul. 31, 2020 USD ($)
Business Acquisition [Line Items]
Fair value of acquired loans at July 31, 2020	$ 315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Allowance for credit losses on PCD loans	(13,586)
Loans, net	$ 294,210

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Business Combinations - Tirschwell & Loewy, Inc Acquisition (Details) $ in Thousands	Jul. 31, 2020 USD ($)
Business Acquisition [Line Items]
Assets under management	$ 1,766,115

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Investment Securities (Narrative) (Detail)	3 Months Ended
	Mar. 31, 2021 USD ($) security position	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) security position	Jan. 01, 2020 USD ($)	Dec. 31, 2019 USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Available for sale debt securities, at fair value	$ 1,216,936,000		$ 1,105,489,000
Securities held to maturity	$ 447,902,000		$ 450,965,000
Total number of all held to maturity and available for sale securities in an unrealized loss position | security	122		49
Allowance for credit losses	$ 77,000		$ 78,000		$ 0
Retained earnings	748,574,000		718,090,000
Securities available for sale, amortized cost	1,197,401,000		$ 1,073,570,000
Proceeds from sales of securities	9,442,000	$ 0
Loss on sale of securities	$ 0
Securities available for sale, number of securities in an unrealized loss position | position	81		42
Unrealized loss	$ 7,424,000		$ 971,000
Amortized cost, net of allowance for credit losses	447,979,000		451,043,000
Held to maturity securities, proceeds from calls	6,800,000	13,300,000
Held to maturity securities, recognized gain on calls	0	11,000
Held to maturity securities, recognized loss on calls	33,000	0
Investment securities held to maturity, fair value	463,993,000		472,529,000
Allowance for credit losses	$ 85,591,000	$ 75,143,000	$ 101,466,000	$ 55,525,000	$ 55,525,000
Number of securities in an unrealized loss position | security	41		7
AAA
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	$ 66,255,000		$ 65,492,000
Amount of total portfolio	15.00%
AA
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	$ 311,659,000		314,410,000
Amount of total portfolio	70.00%
A
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	$ 58,866,000		59,748,000
Amount of total portfolio	13.00%
A rated or not rated
Schedule of Held-to-maturity Securities [Line Items]
Amount of total portfolio	2.00%
Private Label Mortgage-Backed Securities
Schedule of Held-to-maturity Securities [Line Items]
Securities available for sale, amortized cost	$ 17,445
Securities available for sale, number of securities in an unrealized loss position | position	1
Unrealized loss	$ 690
Available-for-sale Securities
Schedule of Held-to-maturity Securities [Line Items]
Proceeds from sales of securities	9,400,000
Gain on sale of securities	230,000
Accounting Standards Update 2016-13
Schedule of Held-to-maturity Securities [Line Items]
Allowance for credit losses				70,000
Allowance for credit losses				7,900,000
Accounting Standards Update 2016-13, Effect On Debt Securities
Schedule of Held-to-maturity Securities [Line Items]
Retained earnings				$ 52,000
Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Available for sale debt securities, at fair value	1,060,152,000		938,413,000
Securities available for sale, amortized cost	1,042,480,000		910,393,000
Unrealized loss	6,243,000		852,000
Amortized cost, net of allowance for credit losses	50,000		62,000
Held-to-maturity securities, amortized cost	50,000
Investment securities held to maturity, fair value	51,000		64,000
Allowance for credit losses	77,000
Mortgage-backed securities | AAA
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	50,000		62,000
Mortgage-backed securities | AA
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0		0
Mortgage-backed securities | A
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0		$ 0
Investments
Schedule of Held-to-maturity Securities [Line Items]
Available for sale debt securities, at fair value	1,110,000,000
Securities available for sale, amortized cost	$ 1,090,000,000.00

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Investment Securities (Securities Available for Sale) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 1,197,401	$ 1,073,570
Gross unrealized gains	26,959	32,890
Gross unrealized losses	(7,424)	(971)
Available for sale debt securities, at fair value	1,216,936	1,105,489
Agency Obligations
Debt Securities, Available-for-sale [Line Items]
Amortized cost		1,001
Gross unrealized gains		8
Gross unrealized losses		0
Available for sale debt securities, at fair value		1,009
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	1,042,480	910,393
Gross unrealized gains	23,915	28,872
Gross unrealized losses	(6,243)	(852)
Available for sale debt securities, at fair value	1,060,152	938,413
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	47,329	52,295
Gross unrealized gains	1,876	1,535
Gross unrealized losses	0	0
Available for sale debt securities, at fair value	49,205	53,830
State And Municipal Obligations
Debt Securities, Available-for-sale [Line Items]
Amortized cost	69,443	69,687
Gross unrealized gains	429	1,666
Gross unrealized losses	(938)	(95)
Available for sale debt securities, at fair value	68,934	71,258
Corporate Obligations
Debt Securities, Available-for-sale [Line Items]
Amortized cost	38,149	40,194
Gross unrealized gains	739	809
Gross unrealized losses	(243)	(24)
Available for sale debt securities, at fair value	$ 38,645	$ 40,979

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Investment Securities (Available for Sale by Contractual Maturity) (Detail) $ in Thousands	Mar. 31, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, amortized cost	$ 0
Due after one year through five years, amortized cost	3,651
Due after five years through ten years, amortized cost	38,002
Due after ten years, amortized cost	65,939
Amortized cost	107,592
Due in one year or less, fair value	0
Due after one year through five years, fair value	3,761
Due after five years through ten years, fair value	38,532
Due after ten years, fair value	65,286
Fair value	$ 107,579

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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, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	$ 393,160	$ 132,875
Less than 12 months, gross unrealized losses	(7,390)	(919)
12 months or longer, fair value	8,110	10,007
12 months or longer, gross unrealized losses	(34)	(52)
Total, fair value	401,270	142,882
Total, gross unrealized losses	(7,424)	(971)
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	345,988	127,600
Less than 12 months, gross unrealized losses	(6,209)	(824)
12 months or longer, fair value	8,110	8,007
12 months or longer, gross unrealized losses	(34)	(28)
Total, fair value	354,098	135,607
Total, gross unrealized losses	(6,243)	(852)
State And Municipal Obligations
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	40,517	5,275
Less than 12 months, gross unrealized losses	(938)	(95)
12 months or longer, fair value	0	0
12 months or longer, gross unrealized losses	0	0
Total, fair value	40,517	5,275
Total, gross unrealized losses	(938)	(95)
Corporate Obligations
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	6,655	0
Less than 12 months, gross unrealized losses	(243)	0
12 months or longer, fair value	0	2,000
12 months or longer, gross unrealized losses	0	(24)
Total, fair value	6,655	2,000
Total, gross unrealized losses	$ (243)	$ (24)

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Investment Securities (Held to Maturity) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 447,979	$ 451,043
Gross unrealized gains	17,037	21,551
Gross unrealized losses	(1,023)	(65)
Allowance for credit losses	(77)	(78)	$ 0
Held to maturity debt securities	463,993	472,529
Held to maturity debt securities, net (fair value of $463,993 at March 31, 2021 (unaudited) and $472,529 at December 31, 2020)	447,902	450,965
Agency Obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	8,998	7,600
Gross unrealized gains	1	6
Gross unrealized losses	(95)	(5)
Held to maturity debt securities	8,904	7,601
Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	50	62
Gross unrealized gains	1	2
Gross unrealized losses	0	0
Held to maturity debt securities	51	64
State And Municipal Obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	428,631	433,655
Gross unrealized gains	16,970	21,442
Gross unrealized losses	(825)	(58)
Held to maturity debt securities	444,776	455,039
Corporate Obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	10,300	9,726
Gross unrealized gains	65	101
Gross unrealized losses	(103)	(2)
Allowance for credit losses			$ 0
Held to maturity debt securities	$ 10,262	$ 9,825

