For the quarterly period ended | ||||||||
OR |
Commission file number |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||
PAGE | ||||||||
Consolidated Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021 | ||||||||
Consolidated Statements of Income for the Three Months Ended March 31, 2022 and 2021 (unaudited) | ||||||||
Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2022 and 2021 (unaudited) | ||||||||
Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2022 and 2021 (unaudited) | ||||||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (unaudited) | ||||||||
Item 5. | Other Information | |||||||
March 31, 2022 | December 31, 2021 | ||||||||||
(dollars in thousands) | (unaudited) | ||||||||||
Assets | |||||||||||
Cash | $ | $ | |||||||||
Interest-bearing deposits due from banks | |||||||||||
Total cash and cash equivalents | |||||||||||
Investment securities available for sale, at fair value (allowance for credit losses of $ | |||||||||||
Investment securities held to maturity (fair value of $ | |||||||||||
Equity securities, at fair value | |||||||||||
Federal Home Loan Bank and other membership bank stock, at cost | |||||||||||
Loans held for sale | |||||||||||
Loans, net of deferred fees | |||||||||||
Less: Allowance for credit losses | |||||||||||
Total loans, net | |||||||||||
Premises and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Accrued interest receivable | |||||||||||
Goodwill | |||||||||||
Other intangible assets | |||||||||||
Bank owned life insurance | |||||||||||
Other assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Federal funds purchased and securities sold under agreements to repurchase | |||||||||||
Other borrowings | |||||||||||
Subordinated debentures | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total Liabilities | |||||||||||
Stockholders' Equity | |||||||||||
Common stock, | |||||||||||
Retained earnings | |||||||||||
Treasury shares, at cost, | ( | ( | |||||||||
Accumulated other comprehensive income | ( | ||||||||||
Total Stockholders' Equity | |||||||||||
Total Liabilities and Stockholders' Equity | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(in thousands, except per share data) | 2022 | 2021 | ||||||||||||
Interest Income | ||||||||||||||
Loans and fees | $ | $ | ||||||||||||
Federal funds sold and interest-bearing deposits with banks | ||||||||||||||
Taxable investment securities and other | ||||||||||||||
Tax-exempt investment securities | ||||||||||||||
Total Interest Income | ||||||||||||||
Interest Expense | ||||||||||||||
Deposits | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | ||||||||||||||
Other borrowings | ||||||||||||||
Total Interest Expense | ||||||||||||||
Net Interest Income | ||||||||||||||
Provision (benefit) for credit losses | ( | |||||||||||||
Net Interest Income after Provision (Benefit) for Credit Losses | ||||||||||||||
Noninterest Income | ||||||||||||||
Service charges on deposit accounts | ||||||||||||||
Commissions and fees | ||||||||||||||
Income on bank owned life insurance | ||||||||||||||
Loss on equity securities | ( | ( | ||||||||||||
Gains on sales of loans held for sale | ||||||||||||||
Swap income | ||||||||||||||
Other income | ||||||||||||||
Total Noninterest Income | ||||||||||||||
Noninterest Expense | ||||||||||||||
Compensation and employee benefits | ||||||||||||||
Premises and equipment | ||||||||||||||
FDIC insurance expense | ||||||||||||||
Data processing expense | ||||||||||||||
Merger related expenses | ||||||||||||||
Other expenses | ||||||||||||||
Total Noninterest Expense | ||||||||||||||
Income before provision for income taxes | ||||||||||||||
Provision for income taxes | ||||||||||||||
Net Income | $ | $ | ||||||||||||
Per Share of Common Stock | ||||||||||||||
Basic earnings | $ | $ | ||||||||||||
Diluted earnings | $ | $ | ||||||||||||
Dividends paid | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Net Income | $ | $ | ||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized losses on securities available for sale | ( | ( | ||||||||||||
Amortization of gain on debt securities reclassified to held to maturity | ( | |||||||||||||
Unrealized gains on derivatives | ||||||||||||||
Other comprehensive loss | ( | ( | ||||||||||||
Total Comprehensive (Loss) Income | $ | ( | $ |
(in thousands, except per share data) | Common Stock | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||
January 1, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | ( | ||||||||||||||||||||||||
Stock based compensation | — | — | — | ||||||||||||||||||||||||||
Retirement of restricted stock | ( | — | — | — | ( | ||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||
Cash dividends on common stock of $ | — | ( | — | — | ( | ||||||||||||||||||||||||
March 31, 2021 | ( | ( | |||||||||||||||||||||||||||
January 1, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | ( | ||||||||||||||||||||||||
Issuance of stock for 1st Constitution acquisition | — | — | — | ||||||||||||||||||||||||||
Stock based compensation | — | — | — | ||||||||||||||||||||||||||
Retirement of restricted stock | ( | — | — | — | ( | ||||||||||||||||||||||||
Cash dividends on common stock of $ | — | ( | — | — | ( | ||||||||||||||||||||||||
March 31, 2022 | $ | $ | $ | ( | $ | ( | $ |
For the Three Months Ended March 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Net amortization of premiums, discounts and deferred loan fees and costs | ( | ||||||||||
Depreciation and amortization | |||||||||||
Amortization of intangible assets | |||||||||||
Amortization of operating lease right-of-use assets | |||||||||||
Provision (benefit) for credit losses | ( | ||||||||||
Loans originated for sale | ( | ( | |||||||||
Proceeds from sales of loans held for sale | |||||||||||
Loss on equity securities | |||||||||||
Income on bank owned life insurance | ( | ( | |||||||||
Gains on proceeds from bank owned life insurance policies | ( | ||||||||||
Gains on sales of loans held for sale | ( | ( | |||||||||
Gains on other real estate and other repossessed assets | ( | ||||||||||
Loss on sales of premises and equipment | |||||||||||
Stock-based compensation | |||||||||||
Excess tax deficiencies (benefits) | ( | ||||||||||
(Increase) decrease in other assets | ( | ||||||||||
Decrease in other liabilities | ( | ( | |||||||||
Net Cash Provided by Operating Activities | |||||||||||
Cash Flows from Investing Activities: | |||||||||||
Net cash acquired in acquisitions | |||||||||||
Proceeds from repayments and maturities of available for sale securities | |||||||||||
Proceeds from repayments and maturities of held to maturity securities | |||||||||||
Purchase of available for sale securities | ( | ( | |||||||||
Purchase of held to maturity securities | ( | ( | |||||||||
Purchase of equity securities | ( | ( | |||||||||
Death benefit proceeds from bank owned life insurance policy | |||||||||||
Proceeds from redemptions of Federal Home Loan Bank stock | |||||||||||
Purchases of Federal Home Loan Bank stock | ( | ( | |||||||||
Net increase in loans | ( | ( | |||||||||
Proceeds from sales of loans previously held for investment | |||||||||||
Proceeds from sales of other real estate and repossessed assets | |||||||||||
Proceeds from dispositions and sales of premises and equipment | |||||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Net Cash Provided by (Used in) Investing Activities | ( | ||||||||||
Cash Flows from Financing Activities: | |||||||||||
Net increase in deposits | |||||||||||
Decrease in federal funds purchased and securities sold under agreements to repurchase | ( | ( | |||||||||
Exercise of stock options | |||||||||||
Retirement of restricted stock | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net Cash Provided by Financing Activities | |||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ |
For the Three Months Ended March 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Supplemental schedule of non-cash investing and financing activities: | |||||||||||
Cash paid during the period for income taxes | $ | $ | |||||||||
Cash paid during the period for interest | |||||||||||
Transfer of loans to loans held for sale | |||||||||||
Right-of-use assets obtained in exchange for new lease liabilities | |||||||||||
Acquisitions: | |||||||||||
Non-cash assets acquired: | |||||||||||
Federal Home Loan Bank stock | |||||||||||
Investment securities available for sale | |||||||||||
Investment securities held to maturity | |||||||||||
Loans held for sale | |||||||||||
Loans | |||||||||||
Fixed Assets | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill and other intangible assets, net | |||||||||||
Bank owned life insurance | |||||||||||
Other assets | |||||||||||
Total non-cash assets acquired | |||||||||||
Liabilities assumed: | |||||||||||
Deposits | |||||||||||
Subordinated debt | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities assumed | |||||||||||
Common stock issued | $ | $ |
(in thousands) | |||||
Assets acquired: | |||||
Cash and cash equivalents | $ | ||||
Investment securities available for sale | |||||
Investment securities held to maturity | |||||
Federal Home Loan Bank stock | |||||
Loans held for sale | |||||
Loans | |||||
Premises and equipment | |||||
Right-of-use assets, operating lease | |||||
Goodwill | |||||
Other intangible assets | |||||
Bank owned life insurance | |||||
Accrued interest receivable and other assets | |||||
Total assets acquired | |||||
Liabilities assumed: | |||||
Deposits | ( | ||||
Subordinated debt | ( | ||||
Operating lease liabilities | ( | ||||
Other liabilities | ( | ||||
Total liabilities assumed | ( | ||||
Net assets acquired | $ |
Gross amortized cost basis at January 6, 2022 | $ | ||||
Interest rate fair value adjustment on all loans | |||||
Credit fair value adjustment on non-PCD loans | ( | ||||
Fair value of acquired loans at January 6, 2022 | |||||
Allowance for credit losses on PCD loans | ( | ||||
Fair value of acquired loans, net, as of January 6 2022 | $ |
(in thousands) | PCD Loans | ||||
Gross amortized cost basis at January 6, 2022 | $ | ||||
Interest component of expected cash flows (accretable difference) | ( | ||||
Allowance for credit losses on PCD loans | ( | ||||
Net PCD loans | $ |
(in thousands) | 1st Constitution Actual from acquisition to March 31, 2022 | Pro forma Quarter ended March 31, 2022 | Pro forma Quarter ended March 31, 2021 | ||||||||||||||
Net interest income | $ | $ | $ | ||||||||||||||
Provision (benefit) for credit losses | ( | ||||||||||||||||
Noninterest income | |||||||||||||||||
Noninterest expense | |||||||||||||||||
Net income | |||||||||||||||||
Earnings per share: | |||||||||||||||||
Fully diluted | $ | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(in thousands, except per share data) | 2022 | 2021 | ||||||||||||
Net income available to common shareholders | $ | $ | ||||||||||||
Less: earnings allocated to participating securities | ||||||||||||||
Net income allocated to common shareholders | $ | $ | ||||||||||||
Weighted average number of common shares outstanding - basic | ||||||||||||||
Share-based plans | ||||||||||||||
Weighted average number of common shares outstanding - diluted | ||||||||||||||
Basic earnings per share | $ | $ | ||||||||||||
Diluted earnings per share | $ | $ |
March 31, 2022 | ||||||||||||||||||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | ( | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | ( | |||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | ( | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations, multifamily | ( | |||||||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ( | ||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ |
December 31, 2021 | ||||||||||||||||||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | ( | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | ( | |||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | ( | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations, multifamily | ( | |||||||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ |
March 31, 2022 | ||||||||||||||||||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
U.S. government agencies | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | ( | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | ( | |||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | ( | |||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ( | ||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ |
December 31, 2021 | ||||||||||||||||||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
U.S. government agencies | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Mortgage-backed securities, residential | ( | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | ||||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | ( | |||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ( | ( | ||||||||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ |
Available for Sale | Held to Maturity | ||||||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | 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 | |||||||||||||||||||||||
Mortgage-backed and asset-backed securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
