QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (City) | (State) | (Zip Code) |
Title of each class | Trading Symbol Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated Filer | ☐ | ||||||||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||||||||
Emerging Growth Company |
Item Number | Page Number | |||||||
1 | ||||||||
Consolidated Statements of Financial Condition as of June 30, 2024 (unaudited) and December 31, 2023 | ||||||||
Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 (unaudited) | ||||||||
Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 (unaudited) | ||||||||
Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023 (unaudited) | ||||||||
Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (unaudited) | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
1 | ||||||||
1A. | ||||||||
2 | ||||||||
3 | Defaults Upon Senior Securities | |||||||
4 | ||||||||
5 | ||||||||
6 | Exhibits | |||||||
June 30, 2024 | December 31, 2023 | |||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||
Total cash and cash equivalents | ||||||||||||||
Available for sale debt securities, at fair value | ||||||||||||||
Held to maturity debt securities, net (fair value of $ | ||||||||||||||
Equity securities, at fair value | ||||||||||||||
Federal Home Loan Bank stock | ||||||||||||||
Loans held for sale | ||||||||||||||
Loans held for investment | ||||||||||||||
Less allowance for credit losses | ||||||||||||||
Net loans | ||||||||||||||
Foreclosed assets, net | ||||||||||||||
Banking premises and equipment, net | ||||||||||||||
Accrued interest receivable | ||||||||||||||
Intangible assets | ||||||||||||||
Bank-owned life insurance | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Deposits: | ||||||||||||||
Demand deposits | $ | $ | ||||||||||||
Savings deposits | ||||||||||||||
Certificates of deposit of $250,000 or more | ||||||||||||||
Other time deposits | ||||||||||||||
Total deposits | ||||||||||||||
Mortgage escrow deposits | ||||||||||||||
Borrowed funds | ||||||||||||||
Subordinated debentures | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Stockholders’ Equity: | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive (loss) income | ( | ( | ||||||||||||
Treasury stock | ( | ( | ||||||||||||
Unallocated common stock held by the Employee Stock Ownership Plan | ( | ( | ||||||||||||
Common stock acquired by deferred compensation plans | ( | ( | ||||||||||||
Deferred compensation plans | ||||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||||||||
Real estate secured loans | $ | $ | $ | $ | ||||||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||
Available for sale debt securities, equity securities and Federal Home Loan Bank stock | ||||||||||||||||||||||||||
Held to maturity debt securities | ||||||||||||||||||||||||||
Due from banks, Federal funds sold and other short-term investments | ||||||||||||||||||||||||||
Total interest income | ||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||
Borrowed funds | ||||||||||||||||||||||||||
Subordinated debt | ||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||
Provision charge for credit losses | ||||||||||||||||||||||||||
Net interest income after provision charge for credit losses | ||||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||
Fees | ||||||||||||||||||||||||||
Wealth management income | ||||||||||||||||||||||||||
Insurance agency income | ||||||||||||||||||||||||||
Bank-owned life insurance | ||||||||||||||||||||||||||
Net (loss) gain on securities transactions | ( | ( | ||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||
Total non-interest income | ||||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||
Compensation and employee benefits | ||||||||||||||||||||||||||
Net occupancy expense | ||||||||||||||||||||||||||
Data processing expense | ||||||||||||||||||||||||||
FDIC insurance | ||||||||||||||||||||||||||
Amortization of intangibles | ||||||||||||||||||||||||||
Advertising and promotion expense | ||||||||||||||||||||||||||
Merger-related expenses | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Total non-interest expense | ||||||||||||||||||||||||||
(Loss) Income before income tax expense | ( | |||||||||||||||||||||||||
Income tax (benefit) expense | ( | |||||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | |||||||||||||||||||||
Basic earnings per share | $ | ( | $ | $ | $ | |||||||||||||||||||||
Weighted average basic shares outstanding | ||||||||||||||||||||||||||
Diluted earnings per share | $ | ( | $ | $ | $ | |||||||||||||||||||||
Weighted average diluted shares outstanding | ||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | |||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||
Unrealized gains and losses on available for sale debt securities: | ||||||||||||||||||||||||||
Net unrealized gains (losses) arising during the period | ( | |||||||||||||||||||||||||
Reclassification adjustment for losses included in net income | ||||||||||||||||||||||||||
Total | ( | |||||||||||||||||||||||||
Unrealized gains and losses on derivatives: | ||||||||||||||||||||||||||
Net unrealized gains arising during the period | ||||||||||||||||||||||||||
Reclassification adjustment for (gains) included in net income | ( | ( | ( | ( | ||||||||||||||||||||||
Total | ( | ( | ( | |||||||||||||||||||||||
Amortization related to post-retirement obligations | ( | ( | ( | ( | ||||||||||||||||||||||
Total other comprehensive income (loss) | ( | |||||||||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ |
For the three months ended June 30, 2023 | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | TREASURYSTOCK | UNALLOCATED ESOP SHARES | COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS | DEFERRED COMPENSATION PLANS | TOTAL STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid | — | — | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions from deferred comp plans | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of employee restricted shares to fund statutory tax withholding | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of ESOP shares | — | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Stock Award Plan ("SAP") shares | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of stock options | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ |
For the six months ended June 30, 2023 | COMMONSTOCK | ADDITIONAL PAID-IN CAPITAL | RETAINEDEARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | TREASURYSTOCK | UNALLOCATED ESOP SHARES | COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS | DEFERRED COMPENSATION PLANS | TOTAL STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid | — | — | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Effect of adopting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions from deferred comp plans | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of employee restricted shares to fund statutory tax withholding | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of ESOP shares | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of SAP shares | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of stock options | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ |
For the three months ended June 30, 2024 | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS | TREASURY STOCK | UNALLOCATED ESOP SHARES | COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS | DEFERRED COMPENSATION PLANS | TOTAL STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid | — | — | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions from deferred comp plans | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of employee restricted shares to fund statutory tax withholding | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of ESOP shares | — | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of SAP shares | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued due to acquisition | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of stock options | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ |
For the six months ended June 30, 2024 | COMMONSTOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS | TREASURY STOCK | UNALLOCATED ESOP SHARES | COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS | DEFERRED COMPENSATION PLANS | TOTAL STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid | — | — | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions from deferred comp plans | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of employee restricted shares to fund statutory tax withholding | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of ESOP shares | — | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of SAP shares | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued due to acquisition | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of stock options | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ |
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | ||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||
Six months ended June 30, 2024 and 2023 (Unaudited) | ||||||||||||||
(Dollars in Thousands) | ||||||||||||||
Six months ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization of intangibles | ||||||||||||||
Provision charge for credit losses | ||||||||||||||
Deferred tax benefit | ( | ( | ||||||||||||
Amortization of operating lease right-of-use assets | ||||||||||||||
Income on Bank-owned life insurance | ( | ( | ||||||||||||
Net amortization of premiums and discounts on securities | ||||||||||||||
Accretion of net deferred loan fees | ( | ( | ||||||||||||
Amortization of premiums on purchased loans, net | ||||||||||||||
Originations of loans held for sale | ( | ( | ||||||||||||
Proceeds from sales of loans originated for sale | ||||||||||||||
ESOP expense | ||||||||||||||
Allocation of stock award expense | ||||||||||||||
Allocation of stock option expense | ||||||||||||||
Net gain on sale of loans | ( | ( | ||||||||||||
Net loss (gain) on securities transactions | ( | |||||||||||||
Net gain on sale of premises and equipment | ( | |||||||||||||
Net gain on sale of foreclosed assets | ( | ( | ||||||||||||
Increase in accrued interest receivable | ( | ( | ||||||||||||
(Increase) decrease in other assets | ( | |||||||||||||
Increase (decrease) in other liabilities | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Net decrease (increase) in loans | ( | |||||||||||||
Purchases of loans | ( | |||||||||||||
Proceeds from sales of foreclosed assets | ||||||||||||||
Proceeds from maturities, calls and paydowns of held to maturity debt securities | ||||||||||||||
Purchases of investment securities held to maturity | ( | ( | ||||||||||||
Proceeds from sales of available for sale debt securities | ||||||||||||||
Proceeds from maturities, calls and paydowns of available for sale debt securities | ||||||||||||||
Purchases of available for sale debt securities | ( | ( | ||||||||||||
Proceeds from redemption of Federal Home Loan Bank stock | ||||||||||||||
Purchases of Federal Home Loan Bank stock | ( | ( | ||||||||||||
Cash received, net of cash consideration paid for acquisition | ||||||||||||||
BOLI claim benefits received | ||||||||||||||
Proceeds from sales of premises and equipment | ||||||||||||||
Purchases of premises and equipment | ( | ( | ||||||||||||
Net cash provided by (used in) investing activities | ( | |||||||||||||
Cash flows from financing activities: | ||||||||||||||
Net decrease in deposits | ( | ( |
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | ||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||
Six months ended June 30, 2024 and 2023 (Unaudited) | ||||||||||||||
(Dollars in Thousands) | ||||||||||||||
Six months ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Increase in mortgage escrow deposits | ||||||||||||||
Cash dividends paid to stockholders | ( | ( | ||||||||||||
Purchase of treasury stock | ||||||||||||||
Purchase of employee restricted shares to fund statutory tax withholding | ( | ( | ||||||||||||
Stock options exercised | ||||||||||||||
Proceeds from subordinated debentures | — | |||||||||||||
Proceeds from long-term borrowings | — | |||||||||||||
Payments on long-term borrowings | ( | |||||||||||||
Net (decrease) increase in short-term borrowings | ( | |||||||||||||
Net cash (use in) provided by financing activities | ( | |||||||||||||
Net increase in cash and cash equivalents | ||||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Restricted cash at beginning of period | ||||||||||||||
Total cash, cash equivalents and restricted cash at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | ||||||||||||||
Restricted cash at end of period | ||||||||||||||
Total cash, cash equivalents and restricted cash at end of period | $ | $ | ||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest on deposits and borrowings | $ | $ | ||||||||||||
Income taxes | $ | $ | ||||||||||||
Non-cash investing activities: | ||||||||||||||
Initial recognition of operating lease right-of-use assets | $ | $ | ||||||||||||
Initial recognition of operating lease liabilities | $ | $ | ||||||||||||
Transfer of loans receivable to foreclosed assets | $ | $ | ||||||||||||
Acquisitions: | ||||||||||||||
Non-cash assets acquired at fair value: | ||||||||||||||
Investment securities | $ | $ | ||||||||||||
Loans held for sale | ||||||||||||||
Loans held for investment | ||||||||||||||
Bank-owned life insurance | ||||||||||||||
Goodwill and other intangible assets | ||||||||||||||
Bank premises and equipment | ||||||||||||||
Other assets | ||||||||||||||
Total non-cash assets acquired at fair value | $ | $ | ||||||||||||
Liabilities assumed | ||||||||||||||
Deposits | $ | $ | ||||||||||||
Borrowings | ||||||||||||||
Subordinated debentures | ||||||||||||||
Other Liabilities | ||||||||||||||
Total liabilities assumed | $ | $ | ||||||||||||
Common stock issued for acquisitions | $ | $ | ||||||||||||
Three months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
Net Income | Weighted Average Common Shares Outstanding | Per Share Amount | Net Income | Weighted Average Common Shares Outstanding | Per Share Amount | ||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||||||||||||||||
(Loss) Income available to common stockholders | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Dilutive shares | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||||||||||||||||
(Loss) Income available to common stockholders | $ | ( | $ | ( | $ | $ |
Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
Net Income | Weighted Average Common Shares Outstanding | Per Share Amount | Net Income | Weighted Average Common Shares Outstanding | Per Share Amount | ||||||||||||||||||||||||||||||||||||
Net income | $ | $ | |||||||||||||||||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||||||||||||||||