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Investment Securities (Securities Held to Maturity by Contractual Maturity) (Detail) $ in Thousands	Mar. 31, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, amortized cost	$ 0
Due after one year through five years, amortized cost	163,682
Due after five years through ten years, amortized cost	213,875
Due after ten years, amortized cost	70,372
Amortized cost	447,929
Due in one year or less, fair value	0
Due after one year through five years, fair value	167,460
Due after five years through ten years, fair value	224,327
Due after ten years, fair value	72,155
Fair value	$ 463,942

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Investment Securities - (ASU 2016-13 Adoption Impact) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses	$ 77	$ 78		$ 0
Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses			$ 70
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses			70
Corporate Obligations
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses				0
Corporate Obligations | Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses			6
Corporate Obligations | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses			6
Municipal Notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses				$ 0
Municipal Notes | Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses			64
Municipal Notes | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses			$ 64

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Investment Securities (Disclosure Regarding Length of Time on Investment Securities with Temporary Impairment) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	$ 32,746	$ 7,627
Less than 12 months, gross unrealized losses	(1,007)	(48)
12 months or longer, fair value	406	406
12 months or longer, gross unrealized losses	(16)	(17)
Total, fair value	33,152	8,033
Total, gross unrealized losses	(1,023)	(65)
Agency Obligations
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	6,903	1,995
Less than 12 months, gross unrealized losses	(95)	(5)
12 months or longer, fair value	0	0
12 months or longer, gross unrealized losses	0	0
Total, fair value	6,903	1,995
Total, gross unrealized losses	(95)	(5)
State And Municipal Obligations
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	19,697	4,846
Less than 12 months, gross unrealized losses	(809)	(41)
12 months or longer, fair value	406	406
12 months or longer, gross unrealized losses	(16)	(17)
Total, fair value	20,103	5,252
Total, gross unrealized losses	(825)	(58)
Corporate Obligations
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	6,146	786
Less than 12 months, gross unrealized losses	(103)	(2)
12 months or longer, fair value	0	0
12 months or longer, gross unrealized losses	0	0
Total, fair value	6,146	786
Total, gross unrealized losses	$ (103)	$ (2)

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Investment Securities (Amortized Cost of held to Maturity Debt Securities by Year of Originations and Credit Rating) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	$ 447,902	$ 450,965
Amortized cost	447,979	451,043
Agency Obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	8,998	7,600
Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	50	62
State And Municipal Obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	428,631	433,655
Corporate Obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	10,300	9,726
AAA
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	66,255	65,492
AAA | Agency Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	8,998	7,600
AAA | Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	50	62
AAA | State And Municipal Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	57,207	57,830
AAA | Corporate Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
AA
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	311,659	314,410
AA | Agency Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
AA | Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
AA | State And Municipal Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	308,572	311,155
AA | Corporate Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	3,087	3,255
A
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	58,866	59,748
A | Agency Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
A | Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
A | State And Municipal Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	51,678	53,302
A | Corporate Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	7,188	6,446
BBB
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	1,115	1,115
BBB | Agency Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
BBB | Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
BBB | State And Municipal Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	1,115	1,115
BBB | Corporate Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
Not Rated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	10,084	10,278
Not Rated | Agency Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
Not Rated | Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	0	0
Not Rated | State And Municipal Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	10,059	10,253
Not Rated | Corporate Obligations
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	$ 25	$ 25

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Loans Receivable and Allowance for Credit Losses (Narrative) (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2021 USD ($) borrower SecurityLoan counterparty troubled_debt_restructuring	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) SecurityLoan borrower troubled_debt_restructuring	Jul. 31, 2020 USD ($)	Jan. 01, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total gross loans	$ 9,819,643,000		$ 9,839,858,000
Less allowance for credit losses	85,591,000	$ 75,143,000	101,466,000		$ 55,525,000	$ 55,525,000
Retained earnings	748,574,000		718,090,000
Principal amount of nonaccrual loans	82,100,000		87,100,000
Loans less than 90 days past due	$ 27,100,000		$ 35,300,000
Number of loans 90 days past due and still accruing | SecurityLoan	0		0
Impaired loan defined floor limit (greater than)	$ 1,000,000.0
Impaired loans number | SecurityLoan	167		169
Impaired loans	$ 79,547,000		$ 86,046,000
Number of troubled debt restructurings | troubled_debt_restructuring	115		135
Number of borrowers | borrower	112		110
Loans and leases receivable, impaired, nonperforming, accrual of interest			$ 39,600,000
Collateral-dependent impaired loans	$ 30,100,000		26,300,000
Provision (benefit) charge for credit losses	(15,001,000)	14,717,000
Charge off on TDRs	$ 1,500,000
Number of payment defaults for loans modified as TDRs | SecurityLoan	0
Purchased credit-impaired loans			746,000
Allowances for loan losses	$ 4,802,000		8,974,000
Impaired financing receivable with no related allowance	50,300,000		43,700,000
Average balance of impaired loans	86,426,000		66,763,000
Total gross loans	$ 9,803,536,000		9,822,890,000
Number of PPP loans | counterparty	1,318
Paycheck protection program	$ 664,500,000
Number of PPP loans forgiven | SecurityLoan	670
Paycheck protection program, amount forgiven	$ 182,600,000
Paycheck protection program, amount outstanding	481,900,000
SB One Bancorp
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less allowance for credit losses				$ 13,600,000
Purchased credit-impaired (PCI) loans | SB One Bancorp
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less allowance for credit losses	10,800,000		13,100,000
Total gross loans	283,900,000		296,600,000
Performing Financial Instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans and leases receivable, impaired, nonperforming, accrual of interest	22,700,000		$ 23,100,000
Consumer Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	216,000
Commercial Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	28,300,000
Residential Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	1,600,000
Impaired Loans Troubled Debt Restructurings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans number | SecurityLoan			112
Allowances for loan losses	0
Commercial Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total gross loans	2,510,708,000		$ 2,567,470,000
Less allowance for credit losses	26,302,000	$ 22,841,000	27,084,000		28,263,000	$ 28,263,000
Impaired loans	28,359,000		35,832,000
Allowances for loan losses	3,832,000		4,715,000
Average balance of impaired loans	32,533,000		$ 31,411,000
Commercial Loans | SB One Bancorp
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total gross loans	$ 101,700,000
Accounting Standards Update 2016-13
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less allowance for credit losses					7,900,000
Accounting Standards Update 2016-13, Effect On Loans Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Retained earnings					$ 5,900,000

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Loans Receivable and Allowance for Credit Losses (Schedule of Summarized Loans Receivable) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	$ 9,819,643	$ 9,839,858
Premiums on purchased loans	1,378	1,566
Unearned discounts	(7)	(12)
Net deferred fees	(17,478)	(18,522)
Total loans	9,803,536	9,822,890
Mortgage Portfolio Segment
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	6,945,287	6,779,822
Mortgage Portfolio Segment | Residential
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	1,277,376	1,294,702
Mortgage Portfolio Segment | Commercial
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	3,594,012	3,458,666
Mortgage Portfolio Segment | Multi-Family
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	1,458,193	1,484,515
Mortgage Portfolio Segment | Construction
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	615,706	541,939
Commercial Loans
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	2,510,708	2,567,470
Consumer Loans
Servicing Liability at Amortized Cost [Line Items]
Total gross loans	$ 363,648	$ 492,566