March 31, 2022 | Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | |||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | |||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations, multifamily | |||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||||||||||||||||||
U.S. government agencies | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | |||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
December 31, 2021 | Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | |||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | |||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations, multifamily | |||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations, multifamily | |||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
March 31, 2022 | AAA | AA | A | BBB | Not Rated | Total | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
U.S. government agencies | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | ||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | ||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
December 31, 2021 | AAA | AA | A | BBB | Not Rated | Total | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
U.S. government agencies | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | ||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | ||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(in thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Non-owner occupied commercial | $ | $ | ||||||||||||
Owner occupied commercial | ||||||||||||||
Multifamily | ||||||||||||||
Non-owner occupied residential | ||||||||||||||
Commercial, industrial and other | ||||||||||||||
Construction | ||||||||||||||
Equipment finance | ||||||||||||||
Residential mortgage | ||||||||||||||
Home equity and consumer | ||||||||||||||
Total | $ | $ |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Pre-2018 | Revolving Loans | Revolving to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Pre-2018 | Revolving Loans | Revolving to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Pre-2017 | Revolving Loans | Revolving to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Pre-2017 | Revolving Loans | Revolving to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | Past Due | |||||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days | 60 - 89 Days | Greater than 89 days | Total | Total Loans | ||||||||||||||||||||||||||||||||
Non-owner occupied commercial | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Owner occupied commercial | ||||||||||||||||||||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | ||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
December 31, 2021 | Past Due | |||||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days | 60 - 89 Days | Greater than 89 days | Total | Total Loans | ||||||||||||||||||||||||||||||||
Non-owner occupied commercial | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Owner occupied commercial | ||||||||||||||||||||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | ||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
March 31, 2022 | ||||||||||||||||||||||||||
(in thousands) | Non-accrual | Interest Income Recognized on Non-accrual Loans | Amortized Cost Basis of Loans > 89 days Past due but still accruing | Amortized Cost Basis of Non-accrual Loans without Related Allowance | ||||||||||||||||||||||
Non-owner occupied commercial | $ | $ | $ | $ | ||||||||||||||||||||||
Owner occupied commercial | ||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||
Commercial, industrial and other | ||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2021 | ||||||||||||||||||||||||||
(in thousands) | Non-accrual | Interest Income Recognized on Non-accrual Loans | Amortized Cost Basis of Loans > 89 days Past due but still accruing | Amortized Cost Basis of Non-accrual Loans without Related Allowance | ||||||||||||||||||||||
Non-owner occupied commercial | $ | $ | $ | $ | ||||||||||||||||||||||
Owner occupied commercial | ||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||
Commercial, industrial and other | ||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in thousands) | PCD Loans | ||||
Gross amortized cost basis | $ | ||||
Interest component of expected cash flows (accretable difference) | ( | ||||
Allowance for credit losses on PCD loans | ( | ||||
Net PCD loans | $ |
For the Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Balance at beginning of the period | $ | $ | ||||||||||||
Initial allowance for credit losses on PCD loans | ||||||||||||||
Charge-offs on PCD loans | ( | |||||||||||||
Charge-offs | ( | ( | ||||||||||||
Recoveries | ||||||||||||||
Net charge-offs | ( | ( | ||||||||||||
Provision (benefit) for credit loss - loans | ( | |||||||||||||
Balance at end of the period | $ | $ |
(in thousands) | Balance at 12/31/2021 | Initial allowance for credit losses on PCD loans | Charge-offs | Recoveries | Provision (Benefit) for Credit Loss | Balance at 3/31/2022 | ||||||||||||||||||||||||||||||||
Non-owner occupied commercial | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||
Owner occupied commercial | ( | |||||||||||||||||||||||||||||||||||||
Multifamily | ( | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | ( | |||||||||||||||||||||||||||||||||||||
Construction | ( | |||||||||||||||||||||||||||||||||||||
Equipment finance | ( | ( | ||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||
Consumer | ( | ( | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ |
(in thousands) | Balance at 12/31/2020 | Charge-offs | Recoveries | (Benefit) Provision for Credit Loss | Balance at 3/31/2021 | |||||||||||||||||||||||||||
Non owner occupied commercial | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
Owner occupied commercial | ( | |||||||||||||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||||
Non owner occupied residential | ( | ( | ||||||||||||||||||||||||||||||
Commercial, industrial and other | ( | ( | ||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Equipment finance | ( | ( | ||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||
Consumer | ( | ( | ||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ |
March 31, 2022 | Loans | Allowance for Credit Losses | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Individually evaluated for impairment | Collectively evaluated for impairment | Acquired with deteriorated credit quality | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Owner occupied commercial | ||||||||||||||||||||||||||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | ||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ |
December 31, 2021 | Loans | Allowance for Credit Losses | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Individually evaluated for impairment | Collectively evaluated for impairment | Acquired with deteriorated credit quality | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | |||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Owner occupied commercial | ||||||||||||||||||||||||||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | ||||||||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | ||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Operating lease cost | $ | $ | ||||||||||||
Short-term lease cost | ||||||||||||||
Variable lease cost | ||||||||||||||
Sublease income | $ | ( | $ | ( | ||||||||||
Net lease cost | $ | $ |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities |
(in thousands) | ||||||||
Within one year | $ | |||||||
After one year but within three years | ||||||||
After three years but within five years | ||||||||
After five years | ||||||||
Total undiscounted cash flows | ||||||||
Discount on cash flows | ( | |||||||
Total operating lease liabilities | $ |
(dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||
Noninterest-bearing demand | $ | % | $ | % | ||||||||||||||||||||||
Interest-bearing checking | % | % | ||||||||||||||||||||||||
Money market | % | % | ||||||||||||||||||||||||
Savings | % | % | ||||||||||||||||||||||||
Certificates of deposit $250 thousand and under | % | % | ||||||||||||||||||||||||
Certificates of deposit over $250 thousand | % | % | ||||||||||||||||||||||||
Total deposits | $ | % | $ | % |
Number of Shares | Weighted Average Price | ||||||||||
Outstanding, January 1, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Outstanding, March 31, 2022 | $ |
Number of Shares | Weighted Average Price | ||||||||||
Outstanding, January 1, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding, March 31, 2022 | $ |
For the Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Deposit-Related Fees and Charges | ||||||||||||||
Debit card interchange income | $ | $ | ||||||||||||
Overdraft charges | ||||||||||||||
ATM service charges | ||||||||||||||
Demand deposit fees and charges | ||||||||||||||
Savings service charges | ||||||||||||||
Total deposit-related fees and charges | ||||||||||||||
Commissions and fees | ||||||||||||||
Loan fees | ||||||||||||||
Wire transfer charges | ||||||||||||||
Investment services income | ||||||||||||||
Merchant fees | ||||||||||||||
Commissions from sales of checks | ||||||||||||||
Safe deposit income | ||||||||||||||
Other income | ||||||||||||||
Total commissions and fees | ||||||||||||||
Gains on sales of loans | ||||||||||||||
Other income | ||||||||||||||
Gains on customer swap transactions | ||||||||||||||
Title insurance income | ||||||||||||||
Other income | ||||||||||||||
Total other income | ||||||||||||||
Revenue not from contracts with customers | ||||||||||||||
Total Noninterest Income | $ | $ | ||||||||||||
Timing of Revenue Recognition: | ||||||||||||||
Products and services transferred at a point in time | ||||||||||||||
Products and services transferred over time | ||||||||||||||
Revenue not from contracts with customers | ||||||||||||||
Total Noninterest Income | $ | $ |
For the Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Consulting and advisory board fees | ||||||||||||||
ATM and debit card expense | ||||||||||||||
Telecommunications expense | ||||||||||||||
Marketing expense | ||||||||||||||
Core deposit intangible amortization | ||||||||||||||
Other operating expenses | ||||||||||||||
Total other operating expenses | $ | $ |
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
March 31, 2022 | March 31, 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | Before Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | Before Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | |||||||||||||||||||||||||||||
Net unrealized gains (losses) on available for sale securities: | |||||||||||||||||||||||||||||||||||
Net unrealized holding losses arising during period | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
Amortization of gain on debt securities reclassified to held to maturity from available for sale | ( | ( | |||||||||||||||||||||||||||||||||
Unrealized gains on derivatives | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( |
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||
(in thousands) | Unrealized Gains (Losses) on Available for Sale Securities | Amortization of Gain on Debt Securities Reclassified to Held to Maturity | Total | |||||||||||||||||
Beginning balance | $ | $ | $ | |||||||||||||||||
Net current period other comprehensive loss | ( | ( | ( | |||||||||||||||||
Ending balance | $ | ( | $ | $ | ( |
For the Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||
(in thousands) | Unrealized Gains (Losses) on Available for Sale Securities | Unrealized Gains (Losses) on Derivatives | Pension Items | Total | ||||||||||||||||||||||
Beginning balance | $ | $ | $ | ( | $ | |||||||||||||||||||||
Net current period other comprehensive (loss) income | ( | ( | ||||||||||||||||||||||||
Ending balance | $ | ( | $ | $ | ( | $ | ( |
March 31, 2022 | Notional Amount | Average Maturity (Years) | Weighted Average Fixed Rate | Weighted Average Variable Rate | Fair Value | |||||||||||||||||||||||||||
Classified in Other Assets: | ||||||||||||||||||||||||||||||||
3rd Party interest rate swaps | $ | % | 1 Mo. LIBOR + | $ | ||||||||||||||||||||||||||||
Customer interest rate swaps | % | 1 Mo. LIBOR + | ||||||||||||||||||||||||||||||
Classified in Other Liabilities: | ||||||||||||||||||||||||||||||||
Customer interest rate swaps | $ | % | 1 Mo. LIBOR + | $ | ( | |||||||||||||||||||||||||||
3rd Party interest rate swaps | % | 1 Mo. LIBOR + | ( | |||||||||||||||||||||||||||||
December 31, 2021 | Notional Amount | Average Maturity (Years) | Weighted Average Fixed Rate | Weighted Average Variable Rate | Fair Value | |||||||||||||||||||||||||||
Classified in Other Assets: | ||||||||||||||||||||||||||||||||
3rd Party interest rate swaps | $ | % | 1 Mo. LIBOR + | $ | ||||||||||||||||||||||||||||
Customer interest rate swaps | % | 1 Mo. LIBOR + | ||||||||||||||||||||||||||||||
Classified in Other Liabilities: | ||||||||||||||||||||||||||||||||
Customer interest rate swaps | $ | % | 1 Mo. LIBOR + | ( | ||||||||||||||||||||||||||||
3rd party interest rate swaps | % | 1 Mo. LIBOR + | ( | |||||||||||||||||||||||||||||
For the Year Ended | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 |
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investment securities, available for sale | |||||||||||||||||||||||