Income available to common stockholders | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Dilutive shares | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||||||||||||||||
Income available to common stockholders | $ | $ | $ | $ |
As of May 16, 2024 | ||||||||
Assets acquired: | ||||||||
Cash and cash equivalents, net | $ | |||||||
Available for sale debt securities | ||||||||
Federal Home Loan Bank stock | ||||||||
Loans held for sale | ||||||||
Loans held for investment | ||||||||
Allowance for credit losses on PCD loans | ( | |||||||
Loans, net | ||||||||
Bank-owned life insurance | ||||||||
Banking premises and equipment | ||||||||
Accrued interest receivable | ||||||||
Goodwill | ||||||||
Other intangibles assets | ||||||||
Other assets | ||||||||
Total assets acquired | $ | |||||||
Liabilities assumed: | ||||||||
Deposits | ||||||||
Mortgage escrow deposits | ||||||||
Borrowed funds | ||||||||
Subordinated debentures | ||||||||
Other liabilities | ||||||||
Total liabilities assumed | $ | |||||||
Net assets acquired | $ |
Gross amortized cost basis as of May 16, 2024 | $ | |||||||
Interest rate fair value adjustment on all loans | ( | |||||||
Credit fair value adjustment on non-PCD loans | ( | |||||||
Charge-offs on PCD Loans at acquisition | ( | |||||||
Allowance for credit losses on PCD loans | ( | |||||||
Fair value of acquired loans, net, as of May 16, 2024 | $ |
Gross amortized cost basis as of May 16, 2024 | $ | |||||||
Charge-offs on PCD Loans at acquisition | ( | |||||||
Interest component of expected cash flows (accretable difference) | ( | |||||||
Allowance for credit losses on PCD loans | ( | |||||||
Net PCD loans | $ |
June 30, 2024 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
U.S. Treasury obligations | $ | ( | ||||||||||||||||||||||||
Government-agency obligations | ( | |||||||||||||||||||||||||
Mortgage-backed securities | ( | |||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||
State and municipal obligations | ( | |||||||||||||||||||||||||
Corporate obligations | ( | |||||||||||||||||||||||||
$ | ( |
December 31, 2023 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
U.S. Treasury obligations | $ | ( | ||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||
Mortgage-backed securities | ( | |||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||
State and municipal obligations | ( | |||||||||||||||||||||||||
Corporate obligations | ( | |||||||||||||||||||||||||
$ | ( |
June 30, 2024 | ||||||||||||||
Amortized cost | Fair value | |||||||||||||
Due in one year or less | $ | |||||||||||||
Due after one year through five years | ||||||||||||||
Due after five years through ten years | ||||||||||||||
Due after ten years | ||||||||||||||
$ |
June 30, 2024 | |||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||||||||||||
Treasury obligations | $ | ||||||||||||||||||||||||||||
Government-agency obligations | ( | ||||||||||||||||||||||||||||
State and municipal obligations | ( | ||||||||||||||||||||||||||||
Corporate obligations | ( | ||||||||||||||||||||||||||||
$ | ( |
December 31, 2023 | |||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||||||||||||
Treasury obligations | $ | ||||||||||||||||||||||||||||
Government-agency obligations | ( | ||||||||||||||||||||||||||||
State and municipal obligations | ( | ||||||||||||||||||||||||||||
Corporate obligations | ( | ||||||||||||||||||||||||||||
$ | ( |
June 30, 2024 | ||||||||||||||
Amortized cost | Fair value | |||||||||||||
Due in one year or less | $ | |||||||||||||
Due after one year through five years | ||||||||||||||
Due after five years through ten years | ||||||||||||||
Due after ten years | ||||||||||||||
$ |
June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Total Portfolio | AAA | AA | A | BBB | Not Rated | Total | ||||||||||||||||||||||||||||||||
Treasury obligations | $ | |||||||||||||||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||||||||||||||
State and municipal obligations | ||||||||||||||||||||||||||||||||||||||
Corporate obligations | ||||||||||||||||||||||||||||||||||||||
$ | ||||||||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Total Portfolio | AAA | AA | A | BBB | Not Rated | Total | ||||||||||||||||||||||||||||||||
Treasury obligations | $ | |||||||||||||||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||||||||||||||
State and municipal obligations | ||||||||||||||||||||||||||||||||||||||
Corporate obligations | ||||||||||||||||||||||||||||||||||||||
$ | ||||||||||||||||||||||||||||||||||||||
June 30, 2024 | December 31, 2023 | |||||||||||||
Mortgage loans: | ||||||||||||||
Commercial | $ | |||||||||||||
Multi-family | ||||||||||||||
Construction | ||||||||||||||
Residential | ||||||||||||||
Total mortgage loans | ||||||||||||||
Commercial loans | ||||||||||||||
Consumer loans | ||||||||||||||
Total gross loans | ||||||||||||||
Premiums on purchased loans | ||||||||||||||
Net deferred fees | ( | ( | ||||||||||||
Total loans | $ |
June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | ||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross loans | $ |
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | ||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross loans | $ |
Three months ended June 30, | Mortgage loans | Commercial loans | Consumer loans | Total | ||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | |||||||||||||||||||||||||
Initial allowance on credit loans related to PCD loans | ||||||||||||||||||||||||||
Provision charge to operations | ||||||||||||||||||||||||||
Recoveries of loans previously charged-off | ||||||||||||||||||||||||||
Loans charged-off | ( | ( | ( | |||||||||||||||||||||||
Balance at end of period | $ | |||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | |||||||||||||||||||||||||
Provision charge (benefit) to operations | ( | |||||||||||||||||||||||||
Recoveries of loans previously charged-off | ||||||||||||||||||||||||||
Loans charged-off | ( | ( | ( | |||||||||||||||||||||||
Balance at end of period | $ |
Six months ended June 30, | Mortgage loans | Commercial loans | Consumer loans | Total | ||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | |||||||||||||||||||||||||
Initial allowance on credit loans related to PCD loans | ||||||||||||||||||||||||||
Provision charge to operations | ||||||||||||||||||||||||||
Recoveries of loans previously charged-off | ||||||||||||||||||||||||||
Loans charged-off | ( | ( | ( | |||||||||||||||||||||||
Balance at end of period | $ | |||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | |||||||||||||||||||||||||
Cumulative effect of adopting Accounting Standards Update ("ASU") No. 2022-02 | ( | ( | ( | ( | ||||||||||||||||||||||
Provision charge (benefit) charge to operations | ( | |||||||||||||||||||||||||
Recoveries of loans previously charged-off | ||||||||||||||||||||||||||
Loans charged-off | ( | ( | ( | ( | ||||||||||||||||||||||
Balance at end of period | $ |
2024 | 2023 | 2022 | 2021 | 2020 | Prior to 2020 | Total Loans | |||||||||||||||||
Commercial loans | $ | ||||||||||||||||||||||
Consumer loans (1) | |||||||||||||||||||||||
Total gross loans | $ |
2024 | 2023 | 2022 | 2021 | 2020 | Prior to 2020 | Total Loans | |||||||||||||||||
Commercial loans | $ | ||||||||||||||||||||||
Consumer loans (1) | |||||||||||||||||||||||
Total gross loans | $ |
2023 | 2022 | 2021 | 2020 | 2019 | Prior to 2019 | Total Loans | |||||||||||||||||
Commercial loans | $ | ||||||||||||||||||||||
Consumer loans (1) | |||||||||||||||||||||||
Total gross loans | $ |
2023 | 2022 | 2021 | 2020 | 2019 | Prior to 2019 | Total Loans | |||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||
Commercial | $ | ||||||||||||||||||||||
Residential | |||||||||||||||||||||||
Total mortgage loans | |||||||||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Consumer loans (1) | |||||||||||||||||||||||
Total gross loans | $ |
Loan Classes | Modification types | |||||||
Commercial | Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term. | |||||||
Residential Mortgage/ Home Equity | Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term as well as term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement. | |||||||
Direct Installment | Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement. | |||||||
For the three months ended June 30, 2024 | ||||||||||||||
Term Extension | Interest Rate Reduction | Interest Rate Reduction and Term Extension | % of Total Class of Loans and Leases | |||||||||||
Commercial loans | % | |||||||||||||
Total gross loans | $ | % |
For the six months ended June 30, 2024 | ||||||||||||||
Term Extension | Interest Rate Reduction | Interest Rate Reduction and Term Extension | % of Total Class of Loans and Leases | |||||||||||
Commercial loans | % | |||||||||||||
Total gross loans | $ | % |
Term Extension | Interest Rate Reduction | Interest Rate Reduction and Term Extension | % of Total Class of Loans and Leases | |||||||||||
Commercial loans | $ | % | ||||||||||||
Total gross loans | $ | % |
Weighted-Average Months of Term Extension | Weighted-Average Rate Increase | |||||||
Commercial loans | % | |||||||
Total gross loans | % |
Weighted-Average Months of Term Extension | Weighted-Average Rate Increase | |||||||
Commercial loans | % | |||||||
Total gross loans | % |
Weighted-Average Months of Term Extension | Weighted-Average Rate Change | |||||||
Commercial loans | % | |||||||
Total gross loans | % |
Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 days or more Past Due | Non- Accrual | Total | |||||||||||||||
Commercial loans | ||||||||||||||||||||
Total gross loans | $ |
Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 days or more Past Due | Non- Accrual | Total | |||||||||||||||
Commercial loans | ||||||||||||||||||||
Total gross loans | $ |
Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 days or more Past Due | Non- Accrual | Total | |||||||||||||||
Commercial loans | $ | |||||||||||||||||||
Total gross loans | $ |
Gross amortized cost basis as of May 16, 2024 | $ | |||||||
Charge-offs on PCD Loans at acquisition | ( | |||||||
Interest component of expected cash flows (accretable difference) | ( | |||||||
Allowance for credit losses on PCD loans | ( | |||||||
Net PCD loans | $ |
Gross Loans Held for Investment by Year of Origination as of June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior to 2020 | Revolving Loans | Revolving loans to term loans | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Commercial Mortgage | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Multi-Family | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch |
Gross Loans Held for Investment by Year of Origination as of June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior to 2020 | Revolving Loans | Revolving loans to term loans | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Construction | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Residential | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Mortgage | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Commercial | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Consumer | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified |
Gross Loans Held for Investment by Year of Origination as of June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior to 2020 | Revolving Loans | Revolving loans to term loans | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Gross Loans | $ |
Gross Loans Held for Investment by Year of Origination as of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior to 2019 | Revolving Loans | Revolving loans to term loans | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Commercial Mortgage | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Multi-Family | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Construction | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful |
Gross Loans Held for Investment by Year of Origination as of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior to 2019 | Revolving Loans | Revolving loans to term loans | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Residential | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Mortgage | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Commercial | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Consumer | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total criticized and classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch |
Gross Loans Held for Investment by Year of Origination as of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior to 2019 | Revolving Loans | Revolving loans to term loans | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Gross Loans | $ |
June 30, 2024 | December 31, 2023 | |||||||||||||
Savings | $ | |||||||||||||
Money market | ||||||||||||||
NOW (1) | ||||||||||||||
Non-interest bearing | ||||||||||||||
Certificates of deposit (2) | ||||||||||||||
Total deposits | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
Securities sold under repurchase agreements | $ | ||||||||||
FHLBNY line of credit | |||||||||||
FHLBNY advances (1) | |||||||||||
FRBNY BTFP Borrowing | |||||||||||
Total borrowed funds | $ |
2024 | |||||
Due in one year or less | $ | ||||
Due after one year through two years | |||||
Due after two years through three years | |||||
Due after three years through four years | |||||
Thereafter | |||||
Total FHLBNY advances and overnight borrowings | $ |
2024 | |||||
Due in one year or less | $ | ||||
Thereafter | |||||
Total securities sold under repurchase agreements | $ |
Maximum balance | Average balance | Weighted average interest rate | |||||||||||||||
June 30, 2024 | |||||||||||||||||
Securities sold under repurchase agreements | $ | % | |||||||||||||||
FHLBNY overnight borrowings | |||||||||||||||||
FHLBNY advances | |||||||||||||||||
FRBNY BTFP Borrowing | |||||||||||||||||
December 31, 2023 | |||||||||||||||||
Securities sold under repurchase agreements | $ | % | |||||||||||||||
FHLBNY overnight borrowings | |||||||||||||||||
FHLBNY advances | |||||||||||||||||
FRBNY BTFP Borrowing |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension benefits | Other post-retirement benefits | Pension benefits | Other post-retirement benefits | |||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of the net loss (gain) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Net periodic (decrease) increase in benefit cost | $ | ( | ( | ( | ( | $ | ( | ( | ( | ( |
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). |
Fair Value Measurements at Reporting Date Using: | ||||||||||||||||||||||||||
June 30, 2024 | 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: | ||||||||||||||||||||||||||
U.S. Treasury obligations | $ | |||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