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Loans Receivable and Allowance for Credit Losses (Summary of Aging Loans Receivable by Portfolio Segment and Class) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	$ 82,084	$ 87,090
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	104,177	125,100
Current	9,715,466	9,714,758
Total loans	9,819,643	9,839,858
Non-accrual loans with no related allowance	67,339	49,013
Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	13,244	22,762
Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	8,849	15,248
Mortgage Portfolio Segment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	43,032	42,689
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	62,864	68,995
Current	6,882,423	6,710,827
Total loans	6,945,287	6,779,822
Non-accrual loans with no related allowance	43,032	31,189
Mortgage Portfolio Segment | Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	7,797	9,315
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	20,820	33,956
Current	1,256,556	1,260,746
Total loans	1,277,376	1,294,702
Non-accrual loans with no related allowance	7,797	9,315
Mortgage Portfolio Segment | Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	33,742	31,982
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	36,445	32,856
Current	3,557,567	3,425,810
Total loans	3,594,012	3,458,666
Non-accrual loans with no related allowance	33,742	20,482
Mortgage Portfolio Segment | Multi-Family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	101	0
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	1,428	791
Current	1,456,765	1,483,724
Total loans	1,458,193	1,484,515
Non-accrual loans with no related allowance	101	0
Mortgage Portfolio Segment | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	1,392	1,392
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	4,171	1,392
Current	611,535	540,547
Total loans	615,706	541,939
Non-accrual loans with no related allowance	1,392	1,392
Mortgage Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	11,495	16,756
Mortgage Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	6,862	15,789
Mortgage Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	2,183	761
Mortgage Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Multi-Family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	1,327	206
Mortgage Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	1,123	0
Mortgage Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	8,337	9,550
Mortgage Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	6,161	8,852
Mortgage Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	520	113
Mortgage Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Multi-Family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	0	585
Mortgage Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	1,656	0
Commercial Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	36,042	42,118
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	36,670	44,955
Current	2,474,038	2,522,515
Total loans	2,510,708	2,567,470
Non-accrual loans with no related allowance	21,298	15,541
Commercial Loans | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	393	1,658
Commercial Loans | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	235	1,179
Consumer Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	3,010	2,283
Recorded Investment greater than 90 days accruing	0	0
Total Past Due	4,643	11,150
Current	359,005	481,416
Total loans	363,648	492,566
Non-accrual loans with no related allowance	3,009	2,283
Consumer Loans | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	1,356	4,348
Consumer Loans | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment past due	$ 277	$ 4,519

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Loans Receivable and Allowance for Credit Losses (Schedule of Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	$ 101,466	$ 55,525
Provision benefit to operations	(15,000)	14,700
Retained earnings (due to initial CECL adoption)		7,920
Recoveries of loans previously charged-off	1,107	529
Loans charged-off	(1,982)	(3,531)
Balance at end of period	85,591	75,143
Mortgage Portfolio Segment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	68,307	25,511
Provision benefit to operations	(13,467)	7,710
Retained earnings (due to initial CECL adoption)		14,188
Recoveries of loans previously charged-off	276	93
Loans charged-off	(918)	(2)
Balance at end of period	54,198	47,500
Commercial Loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	27,084	28,263
Provision benefit to operations	(467)	7,619
Retained earnings (due to initial CECL adoption)		(9,974)
Recoveries of loans previously charged-off	528	313
Loans charged-off	(843)	(3,380)
Balance at end of period	26,302	22,841
Consumer Loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	6,075	1,751
Provision benefit to operations	(1,066)	(629)
Retained earnings (due to initial CECL adoption)		3,706
Recoveries of loans previously charged-off	303	123
Loans charged-off	(221)	(149)
Balance at end of period	$ 5,091	$ 4,802

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Loans Receivable and Allowance for Credit Losses (Impact of ASC 326 Adoption) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses	$ 85,591	$ 101,466	$ 75,143	$ 55,525	$ 55,525
Mortgage Portfolio
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				25,511
Mortgage Portfolio | Residential
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				3,414
Mortgage Portfolio | Commercial
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				12,831
Mortgage Portfolio | Multifamily
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				3,374
Mortgage Portfolio | Construction
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				5,892
Commercial Loans
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses	26,302	27,084	22,841	28,263	28,263
Consumer Loans
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses	$ 5,091	$ 6,075	$ 4,802	1,751	$ 1,751
Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				63,445
Cumulative Effect, Period of Adoption, Adjusted Balance | Mortgage Portfolio
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				39,739
Cumulative Effect, Period of Adoption, Adjusted Balance | Mortgage Portfolio | Residential
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				8,950
Cumulative Effect, Period of Adoption, Adjusted Balance | Mortgage Portfolio | Commercial
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				17,118
Cumulative Effect, Period of Adoption, Adjusted Balance | Mortgage Portfolio | Multifamily
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				9,519
Cumulative Effect, Period of Adoption, Adjusted Balance | Mortgage Portfolio | Construction
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				4,152
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial Loans
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				18,254
Cumulative Effect, Period of Adoption, Adjusted Balance | Consumer Loans
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				5,452
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				7,920
Cumulative Effect, Period of Adoption, Adjustment | Mortgage Portfolio
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				14,228
Cumulative Effect, Period of Adoption, Adjustment | Mortgage Portfolio | Residential
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				5,536
Cumulative Effect, Period of Adoption, Adjustment | Mortgage Portfolio | Commercial
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				4,287
Cumulative Effect, Period of Adoption, Adjustment | Mortgage Portfolio | Multifamily
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				6,145
Cumulative Effect, Period of Adoption, Adjustment | Mortgage Portfolio | Construction
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				(1,740)
Cumulative Effect, Period of Adoption, Adjustment | Commercial Loans
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				(10,009)
Cumulative Effect, Period of Adoption, Adjustment | Consumer Loans
New Accounting Pronouncement, Early Adoption [Line Items]
Allowance for credit losses				$ 3,701

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Loans Receivable and Allowance for Credit Losses (Summary of Loans Receivable by Portfolio Segment and Impairment Method) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 79,547	$ 86,046
Collectively evaluated for impairment	9,740,096	9,753,812
Total loans	9,819,643	9,839,858
Mortgage Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	49,783	48,783
Collectively evaluated for impairment	6,895,504	6,731,039
Total loans	6,945,287	6,779,822
Commercial Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	28,359	35,832
Collectively evaluated for impairment	2,482,349	2,531,638
Total loans	2,510,708	2,567,470
Consumer Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	1,405	1,431
Collectively evaluated for impairment	362,243	491,135
Total loans	$ 363,648	$ 492,566

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Loans Receivable and Allowance for Credit Losses (Summary of Allowance for Loan Losses by Portfolio Segment and Impairment Classification) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 4,802	$ 8,974
Collectively evaluated for impairment	80,789	92,492
Total	85,591	101,466	$ 75,143	$ 55,525	$ 55,525
Mortgage Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	927	4,220
Collectively evaluated for impairment	53,271	64,087
Total	54,198	68,307	47,500		25,511
Commercial Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	3,832	4,715
Collectively evaluated for impairment	22,470	22,369
Total	26,302	27,084	22,841	28,263	28,263
Consumer Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	43	39
Collectively evaluated for impairment	5,048	6,036
Total	$ 5,091	$ 6,075	$ 4,802	$ 1,751	$ 1,751