U.S. Treasury and government agencies | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-backed securities, residential | |||||||||||||||||||||||
Collateralized mortgage obligations, residential | |||||||||||||||||||||||
Mortgage-backed securities, multifamily | |||||||||||||||||||||||
Collateralized mortgage obligations, multifamily | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Total securities available for sale | |||||||||||||||||||||||
Equity securities, at fair value | |||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | |||||||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investment securities, available for sale | |||||||||||||||||||||||
U.S. Treasury and government agencies | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-backed securities, residential | |||||||||||||||||||||||
Collateralized mortgage obligations, residential | |||||||||||||||||||||||
Mortgage-backed securities, multifamily | |||||||||||||||||||||||
Collateralized mortgage obligations, multifamily | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Total securities available for sale | |||||||||||||||||||||||
Equity securities, at fair value | |||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
Total Liabilities | $ | $ | $ | $ |
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Total Fair Value | |||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Individually evaluated loans | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Individually evaluated loans | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2022 | 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) | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Investment securities, held to maturity | |||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Mortgage-backed securities, residential | |||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | |||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Total investment securities held to maturity, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal Home Loan Bank and other membership bank stocks | |||||||||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||||
Other borrowings | |||||||||||||||||||||||||||||
Subordinated debentures | |||||||||||||||||||||||||||||
December 31, 2021 | 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) | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Investment securities, held to maturity | |||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Mortgage-backed securities, residential | |||||||||||||||||||||||||||||
Collateralized mortgage obligations, residential | |||||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | |||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Total investment securities held to maturity | |||||||||||||||||||||||||||||
Federal Home Loan Bank and other membership bank stocks | |||||||||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||||
Other borrowings | |||||||||||||||||||||||||||||
Subordinated debentures |
For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans (1) | $ | 7,021,462 | $ | 67,809 | 3.92 | % | $ | 6,089,757 | $ | 58,778 | 3.91 | % | |||||||||||||||||||||||
Taxable investment securities and other | 1,674,562 | 6,709 | 1.60 | % | 881,425 | 3,981 | 1.81 | % | |||||||||||||||||||||||||||
Tax-exempt securities | 345,016 | 1,648 | 1.91 | % | 122,054 | 775 | 2.54 | % | |||||||||||||||||||||||||||
Federal funds sold (2) | 463,247 | 182 | 0.16 | % | 136,900 | 37 | 0.11 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 9,504,287 | 76,348 | 3.25 | % | 7,230,136 | 63,571 | 3.56 | % | |||||||||||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||
Allowance for credit losses | (70,032) | (72,348) | |||||||||||||||||||||||||||||||||
Other assets | 704,182 | 546,815 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 10,138,437 | $ | 7,704,603 | |||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Savings accounts | $ | 1,131,359 | $ | 484 | 0.17 | % | $ | 604,931 | $ | 78 | 0.05 | % | |||||||||||||||||||||||
Interest-bearing transaction accounts | 4,399,531 | 2,665 | 0.25 | % | 3,388,027 | 2,866 | 0.34 | % | |||||||||||||||||||||||||||
Time deposits | 879,427 | 890 | 0.40 | % | 1,044,915 | 2,179 | 0.83 | % | |||||||||||||||||||||||||||
Federal funds purchased | — | — | — | % | 8,889 | 8 | 0.36 | % | |||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 104,634 | 20 | 0.08 | % | 64,603 | 15 | 0.09 | % | |||||||||||||||||||||||||||
Long-term borrowings | 217,983 | 1,555 | 2.85 | % | 143,261 | 1,534 | 4.28 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,732,934 | 5,614 | 0.34 | % | 5,254,626 | 6,680 | 0.51 | % | |||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | 2,194,038 | 1,545,968 | |||||||||||||||||||||||||||||||||
Other liabilities | 115,552 | 133,754 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 1,095,913 | 770,255 | |||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 10,138,437 | $ | 7,704,603 | |||||||||||||||||||||||||||||||
Net interest income/spread | 70,734 | 2.92 | % | 56,891 | 3.05 | % | |||||||||||||||||||||||||||||
Tax equivalent basis adjustment | 346 | 163 | |||||||||||||||||||||||||||||||||
Net Interest Income | $ | 70,388 | $ | 56,728 | |||||||||||||||||||||||||||||||
Net interest margin (3) | 3.02 | % | 3.19 | % |
For the Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2022 | 2021 | |||||||||
Total noninterest expense | $ | 49,959 | $ | 33,903 | |||||||
Amortization of core deposit intangibles | (596) | (226) | |||||||||
Merger-related expenses | (4,585) | — | |||||||||
Noninterest expense, as adjusted | $ | 44,778 | $ | 33,677 | |||||||
Net interest income | $ | 70,388 | $ | 56,728 | |||||||
Noninterest income | 6,780 | 5,759 | |||||||||
Total revenue | 77,168 | 62,487 | |||||||||
Tax-equivalent adjustment on municipal securities | 346 | 163 | |||||||||
Total revenue, as adjusted | $ | 77,514 | $ | 62,650 | |||||||
Efficiency ratio | 57.77 | % | 53.75 | % |
As of and for the Three Months Ended March 31, | As of and for the Year Ended | |||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | December 31, 2021 | |||||||||||||||||
Allowance for credit losses on loans to total loans outstanding | 0.94 | % | 1.10 | % | 0.97 | % | ||||||||||||||
Allowance for credit losses on loans | $ | 67,112 | $ | 67,252 | $ | 58,047 | ||||||||||||||
Total loans outstanding | 7,137,793 | 6,108,946 | 5,976,148 | |||||||||||||||||
Non-accrual loans to total loans outstanding | 0.28 | % | 0.51 | % | 0.28 | % | ||||||||||||||
Non-accrual loans | $ | 19,740 | $ | 31,125 | $ | 16,981 | ||||||||||||||
Total loans outstanding | 7,137,793 | 6,108,946 | 5,976,148 | |||||||||||||||||
Allowance for credit losses on loans to non-accrual loans | 339.98 | % | 216.07 | % | 341.83 | % | ||||||||||||||
Allowance for credit losses on loans | $ | 67,112 | $ | 67,252 | $ | 58,047 | ||||||||||||||
Non-accrual loans | 19,740 | 31,125 | 16,981 |
As of and for the Three Months Ended March 31, | As of and for the Year Ended | |||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | December 31, 2021 | |||||||||||||||||
Net charge-offs (recoveries) during the period to average loans outstanding: | ||||||||||||||||||||
Non-owner occupied commercial | — | % | 0.10 | % | 0.10 | % | ||||||||||||||
Net charge-offs during the period | $ | 4 | $ | 592 | $ | 2,246 | ||||||||||||||
Average amount outstanding | 2,751,934 | 2,396,050 | 2,347,575 | |||||||||||||||||
Owner occupied commercial | 0.01 | % | 0.03 | % | — | % | ||||||||||||||
Net charge-offs (recoveries) during the period | $ | 24 | $ | 70 | $ | (20) | ||||||||||||||
Average amount outstanding | 1,012,050 | 843,322 | 870,727 | |||||||||||||||||
Multifamily | — | % | — | % | — | % | ||||||||||||||
Net charge-offs during the period | $ | — | $ | — | $ | 28 | ||||||||||||||
Average amount outstanding | 1,028,108 | 829,263 | 889,456 | |||||||||||||||||
Non owner occupied residential | (0.03) | % | 0.41 | % | 0.03 | % | ||||||||||||||
Net (recoveries) charge-offs during the period | $ | (14) | $ | 206 | $ | 58 | ||||||||||||||
Average amount outstanding | 200,107 | 199,558 | 188,166 | |||||||||||||||||
Commercial, industrial and other | 0.46 | % | 0.12 | % | (0.08) | % | ||||||||||||||
Net charge-offs (recoveries) during the period | $ | 778 | $ | 221 | $ | (487) | ||||||||||||||
Average amount outstanding | 675,920 | 740,237 | 593,979 | |||||||||||||||||
Construction | 6.60 | % | (0.03) | % | (0.01) | % | ||||||||||||||
Net charge-offs (recoveries) during the period | $ | 6,804 | $ | (25) | $ | (21) | ||||||||||||||
Average amount outstanding | 412,520 | 286,799 | 312,107 | |||||||||||||||||
Equipment finance | 0.27 | % | 0.28 | % | 0.24 | % | ||||||||||||||
Net charge-offs during the period | $ | 82 | $ | 83 | $ | 285 | ||||||||||||||
Average amount outstanding | 123,428 | 118,224 | 120,252 | |||||||||||||||||
Residential mortgage | (0.04) | % | (0.06) | % | (0.02) | % | ||||||||||||||
Net recoveries during the period | $ | (48) | $ | (58) | $ | (64) | ||||||||||||||
Average amount outstanding | 522,526 | 381,403 | 398,141 | |||||||||||||||||
Consumer | 0.02 | % | (0.03) | % | 0.05 | % | ||||||||||||||
Net charge-offs (recoveries) during the period | $ | 12 | $ | (25) | $ | 137 | ||||||||||||||
Average amount outstanding | 289,551 | 293,927 | 281,896 | |||||||||||||||||
Total loans | 0.44 | % | 0.07 | % | 0.04 | % | ||||||||||||||
Net charge-offs during the period | $ | 7,642 | $ | 1,064 | $ | 2,162 | ||||||||||||||
Average amount outstanding | 7,016,144 | 6,088,783 | 6,002,299 |
(in thousands) | Total | Within One Year | After One But Within Three Years | After Three But Within Five Years | After Five Years | ||||||||||||||||||||||||
Minimum annual rentals on noncancellable operating leases | $ | 35,013 | $ | 3,721 | $ | 8,865 | $ | 6,236 | $ | 16,191 | |||||||||||||||||||
Benefit plan commitments | 4,421 | 422 | 792 | 745 | 2,462 | ||||||||||||||||||||||||
Remaining contractual maturities of time deposits | 846,204 | 705,684 | 115,562 | 24,958 | — | ||||||||||||||||||||||||
Subordinated debentures | 193,904 | — | — | — | 193,904 | ||||||||||||||||||||||||
Loan commitments | 1,709,181 | 1,264,286 | 225,816 | 15,659 | 203,420 | ||||||||||||||||||||||||
Other borrowings | 25,000 | — | — | 25,000 | — | ||||||||||||||||||||||||
Interest on other borrowings (1) | 60,577 | 6,022 | 12,039 | 11,659 | 30,857 | ||||||||||||||||||||||||
Standby letters of credit | 20,667 | 19,050 | 1,617 | — | — | ||||||||||||||||||||||||
Total | $ | 2,894,967 | $ | 1,999,185 | $ | 364,691 | $ | 84,257 | $ | 446,834 |
Tier 1 Capital to Total Average Assets Ratio | Common Equity Tier 1 to Risk-Weighted Assets Ratio | Tier 1 Capital to Risk- Weighted Assets Ratio | Total Capital to Risk- Weighted Assets Ratio | ||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
The Company | 8.97 | % | 8.51 | % | 10.73 | % | 10.67 | % | 11.34 | % | 11.15 | % | 14.03 | % | 14.48 | % | |||||||||||||||||||||||||||||||
Lakeland Bank | 9.92 | % | 9.70 | % | 12.54 | % | 12.71 | % | 12.54 | % | 12.71 | % | 13.38 | % | 13.67 | % | |||||||||||||||||||||||||||||||
Required capital ratios including conservation buffer | 4.00 | % | 4.00 | % | 7.00 | % | 7.00 | % | 8.50 | % | 8.50 | % | 10.50 | % | 10.50 | % | |||||||||||||||||||||||||||||||
“Well capitalized” institution under FDIC Regulations | 5.00 | % | 5.00% | 6.50 | % | 6.50% | 8.00 | % | 8.00% | 10.00 | % | 10.00% |
(dollars in thousands, except per share amounts) | March 31, 2022 | December 31, 2021 | |||||||||
Calculation of Tangible Book Value per Common Share | |||||||||||
Total common stockholders’ equity at end of period - GAAP | $ | 1,089,282 | $ | 827,014 | |||||||
Less: | |||||||||||
Goodwill | 271,829 | 156,277 | |||||||||
Other identifiable intangible assets, net | 10,842 | 2,420 | |||||||||
Total tangible common stockholders’ equity at end of period - Non-GAAP | $ | 806,611 | $ | 668,317 | |||||||
Shares outstanding at end of period | 64,780 | 50,606 | |||||||||
Book value per share - GAAP | $ | 16.82 | $ | 16.34 | |||||||
Tangible book value per share - Non-GAAP | $ | 12.45 | $ | 13.21 | |||||||
Calculation of Tangible Common Equity to Tangible Assets | |||||||||||
Total tangible common stockholders’ equity at end of period - Non-GAAP | $ | 806,611 | $ | 668,317 | |||||||
Total assets at end of period | $ | 10,275,233 | $ | 8,198,056 | |||||||
Less: | |||||||||||
Goodwill | 271,829 | 156,277 | |||||||||
Other identifiable intangible assets, net | 10,842 | 2,420 | |||||||||
Total tangible assets at end of period - Non-GAAP | $ | 9,992,562 | $ | 8,039,359 | |||||||
Common equity to assets - GAAP | 10.60 | % | 10.09 | % | |||||||
Tangible common equity to tangible assets - Non-GAAP | 8.07 | % | 8.31 | % |
For the Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2022 | 2021 | |||||||||
Calculation of Return on Average Tangible Common Equity | |||||||||||
Net income - GAAP | $ | 15,929 | $ | 23,175 | |||||||
Total average common stockholders’ equity | $ | 1,095,913 | $ | 770,255 | |||||||
Less: | |||||||||||
Average goodwill | 265,409 | 156,277 | |||||||||
Average other identifiable intangible assets, net | 10,851 | 3,192 | |||||||||
Total average tangible common stockholders’ equity - Non-GAAP | $ | 819,653 | $ | 610,786 | |||||||