State and municipal obligations | ||||||||||||||||||||||||||
Corporate obligations | ||||||||||||||||||||||||||
Total available for sale debt securities | ||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||
$ | ||||||||||||||||||||||||||
Derivative liabilities | $ | |||||||||||||||||||||||||
Measured on a non-recurring basis: | ||||||||||||||||||||||||||
Loans measured for impairment based on the fair value of the underlying collateral | $ | |||||||||||||||||||||||||
Foreclosed assets | ||||||||||||||||||||||||||
$ |
Fair Value Measurements at Reporting Date Using: | ||||||||||||||||||||||||||
December 31, 2023 | 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: | ||||||||||||||||||||||||||
U.S. Treasury obligations | $ | |||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
State and municipal obligations | ||||||||||||||||||||||||||
Corporate obligations | ||||||||||||||||||||||||||
Total available for sale debt securities | ||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||
$ | ||||||||||||||||||||||||||
Derivative liabilities | $ | |||||||||||||||||||||||||
Measured on a non-recurring basis: | ||||||||||||||||||||||||||
Loans measured for impairment based on the fair value of the underlying collateral | $ | |||||||||||||||||||||||||
Foreclosed assets | ||||||||||||||||||||||||||
$ |
Fair Value Measurements as of June 30, 2024 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 | $ | |||||||||||||||||||||||||||||||
Available for sale debt securities: | ||||||||||||||||||||||||||||||||
U.S. Treasury obligations | $ | |||||||||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||||||||
State and municipal obligations | ||||||||||||||||||||||||||||||||
Corporate obligations | ||||||||||||||||||||||||||||||||
Total available for sale debt securities | $ | |||||||||||||||||||||||||||||||
Held to maturity debt securities, net of allowance for credit losses: | ||||||||||||||||||||||||||||||||
U.S. Treasury obligations | $ | |||||||||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||||||||
State and municipal obligations | ||||||||||||||||||||||||||||||||
Corporate obligations | ||||||||||||||||||||||||||||||||
Total held to maturity debt securities, net of allowance for credit losses | $ | |||||||||||||||||||||||||||||||
FHLBNY stock | ||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||
Loans, net of allowance for credit losses | ||||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits other than certificates of deposits | $ | |||||||||||||||||||||||||||||||
Certificates of deposit | ||||||||||||||||||||||||||||||||
Total deposits | $ | |||||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||
Subordinated debentures | ||||||||||||||||||||||||||||||||
Derivative liabilities |
Fair Value Measurements as of December 31, 2023 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 | $ | |||||||||||||||||||||||||||||||
Available for sale debt securities: | ||||||||||||||||||||||||||||||||
U.S. Treasury obligations | $ | |||||||||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||||||||
State and municipal obligations | ||||||||||||||||||||||||||||||||
Corporate obligations | ||||||||||||||||||||||||||||||||
Total available for sale debt securities | $ | |||||||||||||||||||||||||||||||
Held to maturity debt securities: | ||||||||||||||||||||||||||||||||
US Treasury obligations | $ | |||||||||||||||||||||||||||||||
Government-agency obligations | ||||||||||||||||||||||||||||||||
State and municipal obligations | ||||||||||||||||||||||||||||||||
Corporate obligations | ||||||||||||||||||||||||||||||||
Total held to maturity debt securities | $ | |||||||||||||||||||||||||||||||
FHLBNY stock | ||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||
Loans, net of allowance for credit losses | ||||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits other than certificates of deposits | $ | |||||||||||||||||||||||||||||||
Certificates of deposit | ||||||||||||||||||||||||||||||||
Total deposits | $ | |||||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||
Subordinated debentures | ||||||||||||||||||||||||||||||||
Derivative liabilities |
Three months ended June 30, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
Before Tax | Tax Effect | After Tax | Before Tax | Tax Effect | After Tax | |||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income: | ||||||||||||||||||||||||||||||||||||||
Unrealized gains and losses on available for sale debt securities: | ||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) arising during the period | $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Reclassification adjustment for losses included in net income | ( | |||||||||||||||||||||||||||||||||||||
Total | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Unrealized gains and losses on derivatives (cash flow hedges): | ||||||||||||||||||||||||||||||||||||||
Net unrealized gains arising during the period | ( | ( | ||||||||||||||||||||||||||||||||||||
Reclassification adjustment for (gains) included in net income | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Total | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Amortization related to post-retirement obligations | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | ( | ( |
Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
Before Tax | Tax Effect | After Tax | Before Tax | Tax Effect | After Tax | |||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income: | ||||||||||||||||||||||||||||||||||||||
Unrealized gains and losses on available for sale debt securities: | ||||||||||||||||||||||||||||||||||||||
Net unrealized gains arising during the period | $ | ( | ( | |||||||||||||||||||||||||||||||||||
Reclassification adjustment for losses included in net income | ( | |||||||||||||||||||||||||||||||||||||
Total | ( | ( | ||||||||||||||||||||||||||||||||||||
Unrealized gains and losses on derivatives (cash flow hedges): | ||||||||||||||||||||||||||||||||||||||
Net unrealized gains arising during the period | ( | ( | ||||||||||||||||||||||||||||||||||||
Reclassification adjustment for (gains) included in net income | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Total | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Amortization related to post-retirement obligations | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | ( |
Changes in Accumulated Other Comprehensive (Loss) by Component, net of tax for the three months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Losses on Available for Sale Debt Securities | Post- Retirement Obligations | Unrealized Gains on Derivatives (cash flow hedges) | Accumulated Other Comprehensive (Loss) | Unrealized Losses on Available for Sale Debt Securities | Post- Retirement Obligations | Unrealized Gains on Derivatives (cash flow hedges) | Accumulated Other Comprehensive (Loss) | |||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, | $ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Current - period other comprehensive income (loss) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, | $ | ( | ( | ( | ( |
Changes in Accumulated Other Comprehensive (Loss) by Component, net of tax for the six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Losses on Available for Sale Debt Securities | Post- Retirement Obligations | Unrealized Gains on Derivatives (cash flow hedges) | Accumulated Other Comprehensive Income (Loss) | Unrealized Losses on Available for Sale Debt Securities | Post- Retirement Obligations | Unrealized Gains on Derivatives (cash flow hedges) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, | $ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Current - period other comprehensive income (loss) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, | $ | ( | ( | ( | ( |
Reclassifications From Accumulated Other Comprehensive Income ("AOCI") | ||||||||||||||||||||||||||
Amount reclassified from AOCI for the three months ended June 30, | Affected line item in the Consolidated Statement of Income | |||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Details of AOCI: | ||||||||||||||||||||||||||
Available for sale debt securities: | ||||||||||||||||||||||||||
Realized net losses on the sale of securities available for sale | $ | Net loss on securities transactions | ||||||||||||||||||||||||
( | Income tax expense | |||||||||||||||||||||||||
$ | Net of tax | |||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Realized net gains on derivatives | $ | ( | ( | Interest expense | ||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
$ | ( | ( | ||||||||||||||||||||||||
Post-retirement obligations: | ||||||||||||||||||||||||||
Amortization of actuarial gains | $ | ( | ( | Compensation and employee benefits (1) | ||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
$ | ( | ( | Net of tax | |||||||||||||||||||||||
Total reclassifications | $ | ( | ( | Net of tax |
Reclassifications From Accumulated Other Comprehensive Income | ||||||||||||||||||||||||||
Amount reclassified from AOCI for the six months ended June 30, | Affected line item in the Consolidated Statement of Income | |||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Details of AOCI: | ||||||||||||||||||||||||||
Available for sale debt securities: | ||||||||||||||||||||||||||
Realized net losses on the sale of securities available for sale | $ | Net loss on securities transactions | ||||||||||||||||||||||||
( | Income tax expense | |||||||||||||||||||||||||
$ | Net of tax | |||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Realized net gains on derivatives | $ | ( | ( | Interest expense | ||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
$ | ( | ( | ||||||||||||||||||||||||
Post-retirement obligations: | ||||||||||||||||||||||||||
Amortization of actuarial gains | $ | ( | ( | Compensation and employee benefits (1) | ||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
$ | ( | ( | Net of tax | |||||||||||||||||||||||
Total reclassifications | $ | ( | ( | Net of tax |
Fair Values of Derivative Instruments as of June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Notional Amount | Consolidated Statements of Financial Condition | Fair value (1) | Notional Amount | Consolidated Statements of Financial Condition | Fair value (2) | |||||||||||||||||||||||||||||||||
Derivatives not designated as a hedging instrument: | ||||||||||||||||||||||||||||||||||||||
Interest rate products | $ | Other assets | $ | $ | Other liabilities | $ | ||||||||||||||||||||||||||||||||
Credit contracts | Other assets | Other liabilities | ||||||||||||||||||||||||||||||||||||
Total derivatives not designated as a hedging instrument | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as a hedging instrument: | ||||||||||||||||||||||||||||||||||||||
Interest rate products | Other assets | Other liabilities | ||||||||||||||||||||||||||||||||||||
Total gross derivative amounts recognized on the balance sheet | ||||||||||||||||||||||||||||||||||||||
Gross amounts offset on the balance sheet | ||||||||||||||||||||||||||||||||||||||
Net derivative amounts presented on the balance sheet | $ | |||||||||||||||||||||||||||||||||||||
Gross amounts not offset on the balance sheet: | ||||||||||||||||||||||||||||||||||||||
Financial instruments - institutional counterparties | $ | |||||||||||||||||||||||||||||||||||||
Cash collateral - institutional counterparties | ||||||||||||||||||||||||||||||||||||||
Net derivatives not offset | $ |
Fair Values of Derivative Instruments as of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Notional Amount | Consolidated Statements of Financial Condition | Fair value (1) | Notional Amount | Consolidated Statements of Financial Condition | Fair value (2) | |||||||||||||||||||||||||||||||||
Derivatives not designated as a hedging instrument: | ||||||||||||||||||||||||||||||||||||||
Interest rate products | $ | Other assets | $ | $ | Other liabilities | $ | ||||||||||||||||||||||||||||||||
Credit contracts | Other assets | Other liabilities | ||||||||||||||||||||||||||||||||||||
Total derivatives not designated as a hedging instrument | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as a hedging instrument: | ||||||||||||||||||||||||||||||||||||||
Interest rate products | Other assets | Other liabilities | ||||||||||||||||||||||||||||||||||||
Total gross derivative amounts recognized on the balance sheet | ||||||||||||||||||||||||||||||||||||||
Gross amounts offset on the balance sheet | ||||||||||||||||||||||||||||||||||||||
Net derivative amounts presented on the balance sheet | $ | |||||||||||||||||||||||||||||||||||||
Gross amounts not offset on the balance sheet: | ||||||||||||||||||||||||||||||||||||||
Financial instruments - institutional counterparties | $ | |||||||||||||||||||||||||||||||||||||
Cash collateral - institutional counterparties | ||||||||||||||||||||||||||||||||||||||
Net derivatives not offset | $ |
Gain (loss) recognized in income on derivatives for the three months ended | ||||||||||||||||||||
Consolidated Statements of Income | June 30, 2024 | June 30, 2023 | ||||||||||||||||||
Derivatives not designated as a hedging instrument: | ||||||||||||||||||||
Interest rate products | $ | |||||||||||||||||||
Credit contracts | Other income | ( | ( | |||||||||||||||||
Total | $ | |||||||||||||||||||
Derivatives designated as a hedging instrument: | ||||||||||||||||||||
Interest rate products | Interest (benefit) expense | $ | ( | ( | ||||||||||||||||
Total | $ | ( | ( |
Gain (loss) recognized in income on derivatives for the six months ended | ||||||||||||||||||||
Consolidated Statements of Income | June 30, 2024 | June 30, 2023 | ||||||||||||||||||
Derivatives not designated as a hedging instrument: | ||||||||||||||||||||
Interest rate products | $ | |||||||||||||||||||
Credit contracts | Other income | ( | ( | |||||||||||||||||
Total | $ | |||||||||||||||||||
Derivatives designated as a hedging instrument: | ||||||||||||||||||||
Interest rate products | Interest (benefit) expense | $ | ( | ( | ||||||||||||||||
Total | $ | ( | ( |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Non-interest income | |||||||||||||||||||||||
In-scope of Topic 606: | |||||||||||||||||||||||
Wealth management fees | $ | ||||||||||||||||||||||
Insurance agency income | |||||||||||||||||||||||
Banking service charges and other fees: | |||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Debit card and ATM fees | |||||||||||||||||||||||
Total banking service charges and other fees | |||||||||||||||||||||||
Total in-scope non-interest income | |||||||||||||||||||||||
Total out-of-scope non-interest income | |||||||||||||||||||||||
Total non-interest income | $ | ||||||||||||||||||||||
Classification | June 30, 2024 | December 31, 2023 | ||||||||||||||||||
Lease Right-of-Use Assets: | ||||||||||||||||||||