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Loans Receivable and Allowance for Credit Losses (Schedule of Troubled Debt Restructurings) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) counterparty	Mar. 31, 2020 USD ($) counterparty
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | counterparty	3	2
Pre-Modification Outstanding Recorded  Investment	$ 1,361	$ 746
Post-Modification Outstanding Recorded Investment	$ 1,359	$ 731
Commercial Loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | counterparty	3	2
Pre-Modification Outstanding Recorded  Investment	$ 1,361	$ 746
Post-Modification Outstanding Recorded Investment	$ 1,359	$ 731

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Loans Receivable and Allowance for Credit Losses (Schedule of Trouble Debt Restructuring Subsequently Defaulted) (Details)	3 Months Ended
	Mar. 31, 2021 SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of payment defaults for loans modified as TDRs	0

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Loans Receivable and Allowance for Credit Losses (Summary of PCD Loans) (Details) - SB One Bancorp $ in Thousands	Jul. 31, 2020 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Fair value of acquired loans at July 31, 2020	$ 315,784
Interest rate fair value adjustment on all loans	7,988
Fair value of PCD loans	307,796
Allowance for credit losses on PCD loans	13,586
Loans, net	$ 294,210

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Loans Receivable and Allowance for Credit Losses (Summary of Impaired Loans Receivable by Class) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	$ 59,382	$ 48,672
Loans with no related allowance, Recorded Investment	50,270	43,683
Loans with no related allowance, Average Recorded Investment	53,039	40,411
Loans with no related allowance, Interest Income Recognized	148	667
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	33,018	48,455
Loans with an allowance recorded, Recorded Investment	29,277	42,363
Loans with an allowance recorded, Average Recorded Investment	33,387	26,352
Loans with an allowance recorded, Interest Income Recognized	223	1,208
Total impaired loans
Unpaid Principal Balance	92,400	97,127
Recorded Investment	79,547	86,046
Related Allowance	4,802	8,974
Average Recorded Investment	86,426	66,763
Interest Income Recognized	371	1,875
Mortgage Portfolio Segment
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	46,392	31,395
Loans with no related allowance, Recorded Investment	40,450	28,794
Loans with no related allowance, Average Recorded Investment	41,638	27,613
Loans with no related allowance, Interest Income Recognized	135	571
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	9,833	22,943
Loans with an allowance recorded, Recorded Investment	9,333	19,989
Loans with an allowance recorded, Average Recorded Investment	9,386	7,727
Loans with an allowance recorded, Interest Income Recognized	90	877
Total impaired loans
Unpaid Principal Balance	56,225	54,338
Recorded Investment	49,783	48,783
Related Allowance	927	4,220
Average Recorded Investment	51,024	35,340
Interest Income Recognized	225	1,448
Mortgage Portfolio Segment | Residential
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	12,267	13,981
Loans with no related allowance, Recorded Investment	9,794	11,380
Loans with no related allowance, Average Recorded Investment	10,083	11,587
Loans with no related allowance, Interest Income Recognized	118	511
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	8,938	7,950
Loans with an allowance recorded, Recorded Investment	8,438	7,506
Loans with an allowance recorded, Average Recorded Investment	8,461	7,604
Loans with an allowance recorded, Interest Income Recognized	77	307
Total impaired loans
Unpaid Principal Balance	21,205	21,931
Recorded Investment	18,232	18,886
Related Allowance	904	806
Average Recorded Investment	18,544	19,191
Interest Income Recognized	195	818
Mortgage Portfolio Segment | Commercial
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	34,125	17,414
Loans with no related allowance, Recorded Investment	30,656	17,414
Loans with no related allowance, Average Recorded Investment	31,555	16,026
Loans with no related allowance, Interest Income Recognized	17	60
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	895	14,993
Loans with an allowance recorded, Recorded Investment	895	12,483
Loans with an allowance recorded, Average Recorded Investment	925	123
Loans with an allowance recorded, Interest Income Recognized	13	570
Total impaired loans
Unpaid Principal Balance	35,020	32,407
Recorded Investment	31,551	29,897
Related Allowance	23	3,414
Average Recorded Investment	32,480	16,149
Interest Income Recognized	30	630
Commercial Loans
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	11,630	15,895
Loans with no related allowance, Recorded Investment	8,963	14,009
Loans with no related allowance, Average Recorded Investment	9,082	12,791
Loans with no related allowance, Interest Income Recognized	0	46
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	22,622	24,947
Loans with an allowance recorded, Recorded Investment	19,396	21,823
Loans with an allowance recorded, Average Recorded Investment	23,451	18,620
Loans with an allowance recorded, Interest Income Recognized	123	311
Total impaired loans
Unpaid Principal Balance	34,252	40,842
Recorded Investment	28,359	35,832
Related Allowance	3,832	4,715
Average Recorded Investment	32,533	31,411
Interest Income Recognized	123	357
Consumer Loans
Loans with no related allowance
Loans with no related allowance, Unpaid Principal Balance	1,360	1,382
Loans with no related allowance, Recorded Investment	857	880
Loans with no related allowance, Average Recorded Investment	2,319	7
Loans with no related allowance, Interest Income Recognized	13	50
Loans with an allowance recorded
Loans with an allowance recorded, Unpaid Principal Balance	563	565
Loans with an allowance recorded, Recorded Investment	548	551
Loans with an allowance recorded, Average Recorded Investment	550	5
Loans with an allowance recorded, Interest Income Recognized	10	20
Total impaired loans
Unpaid Principal Balance	1,923	1,947
Recorded Investment	1,405	1,431
Related Allowance	43	39
Average Recorded Investment	2,869	12
Interest Income Recognized	$ 23	$ 70

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Loans Receivable and Allowance for Credit Losses (Summary of COVID-19 Impact) (Details) - USD ($) $ in Thousands	Apr. 20, 2021	Mar. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans		$ 9,803,536	$ 9,822,890
First 90-day Deferral Period | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 300
Second 90-Day Deferral Period, Expected To Be Granted | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	46,600
Completed Deferral Period | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	85,100
Loans In Deferral, Total Amount | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	123,500
Principal Only Deferral | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 119,000
Percentage of total loans	96.40%
Hotel | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 40,900
Multifamily | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	33,100
Retail Properties | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	8,600
Restaurants | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	6,500
Residential | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	8,500
Payment Deferral | Maximum | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 1,310,000
Percentage of total loans	16.80%
Payment Deferral | Minimum | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 132,000
Percentage of total loans	1.30%