Return on average common stockholders’ equity - GAAP | 5.89 | % | 12.20 | % | |||||||
Return on average tangible common stockholders’ equity - Non-GAAP | 7.88 | % | 15.39 | % |
For the Three Months Ended March 31, | |||||||||||
(Dollars in thousands, except per share amounts) | 2022 | 2021 | |||||||||
Net income - GAAP | $ | 15,929 | $ | 23,175 | |||||||
NON-ROUTINE TRANSACTIONS, NET OF TAX | |||||||||||
Tax deductible merger-related expenses | 2,402 | — | |||||||||
Non-tax deductible merger-related expenses | 1,149 | — | |||||||||
Net effect of non-routine transactions | $ | 3,551 | $ | — | |||||||
Net income available to common shareholders excluding non-routine transactions | $ | 19,480 | $ | 23,175 | |||||||
Less: Earnings allocated to participating securities | 164 | 216 | |||||||||
Net Income, excluding non-routine transactions | $ | 19,316 | $ | 22,959 | |||||||
Weighted average shares - Basic | 63,961 | 50,576 | |||||||||
Weighted average shares - Diluted | 64,238 | 50,780 | |||||||||
Basic earnings per share - GAAP | $ | 0.25 | $ | 0.45 | |||||||
Diluted earnings per share - GAAP | $ | 0.25 | $ | 0.45 | |||||||
Basic earnings per share, adjusted for non-routine transactions | $ | 0.30 | $ | 0.45 | |||||||
Diluted earnings per share, adjusted for non-routine transactions (Core EPS) | $ | 0.30 | $ | 0.45 | |||||||
Return on average assets - GAAP | 0.64 | % | 1.22 | % | |||||||
Return on average assets, adjusted for non-routine transactions | 0.78 | % | 1.22 | % | |||||||
Return on average common stockholders' equity - GAAP | 5.89 | % | 12.20 | % | |||||||
Return on average common stockholders' equity, adjusted for non-routine transactions | 7.21 | % | 12.20 | % | |||||||
Return on average tangible common stockholders' equity - Non-GAAP | 7.88 | % | 15.39 | % | |||||||
Return on average tangible common stockholders' equity - Non-GAAP, adjusted for non-routine transactions | 9.64 | % | 15.39 | % |
Changes in Interest Rates | ||||||||
Rate Ramp | +200 bp | |||||||
Asset/Liability Policy limit | (5.0) | % | ||||||
March 31, 2022 | (0.1) | % | ||||||
December 31, 2021 | (0.9) | % |
Changes in Interest Rates | ||||||||||||||||||||||||||
Rate Shock | +400bp | +300 bp | +200 bp | +100 bp | ||||||||||||||||||||||
Asset/Liability policy limit | (25.0) | % | (20.0) | % | (15.0) | % | (10.0) | % | ||||||||||||||||||
March 31, 2022 | 3.1 | % | 2.2 | % | 1.2 | % | 0.6 | % | ||||||||||||||||||
December 31, 2021 | (1.2) | % | (0.9) | % | (0.7) | % | (0.5) | % |
Changes in Interest Rates | ||||||||||||||||||||||||||||||||
Rate Shock | +400bp | +300 bp | +200 bp | +100 bp | -100 bp | |||||||||||||||||||||||||||
Asset/Liability policy limit | (35.0) | % | (25.0) | % | (20.0) | % | (10.0) | % | (10.0) | % | ||||||||||||||||||||||
March 31, 2022 | (8.7) | % | (6.3) | % | (4.0) | % | (1.5) | % | (5.6) | % | ||||||||||||||||||||||
December 31, 2021 | (14.8) | % | (10.9) | % | (7.0) | % | (2.7) | % | (7.0) | % |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares (or Units) Purchased (1) | Weighted Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
January 1 to January 31, 2022 | — | $ | — | — | 2,393,423 | |||||||||||||||||||||
February 1 to February 28, 2022 | — | — | — | 2,393,423 | ||||||||||||||||||||||
March 1 to March 31, 2022 | — | — | — | 2,393,423 | ||||||||||||||||||||||
Item 3. Defaults Upon Senior Securities | Not Applicable |
Item 4. Mine Safety Disclosures | Not Applicable |
Item 5. Other Information | Not applicable |
2.1 | |||||
4.1 | |||||
4.2 | |||||
4.3 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
101.INS | Inline 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 | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101) |
Lakeland Bancorp, Inc. | ||
(Registrant) | ||
/s/ Thomas J. Shara | ||
Thomas J. Shara | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
/s/ Thomas F. Splaine | ||
Thomas F. Splaine | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
/s/ Thomas J. Shara | |||||
Thomas J. Shara | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ Thomas F. Splaine, Jr. | |||||
Thomas F. Splaine, Jr. | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
/s/ Thomas J. Shara | |||||
Thomas J. Shara | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
/s/ Thomas F. Splaine, Jr. | |||||
Thomas F. Splaine, Jr. | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 1,267 | $ 83 |
Fair Value | 859,928 | 815,211 |
Allowance for credit loss | $ 199 | $ 181 |
Common stock, par value (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 64,910,643 | 50,737,400 |
Common stock, shares outstanding (in shares) | 64,779,608 | 50,606,365 |
Treasury shares (in shares) | 131,035 | 131,035 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 15,929 | $ 23,175 |
Other comprehensive income (loss), net of tax: | ||
Unrealized losses on securities available for sale | (30,965) | (13,135) |
Amortization of gain on debt securities reclassified to held to maturity | (135) | 0 |
Unrealized gains on derivatives | 0 | 47 |
Other comprehensive loss, net of tax | (31,100) | (13,088) |
Total Comprehensive (Loss) Income | $ (15,171) | $ 10,087 |
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Statement of Stockholders' Equity [Abstract] | ||
Common stock, dividends price per share (in usd per share) | $ 0.135 | $ 0.125 |
Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation This quarterly report presents the consolidated financial statements of Lakeland Bancorp, Inc. and its subsidiaries, including Lakeland Bank (“Lakeland”) and Lakeland’s wholly owned subsidiaries (collectively, the “Company”). The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles (“U.S. GAAP”) and predominant practices within the banking industry. The Company’s unaudited interim financial statements reflect all adjustments, such as normal recurring accruals that are in the opinion of management, necessary for the fair presentation of the results of the interim periods. The results of operations for the three months ended March 31, 2022 do not necessarily indicate the results that the Company will achieve for all of 2022. Certain information and footnote disclosures required under U.S. GAAP have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission. These unaudited interim financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions On January 6, 2022, the Company completed its acquisition of 1st Constitution Bancorp ("1st Constitution"), a bank holding company headquartered in Cranbury, New Jersey. 1st Constitution was the parent of 1st Constitution Bank, which operated 25 branches in Bergen, Mercer, Middlesex, Monmouth, Ocean and Somerset Counties in New Jersey. This acquisition enabled the Company to establish a presence in Mercer, Middlesex and Monmouth Counties and broaden its presence in the other counties. Effective as of the close of business on January 6, 2022, 1st Constitution merged into the Company and 1st Constitution Bank merged into Lakeland. Pursuant to the merger agreement, the shareholders of 1st Constitution received for each outstanding share of 1st Constitution common stock that they owned at the effective time of the merger, 1.3577 shares of Lakeland Bancorp, Inc. common stock. The Company issued 14,020,495 shares of its common stock in the merger. Outstanding 1st Constitution stock options were paid out in cash at the difference between $25.55 and an average strike price of $15.95 for a total cash payment of $559,000. The acquisition was accounted for under the acquisition method of accounting and accordingly, the assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values as of the acquisition date. 1st Constitution's assets were recorded at their preliminary estimated fair values as of January 6, 2022 and 1st Constitution's results of operations have been included in the Company's Consolidated Statements of Income from that date forward. The assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values based on management's best estimates using information available at the date of the acquisition, including the use of a third-party valuation specialist. The calculation of goodwill is subject to change for up to one year after the closing date of the transaction as additional information relative to closing date estimates and uncertainties becomes available. As the Company finalizes its analysis of these assets and liabilities, there may be adjustments to the recorded carrying values. The Goodwill is not deductible for tax purposes. The following table summarizes the estimated fair value of the acquired assets and liabilities assumed at the date of acquisition for 1st Constitution.
Loans acquired in the 1st Constitution acquisition were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310. There was no carryover related allowance for loan losses. The fair values of loans acquired from 1st Constitution were estimated using the discounted cash flow method based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses and the rate of 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, maturity of the loans, servicing costs, and a required return on capital; the monthly principal and interest cash flows were discounted to present value and summed to arrive at the calculated value of loans. For loans acquired without evidence of more-than-insignificant deterioration in credit quality since origination, the Company prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into pools based on similar characteristics, such as loan type, fixed or adjustable interest rates, payment type, index rate and caps/floors, and non-accrual status. The loans were valued at the sub-pool level and were pooled at the summary level based on loan type. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these market rates was used as the fair value interest rate that a market participant would utilize. Loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated ("PCD") loans. The Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; and (4) delinquency status. 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 loan losses was calculated using management's best estimate of projected losses over the remaining life of the loans, in accordance with ASC 326-20. This represents the portion of loan balances that has been deemed uncollectible based on the Company's expectation of future cash flows for the PCD loans. For loans that were put in collection status immediately, Management made a best estimate of the loan's fair value based on analysis of the credit and our lien position. For all other loans, the fair value was determined using discounted cash flows as described above for non-PCD loans. The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired (in thousands):
The following is a summary of the PCD loans acquired in the 1st Constitution acquisition as of the closing date.
The Company acquired 25 branches through the 1st Constitution merger, seven of which were owned premises. The fair value of the properties acquired was derived by valuations prepared by an independent third party using the sales comparison approach to value the property as improved. As part of the 1st Constitution acquisition, the Company added 17 lease obligations. The Company recorded a $13.0 million right of use asset and lease liability for these lease obligations. The core deposit intangible totaled $9.0 million and is being amortized over its estimated useful life of approximately ten years using an accelerated method. The goodwill will be evaluated annually for impairment. The goodwill is not deductible for tax purposes. The fair values of deposit liabilities with no stated maturities such as checking, money market and savings accounts, were assumed to equal the carrying amounts since these deposits are payable on demand. The fair values of certificates of deposit represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit. Direct costs related to the acquisition were expensed as incurred. The Company incurred $4.6 million merger-related expenses during the first quarter of 2022 which have been separately stated in the Company's Consolidated Statements of Income. There were no merger-related expenses in the first quarter of 2021. Supplemental Pro Forma Financial Information The following table presents financial information regarding the former 1st Constitution operations included in the Consolidated Statements of Income from the date of the acquisition (January 6, 2022) through March 31, 2022. In addition the table provides condensed pro forma financial information assuming that the 1st Constitution acquisition had been completed as of January 1, 2022 for the quarters ended March 31, 2021 and 2022. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisitions occurred as of the beginning of the periods presented, nor is it indicative of future results. The pro forma information does not reflect management's estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of 1st Constitution's operations. The pro forma information reflects adjustments related to certain purchase accounting fair value adjustments, amortization of core deposit and other intangibles, and related income tax effects.