Operating lease right-of-use assets | $ | |||||||||||||||||||
Lease Liabilities: | ||||||||||||||||||||
Operating lease liabilities | $ |
Three months ended June 30, 2024 | Three months ended June 30, 2023 | |||||||||||||
Lease Costs | ||||||||||||||
Operating lease cost | $ | |||||||||||||
Variable lease cost | ||||||||||||||
Total lease cost | $ |
Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||||||
Lease Costs | ||||||||||||||
Operating lease cost | $ | |||||||||||||
Variable lease cost | ||||||||||||||
Total lease cost | $ |
Cash paid for amounts included in the measurement of lease liabilities: | Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||
Operating cash flows from operating leases | $ | |||||||||||||
Operating leases | ||||||||
Twelve months ended: | ||||||||
Remainder of 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total future minimum lease payments | ||||||||
Amounts representing interest | ||||||||
Present value of net future minimum lease payments | $ |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
June 30, 2024 | December 31, 2023 | |||||||||||||
Mortgage loans: | ||||||||||||||
Commercial | $ | 7,337,742 | 4,512,411 | |||||||||||
Multi-family | 3,189,808 | 1,812,500 | ||||||||||||
Construction | 970,244 | 653,246 | ||||||||||||
Residential | 2,024,027 | 1,164,956 | ||||||||||||
Total mortgage loans | 13,521,821 | 8,143,113 | ||||||||||||
Commercial loans (1) | 4,617,232 | 2,440,621 | ||||||||||||
Consumer loans | 626,016 | 299,164 | ||||||||||||
Total gross loans | 18,765,069 | 10,882,898 | ||||||||||||
Premiums on purchased loans | 1,410 | 1,474 | ||||||||||||
Net deferred fees and unearned discounts | (7,149) | (12,456) | ||||||||||||
Total loans | $ | 18,759,330 | 10,871,916 |
Amount | Percentage of Total | ||||||||||
Multi-family (1) | $ | 3,767,678 | 32.2 | % | |||||||
Retail | 2,602,125 | 22.3 | % | ||||||||
Industrial | 2,215,910 | 19.0 | % | ||||||||
Office | 1,132,471 | 9.7 | % | ||||||||
Mixed | 898,678 | 7.7 | % | ||||||||
Special use property | 436,296 | 3.7 | % | ||||||||
Residential | 402,911 | 3.5 | % | ||||||||
Hotel | 191,865 | 1.6 | % | ||||||||
Land | 39,703 | 0.3 | % | ||||||||
Total CRE, multi-family and construction loans | $ | 11,687,637 | 100.0 | % |
Amount | Percentage of Total | ||||||||||
New Jersey | $ | 7,210,805 | 61.7 | % | |||||||
Pennsylvania | 1,636,857 | 14.0 | % | ||||||||
New York | 1,775,051 | 15.2 | % | ||||||||
Other states | 1,064,924 | 9.1 | % | ||||||||
Total CRE, multi-family and construction loans | $ | 11,687,637 | 100.0 | % |
June 30, 2024 | December 31, 2023 | |||||||||||||
Mortgage loans: | ||||||||||||||
Residential | $ | 4,447 | 853 | |||||||||||
Commercial | 3,588 | 5,151 | ||||||||||||
Multi-family | 7,276 | 744 | ||||||||||||
Construction | 11,698 | 771 | ||||||||||||
Total mortgage loans | 27,009 | 7,519 | ||||||||||||
Commercial loans | 39,715 | 41,487 | ||||||||||||
Consumer loans | 1,144 | 633 | ||||||||||||
Total non-performing loans | 67,868 | 49,639 | ||||||||||||
Foreclosed assets | 11,119 | 11,651 | ||||||||||||
Total non-performing assets | $ | 78,987 | 61,290 |
June 30, 2024 | December 31, 2023 | |||||||||||||
Mortgage loans: | ||||||||||||||
Residential | $ | 2,193 | 1,208 | |||||||||||
Commercial | 1,231 | — | ||||||||||||
Multi-family | — | 1,635 | ||||||||||||
Construction | — | — | ||||||||||||
Total mortgage loans | 3,424 | 2,843 | ||||||||||||
Commercial loans | 1,146 | 198 | ||||||||||||
Consumer loans | 648 | 275 | ||||||||||||
Total 60-89 day delinquent loans | $ | 5,218 | 3,316 |
June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Required | Required with Capital Conservation Buffer | Actual | ||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Bank:(1) (2) | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital | $ | 957,132 | 4.00 | % | 957,132 | 4.00 | % | 2,239,149 | 9.36 | % | ||||||||||||||||||||||||||||
Common equity Tier 1 risk-based capital | 931,776 | 4.50 | 1,449,430 | 7.00 | 2,239,149 | 10.81 | ||||||||||||||||||||||||||||||||
Tier 1 risk-based capital | 1,242,368 | 6.00 | 1,760,022 | 8.50 | 2,239,149 | 10.81 | ||||||||||||||||||||||||||||||||
Total risk-based capital | 1,656,491 | 8.00 | 2,174,145 | 10.50 | 2,426,242 | 11.72 | ||||||||||||||||||||||||||||||||
Company: | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital | $ | 958,169 | 4.00 | % | 958,169 | 4.00 | % | 1,913,818 | 7.99 | % | ||||||||||||||||||||||||||||
Common equity Tier 1 risk-based capital | 932,598 | 4.50 | 1,450,707 | 7.00 | 1,913,818 | 9.23 | ||||||||||||||||||||||||||||||||
Tier 1 risk-based capital | 1,243,464 | 6.00 | 1,761,573 | 8.50 | 1,913,818 | 9.23 | ||||||||||||||||||||||||||||||||
Total risk-based capital | 1,657,951 | 8.00 | 2,176,061 | 10.50 | 2,538,592 | 12.25 |
For the three months ended | |||||||||||||||||||||||||||||||||||
June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||||||||||||||||
(Dollars in Thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||||||||||||||||
Deposits | $ | 40,228 | $ | 1,859 | 5.38 | % | 73,470 | 947 | 5.17 | % | |||||||||||||||||||||||||
Federal funds sold and other short-term investments | — | — | — | % | 88 | 1 | 6.75 | % | |||||||||||||||||||||||||||
Available for sale debt securities | 2,244,725 | 17,646 | 3.14 | % | 1,801,050 | 10,290 | 2.29 | % | |||||||||||||||||||||||||||
Held to maturity debt securities, net (1) | 352,216 | 2,357 | 2.68 | % | 379,958 | 2,357 | 2.48 | % | |||||||||||||||||||||||||||
Equity securities, at fair value | 10,373 | — | — | % | 1,006 | — | — | % | |||||||||||||||||||||||||||
Federal Home Loan Bank stock | 88,864 | 2,747 | 12.36 | % | 82,171 | 1,142 | 5.56 | % | |||||||||||||||||||||||||||
Net loans: (2) | |||||||||||||||||||||||||||||||||||
Total mortgage loans | 10,674,109 | 156,318 | 5.81 | % | 7,701,072 | 99,302 | 5.11 | % | |||||||||||||||||||||||||||
Total commercial loans | 3,514,602 | 58,532 | 6.62 | % | 2,234,043 | 31,426 | 5.59 | % | |||||||||||||||||||||||||||
Total consumer loans | 460,702 | 8,351 | 7.29 | % | 303,109 | 4,431 | 5.86 | % | |||||||||||||||||||||||||||
Total net loans | 14,649,413 | 223,201 | 6.05 | % | 10,238,224 | 135,159 | 5.24 | % | |||||||||||||||||||||||||||
Total interest earning assets | $ | 17,385,819 | $ | 247,810 | 5.67 | % | 12,575,967 | 149,896 | 4.73 | % | |||||||||||||||||||||||||
Non-Interest Earning Assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 37,621 | 129,979 | |||||||||||||||||||||||||||||||||
Other assets | 1,773,601 | 1,127,109 | |||||||||||||||||||||||||||||||||
Total assets | $ | 19,197,041 | 13,833,055 | ||||||||||||||||||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 7,935,543 | $ | 58,179 | 2.95 | % | 5,620,268 | 28,613 | 2.04 | % | |||||||||||||||||||||||||
Savings deposits | 1,454,784 | 832 | 0.23 | % | 1,307,830 | 537 | 0.16 | % | |||||||||||||||||||||||||||
Time deposits | 2,086,433 | 22,047 | 4.25 | % | 968,344 | 7,297 | 3.02 | % | |||||||||||||||||||||||||||
Total deposits | 11,476,760 | 81,058 | 2.84 | % | 7,896,442 | 36,447 | 1.85 | % | |||||||||||||||||||||||||||
Borrowed funds | 2,158,193 | 20,565 | 3.83 | % | 1,658,809 | 14,088 | 3.41 | % | |||||||||||||||||||||||||||
Subordinated debentures | 221,086 | 4,681 | 8.52 | % | 10,563 | 255 | 9.66 | % | |||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 13,856,039 | 106,304 | 3.09 | % | 9,565,814 | 50,790 | 2.13 | % | ||||||||||||||||||||||||||
Non-Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 2,866,917 | 2,368,960 | ||||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 346,616 | 244,604 | |||||||||||||||||||||||||||||||||
Total non-interest bearing liabilities | 3,213,533 | 2,613,564 | |||||||||||||||||||||||||||||||||
Total liabilities | 17,069,572 | 12,179,378 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 2,127,469 | 1,653,677 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 19,197,041 | 13,833,055 | ||||||||||||||||||||||||||||||||
Net interest income | $ | 141,506 | 99,106 | ||||||||||||||||||||||||||||||||
Net interest rate spread | 2.58 | % | 2.60 | % | |||||||||||||||||||||||||||||||
Net interest-earning assets | $ | 3,529,780 | 3,010,153 | ||||||||||||||||||||||||||||||||
Net interest margin (3) | 3.21 | % | 3.11 | % | |||||||||||||||||||||||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.25x | 1.31x |
(1) | Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses. | ||||
(2) | Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans. | ||||
(3) | Annualized net interest income divided by average interest-earning assets. | ||||
For the six months ended | |||||||||||||||||||||||||||||||||||
June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||||||||||||||||
(Dollars in Thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||||||||||||||||
Deposits | $ | 32,901 | $ | 3,041 | 5.38 | % | 72,750 | 1,791 | 4.97 | % | |||||||||||||||||||||||||
Federal funds sold and other short-term investments | — | — | — | % | 59 | 2 | 6.00 | % | |||||||||||||||||||||||||||
Available for sale debt securities | 1,959,549 | 27,669 | 2.82 | % | 1,804,814 | 20,692 | 2.29 | % | |||||||||||||||||||||||||||
Held to maturity debt securities, net (1) | 354,731 | 4,625 | 2.61 | % | 381,921 | 4,725 | 2.47 | % | |||||||||||||||||||||||||||
Equity securities, at fair value | 5,525 | — | — | % | 999 | — | — | % | |||||||||||||||||||||||||||
Federal Home Loan Bank stock | 81,309 | 5,055 | 12.43 | % | 70,702 | 2,170 | 6.14 | % | |||||||||||||||||||||||||||
Net loans: (2) | |||||||||||||||||||||||||||||||||||
Total mortgage loans | 9,326,838 | 263,774 | 5.61 | % | 7,671,493 | 195,290 | 5.07 | % | |||||||||||||||||||||||||||
Total commercial loans | 2,953,842 | 94,632 | 6.39 | % | 2,191,222 | 60,109 | 5.49 | % | |||||||||||||||||||||||||||
Total consumer loans | 378,522 | 12,874 | 6.84 | % | 303,724 | 8,673 | 5.76 | % | |||||||||||||||||||||||||||
Total net loans | 12,659,202 | 371,280 | 5.83 | % | 10,166,439 | 264,072 | 5.18 | % | |||||||||||||||||||||||||||
Total interest earning assets | $ | 15,093,217 | $ | 411,670 | 5.43 | % | 12,497,684 | 293,452 | 4.68 | % | |||||||||||||||||||||||||
Non-Interest Earning Assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 108,229 | 136,431 | |||||||||||||||||||||||||||||||||
Other assets | 1,443,958 | 1,149,044 | |||||||||||||||||||||||||||||||||
Total assets | $ | 16,645,404 | 13,783,159 | ||||||||||||||||||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 6,914,802 | $ | 99,745 | 2.90 | % | 5,695,507 | 50,533 | 1.79 | % | |||||||||||||||||||||||||
Savings deposits | 1,308,983 | 1469 | 0.23 | % | 1,352,874 | 990 | 0.15 | % | |||||||||||||||||||||||||||
Time deposits | 1,575,801 | 32,378 | 4.13 | % | 914,358 | 12,434 | 2.74 | % | |||||||||||||||||||||||||||
Total deposits | 9,799,586 | 133,592 | 2.74 | % | 7,962,739 | 63,957 | 1.62 | % | |||||||||||||||||||||||||||
Borrowed funds | 2,049,587 | 37,949 | 3.75 | % | 1,442,744 | 21,564 | 3.01 | % | |||||||||||||||||||||||||||
Subordinated debentures | 115,899 | 4,953 | 8.59 | % | 10,537 | 501 | 9.58 | % | |||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 11,965,072 | 176,494 | 2.97 | % | 9,416,020 | 86,022 | 1.84 | % | ||||||||||||||||||||||||||
Non-Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 2,469,459 | 2,459,375 | ||||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 298,053 | 267,666 | |||||||||||||||||||||||||||||||||
Total non-interest bearing liabilities | 2,767,512 | 2,727,041 | |||||||||||||||||||||||||||||||||
Total liabilities | 14,732,584 | 12,143,061 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 1,912,820 | 1,640,099 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 16,645,404 | 13,783,160 | ||||||||||||||||||||||||||||||||
Net interest income | $ | 235,176 | 207,430 | ||||||||||||||||||||||||||||||||
Net interest rate spread | 2.46 | % | 2.84 | % | |||||||||||||||||||||||||||||||
Net interest-earning assets | $ | 3,128,145 | 3,081,664 | ||||||||||||||||||||||||||||||||
Net interest margin (3) | 3.08 | % | 3.29 | % | |||||||||||||||||||||||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.26x | 1.33x |
(1) | Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses. | ||||
(2) | Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans. | ||||
(3) | Annualized net interest income divided by average interest-earning assets. | ||||
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
Change in interest rates (basis points) - Rate Ramp | Net Interest Income | |||||||||||||||||||
Dollar Amount | Dollar Change | Percent Change | ||||||||||||||||||
-300 | $ | 765,372 | $ | (3,110) | (0.4) | % | ||||||||||||||
-200 | 764,691 | (3,791) | (0.5) | |||||||||||||||||
-100 | 765,804 | (2,678) | (0.3) | |||||||||||||||||
Static | 768,482 | — | — | |||||||||||||||||
+100 | 766,148 | (2,334) | (0.3) |
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 | |||||||||||||||||||||||||||
-300 | $ | 2,794,361 | $ | (213,485) | (7.1) | % | 11.0 | % | (12.4) | % | ||||||||||||||||||||||
-200 | 2,900,299 | (107,547) | (3.6) | 11.7 | (7.3) | |||||||||||||||||||||||||||
-100 | 2,969,556 | (38,290) | (1.3) | 12.2 | (3.2) | |||||||||||||||||||||||||||
Static | 3,007,846 | — | — | 12.6 | — | |||||||||||||||||||||||||||
+100 | 2,990,566 | (17,280) | (0.6) | 12.8 | 1.5 |
Item 4. | CONTROLS AND PROCEDURES. |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities, Use of Proceeds, and 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) | ||||||||||||||||||||||
April 1, 2024 through April 30, 2024 | — | $ | — | — | 976,095 | |||||||||||||||||||||
May 1, 2024 through May 31, 2024 | 527 | 15.17 | 527 | 975,568 | ||||||||||||||||||||||
June 1, 2024 through June 30, 2024 | — | — | — | 975,568 | ||||||||||||||||||||||
Total | 527 | 15.17 | 527 |
Item 3. | Defaults Upon Senior Securities. |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information. |
Item 6. | Exhibits. |
2.1 | |||||
2.2 | |||||
2.3 | |||||
3.1 | |||||
3.2 | |||||
4.1 | |||||
4.2 | |||||
4.3 | |||||
10.1 | |||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6 | |||||
10.7 | |||||
10.8 | |||||
10.9 | |||||
10.10 | |||||
10.11 | |||||
10.12 | |||||
10.13 | |||||
31.1 | |||||
31.2 | |||||
32 | |||||
101 | The following financial statements from the Company’s Quarterly Report to Stockholders on Form 10-Q for the quarter ended June 30, 2024, 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 June 30, 2024, has been formatted in iXBRL. |
PROVIDENT FINANCIAL SERVICES, INC. | ||||||||||||||||||||
Date: | August 8, 2024 | By: | /s/ Anthony J. Labozzetta | |||||||||||||||||
Anthony J. Labozzetta | ||||||||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||||||||
Date: | August 8, 2024 | By: | /s/ Thomas M. Lyons | |||||||||||||||||
Thomas M. Lyons | ||||||||||||||||||||
Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||||||||||||||