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Loans Receivable and Allowance for Credit Losses (Summary of Loans Receivable by Credit Quality Risk Rating Indicator) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
2021	$ 468,843
2020	1,991,107
2019	1,574,207
2018	1,152,030
2017 and prior	4,633,456
Total gross loans	9,819,643	$ 9,839,858
Criticized
Financing Receivable, Recorded Investment [Line Items]
2021	414
2020	4,318
2019	73,074
2018	83,889
2017 and prior	419,475
Criticized and classified loans, gross	132,000
Total gross loans	581,170	605,963
Special Mention
Financing Receivable, Recorded Investment [Line Items]
2021	23
2020	2,331
2019	56,658
2018	65,953
2017 and prior	187,375
Total gross loans	312,340	340,617
Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	391
2020	1,987
2019	16,416
2018	17,936
2017 and prior	232,080
Total gross loans	268,810	265,294
Doubtful
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	20
Total gross loans	20	52
Loss
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Pass/Watch
Financing Receivable, Recorded Investment [Line Items]
2021	468,429
2020	1,986,789
2019	1,501,133
2018	1,068,141
2017 and prior	4,213,981
Total gross loans	9,238,473	9,233,895
Mortgage Portfolio Segment
Financing Receivable, Recorded Investment [Line Items]
2021	207,437
2020	1,354,272
2019	1,262,944
2018	868,673
2017 and prior	3,251,961
Total gross loans	6,945,287	6,779,822
Mortgage Portfolio Segment | Criticized
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	2,149
2019	54,038
2018	73,623
2017 and prior	206,775
Total gross loans	336,585	313,126
Mortgage Portfolio Segment | Special Mention
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	1,986
2019	47,839
2018	62,375
2017 and prior	83,992
Total gross loans	196,192	181,670
Mortgage Portfolio Segment | Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	163
2019	6,199
2018	11,248
2017 and prior	122,783
Total gross loans	140,393	131,456
Mortgage Portfolio Segment | Doubtful
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Loss
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Pass/Watch
Financing Receivable, Recorded Investment [Line Items]
2021	207,437
2020	1,352,123
2019	1,208,906
2018	795,050
2017 and prior	3,045,186
Total gross loans	6,608,702	6,466,696
Mortgage Portfolio Segment | Residential
Financing Receivable, Recorded Investment [Line Items]
2021	82,831
2020	262,195
2019	144,385
2018	84,489
2017 and prior	703,476
Total gross loans	1,277,376	1,294,702
Mortgage Portfolio Segment | Residential | Criticized
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	163
2019	4,434
2018	3,169
2017 and prior	21,497
Total gross loans	29,263	29,533
Mortgage Portfolio Segment | Residential | Special Mention
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	661
2018	2,425
2017 and prior	2,761
Total gross loans	5,847	2,882
Mortgage Portfolio Segment | Residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	163
2019	3,773
2018	744
2017 and prior	18,736
Total gross loans	23,416	26,651
Mortgage Portfolio Segment | Residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Residential | Loss
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Residential | Pass/Watch
Financing Receivable, Recorded Investment [Line Items]
2021	82,831
2020	262,032
2019	139,951
2018	81,320
2017 and prior	681,979
Total gross loans	1,248,113	1,265,169
Mortgage Portfolio Segment | Commercial
Financing Receivable, Recorded Investment [Line Items]
2021	78,552
2020	670,040
2019	664,820
2018	430,288
2017 and prior	1,750,312
Total gross loans	3,594,012	3,458,666
Mortgage Portfolio Segment | Commercial | Criticized
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	32,736
2018	45,208
2017 and prior	160,796
Total gross loans	238,740	222,944
Mortgage Portfolio Segment | Commercial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	30,310
2018	39,825
2017 and prior	58,916
Total gross loans	129,051	124,631
Mortgage Portfolio Segment | Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	2,426
2018	5,383
2017 and prior	101,880
Total gross loans	109,689	98,313
Mortgage Portfolio Segment | Commercial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Commercial | Loss
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Commercial | Pass/Watch
Financing Receivable, Recorded Investment [Line Items]
2021	78,552
2020	670,040
2019	632,084
2018	385,080
2017 and prior	1,589,516
Total gross loans	3,355,272	3,235,722
Mortgage Portfolio Segment | Multi-Family
Financing Receivable, Recorded Investment [Line Items]
2021	31,141
2020	296,124
2019	178,327
2018	203,468
2017 and prior	749,133
Total gross loans	1,458,193	1,484,515
Mortgage Portfolio Segment | Multi-Family | Criticized
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	679
2018	20,125
2017 and prior	16,633
Total gross loans	37,437	31,349
Mortgage Portfolio Segment | Multi-Family | Special Mention
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	679
2018	20,125
2017 and prior	15,081
Total gross loans	35,885	29,781
Mortgage Portfolio Segment | Multi-Family | Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	1,552
Total gross loans	1,552	1,568
Mortgage Portfolio Segment | Multi-Family | Doubtful
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Multi-Family | Loss
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Multi-Family | Pass/Watch
Financing Receivable, Recorded Investment [Line Items]
2021	31,141
2020	296,124
2019	177,648
2018	183,343
2017 and prior	732,500
Total gross loans	1,420,756	1,453,166
Mortgage Portfolio Segment | Construction
Financing Receivable, Recorded Investment [Line Items]
2021	14,913
2020	125,913
2019	275,412
2018	150,428
2017 and prior	49,040
Total gross loans	615,706	541,939
Mortgage Portfolio Segment | Construction | Criticized
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	1,986
2019	16,189
2018	5,121
2017 and prior	7,849
Total gross loans	31,145	29,300
Mortgage Portfolio Segment | Construction | Special Mention
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	1,986
2019	16,189
2018	0
2017 and prior	7,234
Total gross loans	25,409	24,376
Mortgage Portfolio Segment | Construction | Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	5,121
2017 and prior	615
Total gross loans	5,736	4,924
Mortgage Portfolio Segment | Construction | Doubtful
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Construction | Loss
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Mortgage Portfolio Segment | Construction | Pass/Watch
Financing Receivable, Recorded Investment [Line Items]
2021	14,913
2020	123,927
2019	259,223
2018	145,307
2017 and prior	41,191
Total gross loans	584,561	512,639
Commercial Loans
Financing Receivable, Recorded Investment [Line Items]
2021	252,459
2020	597,728
2019	264,747
2018	239,109
2017 and prior	1,156,665
Total gross loans	2,510,708	2,567,470
Commercial Loans | Criticized
Financing Receivable, Recorded Investment [Line Items]
2021	414
2020	2,169
2019	18,675
2018	10,146
2017 and prior	208,816
Total gross loans	240,220	284,224
Commercial Loans | Special Mention
Financing Receivable, Recorded Investment [Line Items]
2021	23
2020	345
2019	8,819
2018	3,578
2017 and prior	102,854
Total gross loans	115,619	157,080
Commercial Loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	391
2020	1,824
2019	9,856
2018	6,568
2017 and prior	105,942
Total gross loans	124,581	127,092
Commercial Loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	20
Total gross loans	20	52
Commercial Loans | Loss
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Commercial Loans | Pass/Watch
Financing Receivable, Recorded Investment [Line Items]
2021	252,045
2020	595,559
2019	246,072
2018	228,963
2017 and prior	947,849
Total gross loans	2,270,488	2,283,246
Consumer Loans
Financing Receivable, Recorded Investment [Line Items]
2021	8,947
2020	39,107
2019	46,516
2018	44,248
2017 and prior	224,830
Total gross loans	363,648	492,566
Consumer Loans | Criticized
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	361
2018	120
2017 and prior	3,884
Total gross loans	4,365	8,613
Consumer Loans | Special Mention
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	529
Total gross loans	529	1,867
Consumer Loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	361
2018	120
2017 and prior	3,355
Total gross loans	3,836	6,746
Consumer Loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Consumer Loans | Loss
Financing Receivable, Recorded Investment [Line Items]
2021	0
2020	0
2019	0
2018	0
2017 and prior	0
Total gross loans	0	0
Consumer Loans | Pass/Watch
Financing Receivable, Recorded Investment [Line Items]
2021	8,947
2020	39,107
2019	46,155
2018	44,128
2017 and prior	220,946
Total gross loans	$ 359,283	$ 483,953