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Earnings Per Share |
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Earnings Per Share | Earnings Per Share The following schedule shows the Company’s earnings per share calculations for the periods presented:
There were no antidilutive options to purchase common stock excluded from the computation for the three months ended March 31, 2022 and 2021.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, allowance for credit losses and the fair value of the Company's available for sale securities are as follows:
The amortized cost, gross unrealized gains and losses, allowance for credit losses and the fair value of the Company's held to maturity investment securities are as follows:
During the third quarter of 2021, the Company transferred $494.2 million of previously designated available for sale securities to a held to maturity designation at estimated fair value. The reclassification for the period ended September 30, 2021 was permitted as the Company has appropriately determined the ability and intent to hold these securities as an investment until maturity or call. The securities transferred had an unrealized net gain of $3.8 million at the time of transfer, which is reflected, net of taxes, in accumulated other comprehensive income on the consolidated balance sheets. Subsequent amortization will be recognized over the life of the securities. The Company recorded net amortization of $135,000 during the first quarter of 2022. The following table lists contractual maturities of investment securities classified as available for sale and held to maturity as of March 31, 2022. Mortgage-backed and asset-backed securities are not shown by maturity because expected maturities may differ from contractual maturities due to underlying loan prepayments of the issuer. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
For the three months ended March 31, 2022 and 2021, there were no sales of available for sale securities. Gains or losses on sales of securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method. Securities with a carrying value of approximately $1.08 billion and $1.04 billion at March 31, 2022 and December 31, 2021, respectively, were pledged to secure public deposits and for other purposes required by applicable laws and regulations. The following tables indicate the length of time individual securities have been in a continuous unrealized loss position for the periods presented:
For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss exists and an allowance is created, limited by the amount that the fair value is less than the amortized cost basis. For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and 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 and, therefore, the expectation of non-payment is zero. A range of historical losses method is utilized in estimating the net amount expected to be collected for mortgage-backed securities, collateralized mortgage obligations and obligations of states and political subdivisions. The gross unrealized losses reported for residential mortgage-backed securities relate to investment securities issued by U.S. government sponsored entities such as Federal National Mortgage Association and Federal Home Loan Mortgage Corporation and U.S. government agencies such as Government National Mortgage Association. The total gross unrealized losses, shown in the tables above, were primarily attributable to changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. Credit Quality Indicators Credit ratings, which are updated monthly, are a key measure for estimating the probability of a bond's default and for monitoring credit quality on an on-going basis. For bonds other than U.S. Treasuries and bonds issued or guaranteed by U.S. government agencies, credit ratings issued by one or more nationally recognized statistical rating organizations are considered in conjunction with an assessment by the Company's management. Investment grade reflects a credit quality of BBB or above. The tables below indicate the credit profile of the Company's held to maturity investment securities at amortized cost:
Equity securities at fair value The Company has an equity securities portfolio which consists of investments in Community Reinvestment funds. The fair value of the equity portfolio was $16.9 million and $17.4 million at March 31, 2022 and December 31, 2021, respectively. For the three months ended March 31, 2022, the Company recorded no sales of equity securities or Community Reinvestment funds. The Company recorded fair value losses on equity securities of $485,000 and $144,000 for the first quarter of 2022 and 2021, respectively. Fair value gain or loss on equity securities are recorded in noninterest income. As of March 31, 2022, the Company's investments in Community Reinvestment funds include $6.8 million that are primarily invested in community development loans that are guaranteed by the Small Business Administration (“SBA”). Because the funds are primarily guaranteed by the federal government, there are minimal changes in fair value between accounting periods. These funds can be redeemed with 60 days' notice at the net asset value less unpaid management fees with the approval of the fund manager. As of March 31, 2022, the net amortized cost equaled the fair value of the investment. There are no unfunded commitments related to these investments. The Community Reinvestment funds also include $10.1 million of investment in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development as of March 31, 2022. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to these investments.
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Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The following sets forth the composition of the Company’s loan portfolio:
Loans are recorded at amortized cost, which includes principal balance and net deferred loan fees and costs. The Company elected to exclude accrued interest receivable from amortized cost. Accrued interest receivable is reported separately in the Consolidated Balance Sheets and totaled $17.1 million at March 31, 2022 and $13.9 million at December 31, 2021. Loan origination fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income as an adjustment of yield. Net deferred loan fees are included in loans by respective segment and total $4.1 million at March 31, 2022 and $5.8 million at December 31, 2021. At March 31, 2022 and December 31, 2021, Small Business Association ("SBA") Paycheck Protection Program ("PPP") loans totaled $36.8 million and $56.6 million, respectively and are included in the balance of commercial, industrial and other loans. Consumer loans included overdraft deposit balances of $3.0 million and $184,000, at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022 and December 31, 2021, the Company had $2.69 billion and $2.30 billion of loans pledged for potential borrowings at the Federal Home Loan Bank of New York ("FHLB"). The Company transferred approximately $10.1 million of commercial and residential mortgage loans from the loan portfolio to loans held for sale during the three months ended March 31, 2021 and subsequently sold these loans. Excluding the loan transfers, there were no other sales of loans from the held for investment portfolio during the three months ended March 31, 2022 and 2021. Credit Quality Indicators Management closely and continually monitors the quality of its loans and assesses the quantitative and qualitative risks arising from the credit quality of its loans. Lakeland assigns a credit risk rating to all loans and loan commitments. The credit risk rating system has been developed by management to provide a methodology to be used by loan officers, department heads and senior management in identifying various levels of credit risk that exist within the loan portfolios. The risk rating system assists senior management in evaluating the loan portfolio and analyzing trends. In assigning risk ratings, management considers, among other things, the borrower’s ability to service the debt based on relevant information such as current financial information, historical payment experience, credit documentation, public information and current economic conditions. Management categorizes loans and commitments into the following risk ratings: Pass: "Pass" assets are well protected by the current net worth and paying capacity of the obligor or guarantors, if any, or by the fair value of any underlying collateral. Watch: "Watch" assets require more than the usual amount of monitoring due to declining earnings, strained cash flow, increasing leverage and/or weakening market. These borrowers generally have limited additional debt capacity and modest coverage and average or below average asset quality, margins and market share. Any residential or consumer loan currently on deferment in accordance with the Coronavirus Aid, Relief and Economic Security ("CARES") Act or the interagency statement issued by bank regulatory agencies has been classified by management as watch or worse. Special Mention: "Special mention" assets exhibit identifiable credit weakness, which if not checked or corrected could weaken the loan quality or inadequately protect the bank’s credit position at some future date. Substandard: "Substandard" assets are inadequately protected by the current sound worth and paying capacity of the obligors or of the collateral pledged, if any. A substandard loan has a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. Doubtful: "Doubtful" assets that exhibit all of the weaknesses inherent in substandard loans, but have the added characteristics that the weaknesses make collection or liquidation in full improbable on the basis of existing facts. Loss: “Loss” is a rating for loans or portions of loans that are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. The following table presents the risk category of loans by class of loan and vintage as of March 31, 2022.
The following table presents the risk category of loans by class of loan and vintage as of December 31, 2021.
Loans are considered past due if required principal and interest payments have not been received as of the date such payments were contractually due. A loan is generally considered non-performing when it is placed on non-accrual status. A loan is generally placed on non-accrual status when it becomes 90 days past due if such loan has been identified as presenting uncertainty with respect to the collectability of interest and principal. A loan past due 90 days or more may remain on accruing status if such loan is both well secured and in the process of collection. In the absence of other intervening factors, loans granted payment deferrals related to COVID-19 are not reported as past due or placed on non-accrual status provided the borrowers have met the criteria in the CARES Act or otherwise have met the criteria included in an interagency statement issued by bank regulatory agencies. The following tables present the payment status of the recorded investment in past due loans as of the periods noted, by class of loans.
The following tables present information on non-accrual loans at March 31, 2022 and December 31, 2021:
At March 31, 2022, there were no loans that were past due more than 89 days and still accruing and at December 31, 2021, one loan with a recorded investment of $1,000 was past due more than 89 days and still accruing. The Company had $2.1 million and $930,000 in residential mortgages and consumer home equity loans included in total non-accrual loans that were in the process of foreclosure at March 31, 2022 and December 31, 2021, respectively. Purchased Credit Deteriorated Loans The following summarizes the PCD loans acquired in the 1st Constitution acquisition as of the closing date, January 6, 2022.
At March 31, 2022, PCD loans acquired from 1st Constitution totaled $112.9 million. Troubled Debt Restructurings Loans are classified as troubled debt restructured loans ("TDR") in cases where borrowers experience financial difficulties and Lakeland makes certain concessionary modifications to contractual terms. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, a moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate of a new loan with similar risk. The CARES Act provided relief from TDR classification for certain loan modifications related to the COVID-19 pandemic beginning March 1, 2020 through the earlier of 60 days after the end of the pandemic or December 31, 2020. Additionally, banking regulatory agencies issued interagency guidance that COVID-19 related short-term modifications (i.e., six months or less) granted to borrowers that were current as of the loan modification program implementation date do not need to be considered TDRs. The Consolidated Appropriations Act, 2021 (the "CAA"), which was signed into law on December 27, 2020, extended this guidance to modifications made until the earlier of January 1, 2022 or 60 days after the end of the COVID-19 national emergency. The Company elected this provision of the CARES Act and excluded modified loans that met the required guidelines for relief from its TDR classification. At March 31, 2022, no loans were on COVID-related deferrals as the remaining 90-day loan deferments expired and borrowers began paying their pre-deferral loan payments in the first quarter of 2021. For most commercial loans, borrowers are paying their pre-deferral loan payments plus an additional monthly amount to catch up on the payments that were deferred. None of these modifications were considered TDRs. At March 31, 2022 and December 31, 2021, TDRs totaled $3.4 million and $3.5 million, respectively. Accruing TDRs totaled $3.3 million and non-accrual TDRs totaled $127,000 at March 31, 2022. Accruing TDRs and non-accrual TDRs totaled $3.3 million and $127,000, respectively, at December 31, 2021. There were no loans that were restructured during the three months ended March 31, 2022 and 2021 that met the definition of a TDR. There were no restructured loans that subsequently defaulted in the three months ended March 31, 2022 and 2021.