Date: | August 8, 2024 | By: | /s/ Adriano M. Duarte | |||||||||||||||||
Adriano M. Duarte | ||||||||||||||||||||
Executive Vice President and Chief Accounting Officer |
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: |
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: |
Date: | August 8, 2024 | /s/ Anthony J. Labozzetta | ||||||||||||
Anthony J. Labozzetta | ||||||||||||||
President and Chief Executive Officer |
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: |
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: |
Date: | August 8, 2024 | /s/ Thomas M. Lyons | ||||||||||||
Thomas M. Lyons | ||||||||||||||
Senior Executive Vice President and Chief Financial Officer |
Date: | August 8, 2024 | /s/ Anthony J. Labozzetta | ||||||||||||
Anthony J. Labozzetta | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
Date: | August 8, 2024 | /s/ Thomas M. Lyons | ||||||||||||
Thomas M. Lyons | ||||||||||||||
Senior Executive Vice President and Chief Financial Officer |
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Held-to-maturity, debt securities | $ 332,691 | $ 352,601 |
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) | 137,565,966 | 137,565,966 |
Common stock, shares outstanding (in shares) | 130,380,393 | 75,537,186 |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Interest and dividend income: | ||||
Real estate secured loans | $ 156,318 | $ 99,302 | $ 263,774 | $ 195,290 |
Commercial loans | 58,532 | 31,426 | 94,632 | 60,109 |
Consumer loans | 8,351 | 4,431 | 12,874 | 8,673 |
Available for sale debt securities, equity securities and Federal Home Loan Bank stock | 20,394 | 11,432 | 32,724 | 22,862 |
Held to maturity debt securities | 2,357 | 2,357 | 4,625 | 4,725 |
Due from banks, Federal funds sold and other short-term investments | 1,859 | 948 | 3,041 | 1,793 |
Total interest income | 247,811 | 149,896 | 411,670 | 293,452 |
Interest expense: | ||||
Deposits | 81,058 | 36,447 | 133,592 | 63,957 |
Borrowed funds | 20,566 | 14,088 | 37,949 | 21,564 |
Subordinated debt | 4,681 | 255 | 4,953 | 501 |
Total interest expense | 106,305 | 50,790 | 176,494 | 86,022 |
Net interest income | 141,506 | 99,106 | 235,176 | 207,430 |
Provision charge for credit losses | 69,705 | 9,750 | 69,385 | 16,490 |
Net interest income after provision charge for credit losses | 71,801 | 89,356 | 165,791 | 190,940 |
Non-interest income: | ||||
Fees | 8,699 | 5,775 | 14,611 | 12,162 |
Wealth management income | 7,769 | 6,919 | 15,257 | 13,834 |
Insurance agency income | 4,488 | 3,847 | 9,281 | 7,950 |
Bank-owned life insurance | 3,323 | 1,534 | 5,140 | 3,018 |
Net (loss) gain on securities transactions | (2,973) | 29 | (2,974) | 24 |
Other income | 969 | 1,283 | 1,766 | 4,552 |
Total non-interest income | 22,275 | 19,387 | 43,081 | 41,540 |
Non-interest expense: | ||||
Compensation and employee benefits | 54,888 | 35,283 | 94,936 | 74,021 |
Net occupancy expense | 11,142 | 7,949 | 19,662 | 16,360 |
Data processing expense | 8,433 | 5,716 | 15,217 | 11,224 |
FDIC insurance | 3,100 | 2,125 | 5,372 | 4,061 |
Amortization of intangibles | 6,483 | 749 | 7,188 | 1,511 |
Advertising and promotion expense | 1,171 | 1,379 | 2,137 | 2,589 |
Merger-related expenses | 18,915 | 1,960 | 21,117 | 3,060 |
Other operating expenses | 11,262 | 9,949 | 21,592 | 21,032 |
Total non-interest expense | 115,394 | 65,110 | 187,221 | 133,858 |
(Loss) Income before income tax expense | (21,318) | 43,633 | 21,651 | 98,622 |
Income tax (benefit) expense | (9,833) | 11,630 | 1,055 | 26,083 |
Net (loss) income | $ (11,485) | $ 32,003 | $ 20,596 | $ 72,539 |
Basic earnings per share (usd per share) | $ (0.11) | $ 0.43 | $ 0.23 | $ 0.97 |
Weighted average basic shares outstanding (in shares) | 102,957,521 | 74,823,272 | 89,108,775 | 74,734,795 |
Diluted earnings per share (usd per share) | $ (0.11) | $ 0.43 | $ 0.23 | $ 0.97 |
Weighted average diluted shares outstanding (in shares) | 102,957,521 | 74,830,187 | 89,116,590 | 74,766,848 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (11,485) | $ 32,003 | $ 20,596 | $ 72,539 |
Unrealized gains and losses on available for sale debt securities: | ||||
Net unrealized gains (losses) arising during the period | 11,561 | (14,726) | 1,604 | 6,138 |
Reclassification adjustment for losses included in net income | 2,056 | 0 | 2,056 | 0 |
Total | 13,617 | (14,726) | 3,660 | 6,138 |
Unrealized gains and losses on derivatives: | ||||
Net unrealized gains arising during the period | 941 | 3,650 | 4,144 | 3,033 |
Reclassification adjustment for (gains) included in net income | (2,582) | (3,010) | (5,469) | (6,089) |
Total | (1,641) | 640 | (1,325) | (3,056) |
Amortization related to post-retirement obligations | (355) | (261) | (1,184) | (530) |
Total other comprehensive income (loss) | 11,621 | (14,347) | 1,151 | 2,552 |
Total comprehensive income | $ 136 | $ 17,656 | $ 21,747 | $ 75,091 |
Summary of Significant Accounting Policies |
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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. (the "Company") and its wholly owned subsidiary, Provident Bank (the “Bank") and its wholly owned subsidiaries. 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 is a material estimate that is 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 and six months ended June 30, 2024 are not necessarily indicative of the results of operations that may be expected for all of 2024. 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. Additionally, certain comparative balances on the interim unaudited consolidated financial statements have been reclassified to conform to the current year’s presentation. These unaudited consolidated financial statements should be read in conjunction with the December 31, 2023 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 and six months ended June 30, 2024 and 2023 (dollars in thousands, except per share amounts):
Anti-dilutive stock options and awards as of June 30, 2024 and 2023, totaling 1.5 million shares and 1.3 million shares, respectively, were excluded from the earnings per share calculations. C. Loans Receivable and Allowance for Credit Losses The impact of utilizing the current expected credit loss ("CECL") methodology 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 may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. For the three and six months ended June 30, 2024, an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million was recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. See Notes 4 and 10 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans and off-balance sheet credit exposures. D. Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions. Goodwill with an indefinite useful life is not amortized, but is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates. Goodwill is analyzed for impairment at least once a year. The Company prepares a qualitative assessment in determining whether goodwill may be impaired. The factors considered in the assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, among others. The Company completed its most recent annual goodwill impairment test as of July 1, 2024. The Company performed a qualitative analysis of goodwill and concluded that no triggering events were identified and therefore a test for impairment between annual tests was not required. Impact of Recent Accounting PronouncementsAccounting Pronouncements Not Yet Adopted In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024, with early adoption in the interim period permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.
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Business Combinations |
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations Lakeland Bancorp, Inc. - Merger Agreement On May 16, 2024, the Company completed its merger with Lakeland Bancorp, Inc. ("Lakeland"), which added $10.91 billion to total assets, $7.91 billion to total loans, $8.62 billion to total deposits and 68 full-service banking offices in New Jersey and New York. The Company expects to close 13 of the acquired Lakeland banking offices and nine legacy Bank branches in the third quarter of 2024 due to geographic overlap. Under the merger agreement, each share of Lakeland common stock was converted into the right to receive 0.8319 shares of the Company's common stock, a total of 54,356,954 shares converted, plus cash in lieu of fractional shares. The total consideration paid for the acquisition of Lakeland was $876.8 million. In connection with the acquisition, Lakeland Bank, a wholly owned subsidiary of Lakeland, was merged with and into the Bank. The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired totaled $190.9 million and was recorded as goodwill. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the merger date, net of cash consideration paid (in thousands):
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 and goodwill may be required. 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 Lakeland 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 agency and municipal bonds carried on Lakeland'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. A fair value discount of $249.7 million was recorded on the investments. Loans Loans acquired from Lakeland were recorded at fair value, and there was no carryover related allowance for loan and lease losses. The fair values of loans acquired from Lakeland 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 had a gross amortized cost basis of $7.91 billion. For loans acquired without evidence of more-than-insignificant deterioration in credit quality since origination, the Company recorded 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 discount of $297.2 million. The Company used historical annual average charge-off percentages for banking institutions identified as peers of the Company and Lakeland combined as a market-participant proxy to develop the life-of-loan loss rates per loan type for the Non-PCD loans. The default and loss rates were then applied to the principal balance to arrive at the projected credit losses for each period, which resulted in a credit fair value discount of $82.4 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) modifications for borrowers experiencing financial difficulty; (3) risk ratings of watch, special mention, substandard or doubtful; and (4) loans greater than 59 days past due. At the acquisition date, an estimate of expected credit losses was made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This estimate of credit losses was calculated using management's best estimate of projected losses over the remaining life of the loans. 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 forecasts. The expected lifetime losses were calculated using historical losses observed at the Bank, Lakeland and peer banks. A $17.2 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. The table below illustrates the fair value adjustments made to the amortized cost basis in order to present the fair value of the loans acquired (in thousands):
The table below is a summary of the PCD loans that were acquired from Lakeland as of the closing date (in thousands):
Banking Premises and Equipment The Company acquired 68 branches from Lakeland, 29 of which were owned premises. The Company expects to close 13 of the acquired banking offices in the third quarter of 2024. The fair value of Lakeland’s premises was determined based upon independent third-party appraisals performed by licensed appraisers in the market in which the premises are located. Core Deposit Intangible The fair value of the core deposit intangible was measured using a discounted cash flow approach by comparing the all-in cost of less rate sensitive deposits against an alternative funding source. The discounted cash flow approach is used because there is no reliable market participant data to support a market approach nor is there an effective measure to utilize the cost approach. To calculate the value of core deposits, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources by using an average of Federal Home Loan Bank of New York ("FHLBNY") advance rates and brokered CD rates as disclosed by market sources. The projected cash flows were developed using projected deposit attrition rates. The discount rate was calculated using the Capital Assets Pricing Model. The core deposit intangible totaled $209.2 million and is being amortized over its estimated life of approximately 10 years based on dollar weighted deposit runoff on an annualized basis. The core deposit intangible will be evaluated annually for impairment. Bank Owned Life Insurance ("BOLI") Lakeland's BOLI cash surrender value was $160.6 million with no fair value adjustment required. 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 $1.2 million is being amortized into income on a level yield basis over the contractual life of the deposits. Borrowings The fair value of FHLBNY advances was determined based on a discounted cash flow analysis using a discount rate derived from FHLBNY rates as of May 16, 2024. The cash flows of the advances were projected based on the scheduled payments of each advance. Subordinated Debentures At the valuation date, Lakeland had three outstanding trust preferred issuances and a subordinated debt issuance with an aggregate balance of $180.2 million, all of which was assumed by the Company on May 16, 2024. 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. Merger-Related Expenses Merger-related expenses, which is a separate line in non-interest expense on the Consolidated Statements of Income, totaled $18.9 million and $21.1 million for the three and six months ended June 30, 2024, respectively, compared with $2.0 million and $3.1 million for the three and six months ended June 30, 2023.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities As of June 30, 2024, the Company had $2.63 billion and $350.5 million in available for sale debt securities and held to maturity debt securities, respectively. The total number of available for sale and held to maturity debt securities in an unrealized loss position as of June 30, 2024 totaled 1,168, compared with 808 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of June 30, 2024, was due to the addition of Lakeland securities, combined with higher current market interest rates compared to rates as of December 31, 2023. 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 as of June 30, 2024 and December 31, 2023 (in thousands):
Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $9.2 million and $4.9 million as of June 30, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. The amortized cost and fair value of available for sale debt securities as of June 30, 2024, 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.