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Deposits (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Banking and Thrift, Other Disclosures [Abstract]
Savings	$ 1,402,363	$ 1,348,147
Money market	2,345,640	2,245,412
NOW	3,075,098	2,808,637
Non-interest bearing	2,511,408	2,341,459
Certificates of deposit	963,004	1,094,174
Total deposits	$ 10,297,513	$ 9,837,829

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Components of Net Periodic Benefit Cost (Narrative) (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	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

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Components of Net Periodic Benefit Cost (Benefit Cost (Increase) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Pension benefits
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	$ 0	$ 0
Interest cost	198	250
Expected return on plan assets	(807)	(737)
Amortization of prior service cost	0	0
Amortization of the net loss (gain)	118	174
Net periodic (benefit) increase cost	(491)	(313)
Other post-retirement benefits
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	9	20
Interest cost	106	178
Expected return on plan assets	0	0
Amortization of prior service cost	0	0
Amortization of the net loss (gain)	(268)	(62)
Net periodic (benefit) increase cost	$ (153)	$ 136

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Allowance for Credit Losses on Off-Balance Sheet Credit Exposures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jan. 01, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Provision for credit losses for off-balance sheet credit exposure	$ 4,100		$ 5,000	$ 0
Retained earnings	748,574		$ 718,090
Provision (benefit) charge for credit losses	(15,001)	$ 14,717
Credit loss (benefit) expense for off-balance sheet credit exposures	$ 875	$ (1,000)
Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Provision for credit losses for off-balance sheet credit exposure				3,206
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Provision for credit losses for off-balance sheet credit exposure				3,206
Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Provision for credit losses for off-balance sheet credit exposure				3,200
Accounting Standards Update 2016-13, Effect On Off-Balance Sheet Items
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings				$ 2,400

XML

Fair Value Measurements (Narrative) (Detail) $ in Thousands	Mar. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	$ 42,600	$ 114,300
Available for sale debt securities:	1,216,936	1,105,489
Subordinated debentures	25,173	25,135
Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,216,936	1,105,489
Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	1,009
Subordinated debentures	0	0
Quoted Prices in Active  Markets for Identical Assets (Level 1) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	1,009
Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,216,936	1,104,480
Subordinated debentures	30,325	24,375
Significant Other Observable  Inputs (Level 2) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,216,936	1,104,480
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Subordinated debentures	0	0
Significant Unobservable Inputs (Level 3) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Agency Obligations | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		1,009
Agency Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		1,009
Agency Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		1,009
Agency Obligations | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		0
Agency Obligations | Significant Other Observable  Inputs (Level 2) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		0
Agency Obligations | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		0
Agency Obligations | Significant Unobservable Inputs (Level 3) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		0
Mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Mortgage-backed securities | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Mortgage-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Mortgage-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Mortgage-backed securities | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Mortgage-backed securities | Significant Other Observable  Inputs (Level 2) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Mortgage-backed securities | Significant Unobservable Inputs (Level 3) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Asset-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Asset-backed securities | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Asset-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:
Asset-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0
Asset-backed securities | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Asset-backed securities | Significant Other Observable  Inputs (Level 2) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Asset-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:
Asset-backed securities | Significant Unobservable Inputs (Level 3) | Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,216,936	1,105,489
Subordinated debentures	25,173	25,135
Carrying Value | Agency Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		1,009
Carrying Value | Mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Carrying Value | Asset-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,216,936	1,105,489
Subordinated debentures	30,325	24,375
Fair Value | Agency Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		1,009
Fair Value | Mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Fair Value | Asset-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	$ 49,205	$ 53,830
Valuation, Market Approach | Measurement Input, Cost to Sell | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans, measurement input | security	0.05
Foreclosed assets, measurement input | security	0.05
Valuation, Market Approach | Measurement Input, Cost to Sell | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans, measurement input | security	0.10
Foreclosed assets, measurement input | security	0.10

XML

Fair Value Measurements (Assets and Liabilities) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	$ 1,216,936	$ 1,105,489
Equity securities	1,026	971
Derivative liabilities	38,500
Foreclosed assets	3,554	4,475
Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	1,009
Equity securities	1,026	971
Derivative assets	0	0
Derivative liabilities	0	0
Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,216,936	1,104,480
Equity securities	0	0
Derivative assets	76,542	101,079
Derivative liabilities	78,228	109,148
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Equity securities	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Agency Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		1,009
Agency Obligations | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		0
Agency Obligations | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		0
Mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Mortgage-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Mortgage-backed securities | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Asset-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Asset-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:
Asset-backed securities | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Asset-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:
State And Municipal Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	68,934	71,258
State And Municipal Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
State And Municipal Obligations | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	68,934	71,258
State And Municipal Obligations | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Corporate Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	38,645	40,979
Corporate Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Corporate Obligations | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	38,645	40,979
Corporate Obligations | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Measured on a Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,216,936	1,105,489
Equity securities	1,026	971
Derivative assets	76,542	101,079
Total assets at fair value	1,294,504	1,207,539
Derivative liabilities	78,228	109,148
Measured on a Recurring Basis | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	1,009
Equity securities	1,026	971
Derivative assets	0	0
Total assets at fair value	1,026	1,980
Derivative liabilities	0	0
Measured on a Recurring Basis | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,216,936	1,104,480
Equity securities	0	0
Derivative assets	76,542	101,079
Total assets at fair value	1,293,478	1,205,559
Derivative liabilities	78,228	109,148
Measured on a Recurring Basis | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	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 | Agency Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		1,009
Measured on a Recurring Basis | Agency Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		1,009
Measured on a Recurring Basis | Agency Obligations | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		0
Measured on a Recurring Basis | Agency Obligations | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:		0
Measured on a Recurring Basis | Mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Measured on a Recurring Basis | Mortgage-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Measured on a Recurring Basis | Mortgage-backed securities | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	1,060,152	938,413
Measured on a Recurring Basis | Mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Measured on a Recurring Basis | Asset-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Measured on a Recurring Basis | Asset-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0
Measured on a Recurring Basis | Asset-backed securities | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	49,205	53,830
Measured on a Recurring Basis | Asset-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0
Measured on a Recurring Basis | State And Municipal Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	68,934	71,258
Measured on a Recurring Basis | State And Municipal Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Measured on a Recurring Basis | State And Municipal Obligations | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	68,934	71,258
Measured on a Recurring Basis | State And Municipal Obligations | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Measured on a Recurring Basis | Corporate Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	38,645	40,979
Measured on a Recurring Basis | Corporate Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Measured on a Recurring Basis | Corporate Obligations | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	38,645	40,979
Measured on a Recurring Basis | Corporate Obligations | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale debt securities:	0	0
Measured on a Non-Recurring Basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets at fair value	33,674	30,725
Loans measured for impairment based on the fair value of the underlying collateral	30,120	26,250
Foreclosed assets	3,554	4,475
Measured on a Non-Recurring Basis | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets at fair value	0	0
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 | Significant Other Observable  Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets at fair value	0	0
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 | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets at fair value	33,674	30,725
Loans measured for impairment based on the fair value of the underlying collateral	30,120	26,250
Foreclosed assets	$ 3,554	$ 4,475