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Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | Allowance for Credit Losses The Company measures expected credit losses for financial assets measured at amortized cost, including loans, investments and certain off-balance-sheet credit exposures in accordance with ASU 2016-13. See Note 1 - Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for a description of the Company's methodology. Under the standard, the Company's methodology for determining the allowance for credit losses on loans is based upon key assumptions, including the lookback periods, historic net charge-off factors, economic forecasts, reversion periods, prepayments and qualitative adjustments. The allowance is measured on a collective, or pool, basis when similar risk characteristics exist. Loans that do not share common risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. At March 31, 2022, loans totaling $7.01 billion were evaluated collectively and the allowance on these balances totaled $59.1 million and loans evaluated on an individual basis totaled $132.0 million with the specific allocations of the allowance for credit losses totaling $8.0 million. Loans evaluated on an individual basis include $114.3 million in PCD loans, which had a specific allowance for credit losses of $4.6 million. The Company made the election to exclude accrued interest receivable from the estimate of credit losses. Allowance for Credit Losses - Loans The allowance for credit losses on loans is summarized in the following table:
The provision for credit losses on loans for the three months ended March 31, 2022, was predominantly due to the provision for the 1st Constitution's acquired non-purchased credit deteriorated loans, while the benefit for credit losses for the three months ended March 31, 2021, was largely due to an improvement in economic conditions. Charge-offs in the first quarter of 2022 include $7.6 million in charge-offs on 1st Constitution's acquired PCD loans. Non-performing loans totaling $10.1 million were sold during the first quarter of 2021 resulting in net charge-offs of $1.1 million. The following tables detail activity in the allowance for credit losses on loans by portfolio segment for the three months ended March 31, 2022 and 2021:
The following tables present the recorded investment in loans by portfolio segment and the related allowance for credit losses at March 31, 2022 and December 31, 2021:
Allowance for Credit Losses - Securities At March 31, 2022, the balance of the allowance for credit loss on available for sale and held to maturity securities was $1.3 million and $199,000, respectively. At December 31, 2021, the Company reported an allowance for credit losses on available for sale securities of $83,000 and an allowance for credit losses on held to maturity securities of $181,000. For the first quarter of 2022, the Company recorded a provision for credit losses on available for sale securities of $1.2 million and a provision for credit losses on held to maturity securities of $18,000. For the first quarter of 2021, the Company recorded a provision for credit losses of $142,000 on securities available for sale and no provision for credit losses on held to maturity securities. Accrued interest receivable on securities is reported as a component of accrued interest receivable on the consolidated balance sheets and totaled $7.9 million at March 31, 2022 and $5.3 million and December 31, 2021. The Company made the election to exclude accrued interest receivable from the estimate of credit losses on securities. Allowance for Credit Losses - Off-Balance-Sheet Exposures The allowance for credit losses on off-balance sheet exposures is reported in other liabilities in the Consolidated Balance Sheets. The liability represents an estimate of expected credit losses arising from off balance sheet exposures such as letters of credit, guarantees and unfunded loan commitments. The process for measuring lifetime expected credit losses on these exposures is consistent with that for loans as discussed above, but is subject to an additional estimate reflecting the likelihood that funding will occur. No liability is recognized for off balance sheet credit exposures that are unconditionally cancellable by the Company. Adjustments to the liability are reported as a component of the provision for credit losses. At March 31, 2022 and December 31, 2021, the balance of the allowance for credit losses for off-balance sheet exposures was $2.8 million and $2.3 million, respectively. The Company recorded a provision for credit losses on off-balance-sheet exposures in other operating expense of $440,000 and $24,000 for the three months ended March 31, 2022 and 2021, respectively.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LeasesThe Company leases certain premises and equipment under operating leases. Portions of certain properties are subleased for terms extending through 2027. At March 31, 2022, the Company had lease liabilities totaling $28.7 million and right-of-use assets totaling $27.3 million related to these leases. At December 31, 2021, the Company had lease liabilities totaling $16.5 million and right-of-use assets totaling $15.2 million. As a result of the Company's acquisition of 1st Constitution, the Company obtained right-of use assets in exchange for new operating lease liabilities of $13.0 million. The calculated amount of the right-of-use assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of 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. The Company uses its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For the three months ended March 31, 2022, the weighted average remaining lease term for operating leases was 11.89 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.01%. At December 31, 2021, the weighted average remaining lease term for operating leases was 9.16 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.41%. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Lease costs were as follows:
The table below presents other information on the Company's operating leases for the three months ended March 31, 2022 and 2021:
There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the three months ended March 31, 2022 or March 31, 2021. At March 31, 2022, the Company had no leases that had not yet commenced. A maturity analysis of operating lease liabilities and a reconciliation of the undiscounted cash flows to the total operating lease liability at March 31, 2022 are as follows:
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Deposits |
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Deposit Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits The following table sets forth the details of total deposits:
At March 31, 2022 and December 31, 2021, certificates of deposit obtained through brokers totaled $96.3 million and $114.3 million, respectively. Brokered deposits are included in certificates of deposit $250,000 and under in the Consolidated Balance Sheets.
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Borrowings |
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Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Overnight and Short-Term Borrowings At March 31, 2022 and December 31, 2021, the Company had no overnight or short-term borrowings from the FHLB, as well as no overnight or short-term borrowings from correspondent banks. At March 31, 2022, Lakeland had overnight and short-term federal funds lines available to borrow up to $250.0 million from correspondent banks. Lakeland may also borrow from the discount window of the Federal Reserve Bank of New York based on the fair value of collateral pledged. Lakeland had no borrowings with the Federal Reserve Bank of New York as of March 31, 2022 or December 31, 2021. Other short-term borrowings at March 31, 2022 and December 31, 2021 consisted of short-term securities sold under agreements to repurchase of $102.9 million and $106.5 million, respectively. The securities sold under agreements to repurchase are overnight sweep arrangement accounts with our customers. As of March 31, 2022, the Company had $110.3 million in agency and mortgage-backed securities pledged for its securities sold under agreements to repurchase. At times, the fair values of securities collateralizing our securities sold under agreements to repurchase may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional collateral to meet that margin call. FHLB Advances The Company had one advance from the FHLB, which totaled $25.0 million at both March 31, 2022 and December 31, 2021, with a weighted average interest rate of 0.77% and maturity in 2025. The advance was collateralized by first mortgage loans and has prepayment penalties. Subordinated Debentures On January 6, 2022 the Company acquired $18.0 million of fixed to floating subordinated notes in connection with the 1st Constitution acquisition with a fair value of $14.7 million. The notes were dated June 15, 2006 and pay interest at a rate of LIBOR plus a spread of 165 basis points which resets quarterly until maturity on June 15, 2036 or earlier redemption.
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Share-Based Compensation |
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Share-Based Compensation | Share-Based CompensationThe Company's 2018 Omnibus Equity Incentive Plan (the "Plan") authorizes the granting of incentive stock options, supplemental stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), other stock-based awards and cash-based awards to officers, employees and non-employee directors of, and consultants and advisors to, the Company and its subsidiaries. Restricted Stock The following is a summary of the Company’s restricted stock activity during the three months ended March 31, 2022:
In the first three months of 2022, the Company granted 17,722 shares of restricted stock to non-employee directors at a grant date fair value of $19.74 per share under the Plan. The restricted stock vests one year from the date it was granted. Compensation expense on this restricted stock is expected to be $350,000 over a one year period. In the first three months of 2021, the Company granted 16,035 shares of restricted stock to non-employee directors at a grant date fair value of $13.72 per share. The restricted stock vested one year from the date it was granted with a compensation expense of $220,000 over such period. The Company recognized share-based compensation expense on its restricted stock of $87,000 and $88,000 for the first quarter of 2022 and 2021, respectively. As of March 31, 2022, there was unrecognized compensation cost of $262,000 related to unvested restricted stock that is expected to be recognized over a weighted average period of approximately 0.80 years. Restricted Stock Units The following is a summary of the Company’s RSU activity during the three months ended March 31, 2022:
In the first three months of 2022, the Company granted 298,554 RSUs under the Plan at a weighted average grant date fair value of $18.07 per share. These units vest within a range of to three years. A portion of these RSUs will vest subject to certain performance conditions in the applicable restricted stock unit agreement. There are also certain provisions in the compensation program which state that if a recipient of the RSUs reaches a certain age and years of service, the person has effectively earned a portion of the RSUs at that time. Compensation expense on these RSUs is expected to average approximately $1.8 million per year over a three-year period. In the first three months of 2021, the Company granted 258,154 RSUs under the Plan at a weighted average grant date fair value of $16.22 per share. Compensation expense on these RSUs is expected to average approximately $1.4 million per year over a three-year period. For the first quarter of 2022 and 2021, the Company recognized share-based compensation expense on RSUs of $1.4 million and $1.1 million, respectively. Unrecognized compensation expense related to RSUs was approximately $9.0 million as of March 31, 2022, and that cost is expected to be recognized over a period of 1.73 years. Stock Options At March 31, 2022 and December 31, 2021, there were no stock options outstanding under the Plan. There were no stock option grants in the first three months of 2022 or 2021. There were no stock options exercised during the first quarter of 2022 and the 1,757 stock options exercised during the first three months of 2021 resulted in $13,000 in cash receipts.