Investments which pay principal on a periodic basis totaling $2.20 billion at amortized cost and $2.02 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 and six months ended June 30, 2024, proceeds from sales on securities in the available for sale debt securities portfolio totaled $568.4 million, with no gains and $3.0 million of losses recognized. For the three and six months ended June 30, 2023, there were no sales of securities from the available for sale debt securities portfolio. For the three and six months ended June 30, 2024 and 2023, there were no proceeds from calls on securities in the available for sale debt securities portfolio. The number of available for sale debt securities in an unrealized loss position as of June 30, 2024 totaled 620, compared with 436 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of June 30, 2024, was primarily due to the addition of Lakeland, combined with higher current market interest rates compared to rates as of December 31, 2023. All securities in an unrealized loss position were investment grade as of June 30, 2024. Held to Maturity Debt Securities The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $15,000 and $31,000, as of June 30, 2024 and December 31, 2023, respectively (in thousands):
Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $3.0 million and $3.1 million as of June 30, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. 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 and six months ended June 30, 2024 and 2023. For the three and six months ended June 30, 2024, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $1.2 million and $2.4 million, respectively. As to these calls on securities, for the three months ended June 30, 2024, there were no gross gains or gross losses, while for the six months ended June 30, 2024, there were no gross gains, while gross losses totaled $1,200. For the three and six months ended June 30, 2023, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $3.5 million and $6.6 million, respectively. As to these calls on securities, for the three months ended June 30, 2023, gross gains totaled $28,000, with no gross losses, while for the six months ended June 30, 2023, gross gains totaled $24,000, with no gross losses. The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio by contractual maturity, excluding an allowance for credit losses of $15,000, as of June 30, 2024 are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.
The number of held to maturity debt securities in an unrealized loss position as of June 30, 2024 totaled 548, compared with 372 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of June 30, 2024, was due to higher current market interest rates compared to rates as of December 31, 2023. 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: •Government-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 credit ratings from the rating agencies as of June 30, 2024 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's"). Credit Quality Indicators. The following table provides the amortized cost of held to maturity debt securities by credit rating as of June 30, 2024 and December 31, 2023 (in thousands):
Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. As of June 30, 2024, the held to maturity debt securities portfolio was comprised of 18% rated AAA, 72% rated AA, 10% rated A, and less than 1% either below an A rating or not rated by Moody’s or Standard and Poor’s. Securities not explicitly rated, such as U.S. government issued mortgage-backed securities, were grouped where possible under the credit rating of the issuer of the security.
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Loans Receivable and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses Loans receivable as of June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):
Accrued interest on loans totaled $81.6 million and $50.9 million as of June 30, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. The following tables summarize the aging of loans receivable by portfolio segment and class of loans (in thousands):
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 $67.9 million and $49.6 million as of June 30, 2024 and December 31, 2023, respectively. Included in non-accrual loans were $9.4 million and $23.2 million of loans which were less than 90 days past due as of June 30, 2024 and December 31, 2023, respectively. There were no loans 90 days or greater past due and still accruing interest as of June 30, 2024 and December 31, 2023. The amount of cash basis interest income that was recognized on impaired loans for the three and six months ended June 30, 2024 was not material. The activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands):
For the three and six months ended June 30, 2024, the Company recorded a $66.1 million and a $66.3 million provision for credit losses on loans, respectively. The increases in provision for both periods was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, which was primarily attributable to one commercial loan. For the six months ended June 30, 2024, net charge-offs totaled $2.3 million, which was primarily attributable to two commercial loans. The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2024 by year of origination (in thousands):
(1) During the three months ended June 30, 2024, charge-offs on consumer overdraft accounts totaled $74,000, which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2024 by year of origination (in thousands):
(1) During the six months ended June 30, 2024, charge-offs on consumer overdraft accounts totaled $138,000, which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2023 by year of origination (in thousands):
(1) During the three months ended June 30, 2023, charge-offs on consumer overdraft accounts totaled $75,000, which is not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2023 by year of origination (in thousands):
(1) During the six months ended June 30, 2023, charge-offs on consumer overdraft accounts totaled $146,000, which is not included in the table above. The Company defines a loan individually evaluated for impairment as a non-homogeneous loan greater than $1.0 million, for which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement. As of June 30, 2024, there were 18 loans totaling $54.6 million, compared to 17 loans totaling $42.3 million as of December 31, 2023, that were individually evaluated for impairment. 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 collateral’s fair value 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. 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. 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 not been any significant time lapses since the receipt of the most recent appraisals. As of June 30, 2024 and December 31, 2023, the Company had collateral-dependent loans with fair values of $18.4 million and $24.1 million secured by commercial real estate, respectively. Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. 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 illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:
In 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a modified retrospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for loan modifications to borrowers experiencing financial difficulty. Instead, these loan modifications are included in their respective pool and a projected loss rate is applied to the current loan balance to arrive at the quantitative and qualitative baseline portion of the allowance for credit losses. At adoption, the Company recorded a $594,000 reduction to the allowance for credit losses, which resulted in a $433,000 cumulative effect adjustment increase, net of tax, to retained earnings. The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 (in thousands):
There were no loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2023. The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2024 (in thousands):
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2024 (in thousands):
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the three and six months ended June 30, 2024 and June 30, 2023, respectively. The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2024 (in thousands):
The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2024 (in thousands):
The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
Loans acquired by the Company that experienced more-than-insignificant deterioration in credit quality after origination, are classified as PCD loans. As of June 30, 2024, the balance of PCD loans totaled $697.9 million with a related allowance for credit losses of $16.4 million. The balance of PCD loans as of December 31, 2023 was $165.1 million with a related allowance for credit losses of $1.7 million. In connection with the Lakeland merger, 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) modifications for borrowers experiencing financial difficulty; (3) risk ratings of watch, special mention, substandard or doubtful; and (4) loans greater than 59 days past due. 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. 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 forecasts inclusive of related fiscal and regulatory interventions. The expected lifetime losses were calculated using historical losses observed at the Bank, Lakeland and peer banks. A $17.2 million allowance for credit losses was recorded on PCD loans acquired from Lakeland. The interest rate fair value adjustment related to PCD loans will be substantially recognized as interest income on a level yield or straight line method over the expected life of the loans. The table below is a summary of the PCD loans that were acquired from Lakeland as of the closing date (in thousands):
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 reviewed periodically through loan review examinations which are currently performed by independent third-parties. Reports by the independent third-parties are presented to the Audit Committee of the Board of Directors. The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of June 30, 2024 and December 31, 2023 (in thousands):
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.
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Deposits |
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Banking and Thrift, Other Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits Deposits as of June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):
(1) The Bank's insured cash sweep product totaled $1.15 billion and $512.2 million as of June 30, 2024 and December 31, 2023, respectively, and are reported within NOW accounts. (2) Time deposits equal to or in excess of $250,000, were $871.8 million and $218.5 million as of June 30, 2024 and December 31, 2023, respectively. Additionally, the Bank's reciprocal Certificate of Deposit Account Registry Service product totaled $3.7 million and $3.3 million as of June 30, 2024 and December 31, 2023, respectively. Within total deposits, brokered deposits totaled $149.8 million and $165.7 million as of June 30, 2024 and December 31, 2023, respectively.
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Borrowed Funds |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed Funds | Borrowed Funds Borrowed funds as of June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):
(1) The balance at June 30, 2024 for FHLBNY advances does not include $4.8 million of purchase accounting adjustments resulting from the Lakeland acquisition. Total long-term borrowings totaled $539.7 million and $534.8 million as of June 30, 2024 and December 31, 2023, respectively, while total short-term borrowings totaled $1.76 billion and $1.44 billion for the same periods. As of June 30, 2024, FHLBNY advances were at fixed rates and mature between July 2024 and September 2027, and as of December 31, 2023, FHLBNY advances were at fixed rates with maturities between January 2024 and September 2027. These advances are secured by loans receivable under a blanket collateral agreement. In March 2023, the Company established a facility under the Bank Term Funding Program ("BTFP" or "Program") with the Federal Reserve Bank of New York ("FRBNY"). As of June 30, 2024, the Company had $550.0 million of advances under the Program. The Company elected to participate in the BTFP due to significant cost savings compared to other wholesale funding sources. The funding was used to pay off existing wholesale borrowings. The ability to prepay at any time without penalty also enhances our ability to manage our interest rate risk position. Scheduled maturities of FHLBNY advances and lines of credit as of June 30, 2024 are as follows (in thousands):
Scheduled maturities of securities sold under repurchase agreements as of June 30, 2024 are as follows (in thousands):
The following tables set forth certain information as to borrowed funds for the periods ended June 30, 2024 and December 31, 2023 (in thousands):
Securities sold under repurchase agreements include arrangements with deposit customers of the Bank to sweep funds into short-term borrowings. The Bank uses available for sale debt securities to pledge as collateral for the repurchase agreements. As of June 30, 2024 and December 31, 2023, the fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit and FHLBNY advances, totaled $1.08 billion and $924.6 million, respectively. Additionally, as of June 30, 2024 and December 31, 2023, the par value of securities pledged to secure BTFP borrowings was $569.4 million and $589.1 million. Interest expense on borrowings for the three and six months ended June 30, 2024 amounted to $20.8 million and $38.2 million, respectively. Amortization related to purchase accounting on FHLBNY advances totaled $276,000 for the three and six months ended June 30, 2024, respectively. Interest expense on borrowings for the three and six months ended June 30, 2023 amounted to $14.1 million and $21.6 million, respectively.
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Subordinated Debentures |
6 Months Ended |
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Jun. 30, 2024 | |
Broker-Dealer [Abstract] | |
Subordinated Debentures | Subordinated Debentures On May 9, 2024, the Company issued $225.0 million of 9.00% Fixed-to-Floating Rate subordinated notes (the "Notes") due 2034, resulting in net proceeds of $221.2 million. The notes bear interest at an initial rate of 9.00% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2024. The last interest payment date for the fixed rate period will be May 15, 2029. From and including May 15, 2029 to, but excluding May 15, 2034 or the date of earlier redemption, the Notes will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be three-Month term Secured Overnight Financing Rate ("SOFR")), each as defined in and subject to the provisions of the Indenture, plus 476.5 basis points, payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, commencing on August 15, 2029. The debt is included in Tier 2 capital for the Company. Debt issuance costs totaled $3.8 million and are being amortized to maturity. On May 16, 2024, the Company assumed Lakeland’s obligations with respect to $150.0 million aggregate principal amount of fixed-to-floating rate subordinated notes due September 15, 2031. The notes bear interest at a rate of 2.875% until September 15, 2026, and will then reset quarterly to the then current Benchmark rate, which is expected to be the three-month term SOFR plus a spread of 220 basis points. 1st Constitution Capital Trust II, a non-consolidated subsidiary of the Company acquired as part of the Lakeland acquisition and a Delaware statutory business trust established on June 15, 2006, issued $18.0 million of variable rate capital trust pass-through securities to investors. In accordance with FASB ASC 810, Consolidation, 1st Constitution Capital Trust II is not included in our consolidated financial statements. Lakeland Bancorp Capital Trust II, a non-consolidated subsidiary of the Company acquired as part of the Lakeland acquisition and a Delaware statutory business trust established in June 2003, issued $20.0 million of variable rate capital trust pass-through securities to investors. In accordance with FASB ASC 810, Consolidation, Lakeland Bancorp Capital Trust II is not included in our consolidated financial statements. Lakeland Bancorp Capital Trust IV, a non-consolidated subsidiary of the Company acquired as part of the Lakeland acquisition and a Delaware statutory business trust established in May 2007, issued $20.0 million of variable rate capital trust pass-through securities to investors. In accordance with FASB ASC 810, Consolidation, Lakeland Bancorp Capital Trust IV is not included in our consolidated financial statements. On August 3, 2015, Lakeland acquired and extinguished $10.0 million of Lakeland Bancorp Capital Trust IV debentures. Sussex Capital Trust II, a non-consolidated subsidiary of the Company acquired as part of the SB One acquisition and a Delaware statutory business trust established on June 28, 2007, issued $12.5 million of variable rate capital trust pass-through securities to investors. In accordance with FASB ASC 810, Consolidation, Sussex Capital Trust II is not included in our consolidated financial statements.
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Components of Net Periodic Benefit Cost |
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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 and six months ended June 30, 2024 and 2023 includes the following components (in thousands):
In its consolidated financial statements for the year ended December 31, 2023, the Company previously disclosed that it does not expect to contribute to the pension plan in 2024. As of June 30, 2024, no contributions have been made to the pension plan. The changes in net periodic benefit cost for pension benefits and other post-retirement benefits for the three and six months ended June 30, 2024 were calculated using the January 1, 2023 pension and other post-retirement benefits actuarial valuations.
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Contingencies |
6 Months Ended |
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Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is involved in various litigation and claims arising in the normal course of business. On May 2, 2022, a purported class action complaint was filed against the Bank in the Superior Court of New Jersey, which alleges that the Bank wrongfully assessed overdraft fees related to debit card transactions. The complaint asserted claims for breach of contract and breach of the covenant of good faith and fair dealing as well as an alleged violation of the New Jersey Consumer Fraud Act. Plaintiff sought to represent a proposed class of all the Bank's checking account customers who were charged overdraft fees on transactions that were authorized into a positive available balance. The parties mediated the matter on May 28, 2024, and agreed in principle to a settlement resolving the dispute with the Bank contributing $1.85 million to a settlement fund. The motion for preliminary approval is due to the Court on September 6, 2024.