XML

Fair Value Measurements (Financial Instruments) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Financial assets:
Cash and cash equivalents	$ 687,570	$ 532,353
Available for sale debt securities, at fair value	1,216,936	1,105,489
Investment securities held to maturity, fair value	463,993	472,529
Federal Home Loan Bank stock	48,998	59,489
Equity securities	1,026	971
Total loans	9,717,945	9,721,424
Financial liabilities:
Certificates of deposit	963,004	1,094,174
Total deposits	10,297,513	9,837,829
Borrowed funds	940,611	1,175,972
Subordinated debentures	25,173	25,135
Derivative liabilities	38,500
Quoted Prices in Active  Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	687,570	532,353
Available for sale debt securities, at fair value	0	1,009
Investment securities held to maturity, fair value	8,904	7,601
Federal Home Loan Bank stock	48,998	59,489
Equity securities	1,026	971
Total loans	0	0
Derivative assets	0	0
Financial liabilities:
Deposits other than certificates of deposits	9,334,509	8,743,655
Certificates of deposit	0	0
Total deposits	9,334,509	8,743,655
Borrowed funds	0	0
Subordinated debentures	0	0
Derivative liabilities	0	0
Significant Other Observable  Inputs (Level 2)
Financial assets:
Cash and cash equivalents	0	0
Available for sale debt securities, at fair value	1,216,936	1,104,480
Investment securities held to maturity, fair value	455,089	464,850
Federal Home Loan Bank stock	0	0
Equity securities	0	0
Total loans	0	0
Derivative assets	76,542	101,079
Financial liabilities:
Deposits other than certificates of deposits	0	0
Certificates of deposit	967,088	1,097,993
Total deposits	967,088	1,097,993
Borrowed funds	945,538	1,193,024
Subordinated debentures	30,325	24,375
Derivative liabilities	78,228	109,148
Significant Unobservable Inputs (Level 3)
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
Federal Home Loan Bank stock	0	0
Equity securities	0	0
Total loans	9,857,891	9,969,330
Derivative assets	0	0
Financial liabilities:
Deposits other than certificates of deposits	0	0
Certificates of deposit	0	0
Total deposits	0	0
Borrowed funds	0	0
Subordinated debentures	0	0
Derivative liabilities	0	0
US Treasury Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Financial assets:
Available for sale debt securities, at fair value		0
US Treasury Obligations | Significant Other Observable  Inputs (Level 2)
Financial assets:
Available for sale debt securities, at fair value		0
US Treasury Obligations | Significant Unobservable Inputs (Level 3)
Financial assets:
Available for sale debt securities, at fair value		0
Agency Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Financial assets:
Available for sale debt securities, at fair value		1,009
Investment securities held to maturity, fair value	8,904	7,601
Agency Obligations | Significant Other Observable  Inputs (Level 2)
Financial assets:
Available for sale debt securities, at fair value		0
Investment securities held to maturity, fair value	0	0
Agency Obligations | Significant Unobservable Inputs (Level 3)
Financial assets:
Available for sale debt securities, at fair value		0
Investment securities held to maturity, fair value	0	0
Mortgage-backed securities
Financial assets:
Available for sale debt securities, at fair value	1,060,152	938,413
Investment securities held to maturity, fair value	51	64
Mortgage-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Mortgage-backed securities | Significant Other Observable  Inputs (Level 2)
Financial assets:
Available for sale debt securities, at fair value	1,060,152	938,413
Investment securities held to maturity, fair value	51	64
Mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Asset-backed securities
Financial assets:
Available for sale debt securities, at fair value	49,205	53,830
Asset-backed securities | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Financial assets:
Available for sale debt securities, at fair value
Asset-backed securities | Significant Other Observable  Inputs (Level 2)
Financial assets:
Available for sale debt securities, at fair value	49,205	53,830
Asset-backed securities | Significant Unobservable Inputs (Level 3)
Financial assets:
Available for sale debt securities, at fair value
State And Municipal Obligations
Financial assets:
Available for sale debt securities, at fair value	68,934	71,258
Investment securities held to maturity, fair value	444,776	455,039
State And Municipal Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
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 | Significant Other Observable  Inputs (Level 2)
Financial assets:
Available for sale debt securities, at fair value	68,934	71,258
Investment securities held to maturity, fair value	444,776	454,973
State And Municipal Obligations | Significant Unobservable Inputs (Level 3)
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Corporate Obligations
Financial assets:
Available for sale debt securities, at fair value	38,645	40,979
Investment securities held to maturity, fair value	10,262	9,825
Corporate Obligations | Quoted Prices in Active  Markets for Identical Assets (Level 1)
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Corporate Obligations | Significant Other Observable  Inputs (Level 2)
Financial assets:
Available for sale debt securities, at fair value	38,645	40,979
Investment securities held to maturity, fair value	10,262	9,813
Corporate Obligations | Significant Unobservable Inputs (Level 3)
Financial assets:
Available for sale debt securities, at fair value	0	0
Investment securities held to maturity, fair value	0	0
Carrying Value
Financial assets:
Cash and cash equivalents		532,353	$ 687,570
Available for sale debt securities, at fair value	1,216,936	1,105,489
Investment securities held to maturity, fair value	447,902	450,965
Federal Home Loan Bank stock	48,998	59,489
Equity securities	1,026	971
Total loans	9,717,945	9,721,424
Derivative assets	76,542	101,079
Financial liabilities:
Deposits other than certificates of deposits	9,334,509	8,743,655
Certificates of deposit	963,004	1,094,174
Total deposits	10,297,513	9,837,829
Borrowed funds	940,611	1,175,972
Subordinated debentures	25,173	25,135
Derivative liabilities	78,228	109,148
Carrying Value | US Treasury Obligations
Financial assets:
Available for sale debt securities, at fair value
Carrying Value | Agency Obligations
Financial assets:
Available for sale debt securities, at fair value		1,009
Investment securities held to maturity, fair value	8,998	7,600
Carrying Value | Mortgage-backed securities
Financial assets:
Available for sale debt securities, at fair value	1,060,152	938,413
Investment securities held to maturity, fair value	50	62
Carrying Value | Asset-backed securities
Financial assets:
Available for sale debt securities, at fair value	49,205	53,830
Carrying Value | State And Municipal Obligations
Financial assets:
Available for sale debt securities, at fair value	68,934	71,258
Investment securities held to maturity, fair value	428,571	433,589
Carrying Value | Corporate Obligations
Financial assets:
Available for sale debt securities, at fair value	38,645	40,979
Investment securities held to maturity, fair value	10,283	9,714
Fair Value
Financial assets:
Cash and cash equivalents	687,570	532,353
Available for sale debt securities, at fair value	1,216,936	1,105,489
Investment securities held to maturity, fair value	463,993	472,451
Federal Home Loan Bank stock	48,998	59,489
Equity securities	1,026	971
Total loans	9,857,891	9,969,330
Derivative assets	76,542	101,079
Financial liabilities:
Deposits other than certificates of deposits	9,334,509	8,743,655
Certificates of deposit	967,088	1,097,993
Total deposits	10,301,597	9,841,648
Borrowed funds	945,538	1,193,024
Subordinated debentures	30,325	24,375
Derivative liabilities	78,228	109,148
Fair Value | US Treasury Obligations
Financial assets:
Available for sale debt securities, at fair value		0
Fair Value | Agency Obligations
Financial assets:
Available for sale debt securities, at fair value		1,009
Investment securities held to maturity, fair value	8,904	7,601
Fair Value | Mortgage-backed securities
Financial assets:
Available for sale debt securities, at fair value	1,060,152	938,413
Investment securities held to maturity, fair value	51	64
Fair Value | Asset-backed securities
Financial assets:
Available for sale debt securities, at fair value	49,205	53,830
Fair Value | State And Municipal Obligations
Financial assets:
Available for sale debt securities, at fair value	68,934	71,258
Investment securities held to maturity, fair value	444,776	454,973
Fair Value | Corporate Obligations
Financial assets:
Available for sale debt securities, at fair value	38,645	40,979
Investment securities held to maturity, fair value	$ 10,262	$ 9,813