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Revenue Recognition |
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Revenue Recognition | Revenue Recognition The Company’s primary source of revenue is interest income generated from loans and investment securities. Interest income is recognized according to the terms of the financial instrument agreement over the life of the loan or investment security unless it is determined that the counterparty is unable to continue making interest payments. Interest income also includes prepaid interest fees from commercial customers, which approximates the interest foregone on the balance of the loan prepaid. The Company’s additional source of income, also referred to as noninterest income, is generated from deposit related fees, interchange fees, loan fees, merchant fees, loan sales, investment services and other miscellaneous income and is largely based on contracts with customers. In these cases, the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The Company considers a customer to be any party to which the Company will provide goods or services that are an output of the Company’s ordinary activities in exchange for consideration. There is little seasonality with regards to revenue from contracts with customers and all inter-company revenue is eliminated when the Company’s financial statements are consolidated. Generally, the Company enters into contracts with customers that are short-term in nature where the performance obligations are fulfilled and payment is processed at the same time. Such examples include revenue related to merchant fees, interchange fees and investment services income. In addition, revenue generated from existing customer relationships such as deposit accounts are also considered short-term in nature, because the relationship may be terminated at any time and payment is processed at the time performance obligations are fulfilled. As a result, the Company does not have contract assets, contract liabilities or related receivable accounts for contracts with customers. In cases where collectability is a concern, the Company does not record revenue. Generally, the pricing of transactions between the Company and each customer is either (i) established within a legally enforceable contract between the two parties, as is the case with loan sales, or (ii) disclosed to the customer at a specific point in time, as is the case when a deposit account is opened or before a new loan is underwritten. Fees are usually fixed at a specific amount or as a percentage of a transaction amount. No judgment or estimates by management are required to record revenue related to these transactions and pricing is clearly identified within these contracts. The Company primarily operates in one geographic region, Northern and Central New Jersey and contiguous areas. Therefore, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. We disaggregate our revenue from contracts with customers by contract-type and timing of revenue recognition, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Noninterest income not generated from customers during the Company’s ordinary activities primarily relates to income from bank owned life insurance, gains/losses on the sale of investment securities, gains/losses on the sale of other real estate owned, gains/losses on the sale of property, plant and equipment and mortgage servicing rights. The following table sets forth the components of noninterest income for the three months ended March 31, 2022 and 2021:
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Other Operating Expenses |
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Other Operating Expenses | Other Operating Expenses The following table presents the major components of other operating expenses for the periods indicated:
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Comprehensive Income |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income The components of other comprehensive income are as follows:
The following tables show the changes in the balances of each of the components of other comprehensive income (loss) for the periods presented, net of tax:
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives Lakeland is a party to interest rate derivatives that are not designated as hedging instruments. Lakeland executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Lakeland executes with a third-party financial institution, such that Lakeland minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. Lakeland had $48.5 million and $55.1 million in investment securities available for sale pledged for collateral on its interest rate swaps with financial institutions at March 31, 2022 and December 31, 2021, respectively. In June 2016, the Company entered into two cash flow hedges in order to hedge the variable cash outflows associated with its subordinated debentures. The notional value of these hedges was $30.0 million. The Company’s objectives in using cash flow hedges was to add stability to interest expense and to manage its exposure to interest rate movements. The Company used interest rate swaps designated as cash flow hedges which involved the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. In these particular hedges, the Company was paying a third party an average of 1.10% in exchange for a payment at 3 month LIBOR. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. On June 30, 2021, $20.0 million in notional value of the swaps matured and on August 1, 2021, the remaining $10.0 million matured. The Company reclassified $65,000 of accumulated other comprehensive loss into interest expense for the first quarter of 2021. Amounts reported in accumulated other comprehensive income related to derivatives were reclassified to interest expense as interest payments are made on the Company’s debt. The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands):
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company had goodwill of $271.8 million at March 31, 2022 and $156.3 million at December 31, 2021. The Company recorded $115.6 million in goodwill from the 1st Constitution merger in January 2022 as further described in Note 2 of the Notes to the Consolidated Financial Statements in this Quarterly Report on Form 10-Q. The Company reviews its goodwill and intangible assets annually, on November 30, or more frequently if conditions warrant, for impairment. In testing goodwill for impairment, the Company compares the estimated fair value of its reporting unit to its carrying amount, including goodwill. The Company has determined that it has one reporting unit. During the three months ended March 31, 2022, there were no triggering events that would more likely than not reduce the fair value of our one reporting unit below its carrying amount. There was no impairment of goodwill recognized during the three months ended March 31, 2022 and 2021. The Company had core deposit intangibles of $10.8 million and $2.4 million at March 31, 2022 and December 31, 2021, respectively. The Company recorded core deposit intangible of $9.0 million in connection with the 1st Constitution acquisition. Amortization of core deposit intangible totaled $596,000 and $226,000 for the first quarters of 2022 and 2021, respectively. The estimated future amortization expense for the remainder of 2022 and for each of the succeeding five years ended December 31 is as follows (in thousands):
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Fair Value Measurement and Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement and Fair Value of Financial Instruments | Fair Value Measurement and Fair Value of Financial Instruments Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest level priority to unobservable inputs (level 3 measurements). The following describes the three levels of fair value hierarchy: Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities; includes U.S. Treasury Notes, and other U.S. Government Agency securities that actively trade in over-the-counter markets; equity securities and mutual funds that actively trade in over-the-counter markets. Level 2 – quoted prices for similar assets or liabilities in active markets; or quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability including yield curves, volatilities and prepayment speeds. Level 3 – unobservable inputs for the asset or liability that reflect the Company’s own assumptions about assumptions that market participants would use in the pricing of the asset or liability and that are consequently not based on market activity but upon particular valuation techniques. The Company’s assets that are measured at fair value on a recurring basis are its investment securities available for sale, equity securities and its interest rate swaps. The Company obtains fair values on its securities using information from a third-party servicer. If quoted prices for securities are available in an active market, those securities are classified as Level 1 securities. The Company has U.S. Treasury Notes that are classified as Level 1 securities. Level 2 securities were primarily comprised of U.S. Agency bonds, residential mortgage-backed securities, obligations of state and political subdivisions and corporate securities. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, bids and offers. On a quarterly basis, the Company reviews the pricing information received from the Company’s third-party pricing service. This review includes a comparison to non-binding third-party quotes. The fair values of derivatives are based on valuation models from a third party using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counter party as of the measurement date (Level 2). Recurring Fair Value Measurements The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the three months ended March 31, 2022 and during 2021, the Company did not make any transfers between any levels within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
Non-Recurring Fair Value Measurements The Company has a held for sale loan portfolio that consists of residential mortgages that are being sold in the secondary market. The Company records these mortgages at the lower of cost or fair market value. Fair value is generally determined by the value of purchase commitments. Loans that do not have similar risk characteristics to the segments reported must be individually evaluated to determine an appropriate allowance. Management has identified criteria and procedures for identifying whether a loan should be individually evaluated for calculation of expected credit losses. If a loan is identified as meeting any of the criteria, it is deemed to have risk characteristics that are unique and will be separated from a pool. Those loans that are considered to have unique risk characteristics are then subjected to an individual allowance evaluation using either the fair value of the collateral, less estimated costs to sell, if collateral-dependent or the discounted cash flow method. Other real estate owned (OREO) and other repossessed assets, representing property acquired through foreclosure or deed in lieu of foreclosure, are carried at fair value less estimated disposal costs of the acquired property. Fair value on other real estate owned is based on the appraised value of the collateral using discount rates or capitalization rates similar to those used in impaired loan valuation. The fair value of other repossessed assets is estimated by inquiry through a recognized valuation resource. At March 31, 2022 and December 31, 2021, the Company had no OREO or other repossessed assets. Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. Changes in economic conditions, locally or nationally, could impact the value of the estimated amounts of individually evaluated loans, OREO and other repossessed assets. The following table summarized the Company’s financial assets that are measured at fair value on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
Fair Value of Certain Financial Instruments Estimated fair values have been determined by the Company using the best available data and an estimation methodology suitable for each category of financial instruments. Management is concerned that there may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values. The estimation methodologies used, the estimated fair values and recorded book balances at March 31, 2022 and December 31, 2021, are outlined below. This summary, as well as the table below, excludes financial assets and liabilities for which carrying value approximates fair value. For financial assets, these include cash and cash equivalents. For financial liabilities, these include noninterest-bearing demand deposits, savings and interest-bearing transaction accounts and federal funds purchased and securities sold under agreements to repurchase. The estimated fair value of demand, savings and interest-bearing transaction accounts is the amount payable on demand at the reporting date. Carrying value is used because there is no stated maturity on these accounts, and the customer has the ability to withdraw the funds immediately. Also excluded from this summary and the following table are those financial instruments recorded at fair value on a recurring basis, as previously described. The fair value of investment securities held to maturity is measured using information from the same third-party servicer used for investment securities available for sale using the same methodologies discussed above. FHLB stock is an equity interest that can be sold to the issuing FHLB, to other FHLBs, or to other member banks at its par value. Because ownership of these securities is restricted, they do not have a readily determinable fair value. As such, the Company’s FHLB stock is recorded at cost or par value and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company’s evaluation primarily includes an evaluation of liquidity, capitalization, operating performance, commitments, and regulatory or legislative events. The net loan portfolio has been valued using an exit price approach, which incorporates a buildup discount rate calculation that uses a swap rate adjusted for credit risk, servicing costs, a liquidity premium and a prepayment premium. For fixed maturity certificates of deposit, fair value is estimated based on the present value of discounted cash flows using the rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value. The fair value of long-term debt is based upon the discounted value of contractual cash flows. The Company estimates the discount rate using the rates currently offered for similar borrowing arrangements. The fair value of subordinated debentures is based on bid/ask prices from brokers for similar types of instruments. The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to extend credit and standby letters of credit are deemed immaterial. The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments not carried at fair value as of March 31, 2022 and December 31, 2021:
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Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation This quarterly report presents the consolidated financial statements of Lakeland Bancorp, Inc. and its subsidiaries, including Lakeland Bank (“Lakeland”) and Lakeland’s wholly owned subsidiaries (collectively, the “Company”). The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles (“U.S. GAAP”) and predominant practices within the banking industry. The Company’s unaudited interim financial statements reflect all adjustments, such as normal recurring accruals that are in the opinion of management, necessary for the fair presentation of the results of the interim periods. The results of operations for the three months ended March 31, 2022 do not necessarily indicate the results that the Company will achieve for all of 2022. Certain information and footnote disclosures required under U.S. GAAP have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission. These unaudited interim financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.
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Acquisitions (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the acquired assets and liabilities assumed at the date of acquisition for 1st Constitution.
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Financing Receivable, Amortized Cost Basis Adjustments | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired (in thousands):
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Business Acquisition, Pro Forma Information |
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings Per Share | The following schedule shows the Company’s earnings per share calculations for the periods presented:
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Investment Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Available-for-Sale Securities | The amortized cost, gross unrealized gains and losses, allowance for credit losses and the fair value of the Company's available for sale securities are as follows:
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Reconciliation of Held-to-Maturity Securities | The amortized cost, gross unrealized gains and losses, allowance for credit losses and the fair value of the Company's held to maturity investment securities are as follows:
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Summary of Investment Securities by Stated Maturity | The following table lists contractual maturities of investment securities classified as available for sale and held to maturity as of March 31, 2022. Mortgage-backed and asset-backed securities are not shown by maturity because expected maturities may differ from contractual maturities due to underlying loan prepayments of the issuer. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Reconciliation of Available-for-Sale and Held-to-Maturity Securities in Continuous Unrealized Loss Position | The following tables indicate the length of time individual securities have been in a continuous unrealized loss position for the periods presented:
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Debt Securities, Held-to-maturity, Credit Quality Indicator | The tables below indicate the credit profile of the Company's held to maturity investment securities at amortized cost:
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Loans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Receivable | The following sets forth the composition of the Company’s loan portfolio:
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Credit Quality Indicators | The following table presents the risk category of loans by class of loan and vintage as of March 31, 2022.
The following table presents the risk category of loans by class of loan and vintage as of December 31, 2021.
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Age Analysis of Past Due Loans, Segregated by Class of Loans | The following tables present the payment status of the recorded investment in past due loans as of the periods noted, by class of loans.
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Company's Non-Performing Assets and its Accruing Troubled Debt Restructurings, Excluding PCI Loans | The following tables present information on non-accrual loans at March 31, 2022 and December 31, 2021:
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Financing Receivable, Purchased With Credit Deterioration | The following is a summary of the PCD loans acquired in the 1st Constitution acquisition as of the closing date.
The following summarizes the PCD loans acquired in the 1st Constitution acquisition as of the closing date, January 6, 2022.