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Allowance for Credit Losses on Off-Balance Sheet Credit Exposures |
6 Months Ended |
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Jun. 30, 2024 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance Sheet Credit Exposures 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 that may default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors. For the three and six months ended June 30, 2024, the Company recorded a $3.7 million and a $3.1 million provision charge for credit losses for off-balance sheet credit exposures, respectively. For the three and six months ended June 30, 2023, the Company recorded a $647,000 provision benefit for credit losses for off-balance sheet credit exposures and a $92,000 provision charge for credit losses for off-balance sheet credit exposures, respectively. The $4.3 million increase and the $3.1 million increase in the provision for the three and six months ended June 30, 2024, compared to the same period in 2023, primarily related to the establishment of an allowance for credit losses on commitments to extend credit acquired from Lakeland. The allowance for credit losses for off-balance sheet credit exposures was $6.6 million as of June 30, 2024 and $3.4 million as of December 31, 2023, and are included in other liabilities on the Consolidated Statements of Financial Condition.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, 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:
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 June 30, 2024 and December 31, 2023. 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 by benchmarking 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. The Company also holds debt instruments issued by the U.S. government that are traded in active markets with readily accessible quoted market prices that are considered Level 1 within the fair value hierarchy. 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 these 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 and brokered demand deposits. The change in the fair value of these derivatives is recorded in accumulated other comprehensive income (loss), and is subsequently reclassified into earnings in the period that the forecasted transactions affect 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 June 30, 2024 and December 31, 2023. 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 June 30, 2024 or December 31, 2023. The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of June 30, 2024 and December 31, 2023, by level within the fair value hierarchy (in thousands):
There were no transfers into or out of Level 3 during the three and six months ended June 30, 2024. 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. As of June 30, 2024 and December 31, 2023, $70,000 was included in cash and cash equivalents, representing cash collateral pledged to secure loan level swaps and risk participation agreements. 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 by benchmarking 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-sponsored 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 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. Subordinated Debentures The fair value of borrowed funds was estimated based on bid/ask prices from brokers for similar types of instruments and is classified by the Company as Level 2 within the fair value hierarchy. Commitments to Extend Credit and Letters of Credit The fair value of commitments to extend credit and letters of credit was estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The Company classifies these commitments as Level 3 within the fair value hierarchy. 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 June 30, 2024 and December 31, 2023. Fair values are presented by level within the fair value hierarchy.
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Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following table presents the components of other comprehensive income (loss), both gross and net of tax, for the three and six months ended June 30, 2024 and 2023 (in thousands):
The following tables present the changes in the components of accumulated other comprehensive (loss), net of tax, for the three and six months ended June 30, 2024 and 2023 (in thousands):
The following tables summarize the reclassifications from accumulated other comprehensive (loss) to the consolidated statements of income for the three and six months ended June 30, 2024 and 2023 (in thousands):
(1) This item is included in the computation of net periodic benefit cost. See Note 8. Components of Net Periodic Benefit Cost.
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Derivatives and Hedging Activities |
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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. As of June 30, 2024 and December 31, 2023, the Company had 321 and 154 loan related interest rate swaps with aggregate notional amounts of $4.64 billion and $2.30 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 $70,000 against the potential risk of default by the borrower under these agreements. For June 30, 2024 and December 31, 2023, the Company had 8 and 12 credit derivatives, respectively, with aggregate notional amounts of $87.7 million and $142.8 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements. As of June 30, 2024, both the asset and liability positions of these fair value credit derivatives were insignificant, compared to $17,000 and $8,000, respectively, as of December 31, 2023. 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 (loss) income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three and six months ended June 30, 2024 and 2023, such derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s borrowings or demand deposits. During the next twelve months, the Company estimates that $9.9 million will be reclassified as a reduction to interest expense. As of June 30, 2024, the Company had 7 outstanding interest rate derivatives with an aggregate notional amount of $375.0 million that were each designated as a cash flow hedge of interest rate risk, compared to 9 outstanding interest rate derivatives with an aggregate notional amount of $455.0 million, as of December 31, 2023. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by or received from the counterparty with net liability or asset positions, respectively, in accordance with contract thresholds. Master repurchase agreements which include “right of set-off” provisions generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the swap or repurchase agreement should the Company be in default. Total amount of collateral held or pledged cannot exceed the net derivative fair values with the counterparty. The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition as of June 30, 2024 and December 31, 2023 (in thousands).
(1) The fair values related to interest rate products in the above net derivative tables show the total value of assets and liabilities, which include accrued interest receivable and accrued interest payable for the periods ended June 30, 2024 and December 31, 2023. The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three and six months ended June 30, 2024 and 2023 (in thousands).
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. As of June 30, 2024, the Company had five dealer counterparties and the Company was in a net asset position with respect to all of its counterparties.
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Revenue Recognition |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 both the three and six months ended June 30, 2024, the out-of-scope revenue related to financial instruments was 91.8% and 90.5% of the Company's total revenue, compared to 88.5% and 87.6% for the three and six months ended June 30, 2023, respectively. Revenue-generating activities that are within the scope of Topic 606, are components of non-interest income. These revenue streams are generally classified into three categories: 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 and six months ended June 30, 2024 and 2023 (in thousands):
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 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 is 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 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 is 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 the 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 |
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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 as of June 30, 2024 and December 31, 2023 (in thousands):
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. 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 2046. As of June 30, 2024, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 7.6 years and 2.06%, 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):
During the three and six months ended June 30, 2024, the Company added 39 new lease obligations related to the Lakeland merger. The Company recorded a $14.7 million right-of-use asset and lease liability for these lease obligations. Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024, were as follows (in thousands):
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Leases | Leases The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities as of June 30, 2024 and December 31, 2023 (in thousands):
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. 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 2046. As of June 30, 2024, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 7.6 years and 2.06%, 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):
During the three and six months ended June 30, 2024, the Company added 39 new lease obligations related to the Lakeland merger. The Company recorded a $14.7 million right-of-use asset and lease liability for these lease obligations. Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024, were as follows (in thousands):
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Impact of Recent Accounting Pronouncements |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of Recent Accounting Pronouncements | 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. (the "Company") and its wholly owned subsidiary, Provident Bank (the “Bank") and its wholly owned subsidiaries. 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 is a material estimate that is 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 and six months ended June 30, 2024 are not necessarily indicative of the results of operations that may be expected for all of 2024. 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. Additionally, certain comparative balances on the interim unaudited consolidated financial statements have been reclassified to conform to the current year’s presentation. These unaudited consolidated financial statements should be read in conjunction with the December 31, 2023 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 and six months ended June 30, 2024 and 2023 (dollars in thousands, except per share amounts):
Anti-dilutive stock options and awards as of June 30, 2024 and 2023, totaling 1.5 million shares and 1.3 million shares, respectively, were excluded from the earnings per share calculations. C. Loans Receivable and Allowance for Credit Losses The impact of utilizing the current expected credit loss ("CECL") methodology 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 may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. For the three and six months ended June 30, 2024, an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million was recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. See Notes 4 and 10 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans and off-balance sheet credit exposures. D. Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions. Goodwill with an indefinite useful life is not amortized, but is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates. Goodwill is analyzed for impairment at least once a year. The Company prepares a qualitative assessment in determining whether goodwill may be impaired. The factors considered in the assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, among others. The Company completed its most recent annual goodwill impairment test as of July 1, 2024. The Company performed a qualitative analysis of goodwill and concluded that no triggering events were identified and therefore a test for impairment between annual tests was not required. Impact of Recent Accounting PronouncementsAccounting Pronouncements Not Yet Adopted In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024, with early adoption in the interim period permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net (loss) income | $ (11,485) | $ 32,003 | $ 20,596 | $ 72,539 |
Insider Trading Arrangements |
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Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
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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. (the "Company") and its wholly owned subsidiary, Provident Bank (the “Bank") and its wholly owned subsidiaries. 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 is a material estimate that is 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 and six months ended June 30, 2024 are not necessarily indicative of the results of operations that may be expected for all of 2024. 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. Additionally, certain comparative balances on the interim unaudited consolidated financial statements have been reclassified to conform to the current year’s presentation.
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Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses The impact of utilizing the current expected credit loss ("CECL") methodology 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 may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. For the three and six months ended June 30, 2024, an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million was recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. See Notes 4 and 10 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans and off-balance sheet credit exposures.
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Goodwill | GoodwillGoodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions. Goodwill with an indefinite useful life is not amortized, but is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates. Goodwill is analyzed for impairment at least once a year. The Company prepares a qualitative assessment in determining whether goodwill may be impaired. The factors considered in the assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, among others. The Company completed its most recent annual goodwill impairment test as of July 1, 2024. The Company performed a qualitative analysis of goodwill and concluded that no triggering events were identified and therefore a test for impairment between annual tests was not required. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. 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:
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 June 30, 2024 and December 31, 2023. 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 by benchmarking 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. The Company also holds debt instruments issued by the U.S. government that are traded in active markets with readily accessible quoted market prices that are considered Level 1 within the fair value hierarchy. 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 these 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 and brokered demand deposits. The change in the fair value of these derivatives is recorded in accumulated other comprehensive income (loss), and is subsequently reclassified into earnings in the period that the forecasted transactions affect 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 June 30, 2024 and December 31, 2023. 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.
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Revenue Recognition | 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 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 is 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 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 is 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 the 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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Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024, with early adoption in the interim period permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.
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Summary of Significant Accounting Policies (Tables) |
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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 and six months ended June 30, 2024 and 2023 (dollars in thousands, except per share amounts):
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Business Combinations (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Values of the Assets Acquired and the Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the merger date, net of cash consideration paid (in thousands):
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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 the fair value of the loans acquired (in thousands):
The table below is a summary of the PCD loans that were acquired from Lakeland as of the closing date (in thousands):
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Investment Securities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 as of June 30, 2024 and December 31, 2023 (in thousands):
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Investment Securities Classified by Contractual Maturity | The amortized cost and fair value of available for sale debt securities as of June 30, 2024, 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.
The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio by contractual maturity, excluding an allowance for credit losses of $15,000, as of June 30, 2024 are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.
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Investment Securities Held to Maturity | The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $15,000 and $31,000, as of June 30, 2024 and December 31, 2023, respectively (in thousands):
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Amortized Cost of held To Maturity Debt Securities by Year of Originations and Credit Rating | The following table provides the amortized cost of held to maturity debt securities by credit rating as of June 30, 2024 and December 31, 2023 (in thousands):
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Loans Receivable and Allowance for Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Loans Receivable | Loans receivable as of June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):
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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):
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Allowance for Loan Losses by Portfolio Segment and Impairment Classification | The activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands):
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Loan Modifications | The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2024 by year of origination (in thousands):
(1) During the three months ended June 30, 2024, charge-offs on consumer overdraft accounts totaled $74,000, which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2024 by year of origination (in thousands):
(1) During the six months ended June 30, 2024, charge-offs on consumer overdraft accounts totaled $138,000, which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2023 by year of origination (in thousands):
(1) During the three months ended June 30, 2023, charge-offs on consumer overdraft accounts totaled $75,000, which is not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2023 by year of origination (in thousands):
(1) During the six months ended June 30, 2023, charge-offs on consumer overdraft accounts totaled $146,000, which is not included in the table above. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:
The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 (in thousands):
There were no loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2023. The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2024 (in thousands):
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2024 (in thousands):
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2024 (in thousands):
The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2024 (in thousands):
The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
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Fair Value of Loans Acquired in Acquisition | The table below is a summary of the PCD loans that were acquired from Lakeland as of the closing date (in thousands):
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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 as of June 30, 2024 and December 31, 2023 (in thousands):
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.
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Deposits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift, Other Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits Liabilities | Deposits as of June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):
(1) The Bank's insured cash sweep product totaled $1.15 billion and $512.2 million as of June 30, 2024 and December 31, 2023, respectively, and are reported within NOW accounts. (2) Time deposits equal to or in excess of $250,000, were $871.8 million and $218.5 million as of June 30, 2024 and December 31, 2023, respectively. Additionally, the Bank's reciprocal Certificate of Deposit Account Registry Service product totaled $3.7 million and $3.3 million as of June 30, 2024 and December 31, 2023, respectively.
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Borrowed Funds (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed Funds | Borrowed funds as of June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):
(1) The balance at June 30, 2024 for FHLBNY advances does not include $4.8 million of purchase accounting adjustments resulting from the Lakeland acquisition.
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Maturities of FHLB Advances | Scheduled maturities of FHLBNY advances and lines of credit as of June 30, 2024 are as follows (in thousands):
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Maturities of Sold Under Repurchase Agreements | Scheduled maturities of securities sold under repurchase agreements as of June 30, 2024 are as follows (in thousands):
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Debt Disclosure by Year | The following tables set forth certain information as to borrowed funds for the periods ended June 30, 2024 and December 31, 2023 (in thousands):
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Components of Net Periodic Benefit Cost (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic (Benefit) Increase Cost | Net periodic (benefit) increase cost for pension benefits and other post-retirement benefits for the three and six months ended June 30, 2024 and 2023 includes the following components (in thousands):
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2024 and December 31, 2023, by level within the fair value hierarchy (in thousands):
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Financial Instruments at Carrying and Fair Values | The following tables present the Company’s financial instruments at their carrying and fair values as of June 30, 2024 and December 31, 2023. Fair values are presented by level within the fair value hierarchy.
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Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income (Loss) | The following table presents the components of other comprehensive income (loss), both gross and net of tax, for the three and six months ended June 30, 2024 and 2023 (in thousands):
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Components of Accumulated Other Comprehensive Income, Net of Tax | The following tables present the changes in the components of accumulated other comprehensive (loss), net of tax, for the three and six months ended June 30, 2024 and 2023 (in thousands):
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Reclassifications Out of Accumulated Other Comprehensive Income | The following tables summarize the reclassifications from accumulated other comprehensive (loss) to the consolidated statements of income for the three and six months ended June 30, 2024 and 2023 (in thousands):
(1) This item is included in the computation of net periodic benefit cost. See Note 8. Components of Net Periodic Benefit Cost.