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Other Comprehensive Income (Components of OCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	$ (12,152)	$ 22,563
Reclassification adjustment for gains included in net income	(230)	0
Total	(12,382)	22,563
Unrealized gains (losses) on derivatives (cash flow hedges)	6,226	(7,697)
Amortization related to post-retirement obligations	(150)	112
Total other comprehensive (loss) income	(6,306)	14,978
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	3,133	(5,817)
Reclassification adjustment for gains included in net income	59	0
Total	3,192	(5,817)
Unrealized gains (losses) on derivatives (cash flow hedges)	(1,605)	1,984
Amortization related to post-retirement obligations	41	(28)
Total other comprehensive (loss) income	1,628	(3,861)
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	(9,019)	16,746
Reclassification adjustment for gains included in net income	(171)	0
Total	(9,190)	16,746
Unrealized gains (losses) on derivatives (cash flow hedges)	4,621	(5,713)
Amortization related to post-retirement obligations	(109)	84
Total other comprehensive (loss) income	$ (4,678)	$ 11,117

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Other Comprehensive Income (Components of AOCI) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,619,797	$ 1,413,840
Current - period other comprehensive (loss) income	(4,678)	11,117
Ending Balance	1,647,231	1,412,589
Unrealized Gains (Losses) on Available for Sale Debt Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	23,690	8,746
Current - period other comprehensive (loss) income	(9,190)	16,746
Ending Balance	14,500	25,492
Post- Retirement Obligations
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,081)	(5,240)
Current - period other comprehensive (loss) income	(109)	84
Ending Balance	(1,190)	(5,156)
Unrealized (Losses) Gains on Derivatives (cash flow hedges)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(4,954)	315
Current - period other comprehensive (loss) income	4,621	(5,713)
Ending Balance	(333)	(5,398)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	17,655	3,821
Current - period other comprehensive (loss) income	(4,678)	11,117
Ending Balance	$ 12,977	$ 14,938

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Other Comprehensive Income (Reclassifications Out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net gain on securities transactions	$ (197)	$ (11)
Income tax expense	16,226	5,257
Total reclassification	(48,559)	(14,931)
Compensation and employee benefits	35,312	31,195
Unrealized Gains (Losses) on Available for Sale Debt Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net gain on securities transactions	230	0
Income tax expense	(59)	0
Total reclassification	171	0
Reclassification adjustment | Post-retirement obligations
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax expense	41	(28)
Total reclassification	(109)	84
Compensation and employee benefits	$ (150)	$ 112

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Derivatives and Hedging Activities (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) counterparty instrument	Dec. 31, 2020 USD ($) instrument
Derivative [Line Items]
Derivative instruments in accumulated other comprehensive income reclassified to interest expense	$ 3,500
Derivative liability, notional amount	$ 600,000
Number of counterparties | counterparty	4
Counterparty in liability position | counterparty	4
Derivative liabilities	$ 38,500
Collateral against obligations	42,000
Derivatives Not Designated as a Hedging Instruments
Derivative [Line Items]
Credit derivatives, fair value	$ 96	$ 97
Derivatives Not Designated as a Hedging Instruments | Interest rate products
Derivative [Line Items]
Number of derivative instruments held (in instrument) | instrument	174	172
Derivative notional amount	$ 2,620,000	$ 2,630,000
Derivatives Not Designated as a Hedging Instruments | Credit contracts
Derivative [Line Items]
Number of derivative instruments held (in instrument) | instrument	13
Derivative notional amount	$ 131,400	$ 121,700
Amount of collateral	$ 650
Designated as Hedging Instrument
Derivative [Line Items]
Number of outstanding derivatives | instrument	14

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Derivatives and Hedging Activities (Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Derivatives Not Designated as a Hedging Instruments
Derivatives, Fair Value [Line Items]
Asset derivatives	$ 74,764	$ 107,749
Liability derivatives	75,740	109,148
Derivatives Not Designated as a Hedging Instruments | Other Assets | Interest rate products
Derivatives, Fair Value [Line Items]
Asset derivatives	74,668	107,652
Derivatives Not Designated as a Hedging Instruments | Other Assets | Credit contracts
Derivatives, Fair Value [Line Items]
Asset derivatives	96	97
Derivatives Not Designated as a Hedging Instruments | Other Liabilities | Interest rate products
Derivatives, Fair Value [Line Items]
Liability derivatives	75,740	109,148
Derivatives Not Designated as a Hedging Instruments | Other Liabilities | Credit contracts
Derivatives, Fair Value [Line Items]
Liability derivatives	0	0
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Asset derivatives	1,778	(6,671)
Liability derivatives	2,488	0
Designated as Hedging Instrument | Other Assets | Interest rate products
Derivatives, Fair Value [Line Items]
Asset derivatives	1,778	(6,671)
Designated as Hedging Instrument | Other Liabilities | Interest rate products
Derivatives, Fair Value [Line Items]
Liability derivatives	$ 2,488	$ 0

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Derivatives and Hedging Activities (Gains and Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivatives Not Designated as a Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives	$ 423	$ (820)
Derivatives Not Designated as a Hedging Instruments | Interest rate products | Other income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives	400	(819)
Derivatives Not Designated as a Hedging Instruments | Credit contracts | Other income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives	23	(1)
Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives	879	106
Designated as Hedging Instrument | Interest rate products | Other income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in Income on derivatives	$ 879	$ 106

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Revenue Recognition (Summary of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Percentage of total revenue excluded from adoption of 606	82.30%	84.00%
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 14,136	$ 10,438
Total out-of-scope non-interest income	7,501	6,553
Total non-interest income	21,637	16,991
Wealth management fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	7,134	6,251
Insurance agency income
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	2,727	0
Service charges on deposit accounts
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	2,497	2,977
Debit card and ATM fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,778	1,210
Total banking service charges and other fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 4,275	$ 4,187

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Leases (Additional Information) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets	$ 40,960	$ 41,142
Operating lease liabilities	$ 42,323	$ 42,042
Weighted-average remaining lease term	8 years 9 months 18 days
Weighted-average discount rate	3.14%

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Leases (Supplemental Balance Sheet Information) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets	$ 40,960	$ 41,142
Operating lease liabilities	$ 42,323	$ 42,042
Operating lease, right-of-use asset, statement of financial position [Extensible List]	Other assets	Other assets
Operating lease, liability, statement of financial position [Extensible List]	Other liabilities	Other liabilities

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Leases (Supplemental Cash Flow and Lease Cost Information) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flow, Operating Activities, Lessee [Abstract]
Operating lease cost	$ 2,812	$ 2,130
Variable lease cost	803	607
Total Lease Cost	3,615	2,737
Operating cash flows from operating leases	$ 2,345	$ 2,125

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Leases (Future Minimum Payments) (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Remainder of 2021	$ 6,472
2022	6,391
2023	5,878
2024	5,475
2025	4,887
Thereafter	20,027
Total future minimum lease payments	49,130
Amounts representing interest	6,807
Present value of net future minimum lease payments	$ 42,323	$ 42,042