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Allowance for Credit Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses by Portfolio Segment | The allowance for credit losses on loans is summarized in the following table:
The following tables detail activity in the allowance for credit losses on loans by portfolio segment for the three months ended March 31, 2022 and 2021:
The following tables present the recorded investment in loans by portfolio segment and the related allowance for credit losses at March 31, 2022 and December 31, 2021:
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | Lease costs were as follows:
The table below presents other information on the Company's operating leases for the three months ended March 31, 2022 and 2021:
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Maturity analysis of operating lease liabilities | A maturity analysis of operating lease liabilities and a reconciliation of the undiscounted cash flows to the total operating lease liability at March 31, 2022 are as follows:
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Deposits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposit Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Deposits | The following table sets forth the details of total deposits:
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Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's Restricted Stock Activity | The following is a summary of the Company’s restricted stock activity during the three months ended March 31, 2022:
The following is a summary of the Company’s RSU activity during the three months ended March 31, 2022:
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Revenue Recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table sets forth the components of noninterest income for the three months ended March 31, 2022 and 2021:
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Other Operating Expenses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Major Components of Other Operating Expenses | The following table presents the major components of other operating expenses for the periods indicated:
|
Comprehensive Income (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Components of Other Comprehensive Income, Net of Tax | The components of other comprehensive income are as follows:
The following tables show the changes in the balances of each of the components of other comprehensive income (loss) for the periods presented, net of tax:
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Derivatives (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Information Regarding Derivatives | The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands):
|
Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Future Amortization Expense | The estimated future amortization expense for the remainder of 2022 and for each of the succeeding five years ended December 31 is as follows (in thousands):
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Fair Value Measurement and Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the three months ended March 31, 2022 and during 2021, the Company did not make any transfers between any levels within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
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Fair Value of Assets Measured on Non-recurring Basis | The following table summarized the Company’s financial assets that are measured at fair value on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
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Carrying Values and Fair Values of Company's Financial Instruments | The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments not carried at fair value as of March 31, 2022 and December 31, 2021:
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Acquisitions - Adjustments to Amortized Cost Basis (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 06, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Business Acquisition [Line Items] | |||
Gross amortized cost basis | $ 140,300 | ||
Allowance for credit losses on PCD loans | (12,077) | $ (12,077) | $ 0 |
1st Constitution Bancorp | |||
Business Acquisition [Line Items] | |||
Gross amortized cost basis | 1,110,600 | ||
Interest rate fair value adjustment on all loans | 3,057 | ||
Credit fair value adjustment on non-PCD loans | (6,314) | ||
Fair value of acquired loans at January 6, 2022 | 1,107,343 | ||
Allowance for credit losses on PCD loans | (12,077) | ||
Fair value of acquired loans, net, as of January 6 2022 | 1,095,266 | ||
1st Constitution Bancorp | Financial Asset Acquired with Credit Deterioration | |||
Business Acquisition [Line Items] | |||
Gross amortized cost basis | 140,300 | ||
Allowance for credit losses on PCD loans | $ (12,077) |
Acquisitions - Summary of PCD Loans Acquired (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 06, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Business Acquisition [Line Items] | |||
Gross amortized cost basis | $ 140,300 | ||
Interest component of expected cash flows (accretable difference) | (3,792) | ||
Allowance for credit losses on PCD loans | (12,077) | $ (12,077) | $ 0 |
Net PCD loans | 124,431 | ||
1st Constitution Bancorp | |||
Business Acquisition [Line Items] | |||
Gross amortized cost basis | 1,110,600 | ||
Allowance for credit losses on PCD loans | (12,077) | ||
Net PCD loans | $ 112,900 | ||
1st Constitution Bancorp | Financial Asset Acquired with Credit Deterioration | |||
Business Acquisition [Line Items] | |||
Gross amortized cost basis | 140,300 | ||
Interest component of expected cash flows (accretable difference) | (3,792) | ||
Allowance for credit losses on PCD loans | (12,077) | ||
Net PCD loans | $ 124,431 |
Acquisitions - Supplemental Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
1st Constitution Actual from acquisition to March 31, 2022 | ||||
Net interest income | $ 11,406 | |||
Provision (benefit) for credit losses | 37 | |||
Noninterest income | 2,108 | |||
Noninterest expense | 7,730 | |||
Net income | $ 4,352 | |||
Net interest income | 72,794 | $ 71,689 | ||
Provision (benefit) for credit losses | 6,272 | (1,242) | ||
Noninterest income | 6,478 | 9,837 | ||
Noninterest expense | 48,407 | 45,306 | ||
Net income | $ 18,713 | $ 27,671 | ||
Fully diluted (in usd per share) | $ 0.07 | $ 0.29 | $ 0.43 |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 15,929 | $ 23,175 |
Less: earnings allocated to participating securities | 164 | 216 |
Net income allocated to common shareholders | $ 15,765 | $ 22,959 |
Weighted average number of common shares outstanding - basic (in shares) | 63,961 | 50,576 |
Share-based plans (in shares) | 277 | 204 |
Weighted average number of common shares outstanding - diluted (in shares) | 64,238 | 50,780 |
Basic earnings per share (in usd per share) | $ 0.25 | $ 0.45 |
Diluted earnings per share (in usd per share) | $ 0.25 | $ 0.45 |
Earnings Per Share - Additional Information (Detail) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Options to purchase (in shares) | 0 | 0 |
Loans - Purchase Credit Deteriorated Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 06, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Receivables [Abstract] | |||
Gross amortized cost basis | $ 140,300 | ||
Interest component of expected cash flows (accretable difference) | 3,792 | ||
Allowance for credit losses on PCD loans | (12,077) | $ (12,077) | $ 0 |
Net PCD loans | $ 124,431 |
Allowance for Credit Losses - Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 06, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of the period | $ 58,047 | $ 71,124 | |
Initial allowance for credit losses on PCD loans | $ 12,077 | 12,077 | 0 |
Charge-offs | (7,804) | (1,270) | |
Recoveries | 162 | 206 | |
Net charge-offs | (7,642) | (1,064) | |
Provision (benefit) for credit loss - loans | 4,630 | (2,808) | |
Balance at end of the period | 67,112 | 67,252 | |
Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (7,634) | 0 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | $ (170) | $ (1,270) |
Leases - Additional Information (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Jan. 06, 2022 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | ||||
Operating lease liabilities | $ 28,694,000 | $ 16,523,000 | ||
Operating lease right-of-use assets | 27,281,000 | $ 15,222,000 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 89,000 | $ 109,000 | ||
Operating lease, weighted average remaining lease term | 11 years 10 months 20 days | 9 years 1 month 28 days | ||
Lessee, operating lease, discount rate | 3.01% | 3.41% | ||
Operating lease, lease not yet commenced | $ 0 | |||
1st Constitution Bancorp | ||||
Business Acquisition [Line Items] | ||||
Operating lease liabilities | $ 13,000,000 | |||
Operating lease right-of-use assets | $ 13,000,000 | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 13,000,000 |
Leases - Schedule of Lease, Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Leases [Abstract] | ||
Operating lease cost | $ 1,226 | $ 829 |
Short-term lease cost | 10 | 0 |
Variable lease cost | 17 | 22 |
Sublease income | (30) | (31) |
Net lease cost | $ 1,223 | $ 820 |
Leases - Other Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 930 | $ 719 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 89 | $ 109 |
Leases - Maturity analysis of operating lease liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
Within one year | $ 3,721 | |
After one year but within three years | 8,865 | |
After three years but within five years | 6,236 | |
After five years | 16,191 | |
Total undiscounted cash flows | 35,013 | |
Discount on cash flows | (6,319) | |
Operating lease liabilities | $ 28,694 | $ 16,523 |
Deposits - Summary of Deposit Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Interest and Noninterest Bearing Domestic Deposit Liabilities To Deposit Liabilities [Abstract] | ||
Noninterest-bearing demand | $ 2,300,030 | $ 1,732,452 |
Interest-bearing checking | 2,743,522 | 2,219,658 |
Money market | 1,696,553 | 1,577,385 |
Savings | 1,162,599 | 677,101 |
Certificates of deposit $250 thousand and under | 696,518 | 623,393 |
Certificates of deposit over $250 thousand | 149,687 | 135,834 |
Deposits | $ 8,748,909 | $ 6,965,823 |
Percentage Of Interest and Noninterest Bearing Domestic Deposit Liabilities To Deposit Liabilities [Abstract] | ||
Noninterest-bearing demand | 26.30% | 24.90% |
Interest-bearing checking | 31.40% | 31.90% |
Money market | 19.40% | 22.60% |
Savings | 13.20% | 9.70% |
Certificates of deposit $250 thousand and under | 8.00% | 8.90% |
Certificates of deposit over $250 thousand | 1.70% | 2.00% |
Total deposits | 100.00% | 100.00% |
Deposits - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Deposit Liabilities [Abstract] | ||
Deposits obtained through brokers | $ 96.3 | $ 114.3 |
Revenue Recognition - Additional Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
region
segment
| |
Revenue from Contract with Customer [Abstract] | |
Number of geographic regions | region | 1 |
Number of operating segments | segment | 1 |
Other Operating Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Other Income and Expenses [Abstract] | ||
Consulting and advisory board fees | $ 1,054 | $ 523 |
ATM and debit card expense | 657 | 604 |
Telecommunications expense | 582 | 522 |
Marketing expense | 397 | 318 |
Amortization of intangible assets | 596 | 226 |
Other operating expenses | 4,095 | 2,908 |
Other expenses | $ 7,381 | $ 5,101 |
Derivatives - Additional Information (Detail) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2022
USD ($)
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
Aug. 01, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2016
USD ($)
derivative
|
|
Derivative [Line Items] | ||||||
Interest expense | $ 5,614 | $ 6,680 | ||||
Interest rate swap (cash flow hedge) | ||||||
Derivative [Line Items] | ||||||
Debt securities, pledged as collateral, available-for-sale, restricted | $ 48,500 | $ 55,100 | ||||
Interest rate swap (cash flow hedge) | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Number of derivatives | derivative | 2 | |||||
Notional amount | $ 30,000 | |||||
Average interest rate | 1.10% | |||||
Derivative liability, amount matured | $ 10,000 | $ 20,000 | ||||
Interest rate swap (cash flow hedge) | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Derivative [Line Items] | ||||||
Interest expense | $ 65 |
Derivatives - Summary Information Regarding Derivatives (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
3rd Party interest rate swaps | ||
Classified in Other Assets: | ||
Notional Amount | $ 718,287 | $ 326,941 |
Average Maturity (Years) | 7 years 7 months 6 days | 7 years 8 months 12 days |
Weighted Average Fixed Rate | 3.39% | 3.14% |
Weighted Average Variable Rate | 206.00% | 232.00% |
Fair Value | $ 38,550 | $ 9,847 |
Classified in Other Liabilities: | ||
Notional Amount | $ 200,010 | $ 607,688 |
Average Maturity (Years) | 8 years 7 months 6 days | 8 years 2 months 12 days |
Weighted Average Fixed Rate | 4.72% | 3.97% |
Weighted Average Variable Rate | 189.00% | 187.00% |
Fair Value | $ (8,923) | $ (33,952) |
Customer interest rate swaps | ||
Classified in Other Assets: | ||
Notional Amount | $ 200,010 | $ 607,688 |
Average Maturity (Years) | 8 years 7 months 6 days | 8 years 2 months 12 days |
Weighted Average Fixed Rate | 4.72% | 3.97% |
Weighted Average Variable Rate | 189.00% | 187.00% |
Fair Value | $ 8,923 | $ 33,952 |
Classified in Other Liabilities: | ||
Notional Amount | $ 718,287 | $ 326,941 |
Average Maturity (Years) | 7 years 7 months 6 days | 7 years 8 months 12 days |
Weighted Average Fixed Rate | 3.39% | 3.14% |
Weighted Average Variable Rate | 206.00% | 232.00% |
Fair Value | $ (38,550) | $ (9,847) |
Goodwill and Other Intangible Assets - Additional Information (Detail) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2022
USD ($)
reportingUnit
|
Mar. 31, 2021
USD ($)
|
Jan. 06, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 271,829,000 | $ 156,277,000 | ||
Number of reporting units | reportingUnit | 1 | |||
Goodwill, impairment loss | $ 0 | $ 0 | ||
Amortization of intangible assets | 596,000 | 226,000 | ||
1st Constitution Bancorp | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 115,552,000 | |||
Core Deposits | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 10,800,000 | $ 2,400,000 | ||
Amortization of intangible assets | $ 596,000 | $ 226,000 | ||
Core Deposits | 1st Constitution Bancorp | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 9,000,000 |
Goodwill and Other Intangible Assets - Schedule of Estimated Future Amortization Expense (Detail) - Core Deposits $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 1,754 |
2023 | 2,029 |
2024 | 1,737 |
2025 | 1,465 |
2026 | 1,193 |
2027 | $ 955 |
Fair Value Measurement and Fair Value of Financial Instruments - Fair Value of Assets Measured on Non-recurring Basis (Detail) - Fair Value, Measurements, Non-recurring - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets: | ||
Individually evaluated loans | $ 6,539 | $ 7,113 |
(Level 1) | ||
Assets: | ||
Individually evaluated loans | 0 | 0 |
(Level 2) | ||
Assets: | ||
Individually evaluated loans | 0 | 0 |
(Level 3) | ||
Assets: | ||
Individually evaluated loans | $ 6,539 | $ 7,113 |
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