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Derivatives and Hedging Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting Assets | The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition as of June 30, 2024 and December 31, 2023 (in thousands).
(1) The fair values related to interest rate products in the above net derivative tables show the total value of assets and liabilities, which include accrued interest receivable and accrued interest payable for the periods ended June 30, 2024 and December 31, 2023.
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Offsetting Liabilities | The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition as of June 30, 2024 and December 31, 2023 (in thousands).
(1) The fair values related to interest rate products in the above net derivative tables show the total value of assets and liabilities, which include accrued interest receivable and accrued interest payable for the periods ended June 30, 2024 and December 31, 2023.
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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 and six months ended June 30, 2024 and 2023 (in thousands).
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Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Interest Income, Segregated by Revenue | The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2024 and 2023 (in thousands):
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Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 as of June 30, 2024 and December 31, 2023 (in thousands):
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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):
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Future Minimum Payments | Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024, were as follows (in thousands):
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Summary of Significant Accounting Policies - Narrative (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Accounting Policies [Abstract] | |||
Anti-dilutive stock options and awards excluded from computation of earnings per share (in shares) | 1.5 | 1.3 | |
Provision for credit losses on loans and commitments | $ 65.2 | $ 65.2 |
Business Combinations - Estimated Fair Values of the Assets Acquired and the Liabilities Assumed (Details) - Lakeland Bancorp, Inc. - Merger Agreement - USD ($) $ in Thousands |
Jun. 30, 2024 |
May 16, 2024 |
---|---|---|
Assets acquired: | ||
Cash and cash equivalents, net | $ 194,548 | |
Available for sale debt securities | 1,585,993 | |
Federal Home Loan Bank stock | 46,113 | |
Loans held for sale | 1,494 | |
Loans held for investment | 7,906,326 | |
Allowance for credit losses on PCD loans | (17,188) | |
Loans, net | 7,889,138 | |
Bank-owned life insurance | 160,646 | |
Banking premises and equipment | 60,578 | |
Accrued interest receivable | 27,241 | |
Goodwill | $ 190,900 | 190,858 |
Other intangibles assets | 209,915 | |
Other assets | 242,011 | |
Total assets acquired | 10,608,535 | |
Liabilities assumed: | ||
Deposits | 8,622,924 | |
Mortgage escrow deposits | 5,532 | |
Borrowed funds | 785,927 | |
Subordinated debentures | 180,198 | |
Other liabilities | 137,176 | |
Total liabilities assumed | 9,731,757 | |
Net assets acquired | $ 876,778 |
Business Combinations - Fair Value Adjustments Made to the Amortized Cost (Details) - Lakeland Bancorp, Inc. - Merger Agreement $ in Thousands |
May 16, 2024
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Gross amortized cost basis as of May 16, 2024 | $ 8,323,589 |
Interest rate fair value adjustment on all loans | (330,540) |
Credit fair value adjustment on non-PCD loans | (82,359) |
Charge-offs on PCD Loans at acquisition | (4,364) |
Allowance for credit losses on PCD loans | (17,188) |
Loans, net | $ 7,889,138 |
Business Combinations - PCD Loans (Details) - Lakeland Bancorp, Inc. - Merger Agreement $ in Thousands |
May 16, 2024
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Gross amortized cost basis as of May 16, 2024 | $ 564,147 |
Charge-offs on PCD Loans at acquisition | (4,364) |
Interest component of expected cash flows (accretable difference) | (33,365) |
Allowance for credit losses on PCD loans | (17,188) |
Net PCD loans | $ 509,230 |
Investment Securities - Available for Sale by Contractual Maturity (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Investments, Debt and Equity Securities [Abstract] | |
Due in one year or less, amortized cost | $ 56,503 |
Due after one year through five years, amortized cost | 361,811 |
Due after five years through ten years, amortized cost | 115,803 |
Due after ten years, amortized cost | 110,821 |
Amortized cost | 644,938 |
Due in one year or less, fair value | 57,494 |
Due after one year through five years, fair value | 337,043 |
Due after five years through ten years, fair value | 112,705 |
Due after ten years, fair value | 102,936 |
Fair value | $ 610,178 |
Investment Securities - Securities Held to Maturity by Contractual Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less, amortized cost | $ 39,389 | |
Due after one year through five years, amortized cost | 180,001 | |
Due after five years through ten years, amortized cost | 107,966 | |
Due after ten years, amortized cost | 23,188 | |
Amortized cost | 350,544 | |
Due in one year or less, fair value | 39,125 | |
Due after one year through five years, fair value | 174,525 | |
Due after five years through ten years, fair value | 100,776 | |
Due after ten years, fair value | 18,265 | |
Fair value | 332,691 | |
Held-to-maturity, debt securities, allowance | $ 15 | $ 31 |
Loans Receivable and Allowance for Credit Losses - Financial Effect (Details) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Weighted-Average Months of Term Extension | 3 months | 1 month | 10 months |
Weighted-Average Rate Increase | 1.25% | 1.63% | 0.28% |
Commercial loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Weighted-Average Months of Term Extension | 3 months | 1 month | 10 months |
Weighted-Average Rate Increase | 1.25% | 1.63% | 0.28% |
Loans Receivable and Allowance for Credit Losses - PCD Loans (Details) - Lakeland Bancorp, Inc. - Merger Agreement $ in Thousands |
May 16, 2024
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Gross amortized cost basis as of May 16, 2024 | $ 564,147 |
Charge-offs on PCD Loans at acquisition | (4,364) |
Interest component of expected cash flows (accretable difference) | (33,365) |
Allowance for credit losses on PCD loans | (17,188) |
Net PCD loans | $ 509,230 |
Deposits - Deposits Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Banking and Thrift, Other Disclosure [Abstract] | ||
Savings | $ 1,745,158 | $ 1,175,683 |
Money market | 3,443,081 | 2,325,364 |
NOW | 6,370,433 | 3,492,184 |
Non-interest bearing | 3,712,580 | 2,203,341 |
Certificates of deposit | 3,081,992 | 1,095,942 |
Total deposits | 18,353,244 | 10,292,514 |
Time deposits, insured cash sweep | 1,150,000 | 512,200 |
Time deposits, at or above FDIC insurance limit | 871,800 | 218,500 |
Certificate of deposit account registry service, time deposit | $ (3,700) | $ (3,300) |
Deposits - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Other Liabilities Disclosure [Abstract] | ||
Time deposits, brokered | $ 149.8 | $ 165.7 |
Borrowed Funds - Borrowed Funds (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Debt Disclosure [Abstract] | ||
Securities sold under repurchase agreements | $ 108,307 | $ 72,161 |
FHLBNY line of credit | 282,000 | 148,000 |
FHLBNY advances | 1,356,931 | 1,299,872 |
FRBNY BTFP Borrowing | 550,000 | 450,000 |
Total borrowed funds | 2,297,239 | $ 1,970,033 |
Purchase accounting adjustments | $ 4,800 |
Borrowed Funds - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Debt Instrument [Line Items] | |||||
Total long-term borrowings | $ 539,700 | $ 539,700 | $ 534,800 | ||
Total short-term borrowings | 1,760,000 | 1,760,000 | 1,440,000 | ||
FRBNY BTFP Borrowing | 550,000 | 550,000 | 450,000 | ||
Available for sale debt securities, at fair value | 2,626,783 | 2,626,783 | 1,690,112 | ||
Interest expense, borrowings | 20,800 | $ 14,100 | 38,200 | $ 21,600 | |
Amortization related to purchase accounting on FHLB advances | 276 | 276 | |||
Asset Pledged as Collateral | Securities Sold under Agreements to Repurchase | |||||
Debt Instrument [Line Items] | |||||
Available for sale debt securities, at fair value | 1,080,000 | 1,080,000 | 924,600 | ||
Asset Pledged as Collateral | Federal Funds Purchased | |||||
Debt Instrument [Line Items] | |||||
Available for sale debt securities, at fair value | $ 569,400 | $ 569,400 | $ 589,100 |
Borrowed Funds - FHLB Advances (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Due in one year or less | $ 1,404,036 |
Due after one year through two years | 152,451 |
Due after two years through three years | 282,445 |
Due after three years through four years | 350,000 |
Thereafter | 0 |
Total FHLBNY advances and overnight borrowings | $ 2,188,932 |
Borrowed Funds - Securities Sold Under Repurchase Agreements (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Total securities sold under repurchase agreements | $ 108,307 | $ 72,161 |
Securities Loaned or Sold under Agreements to Repurchase | ||
Debt Instrument [Line Items] | ||
Due in one year or less | 108,307 | |
Thereafter | 0 | |
Total securities sold under repurchase agreements | $ 108,307 |
Borrowed Funds - Debt Disclosure by Year (Details) - USD ($) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Maximum balance | ||
Securities sold under repurchase agreements | $ 108,589,000 | $ 99,669,000 |
FHLBNY overnight borrowings | 567,000,000 | 500,000,000 |
FHLBNY advances | 1,469,152,000 | 1,592,277,000 |
FRBNY BTFP Borrowing | 550,000,000 | 450,000,000 |
Average balance | ||
Securities sold under repurchase agreements | 89,209,000 | 87,227,000 |
FHLBNY overnight borrowings | 110,698,000 | 262,289,000 |
FHLBNY advances | 1,304,015,000 | 1,282,124,000 |
FRBNY BTFP Borrowing | $ 544,395,000 | $ 4,932,000 |
Weighted average interest rate | ||
Securities sold under repurchase agreements | 1.97% | 1.69% |
FHLBNY overnight borrowings | 5.63% | 5.29% |
FHLBNY advances | 3.28% | 3.14% |
FRBNY BTFP Borrowing | 4.77% | 4.83% |
Components of Net Periodic Benefit Cost - Narrative (Details) - USD ($) |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2006 |
Jun. 30, 2024 |
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 |
Components of Net Periodic Benefit Cost - Net Periodic (Benefit) Increase Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Pension benefits | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 289 | 302 | 578 | 604 |
Expected return on plan assets | (778) | (706) | (1,556) | (1,412) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of the net loss (gain) | 14 | 177 | 28 | 354 |
Net periodic (decrease) increase in benefit cost | (475) | (227) | (950) | (454) |
Other post-retirement benefits | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Service cost | 3 | 3 | 6 | 6 |
Interest cost | 135 | 150 | 270 | 300 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of the net loss (gain) | (530) | (533) | (1,060) | (1,066) |
Net periodic (decrease) increase in benefit cost | $ (392) | $ (380) | $ (784) | $ (760) |
Contingencies (Details) $ in Thousands |
May 28, 2024
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Settlement fund | $ 1,850 |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Credit Loss [Abstract] | |||||
Provision charge (benefit) for credit losses on off-balance sheet credit exposures | $ 3,700 | $ (647) | $ 3,100 | $ 92 | |
Increase (decrease) in provision | 4,300 | 3,100 | |||
Provision for credit losses for off-balance sheet credit exposure | $ 6,600 | $ 6,600 | $ 3,400 |
Fair Value Measurements - Narrative (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
security
|
Dec. 31, 2023
USD ($)
|
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted cash | $ | $ 70 | $ 70 |
Minimum | Measurement Input, Cost to Sell | Valuation, Market Approach | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans, measurement input | 0.05 | |
Foreclosed assets, measurement input | 0.05 | |
Maximum | Measurement Input, Cost to Sell | Valuation, Market Approach | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans, measurement input | 0.10 | |
Foreclosed assets, measurement input | 0.10 |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 67,943 | $ 56,907 |
Operating lease, right-of-use asset, statement of financial position [Extensible List] | Other assets | Other assets |
Operating lease liabilities | $ 71,320 | $ 60,039 |
Operating lease, liability, statement of financial position [Extensible List] | Other liabilities | Other liabilities |
Leases - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2024
USD ($)
obligation
|
Jun. 30, 2024
USD ($)
obligation
|
Dec. 31, 2023
USD ($)
|
|
Lessee, Lease, Description [Line Items] | |||
Weighted-average remaining lease term (in years) | 7 years 7 months 6 days | 7 years 7 months 6 days | |
Weighted-average discount rate (as a percent) | 2.06% | 2.06% | |
Operating lease liabilities | $ 71,320 | $ 71,320 | $ 60,039 |
Operating lease right-of-use assets | $ 67,943 | $ 67,943 | $ 56,907 |
Lakeland Bancorp, Inc. - Merger Agreement | |||
Lessee, Lease, Description [Line Items] | |||
Number of new lease obligations | obligation | 39 | 39 | |
Operating lease liabilities | $ 14,700 | $ 14,700 | |
Operating lease right-of-use assets | $ 14,700 | $ 14,700 |
Leases - Supplemental Cash Flow and Lease Cost Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 3,771 | $ 2,629 | $ 6,398 | $ 5,257 |
Variable lease cost | 705 | 842 | 1,491 | 1,722 |
Total lease cost | $ 4,476 | $ 3,471 | 7,889 | 6,979 |
Operating cash flows from operating leases | $ 5,698 | $ 4,776 |
Leases - Future Minimum Payments (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Remainder of 2024 | $ 7,064 | |
2025 | 13,403 | |
2026 | 11,718 | |
2027 | 10,153 | |
2028 | 8,655 | |
Thereafter | 29,641 | |
Total future minimum lease payments | 80,634 | |
Amounts representing interest | 9,314 | |
Present value of net future minimum lease payments | $ 71,320 | $ 60,039 |
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